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IBM Global
                                         Technology Services
                                         CEE
                                         Managed Services
   Managed Services Introduction
                                   15 May 2012




Mihai Petrov
Datacenter Operations Manager
IBM Romania
IBM INDIA Pvt. Ltd.


 Spațiu



 1000 m2 doar pentru spațiu de servere
 Total 2500 m2 întreg datacenterul
 Spații dedicate și separate pentru
   – POP-uri telecom (meet-me rooms)
   – Distribuție electrică
   – UPS-uri
   – Baterii
   – Generatoare
   – Sistem de stingere incendiu
   – Depozite
   – Spațiu dedicat pentur descărcare, despachetare și instalare (staging area)
 Spațiu de creștere pentru elementele de infrastructură


                                                                         © 2010 IBM Corporation
   2
IBM INDIA Pvt. Ltd.


Să fie disponibil
Alimentare cu energie electrica


 Alimentare duală
 Propria centrală electrică (tri-generare)
    – Disponibil de putere 6.7 MW
 Fară single point of failure până la nivelul rack-
  ului
 UPS-uri în configurație N+1 pe fiecare linie cu
  baterii dedicate.
    – Peste 3000KVA N+1 capacitate actuală
 Generatoare pe fiecare linie dedicate pentru
  server room
    – Pentru utilități – generator separat
    – Peste 4.5MW putere de generare de urgență
 Rezervoare redundante externe de combustibil, 2
  x 31.000 l
 Testare săptămânală


                                                       © 2010 IBM Corporation
   3
IBM INDIA Pvt. Ltd.


Să fie disponibil
Răcire și umiditate


 Răcire și control umiditate la nivel de sala
 Răcire la nivel de rack în funcție de densitate
 Agent frigorific: apă
 Toate unitățile de răcire în configurație N+1
 Toate elementele sistemului de răcire alimentate dual, electric și agent frigorific
 Agent frigorific generat intern, cu absorber-e
 Backup: rezervoare și turbochiller
 Putere totala de răcire: 6.5 MW




                                                                              © 2010 IBM Corporation
   4
IBM INDIA Pvt. Ltd.


Să fie disponibil




                      © 2010 IBM Corporation
   5
Change is accelerating
    IBM INDIA Pvt. Ltd.




                                        IT demand                                                                  Need for flexibility




                                               Virtual servers                                                                    Of every US$1
                              82M              installed                                                                          is spent on
                                               by 20131                                                           70¢             maintaining
                                               Server                                                                             existing
                                               workloads                                                                          environment7
                              20%              have been
                                               virtualized2                                                     14                Average age of
                                               Increase in data                                                years              data centers8
                               50
                                               growth this
                             times             decade3
                                                                                                                                  Projected IT
                              Less             Disk storage                                                                       workloads can
                              than             is used
                                                                                                               5-60%              be cloud-
                              30%              effectively4                                                                       enabled9

     1
      International Data Corporation (IDC), IDC Worldwide Server Market Update: Server Workloads 2011 Research, August, 2011; 2Based on IIBM experience; individual client results vary;
     3
      IDC, IDC’s Digital Universe Study, sponsored by EMC, June, 2011; 4IBM Storage Innovation Executive Summit in New York City, May 9, 2011, by Brian Truskowski; 5IBM, The New Voice
     of the Chief Information Officer (CIO), September, 2009; 6GOldman Sachs: US Technology Strategy: Independent Insight IT Spending Survey, 2011; 7IBM, The Essential CIO: Insights
     from the Global Chief Information Officer Study, May, 2011; 8Data center discussion, Part II, Data Center Dynamics, 2011; 9IBM cloud computing organization estimate
3

                                                                                                                                                                 © 2010 IBM Corporation
         6
What is a Managed Services?
 IBM INDIA Pvt. Ltd.




