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Lessons Learned: Business agility through open standards & cloud


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Lessons Learned: Business agility through open standards & cloud

Lessons Learned: Business agility through open standards & cloud

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  • 1. Dr. Angel Luis Diaz ( President of Software Standards and Cloud for IBM Software GroupLessons Learned: Business agilitythrough open standards & cloud © 2011 IBM Corporation
  • 2. Businesses globally are facing an unparalleledrate of change… Differentiate their products and services 80% of CEOs anticipate turbulent change & bold moves React with agility to Enable business competitive flexibility landscape Manage business Execute with Achieve desired 64% of CIOs are expected to work transformation reduced risk & cost business with business executives to drive outcomes innovation & manage change React to rapid market shifts Proactively address changing regulatory mandates 54% IT budgets were spent on ongoing operations and maintenance costs, limiting investments in innovation * Source: IBM CEO Study2 © 2011 IBM Corporation
  • 3. Cloud computing is changing the economics of IT and speedingthe delivery of innovative products & services Improve the speed, Improve security and agility and dexterity compliance control of business postures . Deliver IT Deliver new without business value boundaries in real time Standardization, normalization, and reduction of unnecessary complexity3 © 2011 IBM Corporation 3
  • 4. CIO: Significant growth in hybrid cloud is driving theneed for interoperability and openness Technology Features Most Often Rated As Differentiators Worth Paying Extra For % Selecting Ability to predict hardw are failures and migrate w orkloads before 37% failure occurs Availability of a single tool to manage a heterogeneous Cloud 34% environment 60% Fault tolerance and high availability 32%Dynamic scaling that automatically allocates additional resources to 32% existing virtual machines as w ork An extensible architecture that is easy to integrate w ith existing 31% of CIOs plan to use systems cloud, up from 33% Cloud management solution that provides high automation and availability across data center environments 29% two years ago Ability to manage a geographically distributed Private Cloud 29% environment through a centralized management system …the majority being Security for multi-tenancy environment 28% hybrid environments Netw orking resource allocation and management 27% * Source: 2010 STG Private Cloud Study (Q3-Q5b) * Source: IBM CEO Study4 © 2011 IBM Corporation
  • 5. Non-IT Executives: Significant growth in hybrid cloudis driving the need for interoperability and openness 60% of CIOs plan to use cloud, up from 33% two years ago …the majority being hybrid environments Oct 2010 * Source: IBM CEO Study5 © 2011 IBM Corporation
  • 6. … but not all cloud projects are successful … surprised? Organizations begin Cloud projects with high hopes, but • Wrong approach / wrong project • Lack of communication / collaboration / coordination / standardization can lead to project failure IBM can help you leverage best practices harvested from years experience and 2,000+ client engagements to ensure success with your projects6 © 2011 IBM Corporation
  • 7. Discussion agenda1. A new approach to standards as an ingredient to ensure cloud project success.2. Lessons learned: 9 Steps to Successful Adoption of Cloud Computing.3. IBM Smart Cloud can help you get started.7 © 2011 IBM Corporation
  • 8. Why open cloud computing? Standards allow enterprises tomanage change across market evolution cycles Advent of Social  Cloud SOA Business Architecture Business  Service Agility Rise of the  Orientation Application  Dawn of  Server Worldwide Web Open Virtualization Format, Open Social, Cloud Management, HTML 5, Cloud Audit, Reference CMIS, Architecture, SOA Governance OpenAjax, Cloud Standards Customer BPMN, Framework, OAuth, … Council… Web Services, SBVR, SOA Reference SCA, BPEL, RIF, … Architecture, … SAML, XACML … Java, Java EE, XML, XML Schema, HTTP, HTML, SOAP, WSFL, XLANG, WSDL, UML, Cloud builds on and leverages the standards which REST… Web2.0, ... preceded this market cycle8 © 2011 IBM Corporation
  • 9. Open standards: Invention? or Reinvention? reinventing standards OR using existing standards vendor-driven standards OR customer-driven standards proprietary clouds OR open, interoperable clouds Or is it somewhere in between…?9 © 2011 IBM Corporation
