© 2011 IBM Corporation Infor and IBM – Partnership to deliver application hosting Global Technology Services IBM Growth Markets BUP03104-USEN-00.

© 2011 IBM Corporation

Infor and IBM – Partnership to deliver application hosting

Global Technology ServicesIBM Growth Markets

BUP03104-USEN-00BUP03104-USEN-00

© 2011 IBM Corporation2

World class cost-effective ERP

Implementation for business

Infor ERP Solution Suite

IBM - Infor Integrated ERP Solution package available on a Pay-on-Monthly-Basis

Core ERP Solution from Two Industry Leaders

IBM's Infrastructure + Managed Hosting Services

Offering: The Offering is to provide businesses with a bundled solution that includes the infrastructure setup and ongoing management as well as the application in one complete solution

End to end Solution: This will leverage IBM’s capability to provide infrastructure hosting with Infor’s software solution

Target Market: Initial view is to target Small and Medium Businesses

I f you target SMBs, focus your value proposition on cost-effectiveness, fast ROI and how to compete in a growth market. Ensure that your ERP solution is the best fit for the SMB's unique industry requirements in its local country. Provide a one-stop ERP solution bundling package because SMBs prefer simpler purchasing processes.

I f you target SMBs, focus your value proposition on cost-effectiveness, fast ROI and how to compete in a growth market. Ensure that your ERP solution is the best fit for the SMB's unique industry requirements in its local country. Provide a one-stop ERP solution bundling package because SMBs prefer simpler purchasing processes.

*IDC: Market Trends, ERP, Asia Pacific: August 23rd 2011

*


This solution leverages two industry leaders that have a strong global partnership

• A leading provider of infrastructure solution across all industries, sectors and geographies

• We’re a 100 year old enterprise with over 40 years of experience in helping clients improve resiliency of their IT infrastructure

• Proven ability to assess business and technology environments, leverage multivendor hardware and software and architect scalable solutions.

• More than 1,600 dedicated business resiliency professionals and over 150 global business resiliency centers in 55 countries supporting thousands of customers.

• A leading provider of a full range of business software and services to over 70,000 customers in 164 countries

• These customers include:• 8 of Top 10 aerospace companies

• 9 out of Top 10 hi-tech companies

• 9 out of Top 10 Pharmaceutical companies

• 80 out of Top 100 automative suppliers

• 7,000 machinery manufacturers

IBM and Infor share Over 17,000 joint customers on System i, System p and System z

IBM and Infor look back on more than 30 years of successful partnership

IBM and Infor work together on multiple levels – technology, sales, marketing and executive


Data center and energy physical space for IT equipment

Computing center infrastructure LAN and SAN connection within the data

centers Data center physical security Computing resources capacity (Operating

HW-SW) 24x7 OS errors monitoring 24x7 OS administration OS technical support and administration System logical security review through

IBM security norms OS back up copy administration

(archives) Operational documentation administration Project administration and management Infrastructure preventive and corrective

maintenanceIBM Data Center

LAN Administration

OS and server Administration

OS Database

Su

pp

ort L

ine

Infrastructure technical support

Storage and back up/restore

IBM technical knowledge and

experience

Customer Service Team

24 x 7 Support

Service L

evels

Rep

ortin

g an

d

Mo

nito

ring

Pro

ject

Man

agem

ent

SOLUTION COMPONENTS

Application Hosting solution provides the customer with infrastructure implementation and support structure

The partnership between IBM and Infor will allow the customer to order an overall solution encompassing both infrastructure and application as a service charged to them on a monthly basis


The solution will also include key management and monitoring metrics to ensure the environment is performing to SLA’s Integration of data center IT and Facilities operations data Monitoring of data center IT systems: alerts; CPU, memory, storage utilization; energy consumption Monitoring of data center Facilities systems: alerts; power consumption, power distribution units,

uninterruptible power supply (UPS), cooling systems; energy consumption and efficiency Automated collection and presentation of real-time data Rich Dashboard view to provide immediate visibility to issues impacting Service Level Agreement

objectives


The solution has 3 key advantages for customers

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1) Reduced Cost• Overall total cost of ownership reduction of 15% - 20%+ • Achieved through more efficient use of labor, infrastructure and data center space

2) Aligning cashflow with benefits of the solution • No Capital expenditure outlays • Significantly reduced charges prior to production • Operating charges aligned with the benefits derived from the deployment of the

application

3) Faster time to deployment • No requirement to procure hardware (typical elongated procurement process) • No requirement to hire and/or train staff for infrastructure management • No requirement to source data center space


1) Reduced Cost: The solution will target an overall reduction to the customer’s cost of deployment and running of the environment of 15% - 20%+ over the contract period

Dat

a C

en

ter

Exp

ens

es

Today Target

Network Costs

Infrastructure Upgrades

Utility Costs

Real estate costs

IT Infrastructure

Labor Costs

Targeted Total Cost of Ownership savings at

15% - 20%+

Reduce infrastructure and real estate costs through driving higher utilization that internal case

Improve operational efficiencies, reduce the assets managed and improve resource utilization

Application Costs

Network Costs

Infrastructure Upgrades

Utility Costs

Real estate costs

IT Infrastructure

Labor Costs

Application Costs

Total Cost of Ownership analysis over 3 – 5 year period (typical duration of contract)


2) Aligning cashflow with benefits of the solution – Option B) reflects the solution proposed

Time

$A) Cost of the

Project

(ROI) Solution Benefits

B) Monthly payments

B) Project Payback

A) ProjectPayback

Option A) Initial Capital outlay

Reflects the capital outlay needed prior to the project going into production. This skews the expected benefits of the software deployment which results in the cost savings / revenue increases (new benefits) delayed from the initial outlay (new costs).

