Cloud POV: The Growth Engine For Business
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Transcript of Cloud POV: The Growth Engine For Business
1 #SmarterBiz
IBM Cloud Point of View: The growth engine for business
Chris Mallon,Software Business Executive, IBM Canada Middleware Group
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Source: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation For more info, visit: ibm.com/ibmcai/globalcloudstudySource: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation For more info, visit: ibm.com/ibmcai/globalcloudstudy
As cloud aspirations grow, pacesetting enterprises are out ahead driving competitive advantage, not just efficiency
Pacesetters have deployed cloud on a broad scale and are gaining competitive advantage through cloud.Top cloud driver: Market responsiveness
Challengers are on par with Pacesetters in achieving greater efficiency through cloud, but still lag on differentiation and market responsiveness. Top cloud driver: Collaboration Chasers are more cautious about cloud. They’re in early stages of adoption and are not yet using cloud to drive competitive advantage.Top cloud driver: Workflow optimization
Pacesetters have deployed cloud on a broad scale and are gaining competitive advantage through cloud.Top cloud driver: Market responsiveness
Challengers are on par with Pacesetters in achieving greater efficiency through cloud, but still lag on differentiation and market responsiveness. Top cloud driver: Collaboration Chasers are more cautious about cloud. They’re in early stages of adoption and are not yet using cloud to drive competitive advantage.Top cloud driver: Workflow optimization
Pacesetters 18%
Highagreement
High
Low
Ado
ptio
n le
vel
Low agreement
Gaining competitive advantage through cloud
Challengers51%
Chasers31%
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The competitive advantage Pacesetters are gaining through cloud correlates with stronger business results
Source: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation For more info, visit: ibm.com/ibmcai/globalcloudstudySource: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation For more info, visit: ibm.com/ibmcai/globalcloudstudy
Gross profit2009-12 CAGR
Revenue2009-12 CAGR
2.4x
PacesettersPacesetters
ChasersChasers
ChallengersChallengers
12.7%
6.6%
6.8%
12.7%
9.5%
6.4%
15.3%
1.9xPacesetters vs.ChasersPacesetters vs.Chasers
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Through cloud strategies, Pacesetters are gluing together key technologies and scaling up to do business in an entirely new way
Leveraging cloud for the integration and application of these strategic technologies
Source: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation For more info, visit: ibm.com/ibmcai/globalcloudstudySource: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation For more info, visit: ibm.com/ibmcai/globalcloudstudy
100%
100%
50%50%100%
50%
50%
100%
Mobile
Social business
Big dataAnalytics
Pacesetters
Chasers
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Instant GratificationExtensible
FlexibleCost Effective
Marketplace Dynamics
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See how cloud can help you improve your competitive position
Source: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation For more info, visit: ibm.com/ibmcai/globalcloudstudySource: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation For more info, visit: ibm.com/ibmcai/globalcloudstudy
With prioritized differentiators and an enterprise cloud strategy, technology decisions can be better aligned with business needs.
Business objectives: Prioritize competitive differentiators to tackle via cloud
Given your competitive positioning, consider where cloud could drive greater differentiation.
• New business strategies?
• Faster product or service innovation?
• Better ways of engaging customers?
• Changes to your business model?
• More informed strategic or operational decisions?
• New or broader networks of expertise?
Cloud technology:Align platforms to business objectives
The broader and more strategic your cloud initiatives are, the more critical it becomes to have an enterprise-wide strategy. • How does your cloud strategy enable
mobile, social and big data initiatives?
• Are IT and LOB collaborating effectively to manage cloud services and make investment decisions?
• Is senior management on board? What kind of governance structure do you have in place?
• Which deployment aspects should be more tightly controlled? Are teams given sufficient flexibility?
Cloud strategy: Drive enterprise responsiveness through holistic strategy
• Which systems should be on open-source platforms to gain speed, scale and access?
• Do you have the right mix of public and private cloud to meet your requirements? Or will you need the flexibility of integrated, hybrid cloud?
• Where might an industry-specific platform supply tailored functionality or fill an expertise gap?
