IBM Cloud: Platform-as-a-Service
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1 IBM Cloud: Platform-as-a-Service September 17 th,
2 Forward Looking Statements and Non-GAAP Information Certain comments made in this presentation may be characterized as forward looking under the Private Securities Litigation Reform Act of Forwardlooking statements are based on the Company's current assumptions regarding future business and financial performance. Those statements by their nature address matters that are uncertain to different degrees. Those statements involve a number of factors that could cause actual results to differ materially. Additional information concerning these factors is contained in the Company's filings with the SEC. Copies are available from the SEC, from the IBM web site, or from IBM Investor Relations. Any forward-looking statement made during this presentation speaks only as of the date on which it is made. The Company assumes no obligation to update or revise any forwardlooking statements. These charts and the associated remarks and comments are integrally related, and they are intended to be presented and understood together. Information regarding the Company's financial roadmap including interim periods, which was previously communicated to investors, is being presented for purposes of historical information and is not being updated during this presentation. 2
3 Cloud is changing the way enterprises work and transforming the way IT and business processes are delivered Nearly 70% of enterprises to pursue hybrid cloud by 2015 ** Cloud Market Opportunity * 25% CAGR through % of net new software built for cloud delivery in 2014 *** Growing IT complexities accelerating shift to software defined solutions Open standards driving new class of innovation Expanding role of Service Providers By 2017, cloud spend will be $392B $392B SaaS / BPaaS IaaS / PaaS Private Cloud 25% CAGR 28% CAGR 24% CAGR *Source: IBM Market Insights, 1H 2014 **Source: Gartner, p.6, Private Cloud Matures, Hybrid Cloud is Next, Gartner G , Sept 6, 2013 ***Source: IDC Directions, "How SaaS Gets Built" Doc # DR2014_T3_RM March
4 Only IBM can fully address enterprise cloud needs integrating sytems-of-engagement with systems-of-record Think it. Build it. Tap into it. Business Process as a Service Enabling business transformation Smarter Commerce Smarter Workforce Smarter Analytics Watson Solutions Software as a Service Marketplace of high-value consumable business applications Smarter Cities Software Solutions Platform as a Service Composable and integrated application development platform Bluemix TM Patterns Infrastructure as a Service Enterprise class, optimized infrastructure Infrastructure Services IBM Cloud Managed Services IBM s participation across the stack drives higher operating leverage 4
5 Enterprise cloud innovation requires a variety of deployment models, typically tied to existing systems-of-record Traditional IaaS PaaS SaaS IBM hardware and professional services IBM SoftLayer IBM Bluemix 100+ IBM offerings Code Data Infrastructure Components APIs Code Data Middleware Middleware Middleware OS OS OS Virtualization Servers Storage Virtualization Servers Storage SoftLayer Virtualization Servers Storage Bluemix Virtualization Servers Storage Networking Networking Networking Networking Cloud Enabled Cloud Native Apps/Services Client manages Vendor manages 5
6 Platform-as-a-Service makes cloud application development simple and fast Platform-as-a-Service (PaaS) abstracts the underlying infrastructure in favor of automation and a developer focus on runtimes, code, and data This allows developers to begin developing and deploying new mobile and Web applications immediately, without losing time with infrastructure setup IBM 3 rd party Open Why enterprises adopt PaaS 1. Enables the ability to bring new mobile and Web applications to market faster 2. Allows for experimentation with new business models 3. Simplifies the integration of new applications with existing systems of record 6
7 Bluemix unlocks developer productivity to quickly deliver enterprise-enabled applications 1 Developers gain instant access to a rich set of services built around industry leading domains including mobile, big data and analytics, security and more. 50+ services from IBM s middleware and SaaS portfolios, 3 rd party and open source services Bluemix dramatically increases the speed at which new apps can be built and deployed, shifting traditional development from months to minutes, allowing enterprises to experiment with and reinvent their business models. Integration services connect the enterprise cloud mobile applications to their existing on-premise infrastructure, connecting systems of engagement with systems of record in hybrid configurations. New applications and services can reach consumer scale rapidly with enterprise grade infrastructure services from IBM SoftLayer. Bluemix represents the next step in the transformation of IBM s cloud offering - Gary Barnett, Ovum 7
8 Bluemix is transforming business with significantly faster time to deployment 1 2 Enabling Developers with instant access Providing the ability to deploy rapidly Increasing customer satisfaction with immediate feedback loops using IBM mobile quality assurance services Speed and being nimble are our competitive advantage. This is where our partner IBM comes in. With their help, we will become a truly MobileFirst bank." Deployed new customers in 30 seconds, versus 2 days through strong devops services With Bluemix, we don t have to worry about infrastructure; all of that s taken care of. All we focus on is our code. 3 4 Connecting traditional IT and cloud Scaling on-demand Developed running prototype of new application in only 15 days that ties legacy technology into a real-time mobile application, versus traditional 6 month development cycle Reduced service defect resolution time by 300% through mobile quality assurance and DevOps services catching defects early on You don t have to have all the assets in place or figure out how to build an environment. It s all in the cloud All I have to do is plug-and-play components into the different places to solve different business problems 8
