Download - IBM REM Marketing _Samir Singh_IIM Indore
IBM REM Report
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Table of Contents
Marketing is about decision making ..................................................................................................... 2
Why IBM Sold is server business? ................................................................................................... 2
IBM .................................................................................................................................................. 3
Customers .......................................................................................................................................... 5
Cloud Market ..................................................................................................................................... 6
Competitors ....................................................................................................................................... 6
Customer Segmentation ....................................................................................................................... 7
How IBM is targeting the Customers: ................................................................................................ 7
Positioning ........................................................................................................................................ 8
IBM is getting its cloud positioning right - at last! ....................................................................... 8
IBM B2B Presence in Cloud .............................................................................................................. 9
IBM B2C Presence in Cloud .............................................................................................................. 10
IBM Products ................................................................................................................................... 10
IBM Sales Promotion ........................................................................................................................ 11
IBM Pricing ...................................................................................................................................... 11
IBM Brand Equity ............................................................................................................................. 14
IBM – Brand ................................................................................................................................. 15
Market Leader .................................................................................................................................. 16
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Marketing is about decision making
IBM’s low-end server business has been shrinking for a while in 2013. IBM sold the server
business to Lenovo for $2.3 bn.
The deal covered IBM’s System x, BladeCenter and Flex System blade servers and switches,
x86-based Flex integrated systems, NeXtScale and iDataPlex servers and associated software,
blade networking and maintenance operations.
WHY IBM SOLD IS SERVER BUSINESS?
� http://www.gartner.com/newsroom/id/2632515
� Shrinking Sales in low end server business.
� Big Blue's new business priorities in its 2015 road map are cloud computing, Smarter
Planet, business analytics, and growth markets.
� Moreover, between 2010 and 2013, the company spent roughly $12 billion in
acquisitions, buying mainly software companies in the cloud space.
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� International Business Machines has made cloud computing one of the cornerstones of
its ongoing transformation. The company has acquired many companies over the past few
years in an effort to build out its cloud-computing business, including cloud infrastructure
company SoftLayer in 2013 and a slew of cloud-software companies. IBM competes in
the infrastructure-as-service market, the platform-as-a-service market, and the software-
as-a-service market, and its vast services business helps clients move to and manage
cloud infrastructure.
IBM
� During the 1980s and early 1990s, IBM was thrown into turmoil by back-to-back
revolutions. The PC revolution placed computers directly in the hands of millions of
people. And then, the client/server revolution sought to link all of those PCs (the
"clients") with larger computers that labored in the background (the "servers" that served
data and applications to client machines).
� Both revolutions transformed the way customers viewed, used and bought technology.
And both fundamentally rocked IBM. Businesses' purchasing decisions were put in the
hands of individuals and departments - not the places where IBM had long-standing
customer relationships. Piece-part technologies took precedence over integrated
solutions. The focus was on the desktop and personal productivity, not on business
applications across the enterprise. By 1993, the company's annual net losses reached a
record $8 billion. Cost management and streamlining became a chief concern. And IBM
considered splitting its divisions into separate independent businesses.
Source https://www-03.ibm.com/ibm/history/history/decade_1990.html
� Louis V. Gerstner, Jr. arrived as IBM's chairman and CEO on April 1, 1993. For the
first time in the company's history IBM had found a leader from outside its ranks.
� Gerstner brought with him a customer-oriented sensibility and the strategic-thinking
expertise that he had honed through years as a management consultant at McKinsey &Co.
Soon after he arrived, he had to take dramatic action to stabilize the company. These
steps included rebuilding IBM's product line, continuing to shrink the workforce and
making significant cost reductions. Despite mounting pressure to split IBM into separate,
independent companies, Gerstner decided to keep the company together. He recognized
that one of IBM's enduring strengths was its ability to provide integrated solutions for
customers - someone to represent more than piece parts or components. Splitting the
company would have destroyed a unique IBM advantage.
