1. Cloud & Smarter Infrastructure Introduction to Software as a Service (SaaS) for IBM sellers and Business Partners
The goal of this presentation is to provide an introduction to Software as a Service (SaaS), as well as lay out C&SI’s SaaS plans for 1H 2014.

2. What is Software as a Service (SaaS)?
Software as a Service (SaaS) is a software delivery model in which software and associated data are centrally hosted in the cloud. SaaS is typically accessed via a web browser. Payment for the service is through a subscription model.
You are using SaaS today if you access applications like Facebook, Twitter, or gmail.
Consider how we do taxes:
In the past you would get the 1040 booklet in the mail from the IRS. You would go to the library to get all of the other forms. Spend a late night putting in the information, double checking the math, mailing a copy to the IRS, and praying you didn’t get audited because you weren’t a tax accountant and the U.S. tax code is very complex.
Next, you could purchase tax software from companies like H&R Block or TurboTax. You would get a CD (or maybe download software) to your laptop, enter information, and submit electronically. The software had build in tax accountant intelligence. Your tax data lived on your laptop.
Now we have companies like taxslayer.com or TurboTax online. The software lives in the cloud. Your data lives in the cloud. You always have access to the most current tax knowledge. The simplest version is free.
Note the change in risk, in where the software resides, in where the data resides, and how you enter & submit your tax form.
See the last page in this deck for additional resources on SaaS, Cloud, and utility-based computing

3. What is driving the move to SaaS?
IBM Pulse2013
4/14/2017
What is driving the move to SaaS?
Market dynamics and disruptive technologies are driving the shift to SaaS consumption models
Developers want
Low touch, easy to consume, continuously updated software
Cloud
Social
Mobile
Lines of Business want
CxOs want
Access from anywhere
To create new offerings by composing services from multiple providers
Predictability
Lower costs
Quicker business value
Embedded Intelligence
Developers - 56% of B2B technology buyers seek product info on social sites. These buyers are increasingly influenced by the Developers in the LOB, who have “done their homework” on social sites.
Lines of Business - By 2016, 80% of new investments will directly involve LOB execs with LOB leading decisions in more than 50% of those investments
CxO - OpEx will reach 50% of the market share by 2013 due to shifting from on-premise to a subscription (SaaS) model. The shift to OpEx allows companies to claim the expense as it occurs, rather than amortize it over multiple years.
IT Operations - By 2016, over 25% of high end data center space in the U.S. will be in service provider data centers. Mid-Size enterprises are leveraging SaaS as the model for IT growing cloud consumption from 16% in 2010 to 36% in These off-premise data centers must still be managed.
For composable services, think of Google Maps. If you look up a hotel, you get a map. If you look up a person on Google, you see their Wikipedia entry. Mix and Match.
Big Data
IT Operations wants
To manage on-premise, Cloud, and hybrid environments
GS202_LeBlanc_v12 3 3

4. … and the decision making process is changing
Decision making power is shifting from the traditional IT buyer to a new audience - the Line of Business owner & practitioner
By 2016, 80% of new investments will directly involve LOB execs with LOB leading decisions in more than 50% of those investments
48% discover brands they are not aware of while searching, 24% decide which brand to purchase solely from their self directed digital research 
60% of the IT purchase process decision is completed before the prospect engages a vendor
CIO
CTOs
IT Managers
IT Operations Manager
Data Center Manager
Decision Makers
Economic Buyers
Decision Makers
Who is this guy on the bottom left? He is the new influencer. He is likely a millennial (or Gen Y), born in the early 1980s to the early 2000s. He grew up with smart phones, the internet, and easy access to technology. Don’t know something – look it up right now. He or she loves games, new technologies, and flashy things.
In many companies, the practitioner is driving something called Shadow IT. The practitioners are finding new, useful software on the web. If it is below their department’s $50K clip level, they convince their manager to purchase it for the department. The IT group was not part of that decision. Lots of different, possibly incompatible software across each department.
And what she uses at home or on her phone, she will want to use at work. Microsoft pushed this policy to move from consumer to enterprise with Windows. If you used Windows at home, you would want something similar in the office.
Influencers
Developers
Technical Leaders
System Administrators
IT Operations
Data Scientists
Recommenders
Practitioners
Users
*Source: Google & Compete B2B Customer Study, June 2012

