1. Adding Value to Your e-business with IBM Tivoli Performance & Availability Solutions
Manage Your Technology — Master Your Business
Customer Name
Speaker Name

2. Agenda Introductions Today’s Business Environment
The Tivoli Approach to adding value:
Monitoring,
Event Correlation,
Business Impact Management;
Measuring the Value the P&A Solution Brings
Questions & Answers
2 | © Copyright IBM Corporation All Rights Reserved

3. e-business Initiatives
Achieve business goals - revenue and profit
Protect and enhance the company’s brand image
Attract and keep customers
Effectively transact business with trading partners
Meet service level commitments
Grow the e-business
Manage Costs
To better understand the business and systems management needs for e-Business, Tivoli contacted over 400 customers and business partners to determine their mission critical e-business issues.
These issues were identified as the most important.
3 | © Copyright IBM Corporation All Rights Reserved

4. The Performance and Availability Challenges
IT visibility at executive level
Line-of-Business driven initiatives
The cost of downtime
Increasing complexity
New applications and middleware
How do I know I’m doing the right things?
Cost of downtime for your company makes sense when measuring your costs and revenues. However, there are four general areas when considering the cost of downtime.
1. What is the cost of lost productivity? There are direct costs associated with half of the support group taking a coffee break when a server goes down. What happens when the group taking a break, since servers are down, are your support reps. Your best customers are calling to find out what’s going on and no one is there to help them?
2. How much revenue is lost when services are unavailable. When talking about e-business, the costs are as easy to calculate as the lost revenue at Wal-Mart when all the cash registers are off-line. But suppose a service outage is regulated by a government agency. Then, you have to consider the costs of paying penalties.
3. There was a recent example of famous e-business that had an outage for several hours, and they losses were estimated to be in the millions of dollars. How did this affect their market capitalization? And once revenue and market cap drop, what happens to your ability to secure credit?
4. Then there are the miscellaneous expenses. How much do you have to pay your top people when a service is down? One group may have to work many hours of overtime (at salary x 1.5 rate) to get the service back up and running. Or, consider the Wal-Mart example: if the tills were down, they wouldn’t shut their doors. The would possibly bring in everyone they could and do manual cash receipts using hand-held scanners, radios, and and lots of management overseeing the operation. How many extra people would have to be used to handle this?
4 | © Copyright IBM Corporation All Rights Reserved

5. Address the Challenge with Tivoli
Tivoli simplifies Performance & Availability management using a three layer approach that maximizes e-business infrastructure return-on-investment
Business Impact Management
Line of business views, workflow, business process integration
cross discipline analysis,
predict, optimize, provision,analyze, account, report
Event Correlation and Automation
Cross system and domain root cause analysis
Monitoring
Discover, collect metrics, probe (e.g., user experience), perform local analysis, filter, concentrate,
determine root cause, take automated action
Master Your Business
Contract, measure, report, and manage committed service levels
Understand the impact of IT performance on the business
Manage Your Technology
Reduce the cost of downtime
Gain operational efficiency through automation
Tivoli will attack the market for P&A management using a simple three layer approach that matches the key customer needs within each category. The key values transcend all three categories: Rapid time to value, ease of use, and quality.
Customers require immediate benefit from their investment in Tivoli products. Tivoli is providing out-of-the-box best practices to get customers up and running, right away, whether they buy individual products or integrated solutions.
Tivoli has appointed a quality czar and lead architects for each layer and implemented quality plans for all offerings. The APAR backlog has been reduced 40% since June. All new releases must have all sev 1 and sev 2 defects fixed prior to release.
This slide shows how Tivoli is approaching the set of solutions that make up Performance and Availability. This “Marketecture” is based on Tivoli’s experience in managing thousands of customers around the world.
At the lowest level is the gold or yellow box that represents the monitoring that is needed to begin the process. Here is where the metrics are collected, local analysis performed, and checks for persistence of situations in a customer’s environment are done. Here the metrics are collected that will feed the higher layers of the stack and solve any problems that are local to a single resource.
As you move to the green box, this is where the information will be combined from multiple resources, the information correlated, and action taken to solve or prevent problems across multiple systems and domains. There is a significant amount of automation that is provided to ensure customers have the highest performance and availability and this is where it is provided.
At the top layer, the blue box, this is where the business impact of changes to a customer’s environment is determined. Here the view of the LOB executive is taken to see what the impact of any change is to business processes. At this high level, the historical data is looked at to ensure that Service Level Agreements are met, as well as doing any capacity planning to ensure the needed performance as situations change.
5 | © Copyright IBM Corporation All Rights Reserved

