Delivering Value with Tivoli Automation Tivoli Live Nick

Delivering Value with Tivoli Automation Tivoli Live! Nick Drabble Automation Business Leader, Tivoli UKISA © 2006 IBM Corporation

IBM IT Service Management Agenda § IT Challenges § Delivering Enhanced Automation Value – Provisioning & Configuration Management – Software Asset Management – Usage and Chargeback – Operational Management – Micromuse Acquisition – Availability Management 2 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management IT Organizations Face Tremendous Pressure on Many Fronts § Complexity: Resources, silos, composite applications § Change: Market demands, workloads, service levels § Compliance: Regulations, security, 78% of CEOs believe integrating business and technology is fundamental for innovation audit capabilities § Cost: IT infrastructure and management Source: 2006 IBM Global CEO Survey 3 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Trend: IT Efficiency and Effectiveness are Waning Decrease in Efficiency as IT Spending Shifts to Operations Labor Application development & support labor has dropped from 48% to 34% of IT Labor spend over previous 4 years. 70% of 2005 CIO Budget is Labor Source: Tivoli Commissioned IDC Study 1 Q 05 Source: Gartner Group, IT Spending & Staffing surveys 70% of CIO budget is Labor § 70% of CIO budget is labor § Operations labor will be 73% of CIO labor budgets by 2008 § Application development will decline at -10% CGR to 2008 § $325 B in operations labor by 2008 4 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management – Innovation that Matters The industry’s most comprehensive set of products, services and solutions IBM IT Service Management IT CRM & Business Management Service Delivery & Support Service Deployment Information Management Business Resilience IT Process Management Products IT Service Change and Configuration Management Platform Management Database (CCMDB) IT Operational Management Products Server, Network Business and Device Application Management Best Practices Storage Management Security Management • Tivoli continues to invest across the portfolio • New acquisitions to deliver rapid value in the automation space • Automation product enhancements 5 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management IT Operational Management Products Integrated across silos through the ITSM platform to the IT process management products Business Server, Network & Storage IBM IT Service Management IT Process Management Products IT Service Management Platform IT Operational Management Products Best Practices Tivoli Product Portfolio Available TODAY! 6 Tivoli Live! Application Management Products include: § Tivoli Composite Application Manager • Tivoli Business Systems Manager • Tivoli Intelligent Orchestrator • Tivoli Service Level Advisor Tivoli License • • Tivoli Manager Tivoli License • • Tivoli Compliance Manager • • Tivoli Usage and Accounting Manager • Netcool/Impact Device Management Products include: § Tivoli Enterprise Console • Tivoli Monitoring • Tivoli OMEGAMON • Tivoli Net. View • Tivoli Remote Control • Tivoli Systems Automation • • Tivoli Workload Scheduler • • Tivoli Provisioning Manager • • Tivoli Configuration Manager • Tivoli Decision Support for z/OS • Netcool/OMNIbus • Netcool/Proviso • Netcool/Precision • Netcool/Monitors Management Products include: • Tivoli Storage Manager • Tivoli Continuous Data Protection for Files • Total. Storage Productivity Center 15 June 2006 Security Management Products include: • Tivoli Access Manager • Tivoli Identity Manager • Tivoli Federated Identity Manager • Tivoli Directory Server • Tivoli Directory Integrator • Security Compliance Manager • Netcool for Security Management © 2006 IBM Corporation

IBM IT Service Management Software Policy Management UNIQUE REQUIREMENTS Enterprise Automation and Provisioning Value from Automation Solutions Tivoli Intelligent. Highest Orchestrator 5. 1 best practices • Execute repetitive, error-free Data Center Automation (Policy-based. Interfaces Provisioning) to Data Center devices • Server provisioning New! • Network provisioning • Storage provisioning, Extensive Automation) • Security provisioning LPAR (Complex Physical Server Patch Management Software Distribution and Management New! Highest Value from Management Solutions Tivoli Configuration Interfaces. Manager to remote branch 5. 1 devices (Branch Office – Departmental) Software Deployment and Packaging Network Considerations (Software Distribution, Inventory, Patch Management Scalability Requirements Compliance and • Remediation) Thousands of autonomous remote sites Servers Checkpoint Restart at Job/Network levels Clients Asset Inventory TPM “Express” for Software Distribution 4. 