1. Richard Baird
IBM, Vice President, WW WebSphere Technical Sales and Competitive Initiatives
Capabilities for efficient & effective
Government digital transformation
February 26, 2014
© 2014 IBM Corporation

2. Our integration needs are expanding and growing…
Systems of Interaction
Systems of Record
2
Systems of
Engagement

3. What
are
Systems
of
Engagement?
Focus on getting
closer to citizens,
empowering
Government
Deaprtments to deliver
superior service, and
leveraging intraGovernment
relationships to
create more value
Gov’t Dept
Citizens
Intra-Gov’t
Social data
Web apps
Cloud SaaS
apps
Location
based apps
3
Mobile apps
Internet of
Things

4. When
Systems
of
Engagement
are
unplugged
they’re
not
very
engaging…
Example: Customer uses Mobile app to interact with Government Services
ü
ü
ü
ü
ü
4
Can
see
my
tax
return
Can
find
my
address
Can
see
passport
form
Can
check
flight
status
Can
see
car
speeding
fine
û
û
û
û
û
Can’t
change
my
tax
return
Can’t
change
my
address
Can’t
submit
passport
form
Can’t
change
flight
Can’t
pay
car
speeding
fine

5. Systems
of
Interac=on
§ Bridge tomorrow’s innovations with those powering the businesses today
§ Bring together Systems of Record, of Engagement and Internet of things
§ Shift toward ‘as a service’ approach for IT to deliver value to the business
§ Transform insight into rich, pattern-based interactions, transactions, processes
Systems of Interaction
5

6. “Simply good design” principles
§ Service orientation at the core
§ Process integrity at internet scale
§ Integration with enterprise capabilities and
back-end systems
§ Based on industry standards
§ Leveraging and extending open source
technologies
§ Providing the platform for a growing
ecosystem
“The beauty of SOA…is that we can change our components as needed, seamlessly…it
might be a business process or a whole new business model.”
-Phil Mumford, CEO, Queensland Motorways
“Make SOA a prerequisite architecture. It's time to breathe new life into your SOA
initiative, this time by focusing on architecture instead of technology.”
-Gartner Application and Integration Platforms Key Initiative Overview July 22, 2011
6

7. IBM Systems of Interaction Portfolio
Industry
PaEerns
Decisions
&
Analy=cs
Rules
Situa=ons
Internet
of
Things
Analy=cs
Business
Process
Human
Tasks
Workflow
Service
Dev
Ops
Build
Service
Service
Collaborate
Service
Integra=on
Bus
Transform
Route
Choreograph
Manage
Govern
Mobile
Integra=on
Gateway
Secure
Cloud
Scale
Connect
Messaging
Deliver
APIs
Social
&
Web
Partners
Hos=ng
Applica=on
Founda=on
Systems
of
Record
7
Data
Systems
of
Engagement

8. Delivering
Systems
of
Interac=on
Integra(ng
Systems
of
Engagement
and
Record
Control and
manage services
Systems of Interaction
Scalable and
robust
applications
Build, run and test
Mobile applications
Integrate virtually
any applications
Expose APIs to drive
innovation
Synch SaaS and
On Premise data
8
Integrate and secure
across boundaries
Real-time awareness
from Mobile &
Internet of Things

9. Major
US
Police
Department
improves
responsiveness
of
911
Emergency
Services
Unit
Need
• Get
the
latest
informaCon
to
officers
in
real-­‐Cme
to
improve
responsiveness
and
safety
• ExisCng
HTTP-­‐based
soluCon
was
slow
and
did
not
push
informaCon
to
officers
Benefits
• New
Mobile
applicaCon
deployed
in
vehicle
built
with
IBM
WorkLight
• High
speed,
Low
latency
noCficaCon
delivered
over
MQTT
via
IBM
MessageSight
• Ensures
Cmely
delivery
of
relevant
data
to
officers
9
9

10. St
Jude
Medical,
improved
pa=ent
care
with
real-­‐=me
medical
device
analy=cs
Need
• Physicians
needed
beNer
monitoring
of
cardiac
paCents
• Improve
efficiency
of
checkups
• Meet
healthcare
data
capture
standards
Benefits
• Enables
higher
level
of
paCent
care,
early
diagnosis
of
problems
and
peace
of
mind
• Improves
administraCve
efficiency
and
maintenance
• Helps
conform
to
standards
and
ease
integraCon
of
data
10
10

11. IBM MobileFirst offering portfolio
Industry Solutions"
Insurance"
Retail"
Transport"
Telecom"
Government"
Automotive"
IBM & Partner Applications"
Application Services"
Application Platform and Data & Data Platform"
"
"
Management"
"
Security"
Analytics"
"
Devices"
Network"
Cloud & Managed Services"
11
Healthcare"
Servers"
Development & Integration Services
!
Strategy & Design Services
"
Banking"

