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A New Way to Build and Deliver: Selected Cloud Offerings

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1 A New Way to Build and Deliver: Selected Cloud Offerings
Aug. 2015 Amr Eid Cloud Architect, IBM Cloud

2 Innovation is the new currency
“Two guys in a Starbucks can have access to the same computing power as a Fortune 500 company.” Jim Deters - Founder, Galvanize Innovation is the new currency Delivery speed and productivity rapidly enable businesses to grasp new opportunities New apps are consolidating data and capabilities to engage new audiences Developers are empowered Business leaders innovate IT leaders advance change New business are composed leveraging digital services from a broad ecosystem Please note: Presenter notes are on every slide. Written as a suggested script to help with messaging. Companies of all sizes have the ability to disrupt, or face the prospect of being disrupted.

3 App development today is about speed and choice
Design Thinking Steer DevOps Continuous Feedback Operate Dev/Test Mobile Containers Deploy Tooling APIs IoT Microservices Runtimes Extreme Agile Cloud provides developers with instant access to the APIs, services and infrastructure they need to launch their ideas into the present. 3

4 Timing is critical… Today’s apps must keep up with the speed of the app revolution. Core IT Customer Managed Code Data Runtime Middleware OS Virtualization Servers Storage Networking Benefits Fully customizable. Few limitations. Necessary for some solutions. Existing Investments. Time Commitment Weeks to setup and deploy. Maintenance/upgrades of hardware and software. Time to initial deployment ~ Weeks ~ Days ~ Minutes

5 Timing is critical… Today’s apps must keep up with the speed of the app revolution. Infrastructure as a Service Customer Managed Service Provider Managed Code Data Runtime Middleware OS Virtualization Servers Storage Networking Benefits Most control in the cloud. Necessary for some solutions Infrastructure managed by SP. Time Commitment Minutes to provision VM. Time to configure software and apps varies. Maintenance/upgrades of OS, middleware, runtime. IBM SoftLayer Core IT Time to initial deployment ~ Weeks ~ Days ~ Minutes

6 Timing is critical… Today’s apps must keep up with the speed of the app revolution. Platform as a Service Customer Managed Service Provider Managed Code Data Runtime Middleware OS Virtualization Servers Storage Networking Benefits Setup environments and deploy apps very quickly. Infrastructure and platform managed by SP. Time Commitment Minutes to setup and deploy. Focus on your apps and their data. IBM Bluemix Core IT IaaS Time to initial deployment ~ Weeks ~ Days ~ Minutes

7 Cloud-based Services with SoftLayer

8 Of those that survive, what makes a leader?
Cloud computing is continuing to transform the way organizations manage their infrastructure. 80% of organizations will be using cloud services by the end of 20151 Many cloud providers are ready to supply them. But analysts predict 1 in 4 of these cloud providers will be gone by Of those that survive, what makes a leader? 1,2Thibodeau, Patrick, “One in four cloud providers will be gone by 2016,” ComputerWorld article, Dec. 11, 2013. 8

9 Introduction to SoftLayer - A Global Hosting Leader
Leading IaaS Provider Offering virtualized Public Cloud instances, Private Cloud deployments, Bare Metal Servers Founded in 2005, Dallas TX Model predicated on software-driven infrastructure Unencumbered by early-industry legacy restrictions Founding principles Innovation, Empowerment, Automation, Integration An IBM Company Acquired by IBM in July 2013 IBM acquired SoftLayer in June 2013 to expand its Cloud offerings and portfolio. SoftLayer is the leading Infrastructure as a Service Provider. They started in 2005 with ten original founders. Their expertise came out of the more traditional managed hosting world. The overarching concept of SoftLayer was that they saw growth of managed hosting and thought to create a platform that you can buy by the drink, on demand, and you can launch literally in minutes. And that was the overarching premise of what started SoftLayer. They’re headquartered in Dallas, Texas. Roughly 700 employees and 13 data centers that span the globe throughout North America, Europe and Asia. Global Cloud Leader Created by 10 Industry Veterans – 18 years – 3 companies Started with one of the first mass market hosting companies in the world 1995 Dialup, hosting, domain registration Learned the value of automation Next moved to ne of the first mass market dedicated hosting companies in the world 1999 Colocation & managed services Learned how automation could enable faster provisioning SoftLayer We previously had seen how most customers were ordering the same products and services over and over, but did so in a custom way. They were all using the same x86 servers, firewalls, and load balancers, etc but in a custom deployment. We had the ability to created something new from blank sheet of paper – driven by customer demands and needs. Wanted to design something that at the time didn’t exist We decided to pre-build a standardized platform with an abstraction layer on top called IMS that allows us to sell infrastructure as service. Buy it buy the drink, only pay for what you used, and easily scale over time with price predictability We had to think differently about how we did things before to achieve the attributes our customers were looking for. Rack and stack servers differently Create a new complex network topology that didn’t exist Create a billing model to allow for monthly and hourly billing Ultimately SoftLayer would become one of the first (if not the first) cloud computing company in May months before our closest competitor – Amazon. Four Guiding Principles Innovation – “innovate or die” – SoftLayer’s fundamental operating mantra is to bring new technologies to market as soon as they become commercially viable Empowerment – complete transparency and control to the end customer. Our datacenter is your datacenter. We show customers everything. If you want the information its there, if not spin up your infrastructure and you are on your way. Automation – key takeaway today – automation / automation / automation – if it cannot be automated – it does not live within the SL platform. Automation; 1) reduces costs 2) improves efficiency, 3) improves time to market, 4) eliminates human mistakes and results in higher SLA Integration - hosting solutions traditionally have been disparate operating silos – SoftLayer offers a fully integrated approach from billing to service delivery delivered thru a single interface and API set. It also means building solutions that allow you to integrate your current infrastructure into the SoftLayer cloud. Top 100,000 Sites By Hosting Provider Source:

10 The difference – network and global expansion
40 WW data centers in 15 countries Live: Milan, Hong Kong, London, US Federal, Paris, Toronto, Sydney Next Up: Frankfurt, India Global expansion Key design elements Control and transparency High performance Data sovereignty Security In January we announced that we will be investing $1.2B in new cloud resources to significantly expand SoftLayer’s presence and provide clients with localized data management solutions required to drive transformation This year IBM plans to deliver cloud services from 40 data centers worldwide in 15 countries and five continents globally, including North America, South America, Europe, Asia and Australia.  Today, Hong Kong will be the first of those data centers. In the proceeding months throughout 2014, IBM will open 15 new centers worldwide adding to the existing global footprint of 13 global data centers from SoftLayer and 12 from IBM which I talked about earlier. Among the newest data centers to launch are China, Washington, D.C., London, Japan, India, Canada, Mexico City and Dallas. With this announcement, IBM plans to have data centers in all major geographies and financial centers with plans to expand in the Middle East and Africa in 2015.” Footnote: IBM Press Release January 17th 2014 Localized capabilities IPv4/IPv6 dual stack Global DNS Global DDOS mitigation Global internet exchanges and peerings

11 Triple-network architecture
High-performance public network with transit from multiple tier-1 carriers Secure OOB management via VPN Private network for intra-application and inter-facility communications, access to shared services Native IPv6 support Virtual racks for integrated management Complete suite of network services 99.999% SLA for all networks 1/10Gb NIC’s available Triple network Architecture Every physical or virtual node has 5 network interfaces 2 x GigE or 10GigE to the public network Transit to and from the internet 2 x GigE or 10GigE to the private network Connect any physical or virtual machine to any other in any datacenter Access to the service network – SAN storage, Object storage, DNS resolvers, OS update servers, application update servers, template repository 1 x GigE to the management network VPN Access to the management interface – BMC and KMV over IP Customer controlled – create VLANs, add/remove IPs, SWIP IPs – with dual stack IPv4 and IPv6

12 Robust, full-featured API
Improves customer control, reduces error, increases flexibility SoftLayer API provides 1,600 function calls to over 200 services Supports REST, SOAP and XML-RPC interfaces Enables full auto-scaling implementations Comprehensive documentation, libraries, and support Functions include: Automatic server deployment Service provisioning Reboots and reloads Ticketing Hardware configuration Software load DNS Network Storage Security scans Monitoring Robust, full featured API SoftLayer started with the API first – our own control panel uses our API 1600 Function calls to over 200 services – industry competitors less than 100 Support Rest, SOAP, and XML-RPC interfaces Easy integration into existing environments Supported by SL developer network with numerous examples, downloads and plugins SoftLayer’s own iPhone/iPad and android apps show the power of the API

13 Complete control Mobile and Web-based management portals
Purchase, provision, deploy and manage infrastructure Access to services, tools, automation and tutorials Secure access via VPN to management network Two-factor authentication to Web portal In addition to the API, (and built on top of it), we’ve got a full-featured, secure Web-based portal for complete management of your infrastructure. We’ve also got mobile apps available for all the leading devices including iPhone and iPad, Android smartphones and tablets, and Windows Mobile devices.

14 Flexible Capacity – traditional vs. dynamic capacity planning
CAPEX undercapacity overcapacity flexible capacity reduction of Initial investment Highly animated slide… please watch in presentation mode. Load forecast – generically forecasted as linear growth Traditional IT capacity planning, based on this linear growth Three distinct Capex investment point Starting with the initial investement Which immediately shows the high barrier for innovation Not only to start-ups, new companies bringing new solutions to the market and need upfront investment for IT Infrastructure in the traditional way But also for new, innovative projects in Enterprise and SMB Always the constant need to defend a new project, defend the cost to the organization, upfront cost without any idea of ROI, yet Constantly battling up hill with stakeholders and budget holders in the organization to justify a project everybody sees is beneficial to the company Then the actual load starts developing Never linear, of course Brings about high costs Overcapacity – invested money not returning anything no profit, no ROI But more importantly: undercapacity This is where the cost is going to hurt big time This is where customers will walk away Bad response times Low service availability Bad press, bad impression, bad reputation Then, the Dynamic Cloud Infrastructure planning Able to follow actual demand or actual load Reduced Initial Investment Beneficial for start ups and small companies Make your investment follow demand, more easy to get the money But also for projects and LOBs No need for high upfront budgets No need for justification of investments People see the actual load/demand and will approve of the gradually increasing budget needs There’s a direct link with the ROI Flexible capacity Keeping in pace with load/demand No severe overcapacity No undercapacity Load undercapacity forecasted load actual load Infrastructure Planning barrier for innovation traditional IT infrastructure dynamic cloud infrastructure time

