Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more...
-
Upload
cliff-kinard -
Category
Technology
-
view
103 -
download
0
description
Transcript of Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more...
© 2009 IBM Corporation
Dynamic Infrastructure – Energy EfficiencyHelping Midsize Companies Reduce Cost and Become more Environmentally Responsible
<%savo.user.displayname%>, <%savo.user.title%>
<%Date%>
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Introductions
Company Name and title Contact information
#Introductions_Company1#
#Introductions_Name_1# – #Introductions_Title_1#
#Introductions_Email1#
#Introductions_Phone1#
#Introductions_Company2#
#Introductions_Name_2# – #Introductions_Title_2#
#Introductions_Email2#
#Introductions_Phone2#
phone
phone
phone
phone
phone
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Energy Efficiency Agenda
The Need
The Benefits
Actions– Reduce IT and energy costs– Reduce travel costs– Recycle old hardware and software assets
Solutions from IBM
Getting Started
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Energy efficiency actions present an opportunity to reduce costs and improve productivity
Energy ManagementMeasure and control energy usage.
IT EfficiencyReduce energy costs.
Implement more energy efficient servers and storage.
Increase IT utilization and efficiency.
Improve service with increased flexibility and resilience.
Understand energy consumption.
Produce reports to demonstrate energy savings over time.
Put policies in place to manage and control energy use.
Scale capacity quickly to meet business demand.
Manage server sprawl and update aging infrastructure.
Reduce costs with energy efficient design.
Server Room/Data CenterScale capacity and reduce costs.
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
The need for an energy efficient infrastructure is clear:
The economic benefits are real:
Reduce costs and improve efficiency.
Manage the environmental impact of physical assets.
Prepare for compliance.
Double IT capacity in the same energy footprint.
Reduce operational and energy costs up to 50%.
Defer capital investments
Impact more than 50% of energy expense.
Leverage tax, utility incentives.
Measure & verify performance.
Cost effectively manage the explosion of information and maintain compliance readiness.
35% 8 in 10 40%IT energy expense is expected to increase 35% in the next five years.
More than 80% of CEOs expect climate change regulation 5 years..
Buildings account for 40% of worldwide energy consumption
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Why should you “green” your IT infrastructure?
Reducing your IT footprint reduces your overall IT costs (less maintenance, management, energy and cooling).
Recycle end-of-life equipment.
Support collaboration technologies to reduce travel costs and environmental impact
Can you afford to wait?
Green IT delivers profound results: Up to 40% reduction in power and cooling Up to 80% reduction in floor space Up to 4x utilization rate increase Avoid new construction
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Questions to ask yourself
Do you have a plan to address your increasing energy costs or usage?
How do you assess energy usage and measure the efficiency of your server room?
Do you envision server sprawl to accommodate new applications?
Is your server room power and cooling infrastructure more than 5 years old?
Can you describe your energy management plan?
Can you keep systems critical to your business up and running during a power drain or surge?
How do you dispose of your old IT assets?
Can you reduce your travel expenses by supporting collaboration technologies?
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Reduce IT and energy costs “Greening” your server room
Green Server Room
Implement virtualization and other innovative technologies
Plan, build and upgrade to energy-efficient
server rooms
Seize control with energy
managementsoftware
IBM offers a comprehensive approach that helps mid-sized businesses develop energy-efficient server rooms: benefits the environment and your budget.
Build energy-efficient and environmentally responsible server rooms.
Virtualize/Simplify your ecosystem.
Manage and control energy usage and costs.
Virtualize/Simplify
Build Manage
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Build
IBM Lab Services Server and Storage Power/Cooling Trends and Data Center Best Practices
IBM Scalable Modular Data Center
IBM BladeCenter® S Express or System x™ family of servers
Power Systems 520 and 550 Express
Using green IT practices saves money and leaves a smaller footprint.
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Virtualize/Simplify
IBM Server Consolidation Efficiency Study
IBM System x BladeCenter Virtualization Solutions
IBM Storage Optimization and Integration Services – Scale out File Services
Power Systems 520 and 550 Express
Today, many systems use 5% to 10% of their capacity. Using IBM’s virtualization technologies, your systems can reach nearly 100% utilization.
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Manage
Active power management software helps you:
Seize control of your power consumption
Reduce or eliminate outages.
Conserve energy.
