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Digital Transformation by Richard Baird

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  • 1. Richard Baird IBM, Vice President, WW WebSphere Technical Sales and Competitive Initiatives Capabilities for efficient & effective Government digital transformation February 26, 2014 © 2014 IBM Corporation
  • 2. Our integration needs are expanding and growing… Systems of Interaction Systems of Record 2 Systems of Engagement
  • 3. What  are  Systems  of  Engagement?   Focus on getting closer to citizens, empowering Government Deaprtments to deliver superior service, and leveraging intraGovernment relationships to create more value Gov’t Dept Citizens Intra-Gov’t Social data Web apps Cloud SaaS apps Location based apps 3 Mobile apps Internet of Things
  • 4. When  Systems  of  Engagement  are  unplugged   they’re  not  very  engaging…   Example: Customer uses Mobile app to interact with Government Services ü  ü  ü  ü  ü  4 Can  see  my  tax  return   Can  find  my  address   Can  see  passport  form   Can  check  flight  status   Can  see  car  speeding  fine   û  û  û  û  û  Can’t  change  my  tax  return   Can’t  change  my  address   Can’t  submit  passport  form   Can’t  change  flight   Can’t  pay  car  speeding  fine    
  • 5. Systems  of  Interac=on   §  Bridge tomorrow’s innovations with those powering the businesses today §  Bring together Systems of Record, of Engagement and Internet of things §  Shift toward ‘as a service’ approach for IT to deliver value to the business §  Transform insight into rich, pattern-based interactions, transactions, processes Systems of Interaction 5
  • 6. “Simply good design” principles §  Service orientation at the core §  Process integrity at internet scale §  Integration with enterprise capabilities and back-end systems §  Based on industry standards §  Leveraging and extending open source technologies §  Providing the platform for a growing ecosystem “The beauty of SOA…is that we can change our components as needed, seamlessly…it might be a business process or a whole new business model.” -Phil Mumford, CEO, Queensland Motorways “Make SOA a prerequisite architecture. It's time to breathe new life into your SOA initiative, this time by focusing on architecture instead of technology.” -Gartner Application and Integration Platforms Key Initiative Overview July 22, 2011 6
  • 7. IBM Systems of Interaction Portfolio Industry  PaEerns   Decisions  &  Analy=cs   Rules   Situa=ons   Internet  of   Things   Analy=cs   Business  Process   Human  Tasks   Workflow   Service   Dev  Ops     Build     Service   Service   Collaborate   Service   Integra=on  Bus   Transform   Route   Choreograph   Manage   Govern   Mobile   Integra=on   Gateway     Secure     Cloud   Scale   Connect   Messaging   Deliver   APIs   Social  &     Web   Partners   Hos=ng   Applica=on  Founda=on   Systems  of  Record   7 Data   Systems  of   Engagement  
  • 8. Delivering  Systems  of  Interac=on   Integra(ng  Systems  of  Engagement  and  Record     Control and manage services Systems of Interaction Scalable and robust applications Build, run and test Mobile applications Integrate virtually any applications Expose APIs to drive innovation Synch SaaS and On Premise data 8 Integrate and secure across boundaries Real-time awareness from Mobile & Internet of Things
  • 9. Major  US  Police  Department   improves  responsiveness  of     911  Emergency  Services  Unit   Need   •  Get  the  latest  informaCon  to  officers  in   real-­‐Cme  to  improve  responsiveness  and   safety   •  ExisCng  HTTP-­‐based  soluCon  was  slow  and   did  not  push  informaCon  to  officers   Benefits   •  New  Mobile  applicaCon  deployed  in  vehicle   built  with  IBM  WorkLight   •  High  speed,  Low  latency  noCficaCon   delivered  over  MQTT  via  IBM  MessageSight   •  Ensures  Cmely  delivery  of  relevant  data  to   officers   9 9
  • 10. St  Jude  Medical,  improved   pa=ent  care  with  real-­‐=me   medical  device  analy=cs     Need   •  Physicians  needed  beNer  monitoring  of   cardiac  paCents   •  Improve  efficiency  of  checkups   •  Meet  healthcare  data  capture  standards   Benefits   •  Enables  higher  level  of  paCent  care,  early   diagnosis  of  problems     and  peace  of  mind   •  Improves  administraCve  efficiency  and   maintenance   •  Helps  conform  to  standards  and  ease   integraCon  of  data   10 10
  • 11. IBM MobileFirst offering portfolio Industry Solutions" Insurance" Retail" Transport" Telecom" Government" Automotive" IBM & Partner Applications" Application Services" Application Platform and Data & Data Platform" " " Management" " Security" Analytics" " Devices" Network" Cloud & Managed Services" 11 Healthcare" Servers" Development & Integration Services ! Strategy & Design Services " Banking"
  • 12. Rapid multi-platform development using a single shared codebase To the simplicity of one From the complexity of many… •  Multiple sets of tools & frameworks •  Four codebases to develop and maintain Apple 12 Android Blackberry • One development environment • One codebase to develop and maintain Windows Apple Android Blackberry Windows
