IBM is world’s largest business software company. IBM software is (1) Fueled by expertise, (2) Built for change, (3) Ready for work.

1. George Mattathil -
5/18/2011
The IBM Software Story
Helping the Planet to Become Smarter
© 2011 IBM Corporation

2. IBM Software Story
Our world is becoming smarter
Instrumented Interconnected Intelligent
2 © 2011 IBM Corporation

3. IBM Software Story
Across the globe we must confront a crushing set of challenges
10 billion 15 petabytes
Number of marketplace data Amount of data are created every
messages handled by global trading day – eight times the volume
systems each day, placing these housed in all U.S. libraries
systems under extreme stress1
400B kWh 78%
Energy wasted by consumers Percentage of CIOs who want to
annually due to insufficient improve the way they use and
consumption information manage their data
80%
US$4 trillion Percentage of digital data growth
Average daily volume in the world’s that is predicted to be unstructured2
currency marketplaces and require significant effort to
understand and analyze
3 © 2011 IBM Corporation

4. IBM Software Story
Software is key to meeting these challenges, transforming the planet
and making businesses smarter
Smarter Energy & Smarter Smarter Smarter Smarter Solutions
Utilities Government Healthcare Transportation for Retail
Smarter Banking Smarter Insurance Smarter Smarter Smarter
Telecommunications Chemical and Petroleum Electronics
4 © 2011 IBM Corporation

5. IBM Software Story
IBM software
improves patient
health – while
saving millions
Smarter healthcare
The Louisiana Rural Health Information
Exchange, with the help of IBM Business Partner
Carefx, created a web healthcare portal to enable
24 rural hospitals and a major urban medical
center to share records and improve patient care
through telemedicine.
The result is improved patient care with 93% less
duplicate testing, shorter hospital stays and fewer
admissions, saving millions of dollars.
5 © 2011 IBM Corporation

6. IBM Software Story
IBM software
helps to keep
more kids in
school
Smarter education
Hamilton County Department of Education in
Tennessee used predictive analytics to identify
students at risk of dropping out.
As a result, it achieved the best No Child Left
Behind results its history and reduced its annual
drop-out rate by 25%.
6 © 2011 IBM Corporation

7. IBM Software Story
How is IBM software helping deliver better business outcomes?
Massive investments, leading innovations
IBM changed the mix of the business
IBM investment has shifted the
company toward software
 More than $8Bin acquisitions and
$9Bin R&D from 2007-2009
42%
 $20Bin future acquisitions
25% 37%
 53 software acquisitions since 2001
40% 37% 42%  40 innovation centers, 80 R&D labs,
33k developers, 30k+ partners
 Focus on software
35% 23% 16%
solutions&business
2000** 2006 2009
processtransformation
Software Services Hardware/financing
Segment Pre-tax Income
7 © 2011 IBM Corporation

8. IBM Software Story
As the world’s largest business software company,
IBM is helping organizations of all sizes tackle their most important
business challenges*
Information Business
and analytics integration and
optimization
Product and
People
service innovation
Risk, security Business
and compliance infrastructure and
services
8 © 2011 IBM Corporation

9. IBM Software Story
These business challenges are interdependent—and IBM software
can address them holistically
Information Business People Product and Business Risk, security
and analytics integration service infrastructure and
and innovation and services compliance
optimization
IBM software is optimized to work together in integrated solutions and architected on
open standards that allow it to work with other software and hardware.
9 © 2011 IBM Corporation

10. IBM Software Story
IBM solutions are built on a
core set of software capabilities*
Application Infrastructure Enterprise Content Management
Application Lifecycle Management Enterprise Marketing Management
Asset Management Enterprise Modernization
Business Analytics Information Governance
Business Process Management Information Integration and Federation
Business Service Management Network and Service Assurance
Cloud and Virtualization Management Security
Commerce Social Business Application Development
Complex and Embedded Systems Social Collaboration
Connectivity and Integration Storage Management
Data Management Systems Management
Data Warehousing Unified Communications
Design and Development Web Experience
Enterprise Architecture and Portfolio
Management
10 © 2011 IBM Corporation

11. IBM Software Story
The real value arrives when the software capabilities are delivered in
an industry context through IBM Industry Frameworks
Accelerate Solution Design
Retail-specific assets
Marketing and IT Systems
Customer and
Management Operations Reduce Project Risk
Reusable implementation patterns
and support for industry standards
Integration
Optimization
Store and Analytics
Business Flexibility
Channels and Finance
Collaboration Administration Choice of business applications
Security
and services from IBM and IBM
Resiliency
Business Partners
Merchandising
Supply and Product ROI
Chain Management Build a differentiated retail capability
and business value—
one project at a time
Example: IBM Retail Industry Framework
11 © 2011 IBM Corporation

