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© 2009 IBM Corporation
Julie KINGJulie KING
IBM Software StrategyIBM Software Strategy
IBM Vice President & Distinguished Engineer
Agenda
� Quick overview of the key brand capabilitiesLotusInformation ManagementWebSphereTivoli Rational
� Putting it all together to address our clients' needs Industry Solutions Cloud ComputingSmarter Planet
� Q&A
Software Strategy & 2015 Roadmap
Information
Management
InformationInformation
ManagementManagementBusiness
Applications
BusinessBusiness
ApplicationsApplications
Universal AccessUniversal AccessUniversal Access
Open Standards ArchitectureOpen Standards ArchitectureOpen Standards Architecture
Messaging Communicating Connecting Integrating
Knowledge WorkerKnowledge Worker Informational Worker Informational Worker External PartnersExternal Partners
Lotus Notes Lotus Domino
Lotus SametimeLotus Sametime Unyte
Lotus QuickrLotus Connections
Lotus MashupsWebSphere Portal
Working Smarter & Dynamically Adaptive Collaboration
4
Connecting & Empowering People (Connect and Collaborate)
E-mail & Collaborative Applications
1995
Real-time Collaboration
Databeam1998 1998 2007
Social Media
Lotus Connections2007
New Delivery Models
2008 2009
Web Content Management
2003 2005 2005
Lotus SameTime
SameTime Unyte
WebSphere Portal
Lotus Web Content Management
Lotus Notes
LotusLiveLotus Foundations
LotusLive!
LotusLive MeetingsA full-featured, easy to use Web
conferencing service
LotusLive EventsProvides tools to create, manage
and conduct webinars for up to 999
attendees
LotusLive ConnectionsCombines your business
network with collaboration
services
LotusLive Notes IBM's flagship Lotus Notes
email, calendar, contact
management and instant
messaging
LotusLive EngageAn integrated suite of tools that
combines your business network
with collaboration and
conferencing services
Web ConferencingWeb Conferencing CollaborationCollaboration ee--MailMail
LotusLive iNotesWeb-based e-mail, personal
calendar and contact management
Mastering Information to Optimize Business ResultsA Flexible Platform for Managing, Integrating, Analyzing and Governing Information
Analyze
Integrate
Manage
Business Analytic Applications
External Information Sources
Cubes
Streams
Extreme Data
Master Data
Content
Data
StreamingInformation
Data Warehouses
GovernQuality
Security & Privacy
Lifecycle
Transactional& CollaborativeApplications
7
BIG DATA – Internet ScaleMoving Beyond the Traditional Warehouse
Streams
InternetScale
TraditionalWarehouse
In-Motion Analytics
Data Analytics, Data Operations & Model
Building
Results
Internet Scale
Database &Warehouse
At-Rest Data Analytics
Results
Ultra Low Latency Results
InfoSphereBigInsights
Traditional / Relational Data Sources
Non-Traditional / Non-Relational Data
Sources
Non-Traditional/Non-RelationalData Sources
Traditional/Relational Data Sources
IT Professionals Need Agility and Efficiency
• Efficiently manage hundreds of applications
• Safely manage terabytes of data
• Consolidate and simplify infrastructure to reduce costs
• Deliver new custom or COTS vertical applications
• Improve service levels of existing applications
• Stability simplifies efficient operations
Source: Surveys from IBM 's SOA Executive Summary
Business professionals have the business process expertise
Business Professional
IT professionals know how to implement and run applications
IT Professional
Business Professionals Need Agility and Efficiency
• Rapid innovation without replacing applications
• Control of the business model and business processes
• Integration of horizontal processes
• Visibility into technology-enabled business activities
• Flexible integration of people, processes, and information
IBM has evolved its strengths in IT software, targeted at the CIO, to maximize the combined value for IT and business professionals
8
9
Increasing Business Agility
Transaction
Processing
Web Portal
Web Application
Infrastructure
Business Process
Optimization
Connectivity
2005
2002 2005
2010 2010
2002 2008 2008
2010 2010
2010
CICS MQ
WS Message BrokerWS ESBWS Datapower
WS Partner GatewayWS Adapters
WS Process ServerWS Modeler/MonitorWS Business EventsWS Ilog BRMS
2010
Commerce
20051998
WS Application ServerWS Extreme ScaleWS Cloudburst
WS Portal
WebSphere Commerce
Smarter Products& Services
Aerospace and Defense
Automotive
Software is the key to differentiation in the new economy
Electronics
• Differentiated products based on consumer-driven innovation
• Leveraged customer insights in product development
• Increased throughput capacity• Improved portfolio profitability• Innovation within the enterprise as well as with partners and alliances
• Faster time to market and reduced manufacturing cycle time
• More efficient, lower cost, flexible designs
• Improved program management cost, schedule and quality
