Delivering Value with Tivoli Automation Tivoli Live!

1. Delivering Value with Tivoli Automation Tivoli Live! Nick Drabble Automation Business Leader, Tivoli UKISA

2. Agenda • IT Challenges • Delivering Enhanced Automation Value • Provisioning & Configuration Management • Software Asset Management • Usage and Chargeback • Operational Management • Micromuse Acquisition • Availability Management Tivoli Live!

3. 78% of CEOs believe integrating business and technology is fundamentalfor innovation IT Organizations FaceTremendous Pressureon Many Fronts • Complexity: Resources, silos, composite applications • Change: Market demands, workloads, service levels • Compliance: Regulations, security, audit capabilities • Cost: IT infrastructure and management Source: 2006 IBM Global CEO Survey Tivoli Live!

4. Application development & support labor has dropped from 48% to 34% of IT Labor spend over previous 4 years. 70% of 2005 CIO Budget is Labor Trend: IT Efficiency and Effectiveness are Waning Decrease in Efficiency as IT Spending Shifts to Operations Labor Source: Tivoli Commissioned IDC Study 1Q05 Source: Gartner Group, IT Spending & Staffing surveys 70% of CIO budget is Labor • 70% of CIO budget is labor • Operations labor will be 73% of CIO labor budgets by 2008 • Application development will decline at -10% CGR to 2008 • $325B in operations labor by 2008 Tivoli Live!

5. IBM IT Service Management IT CRM & Business Management Service Delivery& Support ServiceDeployment InformationManagement BusinessResilience IT Process Management Products Change and ConfigurationManagement Database (CCMDB) IT Service Management Platform Best Practices Server, Network and Device Management StorageManagement SecurityManagement Business ApplicationManagement IT Operational Management Products IBM IT Service Management – Innovation that Matters The industry’s most comprehensive set of products, services and solutions • Tivoli continues to invest across the portfolio • New acquisitions to deliver rapid value in the automation space • Automation product enhancements Tivoli Live!

6. Business ApplicationManagement Server, Network & Device Management Storage Management Security Management Products include: • Tivoli Composite Application Manager • Tivoli Business Systems Manager • Tivoli Intelligent Orchestrator • Tivoli Service Level Advisor • Tivoli License Manager • Tivoli License Compliance Manager • Tivoli Usage andAccounting Manager • Netcool/Impact Products include: • Tivoli Enterprise Console • Tivoli Monitoring • Tivoli OMEGAMON • Tivoli NetView • Tivoli Remote Control • Tivoli Systems Automation • Tivoli Workload Scheduler • Tivoli Provisioning Manager • Tivoli Configuration Manager • Tivoli Decision Support for z/OS • Netcool/OMNIbus • Netcool/Proviso • Netcool/Precision • Netcool/Monitors Products include: • Tivoli Storage Manager • Tivoli Continuous Data Protection for Files • TotalStorage Productivity Center Products include: • Tivoli Access Manager • Tivoli Identity Manager • Tivoli Federated Identity Manager • Tivoli Directory Server • Tivoli Directory Integrator • Security Compliance Manager • Netcool for Security Management IT Operational Management Products Integrated across silos through the ITSM platform to the IT process management products IBM IT Service Management IT Process Management Products IT Service Management Platform Best Practices IT Operational Management Products • Tivoli License Manager • Tivoli License Compliance Manager • Tivoli Workload Scheduler • Tivoli Provisioning Manager • Tivoli Configuration Manager • Tivoli Usage andAccounting Manager Tivoli Product Portfolio Available TODAY! Tivoli Live!

7. Data Center Automation Tivoli Intelligent Orchestrator 5.1 (Policy-based Provisioning) Tivoli Provisioning Manager 5.1 (Complex Server provisioning, Extensive Automation) UNIQUE REQUIREMENTS COMMON REQUIREMENTS • Highest Value from Automation Solutions • Execute repetitive, error-free best practices • Interfaces to Data Center devices • Server provisioning • Network provisioning • Storage provisioning • Security provisioning Software Policy Management Patch Management Software Deployment and Packaging Asset Inventory Bare-Metal Installation LPAR Physical Servers VMware Tivoli Configuration Manager 5.1 (Software Distribution, Inventory, Patch Management Compliance and Remediation) TPM “Express” for Software Distribution 4.1 (includes TPM Express for Inventory) (SMB Software Distribution) TPM “Express” for Inventory 4.1 (SMB Inventory) UNIQUE REQUIREMENTS Software Distribution and Management (Branch Office – Departmental) • Highest Value from Management Solutions • Interfaces to remote branch devices • Network Considerations • Scalability Requirements • Thousands of autonomous remote sites • Checkpoint Restart at Job/Network levels New! New! New! Servers Software Distribution and Management (Pervasive – Mobile Client) UNIQUE REQUIREMENTS • Interfaces to What’s Remote • Windows 2000, Windows XP, Windows CE, Palm OS, phones • Significantly higher scalability requirements • Tens of thousands of “intermittently connected” clients • Server control point at central site Clients New! Clients - Pervasive Enterprise Automation and Provisioning Tivoli Live!