  “Taking responsibility for daily operations of parts of the clients IT infrastructure”
     Parts of infrastructure: Server, Storage, Data center, Middleware, Networking, End-user, Security, etc.
     Various delivery options (local vs. global), asset ownership (IBM vs. Client), locations (IBM vs. Client vs. 3rd party)


                                                                                                                 “Run my
                                                                                                                 Process”
                                                                                               “Take IT
                                        Client Perception of the                                off my
                                                                                                hands”
                                      Managed Services Continuum
                                                                              ”Manage                              Business
                                                                                my                                 Process
                                                                               apps”
                                                             “Manage                                             All Business
                                                               my                                  All IT
                                                                                                                  Process IT
         Client’s risk                                       servers”
                                           “House
                                             my                               Applications     Applications      Applications
                                           servers”
                          “Monitor
                         my servers                         Infrastructure       Shared           Custom             Shared
                         in my DC”                                           Infrastructure    Infrastructure    Infrastructure

         “Help me
         with some                            Data              Data             Data              Data              Data
                                             Center            Center           Center            Center            Center
           tasks”

                            MIS               MIS               MIS               MIS              MIS               MIS




                                                      Value for client


      Staff                           Managed Services Space                                       SO           MBPS/BTO
   Augmentation
                                                                                                                    © 2010 IBM Corporation
    7
What is Pvt. Ltd.
           Application Hosting?
 IBM INDIA


  IBM Application Hosting offers clients mission-critical application hosting utilizing a highly
 flexible, scalable and resilient delivery model that is matched to the service level requirements
 of each client business application.

  Designed to support day-to-day operations, IBM Application Hosting provides integrated
 administration, monitoring, data protection and disaster recovery of the hosted infrastructure
 and applications to help reduce downtime and improve availability.



                                                                    Application Services




                                                                                                                                           acceptance testing, operational documents
                                                                                                                                          including design, installation, configuration,
                                             Basic application management (ERP’s like SAP, other ISV applications)
               Operations




                                                                                                                                                Infrastructure roll-out Services
  Enhanced




                                                                      Optional managed services
                            Equipment & OS Management                                    System software upgrade
                            Autom. & manual Back-up/restore                              Users' accounts management
                            Batch job management                                         Database management (Oracle, DB2, MS SQL)
                            Availability SLA (99,5%)


                                                                   Basic level of managed services
                            Service management                                           Monitoring & notification 24x7
  Operations




                            Technical support for OS


                                                                              Infrastructure
  Basic




                                                       Provision and Monitoring of Hardware, Software and Network

                                                                             Secure DC space
                                                           Located either in client’s, partner’s or IBM owned DC



                                                                                                                                     © 2010 IBM Corporation
      8
IBM provides expertise in working with ISVs to offer you options for
applicationLtd.
  IBM INDIA Pvt. hosting




Business
process                              Business Consulting Services




                                          Communications



                                                                Distribution


                                                                               Industrial



                                                                                            Finance
                           Public



Applications                                                                                          Independent Software
                                                                                                          Vendors (ISV)         IBM
                                      Vertical application
                                      services
                                    Horizontal application services

                                         Application Services
Infrastructure                        Optional managed services
and management
services                            Basic level of managed services

                                                           Infrastructure

                                                   Secure DC space


    Applications supported may be ERP based (e.g. SAP), Oracle or any client owned & developed proprietary application.


                                                                                                                             © 2010 IBM Corporation
   9
SolutionPvt. Ltd.
 IBM INDIA
           Design - Basic Operations of Application Hosting

 Basic Operations

 Provision and Management of
  Secured Data Center space (IBM DC - Bucharest)
  Infrastructure provision and roll-out services incl. design, installation, configuration, testing, and
   documentation for dedicated, shared and cloud based Hardware, Software and Network connection.
  Hardware infrastructure monitoring and Proactive Service Management for Operating System - through
   Rich dashboard for collection and presentation of real time data, 24x7 notifications, OS technical
   support.




                                   Dedicated                      Shared                         Cloud based (public)
                                   Environment for                Different clients              Environment provided as
                                   one client. May                covered out of                 Smart Cloud Enterprise+
                                   include Cloud                  one infrastructure.
                                   technologies.
                                                         Basic level of managed services
                Basic Operations




                                       Service management                          Monitoring & notification 24x7




                                                                                                                      roll-out Services
                                                                                                                       Infrastructure
                                       Technical support for OS

                                                                 Infrastructure
                                          Provision and Monitoring of Hardware, Software and Network

                                                                     Secure DC space
                                                                                                                                          © 2010 IBM Corporation
   10                                                                 IBM owned DC
SolutionPvt. Ltd.
 IBM INDIA
           Design – Flexible Application Hosting Design

 Enhanced Operations –
  Based on customer requirements different setups and complexities are possible:

 Provision and Management of

  Infrastructure preventive and corrective maintenance for Network, Firewall, Server and Storage
   Hardware.

