WebSphere Software Overview Ed Boulay WW zSeries WebSphere Sales

1. WebSphere SoftwareOverviewEd BoulayWW zSeries WebSphere Sales We MakeITWork for Business

2. Responding More Effectively to Changing Market Conditions is a CEO Imperative “Four out of five CEOs are focusing on revenue growth for the next three years while maintaining a tight control over costs.” • 75% of CEOs place a high or very high priority on the ability to respond rapidly • Only 1 in 10 CEOs believe that their organization has the ability to be very responsive to react to changing market conditions • CEOs recognize the need to establish effective, real-time response capabilities • CEOs are aware of the power of IT and the weaknesses that result from lagging behind Source: IBM’s Global CEO Survey, February 2004

3. Changing Market Conditions Drive On Demand Business Needs: Addressing Top Business and IT Priorities Top business priorities “More than 80% of CEOs see unpredictable market forces as the key inhibitor to growth.” Streamline or optimize business processes Boost worker productivity across company Improve customer service 85% 85% Source: IBM’s Global CEO Survey, February 2004 84% • Economic volatility and globalization • Increasing consolidation across industries • Increasing regulations and industry standards • Technical realities Top IT priorities Application Integration BI/Data warehouse Security 48% 42% 42% Sources: Outlook 2004: Priorities 1Q InformationWeek Research, January 2004;Merrill Lynch CIO Survey Results, September 2004

4. Integratepeople, processes, and information Optimizeapplication infrastructure Extendyour reach Becoming an On Demand Business 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. Technology Infrastructure Align business models and strategic objectives Business and IT processes Business Design

5. Gulfstream Increases Business Agility, Lowers Integration Costs Business Challenge: • Increase agility and responsiveness • Improve time-to-market • Lower total integration costs • Enable common business objects (e.g. customer, aircraft, part, etc.) • Business Benefits: • Projected 26% savings in integration costs using WBI when compared to an alternative broker • Real time, accurate, event driven information about raw materials, manufacturing operations and labor reporting • Better management of the challenges associated with global supply chain from tighter control models around inventory management, procurement, sourcing, and account receivables Solution: • New labor tracking application • WBI; Portal; WAS • Risk Mitigation: • Lab Advocate for one year • Onsite Training • ISSW Jumpstart Services • IBM Architect on call for sounding board advice for three months • IBM Center of Competence advisor for one week • SWG Executive Sponsor

6. People Integration Process Integration Information Integration Application Integration Application Infrastructure WebSphere Enables On Demand Flexibility Through a Set of Integration and Infrastructure Capabilities Accelerators Integrate people, processes and information Optimize application infrastructure Extend your reach

7. Enterprise Portal Mobile Access WebSphere Portal WebSphere Everyplace Offerings People Integration Interact with information, applications and business processes at any time from anywhere Customer Challenges Customer Benefits from WebSphere • Systems and applications users need are not all integrated nor easy to use • Mobile workers do not have access to information and applications they require in the field • Easy interaction with multiple processes and applications from a single access point • Secure mobile access to business applications and information Cut cost of customer service

8. Mobile access for employees • Process and settle claims onsite • Check status and payment information • Sell new coverage Portal • Create new accounts • Modify/update account information • Policy review • Complete detailed claim information • Pay premiums People Integration

9. Portal: A Definition A well-known point of integration for information, applications, and people with business processes and each other, presented in a consistent, integrated and personalized manner.

10. role based personalized integrated security easy navigation single sign-on Business Portals - End User Experience CRM Business Process Workflows Content Management Data Warehouse HR E-Mail Instant Messaging

11. WebSphere Portal - Questions to Ask • Would you find it advantageous to have a single point of access to applications for your users? • Would customized information for each user be a benefit? • Do you think your users would like to be able to select which applications and data they would like to have on their desktop? • Do users need to be able to update multiple applications in the normal course of their day? • Would applications that automatically update the desktop be a benefit?

