IBM Service Management Delivering Visibility, Control & Automation

Rekha Garapati, DirectorIBM India Software Lab

Innovation is the Process, Success is the Result

“CEOs indicate that Innovation is the preferred path to achieving business objectives in today’s environment”… but how?

Innovation is the process of delivering new products, services, processes and business models

to help accelerate growth and create a unique competitive edge.

Source: IBM Global CEO Study

Address the enormous resource applied to maintaining business operations

Apply scarce resources more effectively

Business Objectives

Compliance & Risk Management

OptimizeInvestments

Growth &Competitive Edge

Enabling Quality Service Delivery and Business Innovation

Business Services & Assets

VisibilityVisibilityVisibility ControlControlControl AutomationAutomationAutomation

Provides the integrated visibility, control & automation across the service lifecycle that are needed to innovate and achieve business objectives.

IBM Service ManagementIBM Service ManagementIBM Service Management

Business Objectives

Compliance & Risk Management

OptimizeInvestments

Growth &Competitive Edge

Respond faster and make better decisions

Manage risk and compliance

Lower costs and build agility

Visibility: See Your BusinessChallenge:

– Business and IT audiences lack the visibility and insight needed to directly support and deliver against business objectives

Solution: Targeted real-time dashboards from IBM Service Management

– Dashboards at each stage of the service lifecycle leverage existing assets and provide the real-time insight to help manage against business objectives

ROI Examples:– Golf manufacturer reduced costs by 20% – Networking company reduced project costs by

20% IBM Service Management Dashboards across the service lifecycle

Portfolio and Project

Management Dashboards

Industry, LoB, & Executive Dashboards

Risk, Security, & Compliance

Dashboards

Control: Manage Your BusinessChallenge: • Business and IT struggle to address compliance needs

on time, and help minimize risk and protect the brand

Solution: IBM Service Management solutions • Improve governance, maximize control & minimize risks

effectively across the service lifecycle with a service management implementation that delivers service priority and context, bridge’s silo’s and leverages best practices

ROI Examples:– Federal agency reduced reporting times by 10-15%– Global IT services company achieved a 6 month

payback

45% of CIOs say that they are very or extremely effective at governing IT performance.

*The McKinsey Quarterly, 2007

*Source: “The McKinsey Quarterly – The nest frontier in IT strategy: A McKinsey Survey”, Spring 2007 issue of McKinsey on IT

Automation: Optimize Your Business

Challenge:• The business is driven by growth and frustrated by

service development and delivery organizations inability to reliably introduce new services on a timely basis – Cost of operations continues to increase at 10% CAGR,

twice the rate of the IT budget*

Solution: IBM Service Management solutions• IBM solutions help increase efficiency and reliability

with an integrated approach that includes task and process level automation across the service lifecycle

ROI Examples:– Retail firm cut recovery times by 50%– Financial services firm increased the ratio of auto-

closed events by 59%

“The more we can simplify, streamline and automate processes, the better we can manage the growing complexity … we must handle business growth with our existing resources. IBM technology helps us achieve greater levels of efficiency at a lower cost.”

Erwin Schaefer, Swiss Reinsurance*Tivoli Commissioned IDC Study- 1Q05

Poor Service Management: What are the Costs?

Cingular users dropped during system failure in Galveston Co.

Feb. 15, 2007

CHAOS: Voting Extension Denied Amid Massive Computer Problems in Colorado

Nov. 7, 2006

Wal-Mart Web site shuts down on Black Friday

morningNov. 24, 2006

Air-traffic system outage grounds flights … Planes nearly came too

close together; glitch causes Miami delays

Dec. 5, 2006

iTunes back to normal after holiday traffic quadruples

Dec. 28, 2006

Software bug hits electronic trade at LME

Nov. 7, 2006

Glitch Locks Ameritrade Users Out of Their Trading

Accounts June 23, 2006

IBM Service Management IBM Service Management

Service Management Platform

Best Practices, Methodologies, and Services

Visibility Control Automation

Do you need an energy-efficient

datacenter?

How will you manage SOA?

Does the health &

performance of your

applications support your

business?

Can you visualize &

control of all your assets?Do you want your asset lifecycle

automated?

Do you need to manage all

your key processes

from a single interface?

Can you deliver

effective network

services?

Is QoS important?

Do you need to manage all of your data, information and storage resources?

Are your people,

applications and data secure?

Are you sure?

