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    Isv cloud business readiness assessment Isv cloud business readiness assessment Document Transcript

    • Cloud Readiness Assessment TechStrategyLabs Inc. PlanningSurvey Assessment
    • ISV Cloud Business Readiness AssessmentWelcomeWelcome, Cloud Computing ISVsThis multi-dimensional analyzer assesses key gaps in your current strategy, and aligns you to IBMs cloud offeringsthat will enable you to accelerate innovation. The recommendations are strategic steps in your journey to leveragecloud computing to successfully transform your business.To get started please move to the next page…
    • Flow of questions...In order for us to assist you in this important transformation, you will be requested to provide somebusiness and technical information in the following sequence.Enjoy!Please tell us a bit about your business...1. What is the key business goal behind your cloud initiative? * Preserve market share Penetrate new market Improve operational efficiency Capture market2. What is the expected revenue/cost reduction goal for this initiative? * Up to 5M USD 5M - 15M USD Greater than 15M USD
    • 3. What is the competitive situation of your product offering? * High - Fragmented market with no consistent leader Moderate - Fragmented with 1-2 market leaders Low - un-fragmented market4. What is the intent behind leveraging cloud computing? * Build a cloud infrastructure Enable your application in the cloud Extend your cloud application5. What phase of the transformation are you engaged currently? * Exploring options Planning Design and Architecture Execution Operational OptimizationNow tell us a bit about your product...If you are an Application Service Provider (ASP), and offering your productas a "per customer installation" in a cloud environment, please select the"ASP..." options.6. What is the current status of your offering? * Not cloud ready ASP on public cloud ASP on private cloud Public cloud Private cloud7. What type of cloud infrastructure will your offering utilize? * Public cloud Private cloud ASP on public cloud ASP on private cloud Hybrid (private and public cloud)8. How do you plan to host your offerings? *
    • Self hosted 3rd party Hybrid (self and 3rd party)9. In what units do you offer your product? * Enterprise license Users Seats Transactions ASP-based customers Computing capacity10. In what units would you like to offer your product in future? * Users Seats Transactions ASP-based customers Computing capacity11. What are your customers most sensitive to? * Price Service Security Integration12. What is your existing pricing strategy? * Single-segment - Single Price Single-segment - Tiered-Price Multi-segment - Tiered-Price13. What is basis for your existing pricing? * Cost-plus pricing Value-based pricing Competition-based pricing Customer-driven pricing14. How many direct-sales personnel are approximately involved in selling your offering? *Some technical information about your offering...15. How many "units of sales" does 1 unit of your production infrastructure support? *
    • 16. What is the infrastructure (image and workload) management technology you currently use inproduction? * Home grown Open View Microsoft VMWare Amazon Open Source (KVM, Xen) IBM Tivoli17. What type of servers are you planning to utilize for this initiative? * IBM Power Systems IBM System z (mainframe) Itanium PA-RISC SPARC Ultra SPARC Single core vanilla Dual core vanillaPlease share some other business information...18. How much do you approximately spend on software annually? * Less than 1M USD Between 1 - 2M USD Greater than 2M USD19. What is your approximate annual software maintenance spend (as a % of total annualsoftware spend)? *20. How much do you approximately spend on hardware annually? *
    • Less than 250K USD Between 250k - 1.5M USD Greater than 1.5K USD21. What is your approximate annual hardware maintenance spend(as a % of total annualhardware spend)? *22. How much do you approximately spend annually on your sales and marketing activities? * Less than 1M Between 1 - 5M USD Greater than 5M USD23. What is the approximate current annual revenue from your offering (that you want totransform)? * 0 - 1M USD 1M - 5M USD 5M - 20M USD 20M - 100M USD Greater than 100M USD24. What is your approximate anticipated annual growth rate (annualized)? * Less than 15% Between 15 - 25% Greater than 25%25. What is the approximate price per unit of sale of your product offering (in USD)? * Less than 100 USD Between 100 - 500 USD Greater than 500 USDPlease tell us a bit about yourself...Your name *26. Job title *
    • President/CEO COO CFO CMO Senior Director Director Senior Manager Manager Senior Associate AssociateEmail * Please provide a valid email address, as the report will be sent to this email address.27. Company *28. Send a copy of the report to IBM to enable them assist you better? * Yes NoThank You!Thank you for your input. We now have a better idea on what you need. We will now conduct an in-depth analysisof your need, and create a detailed report base on your input. The report will be emailed to you within the next fewhours.ThanksTechStrategyLabs Inc.
