1. SE & IBM Strategic Alliance EMEA Michael Hoddy Alliance Director IBM Strategic Alliance EMEA Sofia, Bulgaria 28 th May, 2010

2. 2 1999 Groupe Schneider becomes Schneider Electric, focused on Power & Control 1975 Merlin Gerin joins Groupe Schneider 1988 Telemecanique joins Groupe Schneider 1991 Square D joins Groupe Schneider 1996 Modicon, historic leader in Automation, becomes a Schneider brand 2007 Acquisition of APC corp. Schneider Electric More than 170 years of history 1836 Creation of Schneider at Le Creusot, France 19th century20th century21st century 2000 Acquisition of MGE UPS Systems 2003 Acquisition of T.A.C 2005 Acquisition of Power Measurement Inc. 2003-2008 Targeted acquisitions in wiring devices and home automation (Lexel, Clipsal, Merten, Ova, GET, etc.) 2008 Acquisition of Xantrex, leader in renewable energy solutions Steel Industry Energy Management Power & Control

3. 3 IT Business Schneider Electric $24b revenue 32% in new economies 114,000 people Presence in 100+ countries Key Figures 2008… $3.6b revenue 32% in new economies 12,000 people Presence in 100+ countries

4. 4 Energy production & transmission Energy usage A unique positioning… Global specialist in Energy Management Covering World Energy consumption Making energy: Safe Reliable Efficient Productive Green

5. 5 Industrial automation & control IT Business (Critical power & cooling) Low & medium voltage power Installation systems & control (wiring devices + home automation) Building automation & security Energy & infrastructure Industry Data centers & networks Buildings Residential Solutions & services Energy efficiency Renewable energy solutions IT Business Electrical distribution Automation & control 14% 29% 57% We are part of the Schneider Electric portfolio A critical element of the most comprehensive and integrated energy portfolio in the industry

6. 6 North America 2.400 Our Global Footprint… Asia Pac & Japan 5,700 Over 12,000 people worldwide EMEA-LAM 3,050 Design Centers Manufacturing/Distribution Major Sales/Marketing Locations Greater China 1,970

7. 7 A history of leading innovation First 3-phase UPS by Merlin Gerin APC PowerChute® software revolutionizes power management 19931997 1998 APC revolutionizes cooling market 2002 1989 Industry's first modular UPS & Matrix-UPS® is introduced & MGE™ Galaxy™ line is launched scalable, redundant UPS introduced APC purchases Silcon A/S, & enters 3 Phase UPS market 1964 1981 Incorporated Symmetra® 2007 2003 2005 APC introduces its first (NCPI) architecture, PowerStruXure ™ Introduced, integrating power, cooling, racks, Management and service NetBotz acquired by APC Schneider Electric acquires APC and forms the Critical Power & Cooling Services (CPCS) BU including the APC and MGE UPS Systems brands Science Center created to advance thought leadership of data center design & operation 1999 From product leadership… … to Solution leadership

8. 8 Solutions of the past are not sufficient for the future The world’s energy system is at a crossroads. Current global trends in energy supply and consumption are patently unsustainable … But that can – and must – be altered; there’s still time to change the road we’re on … what is needed is nothing short of an energy revolution Source: World Energy Outlook “ “

9. 9 ●The Green Grid global consortium is dedicated to standards, measurement, processes, and technologies to improve data center performance ●The U.S. Environmental Protection Agency (EPA) is defining data center efficiency standards (Energy Star ratings) ●The European Commission’s Institute for Energy is defining a “Code of Conduct” for data center efficiency ●Enterprise companies are starting to make public carbon commitments Industry-wide movement is underway to shape policy and behavior is a founding member and on the board of directors of The Green Grid Data center governance Efficiency can’t be ignored anymore

10. Our 2010 Vision and Mission IT Business Unit Vision A world where we can all achieve more while using less of our common planet Mission To help you make most of your energy by providing innovative and efficient solutions and services to protect, power, cool, and manage your critical systems

11. So what’s changed since 2006 when Alliance started in EMEA ?

12. A Global Alliance for Advanced Data Center Solutions  Schneider Electric and IBM Global Technology Services have formed a strategic global alliance that couples Schneider Electric’s EcoStruxure TM architecture to take advantage of intelligent energy management that is compatible across multiple platforms and includes APC’s expertise in physical infrastructure, including power, cooling, management, racks and services of critical applications, with IBM’s consulting and systems integration professionals to deliver value added infrastructure solutions to benefit our mutual customers together  Through the alliance, customers can take advantage of the combined industry-leading expertise of APC’s solutions for physical infrastructure and IBM’s services offerings to easily and effectively deploy critical IT projects.  The global alliance is not exclusive on either organisation and is based on the growing model in the IT industry,which has seen a lot of ‘co-opetition’ between vendors, who are both competitors and partners