12. What does WebSphere MQ Everyplace offer? Provides robust connectivity for mobile applications – Overcoming intermittentconnectivity with online-when-available messaging • Designed and built specifically for the mobile environment • Modular and Customizable.... • Broad Platform coverage (100% Java, New C implementation) • Very small device footprint (100 KB) and wire usage • Supports fragile networks and variety of connectivity modes • Security built-in, works with Firewalls • Guaranteed and secure delivery of mobile application messages • Store & Forward queuing, authentication, encryption • Provides real-time transactions or as close as the network will allow • Eases integration with enterprise applications • Proven business integration model • Can leverage event-driven messaging e.g. subscribing to personalised sports results • Basis for business process & workflow automation in mobile environment

13. Selling WebSphere MQ Everyplace . . . Overview • Customer Profile • Customers with applications that need to exchange data and are: • Mission critical (that is, have “transactional” characteristics) • Needed to be accessed by mobile workers • Available at different times (for instance, 24/7 order entry, but nighttime order processing) • Opportunity (average deal of $ 50K) • Most applications involving remote workers in the field do not provide the worker with the information they need at the time it is needed. Significant cost savings can be achieved by linking these workers with the applications and data they need in real time. Customer Pains • Processing delays or errors because data is re-keyed or “file transferred” between applications. • Transactions are lost or duplicated because of network errors. • Processing is interrupted because applications are “temporarily” unavailable or off schedule • Information from mobile workers is not timely • Mobile workers do not have access to the information they need

14. WebSphere MQ Everyplace - Questions to Ask • Do you have a large mobile workforce (e.g. in Utilities, Telco, Insurance, Government)? • Are you experiencing strong competitive pressures? • Do you need to differentiate yourself from your competitors by offering superior customer service? • Would you like to be able to maximize customer-face time ? • Do you need to reduce the cost of providing service? • Is it important for you to maximize utilization of mobile resources? • Would it be an advantage to Increase responsiveness to issues / opportunities?

15. Application Infrastructure Build, deploy, integrate and enhance new and existing applications Customer Challenges Customer Benefits from WebSphere • High turnover and training costs due to antiquated applications • Unable to extend the business logic in legacy applications into new applications being developed • Unable to meet customer and competitive demands on infrastructure performance, scalability, and manageability • Quickly web-enable green-screen applications • Adapt legacy applications for use in new java environments • Deliver operational efficiency and enterprise Quality of Services (QoS) for a mixed-workload infrastructure Extending Legacy Applications into Web Infrastructure Building a Robust, Scalable, Secure, Application Infrastructure Modernizing the User Interface WebSphere Host Access Transformation Services WebSphere Studio Enterprise Dev WebSphere Studio Enterprise Dev WebSphere Application Server

16. Some Reasons to Improve the Application Infrastructure • User Interface • Faster delivery of Solution – need immediate Web interface • Presentation logic not separated from business logic • Don’t want to disturb existing production application • Process • On Demand Business requires speed of response, and that often means combining multiple processes • Application • Source not available • Complex business rules in existing application • Data • Data need to be accessed from multiple applications • Easier access to disparate data sources • Infrastructure • Need to enable additional users, crossing multiple applications • Play the Improve the User Interface Video

18. Customized Transformation

19. HATS Key Benefits • Quickly converts legacy applications to web appearance and browser access without changes to the existing application • Immediate results, ROI • Responsiveness • Cost effectiveness • Lower risk • Modern application appearance improves usability and reduces training time • Streamlined application flow can reduce transaction times • Enables web-based, 24 X 7, self service transactions • Consolidate information and transactions from multiple back end applications • Control over content and user navigation • No cost of software deployment to end user • Enables addition of business logic to legacy applications without changing the application • WebSphere-based development and deployment environment provides unlimited flexibility • Builds reusable skills

20. Look for the Savings and Quantify • Modernize and streamline existing applications to reduce transactions times • Eliminate key strokes and workflow steps, combine data from multiple apps • Reduce errors and speed data entry • Lower help desk support costs • Clerical savings - Employee driven apps become self service apps • Offload call centers • Eliminate duplication of data entry • Modernize appearance and improve navigation to lower training costs • Applications interface more familiar, intuitive • Improve employee job satisfaction and retention

