The emergence of social, mobile, cloud, big data and analytics are fundamentally changing how we live, work and interact. Mobile devices are ubiquitous. Changing consumer behaviors, supplanting PCs, generating massive amounts of data and putting new demands on the enterprise to not only support these devices but to adjust the way they do business. Social technologies are changing the way we interact, communicate and share information – equally generating vast amounts of data and impacting business as they try to unlock the full potential social has to offer. Cloud technologies bring new scale and efficiency to service delivery and enable more agile ways of doing business and drive business model innovation. For companies, It also brings information and applications to people at the right time and place. All of these trends are fueling an explosion of data. Not only do enterprises need to store, manage and secure this data, they also need to derive meaningful insight from these vast amounts of data. Data is the basis of significant opportunity and a source of competitive advantage for all organizations. Data is a new economic asset, the next natural resource. These trends are spawning new workloads, business processes and technology deployments that are putting unprecedented demands on our IT environments.

1. Infrastructure Matters
because business outcome matters
Gabi Bauer
Head of Marketing Systems & Technology Group DACH

2. © 2014 IBM Corporation2
Today‘s leaders recognize the importance of technology
IBM CEO Studies
Technology factors
Market factors
Macro-economic factors
People skills
Regulatory concerns
Socio-economic factors
2006 2008 2010 2012 2013
1
2
3
6
4
5
1
2
3
6
4
5
1
2
3
6
4
5
1
2
3
6
4
5
2
3
6
4
5
1
Source: IBM Institute for Business Value, Global C-Suite Study, 2013
IBM CEO Studies

3. © 2014 IBM Corporation3
Mobile, social, cloud, big data and analytics
are changing how we live, work and interact
40% of people
socialize more online
than they do face-to-face
300x growth
of digital content between
2005-2020
57% of
companies
using cloud to drive
competitive and cost
advantages
80% of all data
is unstructured and growing 15x the
rate of structured data
63% of people
expect to be doing more shopping on their
mobile devices over the next couple of years
Infrastructure Matters

4. © 2014 IBM Corporation4
Source: *STG CAMS2H13 021914
**IDC Predictions 2014
Who is buying
is evolving.
Spending by
groups outside of
IT will outpace that
of IT in 2014**
How we engage
needs to evolve.
What clients are
buying is evolving.
$0,00
$20,00
$40,00
$60,00
$80,00
$100,00
$120,00
2014
2015
2016
Market Growth*
23%
CAMS
-22% Base IT
Products Solutions
Direct Sales
Simple brand
Co-Selling
Multi brand
$(B)
The rapidly evolving market drives the Transformation of STG

5. © 2014 IBM Corporation5
Composable Services
Dynamic Services, defined by Software
Cognitive Systems
Unstructured Data in Motion
Unpredictable Workloads
A Variety of Devices
Open Innovation
Infrastructure As-a-Service
Monolithic Applications
Static Infrastructure
Programmed Systems
Structured Data At Rest
Stable Well-Defined Workloads
Standard Devices
Proprietary Standards
Corporate-owned IT
From… To…
These new trends are changing workloads, driving the need for more agile and
efficient IT environments
Market Changes in IT environment

6. © 2014 IBM Corporation6
Infrastructure Matters
-- Brian Hopkins et al., Forrester Research, “Forrester’s Top 15 Emerging
Technologies To Watch: Now To 2018”, February 2013.
Infrastructure matters because business outcomes matter and new outcomes
entail new infrastructure demands
“A wide range of innovations is happening
at the infrastructure layer, as continued
hardware improvements drive new
capabilities for compute, storage, and
networking and combine with new
innovations in software. These will
recombine in numerous ways to create
much more capable infrastructure and
application platforms.”

7. © 2014 IBM Corporation7
Security
Infrastructure Matters when
Mobile &
Social
Big Data &
Analytics
Ensuring secure transactions
and interactions
Cloud
Improving the
economics of IT
through efficiency
and delivering new
products and
services faster
Handling large
volumes of data
and driving real-
time insights
Revolutionizing
information
sharing and
collaboration
across the
enterprise
Infrastructure Matters as part of IBM Strategy
Industry leaders and Governments rely on infrastructure from IBM to drive real-
time insights, share information and ensure secure transactions all while
improving the economics of IT.

