IBM SmartCloud Application Services: Accelerate Your Application Development and Delivery

1. IBM SmartCloud Application Serviceswhy you should care

2. Agenda • Introduction of SCAS • How is this relate to PureSystem work • Value of SCAS enablement to ISVs

3. IBMSmartCloud represents the IBM vision for cloud computing NEW! Business Process as a Service Software as a Service IBM SmartCloud Application Services Platform as a Service IBM PureApplication System Infrastructure as a Service Design Consume Deploy Cloud Enablement Technologies Managed Cloud Services Cloud Business Solutions Enables private/hybrid cloud service delivery and management Secure and scalable cloud managed services platform Pre-built Cloud SaaS business applications and solutions Proven Strategy Consulting, Migration, & Management Expertise Common Open Standards Technology and Industry Ecosystem

4. IBM SmartCloud™ Services are designed to meet enterprise needs for tailored cloud architectures, management services and control. Application services Applicationlifecycle Applicationresources Application environments Application management Integration Enterprise Enterprise+ Infrastructure platform Management and support Availability and performance Security Payment and billing Enterprise Enterprise Enterprise data center Managed private cloud Hosted private cloud Shared cloud services

5. What is Platform as a Service, or PaaS? A type of cloud service that can provide the right balance of automation for your custom solution. Traditional on-premises Infrastructure as a Service Platform as a Service Software as a Service Applications Applications Applications Applications Client Manages Data Data Data Data Client Manages Runtime Runtime Runtime Runtime Middleware Middleware Middleware Middleware Client Manages OS1 OS OS OS Vendor Manages in Cloud Vendor Manages in Cloud Virtualization Virtualization Virtualization Virtualization Servers Servers Servers Servers Vendor Manages in Cloud Storage Storage Storage Storage Networking Networking Networking Networking Customization; higher costs; slower time to value Standardization; lower costs; faster time to value PaaS offers a platform and solution stack to help improve application development and deployment economics and speed, while providing the ability to differentiate at the application layer. 1Operating system (OS)

6. Applicationlifecycle Applicationresources Application environments Applicationmanagement Integration IBM SmartCloud Application Services can help accelerate application development and delivery while reducing costs. Accelerate and optimize the deployment and management of your applications with pre-defined environments based on common application patterns Leverage shared services to help reduce the cost and simplify the development, delivery and ongoing administration of cloud applications Support more effective deployment and management of third-party applications with optimized deployment and management capabilities tuned to the specific application Integrate Deliver Deploy Develop IBM SmartCloud™ Application Services Provide development organizations with access to more rapidly activated and team-based development environments and capabilities Integrate your cloud-delivered applications with other applications or resources on-premises or in the cloud

7. IBM SmartCloud Application Services initially includes two primary services. Value Quick-adoption service for new projects, teams and clients No up-front investment to get started Self-service and online provisioning through your SmartCloud™Enterprise account Develop Deploy Deliver Collaborative Lifecycle Management Service Workload Service • Invoke shared application resources and then deploy custom application environments to run and manage your application • Proven application patterns including database, Java and Web application patterns • Integrated middleware services • Elastic resources • Manage requirements and quality • Centralize team controls and collaboration Value • More quickly design, deploy and manage consistent and repeatable middleware patterns with your application • Policy-based elastic scaling

8. Applicationlifecycle Developer workstation (image) Team development services Applicationresources Datamart database (pattern) Transactional database (pattern) Proxy service (pattern) Caching service (pattern) DBaaS1(add automated service) NoSQL as a Service (pattern) Application environments PHP environment Java Virtual system pattern Web application Mobile Service or application pattern available in Release 1 Complementary IBM offerings Application management SAP Roadmap of future services This is not a commitment to specific services. Integration Integration as a Service via Cast Iron aaS IBM has a clear roadmap of platform as a service capabilities and a vision for scaling out cloud-enabled and cloud-nativeservices. 1Database as a service (DBaaS)

9. Agenda • Introduction of SCAS • How is this relate to PureSystem work • Value of SCAS enablement to ISVs

10. Patterns of Expertise: Proven best practices and expertise for complex tasks learned from decades of client and partner engagements that are captured, lab tested and optimized into a deployable form What is a Pattern? • The pre-defined architecture of an application • For each component of the application (i.e. database, web server, etc) • Pre-installation on an operating system • Pre-integration across components • Pre-configured & tuned • Pre-configured Monitoring • Pre-configured Security • Lifecycle Management In a deployable form, resulting in repeatable deployment with full lifecycle management Delivering superior results: • Agility: Faster time-to-value • Efficiency: Reduced costs and resources • Simplicity: Simpler skills requirements • Control: Lower risk and errors

11. A quiz: what is common among all of these?

12. Now the IBM story: what is common among those IBM SmartCloud Application Services Speed, elastic deployment to IBM hosted cloud services IBM PureSystems Expert integrated systems combine the flexibility of general purpose systems, the elasticity of cloud and the simplicity of an appliance. IBM Workload Deployer Speeds application deployment to cloud and virtualization environments ? PureSystem Pattern

13. PureSystem pattern is fully portable on SmartCloud PureSystem Pattern Patterns SaaS Optimized App Deployed Policies Scaling Failover Load-Balancing Security Monitoring Application Registries Schema Database Web Server Runs on Workload Delpoyer technology ApplicationLifecycle ApplicationResources Application Management Workload Services Integration SmartCloud App Service Components A pattern captures the ISV solution’s platform/infrastructure dependency and implement them with built-in expertise Infrastructure as a Service (SCE)