    • Cloud Readiness Planning Sample Company TechStrategyLabs Inc. October 12, 2011The contents of this report have been prepared exclusively for Sample Company and may not be used forany reason by any other party. The conclusions contained herein represent TechStrategyLabs’ analysis ofthe data provided by Sample Company. TechStrategyLabs is not responsible for the authenticity of thedata provided by Sample Company. TechStrategyLabs has utilized all reasonable care in conducting itsanalysis. TechStrategyLabs is not responsible or liable for any action taken by Sample Company basedupon this report.
    • TechStrategyLabs Inc.Executive Summary deliver your offering using a level ofIn the planning phase of preserving market granularity that signifies value to yourshare for your company, with a revenue goal of customers. Since licensed software and5M – 15M USD, by building cloud application, hardware add to the fixed cost of youryou may want to consider IBM’s Cloud customer, you may want to think aboutApplication Enablement Project mentioned using a unit of sale that would scalebelow in the “Accelerating your cloud with your customers business.transformation” section. Please feel free to Example: seats, transactions and namedtake this assessment once you are about to users.embark on your transformation to get a more • Pricing Strategy refers to how youspecific set of recommendations to accelerate would like to segment your customersthe entire process, and leverage IBM as your and price your offering. Usually,cloud business partner. companies offer a price-feature variation and let the customer decideIn order to accurately plan the transformation on the features they need leading toof your offering to leverage a cloud-based the price offered. Transforming todelivery channel, it is imperative to stay focused leverage a cloud-delivery channelon the ultimate business goal of your involves taking a closer look at yourcorporation. The business goals may vary from target customer base, segmenting itcompany to company. The most common ones based on features, affordability, andmay be preserving your market share, growth, and subsequently assigning apenetrating a new market, creating an alternate price that works best for each segment.revenue channel or just improving operational • Price Basis refers to the basis of pricingefficiency of your existing delivery channel. each customer segment. Usually, companies use cost-based pricingThe key elements to measure your “cloudreadiness” consist of business and technical (where the price is determined byfactors. IBM’s WebSphere and Workload adding a markup percentage to the cost of a unit of sale of the offering) orDeployer suite of technologies are key catalyststo enable you to transform successfully by competitive pricing (where a price isinfluencing these factors. It is useful to consider determined by analyzing the price of the prevailing competition in thethese factors while planning to transform your market). Due to the competitive natureoffering to a cloud-enabled delivery channel. of the cloud offering business, it may beBusiness Factors necessary to assess the inherentThe key business factors influencing your “value” of the offering to ascertain thetransformation are: price. This leads to a more compelling value-proposition of the offering • Unit of Sale refers to the unit of your denoted by the price dimension. offering that you would sell using the cloud-delivery channel. Since you are While planning to transform into a cloud-based transforming into a cloud-based delivery model, you may want to consider each delivery mode, it is imperative to of the above factors to ensure that the businessCopyright © TechStrategyLabs Inc. 1
    • TechStrategyLabs Inc.model of your offering addresses the overall important aspect of delivering yourbusiness goal. It is then a mandatory exercise offering using a cloud channel. IBM’sto address the technology factors and align Tivoli suite of technologies helps setupthem to address the overall business goal. and manage a fully automated virtualized environment for your cloudTechnology Factors offering.The key technology factors influencing your • Cloud Platform refers to the choice oftransformation are: the specific cloud delivery channel. These may include public cloud, private • Virtualization is a key tenet to cloud, 1ASP on public/private cloud. transform your offering to a cloud- The choice of the delivery platform delivery model. It is imperative that indicates the security and integration your offering can be virtualized into the considerations of your customers. target delivery hardware platform. If IBM’s SmartCloud environment your offering has been virtualized facilitates a higher “time to market” for already, it makes