  • 10. A smarter approach to standards development Innovative Practical Open standards for cloud: Business success is not Invention? Reinvention? theoretical. Practical Cloud computing is cloud computing is grasschanging the economics of roots plain and simple: it IT and requires a involves leveraging real rethinking of how we all world implementations of engage in standards standards & open source development User-driven Architectural The members of the Standards allow Cloud Standards enterprises to manage Customer Council create change across market a cross-industry view into evolution cycles market-leading Cloud extending the value of use cases and best customers’ services practices based architectures and investments 10 © 2011 IBM Corporation
  • 11. Engaging the customer via the CloudStandards Customer CouncilIBM is a founding member of the CloudStandards Customer Council which: 230+• Provides guidance to the multiple cloud companies are standards-defining bodies participating• Establishes the criteria for open-standards-based cloud computing• Delivers content in the form of best practices, case studies, use cases, requirements, gap analysis and recommendations for cloud standards 50% operate outside• 2011 Deliverables: the IT realm Practical Guide to Cloud Computing, Cloud Computing Use Cases, Cloud Computing Business Patterns.11 © 2011 IBM Corporation
  • 12. On October, 2011 the CSCC produces its first deliverables! Practical Guide to Cloud Computing Eight Cloud Computing Use Cases • IaaS Use Cases • Application On-Boarding • Virtual Environment Management • Hybrid Cloud Management • Storage Capacity • PaaS Use Cases • Policy-driven Application Management • Development & Test – Problem …a prescriptive nine step plan Determination for success being leveraged by • Development & Test – Application clients today. Promotion • Database as a Service World wide launch & public release webcast hosted by Melvin Greer (Lockheed Martin – CSCC Steering Group Chair) on Oct 5, 2011[1][2] 12 © 2011 IBM Corporation
  • 13. CSCC use cases & adoption guide provide context to standards Architecture Business Services Industry solutionsThe Open Group (TOG) Cloud Architecture Social Business Standards: Apache Shindig, Retail Cloud Standards in ARTSThe Open Group SOCCI OpenSocial, HTML5, Activity Streams, CMIS, Education Sector: The IBM Cloud Academy,TMForum Cloud Architecture WG OAuth, OpenID EDUCAUSE, NACUBOManagement Workload servicesTopology Orchestration Services for PaaS APIsCloud Applications (TOSCA) DBaaS APIsDMTF Open Virtualization Format(OVF)OpenStackDMTF Cloud Software LicenseDMTF/TMF cloud SLAs and network Integration Linked Data & OSLC Operations Support Security DMTF Cloud Infrastructure Management DMTF Cloud Audit Working Interface (CIMI) OASIS Cloud Identity Management Technical SNIA CDMI Committee Open source API Adapters Cloud Security Alliance13 © 2011 IBM Corporation
  • 14. Discussion agenda1. A new approach to standards as an ingredient to ensure cloud project success.2. Lessons learned: 9 Steps to Successful Adoption of Cloud Computing.3. IBM Smart Cloud can help you get started.14 © 2011 IBM Corporation
  • 15. A practical guide to cloud computing Goal: Collaborative effort that brings together diverse customer focused experiences and perspectives into a single guide for IT and business leaders who are considering cloud adoption. Table of Contents: Introduction A Rationale for Cloud Computing Cloud Computing Vision Roadmap for Cloud Computing Summary of Keys to Success Timeline April 7 – CSCC Launched June 7 – Practical Guide Launched Oct 10 – Practical Guide Published15 © 2011 IBM Corporation
  • 16. 9 Steps to successful adoption of cloud computing 1. Assemble your (cloud consumer) decision team 2. Develop business case and an enterprise cloud strategy 3. Select cloud deployment model(s) 4. Select cloud service model(s) 5. Determine who will develop, test and deploy the cloud services 6. Develop a proof-of-concept before moving to production 7. Integrate cloud solution(s) with existing enterprise services 8. Develop and manage Service Level Agreements (SLA) 9. Manage the cloud environment16 © 2011 IBM Corporation
  • 17. Grounding the advice on a real success story! North Carolina State University, circa 2004 "We reached a critical point – at a time when we were confronting serious challenges to the campus’ student computing model, the NC Supercomputing Center closed due to state funding cuts. Unfortunately, only 50% of the amount needed to solve both problems was available, leaving us with the option of doing both services poorly or inventing a novel solution without any reassuring evidence that one existed. We chose latter course of action, daunting being preferable to failure, and the rest is history.” Mladen A. Vouk, Head of Computer Science, and Associate Vice-Provost for Information Technology Samuel F. Averitt, Vice Provost Information Technology17 © 2011 IBM Corporation
