Steve Strutt & Mark Tomlinson from IBM UK and Ireland spoke at the CIO Event, March 2013

1. Cloud is changing the way business consumes IT.
Are you in control?
CIO Event, 19 March 2013
Mark Tomlinson and Steve Strutt
Joint CTOs, Cloud Computing, IBM UK & Ireland
© 2013 IBM Corporation

2. For the first time, CEOs identify technology as the most important
external force impacting their organisations
External forces that will impact the organisation
2004 2006 2008 2010 2012
71%
Technology factors
69%
People skills
68%
Market factors
Macro-economic factors
Regulatory concerns
Globalisation
Socio-economic factors
Environmental issues
Geopolitical factors
Source: 2012 IBM Global CEO Study, Q1 “What are the most important external forces that will impact your organisation over the next 3 to 5 years?” (n=1709)
2 © 2013 IBM Corporation

3. The most successful CIOs will be those who understand and
deliver on four mandates, aligned with their organisation’s strategy
Expand mandate Leverage mandate
Refine business processes and Streamline operations and
enhance collaboration increase organisational effectiveness
 Outsource to focus on differentiators  Standardise infrastructure & processes
 Communicate & collaborate internally  Control legacy costs
 Focus on business process management  Implement collaboration tools
 Review and update legacy environment  Conservative introduction of technology
47% for UKI respondents, 50% of global respondents 18% for UKI respondents, 14% of global respondents
Transform mandate Pioneer mandate
Change the industry value chain Radically innovate products, markets,
through improved relationships business models
 Use “Big Data” and real-time info  Pilot technology for social value
 Simplify for clients/partners  Explore new sources of revenue
 Enhance and expand the value chain  Enhance customer experience
 Use risk management frameworks  Pursue non-stop growth
20% of UKI respondents, 23% of global respondents 15% of UKI respondents, 13% of global respondents
Source: 2011 IBM CIO Study, Questions D1 to D4: “How does your business look at the role of IT?” (n=3,018, 133 in UKI): IBV Analysis
3 © 2013 IBM Corporation

4. UK Cloud adoption and trends for 2013
 First time Cloud adoption has grown
27 per cent in just 18 months and the
rate of growth is still accelerating
 CIF predict that 75 per cent of UK
companies will be using at least one
Cloud service by the end of 2013
Source: Cloud Industry Forum 2012 Research – Cloud UK Paper 8: UK Cloud Adoption and trends for 2013 (n=250)
4 © 2013 IBM Corporation

5. Workshop topic:
So are you in control of your organisation’s use of Cloud services?
Please discuss the following in your groups and select someone to briefly summarise the
discussion back to the room:
1. Is the line-of-business within your organisation already using or evaluating cloud services –
especially Software-as-a-Service?
2. Did they engage IT during the selection or adoption process? What was the outcome?
3. How can you govern cloud adoption within an organisation and simultaneously deliver
against the Transform and Pioneer CIO mandates?
5 © 2013 IBM Corporation

6. IBM is here to help
 IBM has a portfolio of over 65 Software-as-a-Service offerings – addressing business needs
including Smarter commerce, mobile, procurement, talent management and collaboration
 We are working in partnership with IT organisations in many UK clients to provide effective
governance and visibility of their company’s adoption of cloud services, and helping them
assess the way cloud computing will change the role of their IT department
4,000+ Successful client Cloud
transformations 80%
Fortune 500 utilising
IBM cloud capability 19m IBM SaaS users
If you would like to know more, please visit us at ibm.com/uk/cloud
6 © 2013 IBM Corporation