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Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible
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Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible

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Dynamic Infrastructure – Energy Efficiency Helping Midsize Companies Reduce Cost and Become more Environmentally Responsible

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  • Issues and opportunities around energy, the environment, and sustainability impact every individual and every business, worldwide. Every boardroom faces a dilemma on how to generate more business, lower costs and be responsive to the growing pressures to be “green”. Clients are facing issues which fall into the following categories: IT efficiency : energy use in IT is escalating at a rate which is not sustainable. Energy costs have become a sizable and growing portion of the overall operational costs. The utilization rates of the IT infrastructure are very low – typically 15% in distributed environments. IT Facilities constraints: clients are running out of data center space. They cannot get any more power from the Utility company to meet their data center growth demands. They are hitting limits in data center facility cooling infrastructure. They are facing costly capital upgrades and new data center build-outs. Energy Management: IT shops are unsure of what their actual energy usage is. They have no visibility into the energy use and have no way to control it. Green strategy: Companies are looking to demonstrate environmentally responsible practices to their customers, stockholders, supply chain partners and employees. They want to define an overall green IT strategy to contribute to the corporation’s green objectives.
  • The need to improve the energy efficiency of the IT and business infrastructure clear. IDC estimates, in this decade, the average customer will have increased their server capacity by six times and their average storage capacity by 69 times. As a result, all of those devices are using more energy and we’ve seen energy use double over the last five years. And that projected increase is expected to continue. Over the next five years, IT energy expense is projected to increase 35%.. We have had the opportunity to work with over 3000 customers around the world since the middle of 2007 when we launched IBM Project Big Green. And what we’ve found from those customers who have quantified results is that they can on average reduce their energy costs by more than 40%. And every dollar in energy saved can drove $6-8 in operational savings. We have seen customers defer capital expense by extending the life of their existing IT infrastructure and data centers. So the benefits are clear..by focusing on energy efficiency, customers can drive significant operational and capital investment savings. Companies are operating in a new regulatory environment, one that sets more stringent controls over energy and water consumption, greenhouse gas emissions, the use of hazardous substances and waste disposal. 59 countries and jurisdictions have, or are pursuing mandatory cap and trade systems. In fact, 82% of CEO’s expect some sort of climate change regulation within the next fives years. IBM offers solutions to help our clients measure, manage and report energy consumption as they prepare for the emerging regulatory environment. It is important to note that it is not just about inefficiencies in the IT infrastructure. According to the International Energy Agency, buildings account for 40% of worldwide energy consumption and it is estimated that approximately 30% of that energy is wasted. So while there are tremendous benefits to be gained in IT, it only represents a modest percentage of the infrastructure and the bigger opportunity lies outside the four walls of the data center.
  • Main point: Benefits of going green. Talking points: When you go green, the four main advantages are a reduction in IT and energy costs, the regaining of power and cooling capacity, the recapture of resiliency and the recycling of end-of-life equipment. Obviously, these aren’t the only benefits from transforming your IT infrastructure into a cost-effective, energy-efficient part of your business. They are, however, reason enough to take the first step. What’s good for the environment also makes good business sense for you and your overall corporate strategy. Transition: So where are you on the road to “going green?”
  • Main point: Ask yourself these questions. Talking points: The questions on this slide represent just a small sample of areas you can consider as you work to improve your energy efficiency and address environmental concerns. Your answers will provide a good understanding of how much improvement you can make to your IT infrastructure, to the management and operation of your server room and to the management of your old and unused IT assets. Transition: System performance, space considerations and operating costs are issues that you face daily. Once you know the limitations and constraints of your current IT infrastructure, it’s easier to set goals and map out the best way to achieve them.
  • Main point: Main point: “ Going green” with your server room. Talking points: Let's face it: Using less energy benefits your business as a whole. You save money on power costs, your IT infrastructure is more efficient and you can get more work done faster—all while helping protect the environment. By addressing an economic necessity, you're also addressing an environmental imperative. IBM’s energy efficiency portfolio, skills and services can help your server room reach maximum computing power through less energy consumption, and in addition, we can put your company on the path to a greener workplace. IBM offers a comprehensive approach to helping organizations develop energy-efficient, cost-effective and environmentally responsible green infrastructure. IBM’s approach addresses three essential elements of a green server room: Build: Evaluate your existing IT infrastructure for operational and energy efficiency, and plan or update IT infrastructure to reduce operational costs, be more efficient and comply with government and industry regulations. Virtualize/Simplify: Virtualization consolidates work onto fewer computers, increasing utilization which can significantly reduce energy and maintenance bills and simplify your IT infrastructure while delivering more computing power to your mid-sized server room. Manage: Deliver operational efficiency to reduce server heat output and reduce up to 30% of power consumption on servers automatically. Manage your power consumption and eliminate hot spots to reduce/eliminate outages and conserve energy. Transition: Once you know where you are with your current IT infrastructure, it’s easier to know your strong points and those areas that could use some help.