21. Look for the Savings and Quantify • Make applications and data available on the Web, at lower cost and lower risk • Build on existing application logic and data, avoid the cost, delay and risk of rewrite • "Webify" without coding • No changes to existing applications • Build web services cost effectively • Provide instant portal content without coding • Add business logic • Reduce operational costs • Eliminate SW deployment and maintenance • Standardize on one host access product, the browser • Replace private communications networks with the Internet

22. WebSphere Studio Asset Analyzer - WSAA • Purpose • Identify existing program resources • Establish relationships between programs • What talks to what • Identify data access • What programs access what data • Find particular items within a program • Ex: Date Fields (WSAA is a result of Y2K projects) • Problems • Application dependencies are complex • Job, Transaction, Database, Programs, Sites, Enterprise • Dependencies cross technologies and environments • Multiple tools and languages • Value • Identify programs that can be used as services in a SOA (Service Oriented Architecture)

23. WebSphere Asset Analyzer Overview

24. WSAA - Questions to Ask • Are you looking into implementing a Service Oriented Architecture? • Permits reuse of existing applications or parts of applications as services • Do you have a plan to capture information about your application portfolio? • Do you know what applications are now in your portfolio? • Do you know the dependencies between all your applications? • Is there documentation that shows all databases and records that each application touches? • Do you have a method to extract reusable pieces of existing applications? • Would you like to be able to save significant time and cost by being able to identify all those dependencies?

25. WSED – New Developer Productivity Options

26. ISPF based development - Old submit compile job swap to SDSF select job edit JCL find error msg find code line (remember error) exit source change code swap to edit session exit JCL find code line edit source

27. On-Demand Scenario: Support for Mixed Workload – Speeds delivery of enterprise applications by productively enabling large teams WSED: • Brings the power of J2EE, rapid Application Development, and robust team support to diverse enterprise IT organizations • Consists of: • An intuitive, visual construction based on open standard (Struts) • Broadest SOA support through Web Services and JCA with specialized zSeries capabilities • An easy to learn, language neutral environment for rapid application development • Comprehensive state-of-the-art facilities for developing, debugging and deploying Java, COBOL, and PL/I applications • WebSphere Host Integration (HATS) Benefits: • Increase developer productivity • Leverage existing processing • Integrate with lifecycle • Extend skill sets across the organization • Enterprise Generation Language • No need for Java or MF expertise • Generate Java for WAS • Generate COBOL for CICS

28. WebSphere Studio Enterprise Developer - Questions to Ask • Would you like to be able to improve the productivity of your COBOL developers? • Is it difficult for the COBOL developers to communicate with the Java developers? • Would it be helpful to offload functions like COBOL compiles to a workstation platform? • Do your COBOL developers need access to information about applications on distributed platforms? • Are your Java developers and COBOL developers collaborating on new web applications?

29. Application Integration Assure reliable and flexible information flow between diverse applications and organizations Customer Challenges Customer Benefits from WebSphere • Applications are not integrated in a flexible and reliable method across the enterprise, reducing business responsiveness • Differences between many internal and partner applications must be managed • Maintaining point to point or custom written integration interfaces is cost and time prohibitive • Reliably and seamlessly exchange data between multiple applications • Manage differences between multiple applications and business partners • Adopt an enterprise wide, flexible, service oriented approach to integration Application Connectivity Application and Partner Mediation Enterprise Integration Backbone Suppliers Customers WebSphere MQ WebSphere Business Integration Message Broker WebSphere Business Integration Message Broker WebSphere Application Server