15 SoftLayer provides a global, interconnected platform with flexible options so you can move virtually any workload to the cloud. Hosted private clouds Choose bare metal, virtualized infrastructure or both in a single-tenant model to meet enterprise needs. Mobile applications Build and host mobile apps on a global infrastructure at Internet scale. Development and test Develop and test business apps with APIs1 and a DevOps runtime services environment. High-performance computing Access industry-leading HPC cluster technologies to run entry-level to the most demanding HPC apps. Web applications and e-Commerce Deploy any n-tier application with demanding requirements on an easily scalable, hybrid infrastructure. SoftLayer infrastructure as a service can provide the platform you need to change your business model and gain a competitive advantage using cloud. SoftLayer uniquely has designed and deployed a global, interconnected platform that meets the key operational and economic requirements of cloud infrastructure across a broad portfolio of infrastructure—dedicated and shared devices, physical and virtual servers and hourly compute instances, along with a wealth of storage, networking and security components. Our clients can take these building blocks and deploy public cloud instances, build private clouds on their choice of virtualization stack, leverage the raw power of bare metal on demand or combine these solutions into distributed, hybrid architectures. Build what you want, or leverage our turn-key big data and private cloud solutions to design and deploy complex, scalable infrastructure online in real time. It’s all delivered as a unified service, managed from a single pane of glass via our web portal or mobile apps, and accessible via a powerful, full-featured API. One bill, one portal, one platform. It's a model that provides users with a greater range of choice, flexibility and control than any other cloud infrastructure solution in the industry, and it’s a model that support virtually any workload in the cloud. Hosted private clouds - SoftLayer provides hosted enterprise private clouds built in a single tenant model and used exclusively by your organization. The private cloud can contain both bare metal and virtualized infrastructure within the same private cloud. Additionally, the private cloud can provide higher availability, data isolation, security, and other key features. High performance computing - The need for high-performance computing capabilities is rapidly crossing all industries and all company sizes. SoftLayer offers industry-leading HPC cluster technologies required to run HPC applications from entry-level to the most demanding compute intensive workloads. Big data analytics - Big data is all about the storage, management and analysis of the massive amount of data that is being generated by every organization in every industry. The big data solutions at SoftLayer can provide businesses with the robust storage, network, and bare metal compute resources required to deliver on the promise of big data in an on-demand fashion. SoftLayer can provide a more robust and scalable infrastructure as a service solution to support your solution. Social business - SoftLayer can provide the ideal platform for hosting social business applications for global enterprise customers. Social business applications are elastic in nature due to business operational requirements and therefore make good candidates for being hosted on a scalable cloud platform such as SoftLayer. Mobile applications - Build your mobile applications on a global cloud infrastructure at Internet scale. Our platform drives one of the cloud’s most innovative services and one of the world’s most dynamic applications. Our unique network design and fully automated platform lets you unify any of our platform services, physical or virtual, into a seamless solution controlled through a single management system. Development and test - Develop and test your business applications more quickly using your development toolset. SoftLayer can also help you deploy with APIs and a DevOps runtime services environment on SoftLayer’s infrastructure that supports bare metal and virtualized infrastructures in a single management model. This offers the ability for business applications to be developed and deployed in the same operating environment to help improve the speed, scalability and overall cost of developing and deploying new applications. Web applications and e-Commerce – You can build your e-Commerce application on the SoftLayer cloud infrastructure and deploy any n-tier application that comes with demanding requirements. Our platform can power your application infrastructure, providing you a solid foundation to handle fluctuating traffic with the right security at a reduced cost. ISVs, production ERP and unmanaged production - Develop and run your key business applications, business process automation, business management and mission-critical production workloads across your organization using our cloud platform designed with security, high availability and delivery best practices at cloud economies of scale. Our hosted infrastructure solutions with enterprise private cloud and managed infrastructure can help solve complex deployment needs spanning private and shared clouds. Many cloud-based ISVs have chosen our infrastructure to deploy to all their clients in a software-as-a service (SAAS) model. This can deliver enterprise-grade computing with scaling and cost savings for our clients. Big data and analytics Store, manage and analyze data with the robust storage and computer power. ISVs2, production ERP and unmanaged production Combine dedicated and shared cloud environments on a hosted infrastructure, backed by monitoring, backup and restore, and high availability. Social business Host social business apps for global enterprise customers. 1Application programming interface (API); 2Independent software vendor (ISV) 15

