© 2009 IBM Corporation Business Resilience Hope for the best, but prepare for the worst Robin Gaddum, Senior Managing Consultant 20 January 2010, IT DR and Availability Summit, London

© 2009 IBM Corporation2 Smarter Planet: the need for progress is clear. 85% idle In distributed computing environments, up to 85% of computing capacity sits idle. Consumer product and retail industries lose about $40 billion annually, or 3.5 percent of their sales, due to supply chain inefficiencies. 33% of consumers notified of a security breach will terminate their relationship with the company they perceive as responsible. 33% 40 billion Explosion of information driving 54% growth in storage shipments every year. 1.5x 70¢ per $1 70% on average is spent on maintaining current IT infrastructures versus adding new capabilities.

© 2009 IBM Corporation35/15/2015 Dynamic Infrastructure underpins the journey… Service Management Asset Management Virtualisation & Consolidation Information Infrastructure Energy Efficiency Security Business Resilience …these interrelated initiatives can provide the dynamic DNA needed for a smarter planet

© 2009 IBM Corporation4 Agenda The risks of ignoring risk Business resiliency as the solution Business resiliency and the Dynamic Infrastructure How IBM can help

© 2009 IBM Corporation5 New Forms of Collaboration Access to streams of information in the Real Time Billions of mobile devices accessing the World Wide Web Globalization and Globally Available Resources The world we live in today is comprised of new possibilities… and new risks for which you need to plan.

© 2009 IBM Corporation6 A key concern is the ability to manage the relationships between multiple instances of risk. Collaboration Trust Isolated Operations 1 1 Select ‘Trusted Partners’ 2 2 Extended Value Chain 3 3 Industry- Centric Value Web 4 4 Cross-Industry Value Coalition 5 5

© 2009 IBM Corporation7 “What is driving the need to improve your disaster recovery capabilities?” 47 percent 56 percent 63 percent 44 percent 41 percent 34 percent 49 percent 56 percent 47 percent 38 percent 51 percent 58 percent 45 percent 48 percent 47 percent Regulatory or legal drivers Requirement to stay online and competitive around-the-clock Cost of downtime Fiduciary responsibility to stakeholders, employees, partners, customers Increased risk (from natural and/or man-made disasters) Overall North America* Europe** For many organizations, the cost of downtime drives the need for IT disaster recovery preparedness.

© 2009 IBM Corporation8 Business needs, processes and connections determine the amount of downtime an organization can tolerate. Recovery time objective MinutesHoursDay or more Continuous Availability Priority = uptime, business justification Remote clusters, data mirroring Secondary and tertiary Sites Rapid Data Recovery Priorities = Uptime and cost/value Data replication Backup/Restore Priority = cost Tape backup Recovery using toolkits and basic services Where are you now? Determine business or regulatory need for improvement

© 2009 IBM Corporation9 How business resiliency has changed: Complexity –Complex web of interrelationships, beyond the “4 walls of any enterprise” –More applications requiring higher levels of resiliency Global economy –Continuous operations driven by global economy Regulatory pressures Security Robust, dynamic risk management can be a significant competitive business advantage. The danger is: Inability to know of risks in advance (especially real-time risks) OR You identify risks, but don’t have business capability in place to do anything about them

© 2009 IBM Corporation10 Agenda The risks of ignoring risk Business resiliency as the solution Business resiliency and the Dynamic Infrastructure How IBM can help Next steps

© 2009 IBM Corporation11 IBM Business resilience is the ability to… … rapidly adapt and respond to risks, as well as opportunities, in order to maintain continuous business operations, be a more trusted partner, and enable growth. Business resilience from IBM gives you an unequalled level of agility.

