Automation Lunch & Learn

1. Automation Lunch & Learn • Welcome Kristi Schaffner WW Channel Marketing • 2004 Marketing Programs Scott Cooper Vice President, WW Channel Marketing • Automation Business Partner Opportunity David Rice Program Manager, Automation • Lunch and Learn Schedule • Question / Answer Panel

2. Business Partner 2004 Marketing Programs Scott Cooper Vice President, WW Channel Marketing

3. Turn e-business on demand into Customer Demand

4. BP participation in “Big Play” programs • Participation in local “Big Play” co-mktg events & campaigns: • Shared co-mktg funds available to qualified BPs • Agency assistance avail • Lead mgmt • Participation in “Big Play” fast start quick pipe builders • Shared co-mktg funds available to qualified BPs • Agency assistance avail • “Big Play” Sales & Mktg Materials • Executive Assessment • Campaign Designer BP Desired Level of Participation Partner Plan Certifications, Mktg Results PWS Value Pack

5. Plan your move - build a PartnerPlan • Where you want to play • How much you want to sell • How much you want to earn • Brand specialties, skills • Solution & industry focus • Co-marketing participation • Resources, milestones & performance tracking

6. IBM Automation from A to $: The Future is Now David Rice Program Manager, Automation IBM SWG

7. Agenda • Automation – what it is and why you should care • Tools and support you need • Customers are Automating today • Get on board – next steps

8. Delivering Automation through the On Demand Operating Environment On Demand Operating Environment Integration Infrastructure Management Infrastructure Management • Automation/Virtualization • Availability • Security • Optimization • Provisioning • Infrastructure Orchestration • Business Service Management • Resource Virtualization of Servers, Storage, Distributed Systems/Grid and the Network

9. What is Automation? Automation is the ability to dynamically take action to make better use of assets, reduce cost, and increase availability and resiliency to achieve business goals. Business Service Management Infrastructure Orchestration Availability Security Optimization Provisioning

10. Availability Security Optimization Provisioning BSM Orchestration Defining the Capabilities Automation enables an on demand business model Helps ensure the health and appropriate functioning of IT Helps ensure information assets, confidentiality and data integrity are protected • 27-32% savings triage time • 25-35% higher first call close rates • 35-40% reduced admin time • 35-40% reduced access time Helps ensure the most productive utilization of IT Makes available right resources to right processes and people • 15-35% reduced capital outlay • 25-30% reduced staff req’ts • 20-25% greater utilization • 40-50% fewer batch restarts Senses, triggers , responds according to business goals. Manage using business priority, manage service levels • Increase resource utilization from 20% avg. to as high as 50% • 30-40% reduced admin time • 40-50% savings in SLA reporting • 15-30% savings on time for root cause determination, downtime

11. Automation: From Products to Complete Offerings & Services Availability BSM • Tivoli Monitoring Family • Tivoli Enterprise Console • Tivoli Storage Area Network Manager • Tivoli Management Portal • DB2 Automation Tool • Tivoli Monitoring for Transaction Performance • WebSphere Application Server Network Deployment • DB2 Recovery Expert • Tivoli Business Systems Manager • WebSphere Business Integration Family • Tivoli Service Level Advisor • DB2 Intelligent Miner Optimization Security • Tivoli Performance Modeler • Tivoli Storage Resource Manager • Tivoli Decision Support for OS/390 • WebSphere Edge Server • WebSphere Application Server for z/OS • Tivoli Storage Optimizer for z/OS • DB2 Performance Expert • DB2 SQL Performance Analyzer • Lotus Workplace • DB2 Parallelism with SMP • BRMS for OS/400 • IBM Enterprise Identity Mapping • Tivoli Identity Management Family • Tivoli Storage Manager Family • IBM Tivoli Directory Server • IBM Tivoli Directory Integrator • Embedded Security Subsystem, a ThinkVantage Technology Orchestration Provisioning • Tivoli Provisioning Manager • Tivoli Configuration Manger • Tivoli Identity Manager • WebSphere Application Server Enterprise Edition • Image Ultra, a ThinkVantage Technology • Tivoli Intelligent ThinkDynamic Orchestrator • Intelligent Infrastructure Management Offerings • IBM Web Infrastructure Orchestration

