1. © 2012 IBM Corporation 1 A New Era of Computing: IBM PureSystems József Szűcs IBM Forum 2012 – Estonia Tallinn, October 9, 2012

2. © 2012 IBM Corporation 2 2 Getting Up and Running  2-3 months to specify and procure  2-3 months to integrate, configure and deploy Development Operations  3-6 months to go from development to production Ongoing Effort  1-3 months to troubleshoot and tune  Ongoing effort and downtime to maintain, scale and upgrade IT RealityBusiness Goals  Driving business innovation  Address new opportunities  Respond to competitive threats  Enhance the customer experience Grow top and bottom line by: Typical Results:  23% of new IT projects (worldwide) deploy late  55% experience application downtime for major infrastructure upgrades once deployed Source: A commissioned study conducted by Forrester Consulting on behalf of IBM What are today’s pressures and realities

3. © 2012 IBM Corporation 3 3 Only 1 in 5 can allocate more than half their IT budget to innovation Most efficient data centers Use of new technology: 86% first and fast technology adoption 58% move virtual machines to meet desired outcomes 93% use storage virtualization 87% use a storage service catalog (tiered storage) Results Least efficient data centers Use of new technology: 43% first and fast technology adoption 1% move virtual machines to meet desired outcomes 21% use storage virtualization 3% use a storage service catalog (tiered storage) Results: 65% New projects Maintaining existing infrastructure 35% 47% 53% New projects Maintaining existing infrastructure Source: 2012 IBM Data Center Study: www.ibm.com/data-center/study ( http://www.ibm.com/data-center/study )http://www.ibm.com/data-center/study

4. © 2012 IBM Corporation 4 4 As IT moves to the strategic center of business The model must shift to Smarter Computing Traditional Computing Business innovation Technology Innovation Smarter Computing

5. © 2012 IBM Corporation 5 5 Clients have tried various approaches to close the gap Client-tuned Systems Appliances Cloud Flexibility Control Simplicity Rapid Deployment Agility Elasticity Time and Expense Required Single PurposeShared Dependence What if you could have the best of all three? Benefits Challenges

6. © 2012 IBM Corporation 6 Integration by Design Deeply integrating and tuning hardware and software – in a ready-to-go workload optimized system Built-in Expertise Capturing and automating what experts do – from infrastructure patterns to application patterns Simplified Experience Making every part of the IT lifecycle easier - with integrated management of the entire system and a broad open ecosystem of optimized solutions The time has come for a new breed of systems Systems with integrated expertise and built for cloud © 2012 IBM Corporation 6

7. 7 7 The world’s first family of expert integrated systems

8. © 2012 IBM Corporation 8 The first family of offerings designed for all three client approaches For clients who want to custom build and tune configurations to their specific requirements, as they might with today’s blades. Delivers optimum flexibility. For clients who want pre- configured, pre-integrated infrastructure and management, factory tuned from IBM, with entry cloud management. Delivers Infrastructure as a Service (IaaS). For clients who want pre- integrated platform systems tuned to the middleware stack. Delivers Software as a Service (SaaS), and Platform as a Service (PaaS). Client-tuned Systems Expert Integrated System Expert Integrated System Flex System For clients who want to custom build and tune configurations to their specific requirements, as they might with today’s blades. Delivers optimum flexibility. For clients who want pre- configured, pre-integrated infrastructure and management, factory tuned from IBM, with entry cloud management. Delivers Infrastructure as a Service (IaaS). For clients who want pre-integrated platform systems tuned to the middleware stack. Delivers Software as a Service (SaaS), and Platform as a Service (PaaS). For clients who want pre-configured, pre-integrated infrastructure and management, factory tuned from IBM, with entry cloud management. Delivers Infrastructure as a Service (IaaS). Level of Intergation

