IBM Dynamic Infrastructure - response on today's challenging business climate

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1 Helping chief information officers respond to budget pressures Mārtiņš Grants IBM Latvia Global Technology Services Country Leader 01/04/ IBM Corporation

2 Agenda CIO challenges in the current tough economic situation IBM cost saving and productivity gain solutions Dynamic Infrastructure: Addressing today s challenges and tomorrow s opportunities 2 2

3 The Economist: This is indeed the worst economic crisis since the collapse of the communist planned economies and the wrenching process of privatisation, liberalisation and stabilisation that followed. 3 Strategies for Uncertain Economic Times

4 CIOs are under a tremendous pressure Cut your costs! Support new business initiatives! Do more with less!...and don t forget about regulations, security, audit 4 4

5 Cost Cost IBM Global Technology Services Strategies for Managing in an Uncertain Environment: tactical approach versus a strategic response Short Term Cost Reductions Hiring freeze New IT project budget freeze Termination of sub-contracting agreements Voluntary departure plans Early retirement Structural Cost Reductions Relocation of resources/applications Central vs. decentralized IT governance Strategic alignment & prioritization Maintenance/process outsourcing Process optimization Reduce FTE, minimize overlap, improve control Type 1 Rationalization Reduce Capacity X Type 2 Structural Change Transform Fixed into x Variable Costs Change IT operating model Volume X Volume x 5 5

6 IT Spending IBM Global Technology Services Strategies for Managing in an Uncertain Environment: how to save money and to do more with less? 100% New Solutions Liberated funding for direct saving or transformational investment Application Enhancements Strategic Change Capacity Cost of Operations New Solutions Operations Support Application Enhancements Operations Maintenance Operations Support Operations Maintenance 6 6

7 IBM Global Technology Services are designed to help you reduce costs, achieve greater IT value and improve productivity Cut costs Get more from existing infrastructure Increase productivity Provide immediate savings and near-term return on investment Defer capital expenditures Manage / mitigate risk Meet changing business demands Help with Financing 7 7

8 Cut costs while maintaining or improving IT performance Actions to take: Conduct an assessment to identify cost savings Simplify and consolidate computing and networking Virtualize IT to reduce costs and enhance performance How IBM Global Technology Services can help: IT Optimization Planning: Identify ways to optimize infrastructure spending, and build a business case and transition road map to achieve this. Data Center Assessment & Design: Design a new data center and save up to 20% for mid-size centers and up to 40-50% for enterprise centers -- with 35% less cost for high density zones. Data Center: Strategy and Consolidation & Relocation: Optimize your data center portfolio and reduce the number of data centers to cut operating costs up to 50%; relocate cost-effectively with minimal outage Server Consolidation Services and Efficiency Study: Reduce server management costs by 30 to 70 percent through performance optimization and consolidation ratios ranging from 6:1 to 20:1. Converged Communications Services: Reduce annual telephony costs 15 to 20 percent with a converged network and IP telephony. Virtual Infrastructure Access Services: Reduce infrastructure, end user support and energy costs with virtual desktops, hosted in the datacenter and accessed anywhere, with an estimated first year return on investment of 30 to 40 percent. 8 8

9 IBM Infrastructure Optimization Services What is the source of the performance problem? 9 9

10 Cut costs while maintaining or improving IT performance Actions to take: Conduct an assessment to identify cost savings Simplify and consolidate computing and networking Virtualize IT to reduce costs and enhance performance How IBM Global Technology Services can help: IT Optimization Planning: Identify ways to optimize infrastructure spending, and build a business case and transition road map to achieve this. Data Center Assessment & Design: Design a new data center and save up to 20% for mid-size centers and up to 40-50% for enterprise centers -- with 35% less cost for high density zones. Data Center: Strategy and Consolidation & Relocation: Optimize your data center portfolio and reduce the number of data centers to cut operating costs up to 50%; relocate cost-effectively with minimal outage Server Consolidation Services and Efficiency Study: Reduce server management costs by 30 to 70 percent through performance optimization and consolidation ratios ranging from 6:1 to 20:1. Converged Communications Services: Reduce annual telephony costs 15 to 20 percent with a converged network and IP telephony. Virtual Infrastructure Access Services: Reduce infrastructure, end user support and energy costs with virtual desktops, hosted in the datacenter and accessed anywhere, with an estimated first year return on investment of 30 to 40 percent

