The document provides an overview of an assessment that analyzes a company's readiness to transition to cloud computing. It outlines a survey that collects business and technical information to evaluate key gaps and make recommendations on leveraging IBM's cloud offerings. The survey addresses factors like business goals, pricing strategies, infrastructure management, and virtualization to develop a customized plan to accelerate the company's cloud transformation.

1. Cloud
Readiness
Assessment
TechStrategyLabs Inc.
Planning
Survey
Assessment

2. ISV Cloud Business Readiness Assessment
Welcome
Welcome, Cloud Computing ISVs
This multi-dimensional analyzer assesses key gaps in your current strategy, and aligns you to IBM's cloud offerings
that will enable you to accelerate innovation. The recommendations are strategic steps in your journey to leverage
cloud computing to successfully transform your business.
To get started please move to the next page…

3. Flow of questions...
In order for us to assist you in this important transformation, you will be requested to provide some
business 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 market
2. What is the expected revenue/cost reduction goal for this initiative? *
Up to 5M USD 5M - 15M USD Greater than 15M USD

4. 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 market
4. What is the intent behind leveraging cloud computing? *
Build a cloud infrastructure Enable your application in the cloud
Extend your cloud application
5. What phase of the transformation are you engaged currently? *
Exploring options Planning Design and Architecture Execution
Operational Optimization
Now tell us a bit about your product...
If you are an Application Service Provider (ASP), and offering your product
as 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 cloud
7. 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? *

5. 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 capacity
10. In what units would you like to offer your product in future? *
Users Seats Transactions ASP-based customers
Computing capacity
11. What are your customers most sensitive to? *
Price Service Security Integration
12. What is your existing pricing strategy? *
Single-segment - Single Price Single-segment - Tiered-Price
Multi-segment - Tiered-Price
13. What is basis for your existing pricing? *
Cost-plus pricing Value-based pricing Competition-based pricing
Customer-driven pricing
14. 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? *

6. 16. What is the infrastructure (image and workload) management technology you currently use in
production? *
Home grown
Open View
Microsoft
VMWare
Amazon
Open Source (KVM, Xen)
IBM Tivoli
17. 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 vanilla
Please 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 USD
19. What is your approximate annual software maintenance spend (as a % of total annual
software spend)? *
20. How much do you approximately spend on hardware annually? *

7. Less than 250K USD Between 250k - 1.5M USD Greater than 1.5K USD
21. What is your approximate annual hardware maintenance spend(as a % of total annual
hardware 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 USD
23. What is the approximate current annual revenue from your offering (that you want to
transform)? *
0 - 1M USD
1M - 5M USD
5M - 20M USD
20M - 100M USD
Greater than 100M USD
24. 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 USD
Please tell us a bit about yourself...
Your name *
26. Job title *

8. President/CEO
COO
CFO
CMO
Senior Director
Director
Senior Manager
Manager
Senior Associate
Associate
Email *
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
No
Thank You!
Thank you for your input. We now have a better idea on what you need. We will now conduct an in-depth analysis
of your need, and create a detailed report base on your input. The report will be emailed to you within the next few
hours.
Thanks
TechStrategyLabs Inc.

10. Cloud
Readiness
Planning
Sample Company
TechStrategyLabs Inc.
October 12, 2011
The contents of this report have been prepared exclusively for Sample Company and may not be used for
any reason by any other party. The conclusions contained herein represent TechStrategyLabs’ analysis of
the data provided by Sample Company. TechStrategyLabs is not responsible for the authenticity of the
data provided by Sample Company. TechStrategyLabs has utilized all reasonable care in conducting its
analysis. TechStrategyLabs is not responsible or liable for any action taken by Sample Company based
upon this report.

