© 2012 IBM Corporation IBM PureSystems A new family of expert integrated systems -

© 2012 IBM Corporation 2 On a Smarter Planet, technology innovation redefines industries Trading Traffic Control Fraud Prevention Law Enforcement

© 2012 IBM Corporation 3 As IT moves to the strategic center of business The model must shift to Smarter Computing Traditional Computing Business innovation Technology Innovation Smarter Computing Smarter with: Built-in expertise Ability to sense and anticipate Systems of engagement

© 2012 IBM Corporation 4 You experience the barriers of time, cost and risk today Aligning IT and business goals Getting Up and Running 2-3 months to specify and procure 2-3 months to integrate, configure and deploy Development Operations 3-6 months to go from development to production Ongoing Effort 1-3 months to troubleshoot and tune Ongoing effort and downtime to maintain, scale and upgrade IT Reality Business Goals Typical Results: 34% of new IT projects (US) deploy late 55% experience application downtime for major infrastructure upgrades once deployed Driving business innovation Make new markets Respond to competitive threats Enhance the customer experience Grow top and bottom line by: From a commissioned study conducted by Forrester Consulting on behalf of IBM

© 2012 IBM Corporation 5 Only 1 in 5 can allocate more than half their IT budget to innovation Least efficient data centers Use of new technology: 43% first and fast technology adoption 1% move virtual machines to meet desired outcomes 21% use storage virtualization 3% use a storage service catalog (tiered storage) Results: 65% New projects Maintaining existing infrastructure 35% Most efficient data centers Use of new technology: 86% first and fast technology adoption 58% move virtual machines to meet desired outcomes 93% use storage virtualization 87% use a storage service catalog (tiered storage) Results 47% 53% New projects Maintaining existing infrastructure Source: 2012 IBM Data Center Study: ( )

© 2012 IBM Corporation 6 Clients have tried various approaches to close the gap Client-tuned Systems Appliances Cloud Flexibility Control Simplicity Rapid Deployment Agility Elasticity Time and Expense Required Single Purpose Shared Dependence What if you could have the best of all three? Benefits Challenges

© 2012 IBM Corporation 7 The time has come for a new breed of systems Systems with integrated expertise and built for cloud Integration by Design Deeply integrating and tuning hardware and software – in a ready-to- go workload optimized system Built-in Expertise Capturing and automating what experts do – from the infrastructure patterns to the application patterns Simplified Experience Making every part of the IT lifecycle easier - with integrated management of the entire system and a broad open ecosystem of optimized solutions

© 2012 IBM Corporation 8 The world’s first family of expert integrated systems ANNOUNCING:

© 2012 IBM Corporation 9 Infrastructure System: Expert at sensing and anticipating resource needs to optimize your infrastructure Platform System: Expert at optimally deploying and running applications for rapid time-to-value Announcing the first two members of the IBM PureSystems family

© 2012 IBM Corporation 10 IBM PureSystems integration by design Servers Storage Networking Virtualization Management Development Middleware Deployment Applications Optimizes the complete solution stack: All hardware and software components factory integrated and optimized Single point of unified lifecycle management Integrated monitoring & maintenance Integrated and elastic application and data runtimes Application patterns allocate system resources for optimal performance, security and reliability Fully virtualized and built for cloud Storage tuned to data needs

© 2012 IBM Corporation 11 Patterns of Expertise: Proven best practices and expertise for complex tasks learned from decades of client and partner engagements that are captured, lab tested and optimized and then built into the system IBM PureSystems “patterns of expertise” Patterns deliver superior results: Agility: Faster time-to-value Efficiency: Reduced costs and resources Simplicity: Simpler skills requirements Control: Lower risk and errors Through unmatched expertise in: System design Infrastructure management Application deployment Data management Datacenter management Application management High availability and scalability Security Storage optimization Networking Cloud

