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1 © 2016 IBM Corporation © 2016 IBM Corporation For the Commonwealth of PA and Harrisburg area clients IBM Cloud Innovation Day

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For the Commonwealth of PA and Harrisburg area clientsIBM Cloud Innovation Day

2016 IBM Corporation

# 2016 IBM Corporation

IBM TeamBrenda DeckerVP, IBM Global Government and Brennan Preine, Senior Cloud AdvisorMike SylviaIBM Distinguished Engineer andCloud Advisor for the state of CaliforniaDon VanderwielExecutive Security ArchitectTara GarrisonWatson Analytics Eric SmithWatson Client Architect,Cognitive ServicesAndrew MoynahanSenior DevOps SpecialistDavid NewPublic Sector Cloud Leader

Brennan PreineSenior Cloud Advisor

# 2016 IBM Corporation

Success in Cloud 2.0 and Digital TransformationBrenda Decker, VP, IBM Global Government and Brennan Preine, Senior Cloud AdvisorHybrid is the Path to Cloud- Protecting and Extending your IT InvestmentsMike Sylvia, IBM Distinguished Engineer and Cloud Advisor for the state of CaliforniaHow Security and Compliance Can Be an Enabler for CloudDon Vanderwiel, Executive Security Architect and David New, Public Sector Cloud LeaderNew Ways to Unlock your Data in the CloudTara Garrison, Watson Analytics and Eric Smith, Watson Client Architect, Cognitive Services

AgendaBreakDeployment Considerations with Hybrid ApplicationsAndrew Moynahan, Senior DevOps SpecialistWorkloads - Where do I Start?Brennan Preine, Senior Cloud Advisor

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# 2016 IBM Corporation

Success in Cloud 2.0 and Digital Transformation

# 2016 IBM Corporation

# 2016 IBM Corporation

By 2020, 95 percent of the top 100 enterprise software companies will have incorporated one or more cognitive technologies280% of CxOs are experimenting with different business models or thinking of doing so1Redefining Boundaries, Insights from the Global C-suite Study, IBM Institute for Business Value, 2015Cognitive technologies enhance enterprise software, Deloitte, 2016

5 2016 IBM Corporation

2016 IBM Corporation

# 2016 IBM Corporation

Speaking Points:Cloud conversations have shifted. Enterprises are at the tipping point.Its no longer about cheap compute & storage - Cost takeout only goes so far. The conversations are now about higher business valueThe role of the cloud is changing it is maturing.It is now becoming the platform for innovation and business value.Its about accelerating introduction of new innovative business modelsAll of theses services that are now available are enabling people to build new kinds of applications and new kinds of processes and every industry is transforming because of it (e.g. Uber, AirBnB, etc.)As we start to introduce advanced analytics, cognitive and the internet of things on top of this, business value will continue to expand.We are now entering the cognitive era, where deeper human understanding and learning can reveal even greater insights and get us even closer to our customersIts a very profound change.Industry convergence is causing disruption along with new entrantsCompanies you didnt think were competitors, are competitors.And we believe it is changing the very nature of the corporationThe organization is becoming leaner, more componentizedWith decentralized squads innovation and decision power5

2015 IBM Corporation

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2016 IBM Corporation

# 2016 IBM Corporation

Speaking Points:The business outcomes you want will result from hybrid cloudIts time to take an active stance on disruptionYou can innovate at speed Speed doesnt mean recreate everything. Or even move everything.Take advantage or extend!Cloud is a platform for innovation, not a destinationYou can extract maximum value from ALL the data that matters to you from inside and outside your organizationUsing new sources of data like weather, Twitter, etc.And Video, IoT, and other dark data currently invisible to your business.You can make use of the ever expanding set of third party apps and servicesWhich will be from a wide variety of sources and clouds.You can meet all your global industry and regulatory requirementslike data sovereignty requirements for where and how you can store dataAnd you can use the full open community to innovate at speednot limited by unpublished and proprietary standardsThats what hybrid cloud is all about6

2. Hybrid Integrationto unlock existing data and applications

3. DevOps Productivityto develop, experiment and iterate at speed

1. Choice with Consistencyto put the right workload in the right place

4. Powerful, Accessible Data & Analytics

5. Cognitive Solutionsto build understanding and learning into decisions and interactionsto extract deeper insight

2015 IBM Corporation

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2016 IBM Corporation

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Speaking Points:And HOW do you go forward from here?We talk to you all the time as weve engaged with you around the world.There are five things you we believe are essential for your path to deliver your own disruption. Choice with Consistency because where and how you develop and deploy data and apps does matter Hybrid Integration to build on what you have today & only change what needs to changeDevOps Productivity to give you the speed to innovate, experiment and continuously deliver the things you needPowerful, Accessible Data & Analytics to get closer to the customer and to make smarter decisions in real time.Cognitive Solutions to go to the next level in deeper human engagement and deeper understanding of dark data7

Cloud is a competitive asset that expands economic potential, promoting agility, security, efficiency and cost controlSource: NIST, IBM IBV Power of cloud studyClouds essential characteristicsResource PoolingBroad Network AccessRapid ElasticityOn-demand self serviceMeasured serviceCloud computing is a pay-per-use consumption and delivery model that enables real-time delivery of configurable computing resources

Speed, agility, and scalabilityCloud empowers 6 benefits for governmentsSecurity rich and highly availableImproved EfficiencyCost optimizedMasked complexityEcosystem connectivity

# 2016 IBM Corporation

Speed, agility, and scalabilityEnables faster delivery of servicesHelps improve the agility and dexterity of servicesScalability to meet demand peaks

Security rich and highly availableFacilitates improved data securityHelps better manage complianceHelps improve disaster recovery capability

Improved EfficiencyHelps more effectively manage IT resourcesEnables reduced need for human intervention with automation

Cost optimizedEnables improved IT efficiency & economies to reduce IT costsShifts from fixed cost to variable costEnables a pay per use payment structure

Masked complexityExpands product sophisticationSimpler for customers/users

Ecosystem connectivityFacilitates new value nets of partners, customers and other external playersEnables industry platforms8

Cloud can drive significant transformation in the public sector to create value and promote sustainabilityEfficient organizationSimple and faster processes drive internal efficiencyCost savings through the consolidation of back office operationsIT capacity can be readily aligned to roadmap of futureNew revenue streamAgencies can provide services to other government entities or local businessesRegional clouds can reduce need for standalone systemsValue-added services can be introducedEcosystem enablementThird-party services can be extended into government ecosystem and consume APIOpen collaboration and sharing can be expandedInnovation can be introduced across systemically

# 2016 IBM Corporation

The public sector is unique in that the deployment of cloud services has to be done in an environment of handling an series of industries within the public sector. Government is described as an industry of industries. With functions such as health care, transportation, law enforcement, banking, etc., the cloud services must meet criteria for each of these industries. 9

Hybrid Cloud Entry PointsDeploy with Flexibility(Existing Solutions)

Optimize existing solutions with choice in cloud deployment

Value: flexibility, cost, portability Extend with Cloud Based Services(Cloud Enabled Solutions)

Enhance cloud enabled solutions using new cloud native services to increase value.

Value: Extension of business value

Born on the Cloud(Cloud Native Solutions)

Innovate by using and creating new cloud native solutions

Value: Innovation, Business agility

Cloud EnabledCloud Native

OptimizeEnhanceInnovate

# 2016 IBM Corporation

So where do you start with the Hybrid Cloud? For most enterprises, there will be a combination of initiatives, some focused on streamlining and optimizing costs, some focused on extending existing assets to the cloud, and some focused on new solutions built for the cloud. We use Optimize, Enhance and Innovate to classify these three common entry points.

For Optimize, this is about choice and flexibility for deploying existing workloads. Key concerns here are portability of workloads across cloud environments and flexibility to move workloads based on cost, use case, or usage requirements.

The Enhance entry point is focused on getting more out of existing workloads by leveraging the cloud. This could be extending an existing application with new cloud services, or connecting an existing resource to the cloud.

Finally, the Innovate entry point captures new solutions that are born on the cloud. While these are focused on new use cases, no solution in an enterprise is an island. These new applications and services will need to integrate with the existing systems, driving a need for hybrid capabilities.

Cloud Enabled to Cloud Native

As you engage with clients, look for these three entry points as they are the most common starting points for enterprises implementing a hybrid cloud10

Hybrid clouds are also solving a variety IT concerns.

Manage the IT environment holistically via a single pane of glass

Systems of engagementSystems of record

Link new social and mobile systems to core business systems

ClaimsUnderwriting

Off premise

On premise

Data protection and resilience

Data syncIntegration of new and legacy systems (2 speed IT)Complexity of cloud managementTraditional ITPrivatePublicBurst to public cloud to gainadditional capacityPrivateInsufficient capacity for high-performance workloads PrivatePublicReserve capacity for peak application demandsTap into public cloud resources dynamically when a shortage occurs on private cloudUse private cloud normally and switch to public cloud to recover files and data

Enable workloads to move seamlessly between cloudsPrivatePublicWorkload portabilityAble to be implemented quickly, without infrastructure or application changesMore complex deployment, possibly requiring infrastructure or application changes

Public

# 2016 IBM Corporation

We are seeing that adoption of hybrid cloud is being driven by lines of business that are looking for agility and flexibility in delivering new business capabilities. This starts with the simpler scenarios on the top of this chart where public cloud has already been adopted alongside the existing on-premises infrastructure.