  • 13. Mobile services simplify how developers build apps using the breadth of MobileFirst Provide a platform experience for MobileFirst content §  Enable developers to glue together services that span the breadth of the MobileFirst portfolio via APIs §  Support for mobile applications on-device or hosted mobile web scenarios §  Common cloud-based on-boarding of mobile applications and solutions Systems of Interaction Composition Differentiate with mobile access to data through deep backend integration §  Simplify mobile integration with enterprise systems of record §  Mobile-optimized API access to System Z, WebSphere, business process, and enterprise data WebSphere Application Server Cloud-based Services Business Process Manager Mobile-Optimized APIs Enterprise Data Cloud APIs On-Premise Enterprise APIs 13 Mobile-Optimized Systems of Record Integration Relational, Big Data, etc. System Z ZConnect
  • 14. Municipality of Venice Enabling smarter tourism The Need: The city of Venice, Italy, wanted to improve the experience of its many tourists, while enhancing the lives of its citizens. It wanted to find a cost-effective way to use existing technology to guide tourists throughout the city, and into less trafficked areas to stimulate business there, and better manage the flow of tourists in the city. The Solution: IBM launched a pilot of a solution called The TagMyLagoon. It is based on IBM Human Centric Solutions open architecture framework that allows users anywhere, anytime to access information about tourist destinations, traffic, accommodations etc., using their own wireless devices, and on the city’s existing WiFi network. The Passive sensors were placed on select locations around the city, denoting points of interest. A user simply takes a picture of a place of interest using his or her mobile phone and the system automatically pushes contextual information and prompts to the user. “We anticipate that the solution will help the Municipality propel tourism and improve the quality of life for both citizens and tourists of Venice.” — Michele Vianello, Deputy Mayor, Municipality of Venice Solution components: What Makes it Smarter: §  IBM Business Analytics Optimization §  TagMyLagoon solution allows users to interact with sensors and devices, helping §  IBM MobileFirst the city to locate and guide tourists, as well as measure, control and eventually predict and optimize tourist flows and routes §  Uses the existing network, the mobiles owned by the users, and a simple localization system resulting in low maintenance and high mass market diffusion 14 §  IBM BPM §  IBM System X
  • 15. Social business begins with the industry-leading platform Smarter Workforce Smarter Commerce Exceptional Customer Experience IBM Employee Experience Suite Kenexa Talent Management Suite Social Networking IBM Connections IBM Notes & Domino Social Edition IBM Sametime IBM Customer Experience Suite Social Analytics Social Content IBM Social Analytics Suite IBM Enterprise Content Management Social Integration IBM WebSphere Portal IBM Web Content Manager Deployment Options IBM SmartCloud for Social Business 15 Dedicated Private Cloud On Premises Hybrid
  • 16. An Association of Municipal Governments" What if local governments could share knowledge and best practices to create smarter cities? ! A Canadian association representing municipal governments is modeling the business of government, enabling multiple cities and city departments to exchange leading methods for delivering services efficiently and effectively within shrinking budgets. " The Opportunity! With close to 75% of Canadians living in cities, an association representing municipal agencies and local governments needed a solution to help metropolitan areas gain insights and share ideas on operating more efficiently and spending more wisely. " What Makes It Smarter! Cities, like people, can improve the way they operate, simply by talking to ! each other. An association of municipal governments is using a modeling toolset to foster collaboration between cities using a common structure and terminology that makes it easy to compare the costs of services. Exchanging information on best practices points out which processes are the most effective and efficient. This gives cities the insight they need to take action that can improve service quality while cutting costs. The cities can then map services to business applications for faster, simpler implementation. " Real Business Results! –  Cut costs by eliminating duplication of services" –  Created greater integration and collaboration of services, enabling smarter allocation of resources" –  Determined common performance measurement across municipalities to discover best practices in service delivery" Solution Components! •  IBM Connections" •  IBM Rational System Architecture" •  IBM Government Industry Framework" 16 “A smart city makes well-informed decisions in order to provide services to residents in the most efficient and costeffective way possible. We create smart cities by allowing departments to freely share information, ideas and best practices.”!