Addressing Client NeedsSolving the critical business problems across the enterprise

IBM Service Management IBM Service Management

Service Management Platform

Best Practices, Methodologies, and Services

Visibility Control Automation

Datacenter Transformation

Service Availability &PerformanceManagement

Asset & Financial

Management

Service Delivery & Process

Automation

Network &

Service Assurance

Storage Management

Security, Risk & Compliance

Comprehensive Capabilities, Built on Best Practices

Addressing the Challenge of Enterprise Infrastructure

Management

Asset Convergence Complicates Infrastructure Management

OperatingAssets

ITAssets

Asset Convergence

• IT-enabled operating assets

• Networked assets

• Assets with embedded IT

• Blurred service delivery responsibility

“Smart” utility meter with embedded software

Is this an operating

asset or an IT asset?

Business and operating infrastructure is reliant on assets that are built with increasing intelligence

RFID and IP characteristics

Operating assets now include embedded IT systems and/or are connected to the IT infrastructure

The challenge: Managing a world that is gradually blurring the boundaries between IT and operating assets

The opportunity: Managing all assets across the infrastructure from a lifecycle perspective to improve productivity, gain efficiencies and reduce cost of ownership

Addressing the Challenge of Managing the Enterprise Infrastructure – both IT and Non-IT Assets

FacilitiesFacilities Production EquipmentProduction EquipmentTransportation

AssetsTransportation

AssetsIT Hardware & Software

IT Hardware & Software

TelcoTelcoEnergy & Utilities

• Customer Pain Points– Asset management strategies are still immature and

don’t result in optimal business performance– Asset management is disconnected from bottom-line

financial impact – Systems and processes for managing operations are

separate from those for asset management– Real-time asset operating information is not

incorporated into asset management practices

• Market Forces– Process control vendors are providing basic asset

management– ERP vendors are providing EAM solutions and building

tighter connections to operations

• The Case for Enterprisewide Management– Owning the collection, correlation and analysis of asset

operating information … for IT and non-IT assets … is the point of control for improving business performance

IT assets represent just 7% of all assets in a

typical oil refinery

Improving Enterprise Asset Performance Management

Tivoli Asset Management Solutions for Multiple Industries

Energy & UtilitiesEnergy & Utilities Public SectorPublic Sector

Oil & GasOil & Gas TransportationTransportation

TelecomTelecom FinancialFinancial

IndustrialIndustrial

Financial ServicesFinancial Services

Life SciencesLife Sciences

Gartner Magic Quadrant Leadership in Enterprise Asset Management for:Power Generation … Energy Distribution … Manufacturing

Securing the Infrastructure

Embracing Radical Change

1 2 3 4 5

CEOs Foresee an Enterprise of the Future that is Characterized by Change and that Requires Five Key Traits to Thrive

Source: IBM Global CEO Study

Security & Risk RequirementsManage Cost, Decrease Complexity, Improve Effectiveness, Assure Agility

• Make security and risk management a differentiator that facilitates changeCost

Effectiveness

Agility

Time

Complexity

• Ensure green initiatives with security and risk management built into the design

• Protect the customer’s customer

• Proactively apply technologies for collaboration while mitigating risk

• Remain guardians of company’s global assets, without increasing cost and complexity

The Impact and Frequency of Today’s Risks

Frequency ofOccurrences

Per Year

1,000

100

10

1

1/10

1/100

1/1,000

1/10,000

1/100,000 $1 $10 $100 $1,000 $10k $100k $1M $10M $100M

frequ

ent

infre

quen

t

Consequences (Single Occurrence Loss) in Dollars per Occurrencelow high

Virus

Worms Disk Failure

System Availability Failures

Pandemic

Natural Disaster

Application Outage

Data Corruption

Network Problem

Building Fire

Terrorism/Civil UnrestFailure to meet

Regulatory ComplianceWorkplace inaccessibility

Failure to meet Industry standards

Regional Power Failures

Lack of governance

Marketplace Dynamics

Intrinsic value and regulatory requirements for information drive security requirements throughout the information lifecycleCompliance rules mandating encryption due to privacy concerns

Applications as vulnerable point for breaches and attack and need security through the application lifecycle to reduce threatEmerging focus on centralized policy-driven security for consistency

Network security being subsumed into network devices, servers and multi-function appliancesRapid emergence of the end-point platform segment as a point of enforcement

Increasing convergence of IT and physical securityLabor intensive nature of today’s physical security systems and processes lead to focus on digitization and automation

Identity rising as central axis for understanding customer, employee and partner behaviorTrusted identity emerging as strong need

IBM Security Framework: Comprehensive Risk Management & Compliance

– 10,000 researchers, developers and SMEs on security initiatives

– 2,500 security & risk management patents

– 200+ security customer references and 50+ published case studies

– 40+ years of proven success securing the zSeries environment

– $1.5 billion security spend in 2008

– Debuted IBM Security Framework in 2007

Customer Success Stories

Cloud Computing and the New Enterprise Data

Center

Secure AggregationVirtual Machines

New Enterprise Data Center Operational

benefits:

IBM software delivers:

New Enterprise Data Center and IBM Software

Service-OrientatedDelivery

IT Optimization

Resilient

Secure

Flexible

Cloud Services

3rd Party Services

3rd Party Services

3rd Party Services

3rd Party Services

Services Services

Services

Green Data Center Enabled

Collaboration & Workload Automation

Next Generation Internet Scale Computing Skills and Research

IBM Cloud Centers

Commercial Use

IBM Cloud Computing Gaining Momentum

February March/April AugustJuneMay

Academic initiative

Joint research initiative with

13 European partners

Blue CloudAnnounced

Hadoop Workshop at IBM Dublin Cloud Computing Center

Capacity Planning on Cloud Available

Wuxi China Cloud Computing Center Deliver IT as a Service

4Q2007 2008

Collaboration and Innovation

Vietnam Innovation Portal and SSME

Online Idea Brainstorm a “terrific success” at Dublin Cloud

Cloud Computing CenterGreater ChinaSouth Africa

First Cloud Computing Center in Europe Opens

Cloud Computing CenterAlmaden

Cloud Computing Center Japan

September

New advanced academic research

Data Center Transformation: Cloud Computing

Enterprise Cloud

INNOVATIVE BUSINESS MODELS

End Users / Requestors

Government/ Academics

Industry(Startups/ SMB/ Enterprise)

Consumers

• A flexible pool of high performance virtualized compute resources

• Cloud applications enable thesimplification of complex services

• A cloud computing platformcombines modular componentson a service oriented architecture

• New combinations of services to form differentiating value propositions at lowercosts in shorter time

• Internet protocol based convergence of networks and devices

SIMPLIFIED SERVICES

Source: Corporate Strategy

Enterprise Cloud

Consolidation and Virtualization

Energy Efficiency

Service Management

Information Infrastructure

Business Resilience

and Security

IBM Service Management provides management support across NEDC

Fragmented, inefficient islandsof computing

Efficient, dynamic and responsive

Initiatives

IBM Service Management: Transforming the Data Center

IBM Service Management: Monitor and Manage Energy Use

Intelligent Chargeback

Green BusinessServicesOptimize Assets by

Energy Usage

Tivoli Monitoring forGreen Energy

Energy Aware Provisioning

Tivoli Green ManagementTivoli Green ManagementManagement

IT Assets

3rd Party Servers and Storage

Facility Infrastructure Assets

Data Center Infrastructure Assets

Tivoli: Partnering Across the Data Center

Tivoli SoftwareIBM® Systems Director

and Active Energy Manager

Tivoli SoftwareIBM® Systems Director

and Active Energy Manager

Service Delivery and Process Automation

VisibilityVisibilitySingle role based service Single role based service

management platform to manage, management platform to manage, inventory, and execute client inventory, and execute client

processes and workprocesses and work

ControlControlEnforce process standards and Enforce process standards and

controls through defined, managed, controls through defined, managed, workflows and auditable approvals workflows and auditable approvals

and escalations.and escalations.

AutomationAutomationEliminate cost and error by Eliminate cost and error by

automating change, configuration, automating change, configuration, provisioning, release and asset provisioning, release and asset

management tasks.management tasks.

Incident & Problem Mgmt

Service Request

Mgmt

Change Management

Provisioning & Release

Mgmt

Knowledge Mgmt inclusive of 3rd

Party Data

Asset ManagementConfiguration

Management

Work Management

Process Automation

Service Delivery

Process Automation

Service Delivery

Service Assurance and Performance Management

VisibilityVisibilityVisualize service performance and Visualize service performance and health across all network, server, health across all network, server,

middleware and application middleware and application components.components.

ControlControlIncrease effectiveness and Increase effectiveness and

productivity, reduce errors and productivity, reduce errors and improve availability through improve availability through

consolidated tooling.consolidated tooling.

AutomationAutomationKeep costs under control as all Keep costs under control as all

aspects of infrastructure grows with aspects of infrastructure grows with integrated policyintegrated policy--based based

automation. automation.