1 New! (includes TPM Express forto. Inventory) Interfaces What’s Remote Software Distribution • Distribution) Windows 2000, Windows XP, Windows (SMB Software and Management (Pervasive – Mobile Client) UNIQUE REQUIREMENTS COMMON REQUIREMENTS Servers VMware UNIQUE REQUIREMENTS Tivoli Provisioning Manager 5. 1 CE, Palm OS, phones New! Significantly higher scalability requirements • Tens of thousands of “intermittently Inventory) connected” clients Server control point at central site TPM “Express” for Inventory 4. 1 (SMB Bare-Metal Installation Clients - Pervasive 7 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Provisioning Delivering a Value Roadmap Automation Value Roadmap Provisioning Automatically install and configure servers when required for an application Reassign resources to servers without disrupting operation Create new services as needed, with exactly the resources that are needed Provide this function in a cross-platform environment without regard to underlying implementation Dynamically deploying and optimizing IT resources real-time Orchestration 8 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Provisioning Process in a NON-Automated Environment Server on the Dock Load OS – Scripted or Human Load Utilities, Patches. Issuance process 9 Tivoli Live! Validate Security, ensure Correct Policies in place Component Load – Middleware Default Configuration Configure Components – Middleware Configure Tools and Agents Apply Application Specific Changes Make Resource available for “Test, QA, Production” Ensure Network, Storage, and App configurations Are correct. Non-Automated provisioning Requires HUMANS, to analyze, Build, test, deploy, and configure The servers into an environment. Reality is that customers typically take several weeks to deploy a single server into an environment. 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Automated Provisioning Process CBL Plugins In New Server 1 Automatically Discover and Update Data Centre Model in CMDB 2 Automatically Provision Resource - Using Best Practice - Based on target desired state - Using automated workflow engine - Includes OS, patches, middleware, application, configurations & updates - Logically grouped in resource pool 10 Tivoli Live! 3 Allocate Resource to Business -Scheduled - Reserved - Provisioned dynamically 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Virtualised Data Centre Model Visualisation 11 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Provisioning Manager Value Application Build = $1 M pa saved (35 servers/month) Migration Done in 20 hours & 13% of budgeted cost 12 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Provisioning and Orchestration TCM “Software Distribution and Inventory” Solution MAR JUN SEP DEC Being renamed to ‘TPM for Software 5. 1” in September TCM 5. 1 TCM 4. 2. 3 TCM 5. 1 w/Framework TCM 5. 1 • Packaging for Distributed and Data Center • New Customers – Most likely TCM 5. 1 Package • Installed Customers – Most likely TCM 5. 1 “w/Framework” Package ---------------- • New User Interface • New Content Delivery Infrastructure • Improved Reporting • Leverage Active Directory Data • Software Distribution on SOA and Framework • Multiplatform Patch Management 13 Tivoli Live! This is what a customer will get for TCM 4. 2. 3 maintenance. --------------- • Intel Boot Server and Personality Migration • Simple Software Stack Provisioning • Endpoint coexistence and migration • Coexistence with TCM/TMF infrastructure 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Provisioning and Orchestration TPM - TIO “Automation” Solution MAR TPM 3. 1 JUN SEP DEC TPM 5. 1 Includes Everything in TCM 5. 1 and. . TPM 5. 1 • Packaging for Data Center • All Data Center Customers – Packaging by “Manage from” OS ---------------- • New User Interface • Multiplatform Patch Management • Intel Boot Server and Personality Migration • Software Distribution on SOA • Improved Reporting • Leverage Active Directory Data 14 Tivoli Live! --------------- • Workflow Creation and Modification • Composite Application Stack Provisioning • Automation and Provisioning Capabilities • • Server, Operating System, Middleware Applications Storage Provisioning and Automation Security Provisioning and Automation Network Device Provisioning and Automation 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management 5. 1 Release Objectives – Summary of what’s new § Rapid Deployment – New framework independent architecture plus framework based version carries forwards § Improved TCM interface – Consolidated Web UI & Web based Reporting – Total Cost of Ownership (TCO) § Deliver Strategic benefits for configuration management – Service Oriented Architecture (SOA) based components – Provide a migration path from TMF to SOA § Improved Function – More scalable, flexible deployment infrastructure through Content Distribution Services (CDS) § branch office support - grid based distribution, disconnected branch offices – TCO - fewer management servers when using SOA 2 -tier topology – Improved Microsoft Active Directory (MSAD) integration – Additional Software and Patch automation – Enhanced OS Management – Software Compliance Management 15 Template Documentation 10/21/2021 © 2006 IBM Corporation