Control your power usage with IBM software:
IBM Tivoli® Monitoring for Power Management
IBM Systems Director Active Energy Manager™ v3.1
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
3rd Party Servers and Storage
Tivoli SoftwareIBM® Systems Director
and Active Energy Manager
Facility Infrastructure Assets
Facility Infrastructure Assets
Server Room/Data Center Infrastructure Assets
Server Room/Data Center Infrastructure Assets
Measure and control energy useSeize control by integrating IT, server room and building energy consumption
Trending consumption on individual or group level
Establish baseline cost
Retrieve temperature and power information
Better utilization of existing resources
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Measurement actions can significantly improve management of energy consumption and lower costs
Understand where and how energy
is consumed
Gain awareness of power and cooling issues in data center or server room
View actual power usage across multiple platforms in their infrastructure
Determine when to take action to avoid downtime and improve service levels
Utilize accurate trend data to negotiate best utility rates
Utilize power consumption data to manage and cap energy consumed
Control the power consumption by building and
infrastructure component
Save energy without impacting performance
Demonstrate potential areas of energy savings
Manage and control energy usage
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Other IBM offerings
IBM Global Financing
IBM Global Asset Recovery Services
IBM Express Asset Recovery Solution
“To optimize total cost of ownership benefits, companies require a corporate standard disposition strategy.” —Gartner Group
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Business needs:
Reduction in server sprawl
Reduce power usage in server room
IBM solution:
Significant server and storage consolidation onto IBM BladeCenter® systems
Targeted 28 servers for consolidation, including 2 HP servers hosting Devon’s core enterprise application
Results:
Resolved power issues with no additional energy costs
Reduced the number of racks, consoles and network connections in the server room
New server room is easier to manage, more reliable and less susceptible to theft and viruses
Devon Health Services: IBM Green IT success story
“We've already retired enough physical servers that power is no longer an issue.
“We're now able to pursue projects that actually generate revenue for the business—and we're handling them more efficiently.
“The IBM solution has really accelerated our value to the business.”
— Justin Hawley, Director of Information Technology, Devon Health
Services, Inc.
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Bryant University – USA
Client requirements: Decentralized IT infrastructure was costly, inefficient and increasingly
unable to scale to growing demands for IT services
Needed to consolidate to an enterprise-class data center
Solution: Implemented an IBM Scalable Modular Data Center solution with
advanced InfraStruXure® architecture from IBM Alliance Partner APC
Standardized on IBM BladeCenter® for virtualized Microsoft® Windows® and Linux®
Saves on power and cooling costs; can provision new virtual servers in < 1 day
Benefits: Reduced physical servers from 75 to 40
40 to 50 percent reduction in floor space requirements
Contributed to reduced carbon footprint and reduced power consumption/cooling
“The bulk of the installation was completed within just 4 days. The quality of the engineering work and project management from IBM was outstanding”
— Rich Siedzik, Director of Computer and Telecommunication Services,
Bryant University
“We consulted several vendors and it was clear that IBM had the edge in terms of innovative ideas”
— Art Gloster, Bryant University CIO
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
600
500
400
300
200
100
0
2000 2001 2002 2003 2004 2005
IBM has been committed to protecting the environment for more than three decades.
From 1990 through 2006, IBM saved 4.5 billion kwh of electricity, avoided nearly 3 million metric tons of CO2 emissions and saved more than $290M.
IBM is the first semi-conductor company to set a numerical targetfor PFC emissions reduction.
Environmental responsibility is a core IBM value
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Did you know…?
IBM processes approx. 40,000 disposed machines per week in centers around the world.
Less than 1% of IBM-processed IT assets are sent to the landfill.
IBM annually invests more than $100M to support refurbishing and recycling.
IBM has reused or resold nearly 87% of the IT assets returned to its Remanufacturing Centers.
Computerworld chose IBM as the top Green IT Company for 2008.
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Why should you choose IBM?
30-plus years of IT innovation
Willingness to invest
Proven track record
16 years of practicing what we preach
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
What can you do?
Start now
Realize immediate and long term cost savings with energy efficiency actions
Expand computing capacity quickly while cutting costs
IBM can help
IBM clients who adopt IT and energy efficiency initiatives consistently meet or exceed their cost savings and energy efficiency goals
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Green IT: www.ibm.com/green
For CIOs: www.ibm.com/cio
For facilities managers: www.ibm.com/services/siteandfacilities
Green IT for mid market organizations: https://www-304.ibm.com/jct03004c/businesscenter/smb/us/en/solutionsgreen
Leverage IBM’s experience to help
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Considerations and dependencies
<%Considerations.Dependencies%>
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
<%Custom_Slide_Title%>
<%Custom.Slide.Bullets%>
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Next steps
<%Next.Steps%>
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Thank you for your time today.
For more information:
<%User.AdditionalInfo%>
Contact:
<%savo.user.displayname%>
<%savo.user.workphone%>
<%savo.user.email%>
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Trademarks and notes
IBM Corporation 2009
IBM, the IBM logo and ibm.com are registered trademarks, and other company, product or service names may be trademarks or service marks of International Business Machines Corporation in the United States, other countries, or both. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml
Adobe, the Adobe logo, PostScript, the PostScript logo, Cell Broadband Engine, Intel, the Intel logo, Intel Inside, the Intel Inside logo, Intel Centrino, the Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, Itanium, IT Infrastructure Library, ITIL, Java and all Java-based trademarks, Linux, Microsoft, Windows, Windows NT, the Windows logo, and UNIX are trademarks or service marks of others as described under “Special attributions” at: http://www.ibm.com/legal/copytrade.shtml#section-special
Other company, product and service names may be trademarks or service marks of others.
