2 sandy carter vp, soa & websphere marketing, strategy, and channels building a smarter planet...
TRANSCRIPT
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Sandy CarterVP, SOA & WebSphere Marketing, Strategy, and Channels
Building a Smarter Planet in a Complex World
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The world is Smaller.
Because it can.
Because it must.
Because we want it to.The world is getting Smarter.
The world isFlatter.
“Every human being, company, organization, city, nation, natural system, and man-made system is becoming
interconnected, instrumented, and intelligent. This is leading to new savings and efficiency—but perhaps as important,
new possibilities for progress.
Something Meaningful is Happening…
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Insightful Smart Efficient
For us to make sense of this new world, we mustconsider how we become . . .
Responsive
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IBM Software…
Providing a next-generation open integration platform
Building a smarter planet in a complex world
built on a Service Oriented Architecture (SOA)
customized for your industry
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6% Share
Microsoft $21.7B
IBM $2.3BEMC $1.2B
Operating Systems
$40B 3% CGR
Middleware
$109B5% CGR
IBM $15.5
Oracle / BEA$11.3B
Microsoft $8.4B
EMC $4.1B
17%Share
Enterprise Applications
$101B4% CGR
SAP $9.0B
Oracle $5.7B
IBM (PLM) $1.1B 1% Share
Today we are #1 in middleware…2007 Software Revenue
Microsoft $1.2B
Source: (1) Only top share leaders listed; IBM share includes software revenue from IGS transactions (2) IBM GMV2H08, IBM CSV 7/08; Middleware excludes operational security; CGR is ’07– ‘12
Sun $0.6B
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Gold Coast
Sydney
Canberra
Singapore
Perth
Yamato
India
Bangalore
Pune
Hyderabad
Gurgaon
China
Beijing, Shanghai
Taiwan
Cairo
Dublin
Haifa
Canada
Rome
Paris
StainesHursley
Boeblinge
nKrakowUnited States
California
Massachusett
s
Minnesota
New York
North Carolina
Texas
Leveraging IBM’s Globally Integrated Team
Major R&D Locations
350,000 + IBM Employees Worldwide
30,000 + Developers
100,000 + Sales, Support & Marketing
50,000+ SW Employees
Worldwide
26,000+ Developers
17,000+ Sales & Technical Sales
5,000+ Support Staff
plus … over 30,000 SW Partners
Brazil
Malaysia
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A network of partners Building a rich and diverse ecosystem that integrates employees, clients, partners and suppliers is central to
driving share gains in high growth areas and is a key source of a competitive advantage for IBM.
At the heart of this ecosystem is our relationship with approximately 100,000 Business Partners, including consultants, integrators, software vendors, value-added resellers and distributors.
• 40,000 ISVs Worldwide
• 50,000 Reseller Partners
• 29,000 System Integrators
• 950+ Local IBM GlobalTechnology Specialists
• 13,000 Service Providers
• 190 Mid-market Alliances
• 218 Enterprise Alliances
• 500+ IBM Business Solution Profesionals
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How we target the high-value opportunities
Invest in high-growth markets Leverage IBM’s global reach
Geographic presence Deep technical skills Industry expertise Extensive client relationships
Strengthen our hand through acquisitions Capitalize on IBM’s unique ability to deliver SOA,
Information on Demand, Web 2.0 Social Software for Business, Managed Services and Application Development solutions.
Building our software on the highest performing servers in the market, with System z at the forefront
Tap new types of clients, such as the medium business arena
Incubate new emerging, high-growth businesses
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Information On Demand to unlock the business value of information for competitive advantage and establish Information agenda for smarter business outcomes
Next Generation Collaborationto unlock the value in the passion and expertise
of people to drive efficiency, deepen relationships, embrace change, and foster
innovation.