8. © 2014 IBM Corporation8
8
Cloud
Improving the economics
of IT through efficiency and
delivering new products
and services faster
Organizations and managed service providers rely on IBM
infrastructure to build private & hybrid clouds to optimize their social,
mobile, and big data workloads. We’ve helped over 10,000 clients
deploy trusted cloud solutions based on open standards.
Responsiveness MattersEfficiency Matters Resiliency Matters
Infrastructure Solutions for Cloud

9. © 2014 IBM Corporation9
Building on the experience of thousands of client engagements, IBM offers
unique infrastructure capabilities to rapidly create value
9
9
Enterprise Private and Hybrid
§ Consolidate all workloads
- Power Solution Editions for AIX, i, Linux
- Linux on System z
§ Automate Cloud and Enable Hybrid with
SDE
- SmartCloud Entry with OpenStack
- Platform Computing and GPFS
- Platform Computing Cloud Services
§ Optimize Storage for Cloud Delivery
- XIV for Cloud
- Grid Scale File Storage Systems
§ Speed Deployment and Simplify
Management
- PureFlex and PureApplication System
Cloud Service Providers
§ Differentiate Services with Power or z and
Linux
- Power Solution Edition for SPs
- Cloud Management Suite for System z
§ Deliver Big Data / Analytics Services
- Platform Computing and GPFS
- Platform Computing Cloud Services
§ Deliver highly scalable Storage Services
- XIV for Cloud
- Grid Scale File Storage Systems
§ Enable Low Cost / High Scale Clouds
- OpenPower
- NeXtScale
§ Speed Deployment of Cloud Services
- PureFlex MSP Editions
Infrastructure Solutions for Cloud

10. © 2014 IBM Corporation10
Building on the experience of thousands of client engagements, IBM offers
unique infrastructure capabilities to rapidly create value
10
Optimized capabilities designed for big
data and analytics workloads
§ DB2 BLU on Power – 7-10X lower TCO
§ Reference Architectures for Hadoop and
Streams – faster TTV
§ IBM GPFSTM – worlds only proven
enterprise-grade scale out file system
§ Platform Symphony – record setting
benchmark for Hadoop workloads
Innovation in scale-out computing –x86
§ x3650 M4 HD performance, flexibility,
reliability & customer satisfaction that’s
better than competitive offerings
Consolidate all workloads
Storage Innovation for big data & analytics
§ Real-time compression – 5X more data no
performance hit
§ IBM MicroLatency™ - 100x performance
improvement
§ FlashSystem storage can drive down costs
by 50%
Analytics closer to the data – System z
§ Much of the worlds transactional data sits
on z – integrate advanced analytics with
IDAA;
§ Enterprise Linux Server, SPSS/Cognos on
z; enhanced Hadoop integration.
Infrastructure Solutions for Big Data & Analytics

11. © 2014 IBM Corporation11
11
Mobile Connecting the
mobile enterprise
IBM Mobile solutions help you attract new customers, transform your
business and IT infrastructure, develop mobile apps to boost
enterprise efficiency, and improve customer service and interactions.
Put your business in motion. Become a mobile enterprise.
Speed MattersAvailability Matters Security Matters
Infrastructure Solutions for Mobile

12. © 2014 IBM Corporation12
Building on the experience of thousands of client engagements, IBM offers
unique infrastructure capabilities to rapidly create value
12
§ Seamlessly integrate infrastructure with
mobile applications
- IBM Power Systems, IBM PowerVM, IBM
PowerHA
- IBM System z
§ Keep pace with rapid demand cycles with
scale-in, -out, and -up
- IBM System z
- IBM GPFS
§ Provide security-rich mobile access to
critical business information
- IBM System z
- IBM Power Systems, IBM PowerVM, IBM
PowerHA
- IBM System Storage DS8000
§ Provide a highly secure environment to
analyze and store mobile data
- IBM FlashSystem storage
- IBM System Storage Easy Tier
- IBM Real-time Compression software
- IBM Storwize V7000 Unified disk system
- IBM GPFS
§ Accelerate flow of data to intelligence
- IBM System Networking
- IBM Platform Computing software
§ Process data faster while handling more
users
- IBM System z
- IBM Power System
- IBM PureSystem
Infrastructure Solutions for Mobile

