IBM Software Group

®

Business Integration from IBM

IBM Software Group

© 2003 IBM Corporation

IBM Software Group

Integration Market Drivers

Economic volatility and globalization Business responsiveness Business process reengineering Supply chain optimization

Increasing consolidation across industries driven by: Low interest rates Increasing valuations Improving economy

Increasing regulations and industry standards Sarbanes-Oxley, Basel II Global Data Sync, RosettaNet, SWIFT HIPAA, HL7/CCOW

“In 2004, the top emerging areas in which organizations plan to invest are enterprise application integration and wireless technology…”

“Retail industry could save $40B/year by eliminating supply chain

information errors.”

“According to a recent study by Gartner and the SIA, a staggering 42% of transactions are still paper based.”

A.T. KearneyThe eRed Zone, Oct 2002

The IT Spending Report (2003-2004)AMR Research, August 2003

Study Shows Industry Making Efforts Toward STO Implementation, Gartner G2, July 03

IBM Software Group

Info

rmat

ion

Tec

hn

olo

gy

Bu

sin

ess

Pro

cess

es Customer Relationship Management

EnterpriseResource

Management

Product Lifecycle

ManagementProcurement

Value Chain

Management

Bridging the gap between business transformation and IT

Horizontal Integration is the New Challenge

Customer Connections Internal Systems Supplier Networks

IBM Software Group

An on demand business is an enterprise

whose business processes—integrated

end-to-end across the company and with

key partners, suppliers and customers—can

respond with speed to any customer

demand, market opportunity or external

threat.

On Demand Business – The “Why”

IBM Software Group

Flexible Financial & Delivery Options

Start with The Bigger Picture—Business and IT

Where you start depends on YOUR organization’s priorities.

BusinessTransformation

On DemandOperating

Environment

Business P

rocesses

Create strategic advantage through differentiation and productivity

Integrate partners to increase effectiveness and flexibility

Horizontally integrated Built to change

Leverages existing assets

Enables integration Infrastructure

design matches business design Modular Built for change Standards-based

IBM Software Group

Access

Processes boundedby functions

Integration is Key to On Demand

An enterprise whose business processes are: Dynamically responsive to any customer demand, market opportunity

or external threat

Integrated end-to-end across the company

Integrated across industry value nets: partners, suppliers and customers

Point-to-point Reactive Proactive

Integration

A B C

Processes extend beyond functions

On DemandBusiness-led

processes extend to value nets

A B CA B C

Develop services and products

Provide financial management

Manage supply and logistics

IBM Software Group

Benefits of Integration

Business challenges Benefits of integration

Provide customized and consistent business information Improve customer service

Automate, integrate and coordinate operations end-to-end

Reduce cost and improve responsiveness

Integrate and optimize the use of people and their tools in processes Enhance Productivity

Reduce the cost and time of building and integrating new and existing applications

Extend the value of applications

Streamline application upgrades Minimize cycle-time and costs

Transform IT from inhibitor to enabler Allow focus on core competencies

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Scope of Integration

The efficient and flexible combination of resources to optimize operations across and

beyond the enterprise

IBM Software Group

Modelbusiness functions and processes

Transform applications, processes and data

Integrateislands of applications, processes and information

Interactwith resources anytime and anywhere

Manageperformance against business objectives

Accelerate implementation of intelligent processes

Business Integration Capabilities from IBM

IBM Software Group

Service Oriented Architecture (SOA) enablement

Simple, integrated development Common tools platform Re-use and unification of assets

Secure and scalable deployment Common and flexible

deployment environment Flexible management and

security infrastructure

Standards leadership Interoperability Investment protection Freedom of choice

Proven experience Augmented with best practices Improved time to value Risk mitigation

Business Integration Qualities from IBM

IBM Software Group

Enterprise Service Bus

Enterprise applications Enterprise data

Data Access ServicesApplication Access Services

Services to Solve Complex Business Requirements

Monitoring Services

ProcessServices

Application Services

Information Services

Model, design, development, test tools

Common Runtime Infrastructure

Community Integration Services

User Interaction Services

IBM Business Integration Reference Architecture

IBM Software Group

Enterprise applications Enterprise data

Data Access ServicesApplication Access Services

IBM Software Offerings

Monitoring Services

Model, design, development, test tools

Common Runtime Infrastructure

WebSphere BI Modeler

WebSphere BI Monitor

Web Services Gateway WebSphere BI Event/Message BrokerWebSphere MQ

WebSphere BI Adapters DB2 Information Integrator Classic

WebSphere Studio

DB2 Information Integrator

WebSphere Business

Integration Server

WebSphere Business

Integration Connect

WebSphere Application Server

Enterprise Service Bus

ProcessServices

Community Integration Services

Application Services

Information Services

WebSphere Portal Server

User Interaction Services

WebSphere Commerce

IBM Business Integration Reference Architecture

IBM Software Group

Why IBM?