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Development& DevOps
Big Data & AnalyticsSecurityMobile
Business Processas a ServiceBusiness Processas a Service
Automating Business Innovation
Marketplace of High Value Consumable Business Applications
Rapid App Development through Composable and Integrated PlatformBuilt using open standards
Enterprise Class, Optimized InfrastructureBuilt using open standards
Integration Traditional Workloads
Integration/ API Mgmt
ComputeCompute StorageStorage NetworkingNetworking
Business Processes Procurement Payment
Processing Help Desk AccountingRecruiting ProcurementProcurement Payment Processing
Payment Processing Help DeskHelp Desk AccountingAccountingRecruitingRecruiting
Commerce SupplyChain AnalyticsTalent
Management Collaboration IT Management
MarketingSoftwareas a ServiceSoftwareas a Service
Platformas a ServicePlatformas a Service
Infrastructureas a ServiceInfrastructureas a Service
Orchestration and AnalyticsSmartCloud Orchestrator SmartCloud Analytics
Custom Infrastructure
Patterns of Expertise
Performance
Application Lifecycle ManagementIBM UrbanCode
Capacity Security Integration
Mobile 3rd PartyWeb BPM
Open Ecosystem
Application Performance
Mgmt
Virtual Storage Center
IBM CastIronIBM API Mgr
Endpoint MgrIdentify & Access
Expert Integrated Systems
IBM PureSystems
Utilize cloud services delivered from IBM to
empower IT, accelerate application delivery
and manage across on and off premise environments
Build and run your private or hybrid cloud leveraging existing custom infrastructure or next generation
integrated systems
will enable evolution to today’s environment towards Cloud efficiencies and support a Cloud First model
Evolving toCloud Enabled
Evolving toCloud First
Core cloud capabilities with a single, seamless user experience across all cloud delivery models
Optimized ITDelivery
Next Generation IT Delivery
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Decision making power is shifting from the traditional IT buyer to a new audience - the Line of Business owner & practitioner
By 2016, 80% of new investments will directly involve LOB execs with LOB leading decisions in more than 50% of those investments
48% discover brands they are not aware of while searching, 24% decide which brand to purchase solely from their self directed digital research
60% of the IT purchase process decision is completed before the prospect engages a vendor
… and the decision making process is changing
*Source: Google & Compete B2B Customer Study, June 2012
UsersUsers
RecommendersRecommenders
InfluencersInfluencers
Economic Buyers
Economic Buyers
Decision MakersDecision Makers
Decision Makers
Practitioners
CIOCTOsIT ManagersIT Operations ManagerData Center Manager
DevelopersTechnical LeadersSystem AdministratorsIT OperationsData Scientists
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IBM Cloud
Business Processas a Service
Enabling business transformation
Business ProcessSolutions
Application Application Application Application Application
Softwareas a Service
Marketplace of high value consumable business applications
Platformas a Service
Composable and integrated application development platform
Infrastructureas a Service
Enterprise class, optimized infrastructure
ExternalEcosystem
Industry CollaborationHuman
ResourcesBig Data & Analytics
Commerce Marketing
Development
Big Data & Analytics
Security Integration Mobile SocialTraditionalWorkloads
Built using open standards
Compute Storage Networking
Built using open standards
SmarterCommerce
SmarterAnalytics
SmarterCities
SmarterWorkforce
Watson solutions
Software solutions
MiddlewaresolutionsPureApplication
SOFTLAYER
IBM SmartCloudEnterprise +
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Reality check - physical implementation is complex and requires experts to deploy
Top Causes of Project DelaysHardware• Troubleshooting and tuning
production environment• Integration, configuration and
testing of the infrastructure• Installation, cabling and
network access for the environment
Software• Integration, configuration and
testing of applications• Integration, configuration and
testing of middleware• Configuration, build and
deployment of applications
45%
45%
29%
41%
35%
34%
Phase Time (days) Budget
Specify/design 73 - 96 14% - 16%
Procure 57 - 112 19% - 21%
Implement 74 – 93 12%
Configure/test 74 – 80 10% - 11%
Cluster & HA 66 – 104 11% - 12%
Backup 44 – 108 10%
Tune 89 – 98 9% - 10%
Management 67 – 110 9 – 10%
Typical IT Project Time and Budget
From a commissioned study conducted by Forrester Consulting on behalf of IBM
Design/Deploy Manage/Maintain
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What if :
IBM could deliver and deploy the core framework in days• By deploying solutions via app store patterns• Versus install, configure, integrate, optimize, …
• Accelerate time to value
Customer has architecture built from a set of reusable, re-deployable technology Lego’s• Providing the flexibility to add / change / grow as citizens and/or partners demand
• Agility and flexibility
Customer was able to harden this framework to ensure consistency between dev – test – stage - prod • Virtually eliminating surprises in production
• Sustainability and repeatability