13. © 2014 IBM Corporation13
Delivering innovation to put data to work with Big Data, Analytics, Cloud and Mobile Solutions
Mobile
Revolutionize the way IT is
created and consumed
Insights from Data
Leverage systems that optimize
big data & analytics performance
Cloud Innovations
Realize the true potential of
public, private & hybrid cloud
ü Hybrid Cloud: SmartCloud Entry for
Power Systems
ü Private Cloud: Update: Solution
Edition for Cloud
ü Public Cloud: Solution Edition for
Scale out Cloud
ü Public Cloud: Update: Power Systems
Solutions for Service Providers
ü Big Data: Power Solution for Hadoopü Analytics: Power Analytics for SPSS
ü Analytics: Power Analytics for BLU
Acceleration
ü Analytics: Power Analytics for
Cognos
ü Mobile: Mobile Scale Out Sales Offering with
Worklight & WebSphere Application Server
New
New
New
Collaboration and
Deployment Services
Analytical
Decision
Management
Modeler
Collaboration and
Deployment Services
Analytical
Decision
Management
Modeler
Powered by
New
New
New
New
Planned 2Q
Announcement / GA*
POWER Systems Solutions Optimized for POWER 8

14. © 2014 IBM Corporation14
VIRTUALIZEDVIEWOFCOMPUTE,NETWORKANDSTORAGERESOURCES
Application
There is a broad businesses need to overcome Infrastructure limitations in the
market. IBM Platform Computing solutions can maximize the value of compute
and data-intensive applications.
Application
Examples
• Simulation
• Analysis
• Design
• Big data
IT constrained
• Long wait times
• Low utilization
• IT Sprawl
Platform Computing
Application B
(Custom, MPI)
Application A
(Packaged ISV)
Application C
(Big Data)
Today Future
Benefits
• High utilization
• Throughput
• Performance
• Prioritization
• Reduced cost
Repeated
for many
applications
and groups
• Clusters
• Grid
• HPC Cloud
VIRTUALIZEDVIEWOFCOMPUTE,NETWORKANDSTORAGERESOURCES
Faster time
to results
Use fewer
resources
Platform Performance – Business Benefit

15. © 2014 IBM Corporation15
• Aviva
• BNP
• Citigroup
• Fortis
• HSBC
• JPMC
• LBBW
• International
Monetary Fund
• Mass Mutual
• Morgan Stanley
• MUFG
• Nomura
• Prudential
• Société
Générale
• Unicredit
• Airbus
• BAE Systems
• Boeing
• Bombardier
• Bridgestone
• Ericsson
• Honda
• General Electric
• General Motors
• Goodrich
• Lockheed Martin
• Northrop Grumman
• Pratt & Whitney
• RedBull Racing
• Toyota
• TaylorMade
• Volkswagen
• Abbott Labs
• Amgen
• AppliedBio/LifeTech
• AstraZeneca
• Covance
• Covidien
• DuPont
• Forest Labs
• GenomeQuest
• Genentech
• GlaxoSmithKline
• Health Dialog
• Monsanto
• Partners Health
• Pfizer
• Pioneer Hi-Bred
• Sanofi-Aventis
• Atomic Energy
Canada
• Broad Institute
• CERN
• DE Shaw
• Harvard Medical
• Harvard Business
• NC State
• NEON
• Sanger Institute
• St Jude Children
• Stanford
• Tufts University
• U of Miami
• U. of Oklahoma
• UNC
• Washington U.
Financial
Services
Industrial
Mfg.
Electronics
• Agip
• BP
• British Gas
• ConocoPhillips
• EMGS
• Gaz de France
• Hess
• Kuwait Oil
• Nexen
• Petrobras
• PetroChina
• StatoilHydro
• Suncor
• Total
• Woodside
Other clients from
further industries
• AMD
• ARM
• Broadcom
• Cisco
• Cypress
• Freescale
• Infineon
• Hitachi
• Nvidia
• PMC Sierra
• Qualcomm
• Samsung
• SanDisk
• Sony
• ST Micro
• TI
• Toshiba
Walmart Bell Canada
IRI
AT&T
Telecom Italia Telefonica
Life
Sciences
Gov & EduOil & Gas
Platform is already the primary choice of leaders in many different industries
Platform Computing - References