14. Enterprise PHP workload Your ISV workload Java Enterprise workload Auto scaling, fast dependable Auto scaling, fast dependable Auto scaling, fast dependable Enable once, deploy to both private and public clouds PureSystem Pattern offers ISV maximum flexibility to enable ISV solution on cloud + What: Select your solution focus How: Select how to optimize Virtual Appliance Virtual System Pattern Virtual Application Pattern Business processes System processes Application processes Private Cloud Public Cloud Where: Select where to run your cloud enabled solution Client-managed Service Level Agreements IBM-managed Service Level Agreements IBM PureFlex System IBM PureApplication System

15. SmartCloud and PureSystem share the same Pattern technology High SCAS Virtual App Pattern Easily build and configure application patterns, and rapidly deploy into private cloud PureApp System SCAS Business model flexibility Virtual System Pattern Middleware Image Virtualization Integrated middleware combined into patterns representing middleware workloads PureApp System SmartCloud Enterprise Virtual Appliance Server Image Virtualization SmartCloud Virtualized infrastructure leads to creation of “virtual” software images PureFlex System Low PureSystem Low High Standardization & Automation

16. IBM PaaS Progression Path – Application Patterns Sell your software as a service (SaaS) Deploy software to IBM Clouds from catalog Make your app cloud centric and enable usage based biz model • Customer buy your provisioned app/services and use it right away • Maximize your infrastructure utilization through multitenant deployment on a single app instance • Leverage cloud centric DevOps to enable SaaS billing and metering without writing your own code • Lowest cost to scale • Automated provisioning, authentication, metering and billing Create a Pattern Ready for Ready for PureSystem SmartCloud Enterprise grade private and public cloud • Customers buy your app and deploy app to their private/public clouds in <1 hr • Common workload deployment technology enabling seamless integration and cross clouds portability. Enable once, deploy anywhere • Rapid deployment of applications, databases, and services • Providing industry’s best SLA and HA and disaster recovery. Adopt PureAS PaaS • Simplified middleware consumption support wide range of programming languages • Enterprise class auto scalability and reliability • Built in enterprise computing best practice

17. Pricing model is based on expected cloud consumption • Self-serve model • Customer adds services and workloads as needed • Ala carte model • • Discrete services can be used independently or collectively • • Separately priced • Service price is all inclusive  • • Pay As You Go: SCE resources used and software needed and other GTS services are bundled in the SCAS price (and not separately visible to the customer) • • Bring Your Own License: utilize traditional software licenses and the customer just pays the price for the automated service. • Consumption-based model • Charging Approach Is “Fit to the Service”: • Workload Service – flat charge for tools/mgmt environment • Collaborative Lifecycle Management Service per user per role per month • Workload (Patterns) - charged by “scaling units” (all inclusive of software, automation and infrastructure. • Tiered pricing (Small/Medium/Large) • Pay for the service for a period of time • Hourly or Monthly charging

18. Agenda • Introduction of SCAS • How is this relate to PureSystem work • Value prop to ISVs and next steps

19. SCAS extends value ISV gained from PureSystem pattern creation Develop faster Deploy faster Monetize faster 19

20. IBM PureSystems presents a unique opportunityGain flexibility and enhance cloud adoption, delivery and resiliency Public Cloud OPEX IBM-managed Service Level Agreements Application development and testing flexibility Develop on IBM SmartCloud Application Services and deploy on IBM PureApplication System Cost-optimize hybrid cloud computing strategy Run applications across IBM PureSystems and IBM SmartCloud Services based on application requirements Enhance resiliency of IBM PureSystems infrastructure Automated, cloud-based recovery services, practically eliminate business downtime1 with IBM SmartCloud Virtualized Server Recovery Private Cloud CAPEX Shared technology Client-managed Service Level Agreements 1 near-zero RPO (Recovery Point Objectives) and shorter RTO (Recovery Time Objectives)

21. IBM SmartCloud™ Application Services addresses a variety of needs.

22. Competitive view: SCAS provides benefits at the enterprise application and department levels – competitors are lacking in some areas • Application-level benefits • Robust application development tools, Middleware, On-boarding, ALM, Workflow • Supports J2EE environment • Concept of patterns to reduce potential errors in configuring applications for cloud • Embraces Dev/Ops concept to reduce siloing and friction in application development and deployment • Department-level benefits • Accelerated department level application development and deployment • Create / integrate new technologies / products into eCommerce applications • Enhance end user interface, application performance, information security • Develop and deploy enterprise workloads across a wide variety of business processes • Competitive PaaS offerings fall short in key areas: • Amazon – Extremely limited support; only provides basic PaaS tools, requires deployment of a partner’s PaaS for all but basic development / deployment / management needs • HP – Has an ecosystem of capabilities but not a well-articulated roadmap; offers a customized mix-and-match approach, not standardized • VMware – middleware not included – VMWare’s vFabric Cloud Application Platform starts at application tools (virtualized existing components for J2EE) • Oracle – no experience other than their own. Static images with little/no autoscaling. • Microsoft – partner enabled support – Enterprise Java capability not proven • SalesForce.com - Focus is solely on building apps that include built-in social and mobile functionality, business processes, reporting, and search 22

23. Next steps: talk to your ISV to port PureSystem pattern to SCAS: • Apply for a SCE account • Import your pattern Fastest Virtual System Pattern Virtual App Pattern A little bit more work, but gives you more flexibility In most cases, no engineering effort needed If your pattern contains custom image, regenerate your custom image using ICCT Import your pattern using CLI tool, check the images your pattern points to are already in SCAS Deploy ISV work steps (2-4 weeks) • Import your pattern to your SCAS Cloud app builder using GUI • Deploy