Customer didn’t have to become technology experts, rather business process creation experts• If you can deploy a calculator to your iPad, you can deploy BPM on the Appliance
• Simplification
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Defined PatternsServices
ComposableServices
BusinessServices
InfrastructureServices
A True Composable Business Requires Multiple Services
SaaSSaaS
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A True Composable Business Requires Multiple Services
Born on the cloud
EnterpriseApplications
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IBM PureApplication System provides savings across the IT lifecycle“Speed is the new currency”
Deployment Fully assembled and configured Pre-installed management software Fast pattern-based deployment
Incident/capacity management Centrally monitor and resolve issues Automatic scaling
Asset management Track license usage of products
Security management Centralized access control
Change management Visibility into relationships of virtual
images in a workload Automatically apply changes to
desired virtual servers
How does PureApplication System do this?9612 hrs
2302 hrs
0
10000
5000
Do It Yourself PureApplication System
Labor Hours Spent*
Deployment
Change Management
Security Management
Asset Management
Incident/capacity Mgmt
76% Savings
*Note: Do It yourself used 9 blades (144 cores). IBM PureApplication System used 3 nodes (96 cores). Each system has the capacity to run 72 workloads where each workload can sustain a peak throughput of 1720 page elements per second.
This is an IBM internal estimated labor study based on modeling customer data on IBM hardware and software solutions and on competitor converged solutions designed to replicate typical IBM customer usage in the marketplace. It is not a benchmark. As such, customer applications, differences in stack deployed and other systems variations may produce different results and may vary based on actual configuration, applications, specific queries and other variables in a production environment based on published standard labor rates for IT staff.
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How does SaaS help?
Improved TCO due to lower infrastructure cost Flexible subscription pricing
Minimal upfront investment
Continuous delivery of new capabilities allows rapid innovation and access to immediate code fixes
Lower risk with try & buy approach
Accelerates evaluations and decision making
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Remember these?
The speed of destructive innovation is accelerating
SaaS has already changed the game
Don’t be a footnote in the history of computing.
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New VendorsDouble Digit Growth
Traditional VendorsSingle Digit, Flat, Negative Growth
Fiberlink
New Relic
ServiceNow
Splunk
SolarWinds
Commvault
VMWare
CA HP
BMC Symmatec
EMCIBM C&SIBMC
Revenue ($B)
YTY
Gro
wth
(‘11
-’12)
Total revenue 1.3B (without VMWare)
Traditional competitors have high revenue, but are losing share to a new breed of competitors .. the Digital Engagers
“While the Old Lions fight, the Hyenas are stealing the food”C&SI on the April 2013 TT Study
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SaaS adoption is growing• Software as a Service has skyrocketed over the last few years• Today's business imperatives demands technology that leverages innovations• We have delivered a new platform for engaging IBM’s SaaS-enabled offerings.
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Client CentricEngagement
Cycle
ExploreSample product instance
preloaded with demonstration data
ExploreSample product instance
preloaded with demonstration data
TryGet your own instance of the product that you can try with your own data
TryGet your own instance of the product that you can try with your own data
Use (Buy)Traditional IBM Sales
SaaSChannel
Use (Buy)Traditional IBM Sales
SaaSChannel
SupportOnline, Chat, Community,
Talk, Watson
SupportOnline, Chat, Community,
Talk, Watson
LearnLearn, Design and Consult on value driven capabilities
IBM is delivering WW Online
LearnLearn, Design and Consult on value driven capabilities
IBM is delivering WW Online
ExtendLink, Analyize, Report,
Orchestrate, Optimize via dynamic Integration
ExtendLink, Analyize, Report,
Orchestrate, Optimize via dynamic Integration
Engage with practitioners digitally through web, social media and video
Licensing models to address shifts to lower barrier to entry, consumption based purchasing and ‘try and buy’
Continuous delivery to rapidly respond and scale to client needs
Social collaboration, insight and analytics as new mechanisms to provide expertise(Watson inside)
Advancing IBM to Service Management 3.0
Composition APIsto link, extend and orchestrate services amongst legacy, new, and hybrid systems
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What is IBM Service Engage? A New Way to experience and acquire our on-premise and SaaS solutions
for engaging clients and partner via live guided demos available 24x7
to POC your clients … start a POC in 30 minutes, anytime, anywhere your client wants
to extend what your clients are already buying at lower total cost via Software as a Service
to accelerate the close
IBM Service EngageLearn • Explore • Try • Use (Buy) • Extend • Support
IBM Service EngageLearn • Explore • Try • Use (Buy) • Extend • Support
New way….
