SE & IBM Strategic Alliance EMEA

1. SE & IBM Strategic Alliance EMEA Michael Hoddy Alliance Director IBM Strategic Alliance EMEA Sofia, Bulgaria 28th May , 2010

2. Energy Management Power & Control Steel Industry Schneider Electric More than 170 years of history 2008 Acquisition of Xantrex, leader in renewable energy solutions 1999 Groupe Schneider becomes Schneider Electric, focused on Power & Control 2007 Acquisition of APC corp. 1996 Modicon, historic leader in Automation, becomes a Schneiderbrand 2003-2008 Targeted acquisitions in wiring devices and home automation(Lexel, Clipsal, Merten, Ova, GET, etc.) 1991 Square D joins Groupe Schneider 2005 Acquisition of Power Measurement Inc. 1988 Telemecanique joins Groupe Schneider 2003 Acquisition of T.A.C 1836 Creation of Schneider at Le Creusot, France 1975 Merlin Gerin joins Groupe Schneider 2000 Acquisition of MGE UPS Systems 19th century 20th century 21st century

3. Key Figures 2008… IT Business Schneider Electric $3.6b revenue32%in new economies 12,000 peoplePresence in100+countries $24b revenue32%in new economies 114,000 peoplePresence in100+countries

4. Global specialist in Energy Management • Making energy: • Safe • Reliable • Efficient • Productive • Green Covering World Energy consumption A unique positioning… Energy production & transmission Energy usage

5. We are part of the Schneider Electric portfolio ITBusiness (Critical power & cooling) Industrial automation & control Renewable energy solutions Low & medium voltage power Energy & infrastructure Industry Data centers & networks Buildings Residential Building automation& security Installation systems & control(wiring devices + home automation) Solutions & servicesEnergy efficiency IT Business 14% Electrical distribution A critical element of the most comprehensive and integrated energy portfolio in the industry 57% Automation & control 29%

6. Our Global Footprint… EMEA-LAM 3,050 North America 2.400 Greater China 1,970 Design Centers Asia Pac & Japan 5,700 Manufacturing/Distribution Major Sales/Marketing Locations Over 12,000 people worldwide

7. Incorporated A history of leading innovation From product leadership… Symmetra® Science Center created to advance thought leadership of data center design & operation APC PowerChute® software revolutionizes power management Industry's first modular UPS & Matrix-UPS® is introduced & MGE™ Galaxy™ line is launched APC purchases Silcon A/S, & enters 3 Phase UPS market First 3-phase UPS by Merlin Gerin scalable, redundant UPS introduced 1999 1998 1993 1997 1981 1989 1964 Schneider Electric acquires APC and forms the Critical Power & Cooling Services (CPCS) BU including the APC and MGE UPS Systems brands Introduced, integrating power, cooling, racks, Management and service APC introduces its first (NCPI) architecture, PowerStruXure ™ APC revolutionizes cooling market NetBotz acquired by APC 2007 2002 2003 2005 … to Solution leadership

8. Solutions of the pastare not sufficient for the future “ The world’s energy system is at a crossroads. Current global trends in energy supply and consumption are patently unsustainable … But that can – and must – be altered; there’s still time to change the road we’re on … what is needed is nothing short of an energy revolution “ Source: World Energy Outlook

9. Data center governance Industry-wide movement is underway to shape policy and behavior • The Green Grid global consortium is dedicated to standards, measurement, processes, and technologies to improve data center performance • The U.S. Environmental Protection Agency (EPA) is defining data center efficiency standards (Energy Star ratings) • The European Commission’s Institute for Energy is defining a “Code of Conduct” for data center efficiency • Enterprise companies are starting to make public carbon commitments is a founding member and on the board of directors of The Green Grid Efficiency can’t be ignored anymore

10. Our 2010 Vision and Mission IT Business Unit Vision A world where we can all achieve more while using less of our common planet Mission To help you make most of your energy by providing innovative and efficient solutions and services to protect, power, cool, and manage your critical systems