it easier to transform your offering by accelerating your into a cloud-based delivery channel. transformation. IBM’s Workload Deployer and Tivoli suite of technologies accelerate the These key technology factors must be setup and management of a fully considered first prior to other ones that may be automated virtualized environment for specific to your business model. These factors your cloud-enabled offering. must also be aligned to the state of your • Tenancy is the second important factor business factors to ensure that your cloud that governs the ability to scale your strategy addresses your ultimate business goals. offering across multiple customers. The ability to scale across customers, allows Accelerating your cloud you to spread your fixed costs (if any) transformation across multiple customers, and provides IBM has designed cloud projects to help enable a better per customer operational cost your offerings by aligning to the specific IBM ratio as your offering migrates from a technology suites. The alignment is based on single-tenant to a multi-tenant form for the type of your offering. These are categorized deployment. IBM’s Workload Deployer into the following initiatives that you suite of technologies accelerates undertake. migration of your offering to a multi- tenant deployment format. Cloud Infrastructure Build Project • Infrastructure Management includes If you are an infrastructure provider you are an automated management of your aligned to this project. If you are looking to virtualized offering. Automation building and optimally managing infrastructure increases reliability and repeatability to host cloud-based offerings by building out a leading to economies of scale. Reduction of fixed cost and attaining elasticity in cost management is an 1 Application Service ProviderCopyright © TechStrategyLabs Inc. 2
    • TechStrategyLabs Inc.cloud infrastructure to deliver 2IaaS/PaaS/SaaS Cloud Application Enablement Projectsolutions and looking to make a capital 3. Hybrid Integrationinvestment in hardware and software. 2. Infrastructure Selection Application Integration • Provides SaaS-to- Cloud Infrastructure Build Project SaaS and SaaS-to-on 1. Workload Virtualization premise application Scalable Delivery integration 3. Workload Virtualization • Identify Cloud Infrastructure • Flexible deployment Integrated Middleware Providers for scalable & options •Use of middleware and secure delivery topology patterns to enable • Cloud Infrastructures 2. Image Virtualization multi-tenant delivery Providers assist with BSS Integrated Middleware functions as required • Images are combined •Leverage IBM cloud blueprints into patterns and assets for creating cloud 1. Hardware Virtualization representing applications Image Management middleware workloads • Virtualized infrastructure leads • Workloads encapsulate Infrastructure Management to creation of “virtual” software images well defined Project Stage IBM Technology Alignment • Virtualization of hardware combinations of resources in the data center • Proliferation of virtual software images leads to management integrated middleware Workload Virtualization • IBM Workload Deployer • Management of virtualized infrastructure challenges • WebSphere Virtual Enterprise • IBM Middleware Project Stage IBM Technology Alignment Infrastructure Selection • IBM SmartCloud • Other cloud infrastructure providers Hardware Virtualization • IBM Workload Deployer • IBM Tivoli Service Automation Manager Hybrid Integration • IBM Cast Iron • IBM Service Delivery Manager • Workload Optimized Systems Image Virtualization • HyperVisor Edition Images • Tivoli Provisioning Manager Cloud Application Extension Project Workload Virtualization • IBM Workload Deployer If you are an existing SaaS Provider, may or may • WebSphere Virtual Enterprise • IBM Middleware not be running on IBM technology or infrastructure today and looking to grow the functionality/attractiveness of your cloudCloud Application Enablement Project application in order to enrich your valueIf you are an application provider and proposition, you are aligned to this project.interested in developing a new SaaS application This enables you to successfully extend youror migrating an existing on-premise application applications to add more competitiveto a cloud delivery model, you are aligned to advantage to your offering.this project. This will also enable you to add Cloud Application Extension Projectmulti-tenant function to your existing ASP 3. Collaborationdelivered applications. It also enables you toextend your application to integrate with other 2. Analytics Social BusinessSaaS applications using IBM Cast Iron. •Add Social Business capability to existing SaaS applications.In this context if you are looking to use a 3rd 1. Hybrid Integration Business Insights •Enhance yourparty (IBM/Other) to provide cloud Application application value through inclusion ofinfrastructure services, this enables you to Integration • Provides SaaS-to- analytic capabilities •Expands user base SaaS and SaaS-to- within clients.successfully build and deploy your application. on premise application integration • Flexible deployment options Project Stage IBM Technology Alignment Hybrid Integration • Cast Iron Analytics • Cognos • SPSS Collaboration • LotusLive2 IaaS – Infrastructure as a Service; PaaS – Platformas a Service; SaaS – Software as a ServiceCopyright © TechStrategyLabs Inc. 3