30. WebSphere MQ - Real World . . . Customer Acceptance • Customer Base – used by over . . . • 10,000 customer sites • 2/3s of top 100 North American and European Banks • 550 independent vendors offer WMQ based services and products • >350 Of IBM's top 500 customers • >65% of NA and European banks • In heavy production usage, e.g. Chicago Mercantile Exchange, Olympics, Sabre, MCI, Delta • Achievement • >80% WW market share (per WinterGreen Research) Real World . . . Recognition • Royal Academy of Engineering's MacRobert prize - 2004 • WebSphere MQ - Best Java Messaging Tool- 2003 JavaOne event sponsored by JavaPro • Intelligent Enterprise Readers' Choice Award • Best in Enterprise Integration 2002 • Java Pro Magazine 2002 Readers' Choice Awards • Best Java Messaging Middleware • ASPire -Best in Integration Award • Java Developers Journal Readers' Choice Award • Best Java Messaging Tool 2001

31. Event Notification Application “A” Application “B” Request Response Messaging . . . What is it ? Communication among applications through the exchange of messages. Event Notification A one-way communication. Request / Response A two-way communication. Some competing approaches . . . Single System - Call / Return Remote Procedure Call Remote Method Invocation (Java)

32. api api WebSphere MQ Middleware that provides a flexible means to reliably exchange information between applications. Messaging Middleware WebSphere MQ Queue Manager Application “B” Application “A” It’s Like Voice Mail for your applications! A model based on “queues”. Assured Delivery Messages delivered once and only once (even if a MQ fails and is restarted). Asynchronous Delivery Once a message is “put”, an application does not need to wait for a response. Time Independent Delivery Messages are delivered when needed and when the application is available. Transactional Support Groups of messages delivered as “all or none” (for example, items in an order).

33. Selling WebSphere MQ . . . Overview • Customer Profile • Customers with applications that need to exchange data and are: • Mission critical (that is, have “transactional” characteristics) • Deployed over a wide variety of platforms (especially, when one of them is zOS). • Available at different times (for instance, 24/7 order entry, but nighttime order processing) • Opportunity (average deal of $ 50K) 70% of integration projects are custom coded and most result in end user dissatisfaction because of insufficient security, error recovery, and quality of code. Using WebSphere MQ resolves these shortcomings. Moreover, projects are sped up because the amount of application code is reduced and a single, standard method for applications to communicate is provided. • Customer Pains • Processing delays or errors because data is re-keyed or “file transferred” between applications. • Transactions are lost or duplicated because of network errors. • Processing is interrupted because applications are “temporarily” unavailable or off schedule. • IBM Solution Value ( Real World Examples ) • Police Department – Report processing went from 2 weeks to 5 minutes. • Airline Company – Able to provide 24/7 availability for their reservation system.

34. WebSphere MQ - Questions to Ask Information Technology Help desk clues . . . • Complaints of lost or duplicated transactions ? If so, do they co-inside with network errors ? • “ . . . not available, try again later” ? If so, do they co-inside with unavailable applications ? Operations manager issues . . . • Are batch windows regularly being missed ? • Are there planned or unplanned application outages that are problematic ? Development manager issues . . . • Are skills lacking for integration projects that span multiple operating system platforms? • Are integration projects delayed because of their complexity (design, code, test) ? • Is the backlog for integration projects large or been growing at too fast a pace ? • Is there pressure or interest to move from batch window to real time processing? Business • Are people re-keying or “file transferring” data between applications ? If so, are errors being introduced, it taking too long, or sometimes not getting done ? • Do users or customers complain about lost or duplicated transactions ? • Do users or customers experience error messages like “ . . . not available, try again later” ? • Have “work around” techniques been developed because I/T it too slow to provide solutions ?

35. WebSphere MQ - What answers should I look for ? Buying Signals Business Oriented • End customer frustration because of inaccurate, incomplete, or untimely information (for instance, money transferred between accounts not appearing until the next day – after nighttime processing). • Lost business or profits because decisions are made on “stale” information (for instance, putting the wrong items on sale because it was not based on next day or same day analysis). • Higher operating costs relative to the competition because data has not be consolidated (for instance, purchases at the store level purchases instead of at the corporate level). • Inability to grow revenues because of manual or semi-manual processes for data exchanges (like those that depend on re-keying or file transferring). • Unable to effectively respond to competition (for instance, untimely correlation of losses because of delayed reporting of data). Information Technology Oriented • A pattern of integration projects s that . . . . . . have been late or have had cost overruns because of their complexity. . . . have not met user expectations in terms of reliability, security, or performance. • A large or growing backlog of integration projects. • A shortage of skills for projects that require cross-platform integration. • Integration projects that need to be completed quickly.