11. TechStrategyLabs Inc.
Executive Summary deliver your offering using a level of
In the planning phase of preserving market granularity that signifies value to your
share for your company, with a revenue goal of customers. Since licensed software and
5M – 15M USD, by building cloud application, hardware add to the fixed cost of your
you may want to consider IBM’s Cloud customer, you may want to think about
Application Enablement Project mentioned using a unit of sale that would scale
below in the “Accelerating your cloud with your customers business.
transformation” section. Please feel free to Example: seats, transactions and named
take this assessment once you are about to users.
embark on your transformation to get a more • Pricing Strategy refers to how you
specific set of recommendations to accelerate would like to segment your customers
the 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 decide
In order to accurately plan the transformation on the features they need leading to
of your offering to leverage a cloud-based the price offered. Transforming to
delivery channel, it is imperative to stay focused leverage a cloud-delivery channel
on the ultimate business goal of your involves taking a closer look at your
corporation. The business goals may vary from target customer base, segmenting it
company to company. The most common ones based on features, affordability, and
may be preserving your market share, growth, and subsequently assigning a
penetrating 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 pricing
efficiency of your existing delivery channel. each customer segment. Usually,
companies use cost-based pricing
The key elements to measure your “cloud
readiness” consist of business and technical (where the price is determined by
factors. IBM’s WebSphere and Workload adding a markup percentage to the cost
of a unit of sale of the offering) or
Deployer suite of technologies are key catalysts
to enable you to transform successfully by competitive pricing (where a price is
influencing these factors. It is useful to consider determined by analyzing the price of
the prevailing competition in the
these factors while planning to transform your
market). Due to the competitive nature
offering to a cloud-enabled delivery channel.
of the cloud offering business, it may be
Business Factors necessary to assess the inherent
The key business factors influencing your “value” of the offering to ascertain the
transformation 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 business
Copyright © TechStrategyLabs Inc. 1

12. TechStrategyLabs Inc.
model of your offering addresses the overall important aspect of delivering your
business goal. It is then a mandatory exercise offering using a cloud channel. IBM’s
to address the technology factors and align Tivoli suite of technologies helps setup
them to address the overall business goal. and manage a fully automated
virtualized environment for your cloud
Technology Factors offering.
The key technology factors influencing your • Cloud Platform refers to the choice of
transformation 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 Provider
Copyright © TechStrategyLabs Inc. 2

13. TechStrategyLabs Inc.
cloud infrastructure to deliver 2IaaS/PaaS/SaaS Cloud Application Enablement Project
solutions and looking to make a capital 3. Hybrid Integration
investment 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 cloud
Cloud Application Enablement Project
application in order to enrich your value
If 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 your
or migrating an existing on-premise application
applications to add more competitive
to a cloud delivery model, you are aligned to
advantage to your offering.
this project. This will also enable you to add
Cloud Application Extension Project
multi-tenant function to your existing ASP 3. Collaboration
delivered applications. It also enables you to
extend your application to integrate with other 2. Analytics Social Business
SaaS 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 your
party (IBM/Other) to provide cloud Application
application value
through inclusion of
infrastructure 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 • LotusLive
2
IaaS – Infrastructure as a Service; PaaS – Platform
as a Service; SaaS – Software as a Service
Copyright © TechStrategyLabs Inc. 3

14. TechStrategyLabs Inc.
Summary patterns to easily, quickly and repeatedly
IBM offerings help you align your technology create application environments
choices to your business factors in order for you • IBM PowerVM provides a secure and
to address your overall business goal in scalable virtualization environment for AIX,
leveraging cloud computing. Please feel free to IBM i and Linux applications
take this assessment with your specific needs • IBM Integrated Service Management
once you have decided on your cloud trajectory (Tivoli) provides solutions to design, build
to receive a more specific set of and manage a dynamic infrastructure that
recommendations that aligns your specific enables you to improve service, reduce cost
needs to IBM technologies to accelerate your and manage risk
transformation. • IBM WebSphere Cast Iron cloud Integration
enables companies to rapidly connect their
hybrid world of public clouds, private
Key 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 cloud
Key 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 and
Copyright © TechStrategyLabs Inc. 4

