Building the IBM Cloud Ecosystem: Collaboration and Coherence for Success

1. January 2014 Cloud Governance Board Sandy Carter, GM Ecosystem DevelopmentJanuary 2014

2. Agenda Recap of the Cloud Council 2014 Cloud Ecosystem Priorities Integration with Brand teams IBM Confidential 2

3. Let’s build One IBM Cloud Ecosystem What help do we need? Evaluating IBM's position in the market, what is being considered internally and working together for a cohesive plan Driving IBM coherence and consistency around the ecosystem, including the Business Model and GTM Driving focus on the ecosystem experience New Partner Types (Clients, etc.) Academia Influencers (Ad Agencies, Associations, etc.) Start-ups One IBM Model Professional Developers (ISVs & SIs) Business Partners (VARs/VADs) Citizen & Crowd Developers Born on Cloud Partners (Cloud Brokers, MSPs, etc) IBM Confidential 3

4. Agenda Recap of the Cloud Council 2014 Cloud Ecosystem Priorities Integration with Brand teams IBM Confidential 4

5. Softwareas a Service Platformas a Service Infrastructureas a Service Coverage Model Vision for the Cloud Ecosystem Digital Coverage Air Cover: Category Marketing • Self Service Engine • One stop shop • Personalization • Social Community • Ecosystem member connection Cloud Ecosystem Pooled Coverage IBM Marketplace • Influence Revenue • # of customer wins • Platform share • Center of Excellence • Proactive out reach Face-to-Face Coverage • Named Accounts • Top priority Cloud Partners by industry • Joint GTM 5 IBM Confidential

6. Developers acquisition strategy Reach developers we historically ignored • Digital/social media • Demand generation campaigns • Events • Markting assets • Enablements • Digital coverage: One stop shop Self Service Engine • Pooled coverage: Proactive out reach • Face to face coverage • Engage the millenials via hot developer communities • Entice with newly designed simple dWorks • Excite with new developer unconferences • Enlist with… IBM Confidential

7. Air Cover: Category Marketing for the Cloud Ecosystem Events Digital/Social Media Demand Generation Campaigns Enablement Marketing Assets • Testimonial videos • Case studies • Customizable Demos • Research & analysis for ecosystem • Campaign templates • Sandbox to share solutions with clients • Ecosystem Days at industry/user conferences • Hack-a-thons • Code Throw downs • Start-up threads at IBM events • Sponsorships • Ecosystem Meet-ups • Dedicated recruiting campaigns • Online client events • Co and joint marketing funding • Marketplace marketing highlighting solutions and offerings • Application showcase profiling solution/offering value • Web pages/content • Trade Press (testimonials) • Self-assessment tool • Proposal templates & custom collateral • Product training • Technical & testing support • Ecosystem member profiles • Communities for sharing and problem resolution • Dedicated ecosystem webpage • Trial Offerings Blue font: Thinking out of the box 7 IBM Confidential

8. Digital coverage for Volume Content Providers Drawing them in … get them on IBM cloud … making it sticky! Watson Hackathons Sponsorships (SxSW) Contests $$ Throw-downs Meet-ups IIC’s come to you Revenue $$ + Pay as you sell model The more you sell, the more you gain (co-marketing dollars, etc) Connect to Win at IICs (Network with IBM Ecosystem) Local marketing events at IICs Help finding / navigating clients Continuing tech support Cloud marketing air cover – making / extending markets Best Self Service experience Qualify Providers for Pooled Coverage GEP (startups) SSE community jams Heard of IBM, but thinks IBM won’t care about them IIC classes and tech support SSE Education Online chat with the experts Academic Initiative Skills Never heard of IBM cloud Using someone else’s cloud Word of mouth Social media User Groups ‘True Price of Free’ Events Competitive pricing, porting education, porting tech support, free porting toolkit Specific need (e.g., security, low cost, etc.) IIC live demo, Proof of Technology, or benchmarking IBM Champion webinar Conferences Specialty user groups

