Beverly DeWitt, IBM Software GroupGreg Hurlebaus, IBM Systems & Technology Group

Making Money with IBM Making Money with IBM

Agenda● The Journey to Cloud Computing

●Building the Refrigerator

●Filling the Refrigerator

●Profiting from Cloud

●Call to Action and Summary

Traditional On Premise

Vendors:One-time charge model

Booked as transactional revenue“Sell it and forget it”

Customers:Upfront CAPEX

Rising and fluctuating OPEXBetter control, but more costly to integrate, manage, meter, scale,

analyze, report

Cloud is a game-changer

Cloud

Vendors:Annuity revenue stream

Earn renewal

Customers:No CAPEX

Predictable OPEXLower switching costs

Cloud Business Drivers

Do more with lessReduce capital and operational expenses

Reduce riskEnsure right levels of security and resiliency

Higher quality servicesImprove quality and deliver new services

Business agilityExpand or contract based on business needs and implement Social Business

7

Deployment Options for Cloud Computing

Private Public

Hybrid

IT capabilities are provided “as a service,” over an intranet, within the enterprise and behind the firewall

Internal and external service delivery methods are integrated

IT activities / functions are provided “as a service,” over

the Internet

Workloads that offer favorable entry points for cloud delivery models

Top public workloadsEmail

Audio/video/Web conferencing

CRM

Service help desk

Infrastructure for training and demonstration

WAN capacity and VoIP infrastructure

Desktop

Test environment infrastructure

Storage and server

Data center network capacity

Infrastructure and collaboration workloads emerge as most appropriate

Top private workloadsData mining, text mining, or other analytics

Security

Data warehouses or data marts

Business continuity and disaster recovery

Test environment infrastructure

Long-term data archiving/preservation

Transactional databases

Industry-specific applications

ERP applications

Database, application and infrastructure workloads emerge as most appropriate

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090

Building the Refrigerator

10

• Top reasons why IBM STG is a leader in Cloud Infrastructure: – IBM Enterprise Quality of Service capabilities

– IBM Enterprise level security with zero reported Common Vulnerability Exposures ensures data security to support multi-tenancy.

– IBM is the only vendor who designs the virtualized environment from bare metal through the hypervisor, eliminating bypass of security controls and assuring a rock-solid audit trail to confirms conformance.

– Highest available infrastructure: Extensive, above industry-average RAS in eX5, POWER7 and mainframe.

Building the Refrigerator...Why IBM Hardware for Cloud InfrastructureComplete private cloud infrastructure optimized for mission critical workloads

11

● IBM Cloudburst for Power and System x● IBM System z Solution Edition for Cloud Computing● Smart Analytics Cloud for IBM System z and Power● IBM Systems Director, VMControl and Active Energy

Manager● IBM Scale Out Network Attached Storage

IBM Hardware Offerings for the Cloud

12

Why Power for Cloud...Power is Cloud Optimized

Workload-Optimizing Systems

+

Self-service portal with automatic provisioning of resources for improved customer service & reduced IT labor hours by up to 67%Automatically optimize workload performance and capacity based on demandLeadership virtualization capability provides enterprise QOS with higher performance, more scalability, and driving systems up to 90% utilizationEnterprise level security for mission critical workloadsComplete resource control with integrated server, virtualization, network and storage managementCharge for IT services based on the usage and accounting data

13

IBM CloudBurst on Power SystemsIntegrated cloud solution for the fastest private cloud deployment

All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. Some features require the purchase of additional software components. Please see Disclaimer slide

Completely integrated service management platform with network, servers, storage, software and quickstart services that enable the fastest time to value

Deliver services faster via a self service portal by offering a standardized service catalog and automatically provisioning requested resources

Reduce complexity and risk through standardization and automation which help to reduce human errors

Lower IT costs by leveraging automation workflows to provision assets based on business approved policies

Decrease capital expenses by ensuring optimal utilization of all resources

Scales to the enterprise with the ability to expand the solution to manage additional platforms and workloads

Enterprise quality of service by leveraging the Power systems hardware, virtualization and software components

14

Why should customers run SugarCRM on IBM i

● IBM i offers the unique ability to offer architecture/platform that best fits enterprise customer requirements/environments.