Service Managementto enable innovation by reducing
operational labor, improving asset productivity and quality
of service
Software Lifecycle Managementto better govern the business process of software and systems delivery, enabling innovation at lower cost
Business Process Flexibilityto develop and rapidly deploy innovative business models with flexible, optimized
processes
An open IT architectural foundation built on SOA
Providing a Next-Generation Open IntegrationPlatform
… delivering proven value to solve real business problems
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#1Software Configuration Mgmt
#1Rational
#2Security Management
#2Tivoli
#2Collaboration
#2Lotus
#1Information Integration (incl MDM)
#1Enterprise Content Management
#2Information Management
#1Portal Server
#1Integration Server
#1WebSphere
IBM Share
PositionKey Product Segments
Sources: IBM Finance, IBM Market Analysis, Company Reports, IDC Software Tracker
Leveraging Our Portfolio to Deliver Solutionsfor a Smarter Planet
TivoliTivoli
WebSphereWebSphere
RationalRational
Information ManagementInformation
Management
Lotus
TivoliTivoli
WebSphereWebSphere
RationalRational
Information ManagementInformation
Management
Lotus
Information Platform
Data Management
Content Management
Security Mgmt
Systems Mgmt
Storage Mgmt
Transaction Processing
ApplicationServers
Business Integration
e-mail, MessagingChange and Release Mgmt
Process and Portfolio Mgmt
Business Intelligence & Performance Management
Portal
Social Software Architecture Mgmt
InformationOn Demand
( IOD )
Service Oriented Architecture
( SOA )
Next Generation
Collaboration
Service Management
IT Lifecycle Management & Governance
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IBM has recognized the changes in the market place and are addressing it through its Smarter Planet initiative focusing on 4 themes namely “New Intelligence”, “Smart Work”, “Dynamic Infrastructure” and “Green & Beyond”
SmartWorkSmartWork
Green & Beyond Green & Beyond
New Intelligence
New Intelligence
How can we work smarter supported
by flexible and dynamic
processes modeled for the new way people buy, live & work?
How can we take advantage of the
wealth of information
available in real time from a multitude of
sources to make more intelligent
choices?
“Data is exploding and it’s in silos”
“New business & process demands ”
“Our resources are limited”
I Need InsightI Need Insight I Need to Work Smart
I Need to Work Smart
I Need Efficiency
I Need Efficiency
Dynamic Infrastructure
Dynamic Infrastructure
How do we create an infrastructure that drives down cost, is intelligent and secure, and is just as dynamic as today’s business
climate ?
“My infrastructure is inflexible and costly”
I need to respond quickly
I need to respond quickly
How do we drive greater efficiencies,
compete more effectively, and
respond more quickly by taking action now
on energy, the environment, and
sustainability?
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Business in the emerging markets in the last 5 years was very strong for most companies. But times have changed. Emerging stock markets have fallen more quickly and more steeply than anytime in history; the price of commodities on which many emerging markets depend have fallen more quickly and more steeply that any time in history. Credit is tightening in many markets and it is becoming little consolation that consumers may have some residual buying power if distributors cannot finance purchases - Economist