IBM Software Group

2002 Share* 2001-02 Growth%

IBM 23.3% 17.5%

BEA Systems 17.3% 9.6%

Oracle Corp. 9.5% 8.0%

Tibco Inc. 4.9% -19.4%

webMethods 4.3% 6.3%

Sources: • IDC, “Application Deployment Platform Software Market, 2000-2002, with Leading Suppliers” June 2003 , Dennis Byron, Vice President, Business Process and Deployment Software Research • Gartner First Take "IBM Has Top Share in All Application Integration, Middleware Markets", J. Correia, Y. Natis, M. Pezzini, R. Schulte, 7 May 2003.

* Based on license revenue and license-related service fees

IBM "continued its long time lead of this market,“ IDC says (June 2003)

Application Deployment Platform Software Market

Application ServersIntegration Broker Suites

PortalsMessage-Oriented Middleware

Application Platform Suites Composite MarketTransaction Processing Monitors

Total Market

21

N/A1211

2131211

1111111

2000 2001 2002Worldwide IBM Market Share Position Based on New License Revenue

“IBM Has Top Share in All Application Integration Middleware Markets” Gartner Dataquest, May 2003

2000 2001 200219990

100

200

300

Ap

plic

atio

n In

teg

rati

on

Lic

ense

Rev

enu

e

IBM

TibcoWebMethods

SeeBeyondMercatorVitria

2003** Estimate based on 1H03 actual growth rates

The Gap Widens

Source: Wintergreen Research

Leading industry analysts recognize IBM’s market share leadership across the core integration infrastructure components

Market Leadership

IBM Software Group

Open Standards Leadership

1998 / 1999Java, XML and ebXML

Co-founder and lead architect for RosettaNet

Author of XML4J Chair OMG XML

Metadata Interch. Format

Co-author W3C Document Object Model

FounderXML.org Elected to Board of

Directors in OASIS

2000Web Services

and UDDI Co-author of

SOAP 1.1 and submission to W3C

Cofounder of UDDI.org and author of original UDDI specification

Co-author of WSDL

IBM contributes SOAP4J to Apache

2001Web Services

and Tools Led submission of

WSDL to the W3C Co-chaired W3

Web Services Workshop

Founder of Eclipse.org

Co-author of W3C XML Schema standard

Chair of Web Services Interactive Applications TC

First integrated private UDDI directory

2002Web Services and Security

Founder and chair, Web Services Interoperability Organization

Co-author of web services bus process specification (BPEL, WS-TX, WS-TC)

Co-author for Web Services Security roadmap and specification

Over 160 business integration technology

patents

2003Web Services and Security

Submission of BPEL to OASIS Co-chair WSBPELTC in OASIS Submission of Common Base

Events to WSDM TC in OASIS Submission of WS-Manageability to

WSDM TC in OASIS Co-authored and published EPAL

specification to WC3 Co-chair WSDM TC in OASIS More than 1,000 developers

devoted to XML and more than 1,500 focused on Linux. Over 200 software products running on Linux

Led workgroup responsible for finalization of SOAP 1.2

First Web Services Gateway

IBM Software Group

Challengers Leaders

VisionariesNiche Players

Ability toexecute

Application Integration Vendor (as of 5/2003)Magic Quadrant for Application Integration Vendors, 2Q03, J. Thompson, F. Kenney, B. Lheureux, Y. Natis, M. Pezzini, R. Schulte, J. Sinur, J. Correia, D. McCoy, 5 May 2003

Enterprise Application Server (as of 5/2003)Enterprise Application Server Magic Quadrant, 2Q03, Yefim V. Natis, Massimo Pezzini, 6 May 2003

Horizontal Portal Product (as of 3/2003)Management Update: Gartner’s Horizontal Portal Product Magic Quadrant for 2003, Gene Phifer, Ray Valdes, David Gootzit, 9 April 2003

Web Services Major Vendor Influence (as of 9/2003)Magic Quadrant for WS Major Vendor Influence, 3Q03, David Smith, Charles Abrams, 2 Sept 2003

Programmatic Integration Server (as of 12/2003)Magic Quadrant for Programmatic Integration Servers, 2003, Dale Vecchio, 17 December 2003

Presentation Integration Server (as of 3/2003)Noninvasive Legacy Web Enablement Is Still Viable, Dale Vecchio, 20 March 2003

The Magic Quadrant is copyrighted 2003 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Completeness of vision

IBM in Leaders Quadrant in these Magic Quadrants

Gartner Magic Quadrants: IBM in the Leaders Quadrant

IBM rated “Positive” in these MarketScopes

Sell-Side Electronic Commerce (as of 1/2004)MarketScope: Sell-Side Electronic Commerce, 1H04, A. Sarner, R. DeSisto, 22 Jan 2004

IBM Software Group