    • TechStrategyLabs Inc.Summary patterns to easily, quickly and repeatedlyIBM offerings help you align your technology create application environmentschoices to your business factors in order for you • IBM PowerVM provides a secure andto address your overall business goal in scalable virtualization environment for AIX,leveraging cloud computing. Please feel free to IBM i and Linux applicationstake this assessment with your specific needs • IBM Integrated Service Managementonce you have decided on your cloud trajectory (Tivoli) provides solutions to design, buildto receive a more specific set of and manage a dynamic infrastructure thatrecommendations that aligns your specific enables you to improve service, reduce costneeds to IBM technologies to accelerate your and manage risktransformation. • IBM WebSphere Cast Iron cloud Integration enables companies to rapidly connect their hybrid world of public clouds, privateKey terms clouds, and on-premise applications• Unit of Sale: The form in which the offering • IBM LotusLive offers online integrated is sold to the end-customer i.e. seats, collaboration tools, e-mail and social names users, transactions etc. networking services• Pricing Strategy: Refers to the customer • IBM Cognos is an integrated business segmentation and pricing e.g. whether the intelligence and performance management offering is sold using the same price for all solution types of customers or different price for • IBM Global Technology Services (GTS) different types of customer provide cloud and other infrastructure• Pricing Basis: This refers to the mechanism services used to derive the price i.e. using cost as a • IBM SmartCloud Enterprise + is cloud basis to derive price or other factors such as infrastructure and services delivered via an value to customer, competitive landscape IBM owned & architected, multi-tenant, etc. secured, hosted infrastructure in an IBM• TCO (Total Cost of Ownership) – total Cost Data Center or in a dedicated environment of owning and operating any IT asset or 3rd party site.• NPV (Net Present Value) – Difference • IBM SmartCloud Application Services between the future value of revenue and provides a comprehensive set of services expenses, discounted at the present value including full strength development tools using a discounting factor (mostly a and integration services. Built for Weighted Average Cost of Capital for a enterprises that want to leverage existing company) skills and assets but effectively deploy them in the cloud • IBM Starter Kit for Cloud is an entry cloudKey IBM Technologies/Offerings management software for IBM Systems• IBM Workload Deployer (previously (System x and Power) which complements WebSphere CloudBurst Appliance) is a platform management and service hardware appliance that provides access to IBM middleware virtual images andCopyright © TechStrategyLabs Inc. 4
    • TechStrategyLabs Inc. management offerings, enabling clients to simply and quickly build private clouds.Company InformationTechStrategyLabs provides executive advisoryservices to IT executives helping themformulate quantitatively-based strategies.Led by a team of highly experience principals,expert advisors and subject-matter experts, thefirm differentiates by using predictive analyticsand applied research to deliver their services.Contact:TechStrategyLabs Inc.Phone: +1.973.447.4161 | Fax: +1.973.447.0916Email: info@techstrategylabs.comWebsite: www.TechStrategyLabs.comCopyright © TechStrategyLabs Inc. 5
    • Cloud Readiness Assessment Sample Company TechStrategyLabs Inc. October 12, 2011The contents of this report have been prepared exclusively for Sample Company and may not be used forany reason by any other party. The conclusions contained herein represent TechStrategyLabs’ analysis ofthe data provided by Sample Company. TechStrategyLabs is not responsible for the authenticity of thedata provided by Sample Company. TechStrategyLabs has utilized all reasonable care in conducting itsanalysis. TechStrategyLabs is not responsible or liable for any action taken by Sample Company basedupon this report.