  Monitoring and Proactive Service Management for Database, Middleware and applications on top of
   the OS through the Rich dashboard , 24x7 notifications, technical support and administration.

  Automated Back-up services, User Profile Management Services, Upgrades of System Software and
   Enhanced Security Services – System logical security reviews.

  Performance and Capacity planning, SLA agreements, Operational documentation administration.

  Application response time monitoring, Management and Support Services for ERPs like SAP or any
   other application.
                                                             Application Services




                                                                                                                roll-out Services
                                      Basic application management (ERP’s like SAP, other ISV applications)




                                                                                                                 Infrastructure
                         Operations




                                                            Optional managed services
              Enhanced




                                        Equipment & OS Management           System software upgrade
                                        Autom. & manual Back-up/restore     Users' accounts management
                                        Batch job management                Database management (Oracle, DB2,
                                                                                                                                    © 2010 IBM Corporation
   11                                   Availability SLA (99,95%)           MS SQL)
With Application Hosting, IBM improves the quality of services while
advancing Ltd.
  IBM INDIA Pvt. client IT organizations capacity to deliver strategic impact.



  Reduce costs and maximize ROI
     Predictability of costs and no up front investment, freeing up funds for strategic initiatives.
     Optimization of CAPEX (e.g. for HW and infrastructure acquisition) and transfer to OPEX.
     Reduction of financial entry hurdles (e.g. pre-investment).
     More flexible and scalable pricing models incl. billing based on cost metrics related to business.
     Cost reduction of 20% to 30% possible, through integrated operations and increase in efficiency.

  Improve service and quality
   Increase utilization and optimize IT capacity due to virtualization and near-real-time allocation of storage.
   Re-allocation of scarce resources to focus on core business functions.
   Increase in operational efficiency e.g. by utilization of tools and processes from IBM which can reduce
    application installation period by 30%.
   Flexible and scalable solution, e.g. based on advantage of scalable cloud based environment.
   Broad set of cloud tools and time-tested methodologies.
   Reduced complexity of IT environment.
   Near-continuous operations supported by SLAs customized according to client’s service requirements.
   Leveraging IBM’s extensive pool of skilled resources and expertise.

  Minimize and mitigate risk
     Improve access to mission-critical business applications and reduce (un)planned downtime.
     Lower the risks cost overruns and resource shortages.
     Reduce risks by around-the-clock monitoring and management in a save environment.
     Integrated solution can combine production operations with data protection and DR.

                                                                                                    © 2010 IBM Corporation
      12
Application Hosting Services optimize cost and time from application
implementation through ongoing operations.
  IBM INDIA Pvt. Ltd.




                           Implementation                                   Operation


                                                                       Optimized                      Standard
                                                                       service                        operational
                                                                       administration                 cost
               Standard
               Infrastructure
               implementation
               cost
                                                          Infrastructure
        Cost




                                Standard
                                implementation            optimization                  Savings from
                                cost       Implementation
                                                                                        15 up to 25 percent1
                                          optimization
                                                                                                                    Allows for
                                                                                                                    optimized
                                                                                                                    solution and
                                                                                                                    stabilized
                                                                                                                    operation with
                                                                       New Operational cost
                                                                                                                    linear and
                            New                                                                                     predictable
                            implementation                                                                          costs for the
                            cost                                                                                    client
                                                 Go live

                                                                Time
                Design            Implementation         Roll-out      Operation, support and improvements