36. Multiple Applications Without a Message Broker Application B Process Request Application B Data Format App A App E Application C Process Request Application C Data Format App F App G Application D Process request Application D Data Format App H

37. With WBI Message Broker Application B Process Request App A WBI Broker App E Application B Data Format Application C Process Request App F Application C Data Format App G Application D Data Format Application D Process request App H

38. WebSphere Business Integration Message Broker Customer Profile • Customers with separately developed groups of MQ enabled applications that now need to be integrated - typically, these results from (a) Mergers & Acquisitions, (b) Departmental Consolidations, (c) new “cross application” integration requirements. • Customers that need to integrate distributed applications like plant floor, store cash registers, and internet scale notifications with existing MQ enabled applications. • Customers that need to expose MQ enabled applications as Web Services. Opportunity • Many of the 10,000 implementations of WebSphere MQ could use broker technology to shorten the time and improve quality of information that is passed between a wide variety of applications Customer Pains • Integration projects with delays, costs overruns, and issues with quality. • Inability to deploy integration solutions in time to react to market needs and changes. IBM Solution Value WebSphere MQ & WBI Broker customers experience tangible results: • A chemical company reduced integration labor by 50% • An Australian bank, experienced a 25% productivity gain in their call center. Opportunity Qualification • Tactical - Customers with approved projects that involve applications that are already MQ enabled. • Strategic - Customers that would like to develop an “enterprise level” messaging architecture.

39. Buying Signals / Selling Opportunities Application Synchronization - Duplicate applications that need to be synchronized (e.g., as the result of a merger two human resource applications need to be process every change to an employee). Corporate Governance or Compliance – Applications that are (or can be) MQ enabled and need to have business policy applied (e.g., log wire transfers that exceed $ 10K). Internet Scale Notifications – Applications that are (or can be) MQ enabled and need to notify large numbers of people events (e.g., changes in scores from a sporting event). Purchased Applications – Acquired applications that are (or can be via an adapter) MQ enabled that needs to be integrated with each other or with existing applications that are (or can be) MQ enabled. Typically, examples of these are supply chain management, customer relationship management, and enterprise resource planning. Remote Device Communications – Programmable devices (such as, cash registers, kiosks, or phones) that need to send / receive information to host based applications that are (or can be) MQ enabled. Telemetry – Devices (plant or shop floor machinery, pipeline control mechanisms, railway switches) need to send / receive information to host based applications that are (or can be) MQ enabled. Web Services – Applications that are (or can be) MQ enabled and need to be used as a web service or need to consume a web service.

40. WebSphere Application Server 6.0: Foundation of the IBM Software Platform Increases the return on your existing investments while providing an on ramp to the entire IBM Software Group Portfolio: • Make the most of your resources with ease of use improvements that save time and money by helping you get you up and running quickly, with improvements that shorten the developer’s learning curve and a platform that will allow seamless migration to more advanced configurations • Integrate application assets with the Web services based Services Oriented Architecture that helps you increase return on existing investments and lower total cost of ownership • Improve resource utilization with enterprise class quality of servicethat enables and delivers lower total cost of ownership as your company is able to scale quickly to do more with less • Experience enterprise integration with the industry’s broadest platform support that lets you bridge heterogeneous environments and reuse legacy assets

41. WebSphere Application Server 6.0 – Focus Areas • Platform Enablement • Developing the eBusiness operating system for enterprise integration • Standards Based Architecture • Building on the latest Java standards and Web Services in an integrated development and deployment environment to reduce time to value • Ease of Use • Reducing and simplifying skill requirements by reducing complexity and extending the integration of application development, deployment, administration, and maintenance • Enterprise Class Deployment • Building the "Next Generation" application server with the qualities of service required by enterprise class deployment

42. WebSphere Application Server - Questions to Ask • Are you interested in building new applications using industry standards? • Is your enterprise building web applications to support customer self service? • Is the web a competitive tool for your organization? • Are you beginning to invest in Java as a language for your new applications? • Is it important to integrate the web applications to your back end legacy systems? • Do you need to add more services and functionality to existing web applications? • Do you need to be more responsive to competitive threats and offerings in the marketplace?

