1. © 2013 IBM Corporation 1 Selling TSM Suite for Unified Recovery with ProtecTIER: Leverage industry leading data protection and deduplication solutions together TSM Suite for Unified Recovery ProtecTIER Option TSM IBM ProtecTIER

2. © 2013 IBM Corporation 2 In Short.... Main purpose of this offer is to aggressively attack whitespace and facilitate teaming across STG and CSI Simple model Aggressively priced Cross sell opportunities do exist There is very little overlay between TSM SUR customers and ProtecTIER customer base Butterfly study in existing PT customers supported by aggressive TSM PT pricing Competitive VTL replacement in existing TSM SUR customers (will slow down TSM growth but generally benefit IBM) When approaching an existing TSM customer engage your CSI/STG counterpart You need to know existing PA level, renewal date and cost of support and subscription S&S erosion will NOT be approved TSM SUR ProtecTIER Option ordered through Passport Advantage SWG will look for a term commitment

3. © 2013 IBM Corporation 3 TSM Suite for Unified Recovery ProtecTIER Option 600TB400TB 150TB ProtecTIER 1 PB To control the growth of data customers are turning to dedicated deduplication appliances, such as ProtecTIER, to reduce the size of their storage pools and slow growth rates However TSM SUR licensing does not recognize this shift in customer deployment Only native TSM deduplication is recognized for licensing purposes Customers are demanding this recognition for external deduplication This offering will allow customers to recognize this efficiency when TSM is used with ProtecTIER, creating an incentive to deploy an IBM-on-IBM solution For example The customer has a ProtecTIER device with a 150TB capacity. They are not using ProtecTIER replication. They have with 1 Petabyte in their TSM primary storage pools. 600TB of that 1 PB is moved to ProtecTIER, which after (say 4:1) deduplication results in 150TB physically stored. In the past, they had to buy 1 PB of TSM SUR capacity licenses This offering will allow them to buy 400TB of TSM SUR standard tiers + 150TB of TSM SUR ProtecTIER Option 4X dedupe 400TB TSM Primary Storage Pool Move 600TB onto ProtecTIER Customer benefits from less TSM license requirement Announcement: Aug 20, 2013 Worldwide Availability: Aug 23, 2013

4. © 2013 IBM Corporation 4 TSM SUR ProtecTIER Option List Price: $5,300 / TB Customer will have to license the entire ProtecTIER device upfront (not pay as you protect) This price point is set to be in the ballpark of a large customer getting 4:1 dedupe ratio Licensing: Licensee must obtain sufficient entitlements for the total aggregate usable physical capacity of the IBM ProtecTIER repositories that are available to the IBM Tivoli Storage Manager primary storage pool, excluding the capacity for Disaster Recovery sites used for replication only. TSM SUR ProtecTIER Option ordered through Passport Advantage IBM ProtecTIER ordered through AAS Existing TSM SUR customers can exchange some of their standard TSM SUR entitlement for ProtecTIER Option as part of a special bid that will require growth revenue and S&S neutrality (see FAQ in backup for requirements) ProtecTIER Option measurement macro will be loaded here on GA (Aug 23, 2013)here

5. © 2013 IBM Corporation 5 TSM SUR ProtecTIER Option – Savings examples Examples of how the TSM SUR ProtecTIER Option can benefit customers Configurations do not include disk cost, which is assumed to be neutral to the scenarios Customers could use SmartCloud Virtual Storage Center to virtualize the physical storage infrastructure (both primary and copy data) and layer TSM Suite for Unified Recovery ProtecTIER Option with IBM ProtecTIER for the copy data