                                                                                                               © 2010 IBM Corporation
   13
WhyINDIA Pvt. Ltd.
 IBM
     IBM?
   IBM has 20+ years experience running mission critical applications in production environments for clients:
           – Experience in implementation, upgrading, migration, hosting and dimensioning of critical applications.
           – Monitoring and managing security infrastructure for more than 4,000 clients worldwide.
           – Managing over 1 million virtual machines worldwide.
        – Processing 4.5 million transactions through IBM Cloud per day.
     IBM is an industry-leading provider of business continuity services:
        – Over 160 global resiliency centers in 70 countries.
        – Almost 1,800 dedicated business continuity professionals.
        – Possessing extensive business process and technology expertise.
     As a service partner IBM grants instant access to a broad range of skills in Central and Eastern Europe
        – More than 2200 client services people across 15 countries in CEE
        – More than 6500 people in global delivery centers (GDC) in Wroclaw/Poland, Brno/Czech Republic,
          Szekesfehervar/Hungary, GPSG Bucharest/Romania, GPS Delivery center Bratislava/Slovakia
        – GDC’s offer administration, operation, 2nd and 3rd level support for more than 780 clients
          internationally and locally on multiple platforms (Distributed, Midrange, Mainframe) and in multiple
          languages
        – IBM Shared services centers: Bratislava, Bulgaria, Romania, Poland, etc.
        – Wide range of technical skills and competencies covering IBM and non-IBM technologies
     As an OEM of software, hardware, maintenance and services, IBM is able to provide an end-to-end
      solution including all cricital components, out of one hand.
     Flexible solution design allows for a tailored approach which is still based on best practices:
        – Service Levels to ensure availability of applications based on business requirements.
        – Option for an On-demand provisioning.
        – Dedicated vs. Shared vs. Cloud setup.
        – Predictability of costs through transparent pricing models.
   R&D investments of $6 billion per annum in services are leading to continual improvement in our
    capabilities and quality.                                                                  © 2010 IBM Corporation
      14

