SoftLayer Cloud Services Europe Channel Sales Conference Call

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1 September 2013 SoftLayer Cloud Services Europe Channel Sales Conference Call 2013 IBM Corporation

2 Europe Channel Sales Conference Call Agenda SoftLayer value for cloud computing at-a-glance SoftLayer Introduction Company overview Offering capabilities Offering positioning within IBM portfolio Competitive positioning SoftLayer Business Partner Program Overview and Value Proposition Seller and BP Enablement Channel Sales Incentive Channels Call to Action IBM Corporation

3 Cloud computing can help business and IT create and deliver value in fundamentally new ways Business value Enable new business models and client relationships Deliver IT without boundaries Improve the agility and dexterity of business Speed delivery of product and service innovation Cut IT expense and complexity IT value Accelerate time to market Innovate business models IBM Corporation

4 Organizations often want help managing their cloud environments, but there are three significant challenges to address Cloud is positioned as the answer to all IT woes and it's not Determine right applications to right platform One-size-fits-all deployment models Public/private/hybrid cloud mix often needed Loss of control Management controls and governance critical IBM Corporation

5 Share of Responses Share of Responses Share of Responses Share of Responses SoftLayer provides the self service that is a key cloud expectation with rapid deployment both in the time and number of steps to self-configure 100% 80% 60% Maximum Time to Self Configure a Cloud Service 1 75% expect < 60 minutes 100% All Respons es 80% 1,000-4,999 60% Number of Steps to Self-Configure a Cloud Service 1 Two thirds want <10 steps All Resp 1,000 40% 20% 0% < 5 Minutes <15 Minutes < 60 Minutes <4 Hours More than 4 Hours 40% 5,000-9, % 10,000+ 0% 5 or Less More than 20 Number of Steps 5,000 9,999 10,00 100% 80% 60% 40% 20% 0% < 5 Minutes All Responses 1,000-4,999 5, ,000+ <15 Minutes By Industry SoftLayer is known for it s best client self-service experience in the industry Public instances provisioned within 5-15 minutes Dedicated servers within 2-4 hours. < 60 Minutes IBM Corporation <4 Hours More than 4 Hours Financial Services 100% Manufacturing 80% Healthcare 60% Professional Svc. 40% Telecommunic ations and Media Public Sector 20% 0% 1. IDC, 2012 U.S. Buyer Requirements for Outsourced Cloud Services Part 2:Quality of Services and Financial Drivers, May 2012 By Industry SoftLayer guides clients through a 4-step process to configure their desired system, select additional/optional services, setup billing, and receive confirmation. 5 or Less More than 20 Number of Steps Fina Serv Man Hea Prof Svc Tele atio Med Pub

6 Superior Performance, Flexibility, and Control Delivering Superior Value Some Example Comments on SoftLayer Most of the tests were two to three times faster than even the better commodity machines from Jovent Cloud and Microsoft Windows Azure Tomcat test was almost 10 times faster than Amazon's EC2 small instance and about 30 to 40 percent faster than Amazon's high-cpu model Info World 3/14/13: IBM Corporation

7 SoftLayer has been a premier hoster with robust, reliable capabilities to consistently support internet scale applications 1 Key hosting requirements Platform availability Technologies Innovation Flexibility & Agility Price Control Community SoftLayer Advantages Enterprise-class platform engineered for five 9 s+ levels of availability. Support for broad range of architectures OS, virtualization, bare metal, software, storage, etc. on fully integrated platform Culture of innovation with track record of first to market on new tech On-demand provisioning, hourly pricing & services by the drink Consumptive billing with no minimums or long term contracts. Accessible entry points with easy scale-up Full-featured API and portal, high levels of transparency, self-service empowerment Deeply embedded within community. Army of customer evangelists, high net promoter scores and incredibly strong word-of-mouth Top 100,000 Sites By Hosting Provider 1. Source: Hostcabi.net IBM Corporation