� With the rise of the Internet and network computing the company experienced another
dramatic shift in the industry. But this time IBM was better prepared. All the hard work
IBM had done to catch up in the client/server field served the company well in the
network computing era. Once again, customers were focused on integrated business
solutions - a key IBM strength that combined the company's expertise in solutions,
services, products and technologies.
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� That year, IBM acquired Lotus Development Corp., and the next year acquired Tivoli
Systems Inc. Services became the fastest growing segment of the company, with growth
at more than 20 percent per year.
� IBM Journey
� IBM Server History:
http://blog.iweb.com/en/2012/01/history-of-servers-in-pictures-from-1981-to-
today/1959.html
� Server Lineage
1981 – The
IBM VM
Machine, first
list server
1991 –
NeXTCube,
first web
server
1994 ProLiant
,first Rack
Mountable
Servers
1998 – Sun
Ultra II, first
server
2001 – RLX
B2001 RLX
Blade, first modern
blade servers
2008 – PS3 Cluster,
distributed
computing with
GPUs
2009/2012
– The
Cloud and
beyond
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Customers
• Customer Expectations for Cloud
• Benefits expected by Customers using Cloud
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Cloud Market
Cloud Services market is expected to grow rapidly in the next 5 years.
Competitors
IBM is currently ranked no. 3 in the cloud business.
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Frontrunners are gaining competitive advantage through hybrid cloud and are managing their
environment in an integrated, comprehensive fashion for high visibility and control (e.g., through
a single dashboard).
Challengers are on the journey toward competitive advantage, but haven’t fully achieved unified
management of their hybrid cloud environment.
Chasers are not yet using hybrid cloud to drive competitive advantage and are in the early stages
of gaining integrated control over their hybrid environment.
IBM Cloud is designed for the enterprise and is well suited for the emerging hybrid cloud era – an
era that is already upon us, with Gartner predicting that nearly half of large enterprises will have
hybrid cloud deployments by the end of 2017. By seamlessly marrying a company’s systems of
record with new and emerging systems of engagement, IBM is able to help clients mine data as
the new natural resource while protecting privacy and security; quickly integrate existing and new
services and data to drive new innovations; and easily control, manage and secure where data and
apps reside. With SoftLayer as the foundation for IBM’s expansive cloud portfolio, IBM is
continuing to collaborate with clients around the world and across industries to deliver new
services, enter new markets and create new opportunities for growth.
Positioning
IBM IS GETTING ITS CLOUD POSITIONING RIGHT - AT LAST!
In a recent cloud briefing with Linda Bernardi, IBM Chief Innovation Officer, Cloud & Internet of Things, a newly aligned overall cloud architecture and integrated services offerings emerged. The core building blocks now include:
• the fluid integration of legacy and cloud resources through open stack and IBM Hybrid Cloud technology;
• an enterprises-focused platform and open ecosystem for cloud data and services; • data analytics offerings, including machine learning; • an end-to-end architecture.
Obviously, large enterprises in particular will not base their complete IT infrastructure on public cloud offerings. However, they might deploy SaaS offerings from different vendors besides having their internal IT. Thus, there is strong need for an integration of IT service offerings coming from different sources. Here, IBM's experience and hybrid approach to cloud computing can excel. This also addresses customer requirements for a two-speed IT: stable systems in the backend and agile customer-facing systems.
Secondly, with Bluemix IBM has built a strong platform for developers to develop new SaaS apps and applications and deploy them in a cost-effective way on IBM's infrastructure. However, IBM's approach to build an ecosystem goes beyond the pure developer ecosystem. IBM is also engaging in cross-customer integration of business processes, digital transformation and disruptive offerings.
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While IBM remains a solution provider for the enterprise, it wants to encourage its enterprise customers to create and manage business services that can finally address consumers. IBM wants to become the enabler for the orchestration of such ecosystems. This includes the integration of cloud platforms & services, cloud applications as well as on-premise IT from different vendors plus IBM's own assets.