Though least implemented, it is the bottom scenarios that tend to receive most attention by IT operations and infrastructure groups. These groups are looking to reduce spending on infrastructure. Due to the complex application and management dependencies, these uses can be harder and more time-consuming to implement since they can require retrofitting of existing applications and environments.

Lack of systems integration between new and legacy systems. Many organizations are using public cloud services to build out social and mobile applications and improve the user experience. Linking these mobile and social systems (systems of engagement) to core business systems (systems of record) can provide greater customer insight and value. Organizations are using application programming interfaces (APIs) to provide access to legacy systems and data in a form that is easier to use with social and mobile applications. customer relationships. in the marketplace with customersComplexity of cloud management. With the adoption of public and private cloud, where applications are dependent on both public and private cloud instances (such as when bursting is required), there is the requirement for consistent management across the entire IT environment. Public and private cloud can introduce additional management costs. Hybrid cloud provides the opportunity for a unified, more cost-effective approach to management via a single pane of glass. It typically includes a self-service portal, monitoring and metering.Insufficient capacity for high-performance and big data workloads. In this scenario, public cloud is used as an additional go-to resources for large jobs, when existing resources cannot meet peak demand. When on-premises private cloud resources are overwhelmed, companies can automatically burst to public cloud for additional resources and pay based on usage. This enables them to avoid additional capital expense, especially when budgets are tight. Data centers that are already short on space can save on consuming additional space, cooling and power. Data protection and resilience . Use private cloud normally and switch to public cloud in the event of a disaster to recover files. Applications and data are duplicated and synced in the public cloud. Reserve capacity for peak application demands. Applications dynamically tap into the public cloud when resources an organizations private cloud become scarce. Portable workloads that can move between clouds. Organizations that want to completely abstract workloads from the hardware that processes them choose this hybrid cloud scenario. They want to create a simpler environment where workloads can move seamlessly between clouds for any application. This allows them maximize system resources, provide consistent access control and security, and control the operational and administrative costs that accompany virtualized workloads. These highly portable workloads are governed by policy-based management and security.

State of Ohio ModelCalCloud ModelGTA Hybrid ModelInitially co-located/co-managed Private Cloud

Short Term: Private cloud delivers transformation and reduction in IT resources/costs

Progress to a Hybrid Cloud model (like in Georgia)IaaS model: All IT consumed on a pay by the drink basis

Delivered via a simple service catalog

Optional additional services can be providedPremise-based managed private cloud for both legacy and closely regulated workloads

Orchestration and brokerage of cloud for non-regulated and approved compliant workloads (Gravitant for SoftLayer or others)State of TNMoving System Z workload out to cloud

Integrating back with existing interface systems

Potential to extend to zLinux hybrid cloud

State Clients are Extending Private Cloud to a Hybrid Model- IBM Experience

# 2016 IBM Corporation

These are three examples of State clients that are extending private cloud to a Hybrid model.

Key Benefits to Government of Hybrid CloudStimulating economic growth Building a bridge to the futureGuaranteeing data residencySafeguarding against evolving threatsBalancing government-wide standardization with agency-specific autonomyInnovating servicesDelivering new engagement models

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We have seen these as some of the key benefits to Government of the Hybrid Cloud.

Hybrid is the Path to CloudProtecting and Extending your IT Investments

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# 2016 IBM Corporation

Key Takeaways

Hybrid cloud enables and accelerates the digital transformation required to disrupt and to avoid being disruptedEnterprises require both IT flexibility and controlEffective hybridity requires more than just connecting environmentsIBM has the comprehensive set of integrated hybrid cloud capabilities and expertise across all required layers of cloud to meet your needs

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What is hybrid cloud?

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Cloud deployments come in many forms

For most large enterprises, hybrid cloud will be the most impactful and enablingSuccessful hybrid clouds deliverDeveloper productivityIntegrationPortabilityData and analyticsVisibility, control and securityHybrid cloud The connection of one or more clouds to on-premises systems and/or the connection of one or more clouds to other cloudsPRIVATE

PUBLICON-PREM IT

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# 2016 IBM Corporation

Visibility, control and securityEverywhere data and services existIntegration and portabilityTo easily integrate, compose and deliver web and mobile appsDeveloper productivityDevelop, refine and deployapps quickly and continuouslywith hybrid cloud DevOpsData and analyticsProvide insight from all relevant data inside and outside your organization and optimize data sovereignty and locally

Speaking Points:New hybrid cloud is more than the sum of its partsThe new Hybrid Cloud gives the freedom to choose and change your environments, data and servicesWhether in your own data center, in the cloud, or on a mobile deviceWhile still using data from anywhereWe know that organizations need to incorporate SaaS into their business processes The new hybrid cloud gives business the ability to add needed business applications quickly from the vendor of your choice and integrate and scale them as needed.While still achieving operational visibility and controlWith security everywhereIt is easier and simpler than you may think.Start by focusing on what matters

*****Notice that were only now talking about Hybrid Cloud. The deck up to this point has been about disruptors, IBM customers whove recognized the disruptions and turned them into business advantages, and challenges of moving to cloud in general. Heres where we set the stage for what IBMs Hybrid Cloud solution will offer. We start by mentioning deployment models (public cloud, private cloud, and on-premises), then we define how hybrid is combination of deployment models. We then talk about the specifics of our Hybrid Cloud solution. The following charts provide detail on each as well as a customer reference.

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The Digital Enterprise operates at multiple speedsCore enterprise

Digital ecosystemTraditional ProjectsThe capabilities to capitalize on your institutional knowledge and investmentsNew ProjectsThe speed and agility to drive innovation and growth Multi-Speed IT

# 2016 IBM Corporation

Most digital enterprises existed before they were digital. For these companies, the challenge is to operate at maximum speed for new innovation and growth while safely operating their core enterprise systems. A multi-speed IT capability is required. One in which organizations must continue to exploit the institutional knowledge and consistent processes of their core operations, while unleashing rapid, scalable innovation for new opportunities.

Multi-speed transformation requires an ambidextrous nature of working across different cultures, skillsets and ecosystems, and must be built on a technology foundation that bring these worlds together.

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A hybrid cloud enables multi-speed ITComposable environments to rapidly build/deploy new cloud-native & mobile solutionsFlexibility to move apps to the cloud as-is or build cloud native solutionsLeverage existing investments by connecting them to cloud services

Cloud Native SolutionsCloud Enabled Solutions

Multi-speed IT

PartnersAppsAccessInfoProcessInteraction

Core enterpriseDigital ecosystem

# 2016 IBM Corporation

A hybrid cloud strategy enables digital enterprises to implement a multispeed IT environment. In order to have a multispeed IT environment using cloud we expect to see three main areas of capability.

First we expect that enterprises will want to cloud enable their existing enterprise assets to improve their flexibility and optimize their costs. Secondly we expect for those same core capabilities they will want to extend those out to the cloud by connecting to the cloud. That can be for new cloud services to access those existing capabilities, or it could also be for existing capabilities to be enhanced with new cloud services. Finally we expect that they will need to adopt a Cloud First or Cloud Native strategy to be able to parse through those new projects with speed and agility. You need to leverage the cloud and all that the cloud brings to bear for Cloud Native to really optimize the digital innovation.

When you bring all these three things together and implement it was cloud, it will inevitably end up with a hybrid cloud and you marry the existing operation with these new Cloud Native solutions.19

DIFFERENTIATEDthrough best of breed content & capabilitiesCOMPOSABLEsourced frommultiple ecosystemsRESPONSIVEcontinuously reinvented& adapting to change

Hybrid cloud will define the next era of innovation

On or Off PremisesPlatformDevelopment, Infrastructure, Data, Application, Mobile, Operational InfrastructureCompute, Network, StorageSoftwareAnalytics, Mobile, Social Security, CommerceBusiness ProcessERP, CRM, Human ResourcesContentNews, Data, Music, VideoDynamic Business Services & Processes

# 2016 IBM Corporation

20IBM believes that dynamic hybrid will define the next era of innovation.

An era where business services and processes are composable crafted using traditional IT components, private cloud, and a wide range of public cloud content and as a service capabilities, not from one vendor or ecosystem, but from any mix of vendors and ecosystems.

Lets take a business service such as ecommerce as an example. You may have systems of record such as ERP in house which store client credit card data. You have a mobile application sourced on public for clients to access your site. Your marketing team is leveraging client analytics as a service on public to better understand buyer behavior. At the same time, your in house development team is leveraging self-service, private cloud IaaS provided by IT operations to develop a new promotions feature to suggest products.