    • Business Gap Analysis Executive Summary Business Gap Analysis 40.4% IBM tools and technologies will enable a Unit of Sale Pricing Strategy Pricing Basis smooth migration of your offering to the public Score 33.33% 100.00% 25.00% cloud. Business and technology adjustments Key areas to focus to enhance your offering are: will ensure that the migration is successful from both revenue and cost perspectives. Overall • Unit of Sale the offering is approximately 56% cloud-ready • Pricing Basis when migrated in its current state. The business drivers account for 40.4% of this readiness, Addressing these areas will enable the offering whereas the technology drivers account for the to be more competitive from a revenue remaining 59.6%. This is highlighted in the perspective. In order to maximize the benefits cloud-readiness scale that outlines both of a cloud delivery channel, it is imperative to business and technology drivers. focus on important aspects such as customer segmentation and overall pricing strategy. Cloud Readiness Scale 100.00% Technology Gap Analysis 90.00% 80.00% Technology Gap Analysis 59.6% 70.00% Virtualization Tenancy Infrastructure Cloud Platform 60.00% ManagementReadiness 50.00% 40.00% Score 50.00% 33.33% 75.00% 75.00% 30.00% 20.00% 10.00% Key areas to focus to enhance your offering are: 0.00% Unit of Sale Pricing Pricing Basis Virtualization Tenancy Infrastructure Cloud Strategy Management Platform • Virtualization • Tenancy IBM WD and GTS Application Services provide cloud application resources and cloud In order to be more cost elastic, the offering application development services for rapid must address these areas. Cloud computing application development. This will help mitigate the technology gaps. The financial allows ISVs to leverage a more elastic cost implication of this is highlighted in the financial structure. Selecting the appropriate IBM tools projection section. and technology will ensure operational efficiency leading to a more elastic cost- 1Current-state Gap Analysis structure to fully leverage a cloud-based The current-state opportunities are categorized delivery channel for your offering. into business and technology. The recommendation section provides the IBM Cloud Project Alignment appropriate IBM tools and technology that will The current state of the offering aligns it to the provide a sustainable and effective way to following IBM Cloud Application Enablement address these opportunities and migrate the Project. offering to a public cloud. 1 A higher percentage indicates a lower gap to become “cloud ready”
    • Cloud Application Enablement Project “another product” with non- 3. Hybrid Integration differentiating substitutes. These recommendations will prove to be highly 2. Infrastructure Selection useful considering that migrating an existing 1. Workload Virtualization offering from an enterprise license to cloud must create an alternate lucrative channel that addresses the customers’ price sensitivity, at Integrated Middleware Scalable Delivery Application Integration the same time makes the offering affordable to other prospective customer segments.The gaps are adequately addressed by aligning Technology Recommendationsto the Workload Virtualization and The key areas to focus are:Infrastructure Selection decision points in thisproject. The tools and technology aligned to • Tenancy – Utilizing IBM IWD suite of toolsthese decision points will address the will address the tenancy issues by:Virtualization and Tenancy challenges thereby • Enable topology patterns to ensureleading to the appropriate infrastructure multi-tenant or similar delivery patternsselection of public cloud. These will accelerate • Allowing a customer-based instancethe migrate decision of the existing offering and segregation leading to betterwill be key catalysts to achieving the time line of management of customer demand1 