• Increased customer satisfaction and loyalty
• Total manufacturing cost reduction• Reduced warranty costs• Increased customer loyalty through higher product quality• Improved asset utilization• Flexibility to build various products on demand
• Enhanced plant lifecycle value with integrated information from plant design and construction
• Improved utility energy efficiency through near real-time visibility of consumer energy usage
• Improved efficiency and operational performance
Energy and Utilities
Software must be approached as a mission-critical
business process
Transforming Software & Systems Delivery Into An Outcome-Driven Business Process
Using Rational Team Concert To Improve Productivity
� Integrated RTC Build Services� Consolidates development platforms� Provides centralized source data management� Expanded Build metadata for comprehensive view
Use Rational Team Concert To Manage Projects
RTC Dashboards
� Provide real-time consolidated views of project progress for quick, easy consumption
� Tracked to individual RTC Users or Developers
� Multiple views with drill down capability to individual work items
�AAB orchestrated a shared fundingmodel for iRAM
amongst the shareholders to
fund the deployment
IBM's use of Rational Asset Manager:
Promoting One Common Asset Repository for Reusable Assets
4Q07• Identified team in
India for iRAM pilot
• AAB SC funded
Common Taxonomy And Metadata Standards
3Q07 & earlier� AAB Library design
� SOAR pilots
2Q08• 9 teams in production
• Over 3000 assets
iRAM becomesAn EnterpriseApplication
Fully hosted by ourCIO Team
Legacy Asset Transformation
workgroupenabled teams to go Into production
IRAM fully integratedIn the daily operations
4Q08• 68 communities
• Over 26,000 assets
• Over 1800 downloads/week
• Over 23,000 searches/week
4Q09• 109 communities• Over 55,000 assets• Downloads: over 4,300 /wk• Searches: over 40,000 /wk
4Q10• 137 communities• Over 72,000 assets• Downloads: over 7,000 /wk• Searches: over 29,000 /wk
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Driving Operations Effectiveness and Efficiency
Mainframe
Systems
Management
Network Service
Management
2005
2006
2010
Storage Service
Management
SANergy
20021999 2008
Asset Management
2006Distributed Systems
Management
1996
2005
2003 2004
20062005
Security Service
Management2002
2006
2006
Dascom1999
2010
Tivoli MonitoringTivoli Workload SchedulerTivoli Composite Application ManagerIBM Cloudburst
Tivoli Storage ManagerTivoli Storage Productivity CenterSAN Volume Controller
Tivoli Asset Management
Tivoli NetViewTivoli Netcool
Tivoli Access ManagerTivoli Identity Manager
IBM zSecureOmegamon
2004
2008
Agenda
� Quick overview of the key brand capabilitiesLotusInformation ManagementWebSphereTivoli Rational
� Putting it all together to address our clients' needs Dynamic Infrastructure and Cloud ComputingIndustry Solutions Smarter Planet
� Q&A
Software Strategy & 2015 Roadmap
IT Transformation Roadmap → More dynamic infrastructure
Simplified
Shared
Dynamic
Consolidate
Virtualize
Automate
� Reduce infrastructure complexity
� Reduce staffing requirements
� Improve business resilience (manage fewer things better)
� Improve operational costs/reduce TCO
� Remove physical resource boundaries
� Increased hardware utilization
� Allocate less than physical boundary
� Reduce hardware costs
� Simplify deployments
� Standardized Services
� Dramatically reduce deployment cycles
� Granular service metering and billing
� Massively scalable
� Autonomic
� Flexible delivery enables new processes and services
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Reducing infrastructure and labor costs through technology:the cloud economics
Virtualization of Hardware
Standardization of Workloads
Utilization of Infrastructure
Automation of Management
Virtualized environments only get benefits of scale if they
are highly utilized
Drives lower capital requirements
Fewer options = more automation possible = fewer
manual tasks
Take repeatable tasks and automate
Labor Leverage
Infrastructure Leverage
IBM Confidential19
Cloud Computing
Banking
Retail
IT
�Self-Service
�Economies of Scale
�Technology Advancement
A user experience and a business model
� Standardized offerings
� Rapidly provisioned
� Flexibly priced
An infrastructure management and services delivery method
� Virtualized resources
� Managed as a single large resource
� Delivering services with elastic scaling
Similar to Banking ATMs and Retail Point of Sale, Cloud is Driven by:
Enterprise
Today there are three primary delivery models that companies areimplementing for cloud
Public Cloud
IT activities/functions are provided “as a service,” over the Internet
� Key features:– Scalability
– Automatic/rapid provisioning
– Standardized offerings
– Consumption-based pricing.
