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For IBM and BP Education Use Only Copyright IBM Corporation 2009 IBM Systems and Technology Group Sales Education August 2009 Selling in the New Economic Environment Financial Selling Module

For IBM and BP Education Use Only © Copyright IBM Corporation 2009 IBM Systems and Technology Group Sales Education August 2009 Selling in the New Economic

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Page 1: For IBM and BP Education Use Only © Copyright IBM Corporation 2009 IBM Systems and Technology Group Sales Education August 2009 Selling in the New Economic

For IBM and BP Education Use Only© Copyright IBM Corporation 2009

IBM Systems and Technology Group

Sales EducationAugust 2009

Selling in the New Economic Environment

Financial Selling Module

Page 2: For IBM and BP Education Use Only © Copyright IBM Corporation 2009 IBM Systems and Technology Group Sales Education August 2009 Selling in the New Economic

For IBM and BP Education Use Only© Copyright IBM Corporation 2009

22

Cash Flow ManagementCash Flow

ManagementRegulation / Risk

ManagementRegulation / Risk

Management

Addressing CFO Imperatives in Today’s Environment

Intelligent Cost Reduction

Intelligent Cost Reduction

Swift Payback on Investments and

Strong ROI

Swift Payback on Investments and

Strong ROI

Each is found in the corresponding play sales kit or on the play dashboard

All Financial Selling Modules can easily be found in a single FSM Sales Kit available to IBMers and BPs

Each can be tailored to your customer situation by leveraging financial selling tools such as the Alinean tool, RACEv, etc.

Every STG Sales Acceleration Play has it’s own unique Financial Selling Module (21 in all)

Each addresses the key needs of the CFO

Each is structured like the one being presented today

You can use these modules for a variety of selling situations even if you are notexecuting the play

Selling in the New Economic Environment: Financial Selling Module (FSM) for (name of the STG Sales Acceleration Play)

Page 3: For IBM and BP Education Use Only © Copyright IBM Corporation 2009 IBM Systems and Technology Group Sales Education August 2009 Selling in the New Economic

For IBM and BP Education Use Only© Copyright IBM Corporation 2009

33

Speaker Title Slide(s)

Introduction James Gargan STG VP,

Demand Generation

2-3

Selling in the New Economic Environment – Financial Selling Module

Part 1: Today’s Economic Environment and the Role of the CFO

T. William Reed

IGF WW Marketing Manager,

Launch and Sales Enablement

4 - 14

Part 2: How the STG Sales Plays -- in this example the System zGrowth (New Workloads Play) – address key financial imperatives to help you sell

Doug Pearson STG Manager,

System z Platform Marketing

15 - 24

Pre-Sales Financial Selling Tool

Al Wissinger STG Program Manager, Marketing,

Communications, and Sales Support

25

More Information 34

Education Agenda

Page 4: For IBM and BP Education Use Only © Copyright IBM Corporation 2009 IBM Systems and Technology Group Sales Education August 2009 Selling in the New Economic

For IBM and BP Education Use Only© Copyright IBM Corporation 2009

IBM Systems and Technology Group

4

Financial Selling Module for: each STG Sales PlayExample Presented: System zGrowth New Workloads Play

Selling in the New Economic Environment

2nd Half 2009

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© Copyright IBM Corporation 2009

5For IBM and BP Education Use Only 5

Today’s Economic Environment and the Role of the CFO – Bill Reed• Global financial crisis creates new economic environment• Harsh reality creates new rules for companies• CFO role has changed to address the new challenges• CFO imperatives • IBM has the total winning solution• STG offerings become even more compelling to the CFO with IGF• Business challenges and how IBM Global Financing can help• STG Sales Play value propositions support the new economic environment

How this Sales Play Addresses the CFO Imperatives – Doug Pearson- CFO Value Proposition- Proof Points- Financial tools for System z sellers

Table of Contents

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© Copyright IBM Corporation 2009

6For IBM and BP Education Use Only 6

Global Financial Crisis Creates New Economic Environment

The IMF estimates bank losses globally from toxic US assets may reach $2.2- trillion – 57% more than the $1.4-trillion originally predicted in Oct. ‘08

Unprecedented constraints on access to credit and capital as banks are reluctant to lend

