Avi Vizel Business Development & Cloud Evangelist IBM Global Technology Unit (GTU) IBM Israel

We are at an inflection point in terms of how IT is leveraged for competitive advantage

M Mobile customer targeting

Card swipe in one store

attracts coupons from

nearby store—resulting in

109% incremental sales lift

Just-in-time maintenance

Fast Big Data analysis

Global aircraft engine manufacturer

increases service revenue by

12%

Global stock exchange cuts response times of market surveillance algorithms

by 99% 35%

in one year using real-

time monitoring and

proactive fault detection

while lowering IT resources by

using a big data analysis platform.

3

More then 40 data centers

More then 40 network PoPs

Global private network 100,000

SERVERS

21,000 CUSTOMERS

22,000,000 DOMAINS

5

Top 100,000 Sites

By Hosting Provider

6

Cloud Computing Instances

Private Clouds

Self-Managed

Hypervisor

• High-performance public network with transit from multiple tier-1

carriers

• Secure OOB management via VPN

• Private network for intra-application and inter-facility

communications, access to shared services

• Native IPv6 support

• Virtual racks for integrated management

• Complete suite of network services

• Highly flexible architecture

• One platform for public cloud

servers, private clouds, bare metal

servers

• Complete integration

• Unified systems management & API

• Technology-neutral platform

• Support for broad range of operating

systems, virtualization platforms

• Build hybrid, distributed, high-

performance architectures and

manage from a single pane of glass

• Pay by the hour or the month for a

truly variable IT operations model

x86 Server

Bare Metal

Private Clouds

Virtual Servers

Public Clouds

Hybrid Clouds

CloudAMQP

Data Stores Development Tools Security Operations Support

Messaging Mobile Analytics Business Support

9

Comprehensive catalog supported by multi-billion dollar investments:

- Biz (line of business) features IBM’s world class SaaS portfolio

- Dev (developer) supports traditional application styles (patterns) and new application styles (composable services / Bluemix)

- Ops (IT operations) features SoftLayer’s high performance infrastructure services

Purpose built Solutions (e.g., Mobile, DevOps) help you navigate the catalog

Enables IBM customers to discover and experiment with a broad portfolio of offerings in a consistent way

Marketplace and click on http://ibm.com/cloud

10 @alex_lavolpe

Application Aware

Service Driven

Resource Smart

On or Off Premise

Composable Business

Old School SaaS Designed for customers to install, manage and maintain.

Designed from the outset up for delivery as Internet-based services

Architect solutions to be run by an individual company in a dedicated instantiation of the software

Designed to run thousands of different customers on a single code

Infrequent, major upgrades every 18-24 months, sold individually to each installed base customer.

Frequent, "digestible" upgrades every 3-6 months to minimize customer disruption and enhance satisfaction

Version control Upgrade free Fixing a problem for one customer fixes it for everyone

Streamlined, repeatable functionality via Web services, open APIs and standard connectors

May use open APIs and Web services to facilitate integration, but each customer must typically pay for one-off integration work.

•SCALABLE

•MULTI-TENANT-EFFICIENT

•CONFIGURABLE

the application - maximizing concurrency, and using application resources

more efficiently. optimizing locking duration, statelessness, sharing pooled resources such as threads and network connections, caching reference data, and partitioning large databases

– important architectural shift from designing isolated, single-

tenant applications. One application instance must be able to accommodate users from multiple other companies at the same time All transparent to any of the users. This requires an architecture that maximizes the sharing of resources across tenants is still able to differentiate data belonging to different customers.

- a single application instance on a single server has to

accommodate users from several different companies at once To customize the application for one customer will change the application for other customers as well. Traditionally customizing an application would mean code changes Each customer uses metadata to configure the way the application appears and behaves for its users. Customers configuring applications must be simple and easy without incurring extra development or operation costs

The numbers show that SaaS is a far more attractive economic model than the perpetual license model.

Over the next 3 to 5 years, the sharp distinction between SaaS and traditional

software models will blur. Traditional vendors will introduce and expand their SaaS offerings.

• SAP recently announced their On-demand CRM and Marketing solutions. • Oracle inherited the on-demand business of Siebel.

The enterprise software market will see more offerings from these and other vendors based on SaaS.

What will distinguish the winners from the losers will not be the model itself

but how the model is executed. Open new markets, revenue streams, and distribution channels

• Provide a stable, recurring revenue model • Afford consolidation of development and support efforts around single versions

of code Jie Liu, Professor

Department of Computer Science Western Oregon University

• Open platform: choice of services • Enterprise integration (Big Data, analytics) • Full abstraction from IaaS details • Developer experience • Enterprise integration • Pricing at scale, geographic footprint of SoftLayer

Systems of Record

Systems of Interaction

Continuous client experience

Partner value chain

Cloud-based Services

Systems of Engagement

IBM has long been a champion for our clients IT transformation. We lead with solid architectural strategies based on leveraging

existing systems (SoR) and bridging them to the new world (SoE)

CRM HR

DB ERP

Drives Investment

Systems of Record Optimize IT

infrastructure, data and processes

Drives Need Systems of

Engagement Knowledge Sharing

Engagement Models Anywhere,

Anytime

Big Data &

Analytics

Cloud

Computing

Commerce Mobile

Enterprise

Internet of

Things Social

Media

Cognitive

Computing

Marketing

Solutions

The Composable Business is built on the “as a Service”

environment…with a goal of enabling the API economy

From Software Defined Environments to Cloud Operating Environment to an API Economy

