IBM Global Technology Services (GTS) Cloud Services Business Partner Update

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1 IBM Global Technology Services (GTS) Cloud Services Business Partner Update Kristie Bell Vice President, Global Technology Services Channels, Alliances, Mid-Market Services IBM Cloud Launch Links:

2 Services opportunity signals channel imperative for GTS and model design for its partners GTS Market Opportunity for 2015 (Billions) Business Partners of the Future are more services focused Services led Consulting skills Over $450B* Industry expertise Deep skills/certifications Service as a profit generator rather than enabler of product sales Market CAGR ~4% Based upon external sources (IDC and Gartner) and consistent with IBM's internal Global Market View estimates. Data is provided for illustrative purposes and is not intended to be a guarantee of market opportunity

3 Investment to Revenue: GTS can help shorten the time to profit Revenue Investment Cash Flow Positive cash flow/return Time

4 Collaborating with GTS drives mutual success Strengthen Offering Availability With standard services that expand margin and value Expand Reach Enhance Delivery of New IT Models With co-selling, codelivery of managed services and cloud With accelerated speed and scale, particularly in Mid-Market Improve Enablement & Simplify With training, incentives, marketing and support

5 We are working with our business partners to capture hyper-growth services areas Secondary Focus Labor & Asset-Based Services Primary Focus Cloud & Managed Services Labor-based Services Asset-based Services Cloud and Managed Services Cloud and Managed Services Selected prioritized offerings Selected prioritized offerings Infrastructure Recovery Security Services TivoliLive Monitoring Enterprise Cloud Enterprise + SmartCloud Desktop Services Managed Backup Margin Expansion Value Expansion MTS, SWS

6 PartnerWorld Cloud Specialty: Cloud Services Solution Providers Who are they Companies that resell multiple public cloud services and offer complementary value added services skills such as consulting, helpdesk, solution design, training and integration. Solution Providers, System Integrators, Resellers, MSPs, CSPs How do you make money Reselling solutions based on IBM Cloud Services with your value added capabilities What do they need.. A portfolio of public cloud services Business Development Programs Education and support How can IBM help you Partner enabled IBM Cloud Services LotusLive reseller options Cloud Solution Certifications Cloud Whiteboard Cloud Workshops

7 The IBM SmartCloud delivers a robust set of services to deploy alongside your own services Partner Services Backup / Recovery Desktop Cloud Security Monitoring and Mgmt Partner Services Management support and deployment Security and isolation Availability and performance Technology platform Payment and billing Enterprise data center Enterprise A Enterprise B Managed private cloud Hosted private cloud Shared cloud services 7

8 IBM Smart Cloud Enterprise is IBM s answer for today s public cloud needs Agile Infrastructure for Myriad of Workloads Choice of nine virtual (Intel) server configurations Summer Promotion! Up to 2mo. free client usage for new end users Choice of pre-configured IBM and third party software images from which to build private image libraries Linux operating systems; Red Hat and Novell SUSE Windows Server 2003 and 2008 IBM Lotus, WebSphere, DB2 and Informix stacks IBM Rational Application Lifecycle Management Tivoli Monitoring software Virtual Private Network (VPN/VLAN) services Enterprise level Support Options Choice of world-wide centers including Ehningen (Germany) Payment options: Pay-as-you-go, Bring-Your-Own-License, Developer-Use-Only, Pre-Release Reserved Capacity Options

9 Cloud Services Solution Providers How IBM can help A SmartCloud Enterprise on the IBM Cloud Use Case Business Partner Incentives Additional Services Starburst Potential $ Leverage expanding offerings and its channel incentives Base Pay as You Go discount Additional discount on Reserved Capacity with Deal Registration Annuity Revenue Stream Builds solution and adds expertise (ie: Web Application hosting : Instance Management Image Management Software licensing Networking Cloud Migration Services Complete the Solution across Cloud and non- Cloud Environments Backup and Recovery Services Cognos Analytics Cast Iron Integration 60+ SWG & ISV Images on the IBM Cloud

10 Bringing cloud-based desktop subscription services to the Enterprise: SmartCloud Desktop on the IBM Cloud Quick Highlights A new way of delivering Desktop Computing to end users through a Cloud Computing model, using tried and tested modular components integrated into a cloud environment that IBM manages A subscription service to office workers, task workers, variable workforces; also used for delivering desktop computing to alternative workspaces, such as virtual call centers Characterized by flexible delivery models, with different memory, disk and processor models, all managed by IBM Pre-designed and pre-built solution, providing the highest levels of quality, reliability, and security for your desktops Key differentiators include service management, by IBM, of the cloud environment and high security, providing separation of controls for end user access based on enterprise security policies Spotter s Guide Desktop Cloud is applicable to all clients across industries via an IBM hosted public cloud service model. Simply identify clients with more than 50 users with any three or four of the following aspirations: Small & medium business wanting IT but not IT Staff Changing employee working practices, e.g. home / remote access; wireless Requiring their own staff to work on clients premises Office relocation in short timeframes Collaborate in a value chain with other partners requiring secure access Off-shore or outsource processes Merger, acquisition, divestiture strategy Provide access to multiple application types from multiple device types and operating systems Efficiently test how applications would run on new operating systems

11 Business Partner services complement IBM SmartCloud Desktop on the IBM Cloud, creating new opportunities Offer network services Supply and manage hardware Enable business continuity Help clients virtualize and consolidate Provide application support SmartCloud Desktop on the IBM Cloud Deliver help desk services Address security concerns Conduct Assessment review

12 Expand your margins more than 2X by adding your services or GTS services to SmartCloud Desktop on the IBM Cloud Add: BP Level 1 HelpDesk Base Margin +15% Smart Business Desktop on the IBM Cloud 500 VM deal Base Deal Margin Example of driving organizational value Add: Business Continuity Virtualization/desktop, other Higher Value Services: 2X-4X Base Margin* *Represents margin opportunity from additional complementary services sold (BP delivered services and/or IBM resale) The potential profit margin(s) represented is/are for illustrative purposes only and is/are not intended to be a guarantee of the margin(s) a Business Partner may realize. Approximate margins projected using IBM list prices and standard Business Partner discounts who acquire directly from IBM. There is no guarantee IBM will sell the services at those discounts in the future nor that the actual sales price will reach IBM's list price.

13 We are anxious to work with you to grow your services business with IBM s robust portfolio of channel-ready cloud and managed services offerings Asset-based and globally delivered services IBM Smart Resilience Cloud Infrastructure and Workplace Services Managed Services Data Center Services Managed and Professional Security Services Incentives Pre-sales support teams Marketing and campaign tools Sales kits and training Sales tools Competitive selling resources

14 IBM Global Technology Services (GTS) Cloud Services Business Partner Update Kristie Bell Vice President, Global Technology Services Channels, Alliances, Mid-Market Services IBM Cloud Launch Links:

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