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Ibm 14052012

  • 1. IBM Global Technology Services CEE Managed Services Managed Services Introduction 15 May 2012 Mihai Petrov Datacenter Operations Manager IBM Romania
  • 2. IBM INDIA Pvt. Ltd. Spațiu  1000 m2 doar pentru spațiu de servere  Total 2500 m2 întreg datacenterul  Spații dedicate și separate pentru – POP-uri telecom (meet-me rooms) – Distribuție electrică – UPS-uri – Baterii – Generatoare – Sistem de stingere incendiu – Depozite – Spațiu dedicat pentur descărcare, despachetare și instalare (staging area)  Spațiu de creștere pentru elementele de infrastructură © 2010 IBM Corporation 2
  • 3. IBM INDIA Pvt. Ltd. Să fie disponibil Alimentare cu energie electrica  Alimentare duală  Propria centrală electrică (tri-generare) – Disponibil de putere 6.7 MW  Fară single point of failure până la nivelul rack- ului  UPS-uri în configurație N+1 pe fiecare linie cu baterii dedicate. – Peste 3000KVA N+1 capacitate actuală  Generatoare pe fiecare linie dedicate pentru server room – Pentru utilități – generator separat – Peste 4.5MW putere de generare de urgență  Rezervoare redundante externe de combustibil, 2 x 31.000 l  Testare săptămânală © 2010 IBM Corporation 3
  • 4. IBM INDIA Pvt. Ltd. Să fie disponibil Răcire și umiditate  Răcire și control umiditate la nivel de sala  Răcire la nivel de rack în funcție de densitate  Agent frigorific: apă  Toate unitățile de răcire în configurație N+1  Toate elementele sistemului de răcire alimentate dual, electric și agent frigorific  Agent frigorific generat intern, cu absorber-e  Backup: rezervoare și turbochiller  Putere totala de răcire: 6.5 MW © 2010 IBM Corporation 4
  • 5. IBM INDIA Pvt. Ltd. Să fie disponibil © 2010 IBM Corporation 5
  • 6. Change is accelerating IBM INDIA Pvt. Ltd. IT demand Need for flexibility Virtual servers Of every US$1 82M installed is spent on by 20131 70¢ maintaining Server existing workloads environment7 20% have been virtualized2 14 Average age of Increase in data years data centers8 50 growth this times decade3 Projected IT Less Disk storage workloads can than is used 5-60% be cloud- 30% effectively4 enabled9 1 International Data Corporation (IDC), IDC Worldwide Server Market Update: Server Workloads 2011 Research, August, 2011; 2Based on IIBM experience; individual client results vary; 3 IDC, IDC’s Digital Universe Study, sponsored by EMC, June, 2011; 4IBM Storage Innovation Executive Summit in New York City, May 9, 2011, by Brian Truskowski; 5IBM, The New Voice of the Chief Information Officer (CIO), September, 2009; 6GOldman Sachs: US Technology Strategy: Independent Insight IT Spending Survey, 2011; 7IBM, The Essential CIO: Insights from the Global Chief Information Officer Study, May, 2011; 8Data center discussion, Part II, Data Center Dynamics, 2011; 9IBM cloud computing organization estimate 3 © 2010 IBM Corporation 6
  • 7. What is a Managed Services? IBM INDIA Pvt. Ltd. “Taking responsibility for daily operations of parts of the clients IT infrastructure”  Parts of infrastructure: Server, Storage, Data center, Middleware, Networking, End-user, Security, etc.  Various delivery options (local vs. global), asset ownership (IBM vs. Client), locations (IBM vs. Client vs. 3rd party) “Run my Process” “Take IT Client Perception of the off my hands” Managed Services Continuum ”Manage Business my Process apps” “Manage All Business my All IT Process IT Client’s risk servers” “House my Applications Applications Applications servers” “Monitor my servers Infrastructure Shared Custom Shared in my DC” Infrastructure Infrastructure Infrastructure “Help me with some Data Data Data Data Data Center Center Center Center Center tasks” MIS MIS MIS MIS MIS MIS Value for client Staff Managed Services Space SO MBPS/BTO Augmentation © 2010 IBM Corporation 7
  • 8. What is Pvt. Ltd. Application Hosting? IBM INDIA  IBM Application Hosting offers clients mission-critical application hosting utilizing a highly flexible, scalable and resilient delivery model that is matched to the service level requirements of each client business application.  Designed to support day-to-day operations, IBM Application Hosting provides integrated administration, monitoring, data protection and disaster recovery of the hosted infrastructure and applications to help reduce downtime and improve availability. Application Services acceptance testing, operational documents including design, installation, configuration, Basic application management (ERP’s like SAP, other ISV applications) Operations Infrastructure roll-out Services Enhanced Optional managed services Equipment & OS Management System software upgrade Autom. & manual Back-up/restore Users' accounts management Batch job management Database management (Oracle, DB2, MS SQL) Availability SLA (99,5%) Basic level of managed services Service management Monitoring & notification 24x7 Operations Technical support for OS Infrastructure Basic Provision and Monitoring of Hardware, Software and Network Secure DC space Located either in client’s, partner’s or IBM owned DC © 2010 IBM Corporation 8
  • 9. IBM provides expertise in working with ISVs to offer you options for applicationLtd. IBM INDIA Pvt. hosting Business process Business Consulting Services Communications Distribution Industrial Finance Public Applications Independent Software Vendors (ISV) IBM Vertical application services Horizontal application services Application Services Infrastructure Optional managed services and management services Basic level of managed services Infrastructure Secure DC space Applications supported may be ERP based (e.g. SAP), Oracle or any client owned & developed proprietary application. © 2010 IBM Corporation 9