– Multi-tenancy
Traditional Enterprise IT
Private Cloud
IT activities/functions are provided “as a service,” over an intranet, within the enterprise and behind the firewall
� Key features include:– Scalability
– Automatic/rapid provisioning
– Chargeback ability
– Widespread virtualization
Hybrid Cloud
Internal and external service delivery methods
are integrated, with activities/functions
allocated to based on security requirements,
criticality, architecture and other established policies.
Private CloudPublic Clouds
Hybrid Cloud
Source: IBM Market Insights, Cloud Computing Research, July 2009.
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Image Management is Core to Managing a Virtualized Data Center & Clouds
Images Require Management - The New IT Challenge
� (Image Sprawl & Governance) Proliferation of virtual images in customer environments (just copy a file). Customer need a way or organizing, securing, managing deploying these images to the various virtualized platforms in a scalable manner.
� Customers need a way of managing the virtual images once they are deployed. This includes monitoring, updating, tracking changes, auditing etc.
� Dormant images need maintenance too. (E.g. security patches)
� Customers need to manage the virtual images created by them in addition to any vendor bought images.
� Customers needs to integrate their images that are deployed with their processes and management tools.
� Images fast becoming the core object for deployment in datacenters– bypasses installation problems, provides faster time to value, better availability, disaster recovery.
� Easy way to boot, store, distribute, copy software- OS & Applications
� Installation is as simple as a copy operation. (Configuration still needed)
� Fundamental mechanism for deploying cloud services (e.g. Amazon)
� Companies beginning to ship images to solve installation problems.
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25 billionNumber of global trading systems that are under extreme stress, handling billions of marketplace data messages each day
40% to 70%Loss of electrical energy around the world because of inefficiency
1 trillionNumber of devices that will be connected to the Internet by 2011
US$4 trillionAverage daily volume in the world’s currency marketplaces
Need for Smarter PlanetAcross the globe we must confront a
crushing set of challenges 78%Percentage of CIOs who want to improve the way they use and manage their data
80%Percentage of digital data growth that is predicted to be unstructured and require significant effort to understand and analyze
10xAmount that digital data is projected to grow by 2011
By 2011, the world will be 10 times more instrumented then it was in 2006. Internet connected devices will leap from 500M to 1 Trillion.
2005 2006 2007 2008 2009 2010 2011
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Exabytes RFID,
Digital TV,
MP3 players,Digital cameras,
Camera phones, VoIP,
Medical imaging, Laptops,
smart meters, multi-player games,
Satellite images, GPS, ATMs, Scanners,Sensors, Digital radio, DLP theaters, Telematics ,
Peer -to-peer, Email, Instant messaging, Videoconferencing,
CAD/CAM, Toys, Industrial machines, Security systems, Appliances
10xgrowth infive years
Approximately 70% of the digital universe is created by individuals, but enterprises are responsible for 85% of the security, privacy, reliability, and compliance.
By 2010, 30 billion RFID tags will be embedded
into our world
An estimated 2 billion people will be on the Web by 2011... and a
trillion connected objects
Every day, 15 petabytesof new information are
being generated
Our world is becomingInstrumented
Our world is becomingInterconnected
All things becomingIntelligent
We can address those challenges by building a Smarter Planet
Leveraging the convergence of the physical and digital worlds
Indeed, almost anything – any person, any object, any process or any service, for any organization, large or small – can become digitally
aware and networked
Managing the World’s Infrastructure
Facilities Production
Equipment
Transportation
Assets
IT Hardware
& SoftwareTelco
Managing more complex assets through the entire lifecycle presents
new challenges and creates new opportunity.