  • Main point: Build on your current infrastructure. Talking points: You can plan, build or prepare for facilities upgrade or growth to a green server room based on IBM best practices and innovative technologies in power and cooling to improve operations and reduce budget squeezes. The following IBM solutions and products can help you: IBM Lab Services Server and Storage Power/Cooling Trends and Data Center Best Practices: This solution provides you with education about best practices for energy efficiency in a server room, gives you insight into the future direction of computing and how it relates to energy consumption and includes a review of the results and discussion roadmaps to get customers on the path to a green IT infrastructure. IBM Scalable Modular Data Center: With this solution, you obtain rapid deployment: Delivery of a fully functional, cost-effective data center in 8 to 12 weeks that may include IBM servers. The IBM Scalable Modular Data Center provides ready racking, power, cooling, security and monitoring at about 15% below the price of a traditional data center. IBM BladeCenter Express or System x family of servers: This efficient system design for energy savings can significantly reduce power consumption by using IBM servers to deliver leading-edge technology that was developed with an emphasis on recognized industry standards, while providing the flexibility and scalability that can grow as business grows. BladeCenter servers have 10G Ethernet connectivity inside the system, and these solutions are 95% more energy efficient than external switch solutions. Power Systems: IBM's goal is to provide you the most energy efficient computing environment possible. POWER processor-based systems deliver leadership performance per watt and PowerVM enables consolidation of energy-wasting, underutilized servers. In addition, IBM's POWER6 architecture with EnergyScale technology can provide unique energy management capabilities. These features, enabled through the IBM Active Energy Manager extension of IBM Director™, allow users to measure the power usage of system components and adjust policies toward the energy-efficient operation of the server environment. Transition: Once you’ve built, you need to think – virtually .
  • Main point: Virtualization of data. Talking points: IBM offers comprehensive virtualization technologies that can help you consolidate work onto fewer servers, reduce energy and maintenance bills and simplify your IT infrastructure. By increasing utilization of systems with virtualization, you can significantly increase energy savings. IBM can help you reduce energy and maintenance costs through: IBM Server Consolidation Efficiency Study: Our server consolidation efficiency study is a fixed-price, project-type service that includes an assessment to help define your strategy and direction for creating a consolidated environment from a heterogeneous server infrastructure; business justification support for funding a server consolidation; access to consolidation methodologies and tools, and a center of competency focused on executing consolidation strategies and an actionable foundation for the design, planning, and implementation stages for your server consolidation project. IBM System x BladeCenter Virtualization Solutions : These comprehensive technologies consolidate work onto fewer servers, helping you reduce energy consumption and maintenance bills and simplifying your existing infrastructure, allowing for nearly 100% utilization. IBM Storage Optimization and Integration Services – Scale out File Service): A multilayer, clustered storage virtualization service designed to support storage optimization efforts, SoFS alleviates data storage challenges by enabling quick implementation of a scalable, global, clustered network attached storage (NAS) system. Operational and energy savings are achieved through storage virtualization and consolidation, diskless client environments, NAS islands consolidations, web and application server consolidation, Information Lifecycle Management, and cost effective disaster recovery alternatives. Power Systems: IBM POWER6 processor based servers deliver outstanding performance per watt and innovative virtualization technologies. A feature called Live Partition Mobility provides the ability to move running partitions from one POWER6 server to another providing the capability to conserve power by moving workloads off underutilized servers to achieve optimal system utilization and energy efficiency. POWER6 processor-based systems will be able to work together to help optimize system utilization, improve application availability, balance critical workloads across multiple systems and respond to ever-changing business demands. Transition: After you’ve virtualized, you need to manage your IT environment.
  • Main point: Seize control of your energy consumption and efficiency with active power management software. Talking points: IBM software can help you monitor and control your power usage. Our most recent solutions include: IBM Tivoli Monitoring for Power Management: This power-management solution gives system administrators an integrated view of power, temperature and application performance metrics in the server room. You can manage power on servers or groups of servers either manually or automatically according to a defined policy . IBM Systems Director Active Energy Manager v3.1: This solution can help meter, control and even cap power usage. When combined with POWER6 ™ , customers gain the ability to migrate workloads and eliminate hot spots while moving work off underutilized systems to conserve power. Transition: Now let’s look at some other IBM offerings that can help you save money while facilitating your green initiatives.