  • 10. SolutionPvt. Ltd. IBM INDIA Design - Basic Operations of Application Hosting Basic Operations Provision and Management of  Secured Data Center space (IBM DC - Bucharest)  Infrastructure provision and roll-out services incl. design, installation, configuration, testing, and documentation for dedicated, shared and cloud based Hardware, Software and Network connection.  Hardware infrastructure monitoring and Proactive Service Management for Operating System - through Rich dashboard for collection and presentation of real time data, 24x7 notifications, OS technical support. Dedicated Shared Cloud based (public) Environment for Different clients Environment provided as one client. May covered out of Smart Cloud Enterprise+ include Cloud one infrastructure. technologies. Basic level of managed services Basic Operations Service management Monitoring & notification 24x7 roll-out Services Infrastructure Technical support for OS Infrastructure Provision and Monitoring of Hardware, Software and Network Secure DC space © 2010 IBM Corporation 10 IBM owned DC
  • 11. SolutionPvt. Ltd. IBM INDIA Design – Flexible Application Hosting Design Enhanced Operations – Based on customer requirements different setups and complexities are possible: Provision and Management of  Infrastructure preventive and corrective maintenance for Network, Firewall, Server and Storage Hardware.  Monitoring and Proactive Service Management for Database, Middleware and applications on top of the OS through the Rich dashboard , 24x7 notifications, technical support and administration.  Automated Back-up services, User Profile Management Services, Upgrades of System Software and Enhanced Security Services – System logical security reviews.  Performance and Capacity planning, SLA agreements, Operational documentation administration.  Application response time monitoring, Management and Support Services for ERPs like SAP or any other application. Application Services roll-out Services Basic application management (ERP’s like SAP, other ISV applications) Infrastructure Operations Optional managed services Enhanced Equipment & OS Management System software upgrade Autom. & manual Back-up/restore Users' accounts management Batch job management Database management (Oracle, DB2, © 2010 IBM Corporation 11 Availability SLA (99,95%) MS SQL)
  • 12. With Application Hosting, IBM improves the quality of services while advancing Ltd. IBM INDIA Pvt. client IT organizations capacity to deliver strategic impact. Reduce costs and maximize ROI  Predictability of costs and no up front investment, freeing up funds for strategic initiatives.  Optimization of CAPEX (e.g. for HW and infrastructure acquisition) and transfer to OPEX.  Reduction of financial entry hurdles (e.g. pre-investment).  More flexible and scalable pricing models incl. billing based on cost metrics related to business.  Cost reduction of 20% to 30% possible, through integrated operations and increase in efficiency. Improve service and quality  Increase utilization and optimize IT capacity due to virtualization and near-real-time allocation of storage.  Re-allocation of scarce resources to focus on core business functions.  Increase in operational efficiency e.g. by utilization of tools and processes from IBM which can reduce application installation period by 30%.  Flexible and scalable solution, e.g. based on advantage of scalable cloud based environment.  Broad set of cloud tools and time-tested methodologies.  Reduced complexity of IT environment.  Near-continuous operations supported by SLAs customized according to client’s service requirements.  Leveraging IBM’s extensive pool of skilled resources and expertise. Minimize and mitigate risk  Improve access to mission-critical business applications and reduce (un)planned downtime.  Lower the risks cost overruns and resource shortages.  Reduce risks by around-the-clock monitoring and management in a save environment.  Integrated solution can combine production operations with data protection and DR. © 2010 IBM Corporation 12
  • 13. Application Hosting Services optimize cost and time from application implementation through ongoing operations. IBM INDIA Pvt. Ltd. Implementation Operation Optimized Standard service operational administration cost Standard Infrastructure implementation cost Infrastructure Cost Standard implementation optimization Savings from cost Implementation 15 up to 25 percent1 optimization Allows for optimized solution and stabilized operation with New Operational cost linear and New predictable implementation costs for the cost client Go live Time Design Implementation Roll-out Operation, support and improvements © 2010 IBM Corporation 13
  • 14. WhyINDIA Pvt. Ltd. IBM IBM?  IBM has 20+ years experience running mission critical applications in production environments for clients: – Experience in implementation, upgrading, migration, hosting and dimensioning of critical applications. – Monitoring and managing security infrastructure for more than 4,000 clients worldwide. – Managing over 1 million virtual machines worldwide. – Processing 4.5 million transactions through IBM Cloud per day.  IBM is an industry-leading provider of business continuity services: – Over 160 global resiliency centers in 70 countries. – Almost 1,800 dedicated business continuity professionals. – Possessing extensive business process and technology expertise.  As a service partner IBM grants instant access to a broad range of skills in Central and Eastern Europe – More than 2200 client services people across 15 countries in CEE – More than 6500 people in global delivery centers (GDC) in Wroclaw/Poland, Brno/Czech Republic, Szekesfehervar/Hungary, GPSG Bucharest/Romania, GPS Delivery center Bratislava/Slovakia – GDC’s offer administration, operation, 2nd and 3rd level support for more than 780 clients internationally and locally on multiple platforms (Distributed, Midrange, Mainframe) and in multiple languages – IBM Shared services centers: Bratislava, Bulgaria, Romania, Poland, etc. – Wide range of technical skills and competencies covering IBM and non-IBM technologies  As an OEM of software, hardware, maintenance and services, IBM is able to provide an end-to-end solution including all cricital components, out of one hand.  Flexible solution design allows for a tailored approach which is still based on best practices: – Service Levels to ensure availability of applications based on business requirements. – Option for an On-demand provisioning. – Dedicated vs. Shared vs. Cloud setup. – Predictability of costs through transparent pricing models.  R&D investments of $6 billion per annum in services are leading to continual improvement in our capabilities and quality. © 2010 IBM Corporation 14