IBM IT Service Management IBM Tivoli Provisioning Manager Express Products Two New Express Offerings § IBM Tivoli Provisioning Manager Express for Inventory 4. 1 § Collects hardware and software inventory for reporting, audit and compliance § Upgrades to IBM Tivoli Provisioning Manager Express for Software Distribution 4. 1 § Includes IBM TPM Express for Inventory 4. 1 function § Push, Pull and CD software distribution capability IBM Tivoli Express: Simple, Fast, Secure IT Management Monitoring Express Storage Manager Express Identity Manager Express 16 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Why Automate Provisioning? 1. 2. 3. 4. 5. Reduce operational cost Reduce time to market for new applications Increase service availability levels Increase business agility / flexibility Reduce risk of error via best practice, defined, repeatable workflow 6. Increase quality of new application code 7. Ensure that test configuration mirrors production environment 8. Increase productivity of operational staff 1. Less cost & less risk 2. Faster to market 3. Better service IBM are automating provisioning WW across 400, 000 endpoints 17 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Star Technology Group Business Challenge To keep the cost of providing managed services to a minimum, and slow data center growth On-demand Business Benefits: “Star Technology are totally committed to a total on-demand strategy. Automation and virtualization in the data center are the enablers, and IBM Tivoli Intelligent Orchestrator is the tool we need to get us there” —Mark Lamb Technical Director, Managed Services Star Technology Group § Increased utilization of computing and human resources through business policy-based automation, including existing best practices § Anticipated 75% efficiency increase in server provisioning over >2000 servers in data center § Anticipated 60% slow-down in data center density § Enables the introduction of a complete range of on demand services to customers, at a optimized value, through utility-style chargeback. § Enhanced responsiveness to new business opportunities Solution §IBM Tivoli Intelligent Orchestrator 18 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management See Tivoli Intelligent Orchestrator in Action Live! www. wimbledon. org "IBM enables us to offer an unparalleled level of service to the players, enhanced further by the personalised service provided by the new management solution. It is IBM's insight that has helped us reach new audiences using channels that were not feasible just a few years ago. ” Chris Gorringe Chief executive The All England Lawn Tennis and Croquet Club AELTC launches Wimbledon Live – a brand new service with live and on-demand video coverage of the Wimbledon 2006 Championships 19 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management IT Financial Management – Software Asset Management IBM IT Service Management IT Process Management Products IT Service Management Platform IT Operational Management Products Best Practices 20 Tivoli Live! Business Application Management Products include: § Tivoli Composite Application Manager • Tivoli Business Systems Manager • Tivoli Intelligent Orchestrator • Tivoli Service Level Advisor Tivoli License • • Tivoli Manager Tivoli License • • Tivoli Compliance Manager • Tivoli Usage and Accounting Manager • Netcool/Impact Server, Network & Device Management Products include: § Tivoli Enterprise Console • Tivoli Monitoring • Tivoli OMEGAMON • Tivoli Net. View • Tivoli Remote Control • Tivoli Systems Automation • Tivoli Workload Scheduler • Tivoli Provisioning Manager • Tivoli Configuration Manager • Tivoli Decision Support for z/OS • Netcool/OMNIbus • Netcool/Proviso • Netcool/Precision • Netcool/Monitors Storage Management Security Management Products include: • Tivoli Storage Manager • Tivoli Continuous Data Protection for Files • Total. Storage Productivity Center Products include: • Tivoli Access Manager • Tivoli Identity Manager • Tivoli Federated Identity Manager • Tivoli Directory Server • Tivoli Directory Integrator • Security Compliance Manager • Netcool for Security Management 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management IT Financial Management has become a topic of increasing focus and an important issue for CXOs when aligning IT with the Business