5. How can SaaS help? Improved TCO due to lower infrastructure cost
Flexible subscription pricing
Minimal upfront investment
Continuous delivery of new capabilities allows rapid innovation and access to immediate code fixes
Lower risk with try & buy approach
Accelerates evaluations and decision making
Infrastructure costs – hardware (e.g. servers), software, people
Minimal upfront – no servers, no staff. Just try it.
Continuous delivery – how often is gmail updated? It could be daily.
Try & buy – if you don’t like it, just switch. The less you invest up front, the easier it is to switch.

6. Remember these? The speed of destructive innovation is accelerating
Remember Kodak? They missed digital photos.
The iPod was innovative, until people started listening to music (and storing pictures) on their smartphones.
Garmin is a fairly new company, making GPS systems. Big market for portable car GPS systems. The problem is they didn’t update … and you could get an app for it.
The speed of destructive innovation is accelerating
SaaS has already changed the game
Don’t be a footnote in the history of computing.

7. Market Demands Competition Delivers C&SI Delivers
Ability to progressively add capabilities
Leverage existing and new IT investments
Pay per use predictability
Visibility across the entire “IT Supply Chain”
C&SI products integrate across SaaS and on-premise. Consider Monitoring (SaaS) + Application Diagnostics (SaaS) + SCCD (SaaS). You would need New Relic + AppDynamics + ServiceNow to work together to get the same visibility.
Competition Delivers
C&SI Delivers
Niche-level capabilities
Narrow delivery model – SaaS only
Limited out of the box integrations
Limited end-to-end visibility
Broad portfolio of capabilities
Support for On-Premise, SaaS, or hybrid
Seamless integration across multiple offerings
Visibility across entire enterprise

8. Learn • Explore • Try • Use (Buy) • Extend • Support
What is IBM Service Engage? A New Way to experience and acquire our on-premise and SaaS solutions
IBM Service Engage
Learn • Explore • Try • Use (Buy) • Extend • Support
New way….
Engages our clients with the right information, demos, and the ability to try & buy --- while you’re off selling to someone else.
Very compelling – feedback from analysts and beta customers “this is not your father’s IBM”.
for engaging clients and partner via live guided demos available 24x7
to POC your clients … start a POC in 30 minutes, anytime, anywhere your client wants
to accelerate the close
to extend what your clients are already buying at lower total cost via Software as a Service

9. IBM Performance Management for Applications and Infrastructure solutions increases your end user satisfaction with complete visibility and control of your application environment.
Pain points
How this offering helps
User scenarios
Typical buyers
Increasing maintenance costs
No end-to-end view of app health
Missed SLAs
Find the root cause of application problems 90% faster
Improve the availability of critical applications by 60-90% with integrated analytics
Reduce the length of outages and slowdowns by 50%
Quickly identify and resolve a bottleneck
Ensure SLA and KPI compliance
Manage all types of workloads
Prevent outages
IT Ops Managers - reduce infrastructure costs
LOB Owner - accelerate delivery of new services
App Developers - monitor their apps
List Price
Competitive Differentiators
Questions to ask
IBM Monitoring (SaaS): $25/month per Average Managed Virtual Server (aMVS)
IBM Application Diagnostics (SaaS): $120/ month per Average Managed Virtual Server (aMVS)
Flexible delivery options allow for SaaS, on premise, and hybrid environments
Integrated analytics for faster root cause analysis and problem resolution
Broad application coverage from new cloud based languages to traditional enterprise workloads
Do you have apps moving to – or already in – the Cloud, with connections to your data center?
Are your app teams decentralizing and gaining independence?
Are your app lines of business moving to an OpEx model?
The goal of this “eye chart” is to provide something you could post on the wall of your cubicle.
Look at “how this offering helps”. These same bullets are on the Service Engage site. 9 9 9 9

