Thriving in a Hybrid World Dean J. Marsh Vice President, Client Success IBM Analytic Solutions

Today 3 technology forces are converging Data Cloud Engagement Smarter cities Smarter vehicles Smarter homes Smarter health Smarter factories Smarter transportation Cloud, Apps, and Services

We are on the threshold of massive explosion of connected things Over 10 billion devices around the world are currently connected to the Internet, including computers and smartphones The Internet of Things has the potential to create economic impact of $2.7 trillion to $6.2 trillion annually by 2025

Health Care Smart Manufacturing Automotive Smart Cities Building & Home Automation Wearables 3 What are these Devices?

Mobile customer targeting Card swipe in one store attracts coupons from nearby store— resulting in 109% incremental sales lift Just-in-time maintenance Fast Big Data analysis Global aircraft engine manufacturer increases service revenue by 12% Global stock exchange cuts response times of market surveillance algorithms by 99% 35% in one year using real-time monitoring and proactive fault detection while lowering IT resources by using a big data analysis platform. Cloud is redefining technology, business and entire industries.

Business Scalability Speed and Adaptability Improved Economics Client Customization Reduced Complexity Ecosystem Connectivity Cloud enables opportunity. Faster, easier, for less! Globally Integrated Enterprise Digital Front Office Improve company efficiency and effectiveness to enable new growth. Connect, transact, and engage with customers to create mutual value. Business Scalability Speed and Adaptability Improved Economics Client Customization Reduced Complexity Ecosystem Connectivity Reduction in operating costs 40% Shorten customer service call time by 70% In cost and performance benefits $700M Reduction of time for software error correction 99%

Take customer experience to new heights Understand shopping behavior in real-time Personalized interaction and targeted marketing Apply powerful analytics to better serve customers Empower store associates to deliver a more personalized customer service. Enable store managers to be more productive and effective. Enhance cross-team collaboration. Cloud Pacesetters are 136% more likely to use cloud to reinvent customer relationships

. CRM HR DB ERP Social Mobile To free funds to continuously fuel innovation, organizations must continuously optimize existing infrastructures to meet new demand. Enabling innovation through optimization Drives Investment Systems of Record Optimize IT infrastructure, data and processes Drives Need Systems of Engagement Knowledge Sharing Engagement Models Anywhere, Anytime OptimizeInnovate Hybrid Cloud is emerging as the new model for service delivery Focus on Operational Costs

Development & DevOps Big Data & Analytics SecurityMobile Business Process as a Service Automating Business Innovation Marketplace of High Value Consumable Business Applications Rapid App Development through Composable and Integrated Platform Built using open standards Enterprise Class, Optimized Infrastructure Built using open standards Integration Traditional Workloads Integration/ API Mgmt Compute Storage Networking Business Processes Procurement Payment Processing Help DeskAccountingRecruiting Commerce Supply Chain Analytics Talent Management Collaboration IT Management Marketing Software as a Service Platform as a Service Infrastructure as a Service Dynamic Hybrid Cloud: Evolving IT As a Service

Private Cloud & IT Benefits: Fully customizable Robust management Secure by design Best of both worlds. Better outcomes. Maximize return on existing IT investments Match workloads to best-fit infrastructure Hit the right balance of risk to speed Meet seasonal capacity without CapEx Add new capabilities quickly Benefits: Low entry cost Pay-per-use Highly elastic Dynamic Hybrid Public Cloud Hybrid Cloud + Hybrid Cloud Definition The connection of one or more clouds to on-premises systems and/or the connection of one or more clouds to other clouds Dynamic Hybrid is the future

As workloads move to a Hybrid model, challenges are created  Integration of information and business processes  Business processes span multiple environments  Portability of workloads  Hybrid cloud management  Maximizing flexibility for the future  Fast, secure access to only the data your app needs

The new hybrid cloud The new hybrid cloud is more than the sum of it's parts. It is open by design, providing the freedom to choose and change your environments, data and services with visibility, control and security everywhere.

© 2015 IBM Corporation Portability for Cloud Workloads PublicDedicatedOn-premises Containers are a critical foundation of Hybrid Cloud and portability. Building consistent APIs for Infrastructure and Services across cloud environments. Applications can be built so that they can move from the data center to the cloud (for example) based on business priority and demands

© 2015 IBM Corporation Management takes a new twist in Hybrid mode PublicDedicatedOn-premises

© 2015 IBM Corporation A DevOps approach that delivers rapid iteration, bursting and lifecycle management An enterprise security model that reaches into the cloud to secure applications end- to-end Systems Management capabilities that can monitor and manage in the cloud and in the data center Distribution and location of data based on need and regulatory compliance Ability to move workloads across different delivery models (Private cloud, public cloud) based on business need Synchronization of data and information across applications and business processes that extend into the cloud Integration Security Portability Data Delivery Visibility / Control These are the key IT architecture elements to consider when planning for Hybrid Cloud

© 2015 IBM Corporation Three things to consider when moving forward in Hybrid 1.Develop your strategy – multiple approaches to Hybrid 2.Evaluate your IT architecture for how it should evolve to address the challenges brought about by Hybrid environments 3.Consider evolving the role of IT to include one of “Cloud Service Broker” for the enterprise Create Consume

© 2015 IBM Corporation Takeaways  Cloud, Mobile, Social and Analytics are enabling business transformation at Internet scale and speed  The resulting Hybrid environment creates both challenges and opportunities for enterprise IT  Adapting to this new Hybrid world will be the key success factor for CIOs and their teams over the next few years

© 2015 IBM Corporation Thank You! Questions?