6. Managing e-business Resources
Browsers
Application
Servers
Web/Edge
Terminals
Host Systems
Host Databases
Clients
Distributed Databases
IDENTIFY problems at the resource level
NOTIFY operations that there is a problem
Take action to CURE problems when possible
6 | © Copyright IBM Corporation All Rights Reserved

7. What Do You Need From a Solution
What the experts say ...
Business impact measurement
Link user experience with infrastructure performance
IT activity prioritization
Quick implementation
Must have strategy to deliver all of these to be successful
7 | © Copyright IBM Corporation All Rights Reserved

8. Tivoli Performance & Availability Value
Reduce Costs
Provides flexibility to manage emerging e-business applications without changing management infrastructure
Use fewer resources to detect and repair
Protect and Improve Revenue
Reduces downtime via proactive management
Reduces problem resolution time by quickly identifying the problem
Produces satisfied customers
Automatic problem resolution
Rapid Time to Value
Fast Implementation
Real-time information in minutes, not weeks
Modular Integration
8 | © Copyright IBM Corporation All Rights Reserved

9. Monitoring e-business Resources
Combined monitoring of:
Hardware/OS
Network Connections
Web Servers
Middleware
Applications
Local correlation and diagnosis at the resource level
Take action to cure problems when possible
Notify other systems or administrators
Browsers
Application
Servers
Web/Edge
Dumb
Terminals
Host
Systems
Databases
Clients
Distributed
The monitoring layer – or yellow layer – focuses on optimized management of one server at a time. Everything on that server is potentially monitored, with local correlation, diagnosis, and automated corrective action. The interplay between hardware, operating system, network connections, middleware, and applications can all be managed in context of the server.
To understand the interplay between multiple servers or devices, or the impact of the server status to the business, the yellow layer send events to the higher layers.
9 | © Copyright IBM Corporation All Rights Reserved

10. Tivoli Proactive Monitoring Offerings
Broad Support for Middleware
IBM Tivoli Monitoring for …
Databases
Applications
Messaging & Collaboration
Business Integration
Web Infrastructure
Content & Personalization
Security & Edge Services
Proactive Analysis Components
Service Level
Advisor
Web Server
Analyzer
Tivoli Data Warehouse
Tivoli proactive monitoring solutions manage a wide range of systems, applications, and middleware. Tivoli proactive monitoring solutions are differentiated by:
Superior Technology
Correlation and cure at the source of the problem
Easier customization through the workbench
Best practices out of the box
Middleware
Monitoring of leading middleware
Focus on the foundation for new applications
Partnering
Tight integration with IBM and non-IBM applications
Leverage IGS experience for best practices
The monitoring engine uses Resource Models, a major part of the Proactive Analysis Components (PACs). Resource models include problem signatures, the unique symptoms associated with each problem, and the automated corrective action to take for each problem signature.
Resource model capabilities that differentiate the Tivoli solution include
- Multiple source data capture
- Local persistence checking
- Local intelligent correlation
- Automated corrective action
- Local data store (reporting)
- Best practices out of the box
- Workbench for customization
Tivoli proactive monitoring solutions provide positive customer ROI when used alone or in combination with higher level Tivoli applications.
IBM Tivoli Monitoring
Monitoring Engine Supports Proactive Analysis Components
Problem Signatures X Y Z
WorkBench
DM Engine
X+Y+Z = action
Resource Models
10 | © Copyright IBM Corporation All Rights Reserved