© 2012 IBM Corporation 12 IBM PureSystems “patterns of expertise” Example: Web Application Deployment Pattern Captures: IBM’s decades of experience in helping clients design, build and deploy new business applications What is it? Codified best practices for presetting configuration options by type of selected Web application (e.g., high availability, high security, etc.) What do you do? Bring your data and application code, select the type of application you want and everything else is handled for you in the background What do you NOT have to do? Understand the interdependencies and connections between your database, application server, management, security, and the rest of the middleware Manually engage in the real-time management of your infrastructure Result: Speed deployment of Web applications by 20-30x! Clients have experienced 20-30x faster application deployments with IBM's patterns of expertise which are included in IBM Troy AS

© 2012 IBM Corporation 13 IBM PureSystems extensible with “patterns of expertise” Including built-in cloud capabilities Platform Patterns Expertise across the middleware and infrastructure Infrastructure Patterns Expertise across the compute resources IBM PureFlex System IBM PureApplication System Provisioning Storage optimization Scalability Upgradability Built-in with flexibility Available through PureSystems Centre Cloud platform management Application Patterns and Images Available patterns images from IBM and Partners Web application deployment Database deployment 100+ ISV business applications Business intelligence Business process management Web experience More to come in 2012… Images available for client tuning

© 2012 IBM Corporation 14 IBM PureSystems simplified experience Single product streamlines ordering, tracking, receiving, installing and running Factory installed, fully packaged solutions drive simple setup (pull it out of the box, plug it in and boot it up) Management integration across system Single point of contact for support Upgrade with zero downtime based on integrated patches and system design PureSystems Centre – an online catalog of applications and patterns. A broad open ecosystem of optimized solutions New client experience:

© 2012 IBM Corporation 15 What does it mean for you? Agility Get up and running in hours, cutting months off deployment time of new application projects. Efficiency Deploy twice as many applications per square foot of data center space Accelerate industry capabilities with solutions from a broad open ecosystem Manage all physical and virtual resources from a single user interface Control Lower risk and costs with automated Maximize flexibility with choice of architectures, and open standards Intelligently manage cloud environments Simplicity Avoid delays due to limited IT skills or complex integration with factory integration and built-in expertise Free up time from procuring, supporting, testing & deploying assets Reduce lifecycle maintenance and minimize downtime. Elastically adapt to workload spikes without overbuying Maintain more quickly and easily with integrated system patches provisioning and seamless scalability with security and resiliency

© 2012 IBM Corporation 16 Consolidate More efficiently consolidate systems and applications to reduce operating expenses Optimize Better tune and automate systems and applications to improve application performance, scalability and reliability Accelerate Cloud Launch self-service applications efficiently in a secure, and integrated cloud environment Innovate More rapidly deliver new applications and services to meet new business needs Consolidate Accelerate Cloud InnovateOptimize IBM PureSystems enable multiple client initiatives Using a consistent, standardized approach

© 2012 IBM Corporation 17 InitiativeUse Case EXAMPLETroy Value Consolidate infrastructure to a single infrastructure system PureFlex System can deploy more than twice as many virtualized applications per square foot of data center Support reallocation of compute, storage and network resources on demand Improved agility to handle demand spikes across workloads and drive greater utilization Deploy new web application PureApplication System with web application deployment pattern of expertise can yield up to X faster deployment with reduced risk Deliver IT services Deeply integrated Cloud deployment and application infrastructure and server virtualization can reduce time to provision from 45 days to minutes Consolidate Accelerate Cloud Innovate Optimize Examples of IBM PureSystems use cases

© 2012 IBM Corporation 18 IBM PureFlex System IBM PureApplication System Business Process as a Service Software as a Service Platform as a Service Infrastructure as a Service Design DeployConsume 20-30X faster deployment with application patterns expertise Accelerate adoption of private clouds with built-in virtualization and superior automation Built for cloud

© 2012 IBM Corporation 19 Extensibility from the broadest ecosystem is made easy * Unix/Linux and Windows applications New IBM PureSystems Centre:  Gain access to a broad community of IBM and certified partner expertise  Download optimized, deployable application patterns from 100+ leading ISV partners  Search by solution area, industry or system Also run your existing applications today* The SAP logo is a trademark or registered trademark of SAP AG in Germany and several other countries and is reproduced with the permission of SAP AG.