  • 17. Typical Process Challenges without BPM Customer! Service! Account! Administration! Executive! Management! 1 3 6 1 1.  Unstructured Tasks and Communication (ex Paper or email)" 2 2.  Inefficient Working Environment Spans Systems" 3 3.  Inconsistent Prioritization" Invoice! Reconciliation! Teams! 4 4.  Incomplete or Inaccurate Data Flow Between Systems" 2 4 5 Finance and Ops! 5 5.  Lack of Control Over System and Business Events (Exceptions)" 6 6.  Poor Visibility Into Process Performance" " 17
  • 18. BPM Brings Order to the Chaos Finance! and Ops! Executive! Management! Reduce errors and improve consistency" 3.  3 Standardize resolution across geographies" Leverage existing systems and data" Monitor for business events and initiate actions" 6.  6 Customer! Service! 2.  2 5.  5 Risk Management
 Teams! Automate workflow & decision making" 4.  4 Account 
 Administration! 1 1.  Real-time visibility and process control" Customer Benefits:" ü  Huge Reduction in Manual Work, Errors" ü  Faster, More Consistent Issue Resolution" ü  Easier to Manage the Business" 18
  • 19. New York State Department of Taxation and Finance What if we could use analytics and process improvements to prevent questionable refunds and optimize tax collection?! Using data, improved processes and analytics is the best way to keep taxpayers doing the right thing. The Opportunity! Because the process to detect questionable refunds was mostly manual, without the necessary case information available for auditors and a limited ability to detect fraud schemes, New York State Tax was losing millions of dollars every year in tax refunds. Once refunds were issued, efforts to recover “pay and chase” refunds often proved fruitless. Likewise, the State was losing millions of dollars in delinquent tax collection because other credit collectors were applying technology to their collection efforts, allowing them to reach available funds first (whoever gets to available funds first usually has the best chance of being paid). " Solution Components! What Makes It Smarter! New on analytics: one ! York State Tax created two new systems based collections. On theto detect questionable returns, and one to optimize delinquent questionable returns, predictive analytics are now built directly into the case processing stream so they can preemptively identify questionable tax returns. They can now identify questionable refund requests with a high degree of accuracy, stopping checks before they go out the door. The collections solution also applies the power of analytics to help determine optimal actions for cases, while providing the right case information and tools to the appropriate teams. The system also takes into account expected rewards, account resource mix and the costs associated with possible actions, thereby optimizing the agency's resources as well as its delinquent tax collection. Real Business Results! §  Reduced questionable refunds $1.2 billion by detecting problems before they issued refunds; an additional $400 million is projected for 2011." §  Using optimization algorithms, they increased delinquent tax collection by $100 million." §  Increased criminal tax fraud investigations by over 350%." §  Reduced mailing costs associated with recovering refunds by 30%; the time to process exceptions by 60%. " §  Fostered a stream of new ideas for improvements through predictive modeling." •  IBM Tax Audit and Compliance System (TACS), IBM Tax Collection Optimization System (TACOS)" •  IBM DB2® 9 for Linux®, IBM WebSphere® MQ Workflow, IBM WebSphere Application Server, IBM InfoSphere® Identity Insight, IBM InfoSphere DataStage, IBM WebSphere Process Server, IBM WebSphere Business Monitor" •  IBM Global Business Services® – Business Analytics and Optimization, IBM Research" 19 Leadership is… Providing a new perspective! “My experience with data and developing audit applications made it obvious to me that our future was in analyzing data to identify noncompliance and pushing the results to the staff with the necessary skills to work the case.”! Nonie Manion, Director of Tax Audits!
  • 20. IBM BPM provides social intelligent dashboards ü  Incidents  Reported,  Gather  and   correlate  process  metrics  and   business  data  for  con(nuous   improvement   1.  Single  BPMN  model  drives          monitoring  as  well  as  execuCon     2.  Data  analysis  performed          conCnuously  on-­‐the-­‐fly   3.  Real-­‐Cme  visibility  to  tasks,            SLAs  that  may  be  in  jeopardy   20 §  Social,  Ac=onable  Coach-­‐Based   Dashboards    provide  visibility  into   work-­‐in-­‐progress  and  the  ability  to   take  correcCve  acCon  when   necessary    
  • 21. Advanced Business Monitoring Identify trends, forecast events, make smart choices Understand up-tominute business performance by monitoring KPIs Detect, respond rapidly to change Customize dashboards easily Continuously improve key business processes Rebalance human workload on the fly Leverage mobile devices 21 21