11. Event Correlation Focuses on Multiple Resources
Host Systems
Collect and correlate events from multiple resources
Problem signatures are used to determine root cause
Automate corrective actions
Notify other systems or administrators when necessary
Host Databases
Terminals
Distributed
Databases
Servers
Clients
Application
Servers
Web/Edge
Servers
Console
Browsers
11 | © Copyright IBM Corporation All Rights Reserved

12. Tivoli Event Correlation and Automation Offerings
Broad Support for Events
IBM Tivoli Event Correlation and Automation for…
Distributed Systems
OS/390, z/OS
SNA Networks
TCP/IP Networks
Applications
Middleware
TEC
Service Level Advisor
Web Server Analyzer
Tivoli Data Warehouse
NetView
The Event Correlation and Automation Layer – or green layer – understands network topology and the physical relationships between components. The green layer understands problem signatures - the unique set of symptoms associated with each problem.
Most problems have alot of symptoms. For example, when a database fails, all of the applications using the database may report errors. The green layer associates all of the error reports to the root cause of the problem. Administrators can focus on the real problems.
By identifying root causes quickly, downtime is minimized. We spoke earlier about the cost of downtime. By minimizing downtime, event correlation and automation solutions provide a quick return on investment for customers.
IBM Tivoli Monitoring
Non Tivoli Monitoring
Leverage existing management infrastructure
DM Engine
12 | © Copyright IBM Corporation All Rights Reserved

13. Business Impact Management Takes a LOB View
Proactively determine the impact of events on the business
View how business processes span the physical environment
Verify end user service levels
Analyze historical data and predict future service levels
Host Databases
Host Systems
Dumb Terminals
Distributed Databases
The business impact management layer understands the role of resources in your business. When a resource fails, which customers will be impacted? Which service level agreements are potentially impacted? How do I know if service level agreements are met?
Clients
Servers
Application
Servers
Browsers
Web/Edge
Servers
13 | © Copyright IBM Corporation All Rights Reserved

14. Tivoli Proactive Business Impact Management Offerings
Daily Operations
Historical Analysis for Predictive Management
Tivoli Business System Manager
Service Level Advisor
WEB
Tivoli Data Warehouse
Leverage existing management infrastructure
Tivoli
3rd Party
In-house
Online banking
service level agreement is at risk
Online banking user response time is slow
Tivoli is the only vendor that can provide this COMPHREHENSIVE and INTEGRATED Business Impact management.
3 key concepts:
Real-time Daily Operations Management
Historical Analysis for Predictive Management
Enterprise Management Data Warehouse
The concept behind Tivoli Enterprise Data Warehouse begins with an understanding that whether the source applications are framework-based, or not, each application currently maintains its own production database of management data. To provide added value, data is extracted from these applications and stored in a common Tivoli enterprise data warehouse. This warehouse provides an open and proven schema that stores and correlates data from virtually any application. Tracking components, their attributes and measurements.
Utilizing this common warehouse, standard out-of-the-box reports and report templates are provided. These reports will provide similar information to those provided by many of the TDS guides today. In addition, high value reporting applications such as Service Level Management and Web Analytics can be developed and provided as separate products.
Tivoli will provide a web-based reporting front end, but the open architecture provided by the warehouse will allow other BI front ends (such as Cognos, Business Objects, etc) to be used to access the data in the warehouse.
AND the existing management infrastructure (Tivoli & 3rd party) is leveraged.
Tivoli Enterprise Counsel/ Distribution Monitoring
14 | © Copyright IBM Corporation All Rights Reserved

