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1 Innovate with the Cloud built for Cognitive Business - IBM Cloud. Nancy Pearson Vice President Corporate Marketing Cognitive Business Sandy Carter General Manager IBM Cloud Ecosystem and Developers

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3 What s putting the world s top executives on edge? The Uber syndrome where a competitor with a completely different business model enters your industry and flattens you. Judy Lemke, CIO, Schneider, United States The boundaries of competition are becoming ambiguous. Yong Eum Ban, CFO, JoongAng Media Network, South Korea The biggest threat is new competitors that aren t yet classified as competitors. Piotr Ruszowski, CMO, Mondial Assistance, Poland Uber has a market cap that exceeds the market cap of all the car rental companies combined, and it s only an app. CMO, Transportation, United States

4 Redefining Boundaries CEOs C-suite, high performance believe industry convergence will reset strategic direction expect to take on new roles in new ecosystems are set on being first to market with innovation 70% are transforming their revenue models 60% are reassessing who their customers should be

5 The technologies that CxOs expect to revolutionize business tomorrow are already in play today Cloud computing and services Mobile solutions Internet of Things (IoT) Cognitive computing Advanced manufacturing technologies New energy sources and solutions Bioengineering Man-machine hybrids Technologies revolutionizing business (in 3 to 5 years) 63 % 61 % 57 % 37 % 28 % 23 % 12 % 10 %

6 The role of the cloud is maturing into the environment for innovation and business value 3 Value 1 Cost IaaS-centric Virtual compute Low cost storage Traditional app hosting 2 Innovation PaaS-centric DevOps tooling Web/Mobile apps Basic analytics Hybrid integration Business Value High value solutions Cognitive apps Advanced analytics Internet of Things Cost Effectiveness Essential Integration

7 IBM Point of View 4 Guiding Principles Choice with Consistency Industrialized Hybrid Cloud DevOps Productivity Powerful, Accessible Analytics with Cognitive

8 Run-times and delivery models to suit the full spectrum of enterprise needs. Bluemix Containers Virtual Machines Bare Metal Public Dedicated Local The full scale and agility of the public cloud. In our datacenter. Dedicated to you. On your premises. Optional tethered management. Abstraction & Dev Velocity Transparency & Control Fully managed options and both scale-up & scale-out designs available.

9 IBM SoftLayer: Total Access, Control and Transparency 40 global cloud centers Open, secure, and scalable Secure, high-speed network Expert services and tools Secure integration to on-premises

10 IBM Point of View 4 Guiding Principles Choice with Consistency Industrialized Hybrid Cloud DevOps Productivity Powerful, Accessible Analytics with Cognitive

11 Industrialized Hybrid Cloud Integration Visibility & Control Private Dedicated and Local Security DevOps Portability Data Management On-Premises IT Public

12 IBM Point of View 4 Guiding Principles Choice with Consistency Industrialized Hybrid Cloud DevOps Productivity Powerful, Accessible Analytics with Cognitive

13 Compose innovative cloud apps with the IBM Bluemix platform Make good apps great with IBM MobileFirst Platform The Best Tools The Broadest Catalog The Most Choices for Delivery Model Continuously Improve Secure Contextualize and Personalize Enrich with Data DevOps Services IBM MobileFirst Platform delivers rich services and then integrates them for an end-to-end experience for mobile development and operations teams

14 IBM Point of View 4 Guiding Principles Choice with Consistency Industrialized Hybrid Cloud DevOps Productivity Powerful, Accessible Analytics with Cognitive

15 The Most Comprehensive Analytics Portfolio Analytics Platform Full range of analytics and data capabilities using open source innovation for real-time actionable insights Internet of Things A platform designed to build disruptive, data-rich solutions that are secure and intelligent Watson Cognitive computing systems with the ability to learn, that enhance, scale and accelerate, human expertise Insight Cloud Services Industry apps and solutions built in partnership with The Weather Company and Twitter that deliver new insights

16 IBM Institute for Business Value Cognitive Studies by Industry Insurance 30% say the quality of data is insufficient for business model innovation 98% plan to invest in cognitive Retail 60% don t believe they can deliver on consumer expectations 95% plan to invest in cognitive Healthcare 50% say available data limits confidence in strategic decisions 95% plan to invest in cognitive

17 A Cognitive Business Becoming a Cognitive Business: 1. A cognitive strategy 2. A foundation of data and analytics 3. Cloud services optimized for industry, data and cognitive APIs 4. IT infrastructure tuned for cognitive workloads 5. Security for a cognitive era Code at the core. Built on cloud. Fueled by data. Transformed through cognition.

18 IBM is #1 in Hybrid Cloud Only IBM Cloud provides: IBM is ranked as the #1 hybrid cloud provider for the enterprise. Synergy Research Group Wall Street Journal Full hybrid cloud transparency Fast hybrid app development and full orchestration of business processes The right access and relevant insight across all hybrid cloud data IBM Cloud supports 47 of the top 50 Fortune 500 Companies.