What makes this model powerful, is that organizations will be able to reinvent business services and processes quickly using best of breed content and capabilities from any source. And that will translate into competitive advantage. And as the business demands change, and markets change, you will be able to continuously reinvent and adapt business services and processes to remain competitive.

How can I use hybrid?

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Where to start with hybrid? Most combine three common approachesCloud EnabledCloud Native

Deploy with new flexibility

Existing Solutions

Optimize existing solutions with choice in cloud deployment

Value: Flexibility, cost, portability Optimize

Extend with Cloud Based ServicesCloud Enabled Solutions

Enhance cloud enabled solutions using new cloud native services to increase value

Value: Extension of business value

Enhance

Born on the Cloud

Cloud Native Solutions

Innovate by using and creating new cloud native solutions

Value: Innovation, Business agility

Innovate

# 2016 IBM Corporation

So where do you start with the hybrid cloud? For most enterprises it will be a combination of initiatives; some focused on streamlining and optimizing costs, some focused on connecting assets to the cloud, and some focused on new solutions built for the cloud. We use optimize, connect and create as terms to classify these three common entry points.

For the optimize entry point, this is about choice and flexibility for deploying existing workloads. The key concerns here are portability of the workloads to different cloud environments and flexibility to move the workloads based on cost, based on use case, or a change in usage requirements.

The connect entry point is focused on getting more out of existing workloads by leveraging cloud. This could be enhancing an existing application with new cloud services and enhancing it with those cloud services, or connecting an existing resource to the cloud to be used by cloud native services.

Finally the create entry point captures new solutions that are born on the cloud. While these are focused on new use cases, no solution or enterprise is an island. These new applications and services will need to integrate with the existing systems, providing a need for a set of hybrid capabilities.

And from left to right we see that we move from cloud enabled, to cloud native and as you engage with customers these are the three entry points to look for because they are the most common use cases we see when people start to pursue a hybrid cloud strategy.22

There are several common use cases for hybrid cloudNext Gen Hybrid WorkloadsHybrid Cloud Brokerage & ManagementHybrid Infrastructure Scale OutIndependent WorkloadsSOE - SOR IntegrationPortability & OptimizationBackup and ArchiveCapacity AccessDisaster RecoveryChoose private, public or hybrid cloud based on independent workload requirementsSystems of Record on Private and Systems of Engagement on PublicApplication and/or data are portable and can go to and from public and private for improved optimizationPlanned or Policy based Management and sourcing across multiple environments (infrastructure, platform & app)Leverage off-premises resources for backup and archiving of on-premises resourcesOpportunistic use of public cloud as additional resource for large jobs (e.g., HPC, BigData, Batch)Setup and make available a parallel environment off-premises

Private

Public

AppData

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What do I need to consider when using hybrid cloud?

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Hybrid helps businesses accelerate their digital transformations, but moving to the cloud introduces challengesBusiness processes and transactions span multiple environments creating new risk for security, visibility and control at each touch pointMaximizing flexibility for the future to use any data, apps, services, and mobile devices as needs change going forwardFast, secure access to only the datayour application needs identifying, integrating, and analyzing the right data from the vast types and volumes available

# 2016 IBM Corporation

# 2016 IBM Corporation

Speaking Points:Everything you will need wont be in one place in the digital world.Data and services from multiple sources and environments Mobile and other models of engagement driven through clouds Innovation fueled by communities of developers and experts According to an Evans Data survey, the top two reasons to move to cloud are lower cost and flexibility of technology. * The challenges we hear from customers as they try to ensure successful hybrid cloud implementations are:That Business processes and transactions now cross multiple environments creating new risk for security, visibility and control at each touch point.and maximizing flexibilityto use not only my own data, apps and services, but also those from anywhere I wantand be confident Ill have that flexibility into the future?In this hybrid environment,how do I give my apps and developers fast and secure access to only the data they need to improve my business processes?

*****Another chart option explains what hybrid cloud is, but this chart allows you to lay out customer challenges moving to cloud. The biggest inhibitor in moving to cloud is the loss of control over security and visibility.Plus, since data is a core asset, data sovereignty becomes a potential serious issue as well.If your customer agrees that theyve seen these challenges or may run into them, youre one step closer to identifying an opportunity 25

Successful hybrid cloud implementation requires a balance between the needs of IT and the LoBs/Agencies

AgilityControl & Reliability

LoB/Agency needs

FlexibilityChoice SpeedVariable costOptions for managed services

IT needs

Visibility & control ComplianceGovernanceCost ManagementScale with consistencySecurity

Multiple SaaS

Multiple PaaSMultiple IaaSNew

Vblock IBM Exadata Other Other Other TraditionalEnterpriseFocus on non-functionalFocus on functional

Cloud Enabled

Cloud Native Apps/Services

# 2016 IBM Corporation

Managed Services

Cloud Brokerage ServicesService CatalogHybridCloud ServicesInnovation PlatformService Mgmt & OrchIntegration ServicesManaged Services

Provision across providers through a single portalBased on enterprise policiesEnable controlled self serviceWorkflows for managing approvals and costs

Tailored catalog using pre-built assets speeding implementationPattern maintenance as a managed serviceOrchestration to manage patterns and workflowsService Management integration to extend policies and controlsIndustry best practices to build and deliver innovative solutionsDev/Ops services speeds application lifecycleOpen by design to support born on the cloud micro-services architecturesTaps into 100s of services to rapidly compose and deliver innovative solutionsGateway & connector services to securely connect enterprise to the cloudDeliver data closer to the end userAPI management services to expose applications & data sets into API economy. Base services across on and off premises(e.g. patch, incident, backup)Modular services used based on workload requirementsAutomated Dev/Ops for continuous delivery and operationsAutomation of the cloud lifecycle for planning, deployment, and cost controlPlatform for creating, deploying and managing the new innovative solutionsServices providing secure access for enterprise applications and data to cloudModular managed services to meet workload requirements and provide options for support Patterns based catalog to automatically extend Enterprise IT controls on & off premisesSuccessful hybrid cloud implementations are enabled by a complete set of key services and capabilities

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IBM is the onlyprovider with acomplete hybridcloud solution

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98%reduction in critical events through predictive analytics

60%faster problem search and diagnosis by analyzing patterns from log data

80+points of integration supported, including industry standard DBs and ERP systems675 millionmessages and $1 trillionin financial traffic per day

2,000xincrease in speed by moving analytics closer to the data77,000active developers are using Watson tools through Bluemix

400+cloud patents in 2015

20+acquisitions for new and enhanced cloud capabilities40,000+Cloud consultants and experts

42global SoftLayer cloud centers

47 of the top 50 Fortune 500 companies use IBMs cloud capabilities$9.4 billion in cloud revenue over trailing 12 months 65% growth through three quartersIBM is ranked as the #1 hybrid cloud provider for the enterpriseSynergy Research Group, Wall Street Journal

# 2016 IBM Corporation

Only IBM Cloud providesFull hybrid cloud transparencyFast hybrid app development and full orchestration of business processes The right access and relevant insight across all hybrid cloud data29

All Relevant Software now available on the CloudSupporting New OpportunitiesNew Support for DevelopersNew Delivery Choices

IBM continues to grow and expand on the broadest available foundation for Hybrid Cloud

# 2016 IBM Corporation

Where to start with hybrid? Most combine three common approachesCloud EnabledCloud Native

Deploy with new flexibility

Existing Solutions

Optimize existing solutions with choice in cloud deployment

Value: Flexibility, cost, portability Optimize

Extend with Cloud Based ServicesCloud Enabled Solutions

Enhance cloud enabled solutions using new cloud native services to increase value

Value: Extension of business value

Enhance

Born on the Cloud

Cloud Native Solutions

Innovate by using and creating new cloud native solutions

Value: Innovation, Business agility

Innovate

Cloud DeliveredTraditional middleware deployed or managed in cloud environments

Cloud ConnectedSoftware delivered in the cloud, enhanced with cloud services

Cloud PlatformsCloud native platform, infrastructure, and DevOps services for building cloud solutionsIBMs comprehensive Hybrid Cloud Offerings support all three

# 2016 IBM Corporation

As we look at the hybrid cloud from a portfolio perspective we can also use the optimize, connect and create terms as a way to represent our portfolio and the capabilities that we have to offer.

Under the optimize category we look at delivering existing solutions via the cloud. So in the case of our portfolio this would be our traditional software or middleware, packaged for deployment in different cloud environments or delivered as a managed service in the cloud. This is what gives people the flexibility of being able to leverage what they already invested in and not have to change it dramatically, but be able to get some benefits from the cloud.

In the connect category, we call this cloud connected software. This is software that connects to the cloud, usually via APIs. This can also include software that connects different cloud environments together. These capabilities enable new use cases for existing software by connecting them to cloud environments.