  • Energy Management – IBM is unique in helping clients seize control of every resource with energy management software Many clients start by getting the facts on their energy usage; but then want to have on-going visibility to monitor, measure and manage the use. IBM’s System Director Active Energy Manager and the Suite of products from Tivoli Software allow them to do this; working in collaboration with industry leading vendors to link IT and facility and building systems together. IBM® Systems Director Active Energy Manager Version 3.1.1 measures, monitors, and manages the energy components built into IBM systems enabling a cross-platform management solution. Active Energy Manager extends the scope of energy management to include facility providers to enable a more complete view of energy consumption within the datacenter. AEM provides the following functions: Monitoring functions include power trending, thermal trending, PDU+ support and support for facility providers; Management functions include power capping and power savings mode. IBM Tivoli monitoring has introduced the ability to collect and report on power consumption and temperature of resources. Operators can be alerted when critical thresholds are reached so that corrective actions can be taken quickly business services are impacted. Tivoli monitoring is capable of using the power and temperature information to then begin to control the IT infrastructure for power efficiency Tivoli monitoring is capable of collecting power and temperature data from multiple sources. Recent integration with several partners is described on chart 10 Tivoli Maximo Enterprise Asset Management and Spatial visualization capabilities are key elements of a energy management system Maximo Spatial enables visualization of temperature gradients across facilities such as datacenters. Maximo spatial consumes data collected from devices either already in the datacenter or from dedicated sensors. The visualization enables quick assessment temperature and thus the needs of cooling systems. Area’s that are cool can reduce the HVAC energy consumption and areas that are hot need to increase the energy consumption. Instead of relying on expensive and one time only fluid dynamic analysis, customers can utilize the information provided by Maximo spatial to optimize their environments on an ongoing basis Once a customer has built the infrastructure to monitor energy consumption and temperature, that data can then be utilized for multiple purposes as enabled by Tivoli offerings Intelligent chargeback: Utilize power consumption data to charge business service users for they energy consumed. This is an effective way to get an understanding by a broad part of the organization on their energy consumption and begin to change behavior Energy aware provisioning: Enable energy consumption to become a decision factor in provisioning decisions. Provision to underutilized servers in a cooler part of the data center first. In addition begin to move workloads in response to energy costs. Green Business Services: All of the energy management capabilities we have discussed enable IT and business to consume less energy and to in effect deliver greener business services As a part of its commitment to help customers reduce their energy consumption, IBM Tivoli has partnered with several vendors in the industry to enable Monitoring of power consumption and temperate in datacenters and other facilities Control the power consumption by buildings and infrastructure Consolidate workloads to increase utilization of servers Enable benefits of Energy Efficiency certificates. The vendors are listed on the chart above
  • Measurement action can improve the management of energy and consumption in your company First – you have to understand where and how energy is consumed You can’t control what you cannot measure Then you can determine areas of potential savings and put a plan in place to manage and control energy usage Energy savings can be win/win – savings for your company and for the environment.
  • Main point: Other IBM offerings. Talking points: From financing to environmentally safe and responsible disposition of unwanted hardware and software, IBM offers a range of additional services to help you become a true “green business,” including: IBM Global Financing: The financing business segment of IBM, IBM Global Financing, is uniquely positioned as part of Project Big Green to provide a “green wrapper” of financing solutions to help server room owners access or acquire the hardware, software and services they need to build an energy-efficient server room. Easy lease and loan terms also facilitate the planning and tracking of project costs. IBM Global Asset Recovery Services: As part of the effort to protect the environment, IBM Global Asset Recovery Services, the refurbishment and recycling unit of IBM, processes and properly disposes of reclaimed systems. Newer units are refurbished and resold through IBM’s sales force and partner network, while older systems are utilized for parts or sold for scrap. Prior to disposition, the machines are scrubbed of all sensitive data. Any unusable waste is properly disposed of following environmentally compliant processes perfected over 20 years of leading environmental best practices in the area of IT asset disposition. IBM Express Asset Recovery Solution : Using this fast and easy automated online IT asset buyback process, you request a quote for your old hardware resources.   Transition: Let’s take a quick look at how an IBM green IT solution helped a client reduce costs and power usage.
  • Main point: Highlight how an IBM Green IT solution helped a company reduce costs. Talking points: Based outside of Philadelphia, Devon Health is a national healthcare cost-management company. Its core business is the processing of healthcare claims. Because of the complexities involved with claims processing, system reliability during core business hours was a critical concern. Devon Health had been adding servers to keep up with the company's IT demands, creating a mixed-vendor environment that included Dell and HP. Every new application required a new server. About to add two new servers to its IT environment, a company electrician discovered that the system was overloaded and likely had been for some time. Although it had never failed, there was a strong possibility that it might. Instead of purchasing a larger backup generator or finding ways to bring in more power from the street, Devon Health sought an alternative. Devon Health chose to consolidate on IBM BladeCenter®, targeting 28 servers for consolidation, including the two HP servers hosting the company's core enterprise application. This reduced many of the costs and challenges related to traditional desktop environments. As a result, Devon retired enough physical servers that power is no longer an issue. The company also anticipates reducing the number of racks and consoles from seven to two, as well as reducing the number of network connections. The blades have allowed the company to upgrade operating systems, which has enabled them to take advantage of new solutions. Centralized management, along with higher reliability, has also freed up IT resources. Transition: IBM is poised to help you reduce costs by going green. Let’s take a look at some of the reasons why.