16 21,000 leading-edge customers
Software as a Service Mobile & Communications WhatsApp Voxer Instapaper Yelp Social Games and Entertainment Platform as a Service Marketing and Digital Media Leading-edge Customers First 5 years – internet centric SMBs – born on the web and die on the web – revenues tied to platform Last 3 years – huge shift to enterprise or fortune 1000 – top 25 customer base rolled almost 100% Future – continue to service internet centric customers while services cloud demands of IBMs enterprise clients Hosting & Service Providers Enterprise

17 The Digital Innovation Platform
IBM Bluemix The Digital Innovation Platform

18 What is Bluemix? Bluemix is an open-standards, cloud-based platform for building, running, and managing applications. Build your apps, your way Use the most prominent compute technologies to power your app: Cloud Foundry, Docker, OpenStack. Deploy and manage hybrid apps seamlessly Get a seamless dev and management experience across a number of hybrid implementations options. Scale more than just instances Development, monitoring, deployment, and logging tools allow the developer to run and manage the entire application. Layered Security IBM secures the platform and infrastructure and provides you with the tools to secure your apps. Flexible Pricing Try compute options and services for free and, when you’re ready, pay only for what you use. Pay as you go and subscription models offer choice and flexibility. Coming Summer 2015 Extend apps with services A catalog of IBM, third party, and open source services allow the developer to stitch an application together quickly.

19 More openness and choice than ever before
Bluemix is anything but locked down. You choose how you build, deploy, and manage your apps. Bluemix takes care of the rest. Compute Dev Tooling Choose the level of infrastructure abstraction based on your app’s architectural needs. From editors to source code management to continuous delivery, you can use Bluemix’ powerful tooling or easily bring your own. Location Services IBM Deploy apps to Bluemix Public (in a growing number of geos), your own dedicated cloud Bluemix, or one that runs within your data center (Local*). Pick from a catalog of IBM, third party, open source, or your own services to extend your apps. Third Party Open Source Yours *Bluemix Local coming Summer 2015

20 How does Bluemix work? + + + + + +
Bluemix is underlined by three key open compute technologies: Cloud Foundry, Docker, and OpenStack. It extends each of these with a growing number of services, robust DevOps tooling, integration capabilities, and a seamless developer experience. DevOps Tooling Integration and API Mgmt Your Own Hosted Apps / Services Catalog of Services that Extend Apps’ Functionality Web Data Mobile Analytics Cognitive IoT Security Yours + Flexible Compute Options to Run Apps / Services Instant Runtimes + Containers + Virtual Machines + Platform Deployment Options that Meet Your Workload Requirements + Bluemix Public Bluemix Dedicated Bluemix Local* + Powered by IBM SoftLayer In Your Data Center *Bluemix Local coming Summer 2015

Bluemix Continuously Delivers New Capabilities GROWTH | TOTAL SERVICES & RUNTIMES 2x 52 79 99 Services in 6 months GA - Q3 2014 Q4 2014 Q1 2015 NEW SERVICES | Q4 & Q1 Data Other Integration Data Dataworks Preparation DataWorks Analytics for Hadoop Internet of Things Foundation Workflow API Management Secure Gateway SQL Database - Premium Insights for Twitter IBM DevOps Delivery Pipeline Track and Plan Other Watson Security MobileFirst Platform for iOS Predictive Modeling IBM Containers Logging Service (ELK) Workload Scheduler Object Storage AppScan iOS Analyzer User Modeling Language Identification Machine Translation Message Resonance Relationship Extraction Q&A Concept Expansion AppScan Dynamic Analyzer AppScan Mobile Analyzer AppScan Static Analyzer Threat Intel/IP Reputation (API) Watson Alchemy API Speech to Text Text to Speech Tradeoff Analytics Visual Recognition Concept Insights Q4 2014 Q1 2015 3rd PARTY Apersona Ustream PayPal Fastly ClearBlade Platform PayPal Google Wallet Cupenya Insights HERE Eperu Simplicite

22 What’s new in Bluemix? Choose the right Infrastructure to power your workloads IBM Containers Build and deploy hosted containers in the cloud. Built on Docker. Virtual Machines Deploy and automatically scale virtual machines. Built on OpenStack. Accelerate agility, even around your most sensitive systems and data Bluemix Local Bluemix is an integrated hybrid cloud platform, with three delivery models, a syndicated catalog and common ops console. Buemix Local complements public and dedicated and is delivered as a fully managed service in your data center. Coming in summer 2015. Use integration to fuel digital and composable business and delivery models Secure Gateway Responsibly connect your own network to the public cloud with a credential wallet. API Management Publish, promote and manage APIs in a secure, scalable way. API Harmony Find the perfect APIs for your app with the world’s largest knowledge base of APIs. Connect and Compose Instantiate a connector, generate an API and create an API assembly. API Catalog More easily search for and use private and unmanaged APIs in the Bluemix catalog. Make data available where and when you need it DataWorks New intuitive tooling to find, shape and deliver trusted data. Object Storage Secure storage for unstructured data that can easily be included in cloud apps and services. Built on OpenStack. Create leading digital experiences for your customers MobileFirst Platform for iOS New set of iOS specific services for mobile application developers. Watson New services bring the power of Watson to speech and text. Twitter Include the power of real-time sentiment and feedback in your apps. Deliver with speed and quality Delivery Pipeline Bluemix sync - move code changes into production with zero downtime. We’ve seen over 30,000 beta applications thus far and have spoken to numerous developers about the value Bluemix provides. We’ve learned that developers are joining for 3 key reasons (go through reasons on the page). Rapid setup and time to production Frequent releases - delivery of fixes or new functionality quickly Integrating apps with on premises infrastructure

