This document discusses the evolving nature of application and service management in cloud and shared IT infrastructures. It outlines how IT is transforming to shared infrastructure models and the need to intelligently manage this transformation through visibility, control, and automation. Specifically, it discusses how IBM provides: 1. Infrastructure monitoring across compute, storage, network resources to track cloud service levels and optimize workloads. 2. Event management to proactively identify and resolve issues impacting applications and end users. 3. Application performance management to ensure strong user experiences across hybrid environments. The document argues this approach helps customers attain the economic and service benefits of cloud while addressing challenges around availability, composition, performance, utilization and capacity in dynamic

1. The Evolving Nature of Application & Service
Management in Cloud & Shared IT Infrastructures
Visibility. Control. Automation.TM
© 2012 IBM Corporation

2. Agenda
1 IT’s Transformation to Shared Infrastructure
2 Intelligently Managing your Transformation
 Infrastructure Monitoring
 Event Management
 Application Performance Management
 Business Service Management
 Control Desk
3 Next Steps
2
2

3. 1 IT’s Transformation to Shared Infrastructure
3

4. Integrated service management supports successful IT
transformation to cloud & shared infrastructure
VISIBILITY CONTROL AUTOMATION
See and understand your Transform and adopt while Achieve greater efficiency & quality by
business in real-time limiting risk standardizing best practices
Business Services & Assets
Transitioning to Converging Leveraging Addressing data
Smarter, flexible Digital & Mobile & Web growth, threats,
infrastructures Physical Assets Endpoints & compliance
4

5. Common questions from customers during their IT transformation
to cloud & shared infrastructure
Infrastructure Line of
Teams Business
Teams
How can I monitor availability How can I manage services
and manage capacity of and the underlying IT &
dynamic IT infrastructure, network infrastructure
events, networks, & highly based on business priorities
virtualized environments? and with business context?
Operations
Teams
Operations
Teams
How can I monitor, optimize,
and analyze application
performance, transactions, and
processes end-to-end?
5

6. Evolving operations management
Cloud drives increased need to manage at the application and service level
Business Service
Performance
Application
Capacity
Utilization
Infrastructure
Composition
Availability
“Classic” IT Highly Virtualized Cloud-enabled PaaS
• Heterogeneous Infrastructure • Heterogeneous Middleware • Standardized Middleware
• Heterogeneous Middleware • Standardized Infrastructure • Standardized Infrastructure
6

7. Evolving operations management
Cloud requires broadening management focus beyond availability
Attaining the true economic, service delivery, and performance gains cloud & shared infrastructure can
provide, requires a broader, more disciplined approach to application and service management
Management Facets in the Cloud
AVAILABILITY COMPOSITION PERFORMANCE UTILIZATION CAPACITY
Ensure constant Discover in real-time Holistic performance Optimize the use of your Proactively manage
infrastructure availability as application infrastructure and management of limited resources to capacity to meet your
demand constantly shifts in application dependencies, as composite applications maximize efficiency, needs today while
dynamic environments they change regularly in across your multi-platform minimize CAPEX costs, confidently understanding
cloud & shared environments hybrid environment to without risking over and supporting your
ensure strong end user utilization needs tomorrow
experience
Smarter Planet
VISIBILITY CONTROL AUTOMATION
Predict & resolve application Effectively manage application Scale to peaks in demand while
problems before client impact changes, compliance & risk reducing administrative costs
7

8. 2 Intelligently Managing your Transformation
8

9. Manage and optimize performance of your cloud & shared
infrastructure
Greater visibility to cloud health
• Track cloud service levels, performance,
and predict cloud problems before clients are SmartCloud Monitoring
impacted
• Understand performance and capacity today,
and know what it will look like months from now
Increased Density
Performance
Optimization
Dashboards
Analytics
Capacity
Lower total cost of operations
Health
• Optimize workload placement to wring maximum Reduced Risk
utilization and performance out of your cloud
investment Minimized Outages
• Freedom from expensive hypervisor or OS lock-in
with a heterogeneous cloud infrastructure Optimized Workload
monitoring solution Placement
Improved Service
Optimize cloud performance Levels
• Built-in performance analytics for right-sizing
of virtual machines and resource optimization
in the cloud
• Real-time proactive alerts to identify and fix Virtual Machines | Storage | Networks
problems quickly
9

10. Holistically monitor cloud & virtualized resources across the
compute-storage-network infrastructure in a single dashboard
OS: OS metrics provide process data;
Hypervisor: Cluster, Host, VM utilization seen only from perspective of the
CPU/Memory metrics, Guest/VM.
Datastore usage, NIC,
vSwitch, metrics
Storage: Provides
health on physical
storage; storage
analysis
Network
Device or
Tivoli Network
Manager:
Physical Switch
& port
monitoring
Hardware: provides detailed health on
hardware. Some HW events surfaced in
Virtual Center
10