  • Main Point: IBM and environmental responsibility Talking points: IBM doesn’t just talk — we take our role as leaders in environmental conservation and responsibility very seriously. A long-standing leader in environmental protection, IBM took early action to establish its environmental affairs policy in 1971: IBM exceeded its World Wildlife Fund Center for Energy and Climate Solutions Climate Savers commitment by achieving an average annual reduction of 5.7% in CO 2 emissions between 1998-04. IBM exceeded its Climate Leaders goals at year-end 2005, achieving an annual average reduction of 6.2% in CO 2 emissions, and an absolute reduction in PFC emissions of over 50%.Our CO 2 emissions are now 44% of what they were in 1990. Our annual corporate environmental reports have been released every year since 1990. We’ve participated in the U.S. Dept. of Energy's Voluntary Greenhouse Gas Emissions Reporting for 13 years (since its inception). IBM reported to the Carbon Disclosure Project for 5 years (since its inception). Independent verified greenhouse gas emissions through WWF Climate Savers, Center for Energy and Climate Solutions, U.S. EPA Climate Leaders, and Chicago Climate Exchange. IBM launched the industry’s first Energy Efficiency Certificate (EEC) program with Neuwing Energy Ventures. IBM launched www.energycommons.com with news about energy efficiency, incentives and rebates (US & Canada). For more information about the IBM Energy Efficiency Initiative, news announced today and access to video and audio interviews with IBM and industry leaders, please visit: ibm.com /press/greendatacenter. Transition: Here are a few facts about IBM’s green commitment.
  • Main Point: Some facts about IBM’s green practices. Talking points: Our commitment to green technologies and environmental consciousness is being recognized throughout the industry. In April, Computerworld selected IBM as the top Green IT Company for 2008. Through the IBM Global Asset Recovery Services, we are making a huge difference both in protecting the environment from the hazards found in discarded IT assets and in helping saving mid-sized businesses to lessen their negative impact on the environment while reducing their IT costs. Take a look at the facts on the slide. In addition to these accomplishments: IBM operations processed over 108 million pounds of end-of-life products and product waste in 2006, and sent less than 1% of that to a landfill. $93M assets were removed by customers worldwide in 2006 – up 10.5% from 2005. Also, from 2002-2005, IBM's asset disposition operations took in and reused over 1.9M machines; processed over 147,000 metric tons of equipment, parts and material and product waste: More than three times the amount of steel used in the Eiffel Tower More than 22 railroad cars of condensed plastic Enough bales of paper to span the Golden Gate Bridge 23 times Equivalent to 150 18-wheeler trucks of non-ferrous materials For more information about the IBM Energy Efficiency Initiative, news announced today and access to video and audio interviews with IBM and industry leaders, please visit: ibm.com /press/greendatacenter. Transition: So, why should you choose IBM?
  • Main point: The strengths of IBM. Talking points: Innovation is at the heart of everything that is IBM. Our goal is to provide solutions that help our clients—large, small and mid-sized—innovate. This principle is demonstrated in our: 30-plus years of innovatively designing, supporting and operating efficient server rooms Proven track record of helping companies in the FSS, Healthcare and Life Sciences fields with strategies for improving energy efficiency, reducing operating costs and keeping up with industry and government regulations and demands Willingness to invest millions of dollars in resources and money to develop offerings, marketing materials, campaigns and advertising to become a leader in green IT and energy efficiency 16 years of practicing what we preach: between 1990 and 2006, IBM’s global energy conservation actions reduced or avoided CO 2 emissions by an amount equal to 44% of its 1990 emissions Transition: (cold transition)
  • Key messages First, Project Big Green is delivering significant client benefits and IBM has delivered on our commitment and we’re continuing to enhance our offerings. There’s no question that we’re continuing to invest the billion dollars a year that we originally defined. We’re enhancing our own data centers. We’re delivering new software, new services and new technology to really deliver that 40 to 50% energy efficiency improvement that we stated right in Project Big Green One. And we’ve got many client examples where they achieve those benefits and want to talk to other customers about it. Second, energy efficiency is a global issue with significant impact today and will have even greater impact in the future. Since we announced Project Big Green One to Project Big Green Two, oil prices have doubled. So the energy efficiency concerns that we saw when we announced in May of 2007 have been significantly accelerated. If you’re in the United States today you’re paying over $4 a gallon for gasoline and last year at this time you were paying less than $2. As data centers are huge user of energy, it is a major focus for us. Third, server room/ data center design must change. It's very clear that data center designs over the last 20 or 30 years have not kept pace with dramatic changes in technology and that customers really are not getting the scalability, the alignment of operating and capital costs to the expensive data centers that they're building today. we are going to announce dramatic changes in the design and building of data centers for the future. Fourth, we're finding that energy efficiency is a key metric to evaluate the overall IT efficiency of an organization. If we can make an organization's IT infrastructure very energy efficient, by nature, we've also made the IT organization very operationally and capitally efficient because they're taking advantage of every IT dollar they spend by increasing their utilization and their use and increasing the basic operational energy efficiency out of every computing ounce that they use. Finally, we continue to experience that these are not solutions that customers have to wait for. They are available today and in many cases, they have immediate financial returns. We've seen as an example in the energy efficiency assessments that many customers are experiencing in general payback periods of two years or less on significant benefits
  • Thank you for your time today! Have more questions? Please contact [seller name] or visit us online at [URLs] .