year. • Migrate to a full multi-tenant over a period of time leading to completelyBusiness Recommendation elastic operating structureThe key areas to focus in this area are: • Virtualization – IBM IWD and as IBM Tivoli Service Automation Manager suite of tools • Unit of Sale: Aligning the unit of sale to will enable you to achieve the following: your customers’ consumption unit will • Provide virtualization capabilities at the enable you to sell your offering at units infrastructure, platform and application that provides a higher value. layers Introducing a unit of sale that is more granular in nature such as per seat, or Utilizing IBM’s public cloud as a delivery channel per business transaction will enable will ensure economies of scale, lower vendor your customer to scale their cost management costs leading to an overall structure with consumption. reduction in 2TCO. • Pricing Basis: Moving to a value-based pricing basis will improve the ability to Projected Financial Impact price better. A cost-plus pricing will The following pro-forma financial comparison increase pressure on the cost-side of takes into account the savings in Capital the earnings equation which may not Expenses (CAPEX) and Operating Expenses yield a higher earning after a period of (OPEX) as a result of leveraging IBM IWD and time. Customers must perceive the 2 offering to add “value” instead of just Total Cost of Ownership – the total cost of owning and operating the offeringCopyright © TechStrategyLabs Inc. 1
    • other IBM technologies mentioned. The Software Cost Comparisoncomparison determines a projected net-savings 90%as a result of “standard industry” savings 80% 70% (% of TCO - net of SG&A)patterns observed across various ISV types. 60% 50%This analysis takes standard savings and does 40% Current State Transformed statenot guarantee the net-savings in specific cases. 30% 20%It represents the net-savings experienced by 10%ISVs closest to your profile with certain 0% 1 2 3 4 5 6assumptions. The NPV of net-savings is Yeardetermined using standard industry averagecost of capital between 10%-15%. Hardware Cost Comparison 0.16Current StateProjected Cost 0.14 Software (% of TCO - net of SG&A) 0.12 CAPEX $ 1,000,000 $ 1,150,000 $ 1,322,500 $ 1,520,875 $ 1,749,006 OPEX $ 150,000 $ 172,500 $ 198,375 $ 228,131 $ 262,351 0.1 Hardware 0.08 CAPEX $ 250,000 $ 266,250 $ 283,556 $ 301,987 $ 321,617 Current State OPEX $ 37,500 $ 39,938 $ 42,533 $ 45,298 $ 48,242 0.06 Transformed state Staff $ 610,938 $ 662,867 $ 719,211 $ 780,344 $ 846,673 0.04 Sub-total $ 2,048,438 $ 2,291,555 $ 2,566,176 $ 2,876,636 $ 3,227,889 0.02 SG&A $ 2,500,000 $ 2,812,500 $ 3,164,063 $ 3,559,570 $ 4,004,517 Total Cost - Current State $ 4,804,492 $ 5,390,499 $ 6,051,010 $ 6,795,785 $ 7,635,892 0 1 2 3 4 5 6Projected Earnings $ 4,195,508 $ 5,859,501 $ 8,011,490 $ 10,782,340 $ 14,336,764 YearNet Present Value of Earnings ( 5 - year time line) $ 28,673,042Transformed State Operational Staff Cost ComparisonProjected Cost Software 0.6 CAPEX $ - $ - $ - $ - $ - OPEX $ 569,113 $ 654,480 $ 752,652 $ 865,549 $ 995,382 0.5 (% of TCO - net of SG&A) Hardware CAPEX $ - $ - $ - $ - $ - 0.4 OPEX $ - $ - $ - $ - $ - Staff $ 610,938 $ 555,953 $ 458,661 $ 355,463 $ 239,937 0.3 Current state Sub-total $ 1,180,050 $ 1,210,433 $ 1,211,313 $ 1,221,012 $ 1,235,319 0.2 Transformed state SG&A $ 2,500,000 $ 2,812,500 $ 3,164,063 $ 3,559,570 $ 4,004,517 Total Cost - Transformed State $ 3,680,050 $ 4,022,933 $ 4,375,375 $ 4,780,582 $ 5,239,835 0.1Projected Earnings $ 5,319,950 $ 7,227,067 $ 9,687,125 $ 12,797,543 $ 16,732,821 0Net Present Value of Earnings ( 5 - year time line) $34,517,667 1 2 3 4 5 6 YearNet Savings $ 1,124,442 $ 1,367,566 $ 1,675,635 $ 2,015,203 $ 2,396,057Net Present Value of Net Savings (5-year time line) $5,844,625Improvement in Earnings (5-year time line) 20.38% Assumptions • There is no CAPEX investment necessary toBased on the technologies recommended, the deploy the offering.NPV of the projected net-savings over a 5-year • Increase in OPEX as the cost-structuretime horizon is approximately 5.8M USD at an transforms to an elastic operational costaverage industry cost of capital. strategy correlated to the growth in revenue. If revenue reduces, the OPEX will reduce as well, resulting in stable earnings proportions.Copyright © TechStrategyLabs Inc. 2