11. Meeting the challenges of a dynamic infrastructure with event
management
 Maximize Service Availability. Leverage hundreds
of out-of-the-box integrations, with included domain
Market Leading intelligent event reduction rules, to manage end-to-
Event Consolidation, Correlation & end infrastructure status and health with real-time
Analysis data access, from virtually any data source across
organizational boundaries
Transportation Facilities Production IT Hardware Network
Assets Equipment & Software
 Reduce Operational Costs. Consolidate operations
tools and management sources into a single pane-of-
glass providing operational and management
dashboards across the managed infrastructure.
More smart assets  Improve Staff Productivity. Utilize normalization,
Greater complexity
Escalating event volumes de-duplication, aggregation, and correlation
capabilities, as well as time, device, and service
based event reductions.
 Minimize human intervention. Exchange
information between peer systems and automate
maintenance actions and procedures.
 Increase Confidence. Leverage proven availability
and reliability that scales from the smallest to largest
environments with trusted system redundancy,
failover and security.

12. Costs of poor performing applications are sky-rocketing…
““Nearly 60% of survey respondents
.. issues with application performance reported the inability to identify issues
are impacting corporate revenues by up before end users are impacted…”
to 9%.” “Poor application performance translates to lost
“Poor application performance translates to lost revenue, revenue, research shows”, Network World
research shows”, Network World
“Organizations spend 54% of each outage
detecting and identifying.”
– EMA Decreasing IT Operational Costs by Accelerating
Problem Resolution, EMA
12

13. IBM SmartCloud Application Performance Management provides
the actionable insights required to optimize performance,
manage risk, and reduce costs in your application environment
Application End User Transaction Deep Predictive
Discovery Experience Tracking Dive Analytics
Visibility into Transaction Rapid problem Domain-specific Proactive Management
application performance isolation through operations tools to reduce outages &
resource monitoring to ensure transaction for diagnosis and improve business
dependency SLA compliance path analysis repair performance
 shared data & common services 
Understand
Drill into application
an issue Follow
See dependencies See steps
changing
the end-user across the
workloads
experience cloud
Mobile devices & Highly virtualized applications, Private, public &
smart endpoints storage & networks hybrid clouds
13

14. Dramatically simplified visibility into the application environment
 Take the guesswork out of end user experience
management with smart drill downs
 Easy to understand dashboards track availability,
performance, and capacity
 Role-specific screens for both Operators and
Application Development teams
 Built on best practices, yet easily customizable
with a wide variety of widgets
 Runs on smart devices
14

15. Analytics to proactively mitigate risk, attain insights to optimize
operations, and reduce cost of ownership
Predictive Analytics enables
forecasting and trending to provide
foresight in resource demand, capacity &
Self-learning availability and clarify potential risks.
Notice problems
capabilities to sooner and
automatically more accurately
adapt to change Dynamic Threshold management to
adjust policies in-line with seasonal
variations.
Reduce false Leveraging analytics Automated Simple ad-hoc and scheduled Reporting
alerts to lower for problem threshold setting
management for quicker
to enable comparison of multiple metrics
avoidance &
costs capacity planning deployment and data-sources
Provide holistic and accurate diagnosis
by using guiding technology with
behavioral learning capabilities.
Performance Detect capacity
trending to plan issues prior to
for growth business impact Advanced correlation and pattern
recognition to identify and resolve
complex and undetectable events in real-
time.
15

16. Business Service Management
Collaborative management of services, applications and the IT infrastructure
based on business prioritization and impact
Business Service Business Business and IT Business
Visibility Health Alignment Impact
Service
Layer Integrated KPIs for services, Shared view, Service impact
service views, understand aligned planning, detection,
role-based financial impacts collaborative response
dashboards relationships prioritization for IT
Application
Layer
Application End User Transaction Deep Predictive
Discovery Experience Tracking Dive Analytics
Service Visibility Service Health Service Alignment Service Impact
• Role based dashboards  Understand the financial  Management of the  Real-time service impact
• Integrated service views impacts underlying applications and detection
• Fully End-to-End  Representative KPI’s to infrastructure of that service  Dynamic view definitions
reflect the health of a  Facilitate a collaborative between IT and business
service relationship around the
business service
16

17. Business Service Management brings clear consistent cross-
organizational data views & metrics
IT Operations Views Business Application Views
Data , events, metrics Dashboard only shows
on operations views key data LOB Owner
IT Ops Mgr Line up with Business (Kathryn) requires
(Doug)
Application Views LOB Owner
(Kathryn)
Common data
populated across
Persona
Dashboards
SD Analyst all levels in sync
Dashboard only shows App
key data App Owner Owner/SME
(Miki)
(Miki) requires
IT
(L1/L2)
Operato Common data
r populated across
Annette
Persona
Dashboards
All levels in sync
Dashboard only shows Network
key data Network Storage Storage Eng
SMEs
(Jim) Engineer requires
IBM Confidential