43. WebSphere Delivers Business Results While Addressing Top Customer Priorities Retail: Elimination of call center costs 90% improvement in online store application availability 25% faster development Financial Markets: 99% percent custodian reconciliation Virtual elimination of failed trades 20% cost reduction in business and IT operations Government: More than $1M potential savings for business registration process Greater than 99.999% availability 24X7 service delivery Insurance: $20 million in annual savings 34% reduction in teller processing time, 83% reduction in time to market for new products Manufacturing: Average of 20,000 parts updates a week managed by online design Reduced product time-to-market plan by 30 percent Banking: New customer accounts processed in just 1 day instead of 11 days 50% reduction in application development cycle Source: Based on reported achieved or anticipated customer results from IBM customer engagements

44. WebSphere Market Momentum “IBM is gaining share in every market, whereas most vendors were flat or negative.” Joanne Correia, Gartner Dataquest, “IBM continues gains in server software,” CNET, May 12, 2004 Market Share 2003 Application server 41.3% Business integration 20.3% Portal: 21.9% Market Share 2002 Application server 36.4% Business integration 18.2% Portal: 19.1% 2004-2005 Market Share 2001 Application server 31.4% Business integration 15.5% Portal: 7.0% On demand operating environment, industry solutions, open services infrastructure with SOA 2003 Market Share 2000 Application server 22.1% Business integration 13.1% Portal: 3.4% 2002 Market Share 1999 Application server 21.7% Business integration 12.8% Business Integration 5 styles of integration, Cross Worlds acquisition, Express launch 2001 2000 Open integrated tool environment - Eclipse, Web services, Portal, PvC 1999 WebSphere software platform common development tools 1998 WebSphere software product line launched to build, deploy and manage Java-based Web applications (Application Server & Performance Pack) Source: Gartner Application Integration, Middleware and Portals Market Worldwide, August 2002 and May 2004

45. IBM’s Proven Experience and Commitment to WebSphere Nobody invests more • $1 billion annual investment in engineering • Over $5 billion investment in technology acquisitions • Over 6,700 IBM developers • Over 10,750 IGS technical practitioners trained on WebSphere Continued success • More than 87,000 WebSphere customers • More than 4,000 partners certified on WebSphere software since 1999 • More than 3,150 active ISV solutions on WebSphere • Over 1.1 million registered WebSphere developers worldwide Award-winning WebSphere Software Technology Innovator: IBM WebSphere Business Integration Server Express —VARBusiness Magazine’s 2004 Technology Innovator Awards (October 2004) Best Java Enterprise Portal Technology, Best Java Modeling Tool, Best Web Services Development Toolkit, Best Enterprise Application Integration Technology, Best Web Services Management Tool, Best Java Messaging Tool —JavaPro Readers’ Choice Awards (October 2004) Best Web Services Solution: IBM WebSphere Application Server —2004 Codie Awards (May 2004)

46. Summary • WebSphere provides the platform for moving your customers to an On Demand operating environment • Significant productivity, usability and integration benefits for your customers • Designed to provide investment protection while enabling customers to modernize their environments • Help your customers align theirbusiness models and strategic objectives • Addresses needs currently being faced by the market • Support available to help move opportunities through the sales process • Business Partner software sales representatives • IBM technical pre-sales support • Customer reference animations and presentations available from your IBM zSeries business partner representative • 2005 WebSphere Enterprise Transformation Business Partner Conference • Let’s identify new tools opportunities and input them into Siebel or PWLM