TSM Replacement Campaign “Project Ignite” Update for SE Conference

1. TSM Replacement Campaign “Project Ignite”Update for SE Conference August 30, 2004

2. Project Ignite 2004 Campaign • TSM is our biggest obstacle: • To wider Fortune/Global 500 penetration everywhere • To significantly increasing our AIX platform revenues • To increasing VERITAS NetBackup market share • Goals: • Dramatically increase VERITAS’ ability to sell into TSM stronghold accounts • Increase VERITAS NetBackup market share vs. TSM at least 1% in 2004 and 3% in 2005 • Create “target list” of 15 TSM accounts to apply extra focus to in 2004, replace TSM in at least 3 target accounts by end of 2004 (North America) – EMEA targets & goals under investigation • Proliferate expertise gained to wider VERITAS field organization

3. Project Ignite 2004 CampaignUS Plan • Create Core Team that acts as repository for business and technical knowledge on defeating TSM • Core Team partners with field on individual accounts, facilitates spread of TSM knowledge throughout VERITAS field organization • Develop target list of accounts to win • Goal is to win at least 3 on target list by end of 2004 (North America) • Throughout Project Ignite program: Build, package and communicate outward our growing knowledge base of expertise

4. US Target Accounts • Northeast • State Street Bank • General Electric • Deutsche Bank • Guardian Life • South Central • Zurich • FedEx • TXU • West • Weyerhaeuser • SAIC • Warner Brothers • Telco • SBC • Qwest • Government • DoITT • CIA

5. Completed Activities & Deliverables • Consolidated list of TSM takeouts over the last 3 years • “Best practices” interviews on successful TSM takeouts: • Motorola - NBC • Arizona Public Service - Prudential • OCLC - NY Life • Toyota - Visa • Humana - Wells Fargo • Lexmark • Interviews with VERITAS employees from IBM • Research IBM current priorities, sales practices and pricing • In depth research on TSM on mainframe • NetBackup synthetic backups vs. TSM incremental forever

6. Completed Activities & Deliverables • Consolidated assessments and proposals that have been successfully used for TSM takeouts • Interviews with current and former TSM customers • “The Business Case for VERITAS”: NetBackup Sales Kit • Playbook which maps NetBackup, VERITAS solution, and VERITAS company features/benefits to business value for CIO, CFO, Director IT, Storage Administrator, other roles • Distributed to entire North American field at Americas Sales Conference • Best Practices in Taking Out TSM: presentation at Americas Sales Conference

7. Top Reasons for TSM Takeouts • Poor recoverability of data – largest reason by far • Lost data • Unacceptably long restore times • Cost to scale up as requirements grow • More backup servers • More administrators • More disk and network infrastructure • Inability to meet backup windows • Poor database support • No incremental forever • Poor support from IBM • Especially with STK libraries and Gresham drivers

8. Successful TSM Takeouts • MYTH #1: “The way to displace TSM is via the backup administrators” …. NOT! • Successful account teams have worked around, behind, above the TSM administrators, not with them • TSM feels like job security: lots of scripting, lots of manual intervention, getting TSM to work well is an art • TSM admins will call in IBM to help fight off the challenge from VERITAS – you want to prevent/avoid this for as long as possible

9. Successful TSM Takeouts • Impetus for change has come from outside or above the administrators: In IT management, from business units • Management is often aware of the high cost of TSM • Management hears the complaints from users regarding failed backups, failed restores, unacceptably long restore times • Successful account teams have found coaches and champions outside the backup group per se • Customers who are experiencing failures with restores or audits often will not tell you • Focus on identifying larger IT objectives, then talk about how VERITAS can meet those objectives • Find out if the company has formalized SLAs for protection and recovery • Probe business units, DBAs for satisfaction levels

10. Successful TSM Takeouts • Start your campaign with an application group or business unit with independent decision-making power, where we can bring unique benefits • Fly under IBM’s radar • Build a track record of success among business units before the final assault on the data center • Ultimately your pitch to take out TSM completely will be the benefits of standardizing on a single backup solution … and only NetBackup can meet all the requirements the customer has

11. Successful TSM Takeouts • When you do get on IBM’s radar, understand how to work the IBM account team • MYTH #2: “The IBM Rep” • In reality, there are many! Understand their agendas: • Account exec: Overall revenue to IBM, overall customer satisfaction. Can be your friend • Software account manager: Software revenue to IBM. Not a friend • Server/hardware rep: Server revenue to IBM. Can be your friend. • TSM rep: TSM revenue to IBM. Definitely not your friend. Good news: In short supply in 2004

12. Baskets of OpportunitiesLook for these cues for possible TSM replacements • When IBM recommends more hardware to solve a backup or restore problem • When TSM sites are not using collocation • Lengthy restore times are virtually guaranteed • Additional storage hardware strongly recommended • When more than 50% of data is within a database • Highly populated file servers with small average file size • If Windows is the primary production environment, even more if the backup servers are running on Windows • When sites are using 3rd party Gresham drivers to share 349x or STK ACS libraries

13. Watch out for these trip wires…There’s more to TSM than progressive incremental backup • Role-based administration • Customizable, comprehensive policy management • Data staging to cascading to storage pool hierarchy • Disk staging is needed ONLY where multiplexing is appropriate • Excellent catalog (database) backup options • Pre-emptive process scheduler • Collocation processes can be suspended to allow for a restore • Inline copy feature can make up to ten copies to either tape or disk media

14. Conclusion • Start with the business & strategic sale, higher up in IT and in different parts of the organization • Avoid the TSM admins • Start with an application group, not the data center • Pitch NBU as a more comprehensive solution that covers a wider variety of environments and needs • Advanced Client, high-end databases, web servers, tape multiplexing and synthetics, etc. … • Technical sale should come after groundwork for business sale has been laid • Do your homework on technical differentiators • WIN!

15. ResourcesWhere to Get More Information • Project Ignite Web Page • http://prod.veritas.com/Products/vnet/html/Data_Protection/tsm_campaign.html • Specific technical info on TSM vs. NBU, also TSM pricing:http://products.veritas.com/products/companies/ibm/products.htm#tsm • ROI tool (designed for TSM takeouts): sales portal • Project Ignite info, case studies, best practices, TSM takeout list: Julie Stewart, Bill Webster and Rob O’Brien • To reach Project Ignite team:DL-MKT-Ignite