  • 18. 1. Assemble your (cloud consumer) decision team Bringing IT and line of business together to leverage the cloud Strategic • Vision Business leaders will (CEO/Senior • Terms of reference leverage cloud to increase Management) • Guidelines sales/revenues Senior management leadership is critical – Make final decisions – Accountable for Tactical • Business Analysis success (CIO/CTO) • Technical Analysis Technical leaders drive detailed business and technical analysis Legal / Admin integral to team support Operational • Procurement (IT, Finance • Implementation Education is important at • Operation all levels and varies by etc.) recipient18 © 2011 IBM Corporation
  • 19. Cloud business model - “change or change not, there isno try” - it’s a paradigm shift or notHow did NC State break down the silos anddisrupt the status quo? • Technical – IT orthogonal to campus needs • make relevant – sandboxes & fortresses • Operational - server hugging, emotionally satisfying but an economic train wreak • circa 2004 inspection - ”campus is littered with dead and dysfunctional clusters” • Political - the “not invented here” phobia • take wins - the willing and the desperate • get out of middle – customer choice • don’t be part of problem—gatekeeper versus enabler • let a winning solution speaks for itself Focus on business outcomes - customers vote with their “feet”19 © 2011 IBM Corporation
  • 20. 2. Develop business case and an enterprise cloud strategy Strategic plan reduces potential impacts and facilitates future decisions Key Elements of Strategic Planning Educate the team All team members (IT, business, operations, legal) must be educated on what cloud computing is and what it is not Consider the existing IT environment Develop a complementary cloud adoption strategy focusing on integrating and leveraging existing technologies and standards Understand required services and Determine business justification and potential ROI and/or potential functionality new revenue opportunities Establish a long term plan Reduce risk of vendor lock in and disconnected cloud services – avoid increased integration and maintenance costs Identify clear success goals and Define benchmarks for the existing service. Ensure objective of metrics to measure progress implementing new cloud service has been achieved. Metrics need to be agreed to by executives Understand Legal/Regulatory Consumers must understand responsibilities associated with national Requirements and supra-national obligations. Examples include: • Physical location of the data • Data Breach • Personal Data Privacy • Intellectual Property, Information Ownership • Law Enforcement Access Track results for an extended time Identify trends that may need to be addressed to improve existing service20 © 2011 IBM Corporation
  • 21. TCO - it’s your business, what’s your use casePeople – must move up the value chain Make the case for how people can better work together in their value chain to exceed market demands. pr o st du co ct ivi yt Time, Impact, Duplication Value, Use Infrastructure Business ize op im professionals professionals tim in ize m People Operate, Maintain, Sustain Available, Usable, Relevant21 © 2011 IBM Corporation
  • 22. 3. Select cloud deployment model(s) Establish criteria for selecting the right deployment model Private (on-site) Private (outsourced) Public Criticality of cloud Mission critical, security Mission critical, security Non mission critical services sensitive services sensitive services services Migration costs Managing cloud software Lower costs since cloud Similar to private may incur significant costs hardware and software (outsourced) with provisioned and managed additional security by provider precautions to be taken into account Elasticity Limited resources are Extensive resources are Generally unrestricted in available. Computing and available their size storage capacity fixed. Security threats Implement same level of Techniques need to be Limited visibility and control security as non-cloud applied to subscribers and over data regarding resources providers perimeter security Multi-tenancy Clients would typically be Similar to those for Private Single machine may be members of the subscriber (on-site) cloud shared by the workloads of organization any combination of subscribers22 © 2011 IBM Corporation