With a focus on data analytics, IBM made it clear that it sticks to its core strength: storing, managing and analyzing large amounts of data. Part of this is the emergence of Watson analytics, advanced machine learning and the SyNAPSE project, where it may even develop more advanced analytics technologies. It is very likely that IBM will leave its competitors behind with its engagement in brain-like artificial and semiconductor-instrumented synapse-based computing.
Finally, part of IBM's strength is that enterprises need a redefined architecture to address the requirements for systems-of-record data differently than the requirements for systems-of-engagement data. On the one hand, IBM can put its Soft Layer offering for well-managed and cost-effective basic computing resources on the table; and on the other hand, IBM brings in an integrated mix of partner SaaS offerings (based on Blue mix) as well as highly sophisticated data analytics offerings in a hybrid cloud world. Bottom line: Clearly, cloud computing has a disruptive potential for IT technology and IT departments. It took some time to adjust the broad IBM technology and services spectrum to this new IT world. However, focusing on IBM's core strength, this aligned cloud strategy will enable enterprises to benefit from the total customer focus.
https://www.pac-online.com/ibm-getting-its-cloud-positioning-right-last
IBM B2B Presence in Cloud
https://www-01.ibm.com/software/commerce/b2b/b2b-integration/cloud-services/
BM® B2B Cloud Services enable you to connect, collaborate, build, and manage your partner communities. Ranging from on demand to fully managed, these solutions provide you with the flexibility to quickly adapt as business needs change and evolve. IBM B2B Cloud Services solutions can help you:
• Improve and streamline onboarding and management of your trading partners • Enhance visibility and control over business processes shared with outside companies • Increase the reliability and performance of your B2B operations • Reduce the Total Cost of Ownership (TCO) of your B2B operations
Featured Products
• IBM® Sterling Collaboration Network
Connect and collaborate securely with customers and business partners; get unprecedented visibility and control over the business processes shared with outside companies.
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• IBM Sterling File Transfer Service
Manage a single, secure, and reliable connection to reach your partners without the capital expense associated with on premise software or the operational impact on your IT staff.
• IBM Sterling Integration Services
Alleviate the burden on internal resources with comprehensive service offerings for partner onboarding, B2B process management and trading partner support.
IBM B2C Presence in Cloud
• Engage customers in a contextual and relevant brand experience. • Empower business users to manage customer engagement across multiple channels. • Perfect the delivery to give customers exactly what they want, where and when they
want it. • Accelerate time to value on a powerful B2C commerce platform.
IBM Products
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Strengths:
IBM is a leader in Gartner's Magic Quadrant reports for CRM services, Digital Marketing Agencies (for IBM Interactive,) Business Intelligence and Multi-Channel Marketing Optimization (for Unica.) Its solutions routinely top the lists for data, technology and e-commerce, so it would be foolish to count it out even if it's catching up on the integration of them. Plus, IBM's huge global reach makes it an extremely viable player in the field.
Weaknesses:
With its heavy focus on commerce, IBM still has one foot firmly planted on the traditional marketing side, which means it is taking longer to integrate the offerings on the digital side. This means that while it could potentially have the most comprehensive marketing, sales, and commerce solution in a few years, it is currently lagging behind.
The other marketing clouds have multi-channel automation at the core of their service, but while IBM has built its hub around Unica it “doesn't address the full breadth of digital engagement,” says Gartner analyst Jake Sorofman.