Then finally there is the create category. This is the set of portfolio elements which make up our cloud platform. Its the underpinning of our cloud native platform and infrastructure capabilities which, when combined with DevOps services, a set of runtime, data and other middleware services gives you a foundation for being able to build new cloud solutions. So the primary audience in the case of the cloud platform is really developers, but developers are ultimately serving a set of buyers typically in the line of business. So these are folks looking for that new speed of innovation and being able to deliver that via the cloud.31

IBMs Hybrid Cloud OfferingsThe flexibility to deploy existing middleware on cloud DevOpsGreenhatNetcool OIUrbanCodeControl DeskMobile QAWorkload AutomationAPMHybrid IntegrationIBMDataPowerGatewayIntegration BusMessaging CastIronWebSphere Service Registry and RepositoryApp PlatformWebSphere Application ServerMobileFirstRuntime SecuritySmarter ProcessBusiness Process Manager (BPM)Operational Decision ManagerPatterns

VirtualMachines

Containers

Using the latest technologies Across public and private clouds

Cloud Managed Services

Cloud Delivered

# 2016 IBM Corporation

When we look at the cloud delivered part of the portfolio, this is the flexibility to deploy or manage existing middleware on the cloud. When we look at our middleware capability, they generally fall into four segments of DevOps, Application Platform, Hybrid Integration and Smarter Process and within each of these our existing middleware portfolio can be delivered and deployed into cloud environments.

The way we do that is via a set of technologies such as virtual machines environments like VMware which are very popular within enterprises, Container technologies such as Docker. which allow us to achieve portability of our middleware and deployment to different types of clouds, patterns such as HEAT and HOT and Pure Application patterns that allow us to put relationships in place for middleware and allow a more robust way of being able to deploy complex middleware to support the business and do it at a much faster speed and a much lower cost. Finally we also deliver cloud managed services for middleware, which allow customers to use middleware on the cloud without incurring any of the overhead of installing and maintaining the middleware solution. This really allows people to move to being able to capture the value of the middleware without necessarily having to manage it in-house.

Our strategy is to provide our middleware capabilities in various types of clouds, whether thats a public cloud or private cloud. So in the case of a public cloud such as SoftLayer you could deploy virtual machines or containers or patterns. You may have a private cloud solution in which case you use Bluebox which provides an Open Stack infrastructure in a private cloud, or Pure Application System which is an appliance that delivers a set of pattern capabilities for deploying middleware in a private cloud environment.32

IBMs Hybrid Cloud OfferingsConnector FamilyUnlock the value of existing existing Systems of Record by connecting them to the cloud

Cloud ConnectedWebSphere ConnectWebSphere Blockchain Connectz/OS ConnectIBM Message ConnectBluemix Cloud Integration ServicesIBM API ConnectIBM App ConnectAspera (data transfer)ClearLeap (video)Ustream (video)CleverSafe (object storage)IBM Cloud OrchestratorUrbanCode DeployITSM Gravitant CloudMatrixHybrid ServicesExisting data exposed as APIs for use in cloud environmentsHybrid ManagementManage services across cloud and traditional environmentsOrchestrate across traditional data center and cloud computing resourcesBroker across cloud infrastructures and services

# 2016 IBM Corporation

When we look at the cloud delivered part of the portfolio, this is the flexibility to deploy or manage existing middleware on the cloud. When we look at our middleware capability, they generally fall into four segments of DevOps, Application Platform, Hybrid Integration and Smarter Process and within each of these our existing middleware portfolio can be delivered and deployed into cloud environments.

The way we do that is via a set of technologies such as virtual machines environments like VMware which are very popular within enterprises, Container technologies such as Docker. which allow us to achieve portability of our middleware and deployment to different types of clouds, patterns such as HEAT and HOT and Pure Application patterns that allow us to put relationships in place for middleware and allow a more robust way of being able to deploy complex middleware to support the business and do it at a much faster speed and a much lower cost. Finally we also deliver cloud managed services for middleware, which allow customers to use middleware on the cloud without incurring any of the overhead of installing and maintaining the middleware solution. This really allows people to move to being able to capture the value of the middleware without necessarily having to manage it in-house.

Our strategy is to provide our middleware capabilities in various types of clouds, whether thats a public cloud or private cloud. So in the case of a public cloud such as SoftLayer you could deploy virtual machines or containers or patterns. You may have a private cloud solution in which case you use Bluebox which provides an Open Stack infrastructure in a private cloud, or Pure Application System which is an appliance that delivers a set of pattern capabilities for deploying middleware in a private cloud environment.33

IBMs Hybrid Cloud Offerings

Cloud Platforms

HybridInfrastructureHybridDevelopmentHybridOperationsComputeStorageNetworkSecurityApp LifecycleApp SecurityIntegrationDatabaseRuntimesAnalyticsMobileDomain TemplatesThird Parties

ConfigurationOrchestrationMonitoringAnalytics

PublicLocalDedicatedDelivered acrossLocal, Dedicated, and Public environmentsSoftLayer, CMS and BlueboxDevOps Services in Bluemix

Cloud Native App Runtimes and Services

Cloud Managed Services

IBM Blockchain DevOps Services

# 2016 IBM Corporation

The heart of the create category is the Cloud Platform. Again this is really focused on developers building cloud solutions. So you will see here this is really broken up into three parts.

From a hybrid perspective there is of course infrastructure which is traditionally compute, storage, networking and security. You have hybrid development capabilities which are around the application space, so lifecycle, security of the application, and the capabilities that go into an application such as databases, runtimes, integration, mobile and then of course templates and other resources to aid in building out these applications.

Then there is the operations category - this is really what happens when you transition from development to operations. So you start to run this application that you built in the cloud how you do that from a configuration, orchestration and monitoring and analytics perspective? These are the tools you need in order to get visibility into whats going on and being able to manage what you have built it in the cloud.

So when we look at the technology behind that and really talk about the different parts of what goes into building out a app, we start talking about DevOps services, we talk about app runtimes and services, we talk about the infrastructure and we also talk about the delivery. So we deliver these things not just in a public environment but also in a dedicated environment and in the local environment on premises for the customer if they choose to do so. So the consistency of this platform across the dimensions of infrastructure, development and operations, combined with the flexibility of public, dedicated and local are really a key differentiator for us.34

Open source and open standards are the foundation of IBM's cloud platform today and going forward

Applications

Platform

Infrastructure

# 2016 IBM Corporation

As you move to cloud, you want that cloud to be Open by design.

At the infrastructure level we've made a commitment to OpenStack from local to dedicated to public so that you have consistency regardless of the cloud environment.

This software defined environment is becoming the new operating system, and we know how important that is for portability and interoperability.

And whether it's Cloud Foundry, Docker or NodeJS, we want to be able to provide your developers with the best set of tools and runtimes that enable them to move quickly.35

IBM has a broad Cloud Business Application (SaaS) portfolio that addresses business and IT requirements100+ SaaS offerings aligned to business and IT

IndustryPublic SafetyEnergy AnalyticsCognitive Systems

AnalyticsPerformance ManagementPredictive AnalyticsContent Management

Smarter ProcessBusiness Process ManagementLine of Business/AgencyIT

CommerceB2B/B2C CommerceMerchandisingSpend ManagementB2B Integration

MarketingDigital MarketingLead ManagementCustomer AnalyticsReal-time Personalization

Social and EmailCommunitiesFile SharingEmailMeetings

Human ResourcesTalent AcquisitionEmployee EngagementWorkforce Analytics

SecurityFraud DetectionMobile Device Management

OperationalVisibilityService ManagementInternet of Things

# 2016 IBM Corporation

An important part of our overall cloud story is the Cloud Business App Portfolio. This is really our SaaS portfolio. You can see here that primarily it is targeted at line of business although we do have some IT SaaS as well. Within the line of business you have major categories that are really domain specific around commerce, marketing, social and email, HR, analytics, process, and industry. These are really consumed by customers as solutions where they are not managing any of the infrastructure, they are not doing anything but accessing this as an application on the cloud. We have over 100 SaaS offerings across the business and the IT portfolio. These represent a born on the cloud or cloud native method of being able to move a part of your business to the cloud in some of these domains.36

IBMs Integration Expertise RecognizedIBMs strength in middleware is creating the bridge to hybrid cloud, and IBM is being recognized for this: We are the market leader (58%) for integrating legacy and cloud environments2IBM Experience, Scale and ScopeIBMs deep expertise creates high-value solutions for enterprise leveraging incumbency, expertise in IT management, security, analytics, and a global presence via data centers delivering cloud servicesIBM is Most-Trusted Cloud Services BrokerWith 47% recognition, IBM is recognized as most trusted brand to deliver as a cloud broker bringing visibility, providing control and helping reveal and embrace shadow IT in a multi-vendor environment1IBM provides Choice with Consistency Open by Design delivers a consistent experience across public, dedicated and local deployments and integrates proprietary vendors including VMWare, AWS and AzureIBMs on-going InvestmentGrowing global locations, asset development and acquisitions to industrialize hybrid cloud for the Enterprise IBM fuels InnovationProvides the greatest choice in run-times including Containers, Virtual Machines, Cloud Foundry, and Bare MetalIBM expertise, investments, and innovation brings the capabilities and skills for successful hybrid cloud implementations1 Source: IBM Blind Broker Survey of over 500 IT and Finance Executives 4Q142 Source: TBR 2015

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Hybrid is the Path to Cloud

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Key TakeawaysHybrid cloud enables and accelerates the digital transformation required to disrupt and to avoid being disruptedEnterprises require both IT flexibility and controlEffective hybridity requires more than just connecting environmentsIBM has the comprehensive set of integrated hybrid cloud capabilities and expertise across all required layers of cloud to meet your needs

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Optimizeany app3.Deploy workloads for best fit

LocalOn-PremPublicDedicated

Connect existing apps and data2.Connect to cloud - publish or consume apps and data, effortlessly

IBM Cloud ConnectCreate new cloud appsBuild new cloud native apps with high productivity1.