9. © 2012 IBM Corporation 9 The first family of offerings designed for all three client approaches For clients who want to custom build and tune configurations to their specific requirements, as they might with today’s blades. Delivers optimum flexibility. For clients who want pre- configured, pre-integrated infrastructure and management, factory tuned from IBM, with entry cloud management. Delivers Infrastructure as a Service (IaaS). For clients who want pre- integrated platform systems tuned to the middleware stack. Delivers Software as a Service (SaaS), and Platform as a Service (PaaS). Client-tuned Systems Expert Integrated System Expert Integrated System Flex System For clients who want to custom build and tune configurations to their specific requirements, as they might with today’s blades. Delivers optimum flexibility. For clients who want pre- configured, pre-integrated infrastructure and management, factory tuned from IBM, with entry cloud management. Delivers Infrastructure as a Service (IaaS). For clients who want pre-integrated platform systems tuned to the middleware stack. Delivers Software as a Service (SaaS), and Platform as a Service (PaaS). For clients who want pre-configured, pre-integrated infrastructure and management, factory tuned from IBM, with entry cloud management. Delivers Infrastructure as a Service (IaaS). Level of Intergation

10. © 2012 IBM Corporation 10 Multi-generation chassis platform IBM Flex System: No Compromise Design 50% more memory 200% more networking bandwidth 300% more dedicated storage 50% networking latency improvement IBM Flex System x240 (768GB) vs. HP BL 460c Gen8 (512GB) IBM Flex System Fabric 10Gb switch 240Gb vs. HP 10Gb switch 80Gb IBM Flex System Flash adds up to 8 400GB SSDs (x240 with Flex System Flash 3.2TB vs. Dell M610 800GB) Node to node traffic is contained within the chassis to reduce TOR switch latency* Built to support your datacenter today and tomorrow * Estimated Results. Results will vary depending on customer environment

11. © 2012 IBM Corporation 11 The first family of offerings designed for all three client approaches For clients who want to custom build and tune configurations to their specific requirements, as they might with today’s blades. Delivers optimum flexibility. For clients who want pre- configured, pre-integrated infrastructure and management, factory tuned from IBM, with entry cloud management. Delivers Infrastructure as a Service (IaaS). For clients who want pre- integrated platform systems tuned to the middleware stack. Delivers Software as a Service (SaaS), and Platform as a Service (PaaS). Client-tuned Systems Expert Integrated System Expert Integrated System Flex System For clients who want to custom build and tune configurations to their specific requirements, as they might with today’s blades. Delivers optimum flexibility. For clients who want pre- configured, pre-integrated infrastructure and management, factory tuned from IBM, with entry cloud management. Delivers Infrastructure as a Service (IaaS). For clients who want pre-integrated platform systems tuned to the middleware stack. Delivers Software as a Service (SaaS), and Platform as a Service (PaaS). For clients who want pre-configured, pre-integrated infrastructure and management, factory tuned from IBM, with entry cloud management. Delivers Infrastructure as a Service (IaaS). Level of Intergation

12. © 2012 IBM Corporation 12 WHAT IS INSIDE? VIDEO ANIMATION OF INTEGRATED PureFlex COMPONENTS

13. © 2012 IBM Corporation 13 Built-in Expertise Infrastructure patterns and self-optimizing technology for lower cost, based on the experience of managing tens of thousands of data centers Smart data placement 300% increased performance of critical applications Over $2B in R&D and acquisitions over 3 years Millions of development hours across 37 labs in 17 countries © 2012 IBM Corporation 13 © 2012 IBM Corporation Thousands of virtual machines on single system 2X improvement in system utilization 70% fewer cores for reduced software licensing 50% lower management costs 2X improvement in fault diagnosis Management integration © 2012 IBM Corporation Estimated Results. Results will vary depending on customer environment. Up to:

14. © 2012 IBM Corporation 14 © 2012 IBM Corporation Integration by Design A complete system that is cloud-ready, more secure and designed from the start to work together 50% latency improvement for faster application performance Scale-in systems networking IBM-designed management across compute, storage, and networking – in a single system with upgradability to future technologies 14 2X application density in same floor space 50% improvement in administrator productivity Intelligent cloud technology 0 setup time to achieve enterprise risk reduction with trusted protection built in from the hardware up Security innovation Estimated Results. Results will vary depending on customer environment. Up to:

15. © 2012 IBM Corporation 15 Simplified Experience Management integration and choice at every step, to make IT easier Management from a single pane of glass with open choice of environments and applications Factory pre-configured and tested Dynamic resource allocation 70% faster setup time © 2012 IBM Corporation 15 Days to minutes for workload deployment time 75% lower systems costs over 3 years 98% time savings in storage provisioning Management across physical & virtual resources © 2012 IBM Corporation Estimated Results. Results will vary depending on customer environment. Up to:

16. © 2012 IBM Corporation 16 The first family of offerings designed for all three client approaches For clients who want to custom build and tune configurations to their specific requirements, as they might with today’s blades. Delivers optimum flexibility. For clients who want pre- configured, pre-integrated infrastructure and management, factory tuned from IBM, with entry cloud management. Delivers Infrastructure as a Service (IaaS). For clients who want pre- integrated platform systems tuned to the middleware stack. Delivers Software as a Service (SaaS), and Platform as a Service (PaaS). Client-tuned Systems Expert Integrated System Expert Integrated System Flex System For clients who want to custom build and tune configurations to their specific requirements, as they might with today’s blades. Delivers optimum flexibility. For clients who want pre- configured, pre-integrated infrastructure and management, factory tuned from IBM, with entry cloud management. Delivers Infrastructure as a Service (IaaS). For clients who want pre-integrated platform systems tuned to the middleware stack. Delivers Software as a Service (SaaS), and Platform as a Service (PaaS). For clients who want pre-configured, pre-integrated infrastructure and management, factory tuned from IBM, with entry cloud management. Delivers Infrastructure as a Service (IaaS). Level of Intergation

17. © 2012 IBM Corporation 17 What the business wants… What’s required… Monitoring Lifecycle Management

18. © 2012 IBM Corporation 18 IBM PureApplication System <4 hours IBM PEP Team + Customer Competitor HW Engineer Includes (at no additional cost): Hardware set-up and configuration Software set-up and configuration First workload deployment First Workload Deployment (1 day*) Hardware Set-Up and Configuration (2 days*) Software Set-Up and Configuration (2 days*) *Actual times reported by customer working with competitor setup team Customer Pre- integrated System Competitor SW Engineer 5 days* Pre-integration drives faster set up and deployment

19. © 2012 IBM Corporation 19 IBM PureApplication – Built In Expertise - Patterns Patterns of Expertise: Proven best practices and expertise for complex tasks learned from decades of client and partner engagements that are captured, lab tested and optimized and then built into the system Scalability Upgradability 100+ ISV business applications Business intelligence Business process management Web experience (Portal) Built-in with flexibility Available through PureSystems Centre Platform Patterns Expertise across the middleware and infrastructure Infrastructure expertise across the compute resources Application Patterns Available patterns from IBM and Partners Provisioning Storage optimization Web application deployment Database deployment Cloud platform management

20. © 2012 IBM Corporation 20 Capture 80% of today’s workloads Capture your own expertise:  Image Construction & Composition Tool allows you to create your own custom virtual images  Pattern Development Kit allows you to create your own virtual application patterns.  Capture existing expertise for operating system and middleware installation  Dynamically combine pre-defined components to build new image packages  Create a standard VM format in Open Virtual Format Use IBM patterns of expertise throughout the system Add third-party application patterns of expertise Three ways to get the value of patterns of expertise

21. © 2012 IBM Corporation 21 Extensibility from the broadest ecosystem is made easy New IBM PureSystems Centre:  Gain access to a broad community of IBM and certified partner expertise  Download optimized, deployable application patterns from 100+ leading ISV partners  Search by solution area, industry or system  Download fixes and patches  Access to developer community Also run your existing applications today*

22. © 2012 IBM Corporation 22 © 2012 IBM Corporation 22 Thank You!