  • Affordable solutions for all your IT needs—for businesses large and small IBM Global Financing helps you acquire the IT solutions that your business needs in the most cost-effective and strategic way possible. Choose from a variety of financing options to address your unique solution requirements and help manage your cash flow and assets. No other bank or technology company can match IBM and IBM Global Financing for the breadth of our business and technology solutions combined with our significant capital resources. Our portfolio of offerings includes customized or standardized leases and loans, certified, used equipment and hassle-free asset recovery solutions. We can include hardware, software and services from IBM as well as other manufacturers and vendors, in a single financing facility. Other IT vendors and consulting companies must partner with multiple sources to provide the deep global financial and comprehensive strength that IBM Global Financing can deliver. We provide, as an example, payment and term flexibility to help you build the data center or IT infrastructure you need, rather than the data center or IT infrastructure you can afford. IBM Global Financing is the largest IT lender in the world, with an asset base of US$36 billion and a client list that includes more than 90 percent of the FORTUNE 100 as well as organizations with as few as ten employees. With operations in more than 55 countries, we help you manage costs and technologies in a global marketplace. We can provide competitive rates in international currencies, such as the United States dollar or Euro, and in local currencies when needed. And, with an investment-grade credit rating, IBM Global Financing obtains funds at very competitive rates—savings that we share with our clients.
  • Regardless of the state of the economy, clients and business partners must plan, invest, manage and eventually retire their IT solutions if they want to compete and survive over the long-haul. While market and credit conditions are evolving, IBM Global Financing continues to lend to well-qualified customers. IBM Financing Advantage offers a comprehensive portfolio of financing solutions to help address the requirements of the SMB marketplace to fund their IT agendas, maximize working capital, recover technology value and manage risk. For small and mid-size clients, IBM Financing Advantage provides smart financing options ranging from simple leases and loans to customized transactions for IT acquisitions, worldwide, including IBM and non-IBM hardware, software and services. For Business Partners, IBM Financing Advantage offers a rich, comprehensive set of financial offerings, tools and services partners can offer their clients to increase win rate and grow sales. A 2008 IBM Marketing Intelligence analysis* showed that IGF involvement caused a 36% increase in the Odds to Win Business Partner owned Server & Storage sales opportunities in the USA. IBM Market Insights used a statistical technique to determine the “causal effect” of IGF on the Odds to Win. After controlling for the effects of all the visible factors that might affect win rates, IGF involvement stood alone as the cause of the increases in Odds to Win certain types of sales leads. Specifically, for Business Partner owned opportunities worth more than $100K that contained IBM Server/Storage components, when IGF Sales was engaged in pursuing the opportunity, the IGF involvement was found to actually cause the Odds to Win to increase by 36%. Our Rapid Online Financing tool, enables IBM Business Partners or Financing Associates to provide instant financing quotes, request credit approval and generate financing contracts --- all from a web browser, in under an hour without having to contact IBM. Today RoF is deployed in 32 countries and in 17 languages with almost 3500 IBM Business Partner companies and some 8000 users actively enabled on the platform. With Competitive Rates; Buyback, Disposal and Security services along with Tools and Education, Business Partners can build customer loyalty by getting the right solution to their clients faster, and position their business for future growth by bundling their software and services with any transaction. While many lenders have curtailed credit availability in the current economic environment that we're in, IBM Global Financing — backed by IBM’s unmatched resources and our prudent approach to risk — can support your technology investment needs and mitigate your financial risk. Because of the history that we've had, we have the ability to continue in the marketplace and to be more selective and supportive of what our Business Partners need. IBM Global Financing is a trusted partner, with assets of $36B billion worldwide, and 125,000 Clients in more than 55 countries worldwide offering a full complement of financing offerings and asset management services, all designed for small and mid-size businesses to manage your customer’s manage their cash flow, reduce large upfront investments and lower their total cost of ownership to compete, survive and thrive in a capital constrained environment.
  • Increasingly, clients have turned to IBM Global Financing (IGF) to provide funding vehicles with appropriately matched structures to meet business and financial needs. IGF has responded with an On Demand financing solution. Anticipated costs and benefits are mapped out and a financial vehicle is created that allows the firm to meet current obligations for the project with a match funded obligation. IGF essentially becomes the client’s IT accounts payable clerk, only paying those invoices which the client authorizes and providing detailed reports of all of the project’s expenditures. From a practical viewpoint, the project can often be funded from its own future benefits with an appropriately structured financing vehicle. The benefits of IBM Project Financing can best be summarized as providing overall financial and operating flexibility and control, in addition to cost efficiency. IBM Project Financing offers total solution, multi-vendor IT financing with competitive interest rates, resulting in a one-stop solution, including hardware, software and services. Integral to the funding of any project is the relevant interest rate. IGF can provide structures with or without fees, compensating balances or down payments.