References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates.
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Evaluation
Your feedback is extremely valuable to us. It is the only way we can improve our service to you.
On a scale of 1 – 5, where 5 is “extremely well” and 1 is “not at all,”…
[_____] How well did this presentation answer your questions?
– What was most helpful? _____________________________________________________________________________________________________________________________________________________________________________________________________________________
– What was missing? _____________________________________________________________________________________________________________________________________________________________________________________________________________________
[_____] How much will this presentation contribute to your buying decision?
– Presenter’s name: ________________________________________________________
Do you have any suggestions for improving this presentation?
______________________________________________________________________________________________________________________________________________________________________________
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
PRESENTER GUIDANCE: Financing scenarios and advice. DELETE BEFORE PRESENTING (1 of 4)
Slide notes (best practices)
• Select from IBM Global Financing slides listed below (available in SAM).
• Contact Theresa Marshall/Rochester/IBM if you have questions or need assistance in developing a customized financing solution to meet your customer’s needs.
Financing category Target audience Financing scenario
1. Always select this slide:
IGF overview Companies of all sizes in all industries; LOB managers, IT managers, CFOs
IT and non-IT, all brands of hardware and software, and IBM services
2. Then add one of the following optional slides:
IBM Financing Advantage: More important than ever Affordable, Simple, Accessible, Complete
Small and medium businesses;otherwise, same as IGF overview All brands of hardware and software, and IBM services
Project Financing Same as IGF overview Financing of IT solutions from hardware, software & services
PC Leasing Same as IGF overview Personal computers—all brands
Software Same as IGF overview Software—all brands
Asset Recovery Solutions Same as IGF overview IBM and non-IBM PC assets, printers and displays
Commercial Financing SMB & larger accounts, with focus on revenue greater than $20 million
Provides working capital and supply chain financing for IBM clients and Business Partners
IBM Certified Pre-owned Used Equipment Same as IGF overview cost-effective alternative to new when matching, upgrading
or adding to your present IT portfolio
Vendor Financing -overview Potential new vendor alliances Financing options that potential vendor alliances can extend to their customers and partners
Vendor Financing Potential new vendors alliances Financing options that potential vendor alliances can extend to their customers and partners
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
PRESENTER GUIDANCE: Financing scenarios and advice. DELETE BEFORE PRESENTING (2 of 4)
Financing category Target audience Financing scenario
Customer Centre Same as IGF overview
Provides customers who lease their assets through IBM with a secure, online lease management tool for tracking and managing all leases associated with those assets.
Green Data Center Same as IGF overview
Financing of single components or an entire project covering hardware, software and services from IBM and other vendors; environmentally friendly asset disposal of retired IT equipment; and IBM Certified Used Equipment™.
Financing your green initiatives Same as IGF overview
Offers clients a complete portfolio of financial services and rates our competitors can’t match.
Global Asset Recovery Services (GARS)
Same as IGF overview
Offers comprehensive services for used hardware, including resale and disposal.
Hardware Financing Same as IGF overview
Helps clients lower the cost of technology acquisition, better manage technology acquisition process and facilitate management of technology assets throughout the lifecycle.
IBM Global Financing benefits throughout the IT lifecycle
Same as IGF overview
A 3-year technology refresh cycle based on leasing can ensure that you have upgrade flexibility to meet both your growing IT & business demands without impacting your current budget.
Affordable, non-disruptive migrations to the latest IBM technology
Same as IGF overview
Clients can apply their current system’s fair market value to an “Exchange” POWER™ System server or System z™ Hybrid.
Slide notes (best practices)
– Select from IBM Global Financing slides listed below (available in SAM).
– Contact Theresa Marshall/Rochester/IBM if you have questions or need assistance in developing a customized financing
solution to meet your customer’s needs.
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
PRESENTER GUIDANCE: Financing scenarios and advice. DELETE BEFORE PRESENTING (3 of 4)
Slide notes (best practices)
• Select from IBM Global Financing slides listed below (available in SAM).
• Contact Theresa Marshall/Rochester/IBM if you have questions or need assistance in developing a customized financing solution to meet your customer’s needs.
Financing category Target audience Financing scenario
Funding your migration to IBM Same as IGF overview
Clients can take advantage of IBM Global Financing capital to fund their migration to IBM technology.
Sale-leaseback Same as IGF overview
Clients can sell their existing equipment and transfer title of ownership to IBM Global Financing at the fair market value price and then lease the equipment back at regular, low monthly payments over a flexible payment period with sale leaseback.
IBM Global Financing mid-lease restructuring for upgrades can accelerate budget approvals for clients considering a move to new equipment
Same as IGF overview
Leasing upgrades leverage client's initial IBM investment, eliminate obsolescence risk and drive lower total cost of ownership.
