Marie and Beth AR Presentation

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Analyst Session Presentation Agenda – Monday, April 11th

Time Presenter Topic

12:15 - 12:45 pm Marie Wieck Helping Clients Transform for Growth

Introduction, business strategy, divisional top-level points, revalidation from Impact Key Note. Momentum/update with results, investments, competitive differentiation. Customer validation.

12:45 - 1:15 pm Beth Smith New Capabilities for the Agile Enterprise

New product capabilities that enable IT organizations to address today's requirements for agility, integration and scalability. WebSphere product directions, key product announcements for Application Infrastructure, Connectivity, and Business Process.

1:15 – 1:30 pm Marie Wieck and Beth Smith Joint Q&A

1:30 - 2:00 pm Break

2:00 - 2:45 pm Don Boulia Cloud UpdateUpdate on overall IBM Cloud story and strategy. Highlighting new function of application and database deployment capabilities, image management, and cloud capabilities built on SOA. Demo

2:45 - 3:15 pm Jerry Cuomo, Phil Gilbert, Rob High

Q&A on WebSphere, BPM, and Cloud

3:15 - 3:30 pm Break Transition to Exec 1:1s; Impact Breakouts

3:30 - 5:00 pm AIM Executives Exec 1:1s

6:30 – 9:00 pm AIM Executives Analyst Reception

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Helping Clients Transform For Growth

Marie Wieck GM WebSphere, IBM Software GroupBeth Smith VP WebSphere, IBM Software Group

April 11, 2011

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IBM's statements regarding its plans, directions, and intent are subject to change or withdrawal at IBM's sole discretion. Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision.

The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole discretion.

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70% of organizational transformations fail

And It Doesn’t Come Easy

Source: Managing Change: Winning Hearts and Minds, Harvard Business Review 2009

Transformation Is Not Optional…

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Dynamic partner and supplier channel

relationships

Empowermentthrough social media,

mobile access & cloud

Sky high consumer expectations around products and services

Velocity of Business Change

FromYears

To Months

To Days

To Hours / Minutes

New business models

Employees empowered at the edge of your business

Change is the New Normal

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As CEOs turn attention to growth, a significant number said their success depends on doubling revenue from new sources over the next five years

Source: Capitalizing on Complexity: IBM CEO Study 2010

AutoLOB

Life Insurance

LOB

HomeLOB

Insurance Carrier

Agents & Producers

Partners &Re-insurers

InternalEmployees

Consumers

Outsourced/BPO

ServiceProviders

Financial Institutions

3rd PartyServices

Gov’t Agencies

Consumers

Mobile

Web

Gov’t Oversight

A Culture of Adaptability is Needed…

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Launched new insurance services 50% faster

Doubled market share to become #4 provider in India

Optimized processes to fund new growth and react quickly to new opportunities

…To React Quickly and Capitalize on Change

“My job was to inspire people to think differently” Mohan Chandrasekaran

CTO, Reliance Life Insurance

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Agile Businesses Achieve:10% -15% higher margins

Up to 5% faster revenue growth13% - 38% higher capital efficiency

“Change is a threat when done to me, but is an opportunity when done by me”

- Rosabeth Moss KanterSeven Truths about Change to Lead By and Live By, HBR 2010

Agility requires: Transforming processes and decisions for growth Rapid, adaptable integration Unbounded applications Flexible and efficient infrastructure

Transform for Growth

Source: BTM Business Agility Index, BTM Corporation 2010

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All built on SOA

SellingOrder managementSupply chain managementDecision optimization

Cloud platform and application virtualizationElastic cachingApplication optimizationApplication foundationTransaction processing

MessagingIntegration foundationB2B integrationCloud integrationManaged file transfer

Process discovery and designProcess automation and integrityBusiness monitoringDecision managementAdvanced case managementIndustry process accelerators

Cross-channel campaign managementMarketing resource managementOnline media optimizationMarketing analytics

Commerce

Application Infrastructure Connectivity and

Integration

Business Process Management

Enterprise Marketing Management

Our Customers Achieve Business Agility Through Business Integration and Optimization Capabilities