12. Automation addresses customers’ top 3 concerns According to customers the following capabilities are critical for their business: Optimize Resources • Only 15% of resources are utilized today • 92% of processes are done manually • High labor costs Increase Business Agility … and reduce costs! • CEO priorities shifting — from cost containment to growth • 47% indicate that automating core processes is critical • 50-66% have service level agreements in place with 72% being manual • 63%+ reducing IT costs is top priority this year Manage Complexity • 51% have flexibility as top priority • 80% IT management effort is spent on diagnosis Sources: ebusiness on demand Attributes and capabilities study, Autonomic Study, Blueprint market drivers study, Tivoli Customer Study

13. Automation strategy evolves IT Focus Business Focus Element Management On Demand Management IT Service Management • Autonomic, self managed environment • Dynamic provisioning • Automated best practices • Proactive and Predictive • Automated provisioning • Manual processes • Reactive and tactically aligned • Resource intensive Autonomic Adaptive 5 4 Predictive 3 Managed 2 Basic Basic 1 Levels of Automation

14. You can makemoney! Automation Market is $25B in 2004! IBM has leadership in Automation and on demand Why should you care? Because . . .

15. Business Partner profitability Reality Research & Consulting conducted a report analyzing Business Partner profitability when they engage with IBM software A few of the results include: • IBM provides an excellent return on a Business Partner’s overall investment. IBM Business Partners, on average, report a 9 to 1 ratio of profit dollars to investment dollars. • IBM provides a 21X sales multiple. For every dollar a customer spends on IBM middleware, an additional $21 is spent by that customer on related software, hardware, and services purchases. • IBM certifications provide a significant ROI. Each dollar spent in training yields $345 in revenue.

16. Automation Market is $25B in 2004 2004 Opportunity (in $Billions)

17. Business Partner value proposition For Resellers looking to provide “sense and respond” automation capabilities to customers to dynamically adapt their IT environment to meet their business priorities, IBM provides industry-leading, standards-based Automation software and technical expertise that allow you to bring automation-based solutions to an emerging market requiring business agility, optimization of IT resources and the management of IT risk and complexity.

18. Business Partner value proposition For ISVs + SIs looking to provide “sense and respond” automation capabilities to customers, to dynamically adapt their IT environment to meet their business priorities, IBM provides industry-leading, standards-based automation software and technical expertise that can help reduce time to market for new, differentiated Automation offerings. This allows you to bring your solutions to market faster than your competitors and respond more quickly to changing market opportunities.

19. Announcing! Orchestration and Provisioning Automation Library (OPAL) The tools and community that business partners need to build their business around on demand automation • Workflow Resource Kit • Automation Catalog • Worldwide Innovation Centers and Education • Validation • Demand Generation OPAL NEW • Business Partner Value: • Make Profit • Deliver On Demand Automation • Decrease Operating Costs PartnerWorld • Business Partner Value: • Make Profit • Deliver On Demand Automation • Decrease Operating Costs

20. IT Service Management Workflows Dynamic How Do You Play in OPAL? By Creating Workflows! What is a Workflow : A logical sequence of steps to install, configure and deploy a given resource and associated dependencies. Traditional Scripts • Time consuming to build and maintain • Infrastructure changes require script updates (i.e. hard-coded) • Requires manual monitoring • Reusable and GUI based • Dynamically leverages data center model • Automated sense and respond Delivering Business Value: Capturing IT expert know-how and dynamically executing processes in response to changing business requirements Workflow Example: Publish an application in a Citrix environment Determine host name of target server Reusable Retrieve Citrix application ID specific to the software package to be published Roll Back Get Citrix installation manager server ID Automated Pass information to Citrix application utility tool