  • PC financing can be very beneficial to you, in terms of managing your cash and your assets, through the entire lifecycle of the PC. When you partner with IBM Global Financing, you get a strategic partner who can meet virtually all of your financing needs for both IBM and non-IBM equipment. Specifically, you can benefit in the following ways: Our lease rates are extremely competitive, and can lower your overall total cost of ownership (TCO). We can provide customer-friendly lease and payment options, such as: Customized payment structures tailored to your specific budget requirements. Flexible mid-lease and end-of-lease options that make it easy and cost effective to cascade, upgrade or dispose of your PCs. Flexible billing to fit your budget requirements. In addition to the financing options shown, we also provide: Flexible billing (department, subsidiaries) to fit your budget requirements. Ability to finance all your Lenovo and/or original equipment manufacturers (OEMs) and PCs, regardless of the channel through which it is acquired (IBM sales reps, ibm.com, Lenovo, IBM Business Partners, or other PC vendors), through a single contract. In terms of managing your PC environment, we can offer user-friendly tools that can allow you to view customizable reports on your leased assets, including the ability to view all your assets coming to end-of-lease and to make decisions about their status online. Through our Asset Recovery Solutions program, IBM takes on the responsibility of asset removal. We can provide proper handling of your retired PCs and maximum financial return on any unwanted, marketable PCs. Leasing through IBM Global Financing can also provide a hedge against technology obsolescence, in that you will have the ability to take advantage of the latest technology through scheduled equipment refreshes. We also let you combine all your hardware acquisitions (and software and services, too) into a single contract with a single monthly payment, simplifying both your budgeting and your IT management. And last, you can rely on IBM Global Financing’s 25 years of experience in lease execution, expertise in PC financing and close working relationships with Lenovo and Business Partners.
  • IBM no longer requires hardware on a financing transaction, so we can now offer financing on software-only transactions in the following countries: US, Austria, Germany, Denmark, Finland, Norway, Sweden, UK, Belgium/Luxembourg, Netherlands, France, Italy, Spain, Portugal, Japan, Austria, and New Zealand. We can help provide you with budget flexibility to access a complete solution with a simple payment structure. Payment plans can be customized in various structures (for example: monthly, quarterly, step, balloon).
  • You can take advantage of many benefits related to asset recovery solutions. If your unwanted assets are marketable, we can provide a competitive market value for those assets, values of which are updated monthly. Non-marketable assets can be disposed of in an environmentally friendly manner. We pride ourselves on the fact that less than two percent of disposed assets actually end up in a land fill; most components are recycled. For security purposes, we recommend that all clients use our 3X Disk Overwrite service to ensure that all confidential data previously stored on those hard drives is no longer retrievable to the new owner.
  • Inventory Financing is generally directed at IBM business partners who purchase software and hardware from IBM or its distributors, or who purchase products from a list of approximately 100 other vendors that IGF has contracted with. The program works, in general, by enabling business partners to make payments to their suppliers after they receive cash payments from their own clients. IGF makes payments to the Distributors or Suppliers, and then collects from the Business Partner 30 or 45 or 60 or 90 days after the sale, depending on the program. During those interim days, no interest is charged to the Business Partner, in effect giving them a “free” (no interest) loan. This no interest loan helps their cash flow. (The interest charges are paid, however, by IBM or the vendor sponsoring the program.)
  • Some of the benefits you can realize by purchasing (or leasing) IBM Certified Pre-owned Equipment are as follows: • Fully refurbished and tested to IBM standards • IBM maintenance qualified • Current and prior-level technology solutions at a fraction of the original price • Selected models include 1 or 3 years’ maintenance • 90-day satisfaction guarantee with IBM maintenance contract (system may be replaced or refunded at IBM’s discretion if equipment is unsatisfactory) • Availability of “Refurbished with Warranty”, which comes with the same warranty as new equipment models and is priced slightly higher than IBM Certified Pre-owned Equipment • Acquisition: Less stringent credit requirements for purchase or financing of IBM Certified Pre-owned Equipment • Short-term rentals are available for IBM Certified Pre-owned • Wide range of equipment available off the shelf or custom-configured, including: – Intel-based servers: Netfinity, xSeries and System x – Midrange servers: AS/400, iSeries and System i – UNIX servers: RS/6000, pSeries and System p – Mainframe systems: S/390, zSeries and System z – Storage: disk and tape systems – Printers and networking hardware
  • IGF has established partnerships with a select set of vendors to provide an array of IT financing options to their customers and business partners. The vendors include Lenovo, APC, Barco, InfoPrint, Juniper and Motorola.
  • The end customers typically are faced with multiple challenges to acquire their IT equipment. This includes limited capital funds and difficulty in managing their outdated equipment. IGF can help these customers to turn large up-front costs into an affordable and predictable monthly payment. Furthermore, IGF serves as a one-stop shop for financing hw, sw and services and allows customers to match their costs to project milestones. Additionally, when customers finance with IGF they are able to seamlessly transition to next generation IT solutions when the need arises and to preserve cash for strategic investments.
  • Customer Centre aggregates all your global leased asset data into a centralized tool so you can effectively and efficiently manage every piece of leased equipment throughout its term-from acceptance of equipment through end of lease and asset disposition. The Customer Centre tool is comprised of four modules—Delivery Confirmation, Lease Management, End of Lease and Asset Recovery Solutions—which you can use individually or in any combination that best suits your business needs. Customer Centre also eliminates a great deal of paperwork and, because it is Web-based, lets you manage your lease portfolio any time, anywhere.