12. Rapid multi-platform development using a single shared codebase
To the simplicity of one
From the complexity of many…
• Multiple sets of tools & frameworks
• Four codebases to develop and maintain
Apple
12
Android
Blackberry
• One development environment
• One codebase to develop and maintain
Windows
Apple
Android
Blackberry
Windows

13. Mobile services simplify how developers build apps using the
breadth of MobileFirst
Provide a platform experience for MobileFirst content
§ Enable developers to glue together services that span the breadth of the
MobileFirst portfolio via APIs
§ Support for mobile applications on-device or hosted mobile web scenarios
§ Common cloud-based on-boarding of mobile applications and solutions
Systems of Interaction
Composition
Differentiate with mobile access to data through
deep backend integration
§ Simplify mobile integration with enterprise systems of record
§ Mobile-optimized API access to System Z, WebSphere,
business process, and enterprise data
WebSphere
Application
Server
Cloud-based
Services
Business
Process
Manager
Mobile-Optimized
APIs
Enterprise Data
Cloud APIs
On-Premise Enterprise APIs
13
Mobile-Optimized
Systems of Record
Integration
Relational,
Big Data, etc.
System Z
ZConnect

14. Municipality of Venice
Enabling smarter tourism
The Need:
The city of Venice, Italy, wanted to improve the experience of its many tourists,
while enhancing the lives of its citizens. It wanted to find a cost-effective way to
use existing technology to guide tourists throughout the city, and into less trafficked
areas to stimulate business there, and better manage the flow of tourists in the city.
The Solution:
IBM launched a pilot of a solution called The TagMyLagoon. It is based on IBM
Human Centric Solutions open architecture framework that allows users anywhere,
anytime to access information about tourist destinations, traffic, accommodations
etc., using their own wireless devices, and on the city’s existing WiFi network. The
Passive sensors were placed on select locations around the city, denoting points of
interest. A user simply takes a picture of a place of interest using his or her mobile
phone and the system automatically pushes contextual information and prompts to
the user.
“We anticipate that the
solution will help the
Municipality propel tourism
and improve the quality of life
for both citizens and tourists
of Venice.”
— Michele Vianello, Deputy Mayor,
Municipality of Venice
Solution components:
What Makes it Smarter:
§ IBM Business Analytics
Optimization
§ TagMyLagoon solution allows users to interact with sensors and devices, helping
§ IBM MobileFirst
the city to locate and guide tourists, as well as measure, control and eventually
predict and optimize tourist flows and routes
§ Uses the existing network, the mobiles owned by the users, and a simple
localization system resulting in low maintenance and high mass market diffusion
14
§ IBM BPM
§ IBM System X

15. Social business begins with the industry-leading platform
Smarter Workforce
Smarter Commerce
Exceptional Customer Experience
IBM Employee Experience Suite
Kenexa Talent Management Suite
Social Networking
IBM Connections
IBM Notes & Domino Social
Edition
IBM Sametime
IBM Customer Experience Suite
Social Analytics
Social Content
IBM Social Analytics Suite
IBM Enterprise Content
Management
Social Integration
IBM WebSphere Portal
IBM Web Content Manager
Deployment Options
IBM SmartCloud for Social Business
15
Dedicated Private Cloud
On Premises
Hybrid

16. An Association of Municipal Governments"
What if local governments could share knowledge and best practices to create smarter cities? !
A Canadian association representing municipal governments is modeling the business of government, enabling multiple cities and city
departments to exchange leading methods for delivering services efficiently and effectively within shrinking budgets. "
The Opportunity!
With close to 75% of Canadians living in
cities, an association representing municipal
agencies and local governments needed a
solution to help metropolitan areas gain
insights and share ideas on operating more
efficiently and spending more wisely. "
What Makes It Smarter!
Cities, like people, can improve the way they operate, simply by talking to
!
each other. An association of municipal governments is using a modeling
toolset to foster collaboration between cities using a common structure and
terminology that makes it easy to compare the costs of services. Exchanging
information on best practices points out which processes are the most
effective and efficient. This gives cities the insight they need to take action
that can improve service quality while cutting costs. The cities can then map
services to business applications for faster, simpler implementation. "
Real Business Results!
– Cut costs by eliminating duplication of services"
– Created greater integration and collaboration of services, enabling smarter
allocation of resources"
– Determined common performance measurement across municipalities to
discover best practices in service delivery"
Solution Components!
• IBM Connections"
• IBM Rational System Architecture"
• IBM Government Industry Framework"
16
“A smart city makes well-informed decisions in order to
provide services to residents in the most efficient and costeffective way possible. We create smart cities by allowing
departments to freely share information, ideas and best
practices.”!