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The economic slow down in global economies have impacted the software market opportunity growth in all regions but with the growth markets showing more resilience. Globally information management continues to provide the biggest opportunity
-5.00
0.00
5.00
10.00
15.00
20.00
2006 2007 2008 2009 2010
North America IOT North East Europe IOT South West Europe IOT
Japan Asia Pacific IOT Latin America IOT
CEEMEA IOT Global
Software Market Opportunity Growth Global by Region
15%
39%8%
24%
9% 5%
Transactions & Applications
Information Management
Collaboration ManagementSystems Infrastructure Management
Application Development & Life Cycle Management
Product Life Cycle Managrement
Software Global Market Opportunity by brand 2009
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2008 the Economist
Sub – Saharan Africa Market
SA Top Sheet
EGYPTLIBYAALGERIA
MOROCCO
NIGERMAURITANIA
WESTERNSAHARA
MALI
CHADSUDAN
ZAIRE
ANGOLA
NAMIBIA
SOUTHAFRICA
BOTSWANA
ETHIOPIA
SOMALIA
NIGERIAGUINEA
ERITREA
CENTRALAFRICAN REPUBLIC
MADAGASCAR
TANZANIA
GABON
BURKINA
GHANA
COTED'IVOIRE
ZAMBIA
ZIMBABWE
CAMEROON
TOGO
BENIN
UGANDA
KENYA
MOZAMBIQUE
LESOTHO
SWAZILAND
CONGO
SENEGAL
THE GAMBIA
GUINEA- BISSAU
SIERRA- LEONE
LIBERIA
EQUATORIAL GUINEA
ANGOLA
RWANDA
BURUNDI
MALAWI
DJIBOUTI
SoaTome
Cape Verde
EGYPTLIBYAALGERIA
MOROCCO
NIGERMAURITANIA
WESTERNSAHARA
MALI
CHADSUDAN
DRC
ANGOLA
NAMIBIA
SOUTHAFRICA
BOTSWANA
ETHIOPIA
SOMALIA
NIGERIAGUINEA
TUNISIA
ERITREA
CENTRALAFRICAN REPUBLIC
MADAGASCAR
TANZANIA
GABON
BURKINA
GHANA
COTED'IVOIRE
ZAMBIA
ZIMBABWE
CAMEROON
TOGO
BENIN
UGANDA
KENYA
MOZAMBIQUE
LESOTHO
SWAZILAND
CONGO
SENEGAL
THE GAMBIA
GUINEA- BISSAU
SIERRA- LEONE
LIBERIA
GUINEA
ANGOLA
RWANDA
BURUNDI
MALAWI
DJIBOUTI
SoaTome
Verde
SACA
MENA
Mauritius
• Sub-Saharan Africa has 782m people now, and will grow to 1.2bn by 2025…and 1.7bn by 2050.
• But the region is poor and fragmented into 48 markets;• South Africa makes up a third of the region’s GDP .• Along with Nigeria, they make up half of total GDP.• The remaining 46 countries have an official economy
the size of Austria or Iran.• 27 countries have less than 10m people.• 47% of the population live on <$1 a day, but this
should fall to 30% by 2015, less than China today.• Key markets: SA, Nigeria, Angola, Ghana, Kenya
Sub Sahara Africa
No of Countries 48
Population Size 782M
GDP Growth (2007 – 2011) 5.0%
IT Market Growth 3.8%
Countries with multi-party elections
40/48
EGYPTLIBYAALGERIA
MOROCCO
NIGERMAURITANIA
WESTERNSAHARA
MALI
CHADSUDAN
ZAIRE
ANGOLA
NAMIBIA
SOUTHAFRICA
BOTSWANA
ETHIOPIANIGERIAGUINEA
ERITREA
CENTRALAFRICAN REPUBLIC
MADAGASCAR
TANZANIA
GABON
BURKINA
GHANA
COTED'IVOIRE
ZAMBIA
ZIMBABWE
CAMEROON
TOGO
BENIN
UGANDA
KENYA
MOZAMBIQUE
LESOTHO
SWAZILAND
CONGO
SENEGAL
THE GAMBIA
GUINEA- BISSAU
SIERRA- LEONE
LIBERIA
EQUATORIAL GUINEA
ANGOLA
RWANDA
BURUNDI
MALAWI
Tome
Cape Verde
EGYPTLIBYAALGERIA
MOROCCO
NIGERMAURITANIA
WESTERNSAHARA
MALI
CHADSUDAN
DRC
ANGOLA
NAMIBIA
SOUTHAFRICA
BOTSWANA
ETHIOPIA
SOMALIA
NIGERIAGUINEA
TUNISIA
ERITREA
CENTRALAFRICAN REPUBLIC
MADAGASCAR
TANZANIA
GABON
BURKINA
GHANA
COTED'IVOIRE
ZAMBIA
ZIMBABWE
CAMEROON
TOGO
BENIN
UGANDA
KENYA