15. TechStrategyLabs Inc.
management offerings, enabling clients to
simply and quickly build private clouds.
Company Information
TechStrategyLabs provides executive advisory
services to IT executives helping them
formulate quantitatively-based strategies.
Led by a team of highly experience principals,
expert advisors and subject-matter experts, the
firm differentiates by using predictive analytics
and applied research to deliver their services.
Contact:
TechStrategyLabs Inc.
Phone: +1.973.447.4161 | Fax: +1.973.447.0916
Email: info@techstrategylabs.com
Website: www.TechStrategyLabs.com
Copyright © TechStrategyLabs Inc. 5

16. Cloud
Readiness
Assessment
Sample Company
TechStrategyLabs Inc.
October 12, 2011
The contents of this report have been prepared exclusively for Sample Company and may not be used for
any reason by any other party. The conclusions contained herein represent TechStrategyLabs’ analysis of
the data provided by Sample Company. TechStrategyLabs is not responsible for the authenticity of the
data provided by Sample Company. TechStrategyLabs has utilized all reasonable care in conducting its
analysis. TechStrategyLabs is not responsible or liable for any action taken by Sample Company based
upon this report.

17. 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%
Management
Readiness
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”

18. 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 Recommendations
to the Workload Virtualization and
The key areas to focus are:
Infrastructure Selection decision points in this
project. The tools and technology aligned to • Tenancy – Utilizing IBM IWD suite of tools
these decision points will address the will address the tenancy issues by:
Virtualization and Tenancy challenges thereby • Enable topology patterns to ensure
leading to the appropriate infrastructure multi-tenant or similar delivery patterns
selection of public cloud. These will accelerate • Allowing a customer-based instance
the migrate decision of the existing offering and segregation leading to better
will be key catalysts to achieving the time line of management of customer demand
1 year. • Migrate to a full multi-tenant over a
period of time leading to completely
Business Recommendation elastic operating structure
The 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 offering
Copyright © TechStrategyLabs Inc. 1

19. other IBM technologies mentioned. The Software Cost Comparison
comparison 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 state
not 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 6
assumptions. The NPV of net-savings is Year
determined using standard industry average
cost of capital between 10%-15%. Hardware Cost Comparison
0.16
Current State
Projected 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 6
Projected Earnings $ 4,195,508 $ 5,859,501 $ 8,011,490 $ 10,782,340 $ 14,336,764 Year
Net Present Value of Earnings ( 5 - year time line) $ 28,673,042
Transformed State Operational Staff Cost Comparison
Projected 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
0.1
Projected Earnings $ 5,319,950 $ 7,227,067 $ 9,687,125 $ 12,797,543 $ 16,732,821
0
Net Present Value of Earnings ( 5 - year time line) $34,517,667 1 2 3 4 5 6
Year
Net Savings $ 1,124,442 $ 1,367,566 $ 1,675,635 $ 2,015,203 $ 2,396,057
Net Present Value of Net Savings (5-year time line) $5,844,625
Improvement in Earnings (5-year time line) 20.38% Assumptions
• There is no CAPEX investment necessary to
Based on the technologies recommended, the deploy the offering.
NPV of the projected net-savings over a 5-year
• Increase in OPEX as the cost-structure
time horizon is approximately 5.8M USD at an
transforms to an elastic operational cost
average 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

20. • 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 Management
Overall, it is a financially rational decision to
(Tivoli) provides solutions to design, build
consider leveraging the IBM suite of
and manage a dynamic infrastructure that
technologies mentioned in the
enables you to improve service, reduce cost
recommendation section to transform into an
and manage risk
elastic cost and operational structure.
• IBM WebSphere Cast Iron cloud Integration
enables companies to rapidly connect their
Key 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 cloud
Key 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 service
Copyright © TechStrategyLabs Inc. 3

21. management offerings, enabling clients to
simply and quickly build private clouds.
Company Information
TechStrategyLabs provides executive advisory
services to IT executives helping them
formulate quantitatively-based strategies.
Led by a team of highly experience principals,
expert advisors and subject-matter experts, the
firm differentiates by using predictive analytics
and applied research to deliver their services.
Contact:
TechStrategyLabs Inc.
Phone: +1.973.447.4161 | Fax: +1.973.447.0916
Email: info@techstrategylabs.com
Website: www.TechStrategyLabs.com
Copyright © TechStrategyLabs Inc. 4