11 Infrastructure value Business value IBM Global Technology Services IBM Converged Communications Competence Center (4C) Organizations will derive increasingly greater value as their implementation of converged communications evolves Innovation Industry solutions Converged communications enabled network and IP switching capability providing: Lower TCO, increased flexibility and resiliency IP telephony solutions from IBM Powerful collaboration capabilities, built on integrated voice, data and video applications delivering improvements in employee effectiveness and productivity. Unified messaging Collaboration solutions Advanced contacts centers helping to deliver improved customer service. Contact Center More competitive business models enabled through the integration of new converged communications capabilities leveraging all forms of information for anytime, anywhere decisions Network convergence services IP Telephony Unified Messaging Real-time Collaboration IP Contact Center Business Applications Integration 11 11

12 Get more from your existing infrastructure Actions to take: Ensure IT is responsive to changing business needs Simplify and consolidate networking Improve utilization and capacity through virtualization & grid technologies Reduce expense associated with downtime How IBM Global Technology Services can help: Business of IT Executive Workshop: Prioritize IT investments to support the most critical business needs. Network Optimization: Increase network efficiency, reduce costs, and enhance performance. Server Virtualization Services: A VMware server infrastructure can achieve utilization rates up to 80 percent and consolidation ratios from 8:1 to 30:1. Storage Optimization and Virtualization: Virtualize storage and reduce complexity while increasing capacity Information Protection Services: Save an average of 40-60% on TCO with a fully-managed information protection service IBM Internet Security Systems, Proventia: Protect your network assets and data from costly security breaches -- save an average of times your investment

13 Consolidation and Virtualization Services IBM Global Technology Services Build the Foundation for a Dynamic and Optimized Infrastructure IBM Solutions Help Clients Consolidate & Virtualize Within & Across Platforms Mainframe Virtualized environment System z z/linux z/vm Storage Growing capacity and server virtualization support UNIX Virtualization common and mature Power Systems PowerVM Wintel/Lintel Rapid virtualization adoption Modular Systems Web Infrastructure File & Print Collaboration VMware, Microsoft, Server Virtualization, XEN IBM Director, IBM Tivoli Assess, Design, Build, Manage Storage Virtualization Storage Consolidation Scale Out Network Attached Storage 13 13

14 Plus, IBM can help with financing, so that you can make needed investments Actions to take: How IBM Global Financing can help: Help with Financing Economic Uncertainty? IBM funds IT. Don't let the economic downturn and dwindling credit options stop clients from getting the capital they still need to operate and improve their businesses. While many lenders have drastically curtailed credit availability, IBM Global Financing remains well positioned to support clients' technology investment needs and help them mitigate financial risk

15 Key trends that enable meaningful change Our world is becoming INSTRUMENTED Our world is becoming INTERCONNECTED Virtually all things, processes and ways of working are becoming INTELLIGENT 85% idle In distributed computing environments, up to 85% of computing capacity sits idle. 70 per $1 70% on average is spent on maintaining current IT infrastructures versus adding new capabilities. 33% 33% of consumers notified of a security breach will terminate their relationship with the company they perceive as responsible

16 Dynamic Infrastructure: Is highly optimized to achieve more with less. CLOUD COMPUTING VIRTUALIZATION + ENERGY + + STANDARDIZATION EFFICIENCY AUTOMATION = Reduced Cost leveraging virtualization, energy efficiency, standardization and automation to free up operational budget for new investment

17 A dynamic infrastructure is a journey these interrelated initiatives can provide the DNA needed to thrive in a smarter planet.

18 18 18

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