10. IBM Workload Automation (SaaS) drives the execution of Business Processes with the lowest TCO across all environments, servers and applications. It offers speed of automation, power to business and precise governance.
Pain points
How this offering helps
User scenarios
Typical buyers
Need to reduce expenses
No resources to build an automation infrastructure
Lack of technical know-how hinders automation
30% reduction in execution time of business workloads, resulting in millions of $$$ in savings
90% reduction in labor costs and total control of business SLAs
35% savings in operation costs and improved staff productivity to support additional workloads
Get time back by automating your processes - Automate BI & ERP processes in minutes
Manage your business SLA’s - Run and monitor workloads wherever you are
IT Ops managers - wants to move to a service-centric delivery organization
LOB owner – wants low cost solution with immediate benefits, ease of use and scalability to grow with evolving needs.
List Price
Competitive differentiators
Questions to ask
New Customers
1k - 25k jobs  each 1k job pack is priced at $70/mth
25k - 250k jobs  each 1k job pack is priced at $56/mth
250k – 1,000k jobs  each 1k job pack is priced at $35/mth
> 1,000k jobs  each 1k job pack is priced at $21/mth
Existing Customers
1k - 25k jobs  each 1k job pack is priced at $56/mth
25k - 250k jobs  each 1k job pack is priced at $35/mth
250k – 1,000k jobs  each 1k job pack is priced at $21/mth
(*existing customers continue to pay S&S)
Get started with ZERO investment. Competitors force you to make an upfront commitment.
Faster TTV with a ready-to-use application catalog. Competitors need your to reach out to business partners to get started.
IBM’s strong commitment to Open Standards - With OSLC, workload automation is easily integrated with other OSLC-enabled applications like monitoring, ticketing, etc.
IT Ops manager: Are you spending too much money building and managing your infrastructure?
LOB owner: Is it taking too much time to automate your processes, and monitor them through simple interfaces ?
The goal of this “eye chart” is to provide something you could post on the wall of your cubicle.
Look at “how this offering helps”. These same bullets are on the Service Engage site. 10 10 10 10

11. SmartCloud Control Desk (SaaS) delivers a unified service management solution to simplify business processes, maximize asset efficiency, and improve the end user experience
Pain points
How this offering helps
User scenarios
Typical buyers
Fragmented service management processes are causing inefficiency
No visibility of assets across the enterprise
Hard to manage multiple apps on different platforms
Reduce IT change related outages by 70%
Improve first call resolution rate by 25%
Reduce request response times by 60%
Lower help desk calls by 80% through end user empowerment and service request automation
Combine processes controls with runbooks
Synch data across unified domains
Get a working environment up and running in hours, not weeks
LOB owner: Low cost, quick TTV, ease of use and scalability to grow with evolving needs.
IT Manager: Reduce infrastrasture costs
List Price
Competitive differentiators
Questions to ask
$99/month per Authorized User
$297/month per Concurrent User
Consistency – Single offering for both Enterprise & SMB, and SaaS and On-Premise
Capability –Provide deeper functionality than competition
Integration - With a wide range of IB/3rd party products to satisfy any clients needs
Do you want a complete, integrated service management solution that includes configuration, change, asset, and/or license management?
Is IT infrastructure support a core competency or an ongoing headache?
Are your lines of business moving to a SaaS and/or OpEx model?
Entitlement Price
$49/month per Authorized User
In addition to avg S&S cost of $26//month per Authorized User
Note: Entitlement is the discounted price we provide to our existing SCCD clients who wish to move from On-premise to our SaaS offering. They will continue to pay their S&S costs but will receive a substantially discounted rate to move to SaaS. This rate does not include the migration cost which will be a separate services offering. We are building a cost case that shows the benefits over several years, including estimated migration costs.
The goal of this “eye chart” is to provide something you could post on the wall of your cubicle.
Look at “how this offering helps”. These same bullets are on the Service Engage site. 11 11 11 11

12. Why is this important to YOU?
Service Engage faster time to value for your clients
POC in days not weeks / months with 30 day evals
Earn quick wins, close more often, earn more money via 2x ACV (PCO1 & PCO2) Expand your footprint in your accounts using a land and expand strategy
Displace competitors, on flexibility, broad capabilities, lack of comparable offer
Service Engage puts you and your clients in the drivers seat.
Service offers demos, trials, and (eventually) e-commerce to accelerate deal progression.
The integrations with other SaaS and on-premise offerings provide the foundation for a “land and expand” strategy. See the later chart.
Competitors don’t have hybrid. Nor do they have the extensive integrations.
And selling SaaS pays well. Close quicker. Win more often.
Take a drive today! 12

