Breaking Gravity: Unleashing the true power of ecosystems, partnering and communities

1. Breaking Gravity: Unleashing the true power of ecosystems, partnering and communities Sandy Carter – General Manager, Ecosystem Development Gina Poole – VP, IBM Software Group, Rational Marketing & Practitioner Outreach Andy Warzecha – VP, SWG Strategy, Software Group Luis H Rodriguez – Director, IBM Cloud OE Ecosystem

2. Breaking Gravity: Unleashing the true power of ecosystems, partnering and communities NewPartner Types (Clients, etc.) Academia Influencers (Ad Agencies, Associations, etc.) Start-ups Professional Developers (ISVs & SIs) Business Partners (VARs/VADs) Born on Cloud Partners (Cloud Brokers, MSPs, etc) Citizen & Crowd Developers Big Data& Analytics Mobile Smarter Commerce Cloud SocialBusiness Security Watson

3. Key takeaways 1 IBM has one of the largest cloud ecosystems – Deep… Broad… Established at Scale 2 IBM’s Global EntrepreneurProgram – Most complete program for startups to be successful in the marketplace 3 dW Network – Unparalleled practitioner experience with a new cloud developer platform 4 Launch of Watson – the first Cognitive Ecosystem

4. AnalyticsEcosystem CommerceEcosystem SoftLayerEcosystem Industry MobileEcosystem SocialEcosystem IBM has one of the largest cloud ecosystemsDeep… Broad… Established at Scale Depth Ecosystem covers full stack Breadth Interconnecting Cloud to related IBM Ecosystems Software as a Service • IBM SaaS • DemandTec, Coremetrics, Kenexa, etc. Platform as a Service • Cloud Computing Middleware • For Cloud Centric + Cloud Enabled Apps Infrastructure as a Service SoftLayer (Public) + SDE (Private Cloud) + Hybrid Capabilities Ecosystems

5. New Partner Types (Clients, etc.) Academia Influencers (Ad Agencies, Associations, etc.) Start-ups Cloud Specialty Availablefor 4 Years Professional Developers (ISVs & SIs) Business Partners (VARs/VADs) Born on Cloud Partners (Cloud Brokers, MSPs, etc) Citizen & Crowd Developers Established Ecosystem is Large and Growing 100+ referring and selling partners for IBM SaaS portfolio 100 Universities, 200 Faculty, 2000+ Students in 20 Countries on Cloud 200+ Champions on Cloud and related areas: Mobile, Social, Big Data 2000+ Members w/ Cloud Offerings 1250+ Cloud Solution ISVs 1.6M Cloud developerWorks Profiles 1000+ Value-added Reseller and Distributorwith an IBM Cloud mark 4800+ Cloud Communities on developerWorks 1000+ Cloud based MSPs Continuing to grow the ecosystem from pool of over 143,000 existing IBM Business Partners who can benefit from cloud

6. Engaging Born on the Cloud CompaniesReach and Approach Reach • Targeted through initiative campaigns • Expand through developer and practioner efforts (hackathons, codefests, etc.) • Robust Social Media outreach • Innovation focused events (e.g. SXSW) • Incubators and VC Interlocks • Cloud focus with Professors & Students including campus entrepreneur programs • Local and industry targets Approach • Social Collaboration & Self-Service Engine • Simple and easy to consume experience, developed with the Design Center • Progression focused: Based on interest • Virtual CoE: Expertise for the masses • Business Development • Architects & IT Specialists • Marketing Social Collaboration & Self-Service Engine

7. Fill the IBM Cloud Marketplace with third party assets Cloud Services Access to business and functional APIs from IBM and IBM Ecosystem Partners Get personalized user experience based on your role IBM Marketplace Solution Developer IBM Ecosystem Capability to deliver marketplace quickly (i.e. in a week) Populate APIs / services in the marketplace; chose and add from IBM Ecosystem Hub Marketplace Developer White Label Ecosystem Hub Attract the ecosystem, especially developers & customers Differentiate via industry & growth initiative focus Create stickiness with Cloud CoE and exceptional experience Extend the ecosystem with White Label Marketplace offering

8. Most Comprehensive Program for Startups to be successful in the marketplace – IBM’s Global Entrepreneur Program • End-to-End • Business & Technology Mentoring • 600+ mentors worldwide • Linkage to over 121,000 Business Partners “…Connects entrepreneurs to investors, attorneys and potential business partners, including IBM itself” Crain’s New York Business • Raising Capital • $115M in VC investment YTD for IBM Startups • 300+ VCs worldwide $20M since co-winning SmartCamp Silicon Valley Received $4.5M in funding to create Smart Grid technology since SmartCamp Israel $2M since winning Boston SmartCamp From Africa to 13 countries across the globe ScalingGlobally Australian Startup, creating partnerships from US to Europe From Brazil to Silicon Valley

9. IBM 2014 Entrepreneur Week: February 3 – 7 Innovate. Transform. Grow. Throughout the Week: • Press/ Analysts and Evangelism • Wall Street Journal, Red Herring, VentureBeat etc. • Top VC (blogs, communities, social) • Online forums – how to get started to join our program • Tech and Specialty Accelerators – TechStars, UpGlobal, TechCrunch, NY VC Venture Capital Association, MassChallenge, SVForum, MassEco, Austin Technology Incubator, New England Chinese Information Networking Association, MassEcon, New York Tech Council, The Capital Network • IBM announcements and special offers to startups • Product, Blu Stratus/Mix, Release Redbooks, Watson Marketplace • Announce startup tracks/session to be included at IBM events