  • 22. US Department of Justice (DOJ) Real-time financial management facilitates smarter government spending The Need: The financial management of the U.S. Department of Justice functions through core disparate, non-integrated systems, within each of the Department’s Component organizations. Lack of central visibility into the Department’s financials make it difficult to find and allocate funds for critical needs. For instance, in 2005, it took almost two months to identify available funding needed to support Hurricane Katrina-related initiatives. The Solution: The Unified Financial Management System (UFMS), implemented by IBM Global Business Services, will be the core standard financial and acquisitions solution for DOJ. IBM is helping DOJ Components build upon the UFMS core to develop Component-specific workflows, reports, interfaces, business processes and reference data to meet their business needs. As part of the UFMS solution suite, the UFMS Dashboard provides near real-time data and analytics and “at-a-glance” information to Department managers. What Makes it Smarter: §  Available Department funding will be quickly identified, analyzed and directed towards time-sensitive initiatives, such as hurricane relief efforts, replacing processes that currently takes weeks §  Enables DOJ to exercise near real-time, centralized financial management oversight, resulting in more accurate and timely responses to Congressional and White House requests §  Tailored reports on specific spending items will allow for instantaneous knowledge on information most critical to the Department, ultimately improving managerial decision-making 22 “UFMS will provide a single reporting system for decision making, enabling the Department and its Components to make smarter financial decisions.” — Ken Klaus,  UFMS Deputy Program Manager,  Department of Justice Solution components: §  IBM Global Business Services: GBS Financial Management: Finance Enterprise Applications §  IBM WebSphere Business Modeler §  IBM Cognos 8 BI
  • 23. Decision Visibility & Comparison Both  content  and   Proper=es  changes  are   tracked   Graphical  difference   display   The  item  selected  in  the   summary  is   automa=cally  highlighted   23   23
  • 24. A tax collection authority in Latin America! ! What if a country could raise tax revenue by 8 percent with a simple questionnaire? ! The federal tax collection authority in one Latin American nation turns 7,000 tax business rules into simple 30- to 60-item online questionnaire, enabling the country to earn more revenue, see who is paying their taxes, and crack down on evaders" The Opportunity" What Makes It Smarter" One Latin American nation has long struggled to collect federal tax revenue from its citizens. Despite having more than 25 million taxpayers on its rolls, tax revenue comprised only 10.4 percent of the country’s gross domestic product. In contrast, the average among Latin American countries is 20 percent, with some countries taking in much more revenue than that. Part of the reason tax revenue was low was that the complexity of the tax code—with more than 7,000 tax-related business rules and policies that were constantly changing—made it difficult for taxpayers to calculate what they owed, much less pay it. The country needed a simplified, accountable way for taxpayers to register with the government and calculate taxes." No average taxpayer can navigate a tax system with more than 7,000 business rules that change constantly. However, most taxpayers can answer a simple questionnaire. A federal tax-collection authority in Latin America used business rules management to integrate those thousands of rules into a 30- to 60-item questionnaire. Taxpayers can register and answer the questionnaire on a web portal. The questionnaire dynamically determines questions based on previous answers, and based on answers, the rules engine behind the scenes calculates taxpayer status, amount of tax owed, and provides feedback and guidance to taxpayers about next steps. Tax status is easy to adjust, as is the questionnaire when tax laws and policies change. Since implementing the portal, tax revenue is up 8 percent, the country has registered a half million new taxpayers, and the cost of tax collection has gone down. What’s more, for the first time, the country has an accurate electronic record containing data on taxpayers and taxes paid that it can use to find tax evaders and lost revenue.
 " Real Business Results! •  Increased tax collection revenue by 8.1 percent income-tax revenue by 12.9 percent" • Grew the tax percentage of the GDP by 4 percent, the largest growth in 13 years" • Added 544,000 new taxpayers to the database, with most self-registering" • Reduced the cost of tax collection from 1.5 percent of each peso collected to 0.9 percent" Solution Components! •  ILOG JRules" •  IBM Software Services - Software Accelerated Value Program" IBM® " 24 WebSphere® " " So much revenue was falling through the cracks because of confusion about the tax code. This solution simplifies the tax collection process and helps ensure that people pay their fair share. !