13. What is the SaaS Sales Cycle?
Organic & Paid Search
Re-targeting
Content Syndication
Social Media Advertising
3rd Party Practitioner Events
Social Casts
Digital & Practitioner Marketing Tactics
Digital & Practitioner Marketing Tactics
IBM Service Engage
IBM Service Engage is enabling new routes to market that make it easier and faster to experience and acquire our on-premise and SaaS solutions
IBM Service Engage is enabling new routes to market that make it easier and faster to experience and acquire our on-premise and SaaS solutions
IBM Service Engage is enabling new routes to market that make it easier and faster to experience and acquire our on-premise and SaaS solutions
IBM Service Engage is enabling new routes to market that make it easier and faster to experience and acquire our on-premise and SaaS solutions
Sold into LOB business
Focus on Business Objectives
Time to Market
Return on Investment
Speed of Deployment
Sold into LOB business
Focus on Business Objectives
Time to Market
Return on Investment
Speed of Deployment
Sold into LOB business
Focus on Business Objectives
Time to Market
Return on Investment
Speed of Deployment
Learn, Explore, Try, Buy – Service Engage
Understand, Explore, Develop, Implement, Confirm & Repeat - Client Value Method (CVM)
EXPLORE
LEARN
Your Client’s
Business Problem
and/or Objective
EXPLORE
SaaS capability
to deliver
“best practice”
process &
capability
TRY
Client trials
SaaS offering,
delivering business
process &
capability
BUY
Close the deal
Understand Explore Develop Implement Confirm & Repeat
Service Engage 30 day evaluation removes the POC dependency, and shortens the sales cycle from weeks/months to days 13 13

14. Where will SaaS customers come from
Where will SaaS customers come from? Tremendous opportunities to up-sell and cross-sell
IBM Monitoring (SaaS)
SmartCloud Control Desk (SaaS)
Detect an issue, automatically open a ticket
Netcool OMNIbus
Generate alerts when monitored KPI exceeded
Business Service Management
Improve MTTR for monitored business processes
SmartCloud Analytics
Predict and prevent problems with insight into patterns and trends
Workload Automation (SaaS)
Quickly and easily identify system and application problems that are impacting your workload 
Create alerts for workload problems
Open incidents for workload failures
IBM Endpoint Manager
Trigger automatic provisioning of a desktop
Netcool Omnibus
Generate tickets based on selected events
Tivoli Application Dependency Discovery Manager (TADDM)
Use Configuration Information (CI) and relationship data to manage unplanned change
Why do burger joints say “Do you want fries with that?” That is cross-selling. Why do they say “Do you want the Meal Combo?” That is up-selling. The good news is you can do both with our C&SI SaaS offerings.
Extend the value of your Performance Management solution:
Integrate with On-Premises Event and Operations
IBM Performance Management can integrate with on-premises Omnibus so your alerts get into the hands of those who most need them
Resolve problems faster with consolidated events across your applications and infrastructure
Predict problems before they occur, resolve them faster
Transcend monitoring with IBM SmartCloud Analytics to find the valuable insights hidden behind the data in IBM Performance Management
Proactively start predicting and preventing problems before they impact your users
Immediately find the answers you need without staring at an endless number of log files
Use your help desk to its full potential
When IBM Performance Management detects an issue with your application, it can automatically open a ticket in IBM SmartCloud Control Desk
Your specialists can fix problems in your applications before users have time to report them
Your help desk will spend more time solving application issues and less time answering support calls
Streamline business service management
Improve your mean time to repair with integrated IBM Performance Management and IBM Business Service Management
Keep your IT infrastructure always optimized for your applications
Workload Automation (SaaS) also integrates with Cognos, Datastage, Informatica, Netezza, WebSphere MQ, Platform LSF, Sterling Connect Direct. 14