  • 23. 4. Select cloud service model(s) Many organizations face the challenge of staging a gradual adoption of cloud capabilities, incrementally advancing their IT environment Large Organizations Small / Medium BusinessIaaS - Primary consideration is Private (on-site) provides a good May not be feasible givencapital expense reduction and initial transition to IaaS with insufficient ROI associated withaccess to IT capacity that would relatively low risk consolidating a relatively smallotherwise not be available Private (outsourced) and Public number of existing IT assets can potentially deliver added A direct move to SaaS may be business value advisable for many SMBsSaaS - Benefit from the “pay-as- Consider SaaS initially for non- Evaluate and identify businessyou go” concept, with highly critical business functions to processes that can bescalable offering flexibility to deliver improved ROI enhanced by cloud-basedcompanies to provision and de- Adopt new disruptive SaaS applications to improveprovision based on business solutions to maintain or extend competitiveness with largerneeds competitiveness organizationsPaaS - Integrated development Analyze PaaS offerings in terms of Assess in-house developmentand runtime platform optimized for TCO / ROI and risks such as resource to justify the expensecreating, deploying and managing vendor lock-in, interoperability, of a PaaS environmentcloud applications existing IT infrastructure A direct move to SaaS may be the best alternative for many SMBs23 © 2011 IBM Corporation
  • 24. Decision points for the NC State Virtual Computing Lab Service Architecture Ownership Open Private Standards HaaS AaaS IaaS PaaS Public Proprietary The NC State cloud service model decision involves three key questions: what’s the service type, the architecture, and the ownership model. DMTF Open Virtualization Format (OVF) - The Open Group (TOG) Cloud Architecture - © 2011 IBM Corporation
  • 25. 5. Determine who will develop, test & deploy cloud services Maximize resources to accelerate Cloud adoption Options – In-house development and deployment – Cloud provider development and deployment – Independent cloud service development provider – Off the shelf cloud service offerings Critical factors – Cost – Responsiveness – Flexibility Considerations – Available skills – Start up considerations – Updates to existing services – Testing / deployment25 © 2011 IBM Corporation
  • 26. 6. Develop a proof-of-concept before moving to production POC is critical to validating that proposed cloud services deliver required functionality and meet expected ROI Steps for successful POC – Assemble the team – Develop the service – Verify the cloud service delivers the requisite functionality – Verify that all processes work (simulate transactions) – Verify data recovery activities – Ensure Help Desk can address questions / problems – Develop a back out plan to manage migration to production problems – Identify the migration team to manage transition to production26 © 2011 IBM Corporation
  • 27. 7. Integrate with existing enterprise services Seamlessly integrating cloud services as an extension of the Enterprise Cloud is not a complete replacement of the enterprise – Cloud services will need to interface with existing and future enterprise services Integration strategy must accommodate future cloud services – Plan must address ease of integration / interoperability of services Risks of failing to develop an integration plan – Increased development costs and time to market – Increased maintenance costs – Reduced flexibility to integrate new services – Increase costs and time to migrate service to a new cloud provider – Higher costs to establish a disaster recovery plan27 © 2011 IBM Corporation