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IBM Is Continuing to Help Customers Transform

New Delivery Models: Mobile, Cloud, Appliances

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Methodology Accelerators Architecture

Collaboration

Analytics

Events

Information

Monitoring

Content

Rules

Process

• Describes a business design

• Drives greater collaboration between business and IT

• Leverages enablers to maximize business value

Language of Business Design

IBM Helps Align Business and IT for Repeatable and Scalable Success

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Design and Optimize Leverage and AssembleEngage and Assess1 2 3

Business Agility Assessment

Goal Capability Model

Roadmap

Business Entity Lifecycle Model

Business Entity

Lifecycle Prototype

Process and Capability Model

Variations Model Decision

Map

Solution Architecture Model

Implementation Plan

Process BlocksArchitectural Decisions

• Conduct business agility assessment

• Define agility goals• Scope process, lifecycle or

domain• Develop roadmap

• Model business entities and lifecycle

• Identify points of agility required in the lifecycle

• Develop architecture model annotated with agility enablers

• Make architectural decisions and identify process optimization building blocks

• Develop implementation plan

Services Offerings and Roadmaps Help Customers Achieve Better Business Outcomes

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Customers Gain Understanding to Jumpstart and Accelerate Transformation with Industry Capabilities and Expertise

Mentoring and Expertise in over 20 Industries– Models– Templates– IBM BPM Industry Packs

Frameworks

Accelerators for Deployment

Telecom Government HealthcareRetail Electronics Banking

“This agreement means IBM is taking a lead role in a project that will help to build a more productive, innovative and prosperous Australia” Australia’s National

Broadband Network

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2011 CRN Channel

ChampionIBM #1

Middleware

Partner Ecosystem Enriches IBM Solutions

Partner generated WebSphere revenue grows 20% YtY

Partners contributed 30% of 2010 WebSphere revenue

Partner-led opportunities increased 36% YtY through co-funded marketing

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Our Customers Are Developing a Culture of Adaptability as Their Key Asset In Order to Transform and Grow

Scaling business model innovations to reach new customers

Launched two new strategic products in parallel – concept to implementation – in less than 12 months

New Autograph BrandNew Ritz Carlton Rewards

“Taking advantage of opportunities and constantly changing has been a major part of our culture.”

J.W. Marriott, Jr.Chairman and Chief Executive

Officer, Marriott International

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Our Customers’ Success Drives Our Results

Market Momentum and Global Reach: WebSphere Q4 2010 revenue grew 32% YtY 6 straight quarters revenue growth 13% and higher 9 straight quarters of market share gains 40 innovation centers and 80 labs in 32 countries 30,000 business partners

Nearly 80% of all transactions go through WebSphere software

Transaction ProcessingCICS

1969

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4.5 M client transactions managed per business day in the IBM Cloud8,000 Appliances

SOA and BPM2005

Integrated Platform to accelerate

client success

2011

$5 Trillion worth of application investments currently reside on IBM systems and software

7,000+ SOA Customers 8,000+ SOA Partners5,000+ BPM Customers 2,000+ BPM Partners

MessagingMQ

1993

Web Transaction ProcessingWebSphere

Application Server

1998More than 100,000 companies worldwide use WebSphere

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Extend applications to the edge with mobile, cloud,and application optimization initiatives

Fast, flexible, and reliable accessacross the enterprise and beyond

Transform processes and decisions for agility

WebSphere: Enabling the Agile Enterprise

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Extend applications to the edge with mobile, cloud,and application optimization initiatives

Fast, flexible, and reliable accessacross the enterprise and beyond

Transform processes and decisions for agility

WebSphere: Enabling the Agile Enterprise

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IBM Offers a Broad Portfolio of BPM Capabilities

Rules

Information

Collaboration

Content

AnalyticsMonitoring

Events

ModelingOptimizationAutomation

Portfolio Entry Points

Process discovery and compliance

Process automation and integration

Business monitoring

Decision management

Advanced case management

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Visibility

Simplify operations and improve customer experience.