8. Provisioning Delivering a Value Roadmap Automation Automatically install and configure servers when required for an application Reassign resources to servers without disrupting operation Create new services as needed, with exactly the resources that are needed Provide this function in a cross-platform environment without regard to underlying implementation Dynamically deploying and optimizing IT resources real-time Value Roadmap Provisioning Orchestration Tivoli Live!

9. Provisioning Process in a NON-Automated Environment Validate Security, ensure Correct Policies in place Server on the Dock Make Resource available for “Test, QA, Production” Ensure Network, Storage, and App configurations Are correct. Load OS – Scripted or Human Non-Automated provisioning Requires HUMANS, to analyze, Build, test, deploy, and configure The servers into an environment. Reality is that customers typically take several weeks to deploy a single server into an environment. Component Load – Middleware Default Configuration Configure Components – Middleware Configure Tools and Agents Apply Application Specific Changes Load Utilities, Patches. Issuance process Tivoli Live!

10. Automated Provisioning Process CBL Plugins In New Server 1 Automatically Discover and Update Data Centre Model in CMDB • 3 Allocate Resource to Business • Scheduled • Reserved • Provisioned dynamically • 2 Automatically Provision Resource • Using Best Practice- Based on target desired state • Using automated workflow engine • Includes OS, patches, middleware, application, configurations & updates • Logically grouped in resource pool Tivoli Live!

11. Virtualised Data Centre Model Visualisation Tivoli Live!

12. Provisioning Manager Value Application Build = $1M pa saved (35 servers/month) Migration Done in 20 hours & 13% of budgeted cost Tivoli Live!

13. Provisioning and Orchestration TCM “Software Distribution and Inventory” Solution MAR JUN SEP DEC Being renamed to ‘TPM for Software 5.1” in September TCM 5.1 TCM 4.2.3 This is what a customer will get for TCM 4.2.3 maintenance. TCM 5.1 w/Framework • TCM 5.1 • Packaging for Distributed and Data Center • New Customers – Most likely TCM 5.1 Package • Installed Customers – Most likely TCM 5.1 “w/Framework” Package • - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - • New User Interface • New Content Delivery Infrastructure • Improved Reporting • Leverage Active Directory Data • Software Distribution on SOA and Framework • Multiplatform Patch Management • - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - • Intel Boot Server and Personality Migration • Simple Software Stack Provisioning • Endpoint coexistence and migration • Coexistence with TCM/TMF infrastructure Tivoli Live!

14. Provisioning and Orchestration TPM - TIO “Automation” Solution MAR JUN SEP DEC Includes Everything in TCM 5.1 and .. TPM 3.1 TPM 5.1 • TPM 5.1 • Packaging for Data Center • All Data Center Customers – Packaging by “Manage from” OS • - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - • New User Interface • Multiplatform Patch Management • Intel Boot Server and Personality Migration • Software Distribution on SOA • Improved Reporting • Leverage Active Directory Data - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - • Workflow Creation and Modification • Composite Application Stack Provisioning • Automation and Provisioning Capabilities • Server, Operating System, Middleware Applications • Storage Provisioning and Automation • Security Provisioning and Automation • Network Device Provisioning and Automation Tivoli Live!

15. 5.1 Release Objectives – Summary of what’s new • Rapid Deployment • New framework independent architecture plus framework based version carries forwards • Improved TCM interface • Consolidated Web UI & Web based Reporting • Total Cost of Ownership (TCO) • Deliver Strategic benefits for configuration management • Service Oriented Architecture (SOA) based components • Provide a migration path from TMF to SOA • Improved Function • More scalable, flexible deployment infrastructure through Content Distribution Services (CDS) • branch office support - grid based distribution, disconnected branch offices • TCO - fewer management servers when using SOA 2-tier topology • Improved Microsoft Active Directory (MSAD) integration • Additional Software and Patch automation • Enhanced OS Management • Software Compliance Management Tivoli Live!