9 Bluemix cloud data services bring the full breadth of analytics capability to the cloud Broad portfolio of advanced database capabilities to manage and analyze any data Quickly provision databases to compose applications Flexible hybrid deployment models to support the enterprise Cloudant. Manage data for large or fastgrowing web and mobile apps in ecommerce, on-line education, gaming, financial services, and other industries Analytics Warehouse. High performance columnar in-memory database for complex analytical queries on structured data Time Series. Consolidate and organize massive amounts of time-stamped data for consistently fast analysis Geospatial Analytics. Use real-time geospatial data to track and use device location information Analytics for Hadoop. Analyze and visualize large volumes of structured and unstructured data SQL Database. Handle demanding web and transactional workloads Our code handles hundreds of millions of transactions a day. Moving our data to the IBM Cloud has freed up our team to focus on what matters most: making a great experience for users. - Joel DeYoung, Co-Founder and Director of Technology for Hothead Games 9
10 Bluemix mobile services scale to meet demand Build and manage one backend to power both Android and ios applications Improve code quality with vulnerability scanning and Mobile Quality Assurance Mobile Data. Build a scalable, reliable backend datastore without database management skills Push. Schedule and send notifications to users. Segment and analyze customer engagement and response. Mobile App Security. Block access to apps and services on certain devices Mobile Quality Assurance. Easily obtain and respond to both bugs in pre-production and customer feedback in production AppScan for Mobile. Scan mobile app code for security vulnerabilities Mobile is super important for us and it's not that well supported on computing platforms, that's something that we found in Bluemix. - Federico Pinna, Co-Founder and CTO for Vivocha 10
11 Developers can begin from systems-of-record or from the cloud, and integrate them through the Bluemix platform Create custom APIs to access your systems-of-record from new applications Manage secure connections between systems Extend the enterprise to new cloud, mobile, and social applications Workload Integration With Bluemix we can just create and connect so it takes all of that friction out of getting the end result. - Nigel Hook, CEO DataSkill 11
12 IBM DevOps for Bluemix offers an integrated toolset for continuous development and delivery in the cloud 100,000 We can easily modify the files and use the auto deployment to deploy using Bluemix DevOps I will recommend this to other fellow developers. - Top Coder Developer 12
13 PaaS revenue and profit dynamics Enterprises require pricing flexibility as they move to the hybrid cloud Bluemix provides pay-as-you-go and subscription based pricing, with a-la-carte and bundled services availability IBM s PaaS capabilities and freemium model cater to new born-on-the-cloud workloads as well as enterprise workloads IBM PaaS leverages the SoftLayer infrastructure and network, providing significant financial efficiencies across the cloud stack IBM has been investing heavily in organic development, acquiring supporting solutions, and expanding the partner ecosystem $1B committed across Bluemix platform, integration with growth initiatives, and geo expansion PaaS offerings and capabilities increase the workload on existing systems-of engagement, driving additional system/software/services needs $4.4B of total cloud revenue in 2013, including $1.7B delivered as-a-service Exited 2Q 2014 with as-a-service run-rate of $2.8B, nearly double YTY Significant investments to drive innovation and differentiation As the cloud platform scales, its profit margin expands 13
14 IBM continues to innovate with the Bluemix platform Bluemix enables mobile application development for the enterprise IT masses by combining born-on-the-cloud speed with enterprise grade developer lifecycle tools Bluemix offers 50+ robust services in application development including big data, analytics, security, devops, mobile, and more with scalability by running on SoftLayer, the performance leader Backed by IBM s startup ecosystem, Bluemix reaches 1,200+ entrepreneurs and expands outreach through the Bluemix Garage global initiative IBM is commercializing more than 100 new applications through the IBM and Apple partnership, and developers have access to 250+ services through the IBM marketplace IBM's key differentiator and long term strategic bet is its Bluemix PaaS, which they are combining with their analytics capability in the cloud and with Apple's broad reach of mobile devices. - Frank Gens, IDC 14
15 IBM leads the transformation of enterprise IT for the cloud Bluemix brings IBM s middleware portfolio to the cloud, leveraging its segment leadership and expertise The combined IaaS+PaaS market is growing rapidly Enterprise developers need a cloud platform to quickly and easily integrate new systems-of-engagement with existing systems-of-record Integration drives incremental workloads to traditional infrastructure Cloud operating leverage improves as IBM extends its portfolio of offerings across IaaS, PaaS, and SaaS IBM cloud is bringing enterprises into the next generation of hybrid deployments with the combined power of SoftLayer and Bluemix 15
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IBM :Infrastructure-as-a-Service July 30 th, 2014 www.ibm.com/investor Forward Looking Statements and Non-GAAP Information Certain comments made in this presentation may be characterized as forward looking
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