Editor's Notes

  1. In January, GTS created a new unit to focus on sales of Cloud & Managed Services. We did this in response to a profound shift in the marketplace, as cloud adoption accelerates and clients are more interested in consuming services. We’re seeing fewer large scale outsourcing deals in the marketplace as clients move to more of a “pay as you go model”. We have been selling managed services for 20 years. What we’ve learned from 4 years of selling cloud services is that there’s little distinction in the minds of most clients between what is “cloud” and what we have called “managed services”. We recognize that it’s fundamental similarity with cloud gives us an opportunity to create a portfolio view that will resonate better in the marketplace and capture growth.
  2. This slide shows a sense of what’s really happening in the marketplace and it’s very clear that change is accelerating. Customers’ challenges continue to be driven by three main factors: IT demand is exploding, resulting in a large increase in the number of servers and storage installed. • IDC estimates that in the next two years, the number of servers installed in clients is going to be around 82 million servers. That’s about a 49 percent increase over how many servers are actually installed today. (1. Source: IDC WW Server Market Update: Server Workloads 2011 Research – Aug 2011 ) • Yet, in a distributed computing environment, studies indicate the average utilization is less than 20 percent meaning over 80 percent of the assets are under utilized. (2. Source: These proof points come from IBM experience with past customer engagements. Individual client results vary. ) • In another recent study, International Data Corporation (IDC) states that over the next decade, the amount of information managed by enterprise datacenters will grow by a factor of 50. (3. Source: IDC's Digital Universe Study , sponsored by EMC, June 2011) • Yet IBM continues to see that less than 30 percent of disk storage is used effectively. (4. Source: IBM, Storage Innovation Executive Summit in NYC on May 9th, 2011 by Brian Truskowski) Cost pressures are accelerating, as chief information officers (CIOs) must manage increased IT demand without a corresponding budget increase. • CIOs in both high-growth and low-growth companies generally agreed that infrastructure will probably become more centralized in the next five years. This prediction is consistent with views from the IBM Global chief executive officer (CEO) study, in which CEOs selected complexity as the number one issue and indicated that they are seeking to simplify business processes in order to be more flexible to market dynamics. As a result, over 75 percent of CIOs believe that they are going to centralize and rationalize their IT infrastructure to really focus on reducing costs. (5. Source: IBM, The New Voice of the CIO , September, 2009) • 3 percent Increase in IT spending -- “We retain our 2012 IT spending forecast at three percent, which reflects our advanced economies and emerging markets forecasts of two percent and eight percent (versus nine percent previously), respectively.” (6. Source: Goldman Sachs - US Technology Strategy: Independent Insight IT Spending Survey : 2011 finishes inline, but 2012 resets to lower base) Inflexibility : Data center environments need to be flexible and responsive to change. Very few customers can accurately predict their IT growth over a long period of time—for example, the 10-20 years of a data center’s useful life. Some of the factors that have dramatically changed in the past few years are: • Data center infrastructures are now considered very old and very inflexible. In fact, 70 to 80 percent of an organization’s IT dollar is typically spent managing their current environment , and only 20 to 30 cents of every dollar is being spent to add new functionality and capability. (7. Source: IBM, The Essential CIO: Insights from the Global Chief Information Officer Study , May 2011 ). These services are really intended to help that transition and to help free up money for organizations to spend developing new innovations, increasing competitive edge, and improving responsiveness to their current customer demands. • “ The average age of enterprise data centers is 14 years and IDC estimates that 85 percent of facilities built before 2001 are already obsolete. More importantly, most legacy data centers lack the flexibility required by the present dynamic environment. Cloud has exacerbated the need for agility and adaptability to new levels of power density, adjustable redundancy and higher energy efficiency.” (8. Source: Data center discussion part II: Existing traditional data centers will fade away, Data Center Dynamics, Nov 2011) • The emergence of new computer technologies such as cloud computing with IBM estimates that 5-60 percent of workloads could be cloud enabled over the life of a data center. (9. Source: IBM Cloud computing organization estimate) Let’s look at how IBM can help you meet these challenges.
  3. The advent of cloud computing, interestingly enough, is not another vertical column within managed services, but rather is a delivery choice customers are asking for across the spectrum of managed services.
  4. The provisioning of Infrastructure in a secured Data Center space builds the base. Further components are complementary including maintenance, infrastucture management and monitoring, provision and management of middleware and applications up to basic application support
  5. The graphic on this slide illustrates the service areas in which IBM can provide its business continuity and resiliency service offerings. The blue boxes indicate the different services we offer under the business process and infrastructure and management services portfolio. The green boxes indicate the vertical and horizontal application services that are provided by independent software vendors (ISVs).
  6. The area chart on this slide represents the tradeoff between the cost and time of implementing and operating IBM SmartCloud Application Resiliency Services. The bright green area depicts operational cost, the yellow area depicts new implementation cost and the blue area depicts savings.