IBM Service Engage
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IBM Service Engage Solutions
Find root cause of application problems
90% faster
Improve cost functional processes, requests,
and maintenance planning by 40%
Reduce labor costs by 90%
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Industry leaders are 92% more likely to use asset management analytics
IBM Service Engage Solutions
Reduces excess inventory and ensures parts
availability for mission-critical assets by
harnessing the inventory management capabilities of Maximo Asset Management and the analytical power of
IBM SPSS.
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Next Steps
1. Join me in the Social Café to continue the conversation.
2. Meet our Specialists at the Cloud Table in the Solution Showcase.
3. Find more information at http://www-01.ibm.com/software/tivoli/?lnk=mprSO-tivo-usen
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IBM Performance Management for Applications and Infrastructure solutions increases your end user satisfaction with complete visibility and control of your application environment.
Pain points How this offering helps User scenarios Typical buyers
• Increasing maintenance costs
• No end-to-end view of app health
• Missed SLAs
• Find the root cause of application problems 90% faster
• Improve the availability of critical applications by 60-90% with integrated analytics
• Reduce the length of outages and slowdowns by 50%
•Quickly identify and resolve a bottleneck
• Ensure SLA and KPI compliance
•Manage all types of workloads
• Prevent outages
• IT Ops Managers - reduce infrastructure costs
• LOB Owner - accelerate delivery of new services
• App Developers - monitor their apps
List Price Competitive Differentiators Questions to ask
• IBM Monitoring (SaaS): $25/month per Average Managed Virtual Server (aMVS)
• IBM Application Diagnostics (SaaS): $120/ month per Average Managed Virtual Server (aMVS)
• Flexible delivery options allow for SaaS, on premise, and hybrid environments
• Integrated analytics for faster root cause analysis and problem resolution
• Broad application coverage from new cloud based languages to traditional enterprise workloads
• Do you have apps moving to – or already in – the Cloud, with connections to your data center?
• Are your app teams decentralizing and gaining independence?
• Are your app lines of business moving to an OpEx model?
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IBM Workload Automation (SaaS) drives the execution of Business Processes with the lowest TCO across all environments, servers and applications. It offers speed of automation, power to business and precise governance.
Pain points How this offering helps User scenarios Typical buyers
• Need to reduce expenses
• No resources to build an automation infrastructure
• Lack of technical know-how hinders automation
• 30% reduction in execution time of business workloads, resulting in millions of $$$ in savings
• 90% reduction in labor costs and total control of business SLAs
• 35% savings in operation costs and improved staff productivity to support additional workloads
• Get time back by automating your processes - Automate BI & ERP processes in minutes
• Manage your business SLA’s - Run and monitor workloads wherever you are
• IT Ops managers - wants to move to a service-centric delivery organization
• LOB owner – wants low cost solution with immediate benefits, ease of use and scalability to grow with evolving needs.
List Price Competitive Differentiators Questions to ask
Starts at $70 per 1,000 executed jobs per month
Price decrease for larger volumes of jobs
1k - 25k jobs each 1k job pack is priced at $70/mth
25k - 250k jobs each 1k job pack is priced at $56/mth
250k – 1,000k jobs each 1k job pack is priced at $35/mth
> 1,000k jobs each 1k job pack is priced at $21/mth
• Get started with ZERO investment. Competitors force you to make an upfront commitment.
• Faster TTV with a ready-to-use application catalog. Competitors need your to reach out to business partners to get started.
• Powerful and Proven solution : Industry leading technology which offer robust optimization mechanisms to support changing business needs while still maintaining SLAs.