23 DevOps applies lean & agile practices across the app delivery lifecycle
75% of large organizations expected to adopt agile DevOps practices by end of 2015. Continuous Business Planning Steer Collaborative Development Accelerate software delivery – for faster time to value Continuous Customer Feedback & Optimization DevOps Continuous Feedback Balance speed, cost, quality and risk – for increased capacity to innovate Operate Dev/Test Continuous Monitoring Main point: DevOps is an enterprise capability for continuous software delivery that enables clients to seize market opportunities and reduce time-to-customer feedback Here is the IBM definition of DevOps. It enables clients to: Accelerate software delivery - by enabling collaboration between customers and enterprises and eliminating organizational silos Balance speed, cost, quality and risk- By automating manual processes and eliminating waste Improve client experience - By speeding the customer feedback loop Notes: “Companies that master effective software development and delivery in rapidly changing environments such as cloud, mobile and social will have a significant competitive advantage,” - Kristof Kloeckner, general manager, IBM Rational Software. Continuous Testing Reduce time to customer feedback – for improved customer experience Deploy Continuous Release and Deployment DevOps delivers measurable business outcomes 23 23 23 23

24 Use Cases & Case Studies

25 Mobility and Internet of Things drive many new use cases, particularly around real-time contextual experience

26 DevOps accelerates transformation with standardization and automation
Transform at Speed Respond at Speed Deliver at Speed Speaking Points: Lets talk about some enterprise that have chosen to be disruptors: Nationwide: Overview: Over the past 80 years, Nationwide Mutual Insurance Co. has grown from a small mutual auto insurer owned by policyholders into one of the world’s largest insurance and financial services companies, with more than USD135 billion in statutory assets. Business need: Nationwide needed to better respond to changing market requirements and regulations, increase speed to market for new products and services, and support new channels of customer interaction. Solution: Nationwide engaged IBM to support its agile transformation and help enable an DevOps approach to application development and delivery across its distributed and mainframe environments. Benefits: Nationwide improved code quality by 50 percent over a 3-year period, reduced user downtime by 70 percent and moved 58 percent of its teams to the top quartile in key productivity measures. Tangerine: Overview: IBM introduced Tangerine to the IBM PureApplication® System, which combines pre-integrated hardware with a library of more than 200 available software patterns that are pre-optimized to speed delivery of mobile applications, database and data marts, and other business applications. Business need: Amid the rapid growth of mobile banking, Tangerine needed to adapt to consumer preferences quickly by expediting development cycles and launching mobile innovations faster. Solution: Tangerine is using the IBM® MobileFirst software portfolio, including IBM Mobile Quality Assurance on Bluemix to develop a long-term mobile architecture supporting multiple devices securely. IBM PureApplication® System patterns speed mobile development. Benefits: The solution has reduced development provisioning from days to less than 30 minutes and shortened development cycles from six weeks to two, enabling delivery of innovative customer service tools. Primerica: Primerica distributes financial products to middle income households in North America. Its main mission is to help families earn more income and become properly protected, debt free and financially independent. Primerica wanted to speed communications between its business unit managers and sales reps out in the field. It hired IBM Business Partner PointSource to build a custom mobile app with Bluemix DevOps Services and the IBM MobileFirst Platform that leverages the real-time alert capabilities of IBM Mobile Push Notification. As a result, Primerica managers will be able to send important notifications to targeted groups of sales reps via their mobile devices, reducing delays in the sharing of critical information. Create a culture of continuous improvement and trust Improve customer engagement by shortening feedback loops Innovate faster by accelerating software delivery across hybrid environments 26