  • In today’s “New Economy” with credit markets still tight and IT costs under pressure, hardware financing represents a wise choice for many customers. In addition to helping customers preserve capital for higher yielding investments, financing can help lower both IT acquisition costs and ongoing operational costs throughout the IT lifecycle. A programmatic IT refresh cycle based on leasing helps clients lower IT costs over outright purchase by ensuring timely replacement of equipment while helping ensure capacity needs are met with improved price performance results. Leasing allows clients to pay only for the use of the equipment while helping them reduce technology obsolescence risk. For those clients with longer use expectations, IBM Global financing offers, “lease to own” options that allow clients to pay for the equipment over time with the flexibility of a $1 buyout option.
  • A three year technology refresh cycle based on leasing can ensure that you have upgrade flexibility to meet both your growing IT and business demands without impacting your current budget. Even for non-upgradeable products, a three year leasing refresh cycle prevents technology obsolescence and ensures that you can acquire the latest technology with no concerns about asset disposal.
  • IGF builds a new server from existing inventory and ships to IBM where they install the new POWER6 upgrade. The server is shipped to the client, where they can perform the side by side upgrade. The client has 60 days to perform the migration. Once complete, the client returns the old server to IBM.
  • Migration projects consist of many moving parts, but with IBM Global Financing, you can confidently rely on our years of IT financing and asset management expertise to consolidate all of your project costs, both IBM and non-IBM into one monthly payment and contract, with friendly terms and conditions. With our access to capital and IT financing expertise you can ensure that your project will proceed with funding that ensures costs are matched to benefits and that any budget gap is addressed. Also, we can ensure that unexpected project changes or costs are addressed with minimal impact to your budget. What’s more IBM Global Financing can dispose of your older assets in compliance with local and state environmental regulations and pay you cash for re-marketable IT assets, which can be applied to reduce your migration costs.
  • For clients that need an immediate cash infusion, and you own your IT equipment, consider a sale-leaseback transaction in which you sell your assets to IBM Global Financing and then lease them back at a highly competitive rate. During challenging economic times, where credit is tight, sale-leaseback offers a powerful way to free up cash to use for upgrades or other investments. By engaging in a sale-leaseback—and no longer owning your assets—you'll enjoy the long-term and multifold benefits of leasing, which enables you to regularly and easily adapt your IT assets to avoid technology obsolescence. Other sale-leaseback benefits include: Potential capital and tax advantages Establishing a regular refresh cycle that includes technology refresh options during your lease and at the end of the lease term, when you can return your assets and acquire new technology Eliminating costs and hassles associated with asset disposition
  • A three year technology refresh cycle based on leasing can ensure that you have upgrade flexibility to meet both your growing IT and business demands without impacting your current budget. Even for non-upgradeable products, a three year leasing refresh cycle prevents technology obsolescence and ensures that you can acquire the latest technology with no concerns about asset disposal.
  • Existing leasing clients upgrading to POWER6 can in many cases maintain their monthly payments (with little or no change) and obtain the latest POWER6 technology. This is a compelling value proposition for clients who achieve greatly improved price performance with the upgrade to POWER6 while maintaining their current monthly payment.
  • Stellar credentials demonstrate IGF's value and leadership IBM Global Financing, the lending and leasing business segment of IBM, can make a real difference in a client’s decision to acquire technology equipment, software and services from IBM or any other vendor or supplier. What makes IBM Global Financing special is its global reach, its thorough understanding of credit and technology risk and its over 25 years of technology expertise, especially in the implementation, maintenance and disposal of equipment. The following key facts demonstrate IBM Global Financing’s leadership in the IT financing industry and can be used by IBM sellers as they move in to close that next deal. Global Reach: IBM Global Financing is a stable, proven partner that has been in the IT financing business more than 28 years. As the world's largest IT financier, IBM Global Financing has total assets of $36 billion and delivers financial services to 125,000 customers in more than 55 countries. IBM Global Financing serves commercial clients ranging from small businesses to more than 90% of the Fortune Global 100 list of companies. In 2008, IBM Global Financing represented about 2.5% of IBM's external segment revenue and 9.2% of IBM's external segment pre-tax profit. IBM Global Financing has about 3,000 employees globally, which is approximately 1% of the IBM employee population. Achieving Higher Value for our Clients: As the US Administration and other countries around the world embark on stimulus plans to jumpstart capital spending around technology, IBM Global Financing is already playing a key role in helping companies finance large projects. In May 2009, IBM Global Financing made up to $5 billion available to help jumpstart our clients’ investment in new technology infrastructure that can help create jobs and boost competitiveness. IBM Global Financing’s Project Financing capabilities can help bring discipline and transparency to the technology acquisition process, as well as match upfront costs to anticipated benefits. Today approximately 13% of IBM Global Financing’s $15.8B client financing business revolves around higher value opportunities being developed through our Project Financing practice. Rankings and Accomplishments: Though not a commercial bank, IBM