Easy to engage all process participants, powerful enough for mission critical processes

Centralized visibility and control

Empower knowledge workers with real time analytics to

optimize business processes

SimplicityScale smoothly and easily from

initial project to enterprise-wide program

Power

Governance

Deliver on Your Business PromisesReduce complexity, automate processes and boost productivity

Achieve consistency and repeatability to ensure processes execute as designed

Share life-cycle management of process applications across your business and IT functions

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Powerfully Simple Process ImprovementIBM Business Process Manager V7.5

Unified BPM platform combines the simplicity of Lombardi Edition experience and the power & scalability of WebSphere Process Server.

Process Center and asset repository provides maximum collaboration & governance required to scale up your BPM program.

Single product with multiple entry point configurations and deployment options for companies & programs of all sizes.

IBM Process Manager 7.5 highlights

WebSphere Lombardi Edition & WebSphere Process Server compatibility ensures preservation of your BPM investments to-date

WPS customers can tap into easy-to-use design, playback, rapid deployment, and optimization capabilities

WLE customers can extend with SOA-based process automation, enterprise integration, and high reliability

In-process rules authoring based-on WebSphere ILOG JRules technology

IBM Case Manager tasks can initiate IBM BPM processes. Integration Designer can generate appropriate source artifacts and invocation scripting

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Document and Run Processes in the CloudIBM Blueworks Live

Simple process discovery, documentation and lightweight process execution

On demand SaaS offering, with rich collaboration and social capabilities

Increases business agility and improves the way customers work: Tens of thousands of customers Over 200,000 processes mapped Customer renewals > 92%

IBM Blueworks Live highlights

Ensure consistency of terms across processes by managing definitions in a Glossary

Communicate and present process flows through playbacks

New templates, from simple process automation to complete “Account Opening” process

Blueprints can be exported to IBM BPM 7.5

“We now have tools to map out, study and improve all of our processes. They

are user friendly and logical. I’m excited that we’ve embraced the BPM

technology and culture that supports the way we want to manage our

business.”- Lateca Fields, Business Analyst

Lincoln Trust

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Automate,Govern & Improve Operational Decision-MakingWebSphere Decision Server

Automate precise, context-specific decisions through a unified Event Processing and Business Rules offering

Modernize legacy applications by mining and migrating business rules using Rational tools

Easily augment rule based decisions withpredictive knowledge from SPSS

IBM WebSphere Decision Server highlights

Extends JRules Integration for Predictive Analytics to support PMML-based import of analytic models as decision tree rulesets

New rule mining capability in Rational Asset Analyzer v6.0 enables identification, analysis and extraction of business rules in legacy applications for centralized management in the WebSphere ILOG BRMS

Improved performance and availability of business events using HTTP, JMS, SOAP integration connectors by leveraging WebSphere Application Server

24 Agile, Flexible Solution Platform Simplifying the

Delivery of Solutions with IBM Case Manager

Agile/ flexible platform that can be leveraged across operational departments or agencies –reduces costs/ promotes best practices

Lower the barriers to delivering solutions and effecting change in organizations - business users can design and deliver solutions

Leverage current investments –easily integrate with existing processes and include information from content repositories

Enables invocation of an IBM BPM process from an ICM Case Task to support scenarios where process orchestration is needed

Have the right information at the right time to make better decisions

Optimize processes by extracting unique insight from unstructured information

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End-to-End Real Time Visibility with Business Activity Monitoring with IBM Business Monitor v7.5

Provides visibility into real-time, end-to-end business operations,

transactions, and processes to increase revenue, lower costs, and

improve service

Increases ROI through real time operational visibility and low implementation costs

Enterprise mobility enables views of KPIs, metrics, and alerts through Web interfaces, mobile devices, and corporate portals.