MOZAMBIQUE
LESOTHO
SWAZILAND
CONGO
SENEGAL
THE GAMBIA
GUINEA- BISSAU
SIERRA- LEONE
LIBERIA
GUINEA
ANGOLA
RWANDA
BURUNDI
MALAWI
SaoTome Mauritius
DJIBOUTI
Southern Africa
Seychelles Mayotte
East Africa
ETHIOPIA
ERITREA
TANZANIA
UGANDA
KENYA
RWANDA
BURUNDI
ETHIOPIA
SOMALIA
ERITREA
TANZANIA
UGANDA
KENYA
RWANDA
BURUNDI
DJIBOUTI
East Africa
ETHIOPIA
ERITREA
TANZANIA
UGANDA
KENYA
RWANDA
BURUNDI
ETHIOPIA
SOMALIA
ERITREA
TANZANIA
UGANDA
KENYA
RWANDA
BURUNDI
DJIBOUTI
Central Africa
ZAIRE
ANGOLA
NAMIBIA BOTSWANA
MADAGASCAR
ZAMBIA
ZIMBABWEMOZAMBIQUE
ANGOLA
MALAWI
DRC
ANGOLA
NAMIBIA BOTSWANA
MADAGASCAR
ZAMBIA
ZIMBABWEMOZAMBIQUE
ANGOLA
MALAWI
Mauritius
Seychelles Mayotte
TomeSaoTome
Cape Verde
West Africa
SOUTHAFRICA
LESOTHO
SWAZILAND
SOUTHAFRICA
LESOTHO
SWAZILAND
NIGERMAURITANIA MALI
CHAD
NIGERIAGUINEA
CENTRALAFRICAN REPUBLIC
GABON
BURKINA
GHANA
COTED'IVOIRE
CAMEROON
TOGO
BENIN
CONGO
SENEGAL
THE GAMBIA
GUINEA- BISSAU
SIERRA- LEONE
LIBERIA
EQUATORIAL GUINEA
NIGERMAURITANIA MALI
CHAD
NIGERIAGUINEA
CENTRALAFRICAN REPUBLIC
GABON
BURKINA
GHANA
COTED'IVOIRE
CAMEROON
TOGO
BENIN
CONGO
SENEGAL
THE GAMBIA
GUINEA- BISSAU
SIERRA- LEONE
LIBERIA
GUINEA
SA GMR is split into 4 Regions, within these regions a number of Tier 1 countries which act as a “beach head” for these regions
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Although significant dip in GDP forecasts for the region, an average GDP growth of 3.1% expected
Source: IBM GMV Jan 09 Economic Forecast and Economist
-2
0
2
4
6
8
10
SA GMR South Africa Nigeria Kenya Rest of SA GMR
Recession Zone
08/07 GDP Growth
09/08 GDP Growth
GD
P G
row
th (
%)
The restoration of confidence should start emerging by 2010, however, some positive impact on business might have to wait the end of 2010 or early 2011 Source: The Economist Intelligence Unit
SubSA GMR - Real GDP, Atlas-Based - Growth by Quarter
0%
2%
4%
6%
8%
10%
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
4Q08 QMV 1Q09 QMV
SA GMR
Rea
l GD
P G
row
th p
er Q
uar
ter
We are here
Economic Impact Market Impact
2008 SubSA AGR =7.2%
SA GMR: Countries - Brand: Total End-User (GMV Compare) - Industry: Total
South Africa
Rest of SA GMR
0%
2%
4%
6%
8%
10%
-1,0 0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0Market Size ($B)
Ma
rke
t G
row
th (
%) 6%
7%
South AfricaRest of SA GMR
2009 SubSA AGR =3.8%
3.2%
3.9%
9.1%
7.0%
2008
2009
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SA GMR Economic Forecast – Indications of significant downturn but not all doom and gloom
Topic Summary Outlook
Growth Economic growth set to slow, notably in Southern and West Africa
Inflation Set to ease after the oil and food price declines
Currency Rand led the charge, now the regional currencies are under pressure
Politics Kenya and Ghana election uncertainties are behind us. Only South Africa, Namibia and Botswana to hold elections this year
Country Summary Outlook
Botswana Stagnation as diamond exports suffer
Ghana Inflation, currency and budget problems but the economy keeps moving
Kenya Political improvement, an economy that's holding up, but a worsening current account
Mauritius Exports and tourism suffering
Namibia Miners hit, but interest rates set to ease
Nigeria Adjusting to a halving in oil prices
South Africa Cyclical downturn, rate cuts and ongoing fears over the rand
Tanzania Will donor aid keep flowing in?