How will you create the future?

# 2016 IBM Corporation

As we wrap up, lets think about three ways you can create the future: create, connect, and optimize.Create means create new cloud apps. You can build new cloud native mobile or high productivity web apps with easy ability to connect to existing apps and data through APIs.Connect. Connect existing applications to cloud services and publish apps or data to the cloud.And optimize. You can optimize any application. Move workloads to the cloud or burst into the cloud as needed. The net is: place workloads where they fit best.

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Where to begin? Visit the IBM Cloud Marketplace

Discover and try the IBM ecosystem of business apps, development platforms and infrastructure400+ IBM and Business Partner offeringsibm.com/marketplace

# 2016 IBM Corporation

Speaking Points:Our clients are asking: how do I bring it all together? New frontier of self-discovery and self-learningCustomers want:Immediate access to content and contextTo explore on their own The ability to hear from experts to make informed decisions 70% of decisions are made before your customers talk with you So you have to engage in that discovery process We offer this kind of discovery through our IBM Cloud marketplaceTap into expertise and bring ideas to lifeIBM and 100+ business partners with 400+ servicesWhat will the Cloud marketplace services help you do? Personalized mktg campaigns with rich data sets & analytic tools Quick integration of information and data you needCreate new cognitive applications with access to WatsonQuick simple access to SoftLayer and Bluemix

*****Now that weve laid out our vision of hybrid, we want to show an easy way to explore IBM and partner solutions using IBM Cloud marketplace. IBM Cloud marketplace is much more than a place just to buy stuff (in fact the number of offerings available to purchase online today is fairly limited). The real value is that customers and prospects in different roles can learn about our capabilities, see interactive demos, set up free trials, or get a quote. Use the marketplace as a sales tool with your customer by getting to know the content and point them to demos when you meet with them (from your tablet). 41

How Security and Compliance Can Be an Enabler for Cloud

# 2016 IBM Corporation

# 2016 IBM Corporation

The cloud presents the opportunity to radically transform security practices

Dynamic Cloud SecurityStandardized, automated, agile, and elasticTraditional SecurityManual, static, and reactive

Cloud security is not only achievable, it is an opportunity to drive the business, improve defenses and reduce risk

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We believe your approach to cloud security needs to be:Comprehensive spanning all aspects of technology, process and people

Proactive discover vulnerabilities and strive to remediate and mitigate ahead of the threat

Intelligent driven by integrating security data, threat intelligence and analysis

Robust managed 24 x 7 by qualified experts

# 2016 IBM Corporation

YOUR APPROACH TO CLOUD SECURITY NEEDS TO BE:

Your cloud security strategy needs to be part of your overall security strategy. You ultimately dont want two separate strategies. You want one that encompasses all of your IT and infrastructure.

That strategy should be characterized by four elements:

Comprehensive, spanning all aspects of technology, process and people.

Proactive, discover vulnerabilities and strive to remediate and mitigate ahead of the threat.

Intelligent, driven by integrating security data, threat intelligence and analysis.

Robust and managed 24x7 by qualified experts.

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Executive SummaryCloud environments need to satisfy the same compliance requirements as traditional IT, with same security tools, policies and procedures, adapted for Cloud deploymentCloud adoption requires security solutions covering Identity, Protection and Insight to be extended to stand alone and hybrid cloudIdentity (user identification, access control and governance)Protection (infrastructure security, app and data security, risk mgmt)Insight (user activity, threat intelligence, compliance, cost)Cloud adoption highlights changes to thinking about compliance including adoption of mutable complianceInfrastructure IaaS compliance with SOC2, ISO27001/2 or similarClient-side workload compliance built on Infrastructure + WorkloadSoftware/service SaaS compliance built on Infrastructure + ServiceDeploy Cloud offerings with extensive regulatory and compliance assertionsAddress hybrid cloud use cases by leveraging underlying compliance of IaaS, PaaS, SaaS layers With Integrated security capabilities Address hybrid cloud use cases by leveraging strong enterprise security solutions and services

Cloud AdoptionSecurity concernsCompliance concernsIBM Focus

# 2016 IBM Corporation

Top 10 Things You Should KnowCloud environments can use the same security tools, policies, and procedures as traditional IT to satisfy the compliance requirements of Cloud hosted applications and workloads Leverage cloud providers APIs and logs for complete visibility into your cloud environmentIdentity: manage your users to identity lifecycle best practicesProtection: leverage IaaS/PaaS structure to move to a High Availability, Disaster Recovery and a Business Continuity architectureInsight: use move to cloud as a means to improve your overall IT asset management : know where your servers and what they are doing at all timesAdopt mutable compliance thinking in your organization Learn how to use an IaaS/PaaS SOC2 or ISO27001/2 certification as basis for your workload compliance assertions Learn how to evaluate SaaS security and complianceTRUE/FALSE: Cloud is LESS secure than my traditional IT environment TRUE/FALSE: It is harder for me to detect and respond to attacks in a Cloud environment

Cloud AdoptionSecurity concernsCompliance concernsIBM Focus

# 2016 IBM Corporation

Security overallPhysical SecurityNetwork SecurityIdentity and Access ManagementData location who controls this?Security Policy yours or the providers (how much flexibility do you have?)Hardware does the provider have secure HW? Intel Trusted Execution Technology (TXT) with Supermicros Trusted Platform Module (TPM)Public, Private, Bare Metal which is right for you?Flexibility in toolsRegulations and ComplianceEndto-end response services do you have a plan?

# 2016 IBM Corporation

Your strategy begins by assessing your compliance and controls SDLC, binary analysis, scanners, webapp firewalls, transactional sec.DLP, CMR, database activity monitoring, encryptionGRC, IAM, VA/VM, patch management, configuration management, monitoringNIDS/NIPS, firewalls, DPI, anti-DDoS, QoS, DNSSEC, OAuthHardware & Software RoT & APIsHost-based firewalls, HIDS/HIPS, integrity & file/log management, encryption, maskingPhysical plant security, CCTV, guardsFirewallsCode reviewWAFEncryptionUnique user IDsAnti-virusMonitoring/IDS/IPSPatch/vulnerability managementPhysical access controlTwo-factor authentication

Source: The Cloud Security Alliance

Example: PCI Compliance

# 2016 IBM Corporation

YOUR STRATEGY BEGINS BY ASSESSING YOUR COMPLIANCE AND CONTROLS

Creating the strategy starts with assessing your risk and security controls.

Inside the cloud, it is difficult to physically locate where data is stored. Security processes that were once visible are now hidden behind layers of abstraction.

This lack of visibility can cause concerns about data exposure and compromise, service reliability, ability to demonstrate compliance and meet SLAs, and overall security management. Visibility can be especially critical for compliance.

A gap assessment against security objectives and best practices will reveal strengths and weaknesses of the current security architecture and processes.

Ultimately, you want to create improvements and continuous security measures to bridge the gaps. These can include the use of additional network security controls, modifications to existing security policies and procedures, implementation of new identity and access management controls, acquisition of managed security services for offloading critical security management tasks, or any number of other remediation steps.48

IBM Cloud Solutions - From traditional on-premise to SaaS

Standardization; OPEX savings; faster time to value

Networking

Storage

Servers

Virtualization

O/S

Middleware

Runtime

Data

ApplicationsTraditional On-Premises

Networking

Storage

Servers

Virtualization

O/S

Middleware

Runtime

Data

ApplicationsPlatform as a Service

Networking

Storage

Servers

Virtualization

O/S

Middleware

Runtime

Data

ApplicationsSoftwareas a Service

Networking

Storage

Servers

Virtualization

Runtime

Data

ApplicationsManaged Infrastructureas a ServiceVendor Manages in CloudClient Manages

Networking

Storage

Servers

Virtualization

Middleware

Runtime

Data

ApplicationsInfrastructure as a Service

O/S

O/S

Middleware

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Security examplesHow do you prevent intrusions and what do you do for intrusion detection?How do I extend my identify management solutions into the cloud?How do you manage data breaches? Who is responsible for my data that I put in your cloud?How do I extend my encryption schemes in the cloud both in transit and at rest?Can you help us with security scanning and preventative protection?