17. Typical Process Challenges without BPM
Customer!
Service!
Account!
Administration!
Executive!
Management!
1
3
6
1
1. Unstructured Tasks and
Communication (ex
Paper or email)"
2
2. Inefficient Working
Environment Spans
Systems"
3
3. Inconsistent
Prioritization"
Invoice!
Reconciliation!
Teams!
4
4. Incomplete or
Inaccurate Data Flow
Between Systems"
2
4
5
Finance
and Ops!
5
5. Lack of Control Over
System and Business
Events (Exceptions)"
6
6. Poor Visibility Into
Process Performance"
"
17

18. BPM Brings Order to the Chaos
Finance!
and Ops!
Executive!
Management!
Reduce errors and
improve consistency"
3.
3
Standardize resolution
across geographies"
Leverage existing
systems and data"
Monitor for business
events and initiate actions"
6.
6
Customer!
Service!
2.
2
5.
5
Risk Management
Teams!
Automate workflow &
decision making"
4.
4
Account
Administration!
1
1.
Real-time visibility and
process control"
Customer Benefits:"
ü Huge Reduction in Manual
Work, Errors"
ü Faster, More Consistent
Issue Resolution"
ü Easier to Manage the
Business"
18

19. New York State Department of Taxation and Finance
What if we could use analytics and process improvements to prevent questionable refunds and optimize tax collection?!
Using data, improved processes and analytics is the best way to keep taxpayers doing the right thing.
The Opportunity!
Because the process to detect questionable
refunds was mostly manual, without the
necessary case information available for
auditors and a limited ability to detect fraud
schemes, New York State Tax was losing
millions of dollars every year in tax refunds.
Once refunds were issued, efforts to recover
“pay and chase” refunds often proved fruitless.
Likewise, the State was losing millions of
dollars in delinquent tax collection because
other credit collectors were applying
technology to their collection efforts, allowing
them to reach available funds first (whoever
gets to available funds first usually has the best
chance of being paid). "
Solution Components!
What Makes It Smarter!
New
on analytics: one
! York State Tax created two new systems based collections. On theto detect
questionable returns, and one to optimize delinquent
questionable returns, predictive analytics are now built directly into the case
processing stream so they can preemptively identify questionable tax returns. They
can now identify questionable refund requests with a high degree of accuracy,
stopping checks before they go out the door.
The collections solution also applies the power of analytics to help determine
optimal actions for cases, while providing the right case information and tools to the
appropriate teams. The system also takes into account expected rewards, account
resource mix and the costs associated with possible actions, thereby optimizing the
agency's resources as well as its delinquent tax collection.
Real Business Results!
§ Reduced questionable refunds $1.2 billion by detecting problems before they issued
refunds; an additional $400 million is projected for 2011."
§ Using optimization algorithms, they increased delinquent tax collection by $100
million."
§ Increased criminal tax fraud investigations by over 350%."
§ Reduced mailing costs associated with recovering refunds by 30%; the time to
process exceptions by 60%. "
§ Fostered a stream of new ideas for improvements through predictive modeling."
• IBM Tax Audit and Compliance System (TACS), IBM Tax
Collection Optimization System (TACOS)"
• IBM DB2® 9 for Linux®, IBM WebSphere® MQ Workflow, IBM
WebSphere Application Server, IBM InfoSphere® Identity
Insight, IBM InfoSphere DataStage, IBM WebSphere Process
Server, IBM WebSphere Business Monitor"
• IBM Global Business Services® – Business Analytics and
Optimization, IBM Research"
19
Leadership is… Providing a new perspective!
“My experience with data and developing audit applications made
it obvious to me that our future was in analyzing data to identify
noncompliance and pushing the results to the staff with the
necessary skills to work the case.”!
Nonie Manion, Director of Tax Audits!

20. IBM BPM provides social intelligent dashboards
ü Incidents
Reported,
Gather
and
correlate
process
metrics
and
business
data
for
con(nuous
improvement
1.
Single
BPMN
model
drives
monitoring
as
well
as
execuCon
2.
Data
analysis
performed
conCnuously
on-­‐the-­‐fly
3.
Real-­‐Cme
visibility
to
tasks,
SLAs
that
may
be
in
jeopardy
20
§ Social,
Ac=onable
Coach-­‐Based
Dashboards
provide
visibility
into
work-­‐in-­‐progress
and
the
ability
to
take
correcCve
acCon
when
necessary

21. Advanced Business Monitoring
Identify trends,
forecast events,
make smart
choices
Understand up-tominute business
performance by
monitoring KPIs
Detect,
respond rapidly
to change
Customize
dashboards
easily
Continuously
improve key
business
processes
Rebalance human
workload on the fly
Leverage
mobile
devices
21
21

