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www.ibm.com/investor IBM Cloud: Platform-as-a-Service September 17 th , 2014
www.ibm.com/investor
IBM Cloud: Platform-as-a-Service September 17th, 2014
© 2014 IBM Corporation
Forward Looking Statements and Non-GAAP Information
Certain comments made in this presentation may be characterized as forward looking under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the Company's current assumptions regarding future business and financial performance. Those statements by their nature address matters that are uncertain to different degrees. Those statements involve a number of factors that could cause actual results to differ materially. Additional information concerning these factors is contained in the Company's filings with the SEC. Copies are available from the SEC, from the IBM web site, or from IBM Investor Relations. Any forward-looking statement made during this presentation speaks only as of the date on which it is made. The Company assumes no obligation to update or revise any forward-looking statements. These charts and the associated remarks and comments are integrally related, and they are intended to be presented and understood together. Information regarding the Company's financial roadmap including interim periods, which was previously communicated to investors, is being presented for purposes of historical information and is not being updated during this presentation.
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© 2014 IBM Corporation
**Source: Gartner, p.6, Private Cloud Matures, Hybrid Cloud is Next, Gartner G00255302, Sept 6, 2013
*Source: IBM Market Insights, 1H 2014
***Source: IDC Directions, "How SaaS Gets Built" Doc # DR2014_T3_RM March 2014
Cloud Market Opportunity*
25% CAGR through 2017
Nearly 70% of enterprises to pursue
hybrid cloud by 2015**
91% of net new software built for cloud
delivery in 2014***
Growing IT complexities accelerating shift to
software defined solutions
Open standards driving new class of
innovation
Expanding role of Service Providers
By 2017, cloud spend will be $392B
SaaS /
BPaaS
IaaS / PaaS
Private
Cloud
25% CAGR
28% CAGR
24% CAGR
$392B
Cloud is changing the way enterprises work and transforming the way IT and business processes are delivered
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© 2014 IBM Corporation
Enabling business transformation
Business Process as a Service
Marketplace of high-value consumable business applications
Software as a Service
Composable and integrated application development platform
Platform as a Service
Enterprise class, optimized infrastructure
Infrastructure as a Service
Smarter Workforce
Smarter Analytics
Smarter Commerce
Watson Solutions
Software Solutions
IBM’s participation across the stack drives higher operating leverage
BluemixTM
Think it. Build it. Tap into it.
Infrastructure Services
Patterns
IBM Cloud
Managed Services
Smarter Cities
Only IBM can fully address enterprise cloud needs integrating sytems-of-engagement with systems-of-record
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© 2014 IBM Corporation
Enterprise cloud innovation requires a variety of deployment models, typically tied to existing systems-of-record
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Code
Data
Middleware
OS
Virtualization
Servers
Storage
Networking
Virtualization
Servers
Storage
Networking
Middleware
OS
Virtualization
Servers
Storage
Networking
Code
Data
Middleware
OS
Virtualization
Servers
Storage
Networking
Client manages Vendor manages
Traditional IaaS PaaS SaaS
Infrastructure
Components
APIs
IBM hardware and
professional services IBM SoftLayer IBM Bluemix 100+ IBM offerings
Cloud Native Apps/Services Cloud Enabled
SoftLayer
Bluemix
© 2014 IBM Corporation
Platform-as-a-Service makes cloud application development simple and fast
Platform-as-a-Service (PaaS) abstracts the
underlying infrastructure in favor of automation
and a developer focus on runtimes, code, and
data
This allows developers to begin developing and
deploying new mobile and Web applications
immediately, without losing time with infrastructure
setup
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IBM 3rd party Open
Why enterprises adopt PaaS
1. Enables the ability to bring new mobile and
Web applications to market faster
2. Allows for experimentation with new
business models
3. Simplifies the integration of new applications
with existing systems of record
© 2014 IBM Corporation
Developers gain instant access to a rich set of
services built around industry leading domains including
mobile, big data and analytics, security and more.
50+ services from IBM’s middleware and SaaS portfolios,
3rd party and open source services.
Bluemix dramatically increases the speed at which
new apps can be built and deployed, shifting traditional
development from months to minutes, allowing enterprises
to experiment with and reinvent their business models.
Integration services connect the enterprise cloud
mobile applications to their existing on-premise
infrastructure, connecting systems of engagement with
systems of record in hybrid configurations.
New applications and services can reach consumer
scale rapidly with enterprise grade infrastructure
services from IBM SoftLayer.
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“Bluemix represents the next step in the transformation of IBM’s cloud offering” - Gary Barnett, Ovum
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Bluemix unlocks developer productivity to quickly deliver enterprise-enabled applications
© 2014 IBM Corporation
Bluemix is transforming business with significantly faster time to deployment
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Enabling Developers with instant access Providing the ability to deploy rapidly
Connecting traditional IT and cloud Scaling on-demand
Increasing customer
satisfaction with immediate
feedback loops using IBM
mobile quality assurance
services
“Speed and being nimble are our competitive advantage.
This is where our partner IBM comes in. With their help, we
will become a truly MobileFirst bank."
Deployed new
customers in 30
seconds, versus 2
days through strong
devops services
“With Bluemix, we don’t have to worry about infrastructure;
all of that’s taken care of. All we focus on is our code.”