Option B) Application Hosting Solution

Payments prior to production are minimised. Contract costs are charged at a stable, standard monthly rate across the life of the deal. This more closely aligns the payments with the benefits of the deployment . The Project Payback come much earlier in the timeline than in Option A)


3) Faster time to deployment

*Note: need to improve Graphics….need help of STH here

Time to procure Hardware

Time to hire / train staff

Time to source Data Center space

Time to implement / test first of a kind for organisation

IBM can fast track internal hardware cycle

IBM staff already trained

IBM has Data Center space ready

IBM has vast experience in deployments


This offering needs to be targeted to customers that can benefit from the overall value proposition

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Typically attractive to Small and Medium businesses that want to control costs and predict revenues with a new software package but cannot manage the infrastructure burden that comes along with a new software deployment – those customers that are attracted to:

– Reduced fixed operating costs of IT and its capital expenditures, outsourcing operational activities and enabling IT to focus on activities of value to the organization.

– Operational Risk Reduction increasing the current availability of IT infrastructure through outsourcing management technology platform to a resilient, protected, secure and retrievable solution.

– Improved critical business applications security, outsourcing the management and support of ERP platforms, OS and Database to a strategic partner specialized in these activities.

– No Data Center space sourcing requirements – No skilled manpower requirements – Quick and proven deployment – Improved quality of IT services through optimized methodologies, customer care, and measurement

services which are recognized by the user and respective business lines of the Organization.

– An end to end offering that provides a strong and resilient IT infrastructure managed with Service Level Agreements

– A solution that provides high scalability, reliability and flexibility – A software and infrastructure provider that can grow with the company and provide world class support


IBM is leveraging a Data Center in Suzhou to deliver the offering

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Data Center space requirement 100 ㎡ first setup in 2011 Dynamic growth in 2012~2015

ECC & Office Space requirement 400 ㎡ with ECC buildup in 2011 Expansion in 2013~2015

High Stability – Tier IV Design and build by IBM GTS Uptime Tier IV design certification 99.995% SLA Adapt IBM management procedure


IBM SmartCloud

Management,support anddeployment

Securityandisolation

Availabilityand performance

Technologyplatform

Payment and billing

IBM Cloud Reference Model

Business Process as a ServiceSoftware as a Service

Platform as a Service

Infrastructure as a Service

IBM is focused on enabling delivery of infrastructure and software ‘as a service’ taking advantage of cloud based models. As more and more customers become aware of the solution and the potential benefits, the application hosting model will provide the platform to migrate to a cloud model providing a seamless transition for a customer when the customer is ready to change

The relationship between Infor and IBM will position Infor with the opportunity to provide a Cloud solution to customers as the market develops


Next Steps

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IBM and Infor Relationship Executives will sponsor a workshop between IBM and Infor sellers that will also include architects and subject matter experts in the session. The objective of the workshop is to:

– Define the customer set that would be attracted to this offering

– Define the joint go to market model between IBM and Infor

– Review any changes that need to be made to the offering / material

– Define how IBM can use its brand awareness and geographic presence throughout China to provide Infor with insight into some key customer sets for this offering

– Review the market potential that exists around the Data Center area in Suzhou that is home to over 18,000 businesses


Case Studies – Need to tidy up


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With the innovative IT solutions through IMS, IBM improves the quality of IT services. It realizes the financial rationality of IT and advances the IT organization’s capacity to contribute to the growth of business.

With the innovative IT solutions through IMS, IBM improves the quality of IT services.

2. Speed 2. Speed to Marketto Market

a. With limited resources, it increases the Biz effect on new investment

by more than 3 times.b. It increases competitiveness in the market by promptly

introducing/applying new Biz models that use new IT technologies such as Cloud or Mobile.

3. 3. Maximizing Maximizing

business business impactimpact

a. As an On-Demand type of managed service, the flexibility of

the initial investment cost is up 49%.b. With cost reduction by making the operation efficient,

companywide profit increases by as much as 8.6%.

1. IT cost1. IT costefficiencyefficiency

a. By shortening the installation period by 30%, it promptly responds to the End User’s demands.

b. It secures flexible IT capacity to respond to variously changing business requirements.

a. Through integrated operation for various IT areas such as Cloud, Mobile, or security in the system infrastructure, it increases the

efficiency of operation by 53% .b. When new IT Infrastructure is introduced, during the initial installation

and further operation-management, stability is maximized.

