IBM Application Performance Management (SaaS)

1. C&SI Straight Talk: IBM Application Performance Management (SaaS)

2. Caution on forward-looking statements This presentation has been prepared specifically to discuss IBM’s upcoming beta release of its new Application Performance Management Software as a Service offering, and the roadmap for that offering. Screen captures shown here may not exactly match screens ultimately delivered by the service, and no commitment to a particular availability date, or particular pieces of functionality is being made here. IBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM’s sole discretion. Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision. The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract. The development, release, and timing of any future features or functionality described for our products remains at our sole discretion. Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user’s job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here.

3. Many enterprise customers have expressed their intention to investigate SaaS: • Modern DevOpsrequire practical APM tools for pre-production and production support • Customers with APM in production recognize the ROI value in finding bugs pre-production Why our APM customers are considering SaaS… • Your business is changing as new Services are being provisioned faster • Embedded, autonomic monitoring of rapidly or automatically provisioned services is essential • Capital budgets are shrinking SaaS tools require less IT skills and are easier to use, creating demonstrable ROI through reduced TCO. Lowered TCO • Capital Costs reduced • Operation Expenses Reduced (no monitoring infrastructure to maintain) Provisioning new services quicker increases the opportunity to monetize your customers Rapid Deployment of new Services Enabled • Stand-up implementation • Easy migration / upgrade & roll back Add sophisticated root cause analysis tools to new workloads in minutes Faster Root Cause Determination IBM’s APM portfolio is marching to SaaS • Web based UI –available on multiple devices • Intuitive navigation • Rapid root cause with few clicks Small budget, small team? SaaS is the answer! Do more with Less • Operation & Capital Expense Challenges

4. Shift GTM focus on Application Owners Existing Clients Next-Gen (Direct to Consumer) Next-Gen (Svc Providers’ Customer) Segment How we’ll sell Business as usual, but with better offerings Existing customer base influences LOB Build new channel of svc provider partners APM Digital Marketing Client Trial Inside Sales Follow Up Service Provider Embedding Amazon, Heroku, Azure, etc. Client Trial Inside Sales Follow Up Direct Sales Business Partners Traditional MSPs Routes UsersInfluencers Buyers IT OPS OPS Director CIO App Owner App Developer LOB Manager IT Ops Provides dashboards to Lots of people “selling” to them APMaaS Vendor Provides APMaaS MSP Provides dashboards for hosted app PaaS Vendor Broker for APM Power Shift Orange = New focus with this release

5. IT Ops Key personas and their challenges • Top of Mind issue: • Availability and performance of systems and apps • Quick time to value with intelligent visualizations - ability to solve issues in 2 click • Visibility to end user experience of propriety applications with plugin capability • Quickly view business application context with dynamic, automated grouping of monitoring resources • Top of Mind issue: • Avoiding and resolving bugs in an efficient manner • Diagnose performance issues in traditional applications and with new Cloud Based Applications running Ruby, MongoDB, and MySQL • Quickly transition to production by enabling developers to correct operational issues • Reduce time to repair with light weight deep dive diagnostics for .NETand J2EE applications • Top of Mind issue: • Customer satisfaction leading to Profit in the Line of Business • Reduce downtime & optimize performance of Worklight based mobile applications • Monitor performance of current enterprise applications and new Cloud Based applications running Ruby, MongoDB and MySQL. • Accelerates problem resolution through rapid analysis of structured and unstructured application data (SmartCloud Analytics) • Quickly integrate with 3rd party tools to get consolidated monitoring view LoBOwner Application Developer