Developed running prototype
of new application in only 15
days that ties legacy
technology into a real-time
mobile application, versus
traditional 6 month
development cycle
“You don’t have to have all the assets in place or figure out
how to build an environment. It’s all in the cloud”
Reduced service defect
resolution time by 300%
through mobile quality
assurance and DevOps
services catching defects
early on
“All I have to do is plug-and-play components into the
different places to solve different business problems”
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© 2014 IBM Corporation
Broad portfolio of advanced database capabilities to manage and analyze any data
Quickly provision databases to compose applications
Flexible hybrid deployment models to support the enterprise
Cloudant. Manage data for large or fast-
growing web and mobile apps in
ecommerce, on-line education, gaming,
financial services, and other industries
SQL Database. Handle demanding web
and transactional workloads
Time Series. Consolidate and organize
massive amounts of time-stamped data
for consistently fast analysis
Analytics Warehouse. High performance
columnar in-memory database for complex
analytical queries on structured data
Analytics for Hadoop. Analyze and
visualize large volumes of structured
and unstructured data
Geospatial Analytics. Use real-time
geospatial data to track and use device
location information
Bluemix cloud data services bring the full breadth of analytics capability to the cloud
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“Our code handles hundreds of millions of transactions a day. Moving our data to the
IBM Cloud has freed up our team to focus on what matters most: making a great
experience for users.”
- Joel DeYoung, Co-Founder and Director of Technology for Hothead Games
© 2014 IBM Corporation
Build and manage one backend to power both Android and iOS applications
Improve code quality with vulnerability scanning and Mobile Quality Assurance
Mobile Data. Build a scalable, reliable
backend datastore without database
management skills
AppScan for Mobile. Scan mobile
app code for security vulnerabilities
Mobile Quality Assurance.
Easily obtain and respond to both
bugs in pre-production and
customer feedback in production Push. Schedule and send
notifications to users. Segment
and analyze customer engagement
and response.
Mobile App Security. Block
access to apps and services on
certain devices
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“Mobile is super important for us and it's not that well supported on computing
platforms, that's something that we found in Bluemix.”
- Federico Pinna, Co-Founder and CTO for Vivocha
Bluemix mobile services scale to meet demand
© 2014 IBM Corporation
Create custom APIs to access your systems-of-record from new applications
Manage secure connections between systems
Extend the enterprise to new cloud, mobile, and social applications
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“With Bluemix we can just create and connect so it takes all of that friction out of
getting the end result.” - Nigel Hook, CEO DataSkill
Developers can begin from systems-of-record or from the cloud, and integrate them through the Bluemix platform
Workload
Integration
© 2014 IBM Corporation
IBM DevOps for Bluemix offers an integrated toolset for continuous development and delivery in the cloud
100,000
“We can easily modify the files and use the auto deployment to deploy using Bluemix
DevOps…I will recommend this to other fellow developers.”
- Top Coder Developer
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© 2014 IBM Corporation
PaaS revenue and profit dynamics
■ Enterprises require pricing flexibility as they move to the hybrid cloud ► Bluemix provides pay-as-you-go and subscription based pricing, with a-la-carte and bundled services
availability
► IBM’s PaaS capabilities and freemium model cater to new born-on-the-cloud workloads as well as enterprise workloads
■ IBM PaaS leverages the SoftLayer infrastructure and network, providing significant
financial efficiencies across the cloud stack
■ IBM has been investing heavily in organic development, acquiring supporting
solutions, and expanding the partner ecosystem ► $1B committed across Bluemix platform, integration with growth initiatives, and geo expansion
■ PaaS offerings and capabilities increase the workload on existing systems-of
engagement, driving additional system/software/services needs
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$4.4B of total cloud revenue in 2013, including $1.7B delivered as-a-Service Exited 2Q 2014 with as-a-Service run-rate of $2.8B, nearly double YTY
Significant investments to drive innovation and differentiation
As the cloud platform scales, its profit margin expands
© 2014 IBM Corporation
IBM continues to innovate with the Bluemix platform
■ Bluemix enables mobile application development for the
enterprise IT masses by combining ‘born-on-the-cloud’ speed
with enterprise grade developer lifecycle tools
■ Bluemix offers 50+ robust services in application development
including big data, analytics, security, devops, mobile, and more
with scalability by running on SoftLayer, the performance leader
■ Backed by IBM’s startup ecosystem, Bluemix reaches 1,200+
entrepreneurs and expands outreach through the Bluemix
Garage global initiative
■ IBM is commercializing more than 100 new applications
through the IBM and Apple partnership, and developers have
access to 250+ services through the IBM marketplace
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“IBM's key
differentiator and
long term strategic
bet is its Bluemix
PaaS, which they are
combining with their
analytics capability in
the cloud and with
Apple's broad reach of
mobile devices.”
- Frank Gens, IDC
© 2014 IBM Corporation
IBM leads the transformation of enterprise IT for the cloud
■ Bluemix brings IBM’s middleware portfolio to the cloud, leveraging its
segment leadership and expertise
► The combined IaaS+PaaS market is growing rapidly
■ Enterprise developers need a cloud platform to quickly and easily integrate
new systems-of-engagement with existing systems-of-record
► Integration drives incremental workloads to traditional infrastructure
■ Cloud operating leverage improves as IBM extends its portfolio of offerings
across IaaS, PaaS, and SaaS
■ IBM cloud is bringing enterprises into the next generation of hybrid
deployments with the combined power of SoftLayer and Bluemix
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© 2014 IBM Corporation 16