Goals Align IT with the Business … Service Quality Financial Management Asset Management & Compliance 21 Business Strategy Investment Governance Optimization Resource Accounting & Chargeback Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management The Challenge and the Solution – Align IT Software Spending with Business Priorities What software do I have? Tivoli’s Unique Capability Auto-Discovery of Software Assets End-to-end Tivoli License Compliance Manager To what extent is this software used? Is this different from what was purchased? Usage & Activity Monitoring Tivoli License Compliance Manager Tivoli Contract Compliance Manager How much is each software asset costing me now and in the near future? Contract Management Comparing Usage to Contracts Tivoli Contract Compliance Manager All three questions must be answered to align IT spending with Business Goals 22 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Tivoli IT Asset Management Overview An end-to-end Asset Management facility delivering efficient control of inventory, contracts and costs associated with the use of IT Assets Tivoli Contract Compliance Manager CCMDB Future Tivoli Enterprise-Wide Reports Asset Management Mainframes Future Service Desk, ERPs, Other Tools UNIX/NT Servers Tivoli Configuration Manager Viewer Tivoli License Compliance Manager for z/OS ITFM/ ITAM Process Manager AS/400 Tivoli License Compliance Manager PCs Tivoli Usage Accounting Manager 23 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Where Do SAM Savings Come From? 80% from Unnecessary Software Invoice Reconciliation Avoiding Penalties Productivity Improvement 24 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management What will Your savings be? “We are under control , we know every piece of software running on our systems……. “ § European Bank - Told us they had 109 products on their system we found 109 products. . plus 119 more. . all in use! § Major Outsourcer - Attributed $35 m of savings directly to Isogon in 18 months § Regional Bank – Independent consultant paid € 1 m as his share of Year 1 savings realised via Isogon “Enterprises that begin an asset management program experience up to a 30% reduction in costs the first year. . and continue savings of 5 -10% for the next 5 years” – Gartner 25 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management IT Financial Management – Usage and Accounting IBM IT Service Management IT Process Management Products IT Service Management Platform IT Operational Management Products Best Practices 26 Tivoli Live! Business Application Management Products include: § Tivoli Composite Application Manager • Tivoli Business Systems Manager • Tivoli Intelligent Orchestrator • Tivoli Service Level Advisor • Tivoli License Manager • Tivoli License Compliance Manager • • Tivoli Usage and Accounting Manager • Netcool/Impact Server, Network & Device Management Products include: § Tivoli Enterprise Console • Tivoli Monitoring • Tivoli OMEGAMON • Tivoli Net. View • Tivoli Remote Control • Tivoli Systems Automation • Tivoli Workload Scheduler • Tivoli Provisioning Manager • Tivoli Configuration Manager • Tivoli Decision Support for z/OS • Netcool/OMNIbus • Netcool/Proviso • Netcool/Precision • Netcool/Monitors Storage Management Security Management Products include: • Tivoli Storage Manager • Tivoli Continuous Data Protection for Files • Total. Storage Productivity Center Products include: • Tivoli Access Manager • Tivoli Identity Manager • Tivoli Federated Identity Manager • Tivoli Directory Server • Tivoli Directory Integrator • Security Compliance Manager • Netcool for Security Management 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Virtualization momentum Server spending around virtualization will balloon to nearly $15 billion by 2009 * 49% of sites have or plan to implement 29% of sites implemented Source: IDC and STG MI Of those who have not implemented, over half intend to implement server virtualization technologies within the next 1 -2 years 27 Tivoli Live! *Info. World: “Virtualization ramp up 15 is real – IDC”, June 2006 October 18, 2005 ; “$15 billion worldwide by 2009” © 2006 IBM Corporation