© 2009 IBM Corporation12 Agenda The risks of ignoring risk Business resiliency as the solution Business resiliency and the Dynamic Infrastructure How IBM can help

© 2009 IBM Corporation13GTS GLB Meeting | Foundational Initiatives | Facilitator Guide Looking at the big picture, IBM helps clients analyze resilience across six layers of the business to help identify areas of vulnerability and opportunity Risk mitigation strategies Business drivenData drivenEvent driven Business resilience Strategy and vision Organization Processes Applications and Data Technology Facilities

© 2009 IBM Corporation14 Dynamic Infrastructure provides the foundation for robust business resiliency. Attributes of a resilient infrastructure 1.Standardization 2.Service management 3.Geographic diversity 4.Security Virtualization — by providing fewer components to recover, ensembles of like components and the ability to provision and load balance — provides the change agent required to allow the implementation of Dynamic Infrastructure

© 2009 IBM Corporation15 Agenda The risks of ignoring risk Business resiliency as the solution Business resiliency and the Dynamic Infrastructure How IBM can help

© 2009 IBM Corporation16 Do you know the real cost of downtime to your business? Can you identify your most critical assets (specifically business processes and key resource dependencies)? Are your critical assets secure and available? Can you identify the business resilience investments that will provide you with the best return? Do you know which business processes, applications and data are most critical to running your business? Many organizations turn to a trusted partner to help uncover and evaluate their business resiliency needs.

© 2009 IBM Corporation17 Proven IBM processes and tactical and strategic tools can help reduce cost, mitigate risk and improve service. Risk analyses of applications, systems, business units Documentation of requirements and measurement against existing implementations Gap assessment via a comprehensive framework of solutions Agility enhancement through proven implementation processes Regular review and updates to strategy as requirements change Integration of business needs and goals with risk mitigation strategy Strategic examination and integration of sourcing options Ongoing relationship with IBM client representatives and specialists to enable short- and long-term infrastructure enhancement

© 2009 IBM Corporation18 Costs resulting from business disruption Cost of risk and loss mitigation Higher Lower Optimum balance of risk and resilience Reduce risk  Approach continuous business operations, even in the event of an outage  Mitigate financial impact of business disruptions Optimize resources  Reduce capital investment  Improve manageability of operating expense  Improve staff productivity Level of resilience Higher Managed continuity from IBM can help you optimize the balance of risk, resilience and cost.

© 2009 IBM Corporation19 Driving Transformation in an Economic Downturn Make your IT investments work for you in this economic downturn…by saving money to increase investments in new solutions and innovation… and enhancing (not compromising!) Business Resilience IT Spending Operations Support Operations Maintenance New Solutions Application Enhancements Strategic Change Capacity Cost of Operations Operations Maintenance Operations Support New Solutions and Innovation Application Enhancements Liberated funding for direct saving or transformational investment 100%

© 2009 IBM Corporation20 IBM Resiliency provides comprehensive risk management solutions. Proven design and implementation framework — based on thousands of proven engagements — designed to align IT and business Servers, storage and hardware designed for business continuity, security and high availability Thousands of highly skilled consulting and implementation professionals around the globe Broad range of solutions designed to address tactical or end-to-end strategic challenges Comprehensive portfolio that includes solutions for backup and recovery, data protection, remote data replication, fully integrated site switching Industry-leading solutions for and expertise in RAS, clustering and data mirroring solutions Consulting services to help protect your business, your people and your infrastructure

© 2009 IBM Corporation21 IBM managed continuity is built on proven technical capabilities, decades of experience and professional services delivery teams. Real strengths Real-world experience Real peopleReal results  Business process and technology expertise  Unparalleled global services delivery infrastructure  Recognized market leader  More than 40 years of global business continuity and disaster recovery experience  More than 12,000 business continuity and resiliency clients around the world  More than 1,600 professionals dedicated to business resilience, backed by nearly 400,000 IBM employees worldwide  More than 150 global business resiliency centers in 55 countries  Met 100 percent of our contractual commitment to clients who declared a disaster with IBM  Reduced total cost of ownership by up to 20 percent

© 2009 IBM Corporation Thank you For more information, come and talk to us E: M: W: IT DR Summit, London, January 2010