  • 25. Kingdom of Saudi Arabia Transforming citizen services to improve quality of life The Need: With most government processes delivered manually, agency staff found it could take days and weeks to respond to citizen inquiries. The Kingdom of Saudi Arabia sought to replace these cumbersome, time-consuming processes, with anytime, anywhere services that would improve its interaction with citizens. The Solution: Working with IBM and IBM Business Partner Saudi Business Machines, the Kingdom of Saudi Arabia implemented a new communication and security infrastructure that automates business processes, increases agency collaboration and provides citizens with online, voice and mobile device access to government services. Based on a service oriented architecture, nearly 1,000 processes, including unemployment services, work permits and government payments will be deployed as anywhere, anytime electronic services. What Makes it Smarter: §  Fundamentally transforms the interaction between the Saudi government and the people to help to improve quality of life for citizens §  Anywhere, anytime access enables government to reduce response time from several days to minutes §  Greater collaboration improves efficiency of government agencies and increases staff productivity “IBM is helping us realize our vision for smarter government, dramatically simplifying citizens’ interactions with government agencies while increasing overall efficiency.” — Kingdom of Saudi Arabia Solution components: §  IBM® DB2®, IBM Rational® Software, IBM Tivoli® Security Solutions, IBM Tivoli Automation Solutions, IBM WebSphere® Software, IBM WebSphere DataPower® SOA Appliance §  IBM System p®, IBM System x®, IBM HTTP Server §  IBM Global Business Services, IBM Global Technology Services, IBM Software Services for WebSphere, IBM Internet Security Services, IBM Research §  IBM Business Partner Saudi Business Machines MAM NUMBER 25
  • 26. IBM Pattern Engine Strategy: A Foundation for Cloud Applications Lifecycle Software … Integrations & Accelerators Clients Need… Smarter Process Dev & Test Tooling Business Analytics DevOps Mobile Social Big Data Cloud Services Built With… Enhanced open standards support Composed From… TOSCA Pattern Engine CloudOE CloudOE Deployed Into… Private 26 Hybrid Public
  • 27. A new family of expert integrated systems For  clients  seeking  an  integrated  approach  to  their   infrastructure  pla>orm   § Integrated  Infrastructure  System   with  built-­‐in  infrastructure   paNerns   § Factory  integraCon  and   management  of  compute,     storage,  networking,  and     systems  infrastructure     § Cloud-­‐ready  infrastructure   § Entry  configuraCon:   For  Power   •  8  cores   •  64GB  memory   •  5.2TB  of  storage   For  x86   •  4  cores   •  8GB  memory   •  2.8TB  storage   27 For  clients  seeking  an  integrated  approach  to  their   infrastructure  pla>orm  and  their  middleware  pla>orm   § Integrated  ApplicaCon  Pla^orm  with   built-­‐in  infrastructure  and  pla^orm   paNerns  and  support  for  applicaCon   paNerns   § Factory  integraCon  and   management  of  both  the   infrastructure  and  middleware   pla^orms   § Cloud-­‐ready    applicaCon  pla^orm   § Fully  enCtled  middleware  pla^orm   including  DB2  and  WAS     § x86  and  Power  configuraCons:     •  32-­‐608  cores   •  500  GB  memory   •  22-­‐56TB  storage    
  • 28. Focused on infrastructure flexibility Non-­‐ virtualized   workloads   Virtualized  workloads  (virtual   appliance,  systems)     ApplicaCon   pla^orm   from  IBM   and   partners   Client     Star=ng     Point       Client/partner-­‐tuned  applicaCon/   middleware  workloads   Infrastructure       §  Integrated  server,   storage,  network     Expert   Integra=on     28 §  Power  management   §  Storage  and  VM   OpCmizaCon   §  Provisioning   §  Security   §  Infrastructure  lifecycle   management   §  System  design   §  Infrastructure  paNerns   §  …and  more   Focused on application time to value Virtualized  workloads     (virtual  appliances,   systems)     ApplicaCon  paNerns  from   IBM  and  Partners   Applica'on  Pla,orm     §  Middleware  integraCon  and     opCmizaCon  including  DB2     and  WAS   §  ApplicaCon  aware/centric     management  &  provisioning     §  AutomaCon  &  self-­‐service   §  Caching  and  elasCcity     §  Usage  metering   §  License  management     §  ApplicaCon  Security     §  Monitoring     §  IT  lifecycle  management  and   maintenance   §  Pla^orm  paNerns     Infrastructure   •  Built  in   experCse   •  Infrastructure   management,   monitoring,   and   virtualizaCon       §  Integrated  server,  storage,   network     §  Power  management     §  Storage  and  VM   OpCmizaCon   §  Provisioning   §  Infrastructure  Security   §  System  design   §  Infrastructure  paNerns   §  …and  more   •  Built  in   experCse   •  Pla^orm   management,              monitoring,   and   virtualizaCon     Client  Star=ng     Point       Expert   Integra=on    