Companies are having trouble getting financing; available financing is expensive

Risk avoidance with unprecedented lack of confidence in the global financial system

Central Banks are aggressively cutting interest rates, in many cases to historically low levels

Stress on global interdependencies

The economic situation in early 2009 is worsening and negative headlines continue around the world

Conventional macroeconomic tools (such as interest rate cuts) are not as effective in stimulating economies due to the acute credit crunch

Demands for goods and services are falling

increased price sensitivity as consumers and enterprises cut back

Restructuring of industries: firms fail, sold off overnight

Disruptions in supply chains, partner, and customer arrangements

Governments step in with unparalleled bank bailout packages

Many governments have introduced fiscal stimulus packages

As interest rates get close to zero, scope for monetary policy to boost growth will be reduced, underscoring the importance of government fiscal packages going forward

Governments are worrying about deflation

New regulatory rules and requirements; also environmental regulations

Government money comes with greater government oversight

Global Credit Crisis

GlobalEconomic Slowdown

Governmental Actions and New Regulations

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Through Q109, 50 US banksand dozens more across theworld failed; the IMF had to rescue 8 country economies

1. Refocusing on short term financial matters: shifting to preservation of capital, the security and survival of the company• Saving costs• Preserving cash• Meeting financial covenants on debt instruments and bank lines• Obtaining / maintaining whatever access to financing is available

2. Management power point shifting to CFO, if the CFO is a leader in the company• Traditional CFO role:

• leading financial side of the company including leading fundamental financial strategies• reporting financial performance to owners, stockholders, public financial markets

• Now, the CFO role is changing as CEO turns to CFO for leadership to get through this

Today’s harsh reality demands new rules as companies are threatened with financial stress and survival risk

On average, stocks lost 45% of their value worldwide, erasing almost $24 trillion inmarket value.

For Q1 09, US loan issuance dropped 42% from $179 billion to $105 billion.

In 2009, 10% of public companies will face liquidity issues

Examples of some of the harsh realities facing companies today:

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The CFO Role has Changed to Address the New Challenges

CFO

CFOs are becoming key players,

even leaders, in major decisions

6. Inspect all significant

business cases / proposals

7. Interact with the BOD

5. Help reset the company

strategy – to reprioritize

investments

4. Assure swift payback on investments

3. Waste no capital

2. Drive costout of the business

1. Lead company survival plan

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Cost reduction / avoidance

Balanced to enable future value creation

Balanced to maintain competitiveness

Balance cash inflows vs. outflows

Customized solution financing to reduce upfront costs and structure payments (match anticipated cash inflows or cost savings)

Expecting payback in less than 12 months

Strong ROI relative to the cost of capital

Business case that details specific solution milestones, with a funding roadmap

More regulation / need for transparency in reaction to economic crisis (focus may vary by industry, i.e. Energy, Healthcare, Auto, FSS,..)

Conversion to global accounting standards (IFRS)

Minimize security / reliability impacts of IT infrastructure

Minimize IT asset obsolescence

Swift Payback on Investments and

Strong ROI

Swift Payback on Investments and

Strong ROICash Flow

ManagementCash Flow

ManagementRegulation / Risk

ManagementRegulation / Risk

Management

International Financial Reporting Standards

Intelligent Cost Reduction

Intelligent Cost Reduction

CFO Imperatives in Today’s Environment

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Cash FlowManagementCash Flow

Management

Regulation/Risk

Management

Regulation/Risk

Management

IBM System Storage™

IBM Power Systems™

IBM BladeCenter® IBM System x®

IBM has the Pieces for a Total Winning Solution

IBM System z®

IntelligentCost

Reduction

IntelligentCost

Reduction

Swift Paybackon Investments and Strong ROI

Swift Paybackon Investments and Strong ROI

SWGIBM

Services

IBM Retail Store Solutions

IBM Global Financing

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STG Offerings with IGF become even more Compelling to the CFO

What is Financial Selling?

How does Financial Selling change the game?