6. APMaaS is going to protect application revenue & provide immediate TCO relief Existing Clients Next-Gen (Direct to Consumer) Next-Gen (Svc Providers’ Customer) • On-premises vs SaaS, which should I choose? • Don’t choose, we’ll continue to offer both to support your needs • Will the SaaS offering do everything that my current APM solution does? • Before you know it, yes. • Will I have to learn to use two different tools? • Nope. Your dashboards and drill-down views will be exactly the same. • I’m a practitioner at GloboCO. Is this for me? • Sure. Impress IT Ops with your APM insights. • I’m a one-man show, operating on a shoe-string. I don’t have the time or budget for APM • Check out the low monthly price, budget won’t be a problem • Takes less time to check the health of your app than it does to check your fantasy football team • No offense, but IBM is kind of old-school, and I’m using the latest technologies here • Like Python, PHP and Ruby you mean? Got that, and more. • I want to get out of maintaining APM infrastructure • No problem, we’ll host it • My PaaS vendor offers SLAs, why do I need APM? • Service up-time and application health are two different things • Monitor your users’ experience, not your providers performance • Your provider may have the widgets, but you still own your code • I’m worried about being too tightly tied to my PaaS vendor, and worried about lock-in. • Your monitoring service lives at IBM. Move your workloads to another host, and the monitoring comes with you.

7. IBM Application Performance Management (SaaS) identifies the early occurrence and root cause of performance issues, not just the symptoms, throughout the application lifecycle. SaaS delivery makes it more convenient for stakeholders of all types to benefit from APM. Client Needs IBM Application Performance Management (SaaS) Delivers • A convenient way for ANY application stakeholder to ensure the availability of their applications and promote customer loyalty, with a simple solution that is managed for them as a service • Hosted application dashboards that give users a quick, intuitive way to assess the health of what matters most to them – their applications • Ability to download monitoring agents, point them at the hosted service, and see metrics on the hosted dashboard in minutes, with little or no configuration for the customer • Subscription pricing provides immediate total cost of ownership benefits, allowing customers operating on OpEx budgets to enjoy robust Application Performance Management • Support for “modern” Cloud application languages • A “zero-infrastructure” APM solution that collects data from their application, but is deployed and managed by someone else • Comparable application health monitoring throughout the application life-cycle – from development to production – to speed delivery and provide consistency • An application monitoring solution that can follow applications wherever they’re hosted • Ability to seamlessly combine resource monitoring with user experience monitoring, and add code-level diagnostics.

8. SaaS capabilities emerging

9. IBM’s APM Technology: Adapting to Market Changes How is IBM’s APM portfolio adapting to changes in the Application Performance Market, and providing new opportunities for partners? • Increased Breadth • Extending platform coverage to new application languages, such as Ruby, Python, PHP, mySQL, Mongo DB and Node.js • Modern Workloads • Expanding APM architecture to manage different types of workloads, such as Cloud applications • Flexible Delivery Options • Streamlining APM delivery by creating SaaS, test/dev, public Cloud, and virtual appliance deployment options • Enterprise customers can seamlessly transition between deployment options with consistent technology and user interface • Mobile • User experience monitoring for mobile users, as well as mobile infrastructure monitoring • DevOps • Integration with diagnostic tools to speed root cause analysis and make Continuous Delivery and DevOps initiatives practical SaaS beta planned for 1Q ‘14

10. Public cloud Private cloud Hybrid cloud Your Application Might Live Anywhere…or Everywhere You could install application monitoring at each of these spots... ...or use an application monitoring service in the IBM cloud that can connect to all of those places It’s precisely this model, and the difficulty in deploying our on-prem solutions to public clouds, that spawned the SaaS initiative… Performance data is fed to the APM service in the IBM Cloud... Your applications run anywhere, with a local monitoring agent collecting performance data... And your application stakeholders get dashboards showing application health, no matter where the app is running

11. This is the familiar view of the range of APM capabilities, which we’re accustomed to describing to customers. While not as complete today as the on-prem portfolio, the January APM SaaS release several of these areas, with others coming in 2Q Visibility, control and automation to intelligently manage critical applications in cloud, physical and hybrid environments. The Five Dimensions of Application Performance Mgmt 2Q ’14 1Q ’14 Diagnostics Domain-specific deep-dive and repair End User Experience Ensure SLA compliance Transaction Tracking Rapid problem isolation Predictive Analytics Reduce outages & improve business performance Discovery Quickly find application resources shared data & common services Follow changing workloads See steps across the cloud Understand the end-user experience Highly virtualized applications, storage & networks Private, public & hybrid clouds Mobile devices & smart endpoints