● IBM i is workload optimized and designed for scalable virtualization.

● POWER7 systems enable massive workload consolidation to drive maximum system utilization and cost efficiency.

● IBM is the only provider offering the highest qualities of service available with choice of System z mainframe, Power, or System x.

● IBM provides ‘breadth’ of offerings – Services, Financing, Storage, Software.

15

Power your CRM solution with IBM systems - a comprehensive solution

Affordable low-end servers with outstanding performance, energy efficiency and reliability

Simplicity and integration with IBM i

Software as a Service solutions with many ISVs

Special offers / Price point Up to 40% discount off IBM i server Sugar Enterprise Edition for the

price of Sugar Professional Edition

Advantage over the competition• Lead with IBM Power Systems tuned for

high performance with SugarCRM• Robust solution price competitive with Intel

platform

• IBM Power customers looking to improve customer retention and satisfaction with a CRM solution

Target Market

IBM i Solution Edition for

Configurations for 50, 150 and 500 Users

16 Simplicity. Growth. Profitability.

IBM Express models immediately available through IBM distribution

Special offers / Price point• IBM Express models often represent savings 5 -

20% vs. standard models• Recommend 3 Express x3550 M3 models…one each for

small, medium and large environments

Advantage over the competition

• IBM Express is EASY• Easy to configure• Aggressively priced• Stocked in channel• Your key to rapid sales execution

• Access to IBM Install base• IBM BP Benefits help you reach new opportunities

and deliver higher value

• Midsized business requiring better integration between sales and marketing

• Intel Install base with no desire to move

Target Market

IBM System x business partner solution for……

Small

(50 users)1

Med

(100-150 users)1

Large

(150-250 users)1

7944E4U + cpu/memory4 core 2 Xeon E5607/2.26GHz, 4x2GB

7944E5U + cpu/memory 6 core 2 Xeon E5649/2.53GHz, 4x2GB

79446U + cpu/memory6 core -2 Xeon X5650/2.66GHz, 3x4GB

+• Add the benefits of IBM PW

Membership• Co-Marketing w/ IBM 3:1• Marketing Support ( MSV)• Become a Smarter Planet reference

1 Estimate based on info supplied to IBM, contact IBM for requirements > 250 users/server

17

Stocking the Refrigerator

IBM SaaS Offerings

Stocking the Refrigerator

IBM SaaS Offerings

18©2011 SugarCRM Inc. All rights reserved.

Cloud ServiceDeveloper

Cloud Service Provider

Common Cloud Management Platform

Virtualized Infrastructure – Server, Storage, Network, Facilities

Cloud ServiceConsumer

Partner Clouds

Customer In-house IT

Consumer Administrator

Consumer Business

Manager

Developer

Service Business Manager Service Operations Manager

Cloud Services

User Interface

Consumer End user

AP

I

Software-as-a-Service

Platform-as-as-Service

Infrastructure-as-a-Service

Business-Process-as-a-Service

Metering, Analytics & Reporting

Service Provider Portal

Service Development

Tools

Service Definition Tools

Image publish Tools

Configuration Mgmt

Offering Mgmt

Order Mgmt

Accounting & Billing

Customer Mgmt

Entitlements

Contract Mgmt SLAReporting

Pricing & Rating

Peering & Settlement

Subscriber Mgmt

Service OfferingCatalog

Invoicing

Service Automation Management

Virtualization Mgmt

Provisioning

Monitoring &Event Management IT Asset & License Management

Service Request Management

IT Service Level Management

Image Lifecycle Management

Capacity &Performance Management

Incident, Problem &Change Management

BSSBusinessSupportSystem

Service D

evelopment P

ortal

AP

IS

ervice Delivery P

ortal

OSSOperationalSupportSystem

IBM Service Delivery Manager

Service Transition Manager

Service Security Manager Security & Resiliency

Service Delivery Catalog

Service Templates Image Creation Tools

● Cast Iron is a simple and widely used solution for rapidly integrating Cloud solutions with on-premises enterprise applications