Uganda Hurt by commodities, and will weather hold up?
Macro Economic Snapshot
Source: RMB Research; Jan 09
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Economic conditions translates to a significant slow down in the IT market but still an average growth rate of 3.8% expected for 09/08. Growth rate for hardware to remain flat but software and services shows positive growth between 2% and 7%.
* South Africa = Plan Rate; Rest of SA GNR Constant Rate
Sector Overview - Region: Sub-Saharan Africa IMT -Brand: Total End-User (GMV Compare)
FSS
COM
IND
GB (<1000)
CSI
PUBDIS
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
-0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5FY09 Market Size ($B)
FY
09 M
arke
t G
row
th (%
)
SA GMR AGR =3,8%
Brand
Sector/Industry
Source: IBM GMV 4Q08, industrialization
SubbrandOverview - Region: Sub-Saharan Africa IMT - Industry: Total
Servers
Storage
Appl. Outs.
SO
ITSMiddleware
Applications
Consulting
BPO
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-0.5 0.0 0.5 1.0 1.5 2.0 2.5-1%
-2%
-3%
SA GMR AGR =3.8% *
SubbrandOverview - Region: Sub-Saharan Africa IMT - Industry: Total
Servers
Storage
Appl. Outs.
SO
ITSMiddleware
Applications
Consulting
BPO
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-0.5 0.0 0.5 1.0 1.5 2.0 2.5
FY09 Market Size ($B)
FY
09 M
arke
t G
row
th (%
)
-1%
-2%
-3%
SA GMR AGR =3.8% *
Outsourcing
Hardware
SubbrandOverview - Region: Sub-Saharan Africa IMT - Industry: Total
Servers
Storage
Appl. Outs.
SO
ITSMiddleware
Applications
Consulting
BPO
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-0.5 0.0 0.5 1.0 1.5 2.0 2.5-1%
-2%
-3%
SA GMR AGR =3.8% *
SubbrandOverview - Region: Sub-Saharan Africa IMT - Industry: Total
Servers
Storage
Appl. Outs.
SO
ITSMiddleware
Applications
Consulting
BPO
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
-0.5 0.0 0.5 1.0 1.5 2.0 2.5
FY09 Market Size ($B)
FY
09 M
arke
t G
row
th (%
)
-1%
-2%
-3%
SA GMR AGR =3.8% *
Outsourcing
Hardware
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In IBM’s Central Europe, Middle East and Africa Region, South Africa provides the 3rd largest software market opportunity
Source: GMV Jan07
Market Opportunity (USD$M)
CEEMEA IOT: Countries - Brand: Software Group (incl. PLM) - Industry: Total
Russia
Egypt
Poland
Czech Republic South Africa
Other CIS
Turkey
Hungary
Baltic States
SlovakiaUkraineOther ME
North Africa
CroatiaSlovenia
Bulgaria
Central Africa
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
-0.2 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4
2009 Market Size ($B)
Mar
ket
CA
GR
09/
07 (
%)
Bubble size = 2007-2009 incremental market size ($M) Market Opportunity (USD$M)
CEEMEA IOT: Countries - Brand: Software Group (incl. PLM) - Industry: Total
Russia
Egypt
Poland
Czech Republic South Africa
Other CIS
Turkey
Hungary
Baltic States
SlovakiaUkraineOther ME
North Africa
CroatiaSlovenia
Bulgaria
Central Africa
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
-0.2 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4
2009 Market Size ($B)
Mar
ket
CA
GR
09/
07 (
%)
Bubble size = 2007-2009 incremental market size ($M)
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Market 2009 - SWG - Region: South Africa - Industry: Total
AIM14%
IM42%Lotus
7%
Tivoli21%
Rational8%
PLM8%
South Africa Software Market Forecast 2009, indicates biggest opportunity related to IM, with estimated market opportunity of $336m, 42% of total software market opportunity, total market growth decelerated from 10.4% in 2008 to 5.1% in 2009
Mark
et
Op
port
un
ity S
plit
Source: QMV Jan 09
CSI2%
FSS24%
COMMS17%
DISTR9%
INDUSTR18%
PUBLIC30% South Africa Sectors Split
by Total Software Contribution (Large
Enterprises): 2009 indicates biggest market
opportunities in Public Sector and Financial
Services
CSI5%
FSS21%
COMMS9%
DISTR37%
INDUSTR23%
PUBLIC5%
South Africa Sectors Split by Total Software Contribution
(SMB): 2009 indicates biggest market opportunities in
Distribution and Industrial Sectors
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According to Gartner, there are four emerging disruptive trends in the Software Industry. These trends are reshaping software as we know it and will likely cause major disruptions to vendors, especially in how vendors go about distributing their software
• Rise in New Technologies and Convergence of Existing Technologies
• Change in Software User and Support Demographics
• Revolutionary Changes in Software and How it is Consumed.
