CloudOne provides IBM Rational software in the cloud, offering various licensing options including owning, buying, or renting software. It has the largest partner consortium to help customers move to the cloud. CloudOne offers public, private, virtual private, and hybrid cloud styles with increasing value moving up the layers from infrastructure to applications. Key buyers are IT professionals concerned with security, users wanting new technology, and procurement focused on cost savings. Customers benefit from the cloud's elasticity, global access, and economic advantages. [END SUMMARY]

1. John.McDonald@OnCloudOne.net 10 July 2011 Selling Development Tools in the Cloud

2. Agenda About CloudOne Cloud Styles Cloud Layers Inside the Virtual Private Cloud Connecting to the Virtual Private Cloud Cloud Drivers Cloud Buyers Cloud Success Factors Cloud Security Peak Concurrent User Licensing Peak Concurrent User Licensing: The Hybrid Model Cloud Sales Process Steps Analyzing Total Cost of Ownership Analyzing Total Cost of Ownership: Examples IBMers Get More Commissions When Using CloudOne 2

3. Who is CloudOne? CloudOne is The first and leading provider of IBM Rational software in the cloud. The partner with the most flexible licensing options: you ownit, you buyit or you “rent”it through Software-as-a-Service in whatever combination makes sense. A company with the largest consortium of partners who help you move to the cloud. Rational + Cloud = Better Together

4. Cloud Styles 4 Public Clouds Private Clouds VirtualPrivate Clouds Hybrid Cloud Intercloud “Public Utility” bring any workload, your own software. Amazon, Google, IBM Manage your own internal resources like a cloud. Consulting Service Companies Your own, new, private datacenter in the cloud.

5. Cloud Layers 5 Increasing value & differentiation as you move up MigrationServices Software as a Service (SaaS) Application Software and Tools MigrationServices Platform as a Service (PaaS) Middleware, Databases, OS Consulting Services Transformation & Innovation Infrastructure as a Service (IaaS) Server, Storage, Network MigrationServices

6. Inside the Virtual Private Cloud Network Fully redundant VLAN trunking and encapsulation Server Intel based blades Redundant memory with failover Operating System VMware ESXi hypervisor Windows guest OS Linux guest OS Storage Storage area network Dynamically resizable

7. Connecting to a Virtual Private Cloud 7 Client and virtual servers connected to Internet, but not to each other. Cisco VPN makes secure “pipe” through Internet so Client can see/access server (through browser, internet protocols) Desktop software can be accessed through Remote Desktop Clients or through Virtual Desktop Integration (VDI)

8. Cloud Drivers Elastic Global Economical One common environment foreveryone,everywhere, anytime. Scales up(and down) real-time asyour businesschanges. Eliminateswaste and gets the most from your project’sbudget. Real collaboration, one project view, no access holes. Dynamic datacenter, always ready to scale, no “shelfware”. No startup costs, billing for actual use, no capital approvals.

9. Cloud Buyers “Joe” Users IT Finance “Buck” “Sally”

11. Successful when approaching Buck

12. Fails when approaching Sally“Joe” Users IT Finance “Buck” “Sally”

14. Successful when approaching Buck

16. Successful when approaching Joe

18. Successful when approaching Buck

20. Successful when approaching Joe

22. Successful when approaching Joe

24. Successful when approaching Buck

26. Successful when approaching Joe

28. Successful when approaching Joe

30. CloudOne Security OS/Server Image Image Hypervisor Blade Server Volumes Storage Unit Blade Enclosure Network Routing Rack Data Center All Layers 1..n(1..n Data Centers, 1..n Racks, etc.) Uninterrupted Cisco VPN “Envelope” From Desktop to Rational Server