27 4/23/2017 1:15 AM Tangerine Bank embraces “MobileFirst in a box” solution featuring IBM Mobile Quality Assurance on Bluemix Benefits: Further differentiate their market leading position in mobile banking Reduce end-to-end development time from 6 to 2 weeks Stand up an operational hardware and software stack in 30 minutes  “IBM BlueMix Mobile Quality Assurance allows Tangerine to provide a proactive customer experience that is relevant and contextual. A ‘shake to feedback’ feature is embedded in our mobile app, allowing customers to provide direct feedback about our mobile features and giving us insight into their mobile experience. We will continue to leverage IBM BlueMix and Watson to further engage our customers and deliver innovative mobile solutions based on their direct input.” Charaka Kithulegoda, CIO, Tangerine Key accomplishments: Deploy and run mobile applications based on customer insights Proactively monitors site and mobile processes to resolve usage issues faster Speeds response times to feedback to increase customer satisfaction Main Point: Mobile is Changing the way we do business. Mobile is also changing how individuals get things done. Either way, Mobile Apps are HOW the market is ENGAGING with users, in client situations through a B2C transaction or improving workforce productivity with B2E apps. Mobile Apps are part of a broader Mobile Strategy that clients are pursuing – yet our studies show that LESS THAN HALF of companies have a well-defined strategy, despite the fact that 73% of those who DO are already realizing returns on that mobile strategy. Slide Source: Analyst Insights MobileFirst FINAL3 – Marketing / Analyst Relations Presentation from Dr. Kristof Kloeckner Data Source: Digital Front Office (DFO) Institute for Business Value Study. Solution components: IBM DevOps for Bluemix (Mobile Quality Assurance) IBM Worklight with IBM API management with DP XG45 (security gateway), IBM Tealeaf, IBM PureApplication System _01_InterConnect13_Mobile STRUNG_v01.pptx 27

28 Financial Insurance Management Corp
Financial Insurance Management Corp. – Delivers a mobile solution in just three months Increases customer renewals by enhancing customer access and engagement Enables customers to check status and initiate roadside assistance from their mobile devices The transformation: FIMC created a mobile application that helps its customers stay connected to their membership programs from just about anywhere. Transparent development helps accommodate changing business requirements “In delivering against our business goals, PointSource also identified ways for us to optimize for faster, higher quality delivery with IBM tools for the mobile development lifecycle.” --Scott Liberatore, president and CEO, FIMC Client name: Financial Insurance Management Corp. Quote: “In delivering against our business goals, PointSource also identified ways for us to optimize for faster, higher quality delivery with IBM tools for the mobile development lifecycle.” —Scott Liberatore, president and CEO, FIMC Company background: As a leading provider of outsourced customer membership programs, Financial Insurance Management Corp. (FIMC) offers customer service, point-of-sale training, regulatory compliance and marketing support to a diverse set of customers, including Wells Fargo, Precision Tune, AAMCO and Citibank. FIMC produces customized packages under its customers’ names, then provides services to fully manage the packages. Founded in 1974, FIMC is headquartered in Sarasota, Florida. Solution components: Software IBM® Rational® Test Workbench IBM Worklight IBM DevOps Services for BlueMix IBM Business Partner PointSource, LLC Business challenge: FIMC wanted to deliver increased value to members by offering an enhanced, high-quality mobile experience. FIMC hoped that by providing mobile services, it would simplify the renewal process for members. In the past, members might not realize that their roadside assistance or discount services had expired until they tried to use them. At that point, they would have to use traditional means, such as or a phone call, to contact FIMC to renew their service. FIMC wanted to streamline this process so that members could easily renew from any location, ensuring more continuous service. Additionally, FIMC wanted to deliver faster access to its benefits and promotions, helping members gain more value from their memberships and thereby increasing the likelihood that they would want to renew. Benefits: By putting benefits right in front of members, the new mobile application has helped FIMC increase its renewal rate. FIMC is now better positioned to build customer loyalty through an optimized mobile experience. With help from PointSource, it can develop, deploy and manage the apps it needs to maintain near-real-time connectivity to customers, quickly and efficiently. The sophisticated, intuitive GUI of the mobile application facilitates ease of use and enhanced company branding, helping FIMC increase interaction with its existing customer base. Solution components Software IBM® Rational® Test Workbench IBM Worklight IBM DevOps Services for BlueMix IBM Business Partner PointSource, LLC 28 28

29 BART, Synchrony Systems Leverage DevOps for Hybrid Cloud Development
Instant, secure access to yard tracking data on mobile device,with realtime status updates Integrated, cloud-based DevOps environment allowed developers to rapidly design, test and deploy, cutting cycle time from six months to 15 days Supports hybrid cloud with application components running on Bluemix and on-premise such as CICS, IMS or DB2 “One of the glaring results that we've seen here once we started using Bluemix and building these applications, is that instead of the typical six-months effort that an organization would take to build an application like that, it took us 15 days, from concept to a running system. And that has potential going forward, of a cost savings for BART of possibly in the area of 80 to 90%.” — Slavik Zorin, Chief Executive Officer, Synchrony Systems, an IBM Business Partner Synchrony Systems developed the mobile app for a heavy-rail public transit system called BART that connects the California downtowns of Oakland and San Francisco with neighboring cities to the south and east BART operates five lines on 104 miles of track with 43 stations in four counties With average weekday traffic of 400,000 passengers, it is the fifth-busiest heavy-rail rapid transit system in the US BART relies on Maintenance and Reliability Information System (MARIS) to conduct preventive maintenance of train cars for the BART system MARIS tracks status of cars on 4 maintenance yards, shops, exchange and storage tracks Originally a client/server IBM i application, we migrated it in 2011 to Web 2.0 using our migration solution and lifecycle platform I just presented A couple of years later due to BART’s increasingly mobile workforce, the need for mobile became apparent By then we knew that Mobile and Cloud come hand-in-hand and that’s when we introduced Ithe BM Bluemix cloud platform to BART We used BlueMix to extend the current on-premise application to the Hybrid Cloud… The reason we call this Hybrid cloud is because parts of the application are running on Bluemix while others run on premise such as CICS, IMS or DB2 The purpose of the app is provide instant and secure access to yard tracking data on a mobile device and report realtime status updates as cars go on and offline We used Bluemix Cloud Integration Services to connect to the on-premise database for data access Bluemix cloud APNS - the apple push notification service to inform users of changes to the status of the equipment. The DevOps services on Bluemix is what made this very powerful because we were able with a button click to publish new features to the app realtime instantly, as well as push the mobile app itself to hundreds of registered mobile devices from an enterprise mobile app store running on Bluemix. 29