18. Intelligently control complexity & rapid change with SmartCloud
Control Desk
Service Mobile
IT Staff Users
Desk workers
 Automates control of service
incidents and changes; standardized
Adaptive User Interface
governance procedures help bridge
departmental silos
End-to-End Processes
 Controls risk & cost leveraging
Analytics and Reporting
automated impact analysts & reports Service Change,
IT Asset
Desk & Config,
 Collaborative, role-based usability, Catalog
Management
Release
with access from anywhere at anytime
(mobile)
Common Runtime & Services
 Available in a broad set of delivery
models including traditional on-
premise, VM image, and SaaS Federated Resource Data
 A unified, lower cost solution for Virtualized Cloud Services
IT assets Smart Assets
controlling the complexities of assets
multiple, concurrent ITIL processes

19. IBM SmartCloud Control Desk holistically controls complex
service management processes
 Incident Management: Restore normal service operation Business Outcomes
quickly
 Up to 40% more efficient cross functional processes
 Reduce Problems: Resolve the root causes of incidents to controlling service requests, configuration and
minimize impact and prevent recurrence maintenance planning
 Procurement: Creation, routing and management of
requests, purchase orders, contracts and terms and  Up to 60% increase in service request responsiveness
to problems and user issues
conditions
 Financial and Licenses: Usage accounting and chargeback,  Up to 70% reduction in change-related outages by
investment planning. Auditable, license T&Cs increasing efficiency and reducing mean time to repair
 IT Assets: Inventory, financial, and contractual functions to  Reduces TCO by using one unified solution to license,
support strategic decisions install and manage multiple ITIL processes under one
 Configuration: Management and traceability of every aspect price point
of a configuration
 Release: Verifies license, test and version status of services
or assets introduced into the infrastructure
 Change: Standardized procedures for efficient handling of all Client Success
changes
 Major energy utility uses SmartCloud Control
 Service Requests: Single point of entry for handling incidents Desk to manage assets, service requests and
and requests changes across the whole enterprise
 Better process linkages close 40% of tickets
within 2 hours and resolves 85% of issues
without escalation

20. Enterprises are seeing concrete ROI with service management
solutions
201% 30 - 40% 98%
Return on investment Reduction in outages Improved SLA levels
IBM’s Integrated Service “Outages have been reduced by “Before there was no
Management solution for 30% to 40% at a minimum. […] guaranteed turnaround time
application availability, service we can react much faster than from the help desk,” says
request fulfillment and before. […] many times a problem Shah. “Now with promised
management, and provisioning was found before it hit our clients. turnaround times being met
and discovery management helps With ITM, you can integrate with fewer resources, we’ve
an international vehicle different monitoring clients into a improved SLA [service level
manufacturer slash IT costs by central monitoring system. You agreement] levels by 98
nearly $25 million over five years can centralize your processes and percent.”
- Leading vehicle manufacturer management team. That’s good - Syed Asif Shah, CIO, CDC
savings on the human resources
side, you can do centralization.”
– Lajos Tancsik, head of IT
operations, CIB Bank
20

21. Integrated IBM solutions for end-to-end service management
Ensure performance across MAINFRAME CONTINUOUS Rapid deployment of new
your mainframe platforms MANAGEMENT SERVICE DELIVERY services
WORKLOAD Automated recovery and
optimized workload
Control virtual IMAGE SCHEDULING &
scheduling
image sprawl. MANAGEMENT VISIBILITY AUTOMATION
CONTROL
Automated CHANGE & Ensure compliance
deployment of PROVISIONING CONFIGURATION and control change
virtual machines MANAGEMENT
AUTOMATION
Manage network
Centrally manage NETWORK & SERVICE
CONTROL DESK expansion from cloud &
service issues, change, ASSURANCE mobile growth
and usage.
21

22. IBM service management solutions
The integrated management platform to support your IT transformation to cloud
Attaining the true economic, service delivery, and performance gains cloud & shared infrastructure can
provide, requires a broader, more disciplined approach to application and service management
Management Facets in the Cloud
AVAILABILITY COMPOSITION PERFORMANCE UTILIZATION CAPACITY
Smarter Planet
VISIBILITY CONTROL AUTOMATION
Predict & resolve application Effectively manage application Scale to peaks in demand while
problems before client impact changes, compliance & risk reducing administrative costs
22

23. IBM management solutions are the market and industry leader
5 of 5 Top global investment banks
Gartner Magic Quadrant Leadership:  Business Service Management
 APM  IT Service Management Support 8 of 10 Top insurance companies
 IT Event Correlation & Analysis Tools
Strong Positive in Gartner Market Scope:  Data Canter Automation
 Network Configuration & Change
Management 9 of 10 Top wholesale banks
7 of 10 Top automakers
EMA Radar Leadership:
#1 in Overall Service Assurance,  APM for Cloud Services: Best
Fault and Event Management,
Performance Monitoring
Cloud Vision & Design; Value
Leader Multi-Component APM
14 of 20 Top financial services
Solutions
 Business Service Mgmt: Service
Impact: Strong Value, Best
Business Impact
IDC Market Share: Industry leading solution
 #1 Overall System and Network
Management
 #1 Performance Management
 #1 Event Management
Extensive customer base
 #1 Network Management Software
23

24. 3 Next Steps
24

25. www.ibm.com