13. SMDC Alliance Project Office IBM relationship evolution Partnership Value 199519992001200320052007 IBM transformation to service provider Pilot joint solution Project Big Green, Global Launch OEM Partnership APC enters data center market IBM Netfinity integrated with APC Powerchute Alliance Kick-Off Meeting 1997 Success in Retail 2009 Green Sigma Coalition Member XIV HDZ $100M +/yr

14. 14 Green Data Centers by the Numbers Understanding the Motivations and Impacts The average data center is 10 years old 45% of data centers are more than 10 years old 65% of data centers have power & cooling issues 30% expect major DC facilities upgrade in next 3-5 years 70% operate data center at 65-75 degrees Fahrenheit 90% report energy efficient servers are important in selection Source = April 2009 Computing Infrastructure Trends: IDC

15. Data center planning and operation is under increasing pressures Energy and service cost control pressure Increasing availability expectations Regulatory requirements Server consolidation Server consolidation Rapid changes in IT technology High density blade server power/heat Dynamic power variation Uncertain long-term plans for capacity or density In response, we need to change the way the world designs, installs, operates, manages, and maintains data centers Time to value Time to value

16. IBM and Schneider Electric are in a unique position to build the complete solution offering for the customer that adds proven value and delivers benefit to meet required objectives Efficiency measure today Efficiency measure tomorrow Customer

17. Capital Expenditure "It's a very sobering feeling to be up in space and realize that one's safety factor was determined by the lowest bidder on a government contract." Alan Shepard (Astronaut 1923-1998)

18. The Newest Challenge: EFFICIENCY Provide power and cooling in the amount needed, when needed, and where needed – but no more than what is required for redundancy and safety margins But we can’t manage what we can’t measure Efficiency target:

19. Inefficiencies Create Consumption  Computing inefficiencies > More servers  Server inefficiencies > More power and cooling  Power and cooling inefficiencies > More power consumption Inefficiencies drive both power consumption and material consumption

20. How do we jointly add value to solving the efficiency problem ?  Optimize Efficiencies  Minimize Risk  Reduce Costs  Accelerate Change

21. Incorporates APC InfraStruXure® and Management with IBM Global Services The IBM Scalable Modular Data Center offering is a solution which helps customers rapidly deploy a pre-defined data center (server room) to support their business. This data center offering enables clients to create a data center in a minimal amount of time using a [pre-engineered solution] from APC. The service can be installed in nearly any working environment and provides ready power, cooling, and racks for the data center environment. 50M 2 & 250M 2 Standardized Base Configuration Solutions One way to get there… The IBM Scalable Modular Data Center OVER 200 SMDCs SOLD WW with over 50% in EMEA – 40 in 2009,26 in 2008, 17 in 2007, 9 in 2006

22. 22 IBM’s Data Center Family TM Comprehensive Set of Custom and Standard Capabilities Portable modular data center High density zone  Turnkey data center for 500-2,500 sq ft  Rapid deployment in 8-12 weeks  20% less cost than traditional data centers  15-30% improved energy efficiency  Standardized design in 5K up to 20K sq feet  Designed for high availability  Leadership energy efficiency – 66% DCiE  25% faster deployment than custom approach  Open architecture involving leading vendors  Fully functional data center; multi-vendor support  Portable - temporary and emote data centers  Rapidly deploy in 12-14 weeks  Designed for high availability  Leadership energy efficiency: 77% DCiE  “Plug and play” infrastructure to support high density servers in existing data centers  Non-disruptive implementation  35% lower cost than retrofitting existing data center Enterprise modular data center Scalable modular data center

23. Looking for a quick, easy, efficient, high density staggered build-out - Drop-in a “POD” InRow ™ cooling units Building out in increments or “chunks” “Step and Repeat” standardization Easy physical segmentation into a zone or cage Easy electrical and billing segmentation Reduction of up front costs Targeted or variable densities – “High Density Zone” Use of standardized and integrated components Single source supplier

24. Our EMEA customers who believe in the Alliance & SMDC include…

26. благодаря за отделеното време и интерес днес.