Global Financing would rank among the top-40 U.S. commercial banks if measured by revenue alone. (Fortune 2008) Following the announcement of the economic stimulus funding in May 2009, InformationWeek wrote Doesn't sound much like a computer company, does it? Or a software company? Or just a financing company? In fact, it sounds a lot like a business- and technology- and financial-services company with deep industry expertise. A Feb 2008 article in ComputerWorld calls IBM Global Financing, “IBM's secret competitive weapon”, especially in light of its strong positioning around the launch of its new z10 upgrade in 2008. John Webster, principal IT adviser at research firm Illuminata Inc. writes, "IGF is as strong or stronger now than it ever was, and it's making an unusually obvious display of flexing its creative financing muscles with the announcement of the z10 mainframe." Global Asset Recovery Services: IBM Global Asset Recover Services recently received ISO 14001 certification from Bureau Veritas Certification, North America covering the following scope: Global operational and logistics processes related to the return, remanufacturing, demanufacturing, remarketing and disposal of used equipment. In 2008, IBM Global Asset Recovery Services was recognized by the IT analyst firm IDC as one of the first recipients of its Green Recycling and Asset Disposal for the Enterprise (G.R.A.D.E.) certification. Additional detail on GARS (not on this slide) IBM’s Global Asset Recovery Services (GARS) helps ensure that a high percentage end-of-lease and client-owned IT equipment is refurbished, resold, disassembled and sold as parts, used for repair and maintenance work or scrapped. In 2008, GARS were $1.79B or 46% of total IGF revenue. In 2008, IBM GARS reused or resold almost 90% of the assets returned to its remanufacturing centers. In 1999, IBM GARS de-manufacturing operations processed the approximate weight of 500 rail cars filled with coal stretching 5.5 miles. By year end 2008, the cumulative weight processed by IBM GARS remanufacturing and de-manufacturing operations would fill 4480 cars stretching 49 miles. In the past three years, GARS major de-manufacturing locations have recycled more than 55,800 metric tons (123 million pounds) of product and product waste. Over 37,800 metric tons (83.3 million pounds) recycled have been ferrous and non ferrous metals, more metal than the equivalent metal used in 3.7 Eiffel towers. If all the laptop PCs that GARS remanufacturing centers have processed over the past 5 years (2004-2008) were placed end to end, the distance would be greater than the distance between Paris and London. If the laptops were stacked on top of each other, the pile would extend over 24 miles into the atmosphere (A trans-oceanic jet liner flies approximately 7 miles high by comparison).
  • Establish a long-term agreement to fund the full scope of your global IT investments The IBM Enterprise IT Financing Facility provides major corporations with a vehicle to implement comprehensive, efficient, customized and cost-effective lease and loan structures for IT hardware, software and services-ranging from $50 to $500 million. IBM Global Financing provides a single, integrated financing source for both IBM and non-IBM components, which facilitates optimizing all the required elements of an IT finance solution. This strategy upgrades companies from managing an IT portfolio of "ad hoc" transactions to management of organized IT financing processes. This unique financing proposition is designed to cover multiple countries and subsidiary organizations via one centrally negotiated contract. It offers exceptional efficiency benefits to global companies that are making a large number of IT acquisitions over multiple years.
  • Let me start by giving you a short introduction of IBM Global Financing: We generally think of the value we drive for our clients in three major categories. The first is to help our clients lower their overall cost of technology acquisition as they install new equipment and you can see that we can categorize cash preservation. They improve total cost of ownership through leveraging the residual value and bringing a large upfront investment into a stream of monthly payments that would support the concept of lower cost at the acquisition stage. But financing also helps our clients better manage their overall internal technology acquisition processes. Financing provides payment and term flexibility that can be used to better match a project's projected benefit stream to cash outflow because credit would be readily available. Credit available from IBM Global Financing can help accelerate project implementation internally and based on the fact that financing, in some instance, helps improve financial measurements, and a lease – a true lease where the equipment comes back to the lessor - will help a client mitigate the technology obsolescence risk. And because the lease has a specified end date after, for example, a 36 month term, there is a facilitated technology refresh built into the overall acquisition for the client. Finally, because of leasing from IBM Global Financing, clients can better facilitate management of assets throughout their lifecycle because at the end of lease, there are options available to return or acquire the equipment and beyond that, IBM Global Financing can help clients monetize their current assets with asset buyback and disposal.
  • The Open Infrastructure Offering (OIO) allows you to establish a relationship with IBM that can improve your price performance, provide interest rate protection for the life of your investments and enhance the reliability, scalability and flexibility of your IT environments. IBM can assemble an OIO that combines hardware, software, services, maintenance and disaster recovery into a single, customized agreement. Flexible financing from IBM Global Financing can be included in your OIO to help dramatically reduce the complexity involved in paying for your IT investments. With an OIO, you get a single, budgeted invoice each month that covers all products and services included in the original IBM agreement. Use an OIO to streamline your entire IT infrastructure lifecycle—including planning, procurement, budgeting, payment and asset disposition.
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