    • • Reduction in staff costs are projected over IBM middleware virtual images and the 5-year time horizon due to process patterns to easily, quickly and repeatedly automation, reduction in human errors and create application environments service delivery speed. This may be • IBM PowerVM provides a secure and improved more by using smarter sourcing scalable virtualization environment for AIX, strategies. IBM i and Linux applications • IBM Integrated Service ManagementOverall, it is a financially rational decision to (Tivoli) provides solutions to design, buildconsider leveraging the IBM suite of and manage a dynamic infrastructure thattechnologies mentioned in the enables you to improve service, reduce costrecommendation section to transform into an and manage riskelastic cost and operational structure. • IBM WebSphere Cast Iron cloud Integration enables companies to rapidly connect theirKey terms hybrid world of public clouds, private clouds, and on-premise applications• Unit of Sale: The form in which the offering is sold to the end-customer i.e. seats, • IBM LotusLive offers online integrated names users, transactions etc. collaboration tools, e-mail and social networking services• Pricing Strategy: Refers to the customer segmentation and pricing e.g. whether the • IBM Cognos is an integrated business offering is sold using the same price for all intelligence and performance management types of customers or different price for solution different types of customer • IBM Global Technology Services (GTS)• Pricing Basis: This refers to the mechanism provide cloud and other infrastructure used to derive the price i.e. using cost as a services basis to derive price or other factors such as • IBM SmartCloud Enterprise + is cloud value to customer, competitive landscape infrastructure and services delivered via an etc. IBM owned & architected, multi-tenant,• TCO (Total Cost of Ownership) – total Cost secured, hosted infrastructure in an IBM of owning and operating any IT asset Data Center or in a dedicated environment• NPV (Net Present Value) – Difference or 3rd party site. between the future value of revenue and • IBM SmartCloud Application Services expenses, discounted at the present value provides a comprehensive set of services using a discounting factor (mostly a including full strength development tools Weighted Average Cost of Capital for a and integration services. Built for company) enterprises that want to leverage existing skills and assets but effectively deploy them in the cloudKey IBM Technologies/Offerings • IBM Starter Kit for Cloud is an entry cloud• IBM Workload Deployer (previously management software for IBM Systems WebSphere CloudBurst Appliance) is a (System x and Power) which complements hardware appliance that provides access to platform management and serviceCopyright © TechStrategyLabs Inc. 3
    • management offerings, enabling clients to simply and quickly build private clouds.Company InformationTechStrategyLabs provides executive advisoryservices to IT executives helping themformulate quantitatively-based strategies.Led by a team of highly experience principals,expert advisors and subject-matter experts, thefirm differentiates by using predictive analyticsand applied research to deliver their services.Contact:TechStrategyLabs Inc.Phone: +1.973.447.4161 | Fax: +1.973.447.0916Email: info@techstrategylabs.comWebsite: www.TechStrategyLabs.comCopyright © TechStrategyLabs Inc. 4