Mid-lease upgrade example: Significant price performance improvement with little or no impact to existing budget
Same as IGF overview
Existing leasing clients upgrading to POWER6 can in many cases maintain their monthly payments (with little or no change) and obtain the latest POWER6 technology.
IBM Global Financing – Strength in numbers
Same as IGF overview
Use the financing option as a trigger to close new engagements when financing services and solutions to help to overcome a client’s budget constraints.
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
PRESENTER GUIDANCE: Financing scenarios and advice. DELETE BEFORE PRESENTING (4 of 4)
Slide notes (best practices)
• Select from IBM Global Financing slides listed below (available in SAM).
• Contact Theresa Marshall/Rochester/IBM if you have questions or need assistance in developing a customized financing solution to meet your customer’s needs.
Financing category Target audience Financing scenario
Enterprise IT Financing Facility Same as IGF overview
An IT Facility is a multi-year agreement that consolidates multiple invoices, smoothes the cost of IT investments and provides for a committed global credit line.
Optimize Total Cost of Ownership with an IT technology lifecycle strategy
Same as IGF overview
A technology lifecycle strategy may include energy-efficiency aspects, business transformation events, IT optimization or consolidation projects or just a technology refresh to reduce costs.
IBM Global Financing helps clients to… Same as IGF overview
IBM Global Financing helps clients to optimize Total Cost of Ownership throughout the entire technology lifecycle.
Leasing helps… Same as IGF overview The benefits to clients of leasing with IBM Global Financing.
IBM Open Infrastructure Offerings Same as IGF overview
For enterprise clients who are partnering with IBM on large infrastructure projects, IBM can assemble an Open Infrastructure Offering (OIO) that combines hardware, software, professional services, maintenance, financing and disaster recovery into a single customized agreement
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
IBM Global Financing at-a-glance
Client Financing CommercialFinancing
Provides working capital and supply chain financing for
IBM Clients and Business Partners
Global AssetRecovery Services
Offers comprehensive services for used
IT assets, including resale, buyback and
recycling
IBM and non-IBM: Hardware Software Services
IBM Global Financing
Total Solution Approach
Provides financing (leases and loans) for the acquisition of
solutions and technology
Experts in financing technology and solutions
Focuses primarily on solution and technology financing Provides single-source financing that helps clients acquire business services and technology services, hardware and software ― IBM and non-IBM Flexible financing with competitive rates to businesses of all sizes and across all industries Complete financial plans for the lifecycle of the investment
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
IBM Financing Advantage: Affordable, Simple, Accessible, Complete
Access to funding is a major impediment to realizing a solution’s post-implementation benefits.
Costs are heaviest at the front end of a project, while benefits do not fully accrue until a project is well underway.
This makes financial justification difficult.With IBM Financing Advantage, you can overcome this
challenge.
Financing allows costs and benefits to track more closely. IBM Financing Advantage can help to reduce up-front costs
and structure your monthly payments to anticipated benefits.
This can help ease the decision to invest in solutions that have longer payback periods.
Clients are feeling pressure to do more with less and get more value from their infrastructure investments. A smarter funding strategy can help you meet budget and cash flow objectives in a capital-constrained environment.
IBM Financing Advantage, from IBM Global Financing, offers credit qualified mid-sized companies access to affordable leases and loans for a complete IT solution for both IBM and non-IBM hardware, software and services.
Financing helps clients meet budget and cash flow objectives in a capital-constrained environment by:
Providing predictable monthly paymentsPreserving cash flow for higher-yield investments Allowing more acquisitions within current budget Accelerating implementation of new technology Matching payments to business needs
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
IBM Project FinancingTM
Client Benefits
Turns up-front costs into affordable and predictable payments
Aligns payments with anticipated benefits
Speeds project approval, and preserves cash flow and credit lines
Develops a tailored funding solution through our comprehensive financing facility for:
– All project elements and phases
– Both IBM and non-IBM hardware, software and services
Customized deal structures targeted at business benefits
– Self-funding project based on anticipated benefits
– Payments timed with project milestones
Customized, all-inclusive financial package for infrastructure solutions, services and business transformation projects
Cost of the project
Benefits of using the new solution (ROI)
$
IBM Global Financing payments
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
IBM Global Financing:The Solution to Your PC Lifecycle Management Strategy
IBM Global Financing has developed a broad portfolio of programs and tools to assist you in navigating the four phases of the PC Lifecycle… From planning to disposal:
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Leverage your project budget and help simplify solution acquisition with IBM single-source software financing.
IBM Global Financing software financing offers you:
100 percent “soft” financing
– No hardware is required, unlike with many other vendors.
Customized payment options designed to provide value
– Develop the IT solutions you need today, with more budget buying power.
– Match your software costs to benefits.
– Preserve cash for other strategic investments.
Simplified software solution acquisition with single-source financing
Learn more at: www.ibm.com/financing
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Global Asset Recovery Services can help you dispose of unwanted IT assets--easily and affordably through IBM Asset Recovery Solutions!
