Submitted By:

Samir Singh--- EPGP 030

IBM REM Report

REM | ACCDV | August 9, 2016

IBM REM Report

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

Google

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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Customer Segmentation

HOW IBM IS TARGETING THE CUSTOMERS:

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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