Lead with a Financial Selling approach

Helps you align I/T costs with business value

Allows you to discuss the true Total Cost of Ownership of the solution plus emphasize its ROI to the CFO given the current credit environment

Enables you to overcome client objections and close the deal

Elevates you up the client decision chain

Engage IGF early

Understand the client IT requirements, funding sources and approval process

Create a vision of the potential value

Make ROI the client’s evaluation criteria, but also emphasize TCO to seal the deal & optimize client savings

Work with IGF to control the financial equation

Include a monthly payment option in your proposals

Using financial values, metrics & approaches as a part of the sales process, (i.e. ROI, TCO and ROA etc.)

Supporting the use of financial elements and how they relate to the customer

Demonstrating to the client (across business functions) that you know their business

Engaging IGF early helps you and the IT manager address the concerns of the CFO so the IT manager can get a green light for your proposal

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INTELLIGENT COST REDUCTION

SWIFT PAYBACK ON INVESTMENTS

& STRONG ROI

CASH FLOW MANAGEMENT

REGULATION / RISK

MANAGEMENT

High availability and quality of existing services today … providing for real-real-time, dynamic access to Innovative new services.

IMPROVE SERVICE

Containing operational cost and complexity today …achieving breakthrough productivity gains tomorrow

REDUCE COST

Addressing today’s security, resiliency, and compliance challenges … preparing for the new risks of a more connected and collaborative world

MANAGE RISK

FINANCING

DYNAMIC INFRASTRUCTUREDYNAMIC INFRASTRUCTURE– Reduce Cost through Virtualization– Green Infrastructure– Resilient Business Infrastructure– Information Infrastructure– Dynamic Infrastructure for Retail Store

Solutions

COMPETITIVECOMPETITIVE

FOOTPRINT EXPANSIONFOOTPRINT EXPANSION

– Competitive Virtualization with Power®, System x

– Competitive Scale Up Applications– Sun Tape Takeout– Competitive Rack to Blade– Protect More. Store Less. – Winning Competitively with IBM Systems and Storage

– BladeCenter – No Compromises– SAP for Large Enterprises and for MM– Oracle for Large Enterprises and for MM– Business Optimization with Business

Intelligence– zGrowth – New Workloads– eX4 Xperience IT– iCare– Store Optimization

Sales Play Value Propositions Support the New Economic Environment

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Business Challenges and How IBM Global Financing Can Help

CIO

Key Challenges How Financing Can Help

Reductions in operating and capital budgets

IGF provides access to credit; helps clients acquire more within budget;

Certified Pre-Owned equipment is an option over new

Increasing Total Cost of Ownership

Leasing can lower TCO by as much as 16% (PV) over outright purchase

Programmatic IT refreshes based on leasing can help lower ongoing maintenance and support costs in outlying years

IT Refresh and Upgrade management

Leasing helps ensure timely replacement of equipment

Mid lease upgrades can provide increased capacity for little or no change in current monthly payment

Asset Management and Tracking

Leasing helps ensure timely replacement of equipment along with tracking capabilities for enterprise view (at serial number level) of IBM equipment

Technology Obsolescence Leasing shifts IT obsolescence risk to IGF; ensures

optimal equipment refresh

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Business Challenges and How IBM Global Financing Can Help

CFO/ Treasurer

Key Challenges How Financing Can Help

Financial predictability Provides predictable monthly payments

Reduce costs

Leasing can lower acquisition costs by as much as 16% (PV)

An IT refresh strategy based on leasing can reduce TCO in outlying years

Mid lease upgrades can provide increased capacity for little or no change in current monthly payment

Optimize capital assets; improve utilization

Three/four year leasing refreshes ensure asset optimization; Renew, return or extend lease at end of term

Improve ROI Smooths out upfront costs; helps align costs to benefits

Optimize cash flow Provides predictable monthly payments; helps preserve

cash

Access to new funding sources

IGF is the world’s largest IT financing provider Fixed rate capital with flexible terms and conditions

Maximize liquidity Frees up cash and helps preserve credit lines for core

business needs

Optimize financial measurements

Helps improve financial measurements (ROA, ROE)

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Play Highlights • The zGrowth sales play is designed to grow new workloads on System z. These are

primarily workloads that could otherwise be run on HP or SUN x86 systems or are net new applications.

• This play offers financial incentives for customers to do proof-of-concept and/or trial, as well as attractive pricing on hardware and software to encourage these workloads to be run on System z.