6. © 2013 IBM Corporation 6 Converting TSM SUR Entitlements to TSM SUR ProtecTIER Option Situation: For a customer who has TSM SUR and they have ProtecTIER as part of their primary storage pool They are licensed correctly assuming TSM does not recognize their ProtecTIER dedupe They may feel that the new customers will benefit more than them To accommodate these customers, we will allow conversion of some TSM SUR entitlements to TSM SUR ProtecTIER Option through the PVU to TB conversion process. Example: Environment: The customer has 200TB of TSM SUR entitlement and they have a 50 TB of capacity on ProtecTIER. TSM can use up to 25TB of that ProtecTIER capacity. The remaining 25TB are used for ProtecTIER replication. The deduplication ratio they experience is 4:1, meaning the 25TB of TSM data sitting on ProtecTIER represents 100TB of TSM SUR capacity They can convert 100TB of their 200TB TSM SUR entitlement to 25TB of TSM SUR ProtecTIER Option ProtecTIER Option licensing requires that the total capacity of the ProtecTIER available to TSM be licensed, less capacity used for ProtecTIER-based replication. Since this is a 50TB ProtecTIER using 25TB for replication, we will convert them to 25TB of TSM SUR ProtecTIER Option since this is the available capacity for TSM. 50TB Total ProtecTIER capacity – 25TB replication capacity = 25TB TSM SUR ProtecTIER Option

7. © 2013 IBM Corporation 7 Converting TSM SUR Entitlements to TSM SUR ProtecTIER Option Situation: What if the customer who has 200TB of TSM SUR wants to buy a new 50TB ProtecTIER and move half of their data to it (assuming no replication). Guidance: Since this is a new ProtecTIER purchase, they will have to purchase 50TB of TSM SUR ProtecTIER They will have 200TB of TSM SUR and will purchase 50TB of TSM SUR ProtecTIER Option

8. © 2013 IBM Corporation 8 Calculating TSM SUR ProtecTIER Entitlement Example: Environment Customer has TSM primary pool data not stored on ProtecTIER (NPTC) Customer has TSM primary pool data stored on ProtecTIER (PTC) Customer is using ProtecTIER-based replication 1.To determine how much TSM SUR entitlement is needed for primary data not stored on ProtecTIER: Use the TSM SUR PT Macro to determine the capacity used in non-ProtecTIER primary pools. This will report the non-ProtecTIER primary pool data used by TSM. This is the value you would use with the standard TSM SUR tiers. Do this for each TSM server. 2.To determine how much TSM SUR ProtecTIER entitlement is needed: From the ProtecTIER Manager / GUI Utilization reports (see slide 9), grab the values for A: Nominal estimated total space B: Nominal replication C: Deduplication ratio Use the following formula to determine useable physical capacity less ProtecTIER-based replication (i.e. DR): (A-B) / C = PTC This is the TSM SUR ProtecTIER entitlement capacity. Do this for each ProtecTIER devices used with the TSM environment.

9. © 2013 IBM Corporation 9 Example ProtecTIER GUI: This is how much total data can be stored at the current dedupe rate. This is how much data can be replicated at the current dedupe rate. This is the total physical usable capacity. Notice that if you divide nominal estimated total space by the deduplication ratio, you get a value close to this: 2,302.4 / 16.3 = 141.2 TB. This is the total physical usable capacity. Notice that if you divide nominal estimated total space by the deduplication ratio, you get a value close to this: 2,302.4 / 16.3 = 141.2 TB.

10. © 2013 IBM Corporation 10 The ProtecTIER option and TSM SUR Front-End Licensing Question: How does the TSM SUR ProtecTIER option apply to customers with Front-End licensing? Answer: For Front End customers, entitlements are based on the size of the protected data before it is stored in TSM (i.e. not based on the size of backend infrastructure). Front End customers can still use IBM ProtecTIER to store their data AND they will not need to purchase the ProtecTIER option as this would be an unnecessary addition to their entitlement costs. That being said, using an IBM ProtecTIER in a Front End license situation still adds value: It enables LANfree direct to ProtecTIER from a protected system via the Storage Agent, which is included in the Front End entitlement. This means work is offloaded from the TSM server. It frees resources (e.g. memory, processing power) from TSM so TSM doesn’t need to handle deduplication workloads. This means a reduced TSM database size. It frees resources from TSM when handling replication workloads. However, recovery from the replication site would require TSM to use HADR or TSM database backup shipping.