8 SoftLayer provides world-wide services with a standardized modular infrastructure; triple network architecture and powerful automation Flexible, Automated Infrastructure Data Center & Pods Standardized, modular hardware configurations Globally consistent service portfolio Triple Network Public network for cloud services VPN for secure management Private network for communications and shared services IMS (Automation Software) Bare metal provisioning Integrated BSS/OSS Comprehensive network management World-Wide Services 13 Data Centers with 100K Servers and 22M Domains in the US, Amsterdam and Singapore 19 Network Points of Presence in 5 countries to facilitate response times 2013 Projected Revenue: $397M Employees: ,000 customers * Sold in US English, US $ Pricing IBM Corporation

9 SoftLayer supports and extends IBM s cloud strategy Workload optimized, deployment choices, integrated services management Bare-Metal Servers, Virtualized Public Cloud Instances, Private Cloud Deployments Provides the best fit optimized for a range of cloud workloads Integrated Platform Across Multiple Architectures Highly flexible with support for public, private and hybrid deployments Common Management System with APIs Customer control and increased visibility with a unified management system Common User Interface and APIs Bare Metal Servers Public Cloud Instances Private Clouds Proprietary Infrastructure Management System facilitates automation & orchestration Private network allows seamless communication across distributed environments x86 Pod Infrastructure x86 Pod Infrastructure x86 Pod Infrastructure IBM Corporation

10 Three key differentiators to emphasize when comparing SoftLayer with AWS and Rackspace SOFTLAYER DIFFERENTIATOR RATING POINTS TO EMPHASIZE Workload I/O intensity Low intensity workloads High intensity workloads SoftLayer s architecture outperforms by >50% equivalent AWS instances for high I/O workloads Control (APIs, hardware / network configurability) Low degree of control and customization High degree of control and customization SoftLayer offers hundreds of hardware configurations vs. 14 for AWS ~2,000 APIs for SoftLayer vs. ~60 for AWS and none for RAX Integrated platform of multiple architectures Single platform Seamless integration SL has unified integration & control panel for multiple cloud architectures RAX requires paid bridge, different control interfaces AWS RAX SL IBM Corporation

11 Expanding Portfolio, Delivering Flexibility and Choice SoftLayer Bare metal to virtualized to address practically all applications Private or Public, Dedicated or Shared deployment options Robust, reliable performance and uptime for demanding born-on-the-cloud applications Managed Cloud Services Secure and scalable cloud managed services platform IBM SmartCloud Enterprise+ Fully managed ITIL compliant services delivered by IBM helps drive business value, competitive advantage, peace of mind Runs production workloads, including SAP and Oracle applications Hardware, hypervisor and isolation elements included DevOps IBM SmartCloud Application Services Agile platform as a service with support for JAVA, PHP, and Mobile applications Suitable for wide range of enterprise applications IBM Corporation

12 Partners are integral to the SoftLayer growth strategy Channel / Ecosystem Strategy SoftLayer channel objectives: Increase % of revenue through the channel Begin to penetrate enterprise markets Expand beyond US$ and English only Encourage qualified partners to join SL s partner program who have: Existing cloud/annuity business Current offerings that utilize IaaS Technical staff supporting cloud services Current projects which require IaaS Specific compensation plan for cloud business Work strategically with SL to recruit full ecosystem Business Partners Target Segments: Mid Market & Enterprise Programs: Hosting reseller, Referral, Strategic, SoftLayer Hosting Resellers SoftLayer with IBM VARs, SIs, ISVs, Service Providers Hosted Ent Private Clouds Dev Ops High Perf Compute E-Commerce / Web Apps Analytics / Big Data / Database Mgmt/ Archive Prod ERP/ Unmanaged Prod IBM Corporation