12. IBM Software Story
Moosejaw Mountaineering revs retail madness with a multi-channel
and social commerce solution built on the IBM Retail Industry
Framework
Business value
Next Social
retailing
 Build ―love the
4 Point of Sale &
self service
madness‖ culture
 ―Endless aisle‖
 Deliver product
3 Cross-channel
integration reviews and specs
 Re-engineer fulfillment
2 Single view of
customer
and merchandising
 Rapid order delivery
 Create community
1 Multi-channel
eCommerce  Foster loyalty
Established web presence
 Redefine brand Delivered greater customer satisfaction
 Transform and unify Stickier promotions
shopping experience Gained market share
Increased efficiency and revenue
12 © 2011 IBM Corporation

13. IBM Software Story
IBM software is…
Fueled by Built for Ready for
expertise change work
Business solutions Prepared Proven
 Deep industry knowledge  Designed to help predict and  Robust
 Built knowledge on how embrace change  Industrial strength
business & the world work into  Solves short-term challenges  Ready to scale
our software. and opens door to future
 Efficient
opportunities
 Secure
& & &
Technology advantage Open Dedicated
 Deep knowledge of software  Flexible  Personal service applying software
 Heritage of integrating  Easily integrated with current to clients’ biggest challenges
hardware, software and systems and future technology, within  Working with clients to anticipate
and beyond the organization the needs of their business
13 © 2011 IBM Corporation

14. IBM Software Story
IBM software delivers unmatched
capabilities, integrated into industry
solutions, that yield quantifiable business
benefits while making the planet smarter.
14 © 2011 IBM Corporation

15. IBM Software Story
Trademarks and notes
IBM Corporation 2010
 IBM, the IBM logo, and ibm.com are trademarks or registered trademarks of International Business
Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked
terms are marked on their first occurrence in this information with the appropriate symbol (® or ™), these
symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information
was published. Such trademarks may also be registered or common law trademarks in other countries. A
current list of IBM trademarks is available on the web at ―Copyright and trademark information‖ at
www.ibm.com/legal/copytrade.shtml.
 IT Infrastructure Library is a registered trademark of the Central Computer and Telecommunications
Agency which is now part of the Office of Government Commerce.
 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.
 Other company, product, and service names may be trademarks or service marks of others.
 References in this publication to IBM products or services do not imply that IBM intends to make them
available in all countries in which IBM operates.
1 Based on IBM estimates.
2 IBM, “IBM Announces Smart Analytics and Transactional Systems to Draw Key Insights from Vast Amounts of Data,” news release, April 7, 2010, http://www-
03.ibm.com/press/us/en/pressrelease/29823.wss
3 Steve Lohr, “I.B.M. to Help Clients Fight Cost and Complexity,” The New York Times, June 14, 2009, http://www.nytimes.com/2009/06/15/technology/business-
computing/15blue.html?_r=2
15 © 2011 IBM Corporation

16. IBM Software Story
Trademarks and notes
IBM Corporation 2011
 IBM, the IBM logo, IBM Project Financing, and ibm.com are registered trademarks, and other
company, product, or service names may be trademarks or service marks of International
Business Machines Corporation in the United States, other countries, or both. A current list of IBM
trademarks is available on the Web at “Copyright and trademark information” at
www.ibm.com/legal/copytrade.shtml
 Other company, product, and service names may be trademarks or service marks of others.
 References in this publication to IBM products or services do not imply that IBM intends to make
them available in all countries in which IBM operates.
 IBM and IBM Credit LLC do not, nor intend to, offer or provide accounting, tax or legal advice to
clients. Clients should consult with their own financial, tax and legal advisors. Any tax or
accounting treatment decisions made by or on behalf of the client are the sole responsibility of the
customer.
 IBM Global Financing offerings are provided through IBM Credit LLC in the United States, IBM
Canada Ltd. in Canada, and other IBM subsidiaries and divisions worldwide to qualified
commercial and government clients. Rates and availability are based on a client’s credit rating,
financing terms, offering type, equipment type and options, and may vary by country. Some
offerings are not available in certain countries. Other restrictions may apply. Rates and offerings
are subject to change, extension or withdrawal without notice.
16 © 2011 IBM Corporation