16. IBM Tivoli Express: Simple, Fast, Secure IT Management Monitoring Express Storage Manager Express Identity Manager Express IBM Tivoli Provisioning Manager Express Products Two New Express Offerings • IBM Tivoli Provisioning Manager Express for Inventory 4.1 • Collects hardware and software inventory for reporting, audit and compliance • Upgrades to IBM Tivoli Provisioning Manager Express for Software Distribution 4.1 • IBM Tivoli Provisioning Manager Express for Software Distribution 4.1 • Includes IBM TPM Express for Inventory 4.1 function • Push, Pull and CD software distribution capability Tivoli Live!

17. Less cost & less risk • Faster to market • Better service Why Automate Provisioning? • Reduce operational cost • Reduce time to market for new applications • Increase service availability levels • Increase business agility / flexibility • Reduce risk of error via best practice, defined, repeatable workflow • Increase quality of new application code • Ensure that test configuration mirrors production environment • Increase productivity of operational staff IBM are automating provisioning WW across 400,000 endpoints Tivoli Live!

18. Star Technology Group Business Challenge To keep the cost of providing managed services to a minimum, and slow data center growth On-demand Business Benefits: • Increased utilization of computing and human resources through business policy-based automation, including existing best practices • Anticipated 75% efficiency increase in server provisioning over >2000 servers in data center • Anticipated 60% slow-down in data center density • Enables the introduction of a complete range of on demand services to customers, at a optimized value, through utility-style chargeback. • Enhanced responsiveness to new business opportunities “Star Technology are totally committed to a total on-demand strategy. Automation and virtualization in the data center are the enablers, and IBM Tivoli Intelligent Orchestrator is the tool we need to get us there” —Mark Lamb Technical Director, Managed Services Star Technology Group Solution • IBM Tivoli Intelligent Orchestrator Tivoli Live!

19. www.wimbledon.org See Tivoli Intelligent Orchestrator in Action Live! "IBM enables us to offer an unparalleled level of service to the players, enhanced further by the personalised service provided by the new management solution. It is IBM's insight that has helped us reach new audiences using channels that were not feasible just a few years ago.” Chris Gorringe Chief executive The All England Lawn Tennis and Croquet Club AELTC launches Wimbledon Live – a brand new service with live and on-demand video coverage of the Wimbledon 2006 Championships Tivoli Live!

20. Business ApplicationManagement Server, Network & Device Management Storage Management Security Management Products include: • Tivoli Composite Application Manager • Tivoli Business Systems Manager • Tivoli Intelligent Orchestrator • Tivoli Service Level Advisor • Tivoli License Manager • Tivoli License Compliance Manager • Tivoli Usage andAccounting Manager • Netcool/Impact Products include: • Tivoli Enterprise Console • Tivoli Monitoring • Tivoli OMEGAMON • Tivoli NetView • Tivoli Remote Control • Tivoli Systems Automation • Tivoli Workload Scheduler • Tivoli Provisioning Manager • Tivoli Configuration Manager • Tivoli Decision Support for z/OS • Netcool/OMNIbus • Netcool/Proviso • Netcool/Precision • Netcool/Monitors Products include: • Tivoli Storage Manager • Tivoli Continuous Data Protection for Files • TotalStorage Productivity Center Products include: • Tivoli Access Manager • Tivoli Identity Manager • Tivoli Federated Identity Manager • Tivoli Directory Server • Tivoli Directory Integrator • Security Compliance Manager • Netcool for Security Management IT Financial Management – Software Asset Management IBM IT Service Management IT Process Management Products IT Service Management Platform Best Practices IT Operational Management Products • Tivoli License Manager • Tivoli License Compliance Manager Tivoli Live!

21. IT Financial Managementhas become a topic of increasing focus and an important issue for CXOs when aligning IT with the Business Goals Align IT with the Business … Business Strategy Investment Service Quality Governance Financial Management Asset Management & Compliance Optimization Resource Accounting & Chargeback Tivoli Live!

22. What software do I have? Auto-Discovery of Software Assets End-to-end Tivoli License Compliance Manager To what extent is this software used? Is this different from what was purchased? Usage & Activity Monitoring Tivoli License Compliance Manager Tivoli Contract Compliance Manager How much is each software asset costing me now and in the near future? Contract Management Comparing Usage to Contracts Tivoli Contract Compliance Manager The Challenge and the Solution – Align IT Software Spending with Business Priorities Tivoli’s Unique Capability All three questions must be answered to align IT spending with Business Goals Tivoli Live!