22. US Department of Justice (DOJ)
Real-time financial management facilitates smarter government spending
The Need:
The financial management of the U.S. Department of Justice functions through
core disparate, non-integrated systems, within each of the Department’s
Component organizations. Lack of central visibility into the Department’s financials
make it difficult to find and allocate funds for critical needs. For instance, in 2005, it
took almost two months to identify available funding needed to support Hurricane
Katrina-related initiatives.
The Solution:
The Unified Financial Management System (UFMS), implemented by IBM Global
Business Services, will be the core standard financial and acquisitions solution for
DOJ. IBM is helping DOJ Components build upon the UFMS core to develop
Component-specific workflows, reports, interfaces, business processes and
reference data to meet their business needs. As part of the UFMS solution suite,
the UFMS Dashboard provides near real-time data and analytics and “at-a-glance”
information to Department managers.
What Makes it Smarter:
§ Available Department funding will be quickly identified, analyzed and directed
towards time-sensitive initiatives, such as hurricane relief efforts, replacing
processes that currently takes weeks
§ Enables DOJ to exercise near real-time, centralized financial management
oversight, resulting in more accurate and timely responses to Congressional and
White House requests
§ Tailored reports on specific spending items will allow for instantaneous
knowledge on information most critical to the Department, ultimately improving
managerial decision-making
22
“UFMS will provide a single
reporting system for decision
making, enabling the
Department and its
Components to make smarter
financial decisions.”
— Ken Klaus,
UFMS Deputy Program Manager,
Department of Justice
Solution components:
§ IBM Global Business
Services: GBS Financial
Management: Finance
Enterprise Applications
§ IBM WebSphere Business
Modeler
§ IBM Cognos 8 BI

23. Decision Visibility Comparison
Both
content
and
Proper=es
changes
are
tracked
Graphical
difference
display
The
item
selected
in
the
summary
is
automa=cally
highlighted
23
23

24. A tax collection authority in Latin America!
!
What if a country could raise tax revenue by 8 percent with a simple questionnaire? !
The federal tax collection authority in one Latin American nation turns 7,000 tax business rules into simple 30- to 60-item online
questionnaire, enabling the country to earn more revenue, see who is paying their taxes, and crack down on evaders
The Opportunity
What Makes It Smarter
One Latin American nation has long struggled to
collect federal tax revenue from its citizens. Despite
having more than 25 million taxpayers on its rolls, tax
revenue comprised only 10.4 percent of the country’s
gross domestic product. In contrast, the average
among Latin American countries is 20 percent, with
some countries taking in much more revenue than
that. Part of the reason tax revenue was low was that
the complexity of the tax code—with more than 7,000
tax-related business rules and policies that were
constantly changing—made it difficult for taxpayers to
calculate what they owed, much less pay it. The
country needed a simplified, accountable way for
taxpayers to register with the government and
calculate taxes.
No average taxpayer can navigate a tax system with more than 7,000 business rules that
change constantly. However, most taxpayers can answer a simple questionnaire. A federal
tax-collection authority in Latin America used business rules management to integrate those
thousands of rules into a 30- to 60-item questionnaire. Taxpayers can register and answer
the questionnaire on a web portal. The questionnaire dynamically determines questions
based on previous answers, and based on answers, the rules engine behind the scenes
calculates taxpayer status, amount of tax owed, and provides feedback and guidance to
taxpayers about next steps. Tax status is easy to adjust, as is the questionnaire when tax
laws and policies change. Since implementing the portal, tax revenue is up 8 percent, the
country has registered a half million new taxpayers, and the cost of tax collection has gone
down. What’s more, for the first time, the country has an accurate electronic record
containing data on taxpayers and taxes paid that it can use to find tax evaders and lost
revenue.
Real Business Results!
• Increased tax collection revenue by 8.1 percent income-tax revenue by 12.9 percent
• Grew the tax percentage of the GDP by 4 percent, the largest growth in 13 years
• Added 544,000 new taxpayers to the database, with most self-registering
• Reduced the cost of tax collection from 1.5 percent of each peso collected to 0.9 percent
Solution Components!
•
ILOG JRules
• IBM Software Services - Software Accelerated Value Program
IBM®
24
WebSphere®
So much revenue was falling through the cracks
because of confusion about the tax code. This solution
simplifies the tax collection process and helps ensure
that people pay their fair share. !

25. Kingdom of Saudi Arabia
Transforming citizen services to improve quality of life
The Need:
With most government processes delivered manually, agency staff found it could
take days and weeks to respond to citizen inquiries. The Kingdom of Saudi Arabia
sought to replace these cumbersome, time-consuming processes, with anytime,
anywhere services that would improve its interaction with citizens.
The Solution:
Working with IBM and IBM Business Partner Saudi Business Machines, the
Kingdom of Saudi Arabia implemented a new communication and security
infrastructure that automates business processes, increases agency collaboration
and provides citizens with online, voice and mobile device access to government
services. Based on a service oriented architecture, nearly 1,000 processes,
including unemployment services, work permits and government payments will be
deployed as anywhere, anytime electronic services.
What Makes it Smarter:
§ Fundamentally transforms the interaction between the Saudi government and the
people to help to improve quality of life for citizens
§ Anywhere, anytime access enables government to reduce response time from
several days to minutes
§ Greater collaboration improves efficiency of government agencies and increases
staff productivity
“IBM is helping us realize our vision
for smarter government, dramatically
simplifying citizens’ interactions with
government agencies while
increasing overall efficiency.”
— Kingdom of Saudi Arabia
Solution components:
§ IBM® DB2®, IBM Rational® Software,
IBM Tivoli® Security Solutions,
IBM Tivoli Automation Solutions,
IBM WebSphere® Software,
IBM WebSphere DataPower® SOA
Appliance
§ IBM System p®, IBM System x®, IBM
HTTP Server
§ IBM Global Business Services, IBM
Global Technology Services, IBM
Software Services for WebSphere,
IBM Internet Security Services,
IBM Research
§ IBM Business Partner Saudi Business
Machines
MAM NUMBER
25