13 SoftLayer business models for partners Type/ Model Reseller partner Sell through Strategic partner Sell through or Sell - to Referral partner Sell - with Ecosystem partner and/or client Sell to Terms and Margin Opportunity Reduced setup fees Discount from website pricing Customized portal for clients 5 15% discounts Negotiated give to get Typical % discounts Refer accounts of at least $150/mo Earn commissions on all customer payments 10% (yr1), 8% (yr2), 6% (yr3+) commission Standard customer terms Negotiated volume discounts Promos for quick trial and easy on boarding Typical use, value to IBM Business Partner Buy hosting services at a discount, mark them up, and resell them. May or may not leverage SL s brand Ex: hosting resellers, MSPs Higher-revenue partnership opportunities where hosting is usually a component of the partner s overall solution Will usually resell SL services, but may simply be consumers of infrastructure Ex: SIs, MSPs, SaaS providers, ad agencies, SPs With own services are in position to refer new hosting customers to SL Earn monthly commission payments and other benefits Referred customers sign directly with SL Ex: application developers, consultants, web designers Use APIs to build out innovative solutions across public, private and hybrid cloud New capabilities including bare-metal servers to support performance-intensive applications in the areas of mobile, social, gaming, analytics Ex: ISVs, Developers, SIs Summary Value Proposition for Clients and Partners On demand compute with hourly or monthly billing options Common user interface and APIs across a unified platform. Customers and partners can mix and match dedicated, public and private clouds, and manage them from a single control panel Private network provides seamless integration across architectures with low latency Scalable computing with fast provisioning IBM Corporation

14 A partner ecosystem is at the heart of SoftLayer s customer base Software as a Service Mobile & Communications Bump Voxer Instapaper Yelp Social Games and Entertainment Platform as a Service Marketing and Digital Media Hosting & Service Providers Enterprise IBM Corporation

15 SoftLayer Business Partner Support Customer Service Chat / phone support, Tier 1-4 support, ticket resolution, root cause analysis, etc KnowledgeLayer Deep knowledge base on SoftLayer functions, workloads, and how create solutions using its partners Sales In bound sales chat / phone personnel, quote generation, sales engineer support, monthly sales metrics and SLA reports. Catalyst Startup Program Transform great ideas into an enterprise with help from Catalyst, SoftLayer's startup program. Eligible startups receive free hosting, mentoring, and more. Billing Services Development of backend billing site, billing chat / phone support, accounts receivable ownership, credit processing, and other ancillary billing services. Technology Partners Marketplace Discover innovative applications and services that leverage the SoftLayer platform - the companies that build the future every day IBM Corporation

16 What every seller needs to know about SoftLayer Cloud deals start small and grow rapidly Trying to make them large at the start slows them down. Softlayer delivers the best client self-service experience in the industry Clients can go from engaging to on-boarded and working in a few hours. SL sellers often close deals in three chats or less Preserving the SoftLayer sales process and productivity is critical to our overall competitiveness and success in Cloud The goal of IBM field teams is to qualify cloud projects and encourage clients to use SoftLayer.com to obtain service. The goal of IBM Business Partners will also be to engage directly with SoftLayer automation as well, and also by sending clients to SoftLayer.com Partners are essential to the success & strategy of the SoftLayer acquisition talk to your partners about SoftLayer and the programs available cloud is a growing business model for new revenue opportunities IBM and BP Sellers should be confident in sending clients directly to the SoftLayer website IBM Corporation

17 Enablement/Call to Action BPs IBM Business Partners Submit program-related questions or apply for a relationship at Begin enablement immediately at IBM Corporation

18 Thank you Twitter: #mecalde2010 #ibmcloud IBM Corporation

19 SoftLayer Links to SoftLayer YouTube Videos & Demos SoftLayer YouTube Videos SoftLayer Dallas Data Center Tour SoftLayer Amsterdam Data Center Tour Video of SoftLayer Portal Demo Video of SoftLayer Billing Portal Introduction to SoftLayer Managed Hosting Webinar IBM Corporation