A Lifecycle Based Availability Solution for Success

Service Management

Service Management

IT Availability Life Cycle

Discover

Remediate

Sense

CorrelateIsolate

Discovery of Application

landscape and supporting

infrastructure

Monitor end user

experience, applications

and supporting infrastructure

Correlate &Analyze Events

Fix the problem

Isolate the bottleneck

Determine the root cause Diagnose

OptimizePlan for growth

& service enhancements

Business ServiceBusiness ServiceManagementManagement

ApplicationApplicationAvailabilityAvailability

Consolidated OperationsConsolidated OperationsManagementManagement

Protecting business critical application data Ensuring rapid recovery, data reliability and integrityReducing legal exposure through data encryption and key management

Enabling visibility into storage environment Optimizes storage performance and capacity utilizationVirtualizing storage for ease of administration, capacity utilization and transparent data migration

Retaining information at the most cost-efficient tier Keeping copies to help with regulatory/bookeeping requirements

Data ProtectionData ProtectionData Protection

Information Retention &

Lifecycle Management

Information Information Retention & Retention &

Lifecycle Lifecycle Management Management

Storage Resource & Infrastructure Management

Storage Resource & Storage Resource & Infrastructure Infrastructure ManagementManagement

Storage ManagementVisibilityVisibility

Create complete transparency Create complete transparency across the complete information across the complete information lifecycle for all business data and lifecycle for all business data and

records.records.

ControlControlPolicyPolicy--based management of based management of information access, retention, information access, retention, archiving and disposal of data archiving and disposal of data aligned to business controls. aligned to business controls.

AutomationAutomationIncrease productivity of storage and Increase productivity of storage and

security personnel though security personnel though integrated tooling and policyintegrated tooling and policy--based based

workflows. workflows.

Network and Service Assurance

ServiceInfrastructure

AppsApps

VisibilityVisibilityDeliver a single point of monitoring Deliver a single point of monitoring

for all network traffic, event/fault for all network traffic, event/fault and service quality management and service quality management across converged infrastructures.across converged infrastructures.

ControlControlEnforce policies for service quality Enforce policies for service quality and traffic prioritization to deliver and traffic prioritization to deliver optimized service within agreed optimized service within agreed

service levels. service levels.

AutomationAutomationSpeed problem resolution times and Speed problem resolution times and

reduce diagnostic errors through reduce diagnostic errors through automated root cause analysis. automated root cause analysis.

Integrated Service Quality Assurance Integrated Service Quality Assurance for converged (triplefor converged (triple--play) voice, play) voice,

video, data networks.video, data networks.

Information Integration Framework

TivoliIndustry

Solutions

Solution Architecture Framework for Energy

Payments Framework for Financials Services

Retail Integration Framework

Service Provider Development Environment

IBM Service Management Industry FrameworksSolutions architected for specific industries

Product Development Integration Framework

Market Share LeaderSystems Management• #1 in Performance & Availability – IDC• #1 in Event Automation – IDC • #1 in Performance Management Software- IDC• #1 in System Management- IDC• #1 in Server Provisioning- IDC• #2 in Mobile Device Management- IDC• #2 in Operating Systems and Subsystems- IDC• #2 in Distributed Performance & Availability

Management- IDCService Assurance and Network Management• #1 in Service Assurance- OSS Observer• #1 in Event Management- OSS Observer• #1 in Performance Management- OSS Observer• #1 in Worldwide Network Availability- IDC• #1 in Worldwide Telecom Assurance- IDCStorage• #1 in Archive and Hierarchical Storage

Management- IDCSecurity• #1 in Identity and Access Management- IDC• #2 in Security and Vulnerability Management- IDC

Recent Awards• April 2008 Tivoli Service Request Manager Named

“Leader” in Forrester Wave for Service Desk Management Tools

• 2007 Plant Engineering Magazine Reader’s Award, Silver in Best Maintenance Software category

• 2006 VARBusiness Annual Report Card Award, Enterprise Storage Management S/W

• 2006 VARBusiness Tech Innovator Company of the Year, IBM Tivoli Continuous Data Protection for Files

IBM is the Market Leader

Gartner Magic Quadrant Leadership• SRM/SAN Management• Application Management• User Provisioning• Web Access Management• IT Event Correlation and Analysis• Enterprise Asset Management: Power

Generating, Manufacturing and Distribution Utility

Tools to Get You Started TodayITSM Self-Assessment Tool

Facilitates identifying your service management prioritiesSelf-assessment of your capabilities, importance, current levels of automation and governance effectivenessBased on a proven approachContact your IBM representative for this self-assessment

IBM Service Management Visibility, Control & Automation Assessment Tool

Facilitates identifying your service managementpriorities

• Visibility• Control• Automation

Leverages your existing investmentsBased on a proven approachProvides a roadmap to integrated service management that delivers exponential value

Visit www.ibm.com/tivoli to access this tool

http://ausgsa.ibm.com/home/s/m/smithn/web/public/testSite/VCAhttp://ausgsa.ibm.com/home/s/m/smithn/web/public/testSite/VCA--Assessment/Assessment/