# 2016 IBM Corporation

1 IDPS, NETWORK AND HOST BASED, FW, 2 REPLICATE YOUR ENVIRONMENT, CONNECT TO EXISTING3 BREACHES, WHO IS MANAGING YOUR ENVIRONMENT? WHAT TOOLS ARE IN PLACE IN ORDER TO SEE BREACH, IE. FILE MONITOR, DB MONITOR, ID MONITORING, LOG ANALISYS, 4 ENCRYPTION, REALLY DEPENDS ON THE TYPE OF CLOUD SERVICE AND WHAT CAN BE OFFERED, DO YOU HAVE TO USE THEIR SERVICE, CAN YOU BRING YOUR OWN AND CONTINUE TO USE THE EXISTING KEY MGMT CONSOLE5 VULNERABILITY SCANNING AND PENTEST, ARE THESE ALLOWED FROM EXTERNAL AND INTERNAL, WHAT CAN BE PENTESTED AND WHAT CAN NOT?50

Security ServicesSecurity Policy - Customer security document (CSD)Security ComplianceAudit SupportPatch ManagementHealth checkingSecurity Management (ISA, SSM, SIA, etc)ID mgmt - IBMRegulatory Team SupportID Provisioning - CustomerID Secondary Controls (reval, CBN, QEV) - CustomerUser ID activity Monitoring2 Factor AuthenticationManaged MalwareURL FilteringPhysical Security

Host Intrusion DetectionSecurity Event and Log Management (SELM)Security Information and Event Management (SIEM)Network Intrusion DetectionManaged FirewallVPN Gateway mgmtUTM managementVulnerability ScanningX-Force Threat Analysis ServiceEmergency ResponseCybersecurity BundlePenetration TestingSecurity Risk AssessmentData Security Strategy and Assessment

# 2016 IBM Corporation

IBMs Managed Security Services map to each cloud layer and function

Software as a Service Application security testing and management Web Defense (Web App Firewall and DDoS Protection) Email and Content Security Platform as a Service Identity and access management for cloud (Lighthouse) Data security (encryption and monitoring) Infrastructure as a Service Firewall/Unified Threat Management and Monitoring Network intrusion detection & prevention Security event and log management Vulnerability scanning and management Host-based intrusion detection & prevention for servers Managed Security Information and Event Management

# 2016 IBM Corporation

IBMS MANAGED SECURITY SERVICES MAP TO EACH CLOUD LAYER AND FUNCTION

A lot of security capabilities in the enterprise today whether on premises or in the cloud arent managed theyre self-serviced.

That puts more of a burden on the client, going against the very reason you adopted cloud service. We provide a managed, 24X7 service staffed by experts. That IS THE BIG DIFFERENCE BETWEEN US and other security providers. We can configure, monitor and manage security operations.

Analytics are at the heart of our security intelligence service. Theyre derived from the IBM X-Force Protection System (XPS), a multi-tenant infrastructure designed to collect, aggregate, store, summarize, and analyze various data types to identify security events, attacks and incidents.

Emphasis is placed on real-time, historical and global threat-centric analysis.

Using an analogy, the security intelligence we provide is similar to airport security:

Real-time threat analytics are analogous to the TSA agent checking your identification, airline ticket, and passing your belongings through a security assessment.Due to the time constraints imposed by real-time analytics, the analysis is limited to the quickest, most effective techniques for reducing risk.Historical analytics are analogous to background checks of airline passengers and if they have a history of psychological issues or violent crime. Unlike real-time analytics, historical analytics have the luxury of looking deeper into the data available, providing additional layers of sophisticated analysisGlobal analysis is similar to historical analytics but it delves even further, checking worldwide to see if the passenger is on any No Fly lists or has affiliations with terrorist organizations.

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SoftLayer support deployment of regulated workloads through extensive compliance and clear delineation of roles and responsibilitiesSoftLayer is compliant with major industry and regulatory standards

(*) FedRAMP is for dedicated, special purpose FedRAMP data centers located in USA. FedRAMP certification will NOT apply to commercial data centers; FCC ATO received in 2Q 2015, JAB-based pATO on target for YE 2015(~) Data centers are added to the SoftLayer audit/review cycle in the next available cycle after DC goes live. Because each (commercial) data center is managed to the same standards and procedures, we assert that we will (easily) achieve compliance certifications for each new data center as it is added to the SoftLayer audit cycle($) IBM Watson for Life Sciences Cloud (LSD) includes qualified cloud infrastructure and validated operational tools including Automated Evidence Tool (AET) for IQ/OQ(#) ITAR will come in stages, starting with ITAR for Federal Data Centers

# 2016 IBM Corporation

SoftLayer supports clients and their HIPAA workloads through its policies and procedures; SoftLayer will sign a BAA with clients as needed HIPAAThere is no HIPAA compliance process available explicitly for data centersSoftLayer will sign a BAA with clients SoftLayer is suited to host HIPAA workloads through its bare metal andsingle-tenant/dedicated private cloud offeringsWe do not recommend hosting a HIPAA workload on multi-tenant virtual server based cloud offering Best practice is to host sensitive, regulated workloads in a single-tenant virtual server/dedicated physical server (bare metal servers)/storage with data encryptionImpact: SoftLayer is a safe place to host a HIPAA regulated, PHI-relevant workload

Customers can be confident in the effectiveness of their existing controls as extended into the cloud environment they dont have to add new controls simply because the data has moved to the cloud.

# 2016 IBM Corporation

SoftLayer is has Agency-based Authority to Operate from FCC SoftLayer worked directly with FCC to achieve a FedRAMP compliant ATO, verified by the FedRAMP Project Management OfficeFedRAMP Ready systems allow potential agency customers and authorizing officials a starting point to initiate an authorizationAuthorized data centers are part of SoftLayer Federal Cloud (SFC)Two Federal data centers in Richardson, TX and Ashburn, VA onlySystems with more complete documentation or assessments by an accredited 3PAO will allow potential agency customers and authorizing officials to go through the assessment and authorization process more rapidly to become FedRAMP compliant." This means that a customer who is or has a sponsoring agency can pursue an agency specific Authority to Operate for their workload on SoftLayer based on the FedRAMP Ready status and documentation In addition to the JAB provisional authorization, SoftLayer will also pursue Agency Authority to Operate (ATOs) for those organizations requiring FedRAMP 2.0 processes and plansThis will provide a faster method to ATO

Impact: FedRAMP is a US Government-wide program that provides a standardized approach to security assessment, authorization, and continuous monitoring for cloud products and services. FedRAMP provides a streamlined approach to accelerating security assessments, authorizations and the adoption of cloud solutions enabling time, resource and cost savings for agencies.

# 2016 IBM Corporation

SoftLayers information security policies and security management approach is aligned with US Government standards and based on the NIST 800-53 frameworkSP800-53 is a catalog of security and privacy controls originally defined for US federal government information systemsDeveloped in response to the US Federal Information Security Management Act (FISMA)

Security Assessment and AuthorizationPlanningProgram ManagementRisk AssessmentSystem and Services Acquisition

Awareness and TrainingConfiguration ManagementContingency PlanningIncident ResponseMaintenanceMedia ProtectionPhysical and Environment ProtectionPersonnel SecuritySystem and Information Integrity

Operational ControlsManagement Controls

Access ControlAudit and AccountabilityIdentification and AuthenticationSystem and Communications Protection

Technical Controls

# 2016 IBM Corporation

Customer Retains Operational Control of their workloadResponsibilityData Center ManageBare Metal EnvironmentVirtual CloudAT&T Workload ManagementOfferingServer ProvisionAutomated Server ManageManual Server ManageVirtual Server ProvisionVirtual Server ManageBare Metal Offering (Bare Metal Cloud)As requested by CustomerBring Your Own Virtualization Bring Your Own VirtualizationPrivate (Virtualized, Single and/or Multi Tenant) CloudHost for IBM Virtual CloudHost for IBM Virtual CloudHost for IBM Virtual CloudHypervisor

Virtual ServerHypervisor

Virtual Server

= Customers administrators or their authorized agent, eg, IBM Delivery Teams= IBM SoftLayer teams manual support= IBM SoftLayer automation

This includes assessment of what must be encrypted, backed up, and how everything will be managed

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Break

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New Ways to Unlock your Data in the Cloud

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Analytics and cloud together:Accelerating innovation in the new cognitive era

IBM Analytics

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Disruption is the new catalyst for growth.Analytics is moving from the select few to the empowered many. Technology is dismantling barriers to insight.No more business as usual

Disruptor be disrupted.Use insight to ignite innovation.Use knowledge and context to inform virtually every system, process and customer touchpoint.Take informed action as business events happen. Create a culture in which just about anyonein any rolecan contribute to success.Put powerful analytics in the hands of your team to uncover patterns, pursue ideas and improve decisions.Identify new places to capitalize on insight to drive business transformation. Build an IT environment with easy access to virtually all types of data: structured, unstructured, internal, external. Maximize use of open source and cloud technologies along with on-premises investments to speed innovation. Create IT strategies that enable stakeholders to source, refine and publish their own trusted data for analysis.