© 2012 IBM Corporation years as top U.S. patent recipient Since the beginning of 2000, we’ve spent nearly $70 billion in research and development 250k technical experts worldwide Market leading systems and software Global financing with flexible payment options Commitment to open standards Broad open ecosystem of 120k partners 100 years of experience delivering essential IT

© 2012 IBM Corporation 21 © 2012 IBM Corporation Take the next step…. Prove the value and begin your journey with IBM PureSystems:  Visit to learn morewww.ibm.com/puresystems  Join the conversation about this new category of computing:  PureSystems  Hashtag: #IBMPureSystems or #expertintsys  YouTube Channel: expertintegratedsys  Blog: expertintegratedsystemsblog.com © International Business Machines Corporation 2012 International Business Machines Corporation New Orchard Road Armonk, NY IBM, the IBM logo, PureSystems, PureFlex, PureApplication and ibm.com are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. A current list of IBM trademarks is available on the Web at All rights reserved. © 2012 IBM Corporation

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© 2012 IBM Corporation 23 BACKUP

© 2012 IBM Corporation 24 Smarter Planet opens a new era for Information Technology Process-Centric era Information-Centric era  Business processes automation  Focused on bottom-line improvement through SG&A reduction  Typically long business cycle  Terabytes of largely structured data  Real-time pattern based action  Focused on top-line growth through revenue acquisition  Reactive for shorter product cycles  Zettabytes of largely unstructured data

© 2012 IBM Corporation 25 IT Needs Deliver new capabilities faster Shift resources from maintenance to transformation Control growing complexity What are today’s pressures and realities Business Demands Address opportunities more quickly Drive business innovation Leverage technology more strategically Consumerization Mobility Social business Iterative solutions

© 2012 IBM Corporation 26 Clients struggle to overcome barriers of time, cost and risk PhaseTime (days)Budget Specify/design % - 16% Procure % - 21% Implement74 – 9312% Configure/test74 – 8010% - 11% Cluster & HA66 – 10411% - 12% Backup44 – 10810% Tune89 – 989% - 10% Management67 – 1109 – 10% Typical IT Project Time and BudgetTop Causes of Project Delays Hardware Troubleshooting and tuning production environment Integration, configuration and testing of the infrastructure Installation, cabling and network access for the environment Software Integration, configuration and testing of applications Integration, configuration and testing of middleware Configuration, build and deployment of applications 45% 29% 41% 35% 34% 34% of new IT projects (US) deploy late From a commissioned study conducted by Forrester Consulting on behalf of IBM

© 2012 IBM Corporation 27 Specify/Design Takes 2-3 months for an IT infrastructure system Procure Software & hardware ordered separately taking 1-3 months Integrate Components arrive as “bag of parts” requiring months of integration, configuration & optimization Deploy Can take weeks to months Customize/Tune Meeting SLAs requires customization and ongoing tuning Scale Lack of dynamic elasticity results in cumbersome re-allocation of resources Manage Managing and monitoring with multiple tools is time consuming Maintain Separate fixes require separate testing Upgrade Months to plan, procure and test with the potential for hours or days of downtime Building custom systems is difficult Up & Running Ongoing Effort Development Operations Provision Up to a month or more for a development or test environment Configure Configuration and customization of pre-packaged components is error prone and can take months *Durations take from a commissioned study conducted by Forrester Consulting on behalf of IBM

© 2012 IBM Corporation 28 Expert integrated systems: Combine the flexibility of a general purpose system, the elasticity of cloud and the simplicity of an appliance tuned to the workload Fundamentally changing the experience and economics of IT The time has come for a new breed of systems Systems with integrated expertise and built for cloud 1 of 2 that would replace single chart in base flow

© 2012 IBM Corporation 29 Expert integrated systems have unique attributes Integration by Design Deeply integrating and tuning hardware and software – in a ready-to- go workload optimized system Built-in Expertise Capturing and automating what experts do – from the infrastructure to the application Simplified Experience Making every part of the IT lifecycle easier Integrated management of the entire system A broad open ecosystem of optimized solutions 2 of 2 that would replace single chart in base flow