26. IBM Pattern Engine Strategy: A Foundation for Cloud Applications
Lifecycle
Software
…
Integrations
Accelerators
Clients Need…
Smarter
Process
Dev Test
Tooling
Business
Analytics
DevOps
Mobile
Social
Big Data
Cloud Services
Built With…
Enhanced open
standards support
Composed From…
TOSCA
Pattern Engine
CloudOE
CloudOE
Deployed Into…
Private
26
Hybrid
Public

27. A new family of expert integrated systems
For
clients
seeking
an
integrated
approach
to
their
infrastructure
plaorm
§ Integrated
Infrastructure
System
with
built-­‐in
infrastructure
paNerns
§ Factory
integraCon
and
management
of
compute,
storage,
networking,
and
systems
infrastructure
§ Cloud-­‐ready
infrastructure
§ Entry
configuraCon:
For
Power
• 8
cores
• 64GB
memory
• 5.2TB
of
storage
For
x86
• 4
cores
• 8GB
memory
• 2.8TB
storage
27
For
clients
seeking
an
integrated
approach
to
their
infrastructure
plaorm
and
their
middleware
plaorm
§ Integrated
ApplicaCon
Pla^orm
with
built-­‐in
infrastructure
and
pla^orm
paNerns
and
support
for
applicaCon
paNerns
§ Factory
integraCon
and
management
of
both
the
infrastructure
and
middleware
pla^orms
§ Cloud-­‐ready
applicaCon
pla^orm
§ Fully
enCtled
middleware
pla^orm
including
DB2
and
WAS
§ x86
and
Power
configuraCons:
• 32-­‐608
cores
• 500
GB
memory
• 22-­‐56TB
storage

28. Focused on infrastructure flexibility
Non-­‐
virtualized
workloads
Virtualized
workloads
(virtual
appliance,
systems)
ApplicaCon
pla^orm
from
IBM
and
partners
Client
Star=ng
Point
Client/partner-­‐tuned
applicaCon/
middleware
workloads
Infrastructure
§ Integrated
server,
storage,
network
Expert
Integra=on
28
§ Power
management
§ Storage
and
VM
OpCmizaCon
§ Provisioning
§ Security
§ Infrastructure
lifecycle
management
§ System
design
§ Infrastructure
paNerns
§ …and
more
Focused on application time to value
Virtualized
workloads
(virtual
appliances,
systems)
ApplicaCon
paNerns
from
IBM
and
Partners
Applica'on
Pla,orm
§ Middleware
integraCon
and
opCmizaCon
including
DB2
and
WAS
§ ApplicaCon
aware/centric
management
provisioning
§ AutomaCon
self-­‐service
§ Caching
and
elasCcity
§ Usage
metering
§ License
management
§ ApplicaCon
Security
§ Monitoring
§ IT
lifecycle
management
and
maintenance
§ Pla^orm
paNerns
Infrastructure
• Built
in
experCse
• Infrastructure
management,
monitoring,
and
virtualizaCon
§ Integrated
server,
storage,
network
§ Power
management
§ Storage
and
VM
OpCmizaCon
§ Provisioning
§ Infrastructure
Security
§ System
design
§ Infrastructure
paNerns
§ …and
more
• Built
in
experCse
• Pla^orm
management,
monitoring,
and
virtualizaCon
Client
Star=ng
Point
Expert
Integra=on

29. IBM PureApplication System patterns of expertise add unique value
Labor Hours Spent*
10000
How does PureApplication
System do this?
9612 hrs
Deployment
§ Patterns of Expertise
Incident/capacity Mgmt
Asset Management
Security Management
Change Management
5000
110%
More
76%
Less
153%
More
5815 hrs
4843 hrs
2302 hrs
0
Do It Yourself
PureApplication System
Coalition
Competitor
Pre-integrated
Competitor
*Note: Coalition competitor used 9 competitor blades (144 cores). Pre-Integrated competitor used 18 pre-integrated
nodes (288 cores). IBM PureApplication System used 3 nodes (96 cores). Each system has the capacity to run 72
workloads where each workload can sustain a peak throughput of 1720 page elements per second.
This is an IBM internal estimated labor study based on modeling customer data on IBM hardware and software solutions and on competitor converged solutions designed to replicate typical
IBM customer usage in the marketplace. It is not a benchmark. As such, customer applications, differences in stack deployed and other systems variations may produce different results
and may vary based on actual configuration, applications, specific queries and other variables in a production environment based on published standard labor rates for IT staff.
29