  • 29. IBM PureApplication System patterns of expertise add unique value Labor Hours Spent* 10000 How does PureApplication System do this? 9612 hrs Deployment § Patterns of Expertise Incident/capacity Mgmt Asset Management Security Management Change Management 5000 110% More 76% Less 153% More 5815 hrs 4843 hrs 2302 hrs 0 Do It Yourself PureApplication System Coalition Competitor Pre-integrated Competitor *Note: Coalition competitor used 9 competitor blades (144 cores). Pre-Integrated competitor used 18 pre-integrated nodes (288 cores). IBM PureApplication System used 3 nodes (96 cores). Each system has the capacity to run 72 workloads where each workload can sustain a peak throughput of 1720 page elements per second. This is an IBM internal estimated labor study based on modeling customer data on IBM hardware and software solutions and on competitor converged solutions designed to replicate typical IBM customer usage in the marketplace. It is not a benchmark. As such, customer applications, differences in stack deployed and other systems variations may produce different results and may vary based on actual configuration, applications, specific queries and other variables in a production environment based on published standard labor rates for IT staff. 29
  • 30. Sample virtual application – pattern to instance Virtual Application Pattern Scaling Policy Application deployer Application Functional requirements Non-functional requirements Proxy Service Proxy Service WebSphere Application Server WebSphere Application Server Existing user registry Routing Policy Application Monitoring, Life cycle management Existing DB2 Existing LDAP WebSphere Application Server Caching Service 30 Existing Database Caching Service
  • 31. Virtual Application Builder using IBM pattern engine Drag assets onto the canvas to define application and related resources 31 Define cross-component links and add policies; respond to warning messages to build well-formed applications Specify configuration details for components, policies, and links
  • 32. PureApplication on SoftLayer Dynamic Hybrid Capabilities speed transition to Public Cloud Client Value Client Need ODM •  Rapid application and middleware deployment •  Re-use of existing on-premise investments •  Off-premise economics with onpremise control Business Intelligence Worklight WAS, Java Network 32 Agility via pattern modularity •  Simplicity Flexibility via pattern re-use Cost Savings DB2 on Pre-Integrated Systems on BYOH* Storage •  •  Exposed as Cloud OE Service Portal Time to value •  Compute •  BPM Orchestration
  • 33. IBM contributions to Open Source go back 10+ years 1999 - 2001 § IBM forms Linux Technology Center § Leads Apache projects Xerces (XML4J), Xalan, SOAP 2002 - 2003 2004 - 2006 2007 - today §  Linux contributions to scalability (8-way+), reliability (stress testing, defect mgmt, doc) §  IBM and Novell/SUSE achieve security milestone (EAL4+ and COE compliance) §  IBM leads Open AJAX initiative and announces partnership with the Dojo Foundation §  Leads Apache projects: Web § Creates OSI-approved Services (WSIF and IBM Public License WSIL), Pluto (Portlet API) and WSRP4J § Strategic participation (Remote Portal) in Mozilla §  Leads Eclipse § IBM becomes projects GEF founding member of (editing), EMF OSDL (modeling), XSD § Founder of Eclipse.org (XML Schema), Hyades (testing), and Eclipse Visual Editor, AspectJ, Consortium Equinox rich client § Creates internal §  Globus Toolkit bazaar using OSS contributions for methodology OGSA, OGSI 33 More than 1000 IBM developers involved in OSS projects §  Leads Apache Tuscany project §  Eclipse Foundation, Inc. becomes independent - IBM contributes UML2, §  Contributes code for security Voice Tools, Aperi, COSMOS, Ajax management to Eclipse Higgins Toolkit Framework §  IBM contributes to Apache Lucene project and announces OmniFind §  Globus Toolkit 4 is WS-I compliant Yahoo! Edition §  Pledged 500 patents to open source §  IBM joins OpenOffice.org §  Partner with Zend PHP §  IBM joins Open Health Tools, moving code for medical record management from Eclipse OHF §  IBM enhances Apache partnership - Contributes Derby database - Contributes voice recognition - Supports Geronimo J2EE project - Acquires Gluecode for skills §  IBM contributes accessibility code to Firefox IBM leads 80+ OSS projects §  Contributes Open Services for ALM – Jazz REST Services samples §  IBM creates ODF Toolkit Union §  Contributes Lotus Notes/Domino app templates to OpenNTF.org §  Incubates Apache Wink (JAX-RS) IBM contributes to 150+ OSS projects