# 2016 IBM Corporation

IBM Big Data & Analytics 2013 IBM Corporation61Disruption is the new catalyst for growthLeading companies are disrupting the status quo by using data to inform business strategy and create new business models that fuel growth.Insight ignites innovation. New marketplace entrants are going from idea to value creation overnight, displacing the slow to act. To continually identify and act on opportunities, organizations must use knowledge and context to inform virtually every system, process and customer touchpoint.Speed sets organizations apart. Leaders are seizing competitive advantage by taking informed action as business events happen. Theyre uncovering and acting on patterns and correlations to improve customer service and avoid churn, prevent fraud in real time, and even save lives.

Analytics is moving from the select few to the empowered many.Integrating analytics into key applications and systems can enable people throughout an organization to access and act on insights when and where it matters most.Powerful analytics with advanced visualization capabilities can be put in the hands of virtually every business professional to help uncover patterns, pursue ideas and improve decisions.Data science teams are answering the toughest questions by leveraging open source development platforms and tools to build models more quickly and easily.CDOs are identifying new places to capitalize on insight, with a shift from focusing primarily on information governance to applying analytics that drives business transformation.

Technology is dismantling barriers to insight.Take advantage of more sources to enable better decisions. IT must create an environment with easy access to all types of datastructured and unstructuredfrom internal sources and those outside the organization. Lower the barrier to innovation. Leading IT organizations are maximizing the use of open source and cloud technologies alongside on-premises investments to speed innovation. They are embracing new cloud-enabled consumption models while helping ensure data privacy, security and sovereignty.Individuals want to use the right tool for the job. IT must employ strategies to enable non-IT professionals to source, refine and publish their own trusted data for analysis.

A new economy is emerging in which insight is the basis for creating value in practically all roles and industries.

Opportunities to extract insightInsights fuel virtually every employee interaction, decision, application and process.InnovateOptimize outcomesBalance limited resources Gain competitive advantageDifferentiateand disruptFrom idea to value overnight: Insight-driven disruption is the new norm

# 2016 IBM Corporation

Insight-driven disruption is the new norm in the marketplace, as entrants go from idea to value overnight, displacing the slow-to-act. This is a new age: The era of the insight- driven economyFueled by more types and sources of data than ever before, insight from analytics is redefining the boundaries of whats possible for individuals, organizations and entire industries. Advances in technology, such as the increasing penetration of cloud services and the myriad devices that make up the Internet of Things (IoT), are generating opportunities for businesses to gain a more relevant and deeper understanding of the marketplace and their organizations.A new generation of organizations and individuals are leveraging the science of data to innovate and optimize outcomesto balance limited resources and gain competitive advantage.Organizations that place opportunities for insight at the heart of the business can fuel every employee interaction, decision, application and process to differentiate and disrupt.Analytics reveals what customers truly value and whats really happening across an organizations operations so they can act first and act with confidence. With this level of understanding, even the toughest challenges present opportunities to differentiate for better business results. With no decision left to chance and no person limited by a lack of understanding, insight becomes an economic driver to build new value and to gain competitive advantage.

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The momentum is clear: More businesses are turning to the cloud for their data management and analytics1 IDC, IDC FutureScape: Worldwide Healthcare 2015 Predictions, Doc #252696, December 2014.2 IBM, Raising the game: The IBM Business Tech Trends Study, August 2014.3 The Cloud Grows Up, Oxford Economics and SAP, 2014.4. IDC FutureScape: Worldwide Cloud 2015 Predictions, IDC, 2014of healthcare data will pass through the cloud.1of pacesetters use big data and analytics to accelerate innovation Of enterprise IT organizations will commit to hybrid cloud before 2016.4By 2018,of enterprises expect the adoption of cloud computingto have a significant impact on new business models.3of products and services.280%57%44%65%

# 2016 IBM Corporation

Markets are shifting to the cloud as the foundation to accelerate innovation and engage new constituents from developers to business professionals, this is fueling the pace of moving data and analytics capabilities from on-premises to the cloud.

Leading-edge industries have their vision focused on the future:By 2018, 80% of healthcare data will pass through the cloud as providers leverage cloud-based technologies and infrastructure for data collection, aggregation, analytics, and decision making(Published date: 12/15/2014 Source: IDC)

The market is shifting to cloud as the foundation to accelerate innovation and engage new constituents from developers to business professionals and this is fueling the pace of moving data & analytics capabilities from on premises to the cloud. 57% of pacesetters use big data and analytics to accelerate innovation of products & services(BM, Raising the game: The IBM Business Tech Trends Study, August 2014)

Many companies are using the cloud as a basis for business transformation. In a 2014 study, 44% of surveyed companies will use cloud to launch entirely new business models. This same study showed that by 2017, more than half of companies---55%----will leverage the cloud as the delivery platform for entirely new businesses.(The Cloud Grows Up, Oxford Economics and SAP, 2014.)

A few years ago, the main driver of cloud was leveraging it reduce costs. Now in the next phase of cloud maturity, clients are using the cloud to innovate which requires not only connecting clouds to your on-premise assets but connecting cloud-to-cloud. To accelerate innovation, clients are using hybrid cloud infrastructures as noted by the IDC FutureScape: Worldwide Cloud 2015 Predictions study which shows more than 65% of enterprise IT organizations will commit to hybrid cloud technologies before 2016, vastly driving the rate and pace of change in IT organizations.

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Cloud: Platform for the cognitive eras new digital builders1 IBM, Inside the mind of Generation D, October 2014Enables immediate access to available data inside and outsidethe organizationHelps more people do more with data using self-service analytics on the cloudMoves insights through the organization quickly to accelerate business change

Leading companies are six times more likely to use cloud for big data and analytics initiatives.1

# 2016 IBM Corporation

To power the insight that drives disruption and speeds transformation, the organization must be unhampered by cumbersome processes and infrastructure.

Accelerates the integration of data into the organization by providing access to all available data both inside and outside the walls of the organizationFosters agility through a flexible hybrid architecture that enables new data consumption models and delivers speed and high performance in a simple and cost effective mannerScale insight across the organization: Use self-service analytics to define your own level of need64

Transform how you Compete with cloud and analytics

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Cloud and analytics create new possibilities for industries TransportationWhat if data could make transportation more efficient?RetailWhat if grocers could build a new app and launch it to the public in less than three months?EducationWhat if researchers could ask questions in natural language and get new questions to consider in return?GovernmentWhat if governments could prepare their emergency response one day aheadof a disaster?InsuranceWhat if insurance companies could share documents securely for a new levelof transparency?TelecommunicationsWhat if telecommunications providers could increase account representative incentives through profit-based compensation?

# 2016 IBM Corporation

This slide should be customized to your audience by highlighting the industry with the most affinity to your audience.

Transportation:Optibus: Enabling smarter public transport systems through real-time analytics of in-motion big datahttp://www-01.ibm.com/common/ssi/cgi-bin/ssialias?subtype=AB&infotype=PM&appname=SWGE_IM_IM_USEN&htmlfid=IMC14930USEN&attachment=IMC14930USEN.PDF#loaded

Retail:Delhaize America: IBM designed a solution for Delhaize that included IBM InfoSphere BigInsights software, IBM Cognos software and IBM Global Business Services analytics consultinhttp://www-01.ibm.com/common/ssi/cgi-bin/ssialias?subtype=PS&infotype=SA&appname=GTSE_WU_WU_USEN_C&htmlfid=WUP12533USEN&attachment=WUP12533USEN.PDFg

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Developers

Need agility to get to the marketplace soonerComplexities of data sourcing and preparation slow them down.

Business users

Need to uncover patterns, pursue ideas, improve decisionsTo collaborate effectively with data scientists requires finding data, preparing it and interpreting the resultswhich takes time they dont have.Data scientists

Need to deploy their skills across the organization and produce value from data sourcesNeed tools to streamline algorithm development so they can deliver insight faster.Enterprise IT

Needs to empower employees to use insight from all kinds of data all the time IT leaders limited resources cant meet the growing enterprisewide appetite for access to insights.Helping you redefine roles across the enterprise

# 2016 IBM Corporation

There are two parts to the equation of how these industries are transforming. Analytics and cloud are fueling the pre-built solutions and capabilities that are the tools of transformation. But roles and professions across the organization need to transform to inject speed and agility into the organization. The challenges these constituents face are being surmounted through the combination of analytics and cloud.

Developers are slowed by the complexity of sourcing and preparing data47% of developers recognize the value add of analytics to their apps.

Business Professionals are challenged with finding the data, preparing the data and interpreting the resultsAnalysts spend 80% of their time locating and improving data quality.24% of business users find it difficult to find data; and 38% have a limited understanding of how to use analytics; 34% cannot find the time to analyze data.

Data Scientists are challenged by the requirements for their scarce skills from across the organization and need to produce value from all data sources and require new tools to streamline algorithm development to rapidly respond and deliver insight faster.