19 Innovate with the Cloud built for Cognitive Business - IBM Cloud Sandy Carter General Manager IBM Cloud Ecosystem and Developers

20 Alpha Modus: A Cognitive Cloud Study Built app 80% FASTER HACKATHON - in 7 days developerworks Watson services Technical & GTM Support Client commits $500M* 20 * FinTech Marketplace takes a subscription for $500 Million into ALPHA,

21 Top 3 Trends for Partners in the Cognitive Era TM Growth will come from cognitive and IoT. Hackathons are the new proof of concept for Cloud. Industry clouds will grow 400% by 2018.** OutThink Innovate Faster Grow your business >50% will interact with cognitive computing - IDC* 21 *December 2015 IDC , IDC FutureScape: Worldwide Big Data and Analytics 2015 Predictions; **October 2015 IDC , Top Preferred Industry Cloud Technology Vendors for 2015

22 My 3 Big Asks Participate in the Cognitive Era Leverage a Hackathon Attend Events - Interconnect - PWLC 22

23 Accelerating Digital Business The Cognitive Era Built on Cloud From Cost Cloud Components Private Cloud Public Cloud Broker To Digital Transformation Hybrid Integration New App Development Security RESELLERS INTEGRATORS 23

24 Business Partners Succeed with Cloud in Cognitive Era Cloud partners expect to increase revenue by 68%* Almost 2X the revenue growth of their peers** Revenue growth Resell IBM Cloud Bluemix embed contract MobileFirst BP Fast Start 24 *February 2015, IDC , Partner Participation in the Third Platform: the Keeners, the Establishment, and the In-Betweeners ** IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation

25 Accelerate your Cognitive Journey IBM Cloud IoT Recipes Connect to 28 Certifications Weather & Twitter Data Cognitive APIs developerworks ThinkAcademy Big Data and Analytics Build a Practice Courses Seller Toolkits Around Cognitive Cloud 25 \

26 IBM Cognitive Cloud Acceleration in Action 26 Won Hackathon with Cognitive Security App Global Entrepreneur Program for Cloud Local IBM Mentoring - Move to Bluemix New Offering Project Ares 26

27 New Routes to Market in the Cognitive Era IBM Marketplace Partner Marketplaces ibm.com/marketplace 27

28 Hackathons are the New Proof of Concept Shaves 25-50% off time-to-market* Outcomes: Applications Talent Innovation Hack with IBM: Partner with us Leverage your APIs in a public hack Run your own with our Hackathon in a box IBM Corporation Page 28 * McKinsey, Demystifying the Hackathon,

29 IBM Confidential Page 29 Bluemix with Watson Hackathon Over 100 Badges Earned 5,951 MOOC Participants 3,000 APPS WatchOver App Uses Mobile, IoT, and Watson to notify when loved ones wander 29

30 We are Investing in Agile practices for you! Bluemix Garages Design Studios Innovation Spaces 30

31 IBM IBM Bluemix Garage Method Learn Continuously learn based on outcomes from experiments Think Conceptualization, refinement, and prioritization of capabilities Code Generation, enhancement, optimization, and testing of features Innovate Like a Startup. To learn more visit: Manage Ongoing monitoring, support, and recovery of offerings Culture Foundational values and principles Run Services, options, and capabilities required to run in the Cloud Deliver Automated production and delivery of offerings

32 Industry Matters More in the Cognitive Era Industry clouds >500 in 2018 and >1,000 by 2020* Learn Office hours, AMAs with guides Build Sample code, industry apps, analytics Hackathons Sell Linkage with communities like FinTech 32 * October 2015, IDC , Perspective: IDC Insights: Top Preferred Industry Cloud Technology Vendors for 2015

33 Leverage the Innovation of over 7000 startups on IBM Cloud Broaden your portfolio and reach Retail FinTech Healthcare I STYLE MYSELF 33

34 IBM Hacking to Innovation by Industry 34 Healthcare Telco FinTech Cross Industry 34

35 Attend Events to Build Relationships and Skills David & Goliath Events Enterprise expertise & investment Entrepreneurial innovation INTERCONNECT Feb , 2016 ibm.com/interconnect PWLC Feb , 2016 ibm.co/1kd8h1p IBM Corporation Page 35

36 36

37 How will you win in the Cognitive Era? IBM Confidential Page 2 OutThink Innovate Faster Grow your business We can do it together. IBM Cloud 37

38 IBM Confidential Page 38 Appendix 38

39 Find the Resources IBM Confidential Page 39 developerworks Marketplace Hybrid Cloud Get Certified on IBM Cloud developerworks Recipes Data & Analytics Seller Tool Kit Get access to IBM Insights for weather and Twitter data on Bluemix Cognitive APIs Get authorized for the Watson Software Value Plus Product Group Learn more about IBM Watson and Cognitive Computing at the Watson Academy Office Hours Cognitive guides for actionable industry insights PartnerWorld Industry Resources IBM Software Value Plus Industry Authorization showcase Pre-built industry solutions leveraging advanced predictive analytics to deliver transformative insights Register for Interconnect PWLC ibm.com/partnerworld/wps/servlet/ContentHandler/pw_com_pwppartnerworld-leadership-conference IBM Corporation Page 39

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