9. Pooled and Face to face coverage for Value Content Providers Lead with Business Value… get them on IBM cloud … making it sticky! • Invite Partner to alliance to win planning session with IBM sales • IBM and Partner hold regular sales cadence • Help explain additional business opportunity of cloud solutions to Partner's board • IBM Cloud Architects from local IIC helps ISV create cloud POC • Named ISVs prioritized by Industry, by IMT • Sales Leader meets with Partner CEO, invites IBM PEP Executive Traditional ISVs • Jointly develop value proposition for cloud which includes growth initiatives • Jointly develop and agree to their cloud business model • Work with Partner CMO to develop joint GTM plan • Offer flexible agreement and win/win revenue share model (pay as you sell) • Architecture workshop, sandbox and resources to help Partner develop solution on Cloud OE and SoftLayer • Help Partner to integrate IBM SaaS functions and extensions, i.e. social, mobile and analytics • Partner publishes their APIs on IBM Marketplace to make money fast Exceptional Experience: • Make introductions to other parts of the Ecosystem (exp. SI, resellers, students, clients) • IBM Cloud Engineer helps Partner to navigate clients • Help to promote – schedule account manager introduction session, local events • Help Partner to leverage Watson, IoT, Smarter Cities • Help Partner to leverage our Marketing machine– partnering in great strides • Shepherd Partner thru any questions or hurdles • Select top content providers • IBM Cloud Advisor and BP Rep engages C-level business exec to discuss how IBM & their firm can make money through developing and delivering joint cloud solutions Named Born on the Cloud • Request VCs to identify firms that meet criteria • VC arranges meeting with C-level business exec and IBM Solution Exec and BP Rep • IBM convinces firm of IBM’s industry knowledge and strength in their category. Category specific Born on the Cloud

10. Third-Party Content Providers: Developers Create Enchantment – 4E’s led by dWorks • 2014 Targets: • Double dW Cloud zone traffic • 10K Cloud OE apps • 10K Jazz Hub users Focused Github and Stack Overflow engagement that drive developers back to IBM cloud and key content in dW • Promote adoption for new SaaS and PaaS • Double cloud trials, including Watson, Cloud OE etc. • Rewards system for Champions and user generated content • At dev@Pulse, feature TED-like talks every 30 mins, on Watson, Gaming, Mobile etc • Hackathons with live Softlayer/OE deployment Speaker include: Ed Fries (creator xbox), Paul Irish (creator HTML5)… 10 IBM Confidential

11. Marketplace Experience – adding 3rd party contents, 1H 2014 Recruit Cloud OE Provides runtime Startups ISVs Enable Certify AppDirect For listing Billing and Transactions Indi Developers Self register • Action items • [EcoD] recruit startups, ISVs • [dW] provide app self registration workflow • [EcoD] creates app registration approval workflow • [EcoD] help startup/ISVs to enable on IBM Cloud OE • [dW] provide free cloud environment for enablement • [brands] self enablement/training material • [PaaS] provides OE runtime • [PaaS] creates integration with AppDirect • [PaaS] supplys built-in metering, billing and transaction mgmt • [EcoD] review and test app on Cloud OE

12. Marketplace extension – white label for 3rd party, 2H 2014 APIs from IBM and IBM Ecosystem Members Cloud OE Provides runtime Solution Developer AppDirect For listing • Action items • [PaaS] Complete Massive based Cloud service broker • [EcoD] new marketplace registration and approval • [EcoD] marketplace white label technical support Marketplace with pre-populated APIs from IBM and IBM Ecosystem Members Transactions Marketplace experience Marketplace Developer

13. Summary of Key 2014 Actions and Owners To Execute Cloud Ecosystem Strategy 13 IBM Confidential

14. Agenda Recap of the Cloud Council 2014 Cloud Ecosystem Priorities (what will EcoD do) Integration with Brand teams (what will you do) IBM Confidential 14

15. Softwareas a Service Platformas a Service Infrastructureas a Service How do we build the One Cloud Ecosystem? • Nancy Pearson • Milan Patel • Sandy Carter • Luis Rodrigus • Gina Poole Marketing all cloud services and recruit developers Prioritize Top Content Providers by industry, recruit/enable/GTM onto IBM cloud portfolio Drive IBM Cloud to academia (AI), developers (dW), and startups (GEP) 1 Across Social, Mobile, Commerce, Big Data/Analytics ecosystems: 1H: With existing cloud partners (e.g. Social / SugarCRM) build strong GTM plans 2H: As CloudOE rebased IBM SaaS offerings available, port partners • Craig Hayman • ?? • Danny Sabbah • Damion Heredia Cloud OE Recruit/enable/GTM content providers into OE beta (1H) and then OE (2H) • Jim Comfort • Ed Bottini SoftLayer: Deliver skills education sessions & enablements to jointly targeted content providers SDE: what is the role of STG?? • Marc Dupaquier • Sam Werner • Jane Munn 2 Participate in 3rd party marketplaces Build IBM’s marketplace • Danny Sabbah • Jim Colson • Sandy Carter • Luis Rodrigus 3 Establish a ONE IBM Cloud Council IBM Confidential 15