  • 34. WebSphere takes advantage of the Open Source Apache Aries 34
  • 35. IBM’s approach delivers innovation and flexibility Leverages 100+ Open Source Packages Liberty Leverages 100+ Open Source Packages 35 Leverages 70+ Open Source Packages Leverages 40+ Open Source Packages
  • 36. •  Software license & subscription costs1 •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  Hardware and networking costs Downtime costs (planned and unplanned) Upgrades cost SLA penalties Deployment cost Operational support cost (day to day operations) Performance costs Cost of selection of the vendor software Requirements analysis cost Developer, admin and end-user training cost Application design and development costs Cost of integration with other systems Quality, user acceptance and other testing costs Application enhancements and bug fixes cost Replacement costs Cost of other risks (including security breaches) (1) Source: http://users.jyu.fi/~koskinen/smcosts.htm 36 <10% 90 %
  • 37. Considerations often forgotten… Backwards compatibility Reliability Availability Data integrity Scalability Security TCO vs. TCA Documentation Manageability Value add products Support Automation 37 Platform support Localization Integration Performance 3rd party components
  • 38. Clients struggle to overcome barriers of time, cost and risk Source: Forrester Consulting Typical IT Project Time and Budget Top Causes of Project Delays Phase Hardware Troubleshooting and tuning production environment Time (days) Budget Specify/design 73 - 96 14% - 16% Procure 57 - 112 19% - 21% Implement 74 – 93 12% Configure/test 74 – 80 10% - 11% Cluster & HA 66 – 104 11% - 12% Backup 44 – 108 10% Tune 89 – 98 9% - 10% Management 67 – 110 9 – 10% 34% of new IT projects (US) deploy late 38 45% Integration, configuration and testing of the infrastructure Installation, cabling and network access for the environment Software Integration, configuration and testing of applications Integration, configuration and testing of middleware Configuration, build and deployment of applications 45% 29% 41% 35% 34%
  • 39. TCO study: WAS ND 8.5 vs. JBoss EAP v6 Conclusion: JBoss is 35% more expensive over 5 years compared to WAS ND TCO Category Hardware $ Training $ Software License $ Software Support $ Application Management $ Infrastructure Management $ Risk and Downtime $ Total $ 39 Source: Based on the study by Prolifics, December 2012 IBM 2,060,934 84,375 2,623,920 2,008,815 759,492 1,533,834 9,071,370 Red Hat $ 3,114,308 $ 171,998 $ $ 1,821,316 $ 2,570,500 $ 2,301,566 $ 2,268,548 $ 12,248,235 RedHat as % of IBM 151% 204% 0% 91% 338% 150% n/a 135%
  • 40. IBM WebSphere 11 years of performance leadership IBM track record §  Held the most records in ECPerf §  FIRST to publish SPECj2001 §  FIRST to publish SPECj2002 §  FIRST and ONLY company to publish SPECj2002 Distributed §  FIRST to publish SPECj2004 –  Was the only vendor to publish for over 13 months, held #1 spot for most of the time SPECjEnterprise2010 EjOPS per processor core (i.e. transactions per core) IBM: 823 Oracle: 449 Oracle Sun SPARC T5-8 vs. IBM Power7+ hardware1 §  FIRST to publish SPECjEnterprise2010 –  LOWEST cost per transaction –  BEST performance per core 681 313 Oracle Sun SPARC T4-4 vs. IBM Power7 hardware2 §  WAS is 17% faster per core on Intel Sandy Bridge at half the cost compared to WebLogic1 §  WAS is 83% faster per core at almost half the cost on Power7+ compared to WebLogic on SPARC T52 40 606 519 16 cores of Intel Sandy Bridge Xeon E5-2690 processor3 524 452 12 cores of Intel Westmere Xeon X5690 processor4 (1) SPEC and SPECjEnterprise2010 are registered trademarks of the Standard Performance Evaluation Corporation. Results from www.spec.org as of 04/04/2013 Oracle SUN SPARC T5-8 449 EjOPS/core SPECjEnterprise2010 (Oracle's WLS best SPECjEnterprise2010 EjOPS/core result on SPARC). IBM Power730 823 EjOPS/core (World Record SPECjEnterprise2010 EJOPS/core result), (2) Results from www.spec.org as of 04/29/2012 Oracle SUN SPARC T4-4 313 EjOPS/core SPECjEnterprise2010 (Oracle's WLS best SPECjEnterprise2010 EjOPS/core result on SPARC). IBM Power780 681 EjOPS/core (World Record SPECjEnterprise2010 EJOPS/core result), (3) Results from www.spec.org as of 11/14/2012 Oracle SUN Fire X4170M3 519.39 EjOPS/core SPECjEnterprise2010 (Oracle's WLS best SPECjEnterprise2010 EjOPS/core result on Sandy Bridge). IBM WAS 8.5 System x3650 M4 Intel Sandy Bridge EjOPS/core (World Record SPECjEnterprise2010 EJOPS/core result) (4) Results from www.spec.org as of 04/29/2012 Oracle SUN Blade Server X6270 M2 452.285 EjOPS/core SPECjEnterprise2010). IBM Websphere HS 22 Blade 524.621 EjOPS/core.