15. What Do You Need From a Solution
Business impact measurement
Tivoli Business Impact Management
Link user experience with infrastructure performance
Tivoli Monitoring Solutions
IT activity prioritization
Tivoli Event Correlation and Automation Solutions
Quick implementation
Tivoli solutions deliver rapid time to value and ROI
15 | © Copyright IBM Corporation All Rights Reserved

16. BEFORE Tivoli Performance & Availability Management
Operations Center
Server cowgirl4 down !
Traditional management tools are NOT designed to meet today’s needs. Traditional systems management tools focus on components (servers, routers, applications, disk space) of the IT infrastructure. But that doesn’t help you decide which problems are most important to deal with or what areas of the business are impacted, if any, when a particular component is down or performing poorly.
Traditional tools provide monitoring and event correlation to help customers determine the state of each resource. These tools are often highly refined and provide a wealth of information on these different classes of resources. Tivoli has a strong offering of products to manage specific components. However the IT staff has to deal with many different tools and consoles to find out the state of various resources.
So while you still need these traditional tools there is more.
Component Approach
BEA Lotus Microsoft SAP Siebel WebSphere
16 | © Copyright IBM Corporation All Rights Reserved

17. WITH Tivoli Performance & Availability Management
Operations Center
NetView
TEC
Service Level
Advisor
Tivoli
Monitoring
Business System
Manager
Tivoli Data Warehouse
BEA Lotus Microsoft SAP Siebel WebSphere
17 | © Copyright IBM Corporation All Rights Reserved

18. Tivoli Helps to Reduce Costs
Improve IT Staff Scalability
Grow business faster than IT staffing
Improve IT Staff Productivity
Decrease time needed for management process
Match skills to appropriate problems and tasks
Reduce impact of staff turnover
18 | © Copyright IBM Corporation All Rights Reserved

19. Tivoli Helps Protect and Improve Revenue
Improve service delivery and business system availability
Reduce downtime via proactive monitoring
Reduce problem resolution time
Produce satisfied customers
Deliver and measure service…
…from the customer’s perspective
19 | © Copyright IBM Corporation All Rights Reserved

20. Tivoli Provides Rapid Time to Value
Rapid deployment
Real-time information in minutes, not weeks
Designed for modular integration
Each solution can be installed separately
When you need to tie it all together, you can do so easily
20 | © Copyright IBM Corporation All Rights Reserved

21. Superior ROI with a Complete, Integrated Solution
CONTRACT, MEASURE, AND REPORT
Service Levels
MANAGE Service Levels
IBM Tivoli
Service Level Advisor
IBM Tivoli
Web Site Analyzer
IBM Tivoli Business Systems Manager
Reporting and
Business Intelligence Integration
IBM Tivoli NetView
IBM Tivoli Enterprise Console
Tivoli Enterprise
Data
Warehouse
You’ve seen what’s coming in each one of the layers, now let’s look again at the value associated with a fully integrated Tivoli solution. Tivoli Proactive Analysis Components – the out-of-the-box best practices, include the following:
- multiple resource models for the monitoring layer
- multiple cross domain correlation and automation rules for TEC
- Data store schema for TBSM
- ETL (Extract, Transform, & Load) for the Tivoli Enterprise Data Warehouse
- Out-of-the-box reports
With the full Tivoli solution, you get monitoring and automated corrective action on individual servers (yellow), cross domain correlation and automation (Green), and management in the context of your business (blue). All layers tie into the Tivoli enterprise data warehouse, enabling service level agreement management, web analysis, cross application reporting, and a centralized data store for business intelligence tools such as data mining.
IBM Tivoli Monitoring for Transaction Performance
IBM Tivoli Monitoring
IBM Tivoli Monitoring for…
“Tops down”
“Bottoms up”
21 | © Copyright IBM Corporation All Rights Reserved