30. Sample virtual application – pattern to instance
Virtual Application Pattern
Scaling Policy
Application
deployer
Application
Functional requirements
Non-functional requirements
Proxy
Service
Proxy
Service
WebSphere
Application
Server
WebSphere
Application
Server
Existing user
registry
Routing Policy
Application
Monitoring,
Life cycle
management
Existing
DB2
Existing
LDAP
WebSphere
Application
Server
Caching
Service
30
Existing
Database
Caching
Service

31. Virtual Application Builder using IBM pattern engine
Drag assets onto the
canvas to define
application and
related resources
31
Define cross-component links and add
policies; respond to warning messages
to build well-formed applications
Specify configuration
details for components,
policies, and links

32. PureApplication on SoftLayer
Dynamic Hybrid Capabilities speed transition to Public Cloud
Client Value
Client Need
ODM
• Rapid application
and middleware
deployment
• Re-use of existing
on-premise
investments
• Off-premise
economics with onpremise control
Business
Intelligence
Worklight
WAS, Java
Network
32
Agility via pattern
modularity
•
Simplicity
Flexibility via
pattern re-use
Cost Savings
DB2
on Pre-Integrated Systems
on BYOH*
Storage
•
•
Exposed as
Cloud OE
Service
Portal
Time to value
•
Compute
•
BPM
Orchestration

33. IBM contributions to Open Source go back 10+ years
1999 - 2001
§ IBM forms Linux
Technology Center
§ Leads Apache
projects Xerces
(XML4J), Xalan,
SOAP
2002 - 2003
2004 - 2006
2007 - today
§ Linux contributions to
scalability (8-way+),
reliability (stress
testing, defect mgmt,
doc)
§ IBM and Novell/SUSE achieve
security milestone (EAL4+ and COE
compliance)
§ IBM leads Open AJAX initiative and
announces partnership with the
Dojo Foundation
§ Leads Apache
projects: Web
§ Creates OSI-approved Services (WSIF and
IBM Public License
WSIL), Pluto (Portlet
API) and WSRP4J
§ Strategic participation
(Remote Portal)
in Mozilla
§ Leads Eclipse
§ IBM becomes
projects GEF
founding member of
(editing), EMF
OSDL
(modeling), XSD
§ Founder of Eclipse.org (XML Schema),
Hyades (testing),
and Eclipse
Visual Editor, AspectJ,
Consortium
Equinox rich client
§ Creates internal
§ Globus Toolkit
bazaar using OSS
contributions for
methodology
OGSA, OGSI
33
More than 1000 IBM developers
involved in OSS projects
§ Leads Apache Tuscany project
§ Eclipse Foundation, Inc. becomes
independent - IBM contributes UML2, § Contributes code for security
Voice Tools, Aperi, COSMOS, Ajax
management to Eclipse Higgins
Toolkit Framework
§ IBM contributes to Apache Lucene
project and announces OmniFind
§ Globus Toolkit 4 is WS-I compliant
Yahoo! Edition
§ Pledged 500 patents to open source
§ IBM joins OpenOffice.org
§ Partner with Zend PHP
§ IBM joins Open Health Tools,
moving code for medical record
management from Eclipse OHF
§ IBM enhances Apache partnership
- Contributes Derby database
- Contributes voice recognition
- Supports Geronimo J2EE project
- Acquires Gluecode for skills
§ IBM contributes accessibility code to
Firefox
IBM leads 80+ OSS projects
§ Contributes Open Services for ALM
– Jazz REST Services samples
§ IBM creates ODF Toolkit Union
§ Contributes Lotus Notes/Domino
app templates to OpenNTF.org
§ Incubates Apache Wink (JAX-RS)
IBM contributes to 150+
OSS projects

34. WebSphere takes advantage of the Open Source
Apache
Aries
34

35. IBM’s approach delivers innovation and flexibility
Leverages 100+
Open Source Packages
Liberty Leverages 100+
Open Source Packages
35
Leverages 70+
Open Source Packages
Leverages 40+
Open Source Packages

36. • Software license
subscription costs1
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Hardware and networking costs
Downtime costs (planned and unplanned)
Upgrades cost
SLA penalties
Deployment cost
Operational support cost (day to day operations)
Performance costs
Cost of selection of the vendor software
Requirements analysis cost
Developer, admin and end-user training cost
Application design and development costs
Cost of integration with other systems
Quality, user acceptance and other testing costs
Application enhancements and bug fixes cost
Replacement costs
Cost of other risks (including security breaches)
(1) Source: http://users.jyu.fi/~koskinen/smcosts.htm
36
10%
90
%

37. Considerations often forgotten…
Backwards compatibility
Reliability
Availability
Data integrity
Scalability
Security
TCO vs. TCA
Documentation
Manageability
Value add products
Support
Automation
37
Platform support
Localization
Integration
Performance
3rd party components