• New System z Solution Edition Series announced for the following workloads: SAP, Data Warehousing, ACI, GDPS, WebSphere, Security and Application Development.

• Plus lower pricing on IFLs and memory for Linux® Consolidation with z/VM®.

Selling in this new economic environment- We have described how the CFO has become a key player and it is necessary to

address key CFO imperatives

- Now let’s look at how this play addresses the CFO imperatives with some examples….

zGrowth - New Workloads

zGrowth New Workloads Play

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Intelligent Cost Reduction: Realize immediate financial savings and reduce cost by up to 50% by consolidating workloads to Linux on System z.

Cash flow Management: Save close to 80% in total cost of ownership compared to distributed platforms by using Linux consolidation on System z.

Regulation / Risk management: Reduce fraud loses today and build trust with ACI applications on System z.

Swift payback on investments and strong ROI: Cut cost by 30% with breakeven in less than 1 year by migrating SAP solutions to a z10™ .

CFO Value Proposition & Proof Points for System z

zGrowth with IBM System z10™

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System z Advantages:• Lower Operations Cost

–Management

–Energy

–Connectivity

• Legendary Security for your critical data• Leading scalability for a changing world• Application Availability for a demanding

marketplace• Outstanding Service• Attractive financing

8 HP x86 Cores 8 Dell x86 Cores 1 z10 BC IFLs

SoftwareMaint

SoftwareMaintHardware

IBM System z10 Business Class™ (z10 BC™) additional IFL Lower cost than Dell and HP x86

Oracle DB + WebSphere® ND Workload3-Year Total Acquisition Cost (TCA)

x86 VMware Virtualization

Dell Power Edge Quad

Core servers

z/VM Linux on z10 BC

1.00 X

1.53 X

x86 HP Virtualization

HP Itanium Dual Core

serversAll performance information was determined in a controlled environment. Actual results may vary.

1.31 X

Your IT Cost may vary

Intelligent Cost Reduction with System z10: Realize immediate financial savings and reducing cost by up to 50% by consolidating to System z:

Why pay up to 50% more for commodity servers when you can get the legendary System z Advantages?

Example 1: Up to 50% Cost Savings

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Your IT Cost may vary

134 x86 Cores 48 x86 Cores 5 z10 Cores

SpacePowerPeople CostSoftwareMaintSoftwareMaintHardware

Consolidating 134 Linux servers to 5 IFLsCan save up to 50% over x86 w/ VMware

Oracle DB Workload, 3-Year Total IT Cost

Sun X2100 Single Core servers

Dell Power Edge Quad Core

servers & VMware

z/VM Linux on 5x z10 BC IFLs

All performance information was determined in a controlled environment. Actual results may vary.

Domino® and Linux on zConsolidation: Save up to 50% over x86 virtualization

Here’s a cool example:Add one IFL and support up to 7,500 Domino users 1,000 users for the energy of a 100 watt bulb Hardware at less than $10 per user (IFL + Memory) Faster Domino is one of many benefits to come from IBM’s own

consolidation project

Intelligent Cost Reduction with System z10: Realize immediate financial savings and reducing cost by up to 50% by consolidating to System z

Example 2: Consolidating Linux servers to System z10

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Bank of Russia: Reduces payment processing costs by 95%, saving US $400 million per year. Server and data center consolidation create further savings on hardware and software licensing, maintenance and electricity, and increased security. Workload for technical staff reduced by 85%.

Smart is:Saving millions in annual operating costs.

Pain Points

Spending too much money on energy, cooling, floor space, software license fees;too many application outages; unable to increase staff productivity

Value prop (from top chart)

Take out costs now: consolidate tens, hundreds, even thousands of distributed workloads in order to lower costs and energy consumption; improve staff productivity and increase application availability

Client benefits

Reduce energy and floor space utilization up to 80%Linux on z/VM enables extremely high virtual-to-real CPU ratios: a) do more with less, b) save money on software fees; many clients report staff productivity boosts of 50%

Service Offerings

IT Optimization Factory – improve time to value and accelerate ROI with ECM-developed automated application migration offering for System z (discover, map, migrate, test)