11. © 2013 IBM Corporation 11 Continuous Availability Dual node design for high availability The only HA solution available Capacity Up to 1 PB physical capacity per node Delivers industry leading dedup capacity Nearly 2x Data Domain’s largest system Increased # of drives for TSM Special TSM Support Optimization of TSM data Deduplication for very large TSM objects Efficient dedup for small TSM objects Special parsing for TSM data Butterfly analysis for ProtecTIER target Performance 2,500 MB/s ingest 3,200 MB/s restore Delivers industry leading dedup performance, Improves TSM mount performance Global Deduplication Deduplicates ALL data Provides superior deduplication ratios ProtecTIER: Deduplication Advantages Non-disruptive Deployment Simple VTL Design Easily integrates with TSM Enables LANfree dedup for TSM Offloads dedup processing to ProtecTIER Uses any disk incl Virtual Storage Center

12. © 2013 IBM Corporation 12 Repository ProtecTIER™ Server HyperFactor™ New Data Stream “Filtered” data Memory Resident Index Only 4GB needed to map 1PB of physical disk! Inline deduplication Up to 1600MB/sec per server or 2500MB/sec with 2 node cluster! How ProtecTIER works TSM Servers Virtual Storage Center or other disk

13. © 2013 IBM Corporation 13 TSM and ProtecTIER Synergy TSM and ProtecTIER are the highest scaling data protection and deduplication solutions in the industry…and they work great together! TSM capacity pricing now gives credit for ProtecTIER deduplication ProtecTIER incorporates special TSM parsing for more efficient deduplication of TSM data TSM 6.3 ‘VTL awareness’ significantly increases TSM VTL mount performance and number of virtual drives TSM can be used with ProtecTIER replication (for data) and HADR (for TSM database) ProtecTIER File System Interface (FSI) simplifies Disaster Recovery operations with TSM White Paper & Best Practices available on efficient TSM and ProtecTIER planning and operations (see links on last page) You can use both TSM and ProtecTIER deduplication but not typically on same data 13

14. © 2013 IBM Corporation 14 IBM has a family of storage solutions which offer the benefits of data deduplication for client storage efficiency Greatly reduced storage capacity requirements Lower operational costs, TSM license costs, energy usage and TCO Faster recoveries with more data on disk (can leverage VSC as optimized disk for primary, TSM and ProtecTIER) Use ProtecTIER Deduplication for: Very high performance to reduce backup / recovery times Up to 1600 / 2200 MB/sec (2500 / 3200 MB/s with 2 node cluster) inline deduplication Objects >300GB or for daily ingests >10TB (also great for smaller data amounts) Capacity scaling up to PBs of primary data to be deduplicated is required Deduplicating across multiple backup servers to maximize deduplication Use TSM Built-in Deduplication When: Network utilization needs to be minimized using client (source) side deduplication Sufficient TSM server resources can be made available and you desire deduplication operations be completely integrated within TSM Benefits of deduplication are desired without additional investment TSM IBM ProtecTIER When To Use ProtecTIER or TSM Native Deduplication

15. © 2013 IBM Corporation 15 Backup deduplication options: User systems, backup servers, storage systems It’s not whether to deduplicate, but where TSM Server Dedupe Users and Applications 1 3 2 ProtecTIER Deduplication Gateway or Appliance TSM Client dedupe is most effective (in terms of network bandwidth and storage), but only if user systems have sufficient resources. TSM client dedup works with TSM server dedup TSM Server dedup has no impact on user systems, but requires resources on the TSM Server ProtecTIER dedup has no impact on user systems or TSM Servers 1 2 3 TSM Client Dedupe