15. Where can I get help with a SaaS deal?
The SaaS & Service Engage Center of Competency (CoC) serves as a war room, providing a resource for sellers to get help closing a SaaS deals.
The CoC web site provides information on the following:
Overviews
FAQs
Terms & Conditions
Privacy
SaaS vs on-premise
Competition
Pricing
ELAs & SaaS
DSR / ISR scripts
Typical sales cycle
Links to SaaS Offering info
Sellers can use the CoC:
For self-service
To submit a question to the community
To request help
You don’t have to go it alone.
IBMers - w3.ibm.com/csicenter/sellers
Partners -

16. Where are the C&SI SaaS solutions hosted?
Active Data Centers - SoftLayer
Amsterdam
Dallas
Singapore
Working with local partners to expand into additional regions
IBM plans to invest over $1.2 billion to expand its cloud services operations.
The computing services company said Friday that it will build 15 data centers around the world this year to add to the 12 it already operates and the 13 it recently acquired through its $2 billion purchase of cloud computing company SoftLayer last year.
Some of the newest data centers to launch are located in China, Hong Kong, London, Japan, India, Canada, Mexico City, Washington, D.C., and Texas. IBM said it plans to have data centers in all major geographic regions and financial centers with plans to expand in the Middle East and Africa next year.
IBM said the new investments will give its business clients the ability to place and control their data globally. Emphasize choice.
Read more: - vcstar.com
From January 17, 2014 announcement:
IBM plans to invest over $1.2 billion to build 15 data centers around the world this year to add to the 12 it already operates, and the 13 it recently acquired through its $2 billion purchase of cloud computing company SoftLayer last year.
IBM said the new investments will give its business clients the ability to place and control their data globally.

17. What do I need to know about Data Privacy?
Personal data generally includes information relating to an individual -think business card (e.g. names, addresses, home address) In some countries, also includes information about identified partnerships, associations, or corporations.
IBM is a data processor, entity that processes personal data on behalf of the data controller, who would be the client responsible for entering the data.
In most cases, Passport Advantage agreement covers data privacy for personal data.
EU and Switzerland have additional data privacy regulations but have established the ability to create a framework with the U.S for accessing personal data.
C&SI SaaS is in the process of obtaining EU Safe Harbor certification. This requires a risk assessment after we Go Live. In the meantime, we have security measures in place to restrict access to EU client data and for IBM non-U.S. employee access to Amsterdam hosting center in order to comply.
IBM has an Online Privacy Statement which is another EU Safe Harbor requirement
Where is my data hosted and who will have access to it are big issues when the data is in the cloud.
You’ll hear about the U.S. Patriot Act and EU Safe Harbor.
See the SaaS Center of Competency web site for further details on country-unique privacy requirements

18. What should I do next?
Go to Service Engage, learn about it, provide feedback
Learn about SaaS and C&SI’s 1H 2014 SaaS offerings.
Approach your top 5 customers with these questions:
Does the overwhelming cost of maintaining their infrastructure hinder developing new services that could bring in additional revenue?
Do they need to gain access to new capabilities quicker to innovate faster and stay ahead of their competitors?
Do they want to lower their Total Cost of Ownership (TCO) ?
Determine where your customer wants to be, and how they should get there.
Encourage them to test drive Service Engage today
Look for opportunities to up / cross-sell
Make a SaaS proposal.
C&SI Strengths:
Customer choice: On-premise, SaaS, integrated experience
Integration with broader Service Management capabilities
Accelerate sales velocity with Service Engage
Unsurpassed breath of capabilities
Become an expert at showcasing the value of the C&SI portfolio through Service Engage.

19. Where can I learn more? Sales Kits: SaaS sales kit PartnerWorld
At Go Live see the SaaS updates to these sales kits:
IBM Application Performance Management sales kit IBM, PartnerWorld
SmartCloud Control Desk sales kit IBM, PartnerWorld
IBM Workload Automation sales kit IBM, PartnerWorld
Important web sites
Center of Competency - partners
Service Engage
To learn more about the technologies:
Cloud, Cloud computing
SaaS: WWW, YouTube
Straight Talk sessions
January 23:
SaaS 101
February
APM payload – February 18
SC CD payload - scheduling
WA payload – February 18
March 12
Changing the Game with C&SI SaaS (for partners)
SaaS CoC for IBM sellers -
Partners will go to the “by invitation only” community on developerWorks:
The partner community is still being built out and is primarily an “anchor” at this point.