External ecosystem

Analytics Commerce Collaboration Location Data Services

Marketplace Solutions App

Software-defined networking

Resource abstraction and optimization

Software-defined storage

Software-defined compute

Workload definition, optimization and orchestration

Development Big Data and

analytics Security Integration Mobile Social

Services and composition patterns API & Integration Services

Traditional Workloads

API API

API API API API API API API economy

Cloud operating

environment

Software- defined

environment

SaaS

PaaS

IaaS

IBM branded website for line-of-business users, developers, and IT teams to build, consume and manage the applications that run today’s enterprises

Single point of entry for IBM’s extensive SaaS, PaaS and IaaS offerings

Comprehensive of IBM and Industry services delivered through IBM

It’s the enablement - via APIs - of services independent of service type or source

Centralized resource for IBM worldwide sales organization

Public demand driven by intensive marketing campaigns

To enable the Compassable Business IBM is embracing Cloud Foundry as an Open Source PaaS to build the Cloud Operating Environment

• BlueMix is IBM's OPEN PLATFORM for developing and hosting applications. BlueMix is a Platform as a Service (PaaS) offering that aims to simplify the normally tedious tasks associated with managing the infrastructure necessary to develop and host applications at internet scale.

• BlueMix is an implementation of IBM’s OPEN CLOUD OPERATING ENVIRONMENT (CloudOE) Architecture leveraging cloud foundry

• BlueMix enables developers to RAPIDLY BUILD, DEPLOY, AND MANAGE their cloud applications, while tapping a growing ecosystem of available services and runtime frameworks.

• IBM will PROVIDE SERVICES AND RUNTIMES into the ecosystem based on our extensive software portfolio

• Applications – An application represents the artifact

that the end developer is building.

• Services – A service is a piece of code that

BlueMix hosts that offers a piece of functionality for applications to use.

• Organizations and spaces – units in the Cloud Foundry

infrastructure that can be used to store and track application resources. An organization contains domains, spaces, and users; a space contains applications and services

• Buildpacks – collection of scripts that prepare your

code for execution on the target PaaS. This includes the runtime environment needed by your application, and can also include specialized frameworks.

Bluemix embraces Cloud Foundry as an open source Platform as a Service

and extends it with IBM, third party, and community built services.

When an application is deployed, the application developer needs to configure BlueMix with enough information to support the application. In the case of a mobile application.

BlueMix contains an artifact that represents the mobile applications back-end - for example, the set of services used by the mobile application to communicate with a server.

In the case of a web application, the application developer needs to ensure that BlueMix is told the proper runtime and framework

BlueMix will setup the proper execution environment in which it will attempt to run the application.

Each execution environment (irrespective of mobile or web) will be kept isolated from other application's execution environment even though they may reside on the same physical machine.

Domain-specific curated bundles of services targeted toward business problems

Application Services

Integration

Big Data

Internet of Things

Security

DevOps

Data Management

Commerce

Marketing Watson

Analytics

Mobile

Current or New IBM Services in 2014

Mobile

Web & App

Services

Integration

Big Data

Internet

of Things

Security

DevOps

Data

Management

Commerce

Marketing Watson

Analytics

Push Notification

Cloud Code

Mobile Data API

Mobile App Management

Mobile Quality Assurance

Twilio (Partner)

Mobile Data Sync

Geo Location

Integration Service

Secure Connector

Private API Catalog

Data Mapper

MapReduce

BLU Acceleration

SQL Database

JSON Database

MongoDB (C)

MySQL (C)

PostgreSQL (C)

Cloudant

JazzHub

App Performance Monitoring

Built-in GIT

Built-in Web IDE

SSO & Login

Data Cache

Session Cache

Elastic MQ

Rules

Log Analysis

Redis (C)

RabbitMQ (C)

Run-Times

Liberty for Java™

Node.js

Ruby (C)

PHP (C)

Charts & Reports

IOT Services

http://ibm-bluemix.coderpower.com

Wants flexibility in language runtimes

Familiar with web/browser based tooling

Priority is getting code up and running as quickly as possible

Looking for a rich set of development services, including: database, messaging, analytics, and mobile

Interested in the community and participation levels

Robust DevOps application lifecycle management tooling and pattern based deployment automation

How to identify:

BlueMix

Companies using Bluemix today

34

Retail

Reduction of operations

costs by 30% - focusing on

apps and code, not

infrastructure.

Hospitality

MQA service reduced defect

resolution time by up to 300%.

Mobile push service allowed

customer to avoid writing

custom code.

Transportation

From zero to implementing

a mobile app from a database

on premise

in 15 days.

Healthcare

Increases time to market for

new customer delivery by 35%.

Value realized in days, not months.

Technology

Deployment of new

customer from 2 days to 30

seconds.

Retail

Selected IBM as a strategic

partner for building engaging

apps.

BlueMix will be delivered via our global footprint of IBM SoftLayer in 2014, as well as on-premise solutions

INDIA

CHINA Tokyo

Hong Kong

Singapore

Melbourne

Seattle

San Jose

Los Angeles

Mexico City

Denver

Chicago

Dallas

Houston

Toronto Montreal

BRAZIL

New York City

Washington D.C.

Miami

London Frankfurt

Amsterdam

Paris

Sydney

Atlanta

DATA CENTER & NETWORK POINT OF PRESENCE

NETWORK POINT OF PRESENCE

40 data centers by end of 2014

$1.2B new investment in 2014

15 new data centers in 2014