16. © 2013 IBM Corporation 16 IBM advantage over EMC DB2 High Availability Scalability and Performance Data Reduction Reliable Reporting Lower TCO Storage Reduction 16

17. © 2013 IBM Corporation 17 Progressive Incremental backup forever  Reduce backup storage capacity Progressive Incremental backup forever  Reduce backup storage capacity Target (server)-side deduplication  Shortens backup times Target (server)-side deduplication  Shortens backup times Data Reduction Source (client)-side data deduplication  Enables deduplication Device side deduplication (ProtecTIER)  Enables deduplication  Shortens backup times  Reduces recovery times IBM’s comprehensive data reduction treats the cause, not the symptom Compression Deduplication Progressive Incremental Deduplication is only part of the equation when considering data reduction; the focus must also include progressive incremental backup, compression along with deduplication to maximize data reduction

18. © 2013 IBM Corporation 18 IBM TSM, ProtecTIER vs EMC Avamar & Data Domain IBM TSMEMC Avamar/ Networker IBM PTEMC Data Domain Deduplication Technology Integrated incremental for ever + dedup on client and server reduce storage & network cost, TSM parser integration with PT Requires expensive DD boost to offload work HyperFactor – Designed for 100% data integrity, TSM parser improves deduplication efficiency Hash-based – Data loss from hash collision possible Performance and Scalability Single TSM server can manage around 300TB data with TSM dedup One Avamar node can manage about 7.8TB data Faster Restore Delivers industry leading dedup capacity Nearly 2x Data Domain’s largest system Slower restore, requires more infrastructure ManageabilitySimplified management, single product to manage disk, tape, remote office or large data center Complex management, multiple products based on various use case Single system scalability to meet your requirements How many DD boxes can you afford to manage? Clustering, High Availability Hardware independent, fully automated, granular level HA/DR capabilities HW dependent, limited granularity ProtecTIER has it now, production proven Not HA and not time tested in production environments Bottom LineThe most efficient, scalable, Enterprise level data protection solution Works for smaller branch office, cost and complexity grows as you try to deploy in larger environment Designed from the start to meet Enterprise needs SMB product struggling to reach Enterprise capabilities

19. © 2013 IBM Corporation 19 Business challenge Solution  10 TS7650G ProtecTIER™ Deduplication Gateways Benefits  Executes backups to disk with a retention of 180 days providing faster backups and even quicker restores  Saved over 100+ square meters of floor space by eliminating tape libraries through this implementation  Off-site backups are no longer needed. Data is electronically copied and replicated safely and efficiently  Enables customer to re-use existing disk infrastructure Banking/Financial Services Protect More. Store Less.™ IBM’s TS7650G ProtecTIER seamlessly integrated into an existing backup environment using TSM and will help them contain the growth rate of their data sets This large banking institution serves over 30 million customers as an international banking business with a global footprint in over 36 countries. It operates one of the largest SANs in Europe, with nightly backup numbers exceeding 1,000TBs and has more than 5PBs of centrally managed storage. Shrinking backup windows and data growth at 55% CAGR contributed to them evaluating a new disk- based backup and recovery infrastructure. This client chose IBM’s TS7650G ProtecTIER deduplication solution over final contender Data Domain. This deal is now IBM’s largest ProtecTIER installation across Europe.

20. © 2013 IBM Corporation 20 Business challenge This government retail exchange store was already familiar with VTLs, but did not have enough capacity to handle disk-to-disk backup for anticipated new workloads and data growth. Anticipating a 50% growth of data year over year, the client evaluated several solutions and chose IBM’s TS7650G over Data Domain for its performance, scalability and capacity Solution  IBM TS7650G ProtecTIER™ Deduplication Gateway  IBM DS4700 disk arrays (2)  SVC  IBM TSM Benefits  Increased performance of backup & restore operations – 20% faster restores  Increased capacity enabled longer data retention – currently 18:1 factoring  Eliminated multiple management and cost points vs. the competition  Simple scalability for future data growth Government Protect More. Store Less.™ IBM’s TS7650G ProtecTIER enables customers to scale without impacting performance and seamlessly works with existing TSM operations