12. Data is collected from agents installed on the Virtual Machines in your environment New agents are included in SCM-AI, and bundled into SCAPM Standard where they can work with the existing environment or on a separate installation of SCM-AI. Agents are designed specifically to: Be reliable and available Provide useful, real-time metrics into resource availability and transactions Deepen the insight on the application Fully integrate with the dashboard and navigation New Agents available now: Operating Systems (Linux and Windows) Response Time (Web Traffic) MySQL Database Ruby MongoDB WebSphere A new generation of lightweight agents

13. Application Performance Diagnostics Capabilities IBM APD is easy to deploy • The lightweight infrastructure deploys in < 15 minutes with no configuration • Monitoring agent for WebSphere can be deployed in < 15 minutes IBM APD has an easy to use UI • Web based UI guides you to the source of your application performance problems Step 2 – Identify the source Step 3– Deep dive to find root cause Step 1 – Identify a problem IBM APD scales for production environments • The lightweight infrastructure will scale up or down elastically • Intelligent sampling enables method-level tracing in production environments

14. IBM APM Deployment Options IBM APM SaaS This is the Vision As we migrate on-prem capabilities to the SaaS platform, we’ll approach the goal of ultimate flexibility in how APM is deployed Works together, Works the same, Modular Application Performance Management Application Insight Target: LOB, MSPs GB market, LE departmental Entry Edition Target: LOB, IT Ops GB market, LE departmental Standard Edition Target: IT Ops, LOB Large Enterprise Application Performance Diagnostics Lite Edition (Low cost offering) Target: Developers LE, GBLE, GB Standard Edition Target: Developers LE, GBLE, GB Legacy New in 2013 New in 2014 2015

15. The Job at Hand… Lots of APM Agents to Migrate As you can see from our prioritization spreadsheet (based on customer and sales feedback, market analysis and development input) we have lots of collection agents to enable for SaaS delivery. Fortunately, our new lightweight, nimble architecture makes what might have looked impossible a year ago feasible

16. Specific capabilities in SaaSvs on-premises

17. Review of what’s available in APM on-premises

18. What’s available (or coming soon) in APM SaaS…

19. (cont’d) What’s available (or coming soon) in APM SaaS…

21. Note that we will only use these slides if it’s impractical to do a live demo of Service Engage Demonstrating capabilities with service engage

22. From now on, this is where we do sales enablement, and customer pitches… Service Engage is more than the portal to our SaaS offerings. It is where we illustrate to customers that we understand their problems, know how to address them, and share our expertise and the magic of our solutions.

23. Key Value Propositions

24. The Screenshots tab offers a series of views illustrating key capabilities: • Application Status • Application Response Time • Transaction Details • Diagnose Application Problems • For a quick conversation, these can drive home the value of APM. The same capabilities can also be demonstrated live, the demo sandbox (see slides to follow) The proverbial “Application Dashboard,” offering a quick, intuitive way to assess the health of all your applications

25. Drilling into a specific application from the dashboard, looking at user experience data…

26. Drilling further still into an application, to assess specific transactions that are affecting user experience

27. Looking at the individual components of the troubled application, to diagnose the issue

30. The Extend tab caters (initially at least) to existing customers, showing how APMaaS integrates with existing on-premises investments

31. This is a very interactive “sandbox” environment, where the value propositions we’ve been discussing can be demonstrated with live data. If you’re familiar with the tool, or talking to a typical operator, jump into the Live Demo, and conduct an instant POC. If not, or if you’re with a non-technical executive, use the video.

32. Note how the Guided Demo scenario on the right guides the user how to accomplish the key task…