31. Waste Peak Concurrent User Licensing Traditional Model Service Model Users Time

32. Peak Concurrent User Licensing Traditional Model Waste Users Time

34. No hardware resources/budget

35. No IT support resources

36. Lack of expertise

37. Short time frame

38. Need for flexibility

39. Want to try before buying

41. 5Propose 6Negotiate 7Implement 8Support To Pass Gate: Signed Contract Uses: MSA SLA ISSR or Partner SoW To Pass Gate: Help Desk Orientation Implement. Proj. Plan Support Handoff Call Uses: Sample Impl. Proj. Plan Help Desk Video/PDF To Pass Gate: Complete/Doc Pilot Complete/Doc Arch. Complete/Doc Proposal Uses: Arch. Present. Template InstaCloud Templates Reviewers Guides Proposal Template SaaS/Cloud Price Wkbk Additional Tasks: CEO Thank You & Gift Growth Sales Oppty Uses: Gifts & Cards Cloud Sales Process Steps

42. Analyzing Total Cost of Ownership Tangible Elements Software acquisition & Maintenance Hardware Acquisition & Maintenance Support Operating system software Network HW/SW Installation & Configuration Ongoing IT support Backup systems & Disaster Recovery Upgrade support Intangible Elements Rapid deployment Increased user adoption Reduced support needs Improved flexibility Improved compliance Very quick provisioning Avoid shelfware

43. Cloud Rational Team Concert from CloudOne Hospital has 50 total users of IBM Rational Team Concert Quick and effective Agile implementation Includes SaaS Floating software licenses and limits shelfware Allocation of infrastructure and support as noted 34% savings Analyzing Total Cost of Ownership: ExamplesHospital Team Concert Collaboration Workbench

44. Cloud Systems Workbench from CloudOne Electronics Manufacturer has 450 users of IBM Rational Developers Workbench including RQM, DOORS, Rhapsody, System Architect Includes SaaS Floating software licenses and limits shelfware Allocation of infrastructure and support as noted Analyzing Total Cost of Ownership: ExamplesElectronics Manufacturer Workbench

45. Cloud Focal Point from CloudOne City uses 50 seats of IBM Rational Focal Point for project decision support Includes SaaS Floating software licenses and limits shelfware Allocation of infrastructure and support as noted 29% savings Analyzing Total Cost of Ownership: ExamplesMunicipality Project Support

46. Cloud Performance Testing from CloudOne University needs to simulate 5,000 students using enrollment system Includes SaaS licenses for virtual users & server SaaS is elastic for “bursty” workloads like performance testing SaaS model eliminates “shelfware” 66% savings Analyzing Total Cost of Ownership: ExamplesHigher Education Web Performance Test

47. Cloud ClearCase/ClearQuest from CloudOne Global Retailer uses ClearCase & ClearQuest for internal product code management Includes SaaS Floating software licenses and limits shelfware Allocation of infrastructure and support as noted 35% savings Analyzing Total Cost of Ownership: ExamplesRetail Internal Code Management System

48. Cloud hosting and SaaS enable directcorrelationof cost to usage Hybridimplementation of software (blend of perpetual& SaaS) provides “best fit” Best utilization of knowledgeresources Simplified financial structure enables “charge back” to departments/projects Performance testing provides substantial savings Analyzing Total Cost of Ownership: ExamplesKey TCO Findings

49. IBMers Get More Commissions When Using CloudOne IBMers get paid on new license revenue CloudOne works like any other reseller for perpetual, term and token licenses You get sales credit and commission for anything sold that is fulfilled by CloudOne. IBMers get paid on Software as a Service You get sales credit on the software we buy from IBM to resell each month to your customer. Not just in the current period, but for as long as you own that customer! This is a new revenue stream for you: only with CloudOne! IBMers get paid on Services When CloudOne’s Cloud hosting is sold as a service under ISSR, you get $1 for every $1 of services revenue! This is a new revenue stream for you: only with CloudOne! 28

50. Summary CloudOne is the “Swiss Army Knife” partner CloudOne is a unique provider of Virtual Private Clouds CloudOne offers true Software as a Service capabilities CloudOne provides an integrated multilayer VPC CloudOne can integrate desktop software in many ways Global, Elastic and Economical are the cloud drivers IT, users and procurement are the buyers, and they must align You must establish trust F2F, and be an existing tool customer What CloudOne does for security is better than most Peak Concurrent User Licensing is the heart of cost savings Hybrid Model licensing is the most popular method There are eight Cloud Sales Process Steps Total Cost of Ownership is about both hardware and software There are TCO examples across many products and verticals IBMers get paid in new ways when using CloudOne 29