21. © 2013 IBM Corporation 21 Business challenge Faced with the complexity and manageability of backup to tape, this media industry giant was also starting to lack datacenter floor space and power needed to accommodate future growth. With their data sets growing at least 50% year over year, the client needed to find a deduplication solution that would enable them to facilitate the growth, provide them with reliable backups and lower hardware acquisition and labor costs. This client chose the TS7650G ProtecTIER deduplication solution over incumbents SUN and EMC. Solution IBM System Storage and IBM ProtecTIER Deduplication Technology  IBM XIV  IBM TS7650G ProtecTIER Deduplication Gateway (2 node cluster)  IBM TSM Benefits  Increased performance of backup & restore operations  Reduced equipment, energy and space consumed  Increased capacity enabled longer data retention  Simple scalability for future data growth ProtecTIER’s unique capabilities enables customers to protect data more efficiently and reliably and save money by reducing energy, floor space and maintenance requirements. Media and Entertainment Protect More. Store Less.™

22. © 2013 IBM Corporation 22 Butterfly Analysis Supports ProtecTIER TSM with ProtecTIER is Butterfly target architecture of choice for many customers TSM and ProtecTIER combo is more cost effective than competitive solutions Butterfly data analysis and recommendations help fully leverage ProtecTIER Butterfly references for ProtecTIER available

23. © 2013 IBM Corporation 23 Links to resources: Competitive Paper: IBM TSM/ProtecTIER vs. EMC Avamar/DataDomain IBM ProtecTIER Implementation and Best Practices Guide (Chapter 14 is on TSM Best Practices with ProtecTIER, and 22.6.1 is on ProtecTIER Replication with TSM)IBM ProtecTIER Implementation and Best Practices Guide (Chapter 14 is on TSM Best Practices with ProtecTIER, and 22.6.1 is on ProtecTIER Replication with TSM) IBM ProtecTIER and TSM Performance Tuning Guide Competitive Positioning Paper: IBM ProtecTIER vs. EMC DD990 Competitive Positioning Presentation: IBM ProtecTIER vs. EMC DataDomainCompetitive Positioning Presentation: IBM ProtecTIER vs. EMC DataDomain Competitive Presentation: IBM ProtecTIER vs. EMC Data Domain 990

24. © 2013 IBM Corporation 24 Frequently Asked Questions – TSM SUR for ProtecTIER Option Q1: How is the ProtecTIER Option licensed? A: Customers will need entitlement for the total aggregate usable physical capacity that is available to TSM Q2: What about a customer who has IBM ProtecTIER as well as other disk and tape that are part of their primary storage pools? A: The customer will need entitlement of the standard TSM SUR capacity tiers for the non-ProtecTIER capacity and entitlement for the ProtecTIER Option for only the ProtecTIER capacity Q3: Can customers with existing TSM SUR entitlement and IBM ProtecTIER migrate to this Option? A: Yes. Customers who have IBM ProtecTIER and TSM SUR entitlement can migrate some of their standard tier capacity licensing to ProtecTIER Option licensing. The requirements for this are: Growth license revenue Term commitment Standard S&S growth No S&S revenue erosion due to the migration Since the customer will require less ProtecTIER Option licenses vs. the standard TSM SUR capacity tier licenses, this erosion will need to be offset by less discount on the ProetcTIER Option licenses and growth revenue to ensure S&S revenue neutrality Migration will be done through a special bid and will require a license exchange agreement signed by the customer to relinquish the standard TSM SUR capacity tier licenses. Q4: Does this licensing apply to any dedupe appliance/gateway? A: No. This licensing option is only available for IBM ProtecTIER Q5: How do I measure the capacity required for the ProtecTIER Option. A: ProtecTIER Option measurement macro will be loaded here on GA (Aug 23)here