20 Next Steps: SoftLayer URL for Partners (MSPs, ISVs, SI s) 1. PREPARE: Review your current Cloud Projects: Planned Workloads General Specifications (ie Svrs, Storage, Network) Timeframe for deployment 2. INQUIRE: Go to the SoftLayer IBM Partners URL: Tell us about your Cloud Project Dedicated Pre-Sales team with hour response Get your questions answered 3. RESULT: Get a quick response on how the SoftLayer Value Prop can accelerate your Cloud Project IBM Corporation

21 W3 Enablement example: how to position SoftLayer vs SCE When to sell SoftLayer X86, self-service, API-based access Competitive platform to AWS and other cloud providers Credit card processing Object storage opportunities under 200TB - consult offering team if over 200TB 8 initial-focus workloads When to sell SCE Sell SCE only where SoftLayer (or SCE+) does not fit Customer requirements for Local currency support (other than US Dollar) Local language support (other than English) IBM DevOps patterns (SCAS), until migrated to SoftLayer Local contracts (Ts&Cs) Customers whose localization requirements are not met by SoftLayer data center locations (for example, Canada or Japan) How to advise existing customers Advantages of moving to SoftLayer Price/performance Breadth of workload delivered through single pane API support for born on the web applications IBM Corporation

22 W3 Enablement example: Workload ISVs / Prod ERP / Unmged Prod Overview WHAT YOU SHOULD THINK ABOUT Develop and run your key business applications business process automation, business management and mission critical production workloads across your organization using our cloud platform with security, high availability and delivery best practices at cloud economies of scale. Enterprise Applications often require a combination of Private cloud and shared cloud and the ability to be deployed with high availability and resiliency. Our hosted infrastructure solutions with enterprise private cloud and managed infrastructure can help solve complex deployment needs spanning private and shared clouds. Continuous monitoring, backup/restore and availability support your high I/O intensive production applications. Rapid provisioning of your dedicated and virtual infrastructure and application stack will enable scaling enterprise applications like SAP and Oracle applications quickly. Automated backend services integrated with legacy environment or our other data centers will ensure redundant and fast network access with improved performance. Cloud based ISVs such as Struq have chosen our infrastructure to deploy to all their clients in a SAAS model. This delivers enterprise grade computing with scaling and cost savings for our clients. Use Cases Enterprise applications such as SAP Enterprise Resource Planning (ERP IDES) Infrastructure can support Dev / Test through rapid provisioning and demo capabilities ISV applications that utilize database services running on a cloud infrastructure Typical Components & Considerations Scenario Provide High availability of production environment Provide enterprise level business continuity Automate backend services Quickly replicate/scale ERP landscapes Distribute redundant, fault tolerant resources Resources to serve high transaction queries SoftLayer Solution Managed Hosting Mass Storage Servers & evault* API FlexImages SoftLayer Private Network Dedicated Application and DB servers Advantage Support mission critical infrastructure with continuous monitoring, data backup and cloud redundancy Build large, fast local storage & automated backup system with encryption arrays Integrate systems directly with SoftLayer infrastructure More efficiently scale/replicate SAP landscapes with Flex Image options Zero config cross-connects and unlimited bandwidth between SoftLayer servers and data centers Provision dedicated servers with high RAM & CPU configurations for robust performance & demanding app requirements Component ERPInstance Server(s) Considerations & Requirements Secure backend network, large Memory, high I/O Provide fast and stable applications Network Upgrades & Global Network Port speed, bandwidth pooling, load balancing, and additional upgrades to increase overall network performance Database Server(s) High CPU, large capacity local storage, backend network, multi data center, VPN Application Server(s) Fast response times, low latency IBM Corporation * - evault is a partner offering provided by Seagate Multi-tenant Firewall Low price access to enterprise grade devices

23 Education roadmaps for channel sellers and BPs * part 1 * Today on W3 enablement community only, coming to PartnerWorld IBM Corporation

24 Education roadmaps for channel sellers and BPs part IBM Corporation

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