Help determine competitive market value for marketable assets through our buyback offering
Facilitate environmentally friendly disposal for non-marketable assets
Can help provide protection of confidential data stored on hard drives through our Disk Overwrite services
Complete logistical services including packing and transportation
Available for IBM and non-IBM personal computer (PC) systems and accessories in countries that sell IBM and Lenovo systems
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Commercial Financing
Why IBM Global FinancingWhile credit is tight everywhere else, IBM Global Financing can provide your company with working capital and channel financing to support day-to-day operations or grow your business. Our innovative funding can help your business stay afloat, maintain a healthy balance sheet and minimize risk during today’s economic environment.
What we offer Inventory Financing — Obtain up to 90-days worth of interest-free financing for acquiring products from
your suppliers. We offer lines of credit with over 100 suppliers whose products and services cover the gamut in technology and information technology.
– With Channel financing, you get relief from the cash crunch and an overall expansion of business credit, potentially yielding significantly greater volumes and profits.
Receivables Financing — Open up cash flow by borrowing against available collateral such as accounts receivable and inventory. Choose the offering that best suits your company’s needs and financial strategy:
– Revolving Lines of Credit - Asset-based loans that use accounts receivable and inventory to secure cash advances to meet your working capital needs
– Receivables Purchase - Get immediate cash from IBM Global Financing by selling your receivables from pre-qualified clients
– Large Sale Receivables Financing - Obtain bridge funding to help you accommodate larger orders-for up to 100 percent of the order purchase amount and with no interest charges for up to 30 days. Structure your repayment terms to match your collection of the receivables `
Learn more at: ibm.com/financing/us/comfinGFP03051-USEN-00
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
IBM Certified Pre-owned Equipment is the cost-effective alternative to new when matching, upgrading or adding to your present IT portfolio
Fully refurbished and tested to IBM standards IBM maintenance qualified Current and prior-level technology solutions at a fraction of the original price Selected models include 1 or 3 years’ maintenance 90-day satisfaction guarantee with IBM maintenance contract (system may
be replaced or refunded at IBM’s discretion if equipment is unsatisfactory) Availability of selected IBM Pre-owned Equipment which is provided with the
same warranty as new equipment and is priced slightly higher than IBM Certified Pre-owned Equipment
Acquisition: Less stringent credit requirements for purchase or financing of IBM Certified Pre-owned Equipment
Short-term rentals are available for IBM Certified Pre-owned Equipment Wide range of equipment available off the shelf or custom-configured,
including:– Intel®-based servers: Netfinity®, xSeries® and System xTM
– Midrange servers: AS/400®, iSeries® and System iTM – UNIX® servers: RS/6000®, pSeries® and System pTM – Mainframe systems: S/390®, zSeries® and System zTM – Storage: disk and tape systems– Printers and networking hardware
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Vendor Financing - Overview
IBM Global Financing has been expanding its reach by developing key alliances with several vendors
– These alliances provide the vendors with an array of financing options that they can then extend to their customers and partners
– This gives customers more funding options, and allows them to turn large up-front costs into an affordable and predictable monthly payment
IBM Global Financing has signed agreements with the following vendors:
– APC-MGE
– Motorola Enterprise Mobility (previously Symbol Technologies)
– Lenovo
– Juniper Networks
– InfoPrint Solutions Company
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Vendor Financing
Target Audience
Pain Points Benefits of IBM Global Financing
Vendor customers
Budget constraints
Difficult to accurately calculate and manage technology spend
Obsolete equipment
• Acquire one-stop financing for hardware, software and services, including IBM or any other IT vendor
• Turn large up-front costs into an affordable and predictable monthly payment
• Match costs to project milestones
• Minimize the risk of technology obsolescence
• Manage all equipment recycling, disposal and data cleansing
• Manage the transition to next generation IT solutions as and when business needs dictate
• Preserve cash and credit lines for strategic investments
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Customer CentreManage your IT leases online to simplify administration and reduce costs
If your enterprise leases assets through IBM Global Financing, you can take advantage of Customer Centre, our secure, online lease management tool for tracking and managing all leases associated with those assets.
We can help you manage your leased assets easily with:
– Secure access to your detailed lease information
– Comprehensive search and online reporting capabilities
– Convenient, customizable ability to download asset information
– Capability to query, search and download reports for invoices in some countries
– Additional capability for U.S. clients• Access to review and sign delivery confirmation documents
• Ability to review options and make end of lease decisions
• Ability to request and track progress of transportation request
Learn more at: ibm.com/financing/us/hardware/tools GFP03031-USEN-00
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Green Data Center – funding and asset disposal is part of the strategy
Tailored to the five essential elements of a green data center, IBM Global Financing provides clients across the world with a holistic approach that includes competitive, customized financing of single components or an entire project covering hardware, software and services from IBM and other vendors; environmentally friendly asset disposal of retired IT equipment; and IBM Certified Pre-owned Equipment.