  • 28. 8. Develop and manage Service Level Agreements (SLA) Key Elements of SLA Management Assign core SLA team • Must consist of members from IT, business, operations and legal • Must also understand the expectations of the cloud service Develop SLA for contracted • Identifies elements which are critical to protecting the ongoing service operations of the enterprise • SLA sets expectations for when issues must be resolved, and spells out any penalties and an exit strategy should the cloud provider not be able to meet the terms of the SLA Define critical processes with the • Process to ensure issues which cause service to perform outside of cloud provider the agreed to performance levels are resolved consistent with the SLA • Escalation process to elevate the visibility of issues, depending on impact, to the appropriate parties in both the cloud consumer and cloud provider organizations Schedule regular review meetings • Objective is to review SLA status on an on-going basis with key stakeholders within the • Increasing important as more cloud services are being implemented enterprise and/or the number of cloud providers increases Schedule regular checkpoint • Establishes ongoing dialogue to ensure problems are addressed meetings with cloud provider before they become major issues • Establish a trail on the status of the elements of the SLA Maintain a continuous level of • SLA does not absolve the cloud consumer of all responsibilities responsibility • Ongoing vigilance required to ensure that enterprise users continue to receive expected level of service28 © 2011 IBM Corporation
  • 29. Standardized customization - a business differentiatorThe Case for Radically Dynamic Customization Normalization of Extremes TinkerPlot to supernova simulations DEFCON 9 Addressing Equity Biosurveillance:  Crossing the digital potential but  divide improbable cataclysm29 DMTF Cloud Management Working Group © 2011 IBM Corporation
  • 30. 9. Manage the cloud environment Ensuring that the right people understand that the cloud services are meeting expectations. Both technical and customer support must be considered Shared responsibility – Enterprise (CIO and customer support) – Cloud provider SLA will establish process for: – Identifying problems – Establishing who is responsible – Defines resources responsible to resolve the problem (from both consumer and provider) Metrics are important – “People do what you inspect, not what you expect!” – Understand trends with existing services Identify changes to improve ROI, customer satisfaction30 – Establish baseline for future services © 2011 IBM Corporation
  • 31. Keys to success Establish executive support Define Address metrics and organization process for change measuring mgmt. impact Address legal & Keys to Adopt open regulatory Success standards requirement Develop Rationalize Service security and Level privacy Agreement Address federated governance31 © 2011 IBM Corporation
  • 32. The value of the cloud is in what it can do for NC State LOW HIGH Effective think HIGH Differentiate Strategically Creatively act Replicate Efficient LOW Predictively React Anticipate Logistically Incremental Change – evolution vs. revolution32 © 2011 IBM Corporation
  • 33. Pop quiz: What are your lessons learned?33 © 2011 IBM Corporation
  • 34. Discussion agenda1. A new approach to standards as an ingredient to ensure cloud project success.2. Lessons learned: 9 Steps to Successful Adoption of Cloud Computing.3. IBM Smart Cloud can help you get started.34 © 2011 IBM Corporation
  • 35. IBM Cloud Solutions Foundation Services Solutions Private & Hybrid Clouds Managed Cloud Services Cloud Business Solutions Cloud Enablement Technologies Infrastructure and Platform as a Service Software & Business Process as a Service Enables private/hybrid clouds Secure and scalable cloud Accelerate businesses and the virtualization, platform for deploying impact and grow revenues by automation and management applications in minutes leveraging Cloud business of cloud services. versus weeks applications Commitment to open standards and a broad ecosystem35 © 2011 IBM Corporation
  • 36. IBM SmartCloud FoundationAn integrated set of technologies for enabling private/hybrid clouds andthe virtualization, automation and management of service delivery.• Resilient to the velocity of changing business needs• Choice and flexibility in hybrid environments• Enterprise-class, workload aware infrastructures• Built-in analytics for improved insight, planning and decision making and Virtualized Standardized Automated36 © 2011 IBM Corporation
  • 37. IBM SmartCloud ServicesA managed service platform enabling the flexible, secure and immediateleverage of core platform and infrastructures capabilities. An IaaS with enterprise-class Services governance, administration and management control Enterprise PaaS with unprecedented choice in app development, deployment and management The most complete set of automated and integrated services to support enterprise applications Real business-centric SLAs that align IBM accountability to your business Multiple delivery models allow clients to optimize against economics, integration, security and control37 © 2011 IBM Corporation