What’s new?– Fully integrated Cognos Business

Intelligence Server 10.1 for analysis and reporting on historical data

– Built-in tools and runtime support for integrated Business Activity Monitoring of IBM Business Process Manager

– Fine-grained security to enable or prevent anyone to see a wide range of information depth or detail

– Enhanced business user customization of data filtering, dashboard controls & reports, and alerts

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Extend applications to the edge with mobile, cloud,and application optimization initiatives

Fast, flexible, and reliable accessacross the enterprise and beyond

Transform processes and decisions for agility

WebSphere: Enabling the Agile Enterprise

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Beyond the enterprise Cloud based Integration

WebSphere MQWebSphere Message BrokerWebSphere ESBWebSphere DataPower

Sterling B2B IntegratorWebSphere DataPowerWebSphere Transformation ExtenderWebSphere Cast Iron

WebSphere Cast Iron LiveSterling B2B Collaboration NetworkSterling B2B Integration Services

Within the enterprise

Rapidly Connect Applications and Services

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Accelerate SOA Deployments With a Prescriptive SolutionWebSphere Enterprise Service Bus Registry Edition V7.5

Combines an ESB, a service registry and a repository for accelerated SOA success

Integrated, interactive, and visual development and deployment experience

Increases visibility with an established catalog of services

Promotes fast ROI by tracking service usage

Prescriptive guidance: IBM ESB and Connectivity Patterns Wiki WESB Development Guide

WESB Registry Edition 7.5 highlights

Business spaces for SOA users supports• service registration, mediation policy configuration, system health and service traffic monitoring,

visualizing reuse and impact of SOA projects

Scriptable ESB through newly exposed textual mediation flow format New SLA endpoint lookup primitive More powerful transformations with XSLT2

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Simplified Integration and SOA Deployment with Purpose-Built DataPower Appliances

WebSphere DataPower XI52 and XB62:

New modular design lowers TCO by efficiently easing delivery of additional hardware features

Enhanced WSRR subscriptions for WSDL and WS-Policy Support for ebXML CPPA v2.0 (XB62 only) Enhanced MQ File Transfer Edition integration and transaction visibility (XB62 only)

WebSphere Appliance Management Center V4.0: Simple Multi-box Management for DataPower Appliances Single, pre-configured console to efficiently manage configurations, clusters of

DataPower appliances, firmware deployments, and monitor the health of DataPower devices

WebSphere DataPower XI50z: Acts as a bridge for distributed and System z platforms by offering built-in, message-

level security alongside swift and flexible integration with any-to-any transformation between disparate message formats

Simplifies, governs, and enhances the network security for XML and Web Services Monitoring of hardware with “call home” for current/expected problems Integrated zManager management to simplify control and operations

WebSphere DataPower Integration Appliances XI52, XB62, XI50z

WebSphere Appliance Management Center V4.0

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Extend applications to the edge with mobile, cloud,and application optimization initiatives

Fast, flexible, and reliable accessacross the enterprise and beyond

Transform processes and decisions for agility

WebSphere: Enabling the Agile Enterprise

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IBM WebSphere Application Server V8

Graphic

Power Your Business with Intelligent Application Development and Management with WAS V8

Speeds delivery of new apps and services -Broadest programming models in the industry

Supports cutting edge capability - New mobile and application agility capabilities

Improves operational efficiency through productivity and performance enhancements

Premier application server in the industry for 12+ years

Integrated programming models: JEE 6, OSGi Apps, Java Batch, XML, SCA, CEA, SIP

Extending the support to mobile devices through Web 2.0 and mobile feature pack

Update & extend running OSGi applications with less down time

End-to-end performance improvements, security enhancements, edit-compile-debug acceleration and administrative task automation enhancements

Easier migrations with less risk of downtime, through improved automation and tools, including a no-charge migration toolkit for version to version migration and competitive migrations

WAS V8 highlights

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Public Cloud Private Cloud

Bring the Power of WAS to Connected Devices with WAS Feature Pack for Web2.0 and Mobile

IBM WAS Feature Pack for Web 2.0 and Mobile• New Toolkit for extending existing applications and building new riche

AJAX and mobiles versions easily

• Browser based app support for popular Smart Phones and Tablets, including their respective look and feel

• Cross device support for desktop and mobile web applications

• Rapid delivery of outstanding user experiences through innovative user interface services