We can help clients:
– Reduce total cost of ownership of new IBM hardware by leasing vs. purchasing
– Establish a technology refresh cycle that can ensure price/performance optimization while helping to manage operational costs and eliminating technology obsolescence
– Finance services and/or software projects in any of the five elements
– Match cost to benefits (improved ROI payback) by consolidating complex, multivendor virtualization or other green projects with large up-front costs into a single monthly payment
– Dispose of retired IT equipment in a safe and secure way and in compliance with environmental laws and regulations
– Reuse equipment by offering used when new is not an option
Green Data Center
DiagnoseGet the facts to understand your energy use and your opportunities for improvement
Measure and Manage
Seize control with energymanagementsoftware
Cool Use innovativecooling solutions
VirtualizeImplement virtualization and other innovative technologies
BuildPlan, build and upgrade to energy-efficient data centers
GFP03032-USEN-00
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Financing your green initiatives
As the world’s largest IT financier, IBM offers a complete portfolio of financial services and rates our competitors can’t match.
By providing a holistic view, we can provide a single financing solution to cover the entire scope of an IT project, including hardware, software and services from IBM and other vendors.
Our leases lower the total cost of IT ownership and allow clients to upgrade technology within the lifecycle of their leases.
Among our offerings:– Financing of hardware, software and services from IBM and
other vendors, migration and upgrades
– IBM Project Financing (all-inclusive financial package for services, infrastructure solutions and business transformation projects)
GFP03033-USEN-00
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
IBM Global Asset Recovery Services (GARS) High Level Process Flow
Returning assetsParts and machines
Warehouse andFulfillmentProcessing/refurbishment of machines
Harvesting of parts
Bulk scrap
Machines and PartsPackaged for sale
Excess and obsolete parts
Scrap vendors
IBM Sales ChannelsIBM sales force, Business Partners and ibm.com
IBM Global Asset Recovery Services Facts
In 2009: GARS remanufacturing operations processed
over 1 million machines with a weight of over 27.8 million pounds.
This equated to over 19.4 thousand machines (or 536,180 pounds) per week.
90.33% of the returned machines were from end of lease, and 9.77% were ARS-related.
90.2% of the units processed were readied for resale and reuse, while the other 9.8% were sent for scrapping.
From 2003 through year end 2009: GARS remanufacturing operations have
processed over 7.4 million returned machines (units), an average of 20,488 machines per week.
The weight of returned machines is now over 109.5 thousand metric tons (or over 241 million pounds).
Since 2004, GARS remanufacturing centers have processed over 1.5 million laptops. If these laptops were stacked on top of each other, the pile would extend over 31 miles into the atmosphere (a trans-oceanic jetliner flies approximately 7 miles high by comparison).
GFP03020-USEN-00
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Hardware Financing
Increases buying power; reduces up-front costs into predictable monthly payments.
Lowers acquisition costs over purchase, eliminates obsolescence risk and drives lower total cost of ownership.
Helps establish a flexible technology refresh cycle, ensuring that capacity needs are met while controlling costs.
At mid-lease, the refinancing of the remaining obligation over a new term can lower the payment and create budget room for a new payment for the upgrade.
For clients starting or enhancing their green strategy, leasing ensures that they can obtain the latest IBM advances in power, cooling and space at an affordable cost.
IBM assumes responsibility for environmentally compliant asset disposal at end of lease.
Available Options
Fair Market Value Lease (FMV)
FinancedAmount
$
36 Months
Payments
Residual Value
Estimates hardware value at end of lease You can return the equipment at end of lease Provides lowest monthly payment
Full Payout Lease (FPO)
FinancedAmount
$
36 Months
Payments
$1 Buyout
Nominal end of lease purchase option For clients with longer term use expectations and
requirement to pay over time
GFP03035-USEN-00
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
* For illustration purposes; represents a 32-way POWER6 595 standard server; best credit client: FMV 36-month lease. Actual financing rates based on client’s credit rating, financing terms, offering type, equipment type and options. Other restrictions may apply.
IBM Global Financing benefits throughout the IT lifecycle
Base lease – 36 months
Month 18 of original lease
18-month point Technology upgrade Extend base lease with
upgrade for 36 months
New 36-month lease with upgrade
End of lease New machine and lease
or Renew, extend, return
machine
IT Acquisition$1,500,000
$1,000,000
$500,000
$0POWER6™ 595 Purchase POWER6 595 Lease
PV of payments
16% savings over purchase
Lower cost of technology acquisition Minimized obsolescence risk
Technology Upgrades
Lease Term (months)12 24 36 48
POWER5+™ 32W
Initial 36-month Lease
Technology Upgrade
POWER6 595 32W
New Base Lease36 months
$46,314/month* $44,133/month*
New monthly payment is 5%
lower than original lease payment
Upgrade for little or no change in monthly payment Optimize price performance improvements Obtain latest power, cooling and space advances
Asset Disposal
Minimize data disposal risks Minimize environmental risks Minimize disposal costs
GFP03036-USEN-00
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Affordable, non-disruptive migrations to the latest IBM technology
Key client benefits Affordable, side-by-side non-disruptive migration. Minimized termination charges on leased base
equipment with early replacements. Full 12-month warranty. Offers current system’s fair market value to an
Power™ Exchange server or System z® hybrid. In some cases, the current server may be purchased from the client.