• Software Market Moves to Mega vendors Supporting Large Ecosystems.
Source: Gartner, Oct 2008
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Current changes in economic environment affect all global markets…
Dis
rup
tive
Unprecedented constraints on access to credit and capital
Falling demand, increased price sensitivity
Disruption in supply chains
Tra
nsf
orm
ativ
e
Restructuring of industries
New regulatory regimes
Stress on global inter-dependencies
Urgency for real change is a plus: people want it
Month-to-month cost management is not
enough
Firms must examine on-going business and
IT efficiency
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Bring down on-going costs in nine months or less
1. Gain real-time insight into all your cost structures
2. Squeeze cost out of your assets
3. Reduce your infrastructure costs• Cut 30-50% of your data storage management costs
• Get 50% more of your existing storage capacity
• Spend less on keeping your IT apps in sync
• Spend less on keeping your Web sites secure
• Cut up to 50% of your travel and phone expenses
4. Reduce the cost of doing business• Eliminate the costs of handling and storing paper docs
• Reduce operational costs by automating forms handling
• Cut your product management costs
• Reduce your time to revenue
- Cognos FPM
- Tivoli EAM
- IBM Optim
- SVC
- WS ESB / Datapower
- AppScan
- Sametime
- FileNet
- eForms
- Focal Point
- Biz Events
Payback time is typically 1 – 9 months based on exact project scope.Cost reduction numbers are indicative and may vary.
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• IBM Africa Innovation Centre, an enablement facility for crucial ICT skills with capabilities for Software Solutions development, Cloud Computing, Banking Centre of Excellence, and will critically advance the creation of new quality jobs.
• Integrated Delivery Centre facility which has created 1500 direct and thousands more indirect jobs since its launch in 2006.
• A $15 million Business Continuity and Recovery Services facility. • Skills development initiatives that have produced more than 250 specialist IT professionals
from mainly previously unemployed Black graduates over the last three years • The Makocha Minds mentorship programme benefiting African university students by
matching them up with 250 IBM's Distinguished Engineers and senior leaders worldwide. • Finance grid and small business toolkit - both aimed at provide tools and online
infrastructural support to boost small businesses. • The $1.5 million Blue Gene supercomputer donation to the Centre for High Performance
Computing, to benefit academic and social research projects including in Bio Informatics, Climate Change, and Mineral Beneficiation.
• IBM will implement Africa Innovation Centre's concepts at the University of Nairobi, setting up a laboratory there by early 2009, and possibly in one or two other African countries, such as Nigeria, later in the year.
IBM's commitment to the Sub Saharan Africa region's economic growth and development is best demonstrated by its $300 million investment over the last five years. This investment has gone into strengthening existing and establishing new IT services delivery capabilities as well as into building a sustainable skills base for the benefit of IBM's clients such as MTN, the industry and economy at large.
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