23. UNIX/NTServers AS/400 PCs Tivoli IT Asset Management Overview ITFM/ ITAM Process Manager Tivoli Contract Compliance Manager Future An end-to-end Asset Management facility delivering efficient control of inventory, contracts and costs associated with the use of IT Assets Service Desk, ERPs, Other Tools CCMDB Future Tivoli Asset Management Viewer Tivoli Configuration Manager Enterprise-Wide Reports Tivoli License Compliance Manager for z/OS Tivoli License Compliance Manager Future Mainframes Tivoli Usage Accounting Manager Tivoli Live!

24. Where Do SAM Savings Come From? 80% from Unnecessary Software Invoice Reconciliation Avoiding Penalties Productivity Improvement Tivoli Live!

25. What will Your savings be? “We are under control , we know every piece of software running on our systems……. “ • European Bank - Told us they had 109 products on their system - we found 109 products .. plus 119 more .. all in use! • Major Outsourcer - Attributed $35m of savings directly to Isogon in 18 months • Regional Bank – Independent consultant paid €1m as his share of Year 1 savings realised via Isogon “Enterprises that begin an asset management program experience up to a 30% reduction in costs the first year.. and continue savings of 5-10% for the next 5 years” – Gartner Tivoli Live!

26. Business ApplicationManagement Server, Network & Device Management Storage Management Security Management Products include: • Tivoli Composite Application Manager • Tivoli Business Systems Manager • Tivoli Intelligent Orchestrator • Tivoli Service Level Advisor • Tivoli License Manager • Tivoli License Compliance Manager • Tivoli Usage andAccounting Manager • Netcool/Impact Products include: • Tivoli Enterprise Console • Tivoli Monitoring • Tivoli OMEGAMON • Tivoli NetView • Tivoli Remote Control • Tivoli Systems Automation • Tivoli Workload Scheduler • Tivoli Provisioning Manager • Tivoli Configuration Manager • Tivoli Decision Support for z/OS • Netcool/OMNIbus • Netcool/Proviso • Netcool/Precision • Netcool/Monitors Products include: • Tivoli Storage Manager • Tivoli Continuous Data Protection for Files • TotalStorage Productivity Center Products include: • Tivoli Access Manager • Tivoli Identity Manager • Tivoli Federated Identity Manager • Tivoli Directory Server • Tivoli Directory Integrator • Security Compliance Manager • Netcool for Security Management IT Financial Management – Usage and Accounting IBM IT Service Management IT Process Management Products IT Service Management Platform Best Practices IT Operational Management Products • Tivoli Usage andAccounting Manager Tivoli Live!

27. Virtualization momentum Server spending around virtualization will balloon to nearly $15 billion by 2009 * 49% of sites have or plan to implement 29% of sites implemented Source: IDC and STG MI Of those who have not implemented, over half intend to implement server virtualization technologies within the next 1-2 years Tivoli Live! *InfoWorld: “Virtualization ramp up is real – IDC”, October 18, 2005 ; “$15 billion worldwide by 2009”

28. Usage and accounting capabilities are critical for virtualized environments Usage data collection addresses key virtualization requirements • Need to assign costs that are not related to a box or role, e.g., the cost of managing the architecture or the overall installation costs • Must allocate costs and identify accurate usage as a prerequisite to implement end-to-end service level agreements • Desire to continually optimize the utility infrastructure • Costing and usage assignment critical to creating a Service Oriented Infrastructure Tivoli Live!

29. The Challenge and the Solution - Align IT Software Spending with Business Priorities IBM Capability Data collectors for IT infrastructure can review consumption across multiple dimensions Who is consuming which IT resources? Costing engine assigns cost to resource usage What is the cost of those resources, including those that are shared? Costing engine associates usage costs to consumers of IT resources How should IT allocate cost for chargeback, ROI, costing analysis, and billing? All three questions help align IT spending with business priorities Tivoli Live!

30. New! IBM completes acquisition of CIMS LabsResource Usage based accounting, cost analysis & chargeback • IBM Tivoli Usage and Accounting Manager (ITUAM) • A Cross-platform software system that determines the cost of providing information services • Helps manage IT costs by appropriating costs to an organization’s products, services and business functions • A software system that measures, analyzes, reports and bills the utilization and costs of different computing resources – including servers, storage, networks, databases, virtualized environments, messaging & other shared services • An integral part of an organization’s financial reporting systems • Provides Invoicing, Product Profitability, ERP Integration, Activity Based Costing, Resource & Cost Trending, etc Tivoli Live!