21. The Orchestration And Provisioning Automation Library Join the OPAL Team !

22. Customers have knowledge of solutions before you get in the door “Orchestration” print ad “Tiffany”online ad Targeted information at the right time Automate on demand Customers like you Automate Event/Web Casts and Executives on demand Demos & Tools Virtual City (new eBAY) & Automation Assessment Tool Customer References IT Optimization Reduce ComplexityBecome Agile Reduce Costs White Papers: Analyst, ITIL, Automation

23. Driving Demand - Advertising Customers have knowledge of solutions before you get in the door 4 Automation ads in 2004 Leadership April Business Agility June Optimizing Resources August Managing Complexity October (Print + interactive) US in mkt dates; other Geos +6 wks BecomeAgile Optimize IT Resources Reduce Costs Manage Complexity

24. Driving Demand – Direct Marketing • Awareness.. 4 Automation ads planned for 2004; Automation Leadership begins April Gartner Symposium, Mar 30 – Apr 2: premier sponsorship Peds by Auto subthemes; also includes TotalStorage + Autonomic peds Become Agile • Consideration All GEOs executing Automation tactics Program deliverables in-market today • Preference Automation Product Guide offered with Intro Pack META Group analyst report being used as offer for Business Agility Kit Optimize IT Resources Reduce Costs Manage Complexity

25. How we’re supporting you • Monthly Lunch and Learns • Introduction to Automation scheduled for March 2004 • Lunch and Learn CD-ROM • Will feature all six of the core IBM Software Group plays • IBM Software Group Channel Ad Campaign • Publications: CRN and VAR Business • Runs June through December 2004 (U.S. only) • Print and on-line placements • Teleconferences • Hear from the experts • Hear from your peers

26. IBM Automation Launch - Key Worldwide Events – 1H 04 IBM Identity Summit Victoria, Canada April 27 - 28 IBM Identity Summit Rome, Italy April 21- 23 EMEA Launch Cities Cross ebod event & Automation Seminars Q2 – Q4 IBM Software World, Tokyo, Japan May 17 - 19 OPAL Announcement CeBIT, Hannover, March 18 - 24 EMEA, GigaWorld, Barcelona, June 7 - 9 AP Launch Cities Q2 – Q3 OPAL & BPM Announcement Las Vegas, NV Feb 29 – March 3 Gartner Spring Automation VSP, San Diego, CA Mar 29 – April 2 Automation Launch Americas GigaWorld, Florida May 17 - 20

27. Business Partner Zone • Program Overview • Marketing materials • Co-marketing • Enablement maps and information

28. Automation Sales Tools …help you identify opportunities Use the Automation AssessmentTool to establish a technology strategy Use the Automation Selling Tool to establish a product strategy Use the Presentation Wizard to build custom presentation Use the ROI Analyst to detail the ROI

29. on demand Management IT Service Management Element Management Improving IT Operations Improving Business Operations 1 2 1 2 Autonomic Adaptive Predictive Managed Basic Basic Automation Sales ToolsTechnology Strategy for Automation, Security and Storage • Automation Selling Tool Product focused Assess “maturity” IBM product recommendations • Automation Assessment Tool Focus on processes, skills, products Assess “readiness” Recommendations for improving all areas

30. Automation Sales ToolsArticulating Solution Value • Presentation Wizard Product focused Automatically builds “customer ready” presentations Access to the latest presentations • ROI Analyst Tool Focused on the unique value of Automation offerings Products are individually represented Value metrics are updated at each Launch

31. Self-study: The Automation Assessment Tool http://www-1.ibm.com/partnerworld/pwhome.nsf/weblook/tac_sel_ssaat.html Audience: Anyone desiring knowledge about the Automation Assessment Tool.Description: The Automation Assessment Tool (AAT) is an enhanced version of Autonomic Computing Value Assessment Tool (ACVAT) which was deployed in 1Q03. Like the ACVAT, the AAT is intended to help customers assess the maturity of their existing autonomic capabilities and to help guide the development of their autonomic computing strategies. Specific insights and recommendations are provided in six key operational areas that are fundamental to autonomic computing, including a high level view of the potential business value. The results from the assessment will help communicate the value for customers to purchase IBM products and services. Prerequisites: You will need access to the Internet. If you have not done so already, you will be asked to register for PartnerWorldUniversity before accessing the workspace where the Colleges are located.