16. © 2014 IBM Corporation16
“[L]et me be clear—we are
not exiting hardware,” she
wrote. “IBM will remain a
leader in high-
performance and high-end
systems, storage and
cognitive computing, and
we will continue to invest
in R&D for advanced
semiconductor
technology.”
Our IBM HW Commitment
Ginni‘s Statement on Hardware in Wall Street Journal Mar 10th, 2014
and IBM 2013 Annual Report:

17. © 2014 IBM Corporation17
It’s no secret that IBM wants to move its technology into
the kind of data centers that Google and other Web
giants operate. Now comes evidence that Google is
putting some serious work into that possibility.
The Internet search company on Monday said it has
designed a motherboard for server systems that uses
IBM’s new Power8 chip, which has typically only been
found in hardware designed by IBM itself. Google and
other cloud-style companies now almost universally rely
on x86 chips, the kind long associated with Intel.
Google said it developed the board to help adapt its software to run on Power8-based machines.
“In order to do that we had to build a piece of hardware,” said Gordon MacKean, a senior director in Google’s hardware
group at an IBM event in Las Vegas.
MacKean also chairs the OpenPower Foundation, a multi-company group that IBM helped form in an effort to build a
broader audience for its chip technology. The latest disclosures follow on the heels of others made by the group and IBM at
an event in San Francisco Wednesday.
He did not say whether or how Google might actually deploy Power8 technology to handle Web searches or other computing
chores. But the hardware and software efforts certainly suggest that the technology trend-setter is at least seriously
considering shifting some of its work away from Intel’s technology.
Mark Miller, an Intel spokesman, said last week that it questions IBM’s claims that Power8 has performance advantages
over Intel chips. “That said, we don’t take competition lightly and are not standing still,” he said.
NewGoogle Shows Off Hardware Design Using IBM Chips
Google has developed a motherboard for server systems using IBM’s new Power8 chip
Google POWER8 Commitment

18. © 2014 IBM Corporation18

19. © 2014 IBM Corporation19
Power Systems Solutions – April 28
+ Built for volume to provide growth into new
workloads – Cloud, Analytics, Mobile, Social
+ Open, extensible architecture in support of
open standards ecosystem
+ Incredible workload performance –speed,
performance, storage, energy savings
Call to action
+ Watch the Special Preview of IBM's Power 8 Technology video and the Power 8 Value Prop video
+ Drive clients to Power Announcement Webcast and STG Announcements at EDGE
+ Complete mandatory education on STG strategy & upcoming announcements and certify by May 9
Storage Launch – May 19
+ Dramatically improves storage with data
virtualization
+ Enables Cloud scale deployments with high
performance self-tuning architecture (XIV for
Managed Service Providers)
+ Flash performance accelerates business insights
(Flash System 840)
+ Enhances flexibility with Software Defined Storage
HW Announcements in Q2

20. © 2014 IBM Corporation20
Watson has opened up a world of new
possibilities
size
speed
corpus
flexibility
#users
size
speed
corpus
flexibility
#users
2880
cores
Single
user
system
2-­‐3
sentences
input
5+
days
to
retrain
Wikipedia,
general
corpus
Single
Power
750,
240%
faster
1000s
of
users
20
pages
of
input
<
Day
to
ingest
and
train
Medical
corpus
Watson
cloud
service
Millions
of
users
Dialog
chaining
Few
hours
Broad
industry
corpus
s
sp
corp
flexibi
#users
IBM Watson - A new Area of Computing

21. © 2014 IBM Corporation21
A data-rich, societally important field
helping Watson change how
medicine is:
Ø Taught
Cleveland Clinic
Ø Researched
MD Anderson
Ø Practiced
Memorial Sloan-Kettering
Ø Paid
WellPoint
IBM Watson - A new Area of Computing
Watson in Healthcare

22. © 2014 IBM Corporation22
This will be Watson
Sees
Hears
Experiences
Understands natural language
Generates and evaluates
hypotheses
Adapts and learns
Reasons
Explores
Visualizes
IBM Watson - A new Area of Computing