Next steps TCO analysis to demonstrate potential cost savings

Key resources

IBMers: System z Consolidation and Virtualization Sales Kit and for BPs,

IBMers: Linux for System z Sales Kit and for BPs,

IBMers: Linux on System z Wiki,

IBMers: z/VM 5.4 Sales Kit and for BPs,

For IBMers: How to engage a Cost & Value, Scorpion, Zodiac, RACE Study

Key contacts

Carol Stafford, VP System z Sales ([email protected]), Reed Mullen, C&V Initiative Lead ([email protected]), Nancy Scala, Brand Marketing ([email protected]), Gerald Hosch, Offering Manager ([email protected]), Katherine Grabarits, zChampion and zAtlas team worldwide contact ([email protected])

Links IBMers: Master System z Sales Kit and for BPs, IBMers: zChampions Web site

Intelligent Cost Reduction with System z10: Realize immediate financial savings and reducing cost by up to 50% by consolidating to System z:

Example 3: Here is a customer who achieved a 95% savings

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Consolidating 134 Linux servers to 5 IFLs can save close to 80%

Oracle DB Workload, 3-Year Total IT Cost

134 x86 Cores 5 z10 Cores

Space

Power

People Cost

SoftwareMaint

Software

Maint

Hardware

Sun X2100 Single Core servers

z/VM Linux on 5x z10 BC IFLs

Cash flow Management with System z10:

System z industry leading virtualization delivers consistent 85%+ utilization for unrivalled ROI

Dramatic savings are possible by consolidating to System z:

• IBM System z10 Enterprise Class (z10 EC™) can reduce per-core licensing costs up to 30 to 1 compared to x86 environments (1)

• Reduce energy consumption by up to 80%

• Reduce floor space by up to 85%

• Reduce labor costs by up to 80%

(1) Ratio of z10 EC processor cores to x86 processor cores will vary depending on the age and speed of the x86 processors and the workloads being run on them

Save close to 80% in total cost of ownership compared to distributed platforms by using Linux consolidation on System z.

System z large scale consolidation of Oracle and Sun workloads

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Continuous Application Availability via System z and BASE24-eps and PRM design

• 99.999% availability of applications possible • BASE24-eps runs as active-active across multiple sites.• z/OS® Workload Manager balances workloads across sites.• System z has 1 million lines of error-correcting code.• No loss of capacity during hardware and software upgrades,

unlike distributed systems. Simplify physical environment to reduce costs,

reduce latency via System z architecture• Potential to provide multiple secure (EAL5 certified) virtual

environments. • Allows multiple concurrent PRM and BASE24-eps systems:

Production, Dev, Test, User Acceptance Testing. Data security, PCI compliance, increased business

flexibility via BASE24-eps and PRM on DB2- DB2® data sharing eliminates islands of data and enables

real-time sharing of operational data across multiple images. - Simpler extensibility of business function and real time or

near time fraud, settlement, and savings.- Ability to encrypt specific data elements for PCI compliance. - Multi-level security support eliminates unnecessary data

replication without compromising security.

Competitive Advantages

Reduce operating costs and environmental footprint via one common footprint vs. multiple footprints/skills/vendors

• Staff, data center space, operational labor Reduced costs, simplified management via

features like integrated encryption, capacity on demand

• In-board encryption facility provides high speed secure data encryption. Potential to eliminate stand-alone HSMs in distributed solutions.

• Capacity on demand capabilities enable immediate upgrades in response to spikes.

• Peak demand can be satisfied by pre-empting capacity from low priority workloads.

Regulation / Risk management with System z10:Reduce fraud loses today and build trust with ACI applications on System z

Example 1: The IBM/ACI solution on System z has significant advantages over other platforms

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Pain Points

While payment volumes are increasing, the revenue per transaction is expected to decline as competition grows. Payments fraud is increasing, creating major financial losses for banks.

Value prop (from top chart)

System z provides the scalability, resilience and security enabling financial institutions to embrace an enterprise view of fraud management with ACI Proactive Risk Manager.

Client benefits

Reduce fraud losses by deploying ACI Proactive Risk Manager on System z. Reduce hardware costs and improve fraud analyst efficiency with an enterprise-wide approach to fraud detection and management on the mainframe.