16. Create the industry’s best ecosystem: SoftLayer 2014 • 2014 objectives: • Increase SoftLayer channel revenue • Grow SoftLayer WW Synergy revenue by $2.3M for EcoD Content Providers Market Awareness Go-to-Market • Dramatically increase partner success stories with a self-service program • Create partner marketing programs to Increase demand for their solutions • Recruit and enable content providers on IBM Cloud Marketplace • Create awareness thru community Jams, hack-a-thons, code throw downs • Innovation Center events • Expand influence to market analysts Drive incremental SoftLayer Ecosystem revenue Recruitment Enablement • Target top solution content providers with tiered coverage • Expand Cataylst startup program • Maintain awareness at key events (Pulse, MSP summits) • Digital self service engine for developers and academia • 1Q14 SL sales training programs for partners and EcoD teams; education, assessments and certification.

17. IaaS: Ed Bottini, Tom Luckew Project Goals: Provide IO support for WW cross Channels target of $23M Softlayer Synergy revenue, $2.3M thru EcoD. Conduct 100 education sessions for sellers and 300 enablement sessions for EcoD partners across 41 IICs OVERALL STATUS On Target Results: Risk / Issue: WW IaaS architect support from GTS Clear OI to OO linkage for opportunity visibility and tracking Strengthen SL partner programs Mitigation:

18. PaaS – elements Cloud OE “SDK like” package for Mobile, aligned with OE plan • ISVs, Start-ups, Developers: “Sandbox” • Virtual gamification based training for our new services – how to get started, aligned w/ PULSE and dWorks • Community Development • Self-service model • Sync with Category Marketing • Social Media – Launch Day ISV testimonial video(s) to drive visibility, demand gen and recruiting • Enablement – pre-launch briefings, Ecosystem exchange webcasts • Innovation Centers with ability to demo/showcase services and drive skills • 6 beta solution/offerings Storification and viral SnapChat, YouTube, Social Networking • App contest announced to be held at SXSW – $50K prize, aligned w/PULSE, dW (contests also for academia + IBMers) 18 IBM Confidential

19. PaaS: Damion, Ellen Warms Project Goals: recruit 20 startups to the beta and start 6 in the first wave 20 completed (enabled/GTM) by end of 2Q2014 OVERALL STATUS On Target Results: recruited 10 startups in first wave - these are exciting, new technology companies providing cloud solutions aligned with Smarter Commerce, Big Data and Analytics, Mobile, Security and Healthcare Risk / Issue: Mitigation:

20. Marketing – Milan, Yvette Project Goals: OVERALL STATUS On Target Results: Risk / Issue: Mitigation:

21. Marketplace: ?? Project Goals: OVERALL STATUS On Target Results: Risk / Issue: Mitigation:

22. Backup IBM Confidential

23. What Attracts Content Providers? Ability to make money, flexible business model Scale – large, broad ecosystem to work with Strong evidence of continuing ecosystem investment (marketing air cover, top rate tooling, strong GTM program, etc) Easily consumed/integrated technology 23 IBM Confidential

24. What Retains Content Providers – Stickiness Help navigating the client Intros / Connections to key cloud vendor ecosystem members Help to promote – partner managers, local events, etc. Self Service is SUPER easy Shepherding through any question or hurdle Marketing Machine – Partnering in great strides Technical assistance – e.g. porting/integrating support 24 IBM Confidential

25. Summary: What’s New? 1 One IBM Approach for the Cloud Ecosystem • Cloud Ecosystem Council • All IBM teams aligned to a single strategy and goals Focus on new 3rd party Content Providers • Mobile app developers on cloud • Traditional ISVs who are trying to go hybrid • Design firms, Ad Agencies New coverage model for Content Providers • Digital Coverage through Self Service Engine • Pooled Coverage through CoE • Face-to-Face Coverage for prioritized accounts Scale through Programmatic Model • Double down on academia and startups • Hackathon, Code-Throw-Down • Smart Camps, IIC Connect to Wins 4 5 Measure things that ‘matter’ • Influenced Revenue, # of customer wins, Platform share • # of Content Providers including Startups 6 IBM Marketplace • Direct marketplace for IBM and certified 3rd party content providers • White label marketplace, pre-populated with content from IBM & our best providers 25 IBM Confidential

26. Coverage model: 3rd Party Content Providers Digital Coverage *New Approach* SELF-SERVICE Pooled Coverage *New Model* CAPTAIN’S CHOICE F2F Coverage TOP PRIORITY 26 IBM Confidential