30 Will you disrupt or be disrupted by your industry?
Bringing insight directly to their maintenance engineers via mobile Using weather data to predict real time inventory needs Sourcing new innovation from mobile developer communities Speaking Points: Lets talk about some enterprise that have chosen to be disruptors For instance the airline industry Globally, over 100,000 planes take off every day – over 37 million flights last year A plane alone has 360,000 parts. Small margins - about $4 per passenger in – about the cost of a cup of large coffee In the US alone flight delays cost over $8 billion in 2012 Making the right decision at the right time and place can make a huge difference. A critical metric that airlines can control is Turnaround times – that’s how long it takes to turn an incoming flight into an outbound flight For an Airbus A320, industry best practice is around 25 minutes. But it’s not uncommon for turnaround time to take 45 minutes or more. Every flight hour lost is about $10,000 of lost revenue. Airlines are looking to adopt more efficient maintenance models Airbus spoke on stage at InterConnect this year saw this as an opportunity to transform the way they deliver value to their customers moving beyond simply selling airplanes to offer new services that bring their expertise to their customers by bringing a wide variety of data and insight together to mobile devices in the hands of maintenance engineers to optimize the speed and efficiency of maintenance actions. This requires dealing with a high number of diverse systems some on premises some in the cloud some on planes in flight some in the hands of maintenance engineers It all has to come together so the people on the front lines can do their jobs more effectively. They can bring all the pieces of the maintenance puzzle together: The current location of the aircraft … The maintenance history and real time maintenance status of the aircraft … The availability of parts … The location, availability and skills of the line mechanic … and more By connecting and securing services and data from all these different sources, on the IBM Cloud, the three main players in aircraft maintenance The mechanic The maintenance supervisor And Airbus The right information gets to the right decision-makers at the point of action at the right time, Accelerating troubleshooting Shrinking Turnaround Time. Keeping planes and people moving. IBM Cloud and mobile bring it all together – the ability to bridge between the cloud and back office systems, mobile capabilities, analytics and security DelHaize, Parent company of Food Lion Using nontraditional data, weather data in their inventory business process To predict buying behaviors based on weather. Just-in-time inventory based on answering open-ended business questions like weather that causes them to adjust their optimal goals continuously. Citi spoke at Interconnect as well. Fostering innovation through digital acceleration Leverages the concept of outside-in innovation. Through it they want to: Unleash the power of the tech community Develop new solutions Disrupt the way banks innovate Recognized the missed opportunities that would exist if they relied solely on Citi and were unable to engage the full tech community. Using 3rd party development communities to help drive innovation. ***** This chart asks a simple question about disruption. 3 use cases of IBM customers and how disruptors affected them are provided here. Airbus is about predictive maintenance ( Delhaize is about just in time inventory ( Citi (

31 Data and analytics in hybrid cloud are fueling competitive advantage
Data services to replicate and synchronize data Analytics services to refine data and provide insight Cognitive computing services to interact with and change the world Speaking Points: The new hybrid cloud provides access to a wealth of data for innovation. Using the insight from that data in real time business critical processes requires the ability to access, move, refine, and analyze all types and volumes of data while keeping visibility, control and security over it. Data services and localization are the ability to tap into data and analytic services where it makes the most sense. Easy to use data and analytic services that refine, analyze, replicate and synchronize data between on prem, the cloud and devices. Analytics has moved to the cloud to analyze this data – critical is the ability to analyze all types of data Even beyond analytics is the realm of cognitive computing that enables intelligent interaction with real world conversations and delivery of a new level of insight from data. IBM Cloud Notes: DataWorks: New, intuitive tooling and experience to find, refine, enrich and deliver trusted data. Refine raw data into relevant and actionable information that’s available to everyone. Find and shape data, as well as load, mask, profile, classify and cleanse it. Business users can leverage a SaaS app, developers may use APIs, or services may be embedded into apps We have now integrated the same capability we have available today in Bluemix (cloudant nosql dbaas), into the MobileFirst platform 7.0, it provides a local DBaaS on the device providing access to data when systems are offline or unavailable. IBM Watson analytics and cognitive computing services are delivered in the cloud Customer Details Bernhardt Furniture Co. was established in Lenoir, NC in The company operates eight manufacturing facilities and its corporate headquarters in North Carolina, and employs some 1,250 people worldwide including five overseas offices. Bernhardt wanted to create a virtual showroom for mobile devices that would allow their clients and sales people to have a rich user experience. Bernhardt turned to IBM Bluemix and Cloudant to build their virtual showroom application for their products, and how they empowered their salespeople with a rich and responsive tablet experience to improve the client experience. Using a Cloudant database on the backend, the app has transformed the operation from spreadsheets and last-minute presentations into a full-scale digitized browsing and ordering system. The app allows sellers to pull up product details, place orders, and more. Bernhardt Furniture used Bluemix and Cloudant to rapidly build a virtual showroom that runs on mobile devices.