  • 41. IBM Software Capabilities Business Need Capitalize on Big Data to Act and Know Capabilities §  §  §  §  §  §  Business Analytics Data Management Big Data Data Warehousing Enterprise Content Management Information Integration & Governance Business Need Speed Delivery of New Products and Services Capabilities §  §  §  §  §  §  §  Serve Customers, Citizens and Employees as Individuals §  §  §  §  §  §  §  §  Social Collaboration Unified Communication Web Experience Commerce Procurement Enterprise Marketing Management Smarter City Operations Talent and Workforce Management Use Cloud to Drive Strategic Change Protect their Brand and Future §  §  §  §  §  §  §  Think MobileFirst §  §  §  Mobile Development & Connectivity Mobile Management and Security Mobile Insights and Analytics §  Connectivity, Integration and SOA Application Infrastructure Business Process Management Application Lifecycle Management Complex and Embedded Systems Enterprise Modernization Expert Integrated Systems Cloud & IT Optimization Asset & Facilities Management Enterprise Endpoint Management Application Security Data Protection Identity & Access Management Infrastructure Protection Security Intelligence & Compliance Analytics 41 41
  • 42. Backup 42
  • 43. According to Gartner, IBM holds #1 position in the middleware software for the past 11 years YTY growth rank share rank share Total middleware market ($19.4 Billion) 9.9 % #1 32.1 % é BPM ($2.4 B) 9.7 % #1 27.1 % é ESB ($2.4 B) 7.9 % #1 31.5 % é B2B ($0.8 B) 4.4 % #1 20.5 % é Portals ($1.7 B) 10.3 % #2 27.8 % é MOM ($1.2 B) 9.3 % #1 76.5 % ê - TP Monitors ($2.1 B) 0.3 % #1 83.4 % é - Appliances AIM ($0.18B) 7.0 % #1 34.1 % é - App Servers ($3.9 B) 19.2 % #2 33.5 % é #7 2.1 % é Other AIM ($4.3 B) 8.9 % #5 2.8 % ê # 32 0.2 % é # 16 0.6 % é - # 12 0.3 % é - #6 1.3 % é é  - increased YTY share ê - lost YTY share 43 Source: Gartner, G00233638, Market Share Analysis: Application Infrastructure and Middleware Software, Worldwide, 2011. Published April 23, 2012 World-wide ranking based on 2011 total software revenue according to Gartner
  • 44. Scalable and robust 1applications IBM WebSphere Application Server Key Capabilities •  Application server types from very lightweight to highly resilient •  Exploits mobile technologies to enable you to reach new clients and markets •  Highly resilient, secure and scalable application runtime •  Easy and no-charge access; Lightweight developer friendly tools Business Value •  Increase developer productivity •  Make more efficient use of computing resources •  More responsive, resilient applications •  Faster time to value for new applications 44
  • 45. Scalable and robust 1applications IBM WebSphere MQ Key Capabilities •  Reliable delivery of business data •  Dynamic distribution using pub/sub •  End-to-end Message-level encryption •  Integrated managed file transfer •  Exploits z/OS for continuous availability •  Support for virtually any commercial IT system – over 87 environments Business Value •  Preserve integrity of business data •  Do business anywhere •  More responsive, resilient processes •  Faster time to value for new applications 45
  • 46. Real-time awareness from Mobile & Internet of Things IBM MessageSight Key Capabilities Business Value •  High speed messaging optimized for Mobile and Internet of Things devices •  Track, monitor and manage devices •  Easy to develop using JavaScript •  Rapid time to value – running in 30mins •  Support for Web sockets, Android, iOS •  8x efficient network bandwidth vs. HTTP •  DMZ-ready, FIPS 140-2 certified •  10x less Mobile battery use vs. HTTP •  Real-time feed into InfoSphere Streams 46 •  Scales to masses of concurrent devices
  • 47. Integrate virtually 2 any applications IBM Integration Bus Enterprise service bus technology for rapid mobile-enablement of existing applications and services Key Capabilities • Complete  enterprise  service  bus     • Hetrogeneous  integraCon   • Rapid  PaNern-­‐based  integraCon   • Rapid  mobile  integraCon   • Built-­‐in  applicaCon  adapters     Business Value • Accelerate  integraCon  of  systems   • Increased  IT  flexibility   • Preserve  integrity  of  transacCons   47
  • 48. Integrate and secure across boundaries IBM DataPower DMZ ready appliance for mobile, allowing you to rapidly secure and optimize new mobile client access patterns to back-end systems and data Key Capabilities •  Scalable DMZ-based authentication •  Reverse proxy with protocol translation •  Transformation, routing, session affinity •  Intelligent load balancing •  Policy-driven enforcement •  Integrated caching Business Value •  Hardened security for mobile access •  Rapid deployment and change mgmt 48
  • 49. Expose APIs to drive innovation IBM API Management Key Capabilities •  Easy API creation from existing services •  Compose APIs by integrating services Grow revenue through new channels Creation •  Manage complete lifecycle of API Deliver a differentiated client experience External APIs •  Secure and control access to APIs •  Robust business analytics of API use Consumption Partner APIs Business Value Assets & Services 49 •  Assembly •  Transformation •  Rationalization Application End Points Internal APIs •  Discovery •  Composition •  Deployment •  Rapidly establish presence in new API economy •  Nurture innovation by rapidly building community of developers, entrepreneurs and partners