• IBM’s strong commitment to Open Standards - With OSLC, workload automation is easily integrated with other OSLC-enabled applications like monitoring, ticketing, etc.
• IT Ops manager: Are you spending too much time & money, building and managing your workload management infrastructure?
• LOB owner: Is it taking too much time to automate your processes, and monitor them for critical SLAs?
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SmartCloud Control Desk (SaaS) delivers a unified service management solution to simplify business processes, maximize asset efficiency, and improve the end user experience
Pain points How this offering helps User scenarios Typical buyers
• Fragmented service management processes are causing inefficiency
• No visibility of assets across the enterprise
• Hard to manage multiple apps on different platforms
• Reduce IT change related outages by 70%
• Improve first call resolution rate by 25%
• Reduce request response times by 60%
• Lower help desk calls by 80% through end user empowerment and service request automation
• Combine processes controls with runbooks
• Synch data across unified domains
• Get a working environment up and running in hours, not weeks
• LOB owner: Low cost, quick TTV, ease of use and scalability to grow with evolving needs.
• IT Manager: Reduce infrastrasture costs
List Price Competitive differentiators Questions to ask
• $99/month per Authorized User
• $297/month per Concurrent User
Consistency – Single offering for both Enterprise & SMB, and SaaS and On-Premise
Capability –Provide deeper functionality than competition
Integration - With a wide range of IB/3rd party products to satisfy any clients needs
• Do you want a complete, integrated service management solution that includes configuration, change, asset, and/or license management?
• Is IT infrastructure support a core competency or an ongoing headache?
• Are your lines of business moving to a SaaS and/or OpEx model?
Entitlement Price
• $49/month per Authorized User
• In addition to avg S&S cost of $26//month per Authorized User
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Maximo Asset Management (SaaS) reduces the complexity and cost of managing and maintaining enterprise assets, while increasing efficiency in work scheduling and inventory levels
Pain points How this offering helps
User scenarios Typical buyers
Lack of visibility and control over critical assets that affect compliance and business performance
Inefficient allocation of work resources
Costly asset failures causing increased asset downtime
Improve workforce utilization by 10% or more
Reduce inventory carrying costs by 20% or more
Increase Asset Utilitization by 3% - 5%
Consolidated asset and work management system
Robust planning and scheduling of work based on criticality of job task and availability of resources
Detailed inventory planning to react quickly to changing demand patterns
VP of Engineering, CIO, Maintenance Directors, Asset Reliability Officers
List Price Competitive differentiators Questions to ask
$159/month per Authorized Use
Scheduler add-on: $40/month for Authorized User license only
$477/month per Concurrent User
Market leading capabilities in a SaaS model, You no longer have to settle for ‘good enough’
Scheduling & Mobility as integral part of Maximo EAM solution
Support all your enterprise assets, including operational technology
Ability to transition to 'on premise' if business requirements change
Do you want a complete, integrated asset management solution that includes configuration, change, asset, and/or license management?
Is IT infrastructure support a core competency or an ongoing headache?
Are your lines of business moving to a SaaS and/or OpEx model?
Do you want the flexibility of being able to move from SaaS to on-premise (or the other way)?
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Maximo Inventory Insight (SaaS) – Pre-configured inventory decision support system delivered as a service.
Pain points How this offering helps User scenarios Typical buyers
Inventory over- and under-stock conditions increase expenses and risk.
Inventory management ties up many resources.
Reduces inventory holding costs by 15-20% in first year.
Increases asset availability and utilization by avoiding parts outages
Automatically generates optimal stock replenishment plan.
Increase asset utilization and productivity
Automatically update Reorder Points in Maximo, at users discretion
Predict over-stock and out-of-stock conditions to generate optimal reorder management.
Identify stagnant inventory
Asset / maintenance / inventory managers
List Price Differentiators Questions to ask
Based on BOTH inventory value AND # users
Inventory value:
Up to $100M - $3500/month
$100M-$500M - $7500/month
Over $500M - $15K/month
# Users
$100 per authorized user per month
Business: Pre-configured, EAM-integrated SaaS-delivered
Technical: Multiple analytics, small data collector, pure add-on
Do you know how much excess inventory your organization has?
How many dollars is your organization tying up in inventory?
Do you know the risk in asset downtime due to potential out-of-stock conditions?
How many people are involved in inventory management?