10. 70,000 35,000 0 dW Engaging the Developer Community developerWorks by the Numbers The new developerWorks network Broadens practitioner experiencevia new cloud PaaS, open access to IBM SME community and dev2dev sites We engage 23%of the developer population monthly Establishing dW presence in South Africa and Kenya • MEA SWG 2016 market opportunity projected $3B • Africa projected 2014 AGR 7.7%, CAGR 8.5% • South Africa is one of 2 top growth markets in the region Followers on Twitter (-Google)

11. Expanding our Reach – Engaging Developers Where They Are Reach Practitioners where they are to drive awareness 3rd party practitioner events Provide content, skills & community Drive demand / influence buying decisions dW Live! at IICs for skill building events IBM brand events(e.g. Pulse, Innovate) Practitioner Demand Program Paid Media: Content syndication, banner ads & Paid Search dW & Blue Galaxy newsletters IBM Technical Summits Quarterly Thought-leadership Webcast series (Hot topics or “Dummies” series”) dW Article Nurture streams driving dW downloads Community forums, User Groups, Hackathons and Meetups Sandboxes, trial code,cloud demos, tutorials Social media(blogs, forums, tweets, etc.) Community forums, User Groups, Hackathons and Meetups Internal Communities(developerWorks, Blue Galaxy) Drive connections to dW Network e.g. JazzHub, WASdev Turn evangelism into increased influence to drive demand Trusted advisors(analysts, press)

12. Leveraging expertise across our Watson, Big Data & Analytics ecosystem leads to innovative client breakthroughs Cognitive How can we learn dynamically? Prescriptive How can we achieve the best outcome? Predictive What could happen? Descriptive What has happened? Big Data Platform How is data managed and stored? How can everyonebe more right……more often? Business Value IBM’s Big Data & Analytics Ecosystem

13. IBM is bringing Watson cognitive capabilities to the cloud Enormous potential for both profit and progress: It allows our ecosystem of innovators to collaborate in growing areas for greater usability, co-evolution with users and radically improved access to information across a wide range of industries Watson Ecosystem is Big NewsPutting the power of Watson behind Partner apps The Watson Ecosystem will be made up of three key components: Watson Developer Cloud Watson Content Store Watson Talent Hub The ecosystem's cloud-based infrastructure provides the performance, control and flexibility necessary to run, manage and optimize SaaS applications Identify and supply content that will build context and support applications Get access to technical, business or design talent, underwritten by an IBM certification program Unleashing a wave of innovation that will benefit the waythat we as a society live, work and operate

14. Over 11,000 attendees to the Launch Webcast; 9,000 staying for the entire session 41 million twitter impressions from 6,286 mentions by 5,156 users Over 100 App business submissions since the announcement Endorsements fromkey influencers such as veteran tech commentator Walt Mossberg (530,008 followers); MIT Professor Erik Brynolfsson (12,197 followers); Entrepreneur Craig Brown (165,548 followers); developer forum Slashdot (123,827 followers); GreenMonk analyst Tom Raftery (10,854 followers) and nonprofit consortium The Linux Foundation (107,272 followers) Tailored advocacy outreach to the venture capital, independent software vendors, start-up and policy communities reaching more than 40,000 organizations Third-party expert commentary on the Smarter Planet blog shared with more than 65,000 followers. Hits to Watson ecosystem visuals and video are seeing significant uptick by the hour, garnering more than 11,000 and 2,000+ views respectively (per e.g. ecosystem partner Elance shared the video with its 48,000+ followers) AP wire photo has been shared with thousands of news desks and is being included in ongoing media coverage More than 10 top tier business publications and influential blogs included visuals and the video in articles, including: GigaOm, Mashable, The New York Times, Ars Technica, My Broadband, Upstart Business Journal, CruxialCIO, Slashdot, GizMag, Kurzweil, Healthcare Technology and Scientific Computing. Watson Ecosystem Launch – Stats

15. 2014 Goals i + : Value Play Strong GTM plans with Top ISVs Innovation Play Innovator Incubator Experience Play Virtual Center of Excellence • Top ecosystem members by Country • Technical & mktg plans; Joint marketing activities; brand/ industry commits • Targeted plays to Academic and Entrepreneur • Skills Cloud on Softlayer; Cloud Conversions; Showcases; Up-sell/ cross-sell • Hub for ecosystem sales, marketing and technical specialists in each geo • Quicker adoption; enhanced experience; Improved yield • Integrate Ecosystem technical (e.g. next gen platform dev) and business model requirements into IBM Design • Drive the Ecosystem evolution and lead the disruption with and through ISVs Design Play

16. Key takeaways 1 IBM has one of the largest cloud ecosystems – Deep… Broad… Established at Scale 2 IBM’s Global EntrepreneurProgram – Most complete program for startups to be successful in the marketplace 3 dW Network – Unparalleled practitioner experience with a new cloud developer platform 4 Launch of Watson – the first Cognitive Ecosystem

17. Anchor Clients Partner Apps Consolidated Approach – Focused on the Cloud Developers IBM Ecosystem Governance Board App App App App App App App ….. Drive deeper ecosystem skills and integration with IBM through IBM Innovation Centers (IIC) Virtual Center of Excellence, Self-Service Engine Mobile Security Connected Cars Healthcare Big Data/ Analytics Social Commerce DevOps Cloud Platform, Services, APIs General Content Skills and Entrepreneurs (Talent)