Enterprise IT needs to empower the organization to leverage insight in everything they do, but are challenged byA lack of IT resources to meet the growing appetite for access to insightUtilizing all data internal, external, structured, unstructured

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Sparking innovation and actionEmpowered with insight, people can work in new ways.Innovate quickly and enrich user experiencesDiscover and visualize data easilyTransform departments, processes and operations through industry expertise, third-party data and predictive analyticsTeam with business users to identify focus areas and IT to identify data and technology requirementsBuild and optimize algorithms to improve insights that drive better outcomesDevelop repeatable analytic models that can scale across the organization to support transformational changeUse data, analytics, open source, cloud and consumption models to accelerate insight adoption in virtually every decisionDevelopers canBusiness users canData scientists canEnterprise IT can

# 2016 IBM Corporation

No decision is left to chance. No person is limited by a lack of understanding.

Agility and speed needs to be at the core of the enterprise to capitalize on business events as they happen to uncover patterns and correlations that improve business outcomes and fuel the disruptors in the organization with insight and data, including developers, business users, data scientists and IT

The synergy of analytics and cloud is reshaping how the organization engages constituents: Developers to innovate quickly and enrich user experiencesBusiness users to easily discover and visualize data themselves and transform departments, processes and operations through solutions that bring together industry expertise, third-party data and predictive analyticsData scientists build algorithms to put analytics into action quickly across the businessAnd, IT to broaden their investments to include the tools and solutions, including data, analytics, open source, cloud and consumption models that accelerate and empower the organization to leverage insight in every decision.68

Developers and builders: Infuse insights into applications faster, more securely with Bluemix offerings on the IBM Cloud

IBM Cloudant NoSQL DB

IBM DashDB In-memory,in-database analytics cloud data warehouseApache SparkHigh-performance big data, machine learning and graph analytics

IBM BigInsightson CloudSecurity-rich data environment without infrastructures cost, complexity or riskIBM Internet ofThings FoundationVisualization and analysis of datafrom multitudes of interconnecteddevices

IBM SoftLayer

DevelopersIBM Bluemix developersuse pre-built services to compose applications faster.Additional reusable servicesleverage streaming data, geospatial analytics, time series data and predictive analytics.Bluemix data andanalytics serviceshelp streamline the building of new classes of insight-driven applications and turn data into actionable insights.

# 2016 IBM Corporation

With Bluemix, developers use their programming language of choice to compose apps faster than with conventional methods.We have a portfolio of data and analytics services on Bluemix to help streamline building new classes of apps, and do things like turning Internet of Things data into actionable insights. IBM Cloudant, our NoSQL database as a service, gives developers a faster way to develop applications and makes the task of managing data much easier. To make the apps smarter, another service, IBMs dashDB data warehouse, with in-memory and in-database analytics, is tightly integrated with Cloudant so that an apps transaction data is seamlessly readied for analysis, at the touch of a button. This makes it possible to build a mobile app with embedded analytics.For developers and data scientists innovating for the IoT, IBM will offer Spark as a Cloud service on IBM Bluemix to make it possible for app developers to quickly leverage large data sets, model them, and derive the predictive artifacts to use in their app.With the Big Insights for Apache Hadoop cloud service in Bluemix, developer can create analytics applications by using open source Apache Hadoop and BigInsights APIs without having to manage the platform.Developers can get started quickly creating IoT applications with the Internet of Things Foundation service that lets apps communicate with and consume data collected by connected devices, sensors, and gateways. Recipes make it easy to get devices connected to our Internet of Things cloud. 69

SilverHook turned to IBM to help its app meet the need for speed and deliver a heightened fan experience.Deploying apps faster, all-new capabilitiesits a whole different ballgame.Nigel Hook, president, SilverHook Powerboats

The taskSilverhook needed an app that would improve racers safety and decision-making ability and enhance the fan experience.

The choiceSilverHooks development team, with the IBM jStart team and Virtual Eye, used IBM Internet of Things Foundation to glean important data, stream it directly to the cloud and build an app quickly on the IBM Bluemix platform that would analyze and deliver information in a format useful for racers and fans alike.

The resultA rich visualization delivered real-time technical information and alerts to the racing team, race information to fans and a comprehensive analytics solution in just three months40 percent less time than planned.SilverHook Powerboats ocean racing team struggled with more than 80 data sources that affected safety and competitivenessand an audience that needed to be energized. A new app promised to achieve all of that, if only it could be completed before the World Championships, just months away.

Developers

# 2016 IBM Corporation

Silverhook Powerboats

The need Nigel Hook, president of SilverHook Powerboats, wanted to use sensor data collected from racing boats to improve the decision-making abilities and safety of racers and to enhance the fan experience. Sensors on Hooks racing boat provided over eighty sources of data, but there wasnt a way to collect, distill and deliver insights in a useful format.

The solution Using IBM Internet of Things Foundation (IoT Foundation) to stream data directly to the cloud, Hooks team was able to quickly build an application on the IBM Bluemix platform to analyze and deliver insights in a useful format to racers and fans. Using predictive analytic services in Bluemix, the team could find insight from the eighty sources of data.

The benefit With IBM technology, the team completed a prototype in 40 percent less time, delivering a comprehensive analytics solution with data visualization in just three months.

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Analytics on cloudSimplified deploymentand more than 40 empowering solutionsmake analytics accessible to just about everyone.

MarketingIBM Watson AnalyticsIBM Social Media AnalyticsEnterpriseIBM Watson AnalyticsIBM SPSS Modeler GoldIBM Cognos AnalyticsFinanceIBM Watson AnalyticsIBM Planning AnalyticsIBM Cognos Disclosure ManagementOperationsIBM Watson AnalyticsIBM Maximo Asset ManagementIBM Counter Fraud ManagementIBM Predictive MaintenanceIBM Intelligent Operations CenterRiskIBM Watson AnalyticsIBM OpenPages GRCIBM Risk Content andData Service on CloudSalesIBM Watson AnalyticsIBM Incentive Compensation Management

Business users: The Cloud Shop in the IBM Marketplace is where you can gain analytics agilitywhatever your industry

# 2016 IBM Corporation

Cloud is bringing agility to business users across industries by enabling them with solutions for finance, marketing, sales and risk capabilities. The cloud not only brings speed to developers, but a range of business users are now empowered through the cloud with analytics capabilities to solve problems, uncover insights, predict and improve outcomes and assess and plan for risk. The Analytics on Cloud portfolio gets business users up and running quickly without involving IT to accelerate analytics adoption, speed time-to-value and break down organizational silos. With over 40 analytics solutions now available through the IBM Marketplace, simplified deployment makes analytics available to everyone in the organization: Gets business users up and running quickly Less capital outlay for shorter time to valueFaster deployments with ready-to-use solutionsScalability to add, remove or reallocate users quickly

Marketing Social Media AnalyticsSPSS Data CollectionRiskOpenPages GRCRisk Content and Data ServicesOperationsMaximo Asset ManagementCounter Fraud ManagementPredictive Maintenance and QualityFinanceConcertCognos TM1Cognos Disclosure ManagementSalesTerritory ManagementQuota ManagementIncentive Compensation ManagementEnterprise-WideWatson AnalyticsSPSS Modeler GoldCognos BIFinancial ServicesAlgo Risk Service on CloudPublic SectorCOPLINK

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MarketingCampaign planning, return on investment (ROI)SalesCustomer retentionFinancePrioritizing accounts receivableITHelp-deskcase analysisOperationsWarranty analysisHRIdentifying, retaining key employees

Explore data in plain language.Uncover predictive variables that drive outcomes.Create stunning visualizations for powerful storytelling.Pull in Twitter data.Connect to Dropbox-stored data; enrich analysis with enterprise data. Share insights; collaborate with stakeholders.

Business users

Business users: IBM Watson Analytics guided, automated output helps your team members find patterns and meaning

# 2016 IBM Corporation

In addition, the cloud is enabling a new class of self-service offerings that truly empower the line of business user. A prime example of this is Watson Analytics. Watson Analytics gives business professionals easy-to-use predictive and visual analytics tools. Powered by Watson and the Cloud, Watson Analytics takes advanced analytics problem-solving capabilities that have been the mainstay of business analysts and data scientists and puts them into the hands of the broadest base of business users. By automating the steps of data curation, predictive analysis and visual storytelling, Watson Analytics cognitive capabilities can identify and explain hidden patterns and relationships, accelerating the understanding of why things happen and what's likely to happen in the future.

Through the cloud, anyone in the organization can easily access Watson Analytics from a desktop or tablet.

Explore data in plain language Uncover the predictive variables that drive outcomes Create stunning visualizations for more powerful storytelling Pull in social data from Twitter; connect to data stored in the cloud in Dropbox and access enterprise data stores to enrich analysis Share insights and collaborate with stakeholders

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Benco turned toIBM Watson Analytics software to put traditional buying strategies under the microscope.Watson Analyticsit