32. Others are Achieving Automation Benefits Today IBM automation helps our systems stay responsive, and when problems do arise, we can get systems back up and running quickly. —Glen Barry, UPS IBM delivers continuous, effective and stable IT operations and IBM’s approach to automation results in optimized operational and business value for Sanyo. —Yamada, Manager, SANYO, Japan The capabilities of IBM automated identity provisioning enables us to provision access correctly, control access rather than just grant it and do it all in a way that is auditable but flexible in allowing us to bring on new users quickly. —Garry Kolb, Oppenheimer Funds IBM (Tivoli) software helped Prudential Financial intelligently automate its systems to reduce downtime by 40%. And, realize a $3.4 million ROI in 8 months. Manage Complexity Optimize Resources Increase Agility Reduce Costs

33. What should you do after leaving this session? • Determine how you can leverage the Automation imperatives • Deepen your knowledge of IBM Automation • Know solutions, competition, value • Assess your current skill base • Build-out Automation expertise • Focus on the customer • Understand their pains • Map IBM Automation software solutions to meet their pains

34. Helpful URLs • PartnerWorld for Software / Partner Zone Automation Marketing Materials: https://www-100.ibm.com/partnerworld/software/pwswzone.nsf/docs/DGSH-5UANMA?opendocument (enter userid & password) • IBM On Demand - Automation www.ibm.com/software/info/openenvironment/automation.html • Tivoli Knowledge Center online:www.ibm.com/software/tivoli/partners

35. 25 March – Automation 11:00am – 12:00pm Eastern Toll free within the US: 800-210-9006; Direct dial: 1-719-457-2621 Passcode: 530043 8 April – People Productivity 11:00am – 12:00pm Eastern Toll free within the US: 800-946-0741; Direct dial: 1-719-457-2649 Passcode: 528642 22 April – Integration + Think Thursday 11:00am – 12:30pm Eastern Toll free within the US: 800-946-0705; Direct dial: 1-719-457-2637 Passcode: 626434 6 May - Small-Medium Business (SMB) + Think Thursday 11:00am – 12:30pm Eastern Toll free within the US: 800-231-9012 Direct dial: 1-719-457-2617 Passcode: 740259 20 May - Software Development Platform 11:00am – 12:00pm Eastern Toll free within the US: 800-946-0712 Direct dial: 1-719-457-2641 Passcode: 124242 3 June - Install Base + Think Thursday 11:00am – 12:30pm Eastern Toll free within the US: 800-231-9012 Direct dial: 1-719-457-2617 Passcode: 704247 Lunch and Learn Series: The entire series will be available on CD from IBM Publication Ordering Early Q2“Program In a Box”

36. Introducing Think Thursday • When Thursday 22 April 2004 at 11:00 a.m. EST/4:00 p.m. GMT • Agenda Presentation “Making Money with WebSphere” will cover: Comprehensive overview of WebSphere capabilities and qualities Current market dynamics Proof points showing the WebSphere value proposition and business value for Business Partners • Speaker Sunil Soares, Business Unit Executive, WebSphere Worldwide SMB &Channel Sales • Logistics Call in info: US/Canada 800-946-0705, Toll International: 719-457-2637 Passcode: 626434 • For additional program information For more information on this event or future calls, visit the Virtual Information Center at www.ibm.com/partnerworld/vic. Detailed Think Thursday program information will be included in the Sales and Marketing section under Sales Enablement -> Events.

37. Calling All SMB Business Partner Customer References • Highlight your Success via the IBM Customer Reference Program • Submit yours today! Available on the BPZone home page (in shortcuts list) Benefits to you: Increased credibility with your existing and prospective customers Opportunity for various joint IBM press and marketing opportunities • Benefits to your customer: Opportunity to be seen as an industry leader. Potential to drive more business

38. Questions & Answers