Cloud Ecosystem Plan Sandy Carter General Manager, IBM Ecosystem Development

1. DRAFT Cloud Ecosystem PlanSandy CarterGeneral Manager, IBM Ecosystem Development

2. The ecosystem goes beyond our traditional partners New Partner Types (Clients, etc.) What is an ecosystem? A group of… companies (Enterprise, GB, Invest, etc.) partners (Traditional: VARs/VADs/SIs/ISVs, New: MSPs, agencies, brokers, etc.) individuals/groups (prof. developers, citizen developers, crowds, user groups, etc.) and influencers (academia, analyst, practitioners, VCs, ad agencies, etc.) collaborating and innovating to drive business  Academia Influencers (Ad Agencies, Associations, etc.) Start-ups Professional Developers (ISVs & SIs) Business Partners (VARs/VADs) Citizen & Crowd Developers Born on Cloud Partners (Cloud Brokers, MSPs, etc) 1

3. A Three-Prong Approach to the Cloud Ecosystem Cloud Governance CouncilDrive the ecosystem as one IBM Cloud ecosystem initiativesAcross IaaS, PaaS, SaaS API Marketplace Extend ecosystem reach Take the Cloud Ecosystem to the Next Level 2

4. A Three-Prong Approach to the Cloud Ecosystem 2 • For all cloud services • Execute Play: Top 10 cloud partners per IMT • Recruit/enable/GTM onto existing IBM cloud portfolio • Shift partners as IBM offerings port onto SoftLayer & CloudOE • Launch Self-Service Engine for partners • Drive IBM Cloud to academia (AI), developers (dW), and startups (GEP) 3 Participate in 3rd party API marketplace with IBM assets and build IBM’s own marketplace SaaS Across Social, Mobile, Commerce, Big Data/Analytics ecosystems: 1H: With existing cloud partners (e.g., Social / SugarCRM) build strong GTM plans + technical plans to migrate them to IBM offerings rebased on Cloud OE / SoftLayer. Touch 1100 partners with Self-Service Engine 2H: When rebased IBM offerings available, enable & drive GTM with existing partners, recruit/enable/GTM with new partners Cloud OE 1H: (1) Recruit/enable/GTM 6 startup partners with OE for Feb announcement (2) Recruit/enable/GTM 34 additional for OE launch (3) Reach 1000 GEP startups and 300 professors 2H: (1) Recruit/enable/GTM 30 more traditional partners (2) Reach 1,100+ partners with Self-Service Engine (3) Drive 10% of GEP startups to OE, drive 200 university courses w/OE 1 SoftLayer: (1) Grow ecosystem with 100 cloud skills education sessions in the IICs and 300+ enablements, to drive 225 leads, 75 wins in 2014. Establish an IBM Cloud Governance Council to take the cloud ecosystem to the next level 3

5. An ISV’s Journey to Cloud OE TechnicalAdoption Skills Development Go to Market Recruitment Decision to invest in OE IBM coverage, IICs Grow / Nurture robust skills IICs, dW, Self-Service Engine Port offerings to OE IICs, dW, Self-Service Engine Generate demand, sell offerings Marketing programs, joint selling Optimize Experience Deliver a cohesive end-to-end experience and continually improve it. 4 4 IBM Confidential IBM Confidential

6. Phased plan to drive adoption of IBM Cloud OE PaaS OE Closed Beta • Recruit 20 startups to the beta and start with 6 in 1st wave • Leverage startups for Feb. OE announce • Validate base OE functionality • Draw insights from partners • Pilot dWorks OE trial • OE Open Beta • Recruit 20 more startups • Leverage startups for 2H OE launch • Validate new OE functionality • Focus on GTM plans, joint wins • Build joint GTM plans for 2H fast start • Drive OE education/skills to all GEP startups and to professors in the academic initiative • Leverage dW trial to begin driving developers to OE skills and app development • Fully engaged ecosystem • Recruit 30 more traditional partners • Validate newest OE functionality • Drive GTM through IBM, and broker to 3rd party marketplaces • Rollout Self-Serve Engine • Drive 10% of GEP startups to port to OE • Drive ~200 OE university classes • dWorks: Leverage developer trials to drive 10K OE apps 5

7. 4Q13 Activities to Drive Cloud OE Ecosystem 6

8. 1H14 Activities to Drive Cloud OE Ecosystem 7

9. 2H14 Activities to Drive Cloud OE Ecosystem 8

10. Measures of Success - 2014 Targets

11. Key Dependencies 10

12. Double Down with Existing SaaS Ecosystem in 1H as IBM Ports SaaS Offerings to Cloud OE in 2HIBM SaaS offerings include Kenexa, Sterling, etc. 1H Play Strengthen and Prepare Existing SaaS Ecosystem 2H Play Expand Ecosystem • Build Deeper Go To Market Plans, e.g., • Drive broader awareness • Determine which marketing events to participate in • Sharpen messaging, including differentiation IBM delivers to partner • Develop more/stronger references • Build support plan for difficult competitive situations • Technical Preparation for Cloud OE based IBM SaaS offerings • Teach partner Cloud OE skills • Develop porting plan to rebased Cloud OE IBM SaaS offering • Recruit into Cloud OE beta program as appropriate • Jump-Start Existing IBM SaaS Partners • Execute technical porting plans to shift partners to Cloud-OE based IBM SaaS offerings • Continue executing deeper GTM plans • Recruit new partners • Existing partners in related ecosystems • New partners through Self-Service Engine, and through third-party marketplaces • Enablement and GTM • Skill up partners through IICs, dW, Self-Service Engine • Technically support partners during porting, testing, etc. • Broker partner offerings into IBM and 3rd party marketplaces