32 A global automaker launches experiments that use
cloud-based analytics to help address critical global mobility issues Demonstrates the use of eco-friendly, connected vehicles for social and ride-sharing services Measures the feasibility of launching the services commercially Creates potential new revenue streams that build on the company’s reputation for innovation The Problem: Traffic congestion issues Parking , spend an inordinate amount of time searching for open parking spaces Link to Reference Profile: About the client This global automaker based in the United States operates in the automotive and financial services segments, manufacturing its vehicles in plants worldwide and distributing them across several continents. Business challenge The automaker has set out to transform itself from a traditional automotive product company to a mobility solution company. For the company, mobility is about far more than getting from point A to point B; it’s about human progress. The company created a multidecade, global vision of a world where vehicles talk to each other, drivers and vehicles communicate with the city infrastructure to relieve congestion, and people routinely share vehicles or multiple forms of transportation for their daily commute. The roadmap includes not only smarter cars, but smarter roads and smarter cities. In early 2015, the automaker announced 25 global experiments that directly confront several transportation challenges, including those that limit personal mobility, especially in urban areas. For example, traffic issues in major cities such as Beijing or London are not just an inconvenience; they have a major impact on commerce, business and even residents’ well-being as pollution and greenhouse gas emissions rise. Solution Existing transportation models and infrastructure simply cannot sustain the sheer number of vehicles expected to be on the road in the coming years. London already charges drivers a congestion fee to drive in the city center during peak business hours, and commuters spend an inordinate amount of time searching for open parking spaces. The automaker based four of its urban mobility experiments in that city, where it is testing the power of a cloud-based big data and analytics solution to address these and other problems. One experiment offers drivers an on-demand car-sharing service that goes beyond existing models by using analytics and a mobile app to help drivers locate available electric and gas-saving cars when and where they need them instead of restricting usage to specific, prereserved times and locations. A dynamic social shuttle test uses algorithms to find the most appropriate shuttle and determine the most suitable route to let up to 10 passengers share premium, eco-friendly minibuses that pick up and drop off commuters at convenient locations. A painless parking experiment uses geospatial location and predictive analytics to inform users by mobile app about current and expected open spaces near their preprogrammed destination. Finally, a data-driven insurance trial analyzes driver behavior, driving and traffic conditions, and general vehicle usage to create a personalized driver mobility passport that is transferable between vehicles or insurers, who can use it to quickly calculate risk and offer data-driven pricing to their customers. Quantifiable benefits The experiments address specific transportation issues to demonstrate the company’s ability to become a mobility solutions provider. The results can then help the business measure the commercial and technical feasibility of deploying these specific mobility solutions commercially on a wider scale. In particular, the use cases for city driving on demand and the dynamic social shuttle allow the automaker to demonstrate the potential to reduce congestion and pollution by using zero- and low-emissions vehicles for innovative car- and ride-sharing services. What makes the solution transformative Game-changing outcome - The experiments are designed to help the automaker quickly move forward to become a solutions provider whose vehicles are only part of the equation, and where mobile, cloud and analytics help address critical global mobility issues. Before-after impact - With the solutions generated in these four experiments alone, the company can help the City of London address road congestion, parking and insurance issues. Systems of record, insight or engagement - The cloud-based analytics solutions interconnect with automobile telemetry, road sensors and traffic cameras, along with geospatial mapping technology, to create a picture of real-time traffic conditions, parking, and available cars and social shuttles. London already charges drivers a congestion fee to drive in the city center during peak business hours Solution components Traffic issues have a major impact on commerce IBM® BigInsights® IBM BlueMix™  IBM API Management IBM InfoSphere® Streams SoftLayer® IBM Research Moving Object Map Analytics  IBM Cloud Business Solutions IBM Global Business Services® – Business Consulting Services IBM Global Technology Services® – Cloud Services: SoftLayer   The transformation: In several of these experiments, the business is testing the power of cloud-based analytics solutions to address traffic congestion and parking issues in London. These connect in real time to the Internet of Things (IoT) to enable innovative commuting options such as on-demand car sharing and a social shuttle service, and predictive analytics inform drivers by mobile app about current and expected open parking spaces near their destination.

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