Key resources

Solution Brochures, Banking Community Calls, System z Seller Education, System z and ACI Value Proposition Presentations

Key contacts

Vice President – STG Integration Executive, ACI Strategic Alliance: James Wallis

Director of WW STG Sales – ACI Alliance: Kevin O’Reilly

Finance Sector – Global Sales Leader for Payment Systems: E. (Peter) Bearor

System z Marketing Manager for ACI: Ethel Richardson

Links IBM Partner Directory for ACI : link

FSS Business Partner Springboard for ACI: link

Westpac New Zealand "go live" on System z for fraud prevention and detection

Smart is:Fraud prevention and detection.

Processes approximately 1.6 million credit and debit transactions each day

Needed a system to reduce fraud losses

Selected ACI Proactive Risk Manager for Enterprise Risk on System z

Customer in production since the end of March 2009

Already saving money with early detection of fraud

Fraud incident detected during first few days of implementation

Bank can change the number and types of transactions monitored in real time

Average ROI payback within 6 months

Regulation / Risk management with System z10: Reduce fraud loses today and build trust with ACI applications on System z

Example 2: Westpac New Zealand

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Pain Points

Cost and complexity of existing server farms, efficiency issues, risk and process (IT) management, corporate governance, Integration of business applications.

Value prop SAP database server platform for continuous availability, advanced virtualization technologies, high security and highest automation management while reducing TCO by 30% or more.

Client benefits

Staff consolidation, triple HW utilization and reduce number of Servers. Reduction of TCO by 30%. Reduction of downtimes.

Key resources

IBM insight for SAP tool and zRACE for TCO Analysis.

Key contacts

Jim Dilley, Leader of Tiger Team from Carol Stafford.

Andreas Mueller or Franz Voelker from IBM/SAP Alliance Team.

Links IBM: stem z for SAP Sales Kit and for BPs: and IBM: gkd-el reference

GKD-EL is a Public Sector customer in Germany in a very price sensitive market. This client improved their SAP system

throughput by 270 % and cut their cost by 30% by migrating SAP solutions to an IBM System z10™ Enterprise Class.

Reducing cost within one year.

Swift payback on investments and strong ROI with System z10:

Cut cost by 30% with breakeven in less than 1 year by migrating SAP solutions to a z10

Smart is: Reducing cost within one year

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Financial Tools Available for System z Sellers

RACEv Tool (link for IBMers) (formerly known as zRACE)- TCO tool that IBM sellers and Business Partner Resellers (via

Partnerline) can use to illustrate to clients the TCO benefits of moving workloads to IBM System z.

IT Systems Rationalization Study (link is for IBMers and BPs)

- Also known as the Scorpion Study. An in depth analysis of a customers environment resulting in a business case comparison of a clients current and future costs as compared with the cost of running on IBM server and storage solutions.

System z Solution Editions Sales kit: IBMers and BPs- Link to System z Solution Edition Education podcasts, Client presentations and other

enablement materials.

1

1

1 - Hyperlink – Click from Screen Show mode.

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IBM Systems and Technology Group

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Pre-Sales Financial Selling Tool

Al Wissinger, August 2009

Selling in the New Economic Environment

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• Linear tool approach

• IBM Systems Consolidation Evaluation Tool (also known as the Alinean TCO/ROI tool)

• Mapping of some critical outputs based on examples

• Platform specific educational tracts

• Getting started

• Pack-n-Go

• More Information

Pre-Sales Financial Selling Tool

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Linear Tool Approach - IBM’s Competitive Family of Assessments

Door Opener – Reason of Call – Lead With• IBM Systems Consolidation Evaluation Tool (aka: Alinean TCO/ROI tool)

- Compelling quantifiable IT TCO and Business ROI results in 15 minutes with deliverable- Used to bring client into pipeline

Early Pipeline Progression Assessments• IBM Server Makeover Assessment

- No charge assessment from Migration Factory – Consolidation / Virtualization• IBM Systems Makeover Analysis for SAP Environments

- No charge assessment from Migration Factory – Migration Plan / Effort / Cost• IBM Systems Makeover Analysis for Oracle Environments

- No charge assessment from Migration Factory – Migration Plan / Effort / Cost• RACEv / VISIAN / TCO Now for Storage

Deeper Pipeline Progression Offers / Assessments• Lab Services, GBS Migration Factory or GTS Assessments