11. So what’s changed since 2006 when Alliance started in EMEA ?

12. A Global Alliance for Advanced Data Center Solutions • Schneider Electric and IBM Global Technology Services have formed a strategic global alliance that couples Schneider Electric’s EcoStruxureTM architecture to take advantage of intelligent energy management that is compatible across multiple platforms and includes APC’s expertise in physical infrastructure, including power, cooling, management, racks and services of critical applications, with IBM’s consulting and systems integration professionals to deliver value added infrastructure solutions to benefit our mutual customers together • Through the alliance, customers can take advantage of the combined industry-leading expertise of APC’s solutions for physical infrastructure and IBM’s services offerings to easily and effectively deploy critical IT projects. • The global alliance is not exclusive on either organisation and is based on the growing model in the IT industry ,which has seen a lot of ‘co-opetition’ between vendors, who are both competitors and partners

13. IBM relationship evolution $100M +/yr Green Sigma Coalition Member Project Big Green, Global Launch Partnership Value HDZ SMDC IBM Netfinity integrated with APC Powerchute Alliance Project Office APC enters data center market Pilot joint solution Success in Retail Alliance Kick-Off Meeting XIV OEM Partnership IBM transformation to service provider 1995 1997 1999 2001 2003 2005 2007 2009

14. Green Data Centers by the Numbers Understanding the Motivations and Impacts • The average data center is 10 years old • 45% of data centers are more than 10 years old • 65%of data centers have power & cooling issues • 30% expect major DC facilities upgrade in next 3-5 years • 70% operate data center at 65-75 degrees Fahrenheit • 90% report energy efficient servers are important in selection Source = April 2009 Computing Infrastructure Trends: IDC 14

15. In response, we need to change the way the world designs, installs, operates, manages, and maintains data centers Data center planning and operation is under increasing pressures Rapid changes in IT technology Increasing availability expectations Energy and service cost control pressure Uncertain long-term plans for capacity or density Dynamic power variation High density blade server power/heat Data Server consolidation Center Regulatory requirements Time to value

16. IBM and Schneider Electric are in a unique position to build the complete solution offering for the customer that adds proven value and delivers benefit to meet required objectives Customer Efficiency measure tomorrow Efficiency measure today

17. Capital Expenditure "It's a very sobering feeling to be up in space and realize that one's safety factor was determined by the lowest bidder on a government contract." Alan Shepard (Astronaut 1923-1998)

18. Provide power and cooling in the amount needed, when needed, and where needed – but no more than what is required for redundancy and safety margins But we can’t manage what we can’t measure The Newest Challenge: EFFICIENCY Efficiency target:

19. Inefficiencies Create Consumption • Computing inefficiencies > More servers • Server inefficiencies > More power and cooling • Power and cooling inefficiencies > More power consumption Inefficiencies drive both power consumption and material consumption

20. How do we jointly add value to solving the efficiency problem ? Optimize Efficiencies Minimize Risk Reduce Costs Accelerate Change

21. One way to get there…The IBM Scalable Modular Data Center OVER 200 SMDCs SOLD WW with over 50% in EMEA – 40 in 2009 ,26 in 2008, 17 in 2007, 9 in 2006

22. IBM’s Data Center FamilyTMComprehensive Set of Custom and Standard Capabilities Scalable modular data center High density zone Portable modular data center Enterprise modular data center

23. Looking for a quick, easy, efficient, high density staggered build-out - Drop-in a “POD” InRow™ cooling units • Building out in increments or “chunks” • “Step and Repeat” standardization • Easy physical segmentation into a zone or cage • Easy electrical and billing segmentation • Reduction of up front costs • Targeted or variable densities – “High Density Zone” • Use of standardized and integrated components • Single source supplier

24. Our EMEA customers who believe in the Alliance & SMDC include…

25. Our EMEA customers who believe in the Alliance & SMDC include…

26. благодаря за отделеното време и интерес днес.