● Connectors for cloud apps (SugarCRM, NetSuite, etc) and on-premises apps (SAP, JD Edwards)

● Hundreds of pre-built templates – reduces custom coding ● Fixed term and perpetual license for Cloud and On-Premise App

Endpoints

Cloud Application IntegrationCloud Application Integration

20

LotusLive is a social business platform that delivers cloud-based collaboration tools and social networking servicesSugarCRM for LotusLive places social business capabilities into the hands of SugarCRM users● Simplify and improve business interactions inside and outside the

enterprise● Expand the enterprise perimeter to the cloud

2020

Social Business in the Cloud

Files

Meetings Events

Chat

Survey FormsCharts

eMail

Communities

Activities

Integrated Applications

My Network

Resources to Help you Sell

Business Partner Demo accounts● One year no-charge subscription● Engage, Meetings, iNotes● Notes hybrid planned

Marketing, sales, and technical resources

Business Partner Managed Client Trials

● Unique Trial URLS● You own the

opportunity!

● Discover, design, automate, and manage business processes ● Document processes to create Blueprints ● Configure simple Process Apps in 90 seconds ● Engage your team to collaborate effectively ● Leverage expert communities

Cloud Business Process Management Cloud Business Process Management

24

Blueworks Love: Simple for Novices, Rich Enough for Experts

EducationCompensation

Marketing and lead generation

Install & demonstrate to customers

Executive level sponsorship

IBM PartnerWorldPut the Power of IBM Behind your BusinessIBM PartnerWorldPut the Power of IBM Behind your Business

Tactical Investments

26©2011 SugarCRM Inc. All rights reserved.

Business Opportunities with IBM Cloud

●Planning for Cloud adoption● Define desired-state IT architecture after cloud adoption

● Which business processes would benefit from cloud?

● Data, directory, network, security

●Cloud platform●Software as a Service●Cloud components

SellingConsulting Managing

●User administration●Integration with on-premises systems

●Level 1 Support/Help Desk

●Managing private clouds●Meter, analyze●Reporting, billing

Base margin for resale

Software Value Incentive

General Business Rebates

Cloud Specialty Certification

Leverage all the pieces of the IBM Software Value Plus Program to maximize profits

Compensation

Rewarding Business Partners for Skills and Results

Compensation

Rewarding Business Partners for Skills and Results

up to 40% margin on software

Visit PartnerWorld and joinwww.ibm.com/partnerworld

Grow your Business by Selling IBM and SugarCRM Together

Enjoy SugarCon and visit Booth #100

Summary

Next Steps for Business Partners

Summary

Next Steps for Business Partners

Thank YouThank You

www.ibm.com/partnerworld/cloud www.ibm.com/partnerworld/cloud

04/01/11 ©2010 SugarCRM Inc. All rights reserved. 30

31

Legal Disclaimer© IBM Corporation 2011. All Rights Reserved.

The information contained in this publication is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this publication, it is provided AS IS without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this publication or any other materials. Nothing contained in this publication is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software.

References in this presentation to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in this presentation may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. Nothing contained in these materials is intended to, nor shall have the effect of, stating or implying that any activities undertaken by you will result in any specific sales, revenue growth or other results.

Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here.

All customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer.

IBM, the IBM logo, Lotus, Lotus Notes, Notes, Domino, Quickr, Sametime, WebSphere, UC2, PartnerWorld and Lotusphere are trademarks of International Business Machines Corporation in the United States, other countries, or both. Unyte is a trademark of WebDialogs, Inc., in the United States, other countries, or both.

Microsoft and Windows are trademarks of Microsoft Corporation in the United States, other countries, or both.

UNIX is a registered trademark of The Open Group in the United States and other countries.

Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both.Other company, product, or service names may be trademarks or service marks of others.