IBM Sales Promotion
• Market Place Link
https://www.ibm.com/marketplace/search/us/en-us
• Ads
https://www.youtube.com/playlist?list=PL65F46AECC4502FA3
• IBM Cloud Market Portfolio
https://www-
356.ibm.com/partnerworld/wps/servlet/download/DownloadServlet?id=FzxovO
UBxLiiPCA$cnt&attachmentName=ibm_cloud_portfolio_navigator_interactive
_ebook.pdf&token=MTQ3MDMzNzk4ODAxOA==&locale=en_ALL_ZZ
IBM Pricing
Pricing strategy
http://www.rightscale.com/blog/cloud-cost-analysis/google-slashes-cloud-prices-google-vs-aws-
price-comparison
https://gigaom.com/2014/10/02/confused-by-cloud-computing-price-comparisons-here-they-
are-in-one-easy-peasy-chart/
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http://www.nextplatform.com/2016/03/22/systems-services-ibm-floats-cloud-concept-2016/
http://www.infoworld.com/article/2623721/saas/new-ibm-pricing-model-takes-a-cue-from-cloud.html
IBM is taking the pay-as-you-go pricing model of cloud services and applying it to some of its
software products for cloud service providers.
The new pricing scheme will let application providers who offer their software as a service pay
for IBM software, including WebSphere Application Server and IBM DB2, on a monthly basis as
they use it
Also, IBM has chosen 20 of its most popular products and will let its customers mix and match
the use of them in order to meet their monthly revenue commitment. For example, if a customer
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signs up to pay for $10,000 worth of software, the customer can use $7,000 worth of WebSphere
and $3,000 worth of DB2, or any other combination that adds up to $10,000
IBM is also offering new financing options for companies that are building clouds, either for
enterprises to use internally or for public consumption. Those customers have asked IBM for help
spreading out their capital investment payments.
IBM provides different pricing options based on type of business and its infrastructure
requirements
https://console.ng.bluemix.net/pricing/
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IBM Brand Equity
http://www.aef.com/pdf/in_class/case_histories/ibm_1995_2005.pdf
IBM Brand Equity Restoration and Advertising Evolution:
Various IBM campaigns to build the brand:
• “Solutions for a Small Planet” -Campaign in 1995
• The “E-business” Campaign - Late 1990’s
• The “ON Demand” Campaign -2002
• “The Other IBM” and “Help Desk” Campaigns -2005
• The “Innovation That Matters” Campaign-2006
• Internet Marketing -2007 onwards
• Recent Years -: Investing in cognitive https://www.ibm.com/blogs/commerce/2016/05/turning-cognitive-marketing-from-idea-to-reality/
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IBM – BRAND
How did IBM become such a respected voice in its field?
To uphold the reputation of a more-than-130-year-old company, it has to produce authoritative
content. Because the company is a technical one, it has to ensure that the content is technically
authoritative. And because the company is trusted by millions, it has to make sure that the content
is at expert level.
IBM delivers on all fronts. It’s a huge company, so it has a lot of different blogs. Here’s a
sampling:
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• IBM Fits in Cloud Market
http://www.networkworld.com/article/3070954/cloud-computing/where-does-ibm-fit-in-the-
cloud-market.html
Market Leader
IBM leads in overall vendor adoption for private cloud and in select private cloud segments due to its broad cloud and IT services portfolio, variety of deployment options and integration and optimization support. IBM’s expertise and knowledge of both cloud and legacy technology make it easy for customers to develop a migration path to a private cloud model.
Other report findings name IBM as the number one private cloud vendor in:
• Both hosted and self-built cloud for its comprehensive portfolio of cloud and hardware assets, such as security
• Cloud professional services for providing comprehensive solutions that span customers’ entire IT environments
• Adoption across most industries, due to IBM’s vertical approach to cloud and cutting-edge Watson technology
• Self-built hardware and cloud software for the ease of running complete private cloud ecosystems
• Self-built enterprise test and development for its wide variety of options, including behind-the-firewall development with Bluemix Local
• Business intelligence and analytics for leveraging IBM analytics and cognitive capabilities to create tailored BI applications for vertical customers
• E-commerce for IBM’s Commerce on Cloud offering, which was recently expanded to include Watson capabilities.
http://www-03.ibm.com/press/us/en/pressrelease/50257.wss