38. Clients struggle to overcome barriers of time, cost and risk
Source: Forrester Consulting
Typical IT Project Time and Budget
Top Causes of Project Delays
Phase
Hardware
Troubleshooting and tuning
production environment
Time (days)
Budget
Specify/design
73 - 96
14% - 16%
Procure
57 - 112
19% - 21%
Implement
74 – 93
12%
Configure/test
74 – 80
10% - 11%
Cluster HA
66 – 104
11% - 12%
Backup
44 – 108
10%
Tune
89 – 98
9% - 10%
Management
67 – 110
9 – 10%
34% of new IT projects (US) deploy late
38
45%
Integration, configuration and
testing of the infrastructure
Installation, cabling and network
access for the environment
Software
Integration, configuration and
testing of applications
Integration, configuration and
testing of middleware
Configuration, build and
deployment of applications
45%
29%
41%
35%
34%

39. TCO study: WAS ND 8.5 vs. JBoss EAP v6
Conclusion: JBoss is 35% more expensive
over 5 years compared to WAS ND
TCO Category
Hardware $
Training $
Software License $
Software Support $
Application Management $
Infrastructure Management $
Risk and Downtime $
Total $
39
Source: Based on the study by Prolifics, December 2012
IBM
2,060,934
84,375
2,623,920
2,008,815
759,492
1,533,834
9,071,370
Red Hat
$ 3,114,308
$
171,998
$
$ 1,821,316
$ 2,570,500
$ 2,301,566
$ 2,268,548
$ 12,248,235
RedHat as
% of IBM
151%
204%
0%
91%
338%
150%
n/a
135%

40. IBM WebSphere 11 years of performance leadership
IBM track record
§ Held the most records in ECPerf
§ FIRST to publish SPECj2001
§ FIRST to publish SPECj2002
§ FIRST and ONLY company to publish
SPECj2002 Distributed
§ FIRST to publish SPECj2004
– Was the only vendor to publish for over
13 months, held #1 spot for most of the time
SPECjEnterprise2010
EjOPS per processor core (i.e. transactions per core)
IBM: 823
Oracle: 449
Oracle Sun SPARC T5-8 vs. IBM Power7+ hardware1
§ FIRST to publish SPECjEnterprise2010
– LOWEST cost per transaction
– BEST performance per core
681
313
Oracle Sun SPARC T4-4 vs. IBM Power7 hardware2
§ WAS is 17% faster per core on Intel
Sandy Bridge at half the cost
compared to WebLogic1
§ WAS is 83% faster per core at almost
half the cost on Power7+ compared
to WebLogic on SPARC T52
40
606
519
16 cores of Intel Sandy Bridge Xeon E5-2690 processor3
524
452
12 cores of Intel Westmere Xeon X5690 processor4
(1) SPEC and SPECjEnterprise2010 are registered trademarks of the Standard Performance Evaluation Corporation. Results from www.spec.org as of 04/04/2013 Oracle SUN SPARC T5-8 449 EjOPS/core SPECjEnterprise2010 (Oracle's WLS
best SPECjEnterprise2010 EjOPS/core result on SPARC). IBM Power730 823 EjOPS/core (World Record SPECjEnterprise2010 EJOPS/core result), (2) Results from www.spec.org as of 04/29/2012 Oracle SUN SPARC T4-4 313 EjOPS/core
SPECjEnterprise2010 (Oracle's WLS best SPECjEnterprise2010 EjOPS/core result on SPARC). IBM Power780 681 EjOPS/core (World Record SPECjEnterprise2010 EJOPS/core result), (3) Results from www.spec.org as of 11/14/2012 Oracle
SUN Fire X4170M3 519.39 EjOPS/core SPECjEnterprise2010 (Oracle's WLS best SPECjEnterprise2010 EjOPS/core result on Sandy Bridge). IBM WAS 8.5 System x3650 M4 Intel Sandy Bridge EjOPS/core (World Record SPECjEnterprise2010
EJOPS/core result) (4) Results from www.spec.org as of 04/29/2012 Oracle SUN Blade Server X6270 M2 452.285 EjOPS/core SPECjEnterprise2010). IBM Websphere HS 22 Blade 524.621 EjOPS/core.