4. Infra 4. Infra stabilitystability


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The IBM Difference

•Various manufacture of HW, SW

• Infrastructure installation-operation

• IT & Biz consulting•Having the capacity as an

integrated IT Biz party efficiency & specialization of installation, operation, & maintenance↑

beyond simple Infrastructure operation, One-Stop Buying of integrated installation-operation of various IT solutions

IT Infrastructure visualization 75%+↑ securing 99.98% of Infrastructure usability

“IT cost reduction & operation efficiency increase are the

quantitative results, and its effects are guaranteed.”

service error # 67%-↓ Infrastructure cost rate vs. unit sales 31%-↓

virtualization, introduction of Cloud & resource operation support

with the adoption of virtualization, use rate of server 84% +↑

“As the only integrated IT business party in Korea, based on capacity, IBM provides the best IT operation management services.”

“applying proven international standard management processes & advanced management methods to many local/global customers”

“As a leader of virtualization technology, through the aggressive adoption of new

technologies, support the capacity to respond to the future market.”

Infrastructure

IT installation-operation service

IT/ Biz strategy

IBM’s technology leadership (History of IBM virtualization technology)

1967 2004 2008 present1987

•Proven global standard process/ advanced tools applied<?> to many customers

• IBM Business Park facility/labor that guarantees the best level of stability & usability

•IT operation efficiency increase

•IT Infrastructure environment optimization

•IT cost reduction


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IBM’s Example (Global Fashion Company/ Company S)

Customer’s Issues & Needs IBM’s Solution

• Needed a companywide management system to be competitive against competitors• Due to the increase in work owing to the increase in sales, needed work innovation through process & IT improvement• Due to function decrease caused by the aged system, needed the prompt installation of a proven system

• AoD (Application on Demand) for ERP & Groupware: - Process improvement consulting & SAP package customization- Implementation of interface between ERP & groupware• IBM hosting service: - supply of server/DB, supply of IDC’s multiple common equipment & tools- specialized operation management service by IBM IDC’s best local and global technical staff Customer’s Expected Effect

• cash flow improvement: By carrying over new ERP & Groupware investment cost for multiple years, prevent the deterioration of cash flow due to new investment.• reduction of total cost of ownership: With the On-Demand type of service supply, reduction of TCO compared to the customer’s self-operation management• for the introduction of new Solution, minimized risk & secured stable operation after installation: For ERP for which securing sustainable labor and technology is difficult, IBM provides continuously stable and professional operation even after installation through stable partnership with the customer •advanced IT operation through a global standard environment: Efficient operation through management process improvement & integrated management system

A global fashion leader, company S was facing various challenges internally and externally due to the increase in domestic biz size. To overcome these, securing competitiveness was a matter of urgency through the innovation of work process and installation of IT Infrastructure. For this, IBM provided the installation-operation services of the companywide management system and advanced finance/management accounting system and had Company S secure a flexible, responsive system.

Client references


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IBM’s Example (Korean Distribution Company/Company G)

Customer’s Issues & Needs IBM’s Solution

• introduction of rational operation cost system • needed 24x7 and all-time support system• due to the aged system, poor work productivity• to minimize impact on the work in case of errors in the customer system, prompt response & recovery needed •increase in errors wielding negative impact on customer satisfaction & sales

Customer’s Expected Effect

• cost reduction effect: Due to the increase in productivity and operation efficiency, every year, each branch realizes 12% reduction in unit price; for 6 years, 33% cost reduction was made on the average. • cost efficiency: Prevention of over payment when the actual number of branches increased compared to the expected number of branches • securing visualization with regard to system usability & IT operation status: Through 24x7 integrated monitoring, visualization for the overall IT Infrastructure operation & functions was secured.• decrease in the # of errors: About 54% error reduction thanks to error preventions & regular checkups • improvement of service quality through the service level agreement (SLA): Improvement of customer service as proven by the achievement of SLA each year for 5 years

• supply of unified window thru Help Desk: Provided specialized services focusing on field support and help desk connected to the integrated customer call center

• real-time dashboard: Thru the installation of dashboard, real-time monitoring of service status is possible. • installation of error management system: The installation of the reorganized error management system that enables the application of ITIL-based process reinforced prompt support and work efficiency and improved the SLA observance rate.

• Field engineer Mobile service: By installing the mobile service system, enhanced field engineers’ prompt/precise service capacity

For the smooth support of maintenance for the currently operating computing system in convenience stores, Company G wanted the operation service environment of the current computing system be checked and the requirements arising from the IT infrastructure change be identified. In addition, it wanted to promote the increase in quality of information services for customers and improve work efficiency thru the non-stop/stable operation of the computing system.

© 2011 IBM Corporation Infor and IBM – Partnership to deliver application hosting Global Technology Services IBM Growth Markets BUP03104-USEN-00.

Documents

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ibm corporation4 data

infrastructure management

infrastructure hosting

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ibm corporation3

ibm corporation55

end solution