© 2013 IBM Corporation

The IT infrastructure that enables a Smarter Planet

Sebastian KrauseVice President, Global Storage SalesSystems & Technology Group

© 2013 IBM Corporation

On a smarter planet, there are no clear boundaries of IT

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“All clients are experiencing the

phenomena of what we call ‘front

office transformation’— social media,

devices, mobility– all reshaping the

way they want to engage their

customers, and how they capitalize

on big data and analytics.”

Ginni RomettyChairman, President and CEO

IBM

© 2013 IBM Corporation

The world is changing. Is your infrastructure ready?

70% of IT budget is devoted to operations and maintenance1

The time is now to,

Leverage cloud to speed time to market and improve efficiency

Unlock the power of big data to deliver more actionable insight

Secure critical information to protect and reduce risk

1 IDC, Game Changing Virtual Technology: Major Shifts and Innovations that will Forever Change your IT Business2 Forrester, BT 2020: To Thrive In The Empowered Era, You’ll Need Software, Software Everywhere, Phil Murphy, January 30, 2012.3 IDC, IDC Predictions 2012: Competing for 2020, Doc #231720, December 2011, 4 2011 Cost of Data Breach Study: United States, Ponemon Institute LLC, March 2012.

Connected devices will surge to 22 billion by 20202, with digital content rocketing to 8 zettabytesby 2015 (90% unstructured)3

$5.5 million is the average total organizational cost of a data breach4

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© 2013 IBM Corporation

The rapid adoption of cloud computing

Five mega-trends are accelerating the new era of IT

Increased focus on security

Consolidation and integration of IT infrastructure

Emergence of social and mobile

The rapid adoption of cloud computing

Business advantages created through data and analytics

Increased focus on security

Emergence of social and mobile

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© 2013 IBM Corporation

New workloads are emerging: data centric and very dynamic

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Led by the Front Office Big Data Led by the Back Office

© 2013 IBM Corporation6

Smarter Computing is the IT infrastructure that powers a Smarter Planet.

Cloud Ready

Data Ready

Security Ready

© 2013 IBM Corporation

This new era creates challenges for business leaders and CIOs

IBM Smarter Computing solves challenges

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Challenges to be solved...

Only 1 in 5 businesses can allocate the majority of IT spending on innovation

Shift investment from IT maintenance to innovation and new services?

48% increase in digital content created from 2011 to 2012

Gain insight from data and use it for competitive advantage?

60,000 daily IT infrastructure attacks on average

Secure information that is critical to your business and your customers?

© 2013 IBM Corporation

This new era creates value for business leaders and CIOs

IBM Smarter Computing delivers value

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60% of CIOs ranked cloud computing as high priority in their plans

83% of CIOs ranked business analytics as high priority in their plans

71% of CIOs identified security as the top concern with adopting mobility

Improve efficiency and speed time to market by managing IT as a cloud

Deliver more actionable insights by unlocking the value of data

Reduce risk and protect by providing security of critical information

Cloud Ready

Data Ready

Security Ready

IBM Smarter Computing will:.

© 2013 IBM Corporation

A comprehensive portfolio of systems to uniquely address your evolving needs

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Smarter

Computing:

Tomorrow

Ready

System zSecure cloud

for dataPower Systems

Engine for faster insights PureSystems

Integrated expertise for improved economics

System xRedefining

x86 innovation

IBM Software

and Services Smarter Storage™Smarter solutions

for big data and cloud© 2013 IBM Corporation

© 2013 IBM Corporation

IBM Smarter Storage: solutions for big data and cloud

Manage cost and capacity growth, improve performance and productivity,

increase information access and improve ROI:

•Efficiency: maximize storage utilization, simplify storage management

•Performance Optimization: automatically place data on the right storage tier

•Agility: manage all data as a single storage pool; automatic self-service provisioning

Innovation and IT value will be derived from the exploitation of data

IT must be simple, adaptable and optimized

Open collaboration will enable integration, accelerate innovation

IBM Smarter Computing solutions simplify and transform businesses

through integration and optimization

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© 2013 IBM Corporation

Instantaneous access and

management of an

exponential volume of data

of all types

Instantaneous access and

management of an

exponential volume of data

of all types

IBM Smarter Storage™ - Building the Foundation

Innovation and IT value will be derived from

the exploitation of data

Innovation and IT value will be derived from

the exploitation of data

� IBM FlashSystems

flash optimization, economic value

� Real-time Compression

for higher utilization, cost containment and superior elasticity

� EasyTier™ and SAE

for smart data & workload placement

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© 2013 IBM Corporation

Unlimited flexibility and

scalability through

abstraction of resources

Unlimited flexibility and

scalability through

abstraction of resources

IBM Smarter Storage™ - Building the Foundation

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IT must be simple, adaptable and optimizedIT must be simple, adaptable and optimized

� Virtual Storage Center

for advanced virtualization and efficient utilization

� SmartCloud

for enterprise-class clouds

� FlexSystem Manager

for provisioning, orchestration and management

© 2013 IBM Corporation

Long-term investment

protection enabled by

choice and vibrant open,

multi-vendor ecosystem

Long-term investment

protection enabled by

choice and vibrant open,

multi-vendor ecosystem

IBM Smarter Storage™ - Building the Foundation

Open collaboration will enable integration,

accelerate innovation

Open collaboration will enable integration,

accelerate innovation

� OpenStack

for open source cloud

� Strong ISV Support

infrastructure and industry applications

� Simplified Interoperability

best-of-breed heterogeneous virtualization

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© 2013 IBM Corporation

The Journey to Smarter Storage™ - Smart Steps

300% performance improvement

No application changes

Improved server utilization

…5TB in 3.5 inches of rack

space vs.1,300 disk drives

providing 400K IOPs,

less than 1/10th the cost…

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© 2013 IBM Corporation

30% higher utilization

Single management interface

Transparent migration

Lower TCO

“We’ve gone from 35% to 82% utilization. Economically,

we’ve gotten some killer gains from this… our storage

maintenance cost reduction year-over-year is 60%.”

Flash

Flash

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© 2013 IBM Corporation16

>50% smaller data footprint

Improved performance

Decelerated data growthFlash

3.5X increase in available storage capacity and 70%

savings in cost-per-terabyte

Flash

© 2013 IBM Corporation17

Tipping Point: All Flash

38% lower software cost, fewer

cores, lower maintenance database,

infrastructure SW…

50% higher storage utilization

Simplified management

17% fewer Servers. Fewer cores,

fewer network connections, lower

maintenance

74% lower environmental cost

35% lower

operational expense

© 2013 IBM CorporationAll claims based on internal estimates from IBM.

IBM’s own Smarter Computing journey

18It Could be Yours too!

© 2013 IBM Corporation19