• Supports WAS 6.1, 7.0, 8.0 and WAS CE

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Transformation for Growth Means Redefining IT Boundaries

Public Cloud Private Cloud

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Public Cloud Private Cloud

Gain Control of Enterprise Applications with Edge Optimizations

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Public Cloud Private Cloud

Easily Scale-Out Business Critical Applications for Continuous Availability with DataPower XC10 Caching Appliance

WebSphere DataPower XC10 V2• Expands to any client with HTTP capabilities including PHP and .Net

• Larger cache capacity, with 240 GB available for customer data

• Next generation hardware Platform (9005) for enhanced performance

• Integrates with WebSphere DataPower XI50 and XI52

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Public Cloud Private Cloud

Accelerate Traffic Beyond the Edge of the Enterprise with DataPower

WebSphere DataPower Edge Appliance XE82Coming soon, with intent to deliver:

• Intelligent load-balancing and security that includes AAA security and intelligent routing

• Edge acceleration that leverages security tokenization, load and cache optimization

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Public Cloud Private Cloud

Accelerate Applications Hosted in the Enterprise to Internet Based Users Around the Globe

WebSphere Application Accelerator for Public Networks• Managed service offering to accelerate delivery of Internet web

applications to the edge of the public network

• Improves availability of user applications over the Internet

• Enhances application security against Internet threats

• Supports consolidation by providing an in-network dynamic load capacity

• Works with DataPower appliances with Application Optimization option

Based on:

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Public Cloud Private Cloud

Accelerate Applications Hosted in the Enterprise to Internet Based Users Around the Globe

WebSphere Application Accelerator for Public Networks• Managed service offering to accelerate delivery of Internet web

applications to the edge of the public network

• Improves availability of user applications over the Internet

• Enhances application security against Internet threats

• Supports consolidation by providing an in-network dynamic load capacity

• Works with DataPower appliances with Application Optimization option

Based on:

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WebSphere Application Accelerator for Hybrid NetworksComing soon, with intent to deliver:

Managed service intended to provide gateway service for enterprise network access to accelerated SaaS and public cloud applications

• Appliance-based proxy gateway

• Consolidated traffic for centralized security policy management

• Enhances application availability over uncontrolled internet channels

• Increases performance for external applications access by enterprise users

Based on:

Public Cloud

Accelerate Public Cloud and SaaS Applications to Enterprise Network Users

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Extend applications to the edge with mobile, cloud, and application optimization initiatives

Application Infrastructure

Fast, flexible, and reliable access across the enterprise and beyond

Connectivity and Integration

Transform processes and decisions for agility

Business Process Management

Key IBM Announcements in Support of Business Agility

• IBM Business Process Manager v7.5• IBM Blueworks Live• IBM Method for Business Process Optimization• IBM Business Monitor v7.5• WebSphere Decision Server Feature Pack for

SPSS Predictive Analytics

• WebSphere ESB Registry Edition v7.5• WebSphere Cast Iron Cloud Integration• WebSphere MQ Advanced Message Security v7.0.1.1• WebSphere MQ V7.0.1 Telemetry• DataPower Appliance Offerings (XI52, XI62, XI50z)• WebSphere Appliance Management Center v4.0

• WebSphere Application Server v8• WebSphere Application Server Feature Pack for

Web 2.0 and Mobile v1.1• CICS Transaction Server for z/OS V4.2• WebSphere Application Accelerator• IBM Workload Deployer v3

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IBM Uniquely Helps Customers Transform to Grow

Workload OptimizedSystems

Strong Partner Ecosystem

Business Integration and Optimization Software Capabilities

Industry Accelerators, Frameworks, Solutions

Business StrategyConsulting, Methodology and Process Expertise

Service Offerings and Roadmaps World Class R&D, Labs,

Innovation Centers, and Developer Communities

Customer AdvocacyGroups, User Groups

Mentoring and SkillsDevelopment

University Initiatives and Innovative Learning Platforms

New Delivery Models:Mobile, Cloud, Appliances

Thought Leadership in Associations, Technology, Standards

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