- IT Systems Rationalization Study (Scorpion/Zodiac)- Energy assessments, Migration Studies, etc…

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A Little More About: IBM Systems Consolidation Evaluation Tool What it is:

- Interactive Pre-Sales OI tool to be used by all IBM Sellers / Partners to gain entry into entrenched competitive / IBM stagnant accounts with a demonstration of potential financial savings

- Used in local Geo marketing campaign’s inviting customers to use it

What it does:- Provides quantifiable demonstration of IT TCO and Business ROI potential savings

Based on average platform configurations No Mainframe products covered

- Analysis of customers current environment projected out 5 years compared to consolidated IBM Systems Based on annual IT Growth objectives and Financial replacement cycle for servers

- Allows very granular account specific data to be entered and has a base starting point of data based on Alinean quarterly research that is completely changeable to more accurately reflect the clients environment

- Three deliverable report options with Power Point or Word Document

What market segments are covered:- All Mid-Market and Large Enterprise opportunities

What it is NOT:- A comprehensive sales tool with deep configuration – use RACEv or Scorpion / Zodiac study- A competitive head-to-head competitive tool- A sizing, quote, proposal or final solution – these come later in the sales cycle with normal sales tools

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Assumptions:1) Healthcare Industry – $200M Annual Revenue – 400 Users – Medical Records Workload Servers (CRM), 8% Annual Growth – 5 Year Replacement2) Microsoft OS and SQL Server running on all boxes/cores3)4) Availability based on 99.50% uptime

IBM Systems Consolidation Evaluation Tool Output Examples for System x / BladeCenter Target Solution Platform - IBM x3550M2 (Xeon E5540) 2.53GHz (2x4) – Nehalem

Assumptions (cont’d):4) Transfer all Software Licenses and $4000.00 of Professional Services with HW/SW on IGF Lease5) Payback Period Based on 60 Day Deployment Schedule with 100% Benefits Realized at Conclusion6) Risk Adjusted Discount Rate – 12%

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Platform Specific Educational Tracts System x Education Version:

- Level 100: Winning Competitive Accounts with the IBM Systems Consolidation Evaluation Tool for System x sellers (Feb 2009 - 43 Minutes)

- IBM Internal: http://lt.be.ibm.com/stg/ltu27729- Business Partner: http://www.ibm.com/services/weblectures/dlv/partnerworld/ltu27729

Power Education Version:- Level 100: Winning Competitive Accounts with the IBM Systems Consolidation Evaluation Tool for

Power Systems Sellers (Feb 2009 - 43 Minutes) IBM Internal: http://lt.be.ibm.com/stg/ltu27738 Business Partner: http://www.ibm.com/services/weblectures/dlv/partnerworld/ltu27738

Storage Education Version:- Level 200: Winning Competitive Storage Accounts with the IBM Systems Consolidation Evaluation

Tool (Mar 2009 - 24 Minutes) IBM Internal: http://lt.be.ibm.com/stg/ltu27852 Business Partner: http://www.ibm.com/services/weblectures/dlv/partnerworld/ltu27852

Advanced Training Module – Adjusting Global Settings (23 Minutes):- https://admin.na3.acrobat.com/_a819987824/p18755987/

Advanced Training Module – Adding an IGF Lease (9 Minutes):- https://admin.na3.acrobat.com/_a819987824/p63806327/

Additional Competitive Offers Training (33 Minutes):- https://admin.na3.acrobat.com/_a819987824/p45129714/

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Now Get Started Go to this URL:

- https://roianalyst.alinean.com/stg/- Follow the link on the bottom right for Not Registered Yet- In a few minutes Alinean Support will send you a temporary password- Use it to log in and then change password as appropriate

Select correct version of calculator you want to use:- Storage midrange version- Power platform (includes PowerBlades)- System x / BladeCenter platform

Enter Customer Information and click Create New Analysis

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Offline Version (Pack-n-Go) Now Available!