Infrastructure consists of both IT and operating assets, but they are becoming less differentiated
• Operating assets are becoming more co-mingled with, and dependent, on IT assets
• Companies are making more use of IT in running and maintaining assets
What’s intelligent about infrastructure?
Centerpoint uses Smart Meters to reduce power consumption
through demand response.
A bridge has built-in sensors to monitor stress and indicate
potential failure.
Locomotives built by Bombardier have on-board computer systems
using telematics for real-time diagnostics.
A datacenter reduces energy consumption and optimizes service delivery
by collecting power, thermal and temperature inputs from IT equipment,
datacenter infrastructure and facilities.
Smart buildings use building automation systems to optimize
comfort, safety and energy consumption.
Stockholm lowers traffic by 20%,emissions by 40%
IBM is working with clients today on Smarter Planet initiatives
450+ Smarter Planet References
Smarter Healthcare
Metropolitan Transportation
Cardinal Health reduces diversion of controlled substances from the U.S. supply chain
Public Safety
NYPD Real Time Crime Center provides access to 120M+ criminal complaints, arrests and 911 records
Government Services
Alameda County improves delivery of social services while saving $24.7M annually
What Does It Mean to Be Smarter?
Leading businesses today are benefiting from new sensor data when combined with IBM’s business process management, event processing and business optimization
capabilities
� Data collection
� Data Integration
� Comparison of historical data, with newly collected data
� Data modeling and analytics to create insights from data to feed decision support and actions
Sensors and Metering
Event Processing + Real Time Data Integration
Real Time + Historical Data
Data Modeling & Analytics
Visualization & Collaborative Decision Making
New and Optimized Business Processes
New Insights
New Data
Process
Innovation
Industry Solutions
Software Solutions
So
ftw
are
an
d S
yst
em
s
BusinessAnalytics
CollaborationEnterprise
Content Management
IBM Industry Products
Commerce
Smarter Commerce
Software Middleware
Systems Technology
Portal
Our Mission To define and develop a new category of solutions software, leveraging IBM’s Middleware portfolio, to deliver an industry-oriented value proposition to line-of-business users
IBM Software Solutions Group
Selling & Fulfillment
Enterprise Market
Management
CLARITY SYSTEMS
IBM Software Technology
IBM Software Industry Solutions
Repeated patterns are integrated
into new products
IBM Software is evolving our delivery model to provide bigger puzzle pieces for client solutions with emphasis on line of business value
Consumable, Repeatable, ScalableOfferings with increased Asset Content
…are unique, integrated Products, addressing industry use cases andsolving specific customer problems
…delivered through Industry Frameworks for go-to-market context
…built on a common Platform of core IBM Software products for efficient delivery and reuse across industries
...leverage both organic and inorganicinvestments
...use client value delivery models, including cloud offerings
Travel and Transportation Increase revenue per seat or hotel room through reservation system modernization
Insurance Increased insurance underwriter productivity
Banking Renovate lending, mortgage, deposit and other core processing systems
Financial Markets Integrate support for front-, middle-, and back-office processes
Retail Increase accuracy of promotions by targeting offers to the right customers
Energy and Utilities Accelerate deployment of smart grids
Government Avoid social service overpayments through a single view of the citizen
Network Centric Operations Enables all service branches to share common applications
Service Provider Delivery Environment
Integrate new services with fulfillment, assurance, billing and care systems
Media Enterprise Improve management and distribution of digital assets
Health Integration Track assets, patients and staff to improve quality of care, and operations
Integrated Information Reduce exploration risk and cost – faster time-to-oil
Product and Service Reduce inventory, improve availability and delivery capacity
Industry frameworks deliver technology in an industry context,driving smarter outcomes
Leveraging capabilities from across IBM to build solutions
Industry specific challenges,market drivers, shifts and trends
(IBM Institute for Business Value, GBS, S&D)
Industry Solutions
Strategic Business Drivers
Industry Frameworks
Industry and subject matter expertiseApplications and tools
(GBS, GTS, IBM Research)
Servers, storage, communication networks and associated services
Solution platform specifically configured with IBM software, industry assets and best practices to address an industries unique
challenges(SWG, IBM Research)
Workload optimized systems(STG, GTS, IBM Research)
Agenda
� Quick overview of the key brand capabilitiesLotusInformation ManagementWebSphereTivoli Rational
� Putting it all together to address our clients' needs Industry Solutions Cloud ComputingSmarter Planet
� Q&A
Software Strategy & 2015 Roadmap