Client can use both servers for up to 60 days to perform side-by-side installation and testing.
Hybrids/migrations: How they work
Client
IBM server on IBM Global Financing lease or client owned to start
1Order new server
from IBM
IBM Power Server
IBM Global Financing GARS
2Builds new IBM
server with upgrade installed by IBM
3
4Client returns used
asset once migration is completed
GFP03038-USEN-00
Summary Available through IBM Systems and Technology group for:
– System z and mid-range/high-end Power servers.– clients who currently own or lease their IBM equipment
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Funding your migration to IBM
Take advantage of IBM Global Financing capital to fund your migration to IBM technology
Competitive low rates with flexible terms and friendly contract terms and conditions
– affordable, fixed-rate financing with no restrictive covenants
Total solution financing of IBM and non-IBM hardware, software and services
– one financing provider, one contract, one monthly payment and IT expertise to manage your ongoing project costs
Customized financing structures to meet any budget or project ROI requirement
– innovative deferrals and step structures that can help you mitigate up-front costs
Asset buyback and disposal capabilities to simplify the migration process and potentially provide you value on your older equipment
– Eliminates compliance risk by leveraging IBM expertise in applicable local and state environmental disposal regulations
– IBM can buy back remarketable equipment which can help you reduce migration costs
Why IBM Global Financing? Worldwide asset base of nearly US$38 billion
and more than 125,000 clients in over 50 countries
Nearly two times the IT financing volume of #2 Dell Financial Services and three times the volume of #3 HP Financial Services
Focuses primarily on solution and technology financing
Provides single-source financing to help clients acquire business and technology services, hardware and software – IBM and non-IBM
Flexible financing with competitive rates to businesses of all sizes and across all industries
Proven partner across the lifecycle of IT investments, from acquisition through disposition
IBM Global Financing processes about 40,000 returned machines, or 1.8 million pounds, per week across the world and recycles 85% of the assets
Learn more at: ibm.com/financing/us/migration/overview.htmlGFP03039-USEN-00
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Sale-leaseback
Client Benefits Clients receive cash in exchange for IT assets to fund higher-yield investments or pay off debt
Return on Assets (ROA) is improved by reducing the value of book assets
Debt Ratio (Total Debt/Total Assets) is improved by reducing the value of book assets and also by potentially paying off debt with the cash infusion
Reduces IT expenses over the long term: A 20% reduction in IT operations cost increases new applications development budgets by 80%, according to Gartner
Help to reduce depreciation expense along with the value of book assets
Protect against shorter technological life than originally anticipated
Establish a regular technology refresh cycle through leasing
IBM Global Financing bears the responsibility to remove/dispose of assets at end of lease
Client sells existing IT equipment, transfers title of ownership to IBM Global Financing at fair market value
Client leases the equipment back at low monthly payments over a flexible payment period
Cash infusion when a client sells their existing IT assets
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
IBM Global Financing mid-lease restructuring for upgrades can accelerate budget approvals for clients considering a move to new equipment
Establish base lease 36 months
Month 18 of original lease
18-month point Technology upgrade Extend base lease with
upgrade for 36 months
New 36-month lease with upgrade
End of lease New machine and lease or, Renew, extend, return
machine
Month 18 of new lease
18-month point Technology upgrade Extend base lease with
upgrade for 36 months
Leasing upgrades leverage your initial IBM investment, eliminate obsolescence risk and drive lower total cost of ownership
Financing can help establish a flexible technology refresh cycle, ensuring that capacity needs are met while controlling costs
At mid-lease, the refinancing of the remaining obligation over a new term can lower the payment and create budget room for a new payment for the upgrade
For clients starting or enhancing their green strategy, leasing upgrades ensure that they obtain the latest IBM advances in power, cooling and space advances at an affordable cost, and IBM assumes responsibility for environmentally compliant asset disposal at end of lease
GFP03044-USEN-00
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Mid-lease upgrade example: Significant price performance improvement with little or no impact to existing budget
Lease Term (months)
12 24 36 48
POWER6 595 32W
Technology Upgrade
New Base Lease36 months
4.2 and 5.0GHz options POWER6™ 595 can provide up to 80% more rPerf performance than POWER5™ 590/595 servers
New monthly payment is 5% lower than original lease payment
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
POWER6Upgrade
Original Asset Value
Remaining Principal
New ServerUpgrade
New Server Lease
Principal Value
POWER5+ Base and POWER6
Upgrade
POWER5+ 595at 20 months
POWER5+ 595
POWER5+™ 32W
Initial 36-month Lease
Improve performance by 80%, reduce monthly payment by 5%
* For illustration purposes; represents a 32-way POWER6 595 standard server; best credit client: FMV 36-month lease. Actual financing rates based on client’s credit rating, financing terms, offering type, equipment type and options. Other restrictions may apply.