Offline Version (Pack-n-Go:- http://png.alinean.com/IBM_STG/Alinean%20EnterpriseROI%20Desktop.html- You must be registered at the online site first:

https://roianalyst.alinean.com/stg/ Follow the link on the bottom right for Not Registered Yet In a few minutes Alinean Support will send you a temporary password Use it to log in and then change password as appropriate

Select correct version of the offline calculator you want to use:- Download and install the executable- Follow directions to synchronize with the host- After complete, you’ll be able to launch the tool from your Programs list

Be sure to synchronize every couple of weeks

32

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DYNAMIC INFRASTRUCTUREDYNAMIC INFRASTRUCTURE– Reduce Cost through Virtualization– Green Infrastructure– Resilient Business Infrastructure– Information Infrastructure– Dynamic Infrastructure for Retail Store

Solutions

COMPETITIVECOMPETITIVE

FOOTPRINT EXPANSIONFOOTPRINT EXPANSION

– Competitive Virtualization with Power®, System x

– Competitive Scale Up Applications– Sun Tape Takeout– Competitive Rack to Blade– Protect More. Store Less. – Winning Competitively with IBM Systems and Storage

– BladeCenter – No Compromises– SAP for Large Enterprises and for MM– Oracle for Large Enterprises and for MM– Business Optimization with Business

Intelligence– zGrowth – New Workloads– eX4 Xperience IT– iCare– Store Optimization

Sales Kit with all Financial Selling Modules (FSMs)

All of these STG Sales Acceleration Plays have their own Financial Selling Module

Each is structured like the one being presented today using various financial tools for proof points/examples

Each FSM is found in the corresponding play sales kit or on the play dashboard

and

All Financial Selling Modules can easily be found in a single FSM Sales Kit available to IBMers and BPs

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More Information

Presenters: IGF WW Marketing Manager: Bill Reed, [email protected] System z Platform Marketing: Doug Pearson, [email protected] STG Program Manager: Al Wissinger, [email protected]

Current Quarter STG Sales Playbooks Playbooks contain overviews of each of the plays listed today with links to sales play

dashboards and sales kits and contact information for each play owner Link to current quarter STG Sector Playbook and STG GB Playbook

Additional Selling Aids:

3 Reasons of Call that are supported by the STG Sales Plays

STG Sales Play Activation Guides - one for each play (available end of August

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Notes:

Performance is in Internal Throughput Rate (ITR) ratio based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput that any user will experience will vary depending upon considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve throughput improvements equivalent to the performance ratios stated here.

IBM hardware products are manufactured from new parts, or new and serviceable used parts. Regardless, our warranty terms apply.

All customer examples cited or described in this presentation are presented as illustrations of the manner in which some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions.

This publication was produced in the United States. IBM may not offer the products, services or features discussed in this document in other countries, and the information may be subject to change without notice. Consult your local IBM business contact for information on the product or services available in your area.

All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.

Information about non-IBM products is obtained from the manufacturers of those products or their published announcements. IBM has not tested those products and cannot confirm the performance, compatibility, or any other claims related to non-IBM products. Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products.

Prices subject to change without notice. Contact your IBM representative or Business Partner for the most current pricing in your geography.

* Registered trademarks of IBM Corporation

The following are trademarks or registered trademarks of other companies.

* All other products may be trademarks or registered trademarks of their respective companies.

Adobe, the Adobe logo, PostScript, and the PostScript logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States, and/or other countries.Cell Broadband Engine is a trademark of Sony Computer Entertainment, Inc. in the United States, other countries, or both and is used under license there from. Java and all Java-based trademarks are trademarks of Sun Microsystems, Inc. in the United States, other countries, or both. Microsoft, Windows, Windows NT, and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries, or both.InfiniBand is a trademark and service mark of the InfiniBand Trade Association.Intel, Intel logo, Intel Inside, Intel Inside logo, Intel Centrino, Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, Itanium, and Pentium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.UNIX is a registered trademark of The Open Group in the United States and other countries. Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both. ITIL is a registered trademark, and a registered community trademark of the Office of Government Commerce, and is registered in the U.S. Patent and Trademark Office.IT Infrastructure Library is a registered trademark of the Central Computer and Telecommunications Agency, which is now part of the Office of Government Commerce.

The following are trademarks of the International Business Machines Corporation in the United States and/or other countries.BladeCenter*Cognos*DB2*DominoIBM*IBM(logo)Power Systems

System StorageSystem xSystem z*System z10System z10 Business ClassTivoli*

WebSphere*z10z10 BCz10 ECz/OS*z/VM*

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