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34. Why is IBM Tivoli Usage and Accounting Manager important? CIO’s today have to support growth while managing costs. CIO agenda • Support increased business flexibility and introduce new applications faster • Better integrate business processes with IT • Improve IT systems utilization and productivity • Demonstrate how IT investment meets the business need • Reduce or mitigate business operations risk • Reduce Cost • ITUAM Value summary • Accurately and fairly determine the cost of providing IT services to the user community • Predict and justify future IT spend • Automate cumbersome manual processes for chargeback and/or IT cost allocation • Easy to use Web-Based Reporting & Drill-Down and multiple outputs Tivoli Live!

35. Business ApplicationManagement Server, Network & Device Management Storage Management Security Management Products include: • Tivoli Composite Application Manager • Tivoli Business Systems Manager • Tivoli Intelligent Orchestrator • Tivoli Service Level Advisor • Tivoli License Manager • Tivoli License Compliance Manager • Tivoli Usage andAccounting Manager • Netcool/Impact Products include: • Tivoli Enterprise Console • Tivoli Monitoring • Tivoli OMEGAMON • Tivoli NetView • Tivoli Remote Control • Tivoli Systems Automation • Tivoli Workload Scheduler • Tivoli Provisioning Manager • Tivoli Configuration Manager • Tivoli Decision Support for z/OS • Netcool/OMNIbus • Netcool/Proviso • Netcool/Precision • Netcool/Monitors Products include: • Tivoli Storage Manager • Tivoli Continuous Data Protection for Files • TotalStorage Productivity Center Products include: • Tivoli Access Manager • Tivoli Identity Manager • Tivoli Federated Identity Manager • Tivoli Directory Server • Tivoli Directory Integrator • Security Compliance Manager • Netcool for Security Management Operational Management IBM IT Service Management IT Process Management Products IT Service Management Platform Best Practices IT Operational Management Products • Tivoli Workload Scheduler Tivoli Live!

36. TWS z/OS Server TWS Server z/OS based Distributed New! New! End to End Job Scheduling TWS Agents TWS Business Agents AIX, HP, Solaris, Windows, Linux, OS/400, z/OS… SAP PeopleSoft Oracle IBM Tivoli Workload Scheduler v8.3Single solution to manage workloads from multiple applications, across multiple platforms Job Scheduling Console • Scheduling repository on a real RDBMS • Tivoli Management Framework replaced with WebSphere Infrastructure • Advanced planning capabilities • Public J2EE and Web Service APIs New Product for Distributing Workload TWS Dynamic Workload Broker Tivoli Live!

37. 70% of 2005 CIO Budget is Labor Automation Summary Challenges facing IT • Cost:IT infrastructure and management • Change:Market demands, workloads, service levels • Complexity:Resources, silos, composite applications • Compliance:Regulations, security, audit capabilities Provis & Config Costs reduced Service improved Business flexibility improved Faster time-to-market Software Asset Costs reduced Compliance Managed Usage & Acctg Understand Usage Costs Resources optimised Production Ops Costs reduced Resources Optimised All Productivity improved Source IDC Tivoli Live!

38. Thank You • Questions? Tivoli Live!

39. Business ApplicationManagement Server, Network & Device Management Storage Management Security Management Products include: • Tivoli Composite Application Manager • Tivoli Business Systems Manager • Tivoli Intelligent Orchestrator • Tivoli Service Level Advisor • Tivoli License Manager • Tivoli License Compliance Manager • Tivoli Usage andAccounting Manager • Netcool/Impact Products include: • Tivoli Enterprise Console • Tivoli Monitoring • Tivoli OMEGAMON • Tivoli NetView • Tivoli Remote Control • Tivoli Systems Automation • Tivoli Workload Scheduler • Tivoli Provisioning Manager • Tivoli Configuration Manager • Tivoli Decision Support for z/OS • Netcool/OMNIbus • Netcool/Proviso • Netcool/Precision • Netcool/Monitors Products include: • Tivoli Storage Manager • Tivoli Continuous Data Protection for Files • TotalStorage Productivity Center Products include: • Tivoli Access Manager • Tivoli Identity Manager • Tivoli Federated Identity Manager • Tivoli Directory Server • Tivoli Directory Integrator • Security Compliance Manager • Netcool for Security Management Next .. Availability Management & Micromuse • Tivoli Composite Application Manager IBM IT Service Management • Tivoli Monitoring IT Process Management Products IT Service Management Platform Best Practices IT Operational Management Products • Netcool for Security Management • Netcool/Impact • Netcool/OMNIbus • Netcool/Proviso • Netcool/Precision • Netcool/Monitors Tivoli Live!

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