$44,133/month*$46,314/month*
GFP03045-USEN-00
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
IBM Global Financing – Strength in numbers
Global reach– With 29 years of experience, IBM Global Financing is the world’s largest IT financier, with total assets of
$34.6 billion and 125,000 customers in 55 countries. Clients range from small businesses to more than 80% of the Fortune Global 100 list of companies and nearly 90% of Fortune 500 Most Admired companies.
– In 2009, IBM Global Financing represented about 2.4% of IBM’s external segment revenue and 8.9% of IBM’s external segment pre-tax profit
Achieving higher value for our clients– As organizations plan on how to reap the benefits of a rebound, IBM Global Financing will play a key role
in helping companies finance critical projects.
– As IT spending shifts to software and services, the need for financing these areas is increasing. IBM Global Financing Project Financing offering provides longer payback terms and graduated payments to allow clients to align payments with anticipated benefit streams.
Rankings and accomplishments– In December of 2009, IBM Global Financing was awarded the "Captive Finance Provider of the Year" by
Leasing Life Magazine.
– Following the announcement of the economic stimulus funding in May 2009, InformationWeek wrote Doesn't sound much like a computer company, does it? Or a software company? Or just a financing company? In fact, it sounds a lot like a business- and technology- and financial-services company with deep industry expertise
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Enterprise IT Financing Facility
Available for strategic IBM relationship accounts
Provides large, dedicated source of capital to fund IBM expenditures (some non-IBM funding)
Credit Facilities from $50M-$400M (dependant on credit rating)
An upfront fee is included based on the facility amount
IT FacilityIT Facility
Peripheral HW
/ OEM
Maintenance
Services
Projects
Existing Leases
& assets
Global, enterprise-wide “umbrella” credit facility
Minimized cash outlays during the initial “construction” period
Preserve cash flow and revolving credit lines,
Match cash outlays with anticipated benefits
May enable some projects to be viewed as “self-funding”
Vendors paid timely after milestone approvals
May enable clients to treat invoices either as a period expense, or as an asset capitalized over the project’s term
Client Benefits
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Optimize Total Cost of Ownership with an IT technology lifecycle strategy
You want to find the optimal solution for a certain IT infrastructure or IT project requirement, given your available budget and timing
You want to help ensure that your budget can quickly address ongoing infrastructure requirements – latest technology for productivity; capacity for business growth or seasonal demands
You want to trust the vendor you choose for asset disposal to follow DoD
compliant security processes, local environmental laws and regulations and to provide a
process that is as hassle-free as possible
You want to ensure that you can dispose of old/obsolete
equipment – or migrate to new – in a safe, easy or,
if needed, non-disruptive manner
A technology lifecycle strategy may include energy-efficiency aspects, business transformation events, IT optimization or consolidation projects…
or just a technology refresh to reduce costs
GFP03048-USEN-00
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
IBM Global Financing helps clients to…
Lower the cost of technology acquisition
Preserve cash Lower monthly payments Leverage from IBM Global
Financing residual value
Facilitate management of technology assets throughout their lifecycle
Facilitate technology refresh End of lease options Asset buyback and disposal
Better manage technology acquisition processes
Accelerate project implementation Mitigate technology obsolescence risk Improve financial measurements Payment and term flexibility
…optimize total cost of ownership throughout
the entire technology lifecycle
GFP03049-USEN-00
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Leasing helps…
Leasing helps clients…
…avoid issues related to depreciation The equipment is owned by IBM Global Financing – leasing offers ability to expense rather than capitalize and depreciate system payments
Leasing helps clients…
…avoid issues related to disposition of owned assetsDisposition of assets incur cost in time, resources and even cash – at the end of a lease the equipment is simply returned
Leasing helps clients…
…lay out less cash compared to a purchase
Simplifies asset management with better tracking and a more homogeneous portfolio
Laying out less cash means funds (or credit lines) are available for other strategic initiatives
Leasing helps clients…
…avoid costs associated with technology obsolescenceTechnology obsolescence has implications on price performance, maintenance/support costs, energy efficiency and productivity
GFP03050-USEN-00
© 2009 IBM Corporation
Dynamic Infrastructure: Energy Efficiency for Mid Size Companies
Highlights
One agreement, one strategic partner and multiple options to meet specific business needs
Improves price-performance and offers interest-rate protection
Enhances reliability, scalability and flexibility of the IT environment
Streamlines the entire IT infrastructure life cycle, including planning, procurement, budgeting and payment, and asset disposition
Open Infrastructure Offerings (OIO)
Overview
For enterprise clients who are partnering with IBM on large infrastructure projects, IBM can assemble an Open Infrastructure Offering (OIO) that combines hardware, software, professional services, maintenance, financing and disaster recovery into a single customized agreement.
GFP03052-USEN-00