13. Driving the Cloud Ecosystem with SoftLayer 12 EcoD will lead the overall Cross-IBM Executive Ecosystem Management for Cloud, through the Cloud Ecosystem Governance Council SoftLayer to provide: • Support for education/training, ISV value prop, marketing collateral & assets, sample use cases, code data, etc. • Access to SoftLayer experts to train EcoD and to support larger deals • Broader set of IBM capabilities working on SoftLayer (joint work w/brands) EcoD: Market Development • Drive SoftLayer into cloud marketing tactics (events, website, etc.) • Engage University Professors to build cloud curriculum including SoftLayer • Drive startups to SoftLayer Catalyst program, and ensure Catalyst program members have access to EcoD Global Entrepreneur Program resources EcoD: Technical Education & Enablement • Drive skills to partners & developers through physical and virtual classes • Technically support partners porting to SoftLayer via 1-2 day one-to-many IIC work sessions • Provide direct technical support to jointly-identified anchor partners • Target 100+ IIC classes, and 300+ SoftLayer enablements EcoD: Outcome for 2014: • 225 new leads, with 75 deals closed

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15. Create an IBM Cloud Ecosystem Governance Council Execute through a lightweight process Responsibilities include: Set the strategic direction Call the plays for the cloud ecosystem Drive IBM coherence and consistency around the ecosystem, including the Business Model and GTM Drive focus on the ecosystem experience Chairpersons: Sandy Carter, Danny Sabbah Steering Committee:Jim Comfort, Marie Wieck, Les Rechan, Kristof Kloeckner, Craig Hayman, Alistair Rennie, John Mason, Mark Hennessy, Mark Register, Nancy Pearson, Paul Brunet, Damion Heredia, Luis H Rodriguez, TBD Working Team:To be nominated by Steering Committee Sync approach w/Fall Plan Execution iteam - MY taking to Sandy Thu New Partner Types (Clients, etc.) Academia Influencers (Ad Agencies, Associations, etc.) Start-ups Professional Developers (ISVs & SIs) Business Partners (VARs/VADs) Citizen & Crowd Developers Born on Cloud Partners (Cloud Brokers, MSPs, etc) 14

16. Drive ecosystem adoption of IBM Cloud Platform across the entire portfolio • Identify/Recruit Top 10 cloud partners by IMT (~200 total) • Pilot 20% (2 ISVs per IMT) to start with in 4Q 2013. • Recruit the rest in early 2014 • Technically enable partners on IBM Cloud offerings • Drive skills on IBM cloud into partners • Support partner in technical integration or porting to IBM IaaS, PaaS, SaaS, etc. • Create forward-looking roadmap for partner adoption of upcoming IBM cloud capabilities • Develop joint partner GTM plans, execute in the IMT • Deliver sales enablement and education • Drive into IBM demand gen and marketing programs • Connect with IBM sellers, and related ecosystem members • Time frame • Develop GTM content/benefits Sherwood/Paul 11/15 • EcoD training/enablement Sherwood/Amy/Kal 11/15 • Start the pilot with 20% of ISVs EcoD Coverage team 12/1 15

17. Drive ecosystem adoption of IBM Cloud Platform across the entire portfolio Self Service Engine What: Online community that is directly linked to the category communities to progress large volumes of ecosystem partners Value: Quickly reach more, critical partners in the way they want to be served, at the point of interest Details: New interactive quick self-service experience • New flow based on progression vs. data dump • Directly linked to category marketing online activities • Digital enablement, community based support • Drive to offering cloud, downloads and dW • Direct promotion through digital catalogs and marketplaces 16

18. Cloud Ecosystem Constituents (Work in Progress) 17

19. Anchor Clients Partner Apps Growth Initiatives : focus on our differentiation and tent poles IBM Ecosystem Governance Board App App App App App App App Virtual Center of Excellence, Self-Service Engine Mobile Security Connected Cars Healthcare Big Data/ Analytics Social Commerce DevOps • Prioritize top 10 partners by IMT for Cloud to build GTM • Identify and recruit 30 partners to drive enablement and GTM with IBM SaaS offerings • Build skills and awareness in students, developers, influencers through collaboration with developerWorks Cloud Platform, Services, APIs General content Skills and Entrepreneur (Talent) 18