41. IBM Software Capabilities
Business Need
Capitalize on Big
Data to Act and
Know
Capabilities
§
§
§
§
§
§
Business Analytics
Data Management
Big Data
Data Warehousing
Enterprise Content Management
Information Integration Governance
Business Need
Speed Delivery of
New Products and
Services
Capabilities
§
§
§
§
§
§
§
Serve Customers,
Citizens and
Employees as
Individuals
§
§
§
§
§
§
§
§
Social Collaboration
Unified Communication
Web Experience
Commerce
Procurement
Enterprise Marketing Management
Smarter City Operations
Talent and Workforce Management
Use Cloud to
Drive Strategic
Change
Protect their
Brand and Future
§
§
§
§
§
§
§
Think
MobileFirst
§
§
§
Mobile Development Connectivity
Mobile Management and Security
Mobile Insights and Analytics
§
Connectivity, Integration and SOA
Application Infrastructure
Business Process Management
Application Lifecycle Management
Complex and Embedded Systems
Enterprise Modernization
Expert Integrated Systems
Cloud IT Optimization
Asset Facilities Management
Enterprise Endpoint Management
Application Security
Data Protection
Identity Access Management
Infrastructure Protection
Security Intelligence
Compliance Analytics
41
41

42. Backup
42

43. According to Gartner, IBM holds #1 position in the middleware software for the past 11 years
YTY
growth
rank
share
rank
share
Total middleware market
($19.4 Billion)
9.9 %
#1
32.1 % é
BPM ($2.4 B)
9.7 %
#1
27.1 % é
ESB ($2.4 B)
7.9 %
#1
31.5 % é
B2B ($0.8 B)
4.4 %
#1
20.5 % é
Portals ($1.7 B)
10.3 %
#2
27.8 % é
MOM ($1.2 B)
9.3 %
#1
76.5 % ê
-
TP Monitors ($2.1 B)
0.3 %
#1
83.4 % é
-
Appliances AIM ($0.18B)
7.0 %
#1
34.1 % é
-
App Servers ($3.9 B)
19.2 %
#2
33.5 % é
#7
2.1 % é
Other AIM ($4.3 B)
8.9 %
#5
2.8 % ê
# 32
0.2 % é
# 16
0.6 % é
-
# 12
0.3 % é
-
#6
1.3 % é
é - increased YTY share
ê - lost YTY share
43
Source: Gartner, G00233638, Market Share Analysis: Application Infrastructure and Middleware Software, Worldwide, 2011. Published April 23, 2012
World-wide ranking based on 2011 total software revenue according to Gartner

44. Scalable and
robust
1applications
IBM WebSphere Application Server
Key Capabilities
• Application server types from very
lightweight to highly resilient
• Exploits mobile technologies to enable
you to reach new clients and markets
• Highly resilient, secure and scalable
application runtime
• Easy and no-charge access; Lightweight
developer friendly tools
Business Value
• Increase developer productivity
• Make more efficient use of computing
resources
• More responsive, resilient applications
• Faster time to value for new applications
44

45. Scalable and
robust
1applications
IBM WebSphere MQ
Key Capabilities
• Reliable delivery of business data
• Dynamic distribution using pub/sub
• End-to-end Message-level encryption
• Integrated managed file transfer
• Exploits z/OS for continuous availability
• Support for virtually any commercial IT
system – over 87 environments
Business Value
• Preserve integrity of business data
• Do business anywhere
• More responsive, resilient processes
• Faster time to value for new applications
45

46. Real-time awareness
from Mobile
Internet of Things
IBM MessageSight
Key Capabilities
Business Value
• High speed messaging optimized for
Mobile and Internet of Things devices
• Track, monitor and manage devices
• Easy to develop using JavaScript
• Rapid time to value – running in 30mins
• Support for Web sockets, Android, iOS
• 8x efficient network bandwidth vs. HTTP
• DMZ-ready, FIPS 140-2 certified
• 10x less Mobile battery use vs. HTTP
• Real-time feed into InfoSphere Streams
46
• Scales to masses of concurrent devices

47. Integrate virtually
2
any applications
IBM Integration Bus
Enterprise service bus technology for rapid mobile-enablement of existing applications and
services
Key Capabilities
• Complete
enterprise
service
bus
• Hetrogeneous
integraCon
• Rapid
PaNern-­‐based
integraCon
• Rapid
mobile
integraCon
• Built-­‐in
applicaCon
adapters
Business Value
• Accelerate
integraCon
of
systems
• Increased
IT
flexibility
• Preserve
integrity
of
transacCons
47

48. Integrate and secure
across boundaries
IBM DataPower
DMZ ready appliance for mobile, allowing you to rapidly secure and optimize new mobile
client access patterns to back-end systems and data
Key Capabilities
• Scalable DMZ-based authentication
• Reverse proxy with protocol translation
• Transformation, routing, session affinity
• Intelligent load balancing
• Policy-driven enforcement
• Integrated caching
Business Value
• Hardened security for mobile access
• Rapid deployment and change mgmt
48

49. Expose APIs to drive
innovation
IBM API Management
Key Capabilities
• Easy API creation from existing services
• Compose APIs by integrating services
Grow revenue
through new
channels
Creation
• Manage complete lifecycle of API
Deliver a
differentiated client
experience
External APIs
• Secure and control access to APIs
• Robust business analytics of API use
Consumption
Partner APIs
Business Value
Assets
Services
49
• Assembly
• Transformation
• Rationalization
Application End
Points
Internal APIs
• Discovery
• Composition
• Deployment
• Rapidly establish presence in new API
economy
• Nurture innovation by rapidly building
community of developers, entrepreneurs
and partners