22. Example
According to an IDC study of 30 large companies conducted in
Average company size 10,000 employees
Average number of IT staff 53
Average cost saving from improvement in IT productivity about $500,000 per year ($50 per employee)
Average downtime reduced from 12.6 hours/month to 4 hours/month (68%)
Estimated total savings in first year from IT management productivity and reduced downtime was about $6,000,000 ($600 per employee)
Source: IDC, 2001
22 | © Copyright IBM Corporation All Rights Reserved

23. Advantage…IBM Tivoli software
Technological innovation
Unsurpassed Research & Development
Reliable, proven products
Speed to market
Global reach
World class support
Ecosystem of partners
Sell the value of Tivoli and IBM as one company.
23 | © Copyright IBM Corporation All Rights Reserved

24. Alternatives Business Value is the Difference
Your Choices:
Do nothing (Status Quo)
Choose a competitor
Choose IBM Tivoli
Make the strategic business decision…
IBM Tivoli software
24 | © Copyright IBM Corporation All Rights Reserved

25. Tactical Business Decision
Return on Investment
(Target vs. Typical) 5 4 3
Cost in 000,000 2 1
Initial
Year 1
Year 2
Year 3
Year
Cumulative ImplementationCost
Cumulative Savings and Benefits
25 | © Copyright IBM Corporation All Rights Reserved

26. Strategic Business Decision
Return on Investment
(Target vs. Typical) 5 4 3
Cost in 000,000 2 1
Initial
Year 1
Year 2
Year 3
Year
Cumulative ImplementationCost
Cumulative Savings and Benefits
26 | © Copyright IBM Corporation All Rights Reserved

27. Where are you now ? What are your potential benefits ?
World Class
Advanced
Medium
Medium
Basic
27 | © Copyright IBM Corporation All Rights Reserved

28. Cost / Benefit Analysis
Now that we all agree that IBM Tivoli solutions and methods could be of benefit to you, we can help you to convince senior management
Develop a vision of how this would work in your environment
Develop an estimate of the potential Costs and Benefits in your environment
We can help build the Cost/Benefit Analysis (CBA) study
28 | © Copyright IBM Corporation All Rights Reserved

29. Customer Commitments for a Cost Benefit Analysis
Embark on a joint project
Senior management and executive sponsorship is critical to success
Commitment to conduct study
Commitment to attend a presentation of results when our efforts are complete
Attend a presentation of results when the project is complete.
29 | © Copyright IBM Corporation All Rights Reserved

30. How Do We Estimate Financial Value?
Understand your business and IT environment and needs
Understand the cost of downtime
Estimate benefits of improved performance and availability
Talk to the business units
Identify other benefits by industry and environment
30 | © Copyright IBM Corporation All Rights Reserved

31. Understand the Business and IT Environment and Needs
How many servers/desktops/… ?
Current tools and maturity of support processes
IT support staff numbers by role, activities, skill levels
Key business applications
New initiatives
What’s the current availability of critical services ?
What are the major problems: process/people/tool ?
What services does your company rely on you most for?
31 | © Copyright IBM Corporation All Rights Reserved

32. Understand the Business and IT Environment and Needs
How do you manage things now ?
How could you manage them better ?
Where are the opportunities to create business value ?
creating a more streamlined IT organization
reducing IT support costs
reducing unplanned outages / improving services provided
32 | © Copyright IBM Corporation All Rights Reserved

33. Understand the Cost of Downtime
Indirect cost of downtime
Number employees/customers dependent on availability
Direct cost of downtime
Revenue, penalties, value of money
33 | © Copyright IBM Corporation All Rights Reserved

34. Estimate Benefits Infrastructure system management staff Availability
Direct savings
Indirect savings
Talk to the business units
Identify other benefits by industry and environment
Mergers and consolidations
Outsourcing
34 | © Copyright IBM Corporation All Rights Reserved

35. Action Plan Get executive sponsorship and commitment Data collection
Put the required data into the tool
Any estimated data must be confirmed
Generate results
Review the results with the sponsor
Present the study
35 | © Copyright IBM Corporation All Rights Reserved

36. Thank You