  • 38. IBM SmartCloud SolutionsProvides immediate access to software as a service enabling organizationscost-effectively reinvent business by transforming business processes Smarter Commerce on Cloud to help companies accelerate their ability to Solutions transform the entire customer experience Smarter Cities on Cloud to help cities of all sizes leverage information, anticipate problems and coordinate resources to deliver exceptional service to their citizens Business Analytics on Cloud to help companies accelerate their ability to turn information into insights Social Business on Cloud to integrate the collective knowledge of people- centric networks to accelerate decision-38 making and increase innovation © 2011 IBM Corporation
  • 39. IBM is building an ecosystem designed to enhance ourenterprise class capabilities as well as to scale into new markets Cloud Infrastructure Providers Cloud Application Providers Cloud Services Providers Cloud Technology Providers Leveraging the IBM Cloud to Delivering standardized SaaS Create customized client Extending the function provide IaaS/PaaS capabilities solutions on IBM SmartCloud solutions running on the IBM and value of IBM SmartCloud SmartCloud Cloud Builders Creating customized private cloud solutions for client and provider infrastructures39 © 2011 IBM Corporation
  • 40. Cloud in action: Citigroup Benefits:Accelerating development and delivery using the cloud Increased serverThe need: capacity 12x Dramatically reduce time to market Make the company’s 20,000 developers more productive “Slashed server Boost utilization rates and improving operational efficiencies. provisioning times from 45 days to less than 20 minutes”The solution: -Jonathan Moore Senior Built a private cloud using IBM lifecycle services Vice President, Citigroup management software solutions. Enable self-service request, automated provisioning, and internal chargeback capabilities40 © 2011 IBM Corporation
  • 41. Cloud in action: Newly Weds Foods Benefits:Global food company connects in cloud to improve customerservice Speeds communication The need: The solution: response rate from • A tool to connect • IBM LotusLive Social Business cloud days to hours geographically dispersed teams services to enable culinary team to share without the capital expense and information and ideas quickly and Saves 4-5 days per staff needed to run an in-house easily -- regardless of the time or location month in travel time and solution 10% on travel cost • Enables Chefs to find and connect with • Security to protect proprietary other chefs around the world, to store Eliminates time zone information and safeguard and share recipes and demos, and to barriers to productivity client recipes host web meetings with clients Unique no-cost "guest account" model lets their clients easily collaborate on recipe ideas"Being able to connect our culinary chefs in the cloud is invaluable when talking aboutcustomer service. Someone who was once isolated now has access to information they mightotherwise not have so they can make better decisions, faster and can get client questionsanswered more quickly." - Bob Brindza, SOA Business Analyst, Newly Weds Foods41 © 2011 IBM Corporation
  • 42. IBM is providing a market leading combination of technology,expertise and reach help our clients succeed with Clouddeployments & business outcomes of Fortune 100 companies are using IBM cloud capabilities. “IBM has one of the most comprehensive cloud portfolios.” IBM Cloud Labs – Jeff Vance, Datamation IBM SmartCloud Centers42 © 2011 IBM Corporation
  • 43. Take action on your cloud journeyContact your local IBM sales rep Visit the IBM Cloud virtual briefing center for more information on our capabilities Use the Cloud Adoption Advisor to identify cloud adoption opportunities View demos of IBM Workload Deployer Join the Cloud Standards Customer Council for practical advice on architecting your open cloud © 2011 IBM Corporation
  • 44. 44 © 2011 IBM Corporation
  • 45. Legal Disclaimer • © IBM Corporation 2011. All Rights Reserved. • The information contained in this publication is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this publication, it is provided AS IS without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this publication or any other materials. Nothing contained in this publication is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. • References in this presentation to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in this presentation may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. 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