IBM IT Service Management Usage and accounting capabilities are critical for virtualized environments Usage data collection addresses key virtualization requirements § Need to assign costs that are not related to a box or role, e. g. , the cost of managing the architecture or the overall installation costs § Must allocate costs and identify accurate usage as a prerequisite to implement end-to-end service level agreements § Desire to continually optimize the utility infrastructure § Costing and usage assignment critical to creating a Service Oriented Infrastructure 28 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management The Challenge and the Solution Align IT Software Spending with Business Priorities IBM Capability Who is consuming which IT resources? Data collectors for IT infrastructure can review consumption across multiple dimensions What is the cost of those resources, including those that are shared? Costing engine assigns cost to resource usage How should IT allocate cost for chargeback, ROI, costing analysis, and billing? Costing engine associates usage costs to consumers of IT resources All three questions help align IT spending with business priorities 29 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management IBM completes acquisition of CIMS Labs Resource Usage based accounting, cost analysis & chargeback §IBM Tivoli Usage and Accounting Manager (ITUAM) § A Cross-platform software system that determines the cost of providing information services § Helps manage IT costs by appropriating costs to an organization’s products, services and business functions § A software system that measures, analyzes, reports and bills the utilization and costs of different computing resources – including servers, storage, networks, databases, virtualized environments, messaging & other shared services § An integral part of an organization’s financial reporting systems – Provides Invoicing, Product Profitability, ERP Integration, Activity Based Costing, Resource & Cost Trending, etc New! 30 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

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IBM IT Service Management 32 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management 33 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Why is IBM Tivoli Usage and Accounting Manager important? CIO’s today have to support growth while managing costs. CIO agenda § Support increased business flexibility and introduce new § § § applications faster Better integrate business processes with IT Improve IT systems utilization and productivity Demonstrate how IT investment meets the business need Reduce or mitigate business operations risk Reduce Cost ITUAM Value summary • Accurately and fairly determine the cost of providing IT services to the user community • Predict and justify future IT spend • Automate cumbersome manual processes for chargeback and/or IT cost allocation • Easy to use Web-Based Reporting & Drill-Down and multiple outputs 34 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Operational Management IBM IT Service Management IT Process Management Products IT Service Management Platform IT Operational Management Products Best Practices 35 Tivoli Live! Business Application Management Products include: § Tivoli Composite Application Manager • Tivoli Business Systems Manager • Tivoli Intelligent Orchestrator • Tivoli Service Level Advisor • Tivoli License Manager • Tivoli License Compliance Manager • Tivoli Usage and Accounting Manager • Netcool/Impact Server, Network & Device Management Products include: § Tivoli Enterprise Console • Tivoli Monitoring • Tivoli OMEGAMON • Tivoli Net. View • Tivoli Remote Control • Tivoli Systems Automation • • Tivoli Workload Scheduler • Tivoli Provisioning Manager • Tivoli Configuration Manager • Tivoli Decision Support for z/OS • Netcool/OMNIbus • Netcool/Proviso • Netcool/Precision • Netcool/Monitors Storage Management Security Management Products include: • Tivoli Storage Manager • Tivoli Continuous Data Protection for Files • Total. Storage Productivity Center Products include: • Tivoli Access Manager • Tivoli Identity Manager • Tivoli Federated Identity Manager • Tivoli Directory Server • Tivoli Directory Integrator • Security Compliance Manager • Netcool for Security Management 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management IBM Tivoli Workload Scheduler v 8. 3 New! Single solution to manage workloads from multiple applications, across multiple platforms Job Scheduling Console § Scheduling repository on a real RDBMS § Tivoli Management Framework replaced with Web. Sphere Infrastructure TWS z/OS Server TWS Server § Advanced planning capabilities z/OS based § Public J 2 EE and Web Service APIs New Product for 36 End to End Job Scheduling Distributing Workload TWS Dynamic Workload Broker New! TWS Agents TWS Business Agents AIX, HP, Solaris, Windows, Linux, OS/400, z/OS… Tivoli Live! Distributed 15 June 2006 SAP People. Soft Oracle © 2006 IBM Corporation

IBM IT Service Management Automation Summary Challenges facing IT § Cost: IT infrastructure and management § Change: Market demands, workloads, service levels § Complexity: Resources, silos, composite applications § Compliance: Regulations, security, audit capabilities Provis & Config Software Asset 70% of 2005 CIO Budget is Labor Usage & Acctg Production Ops Source IDC 37 Tivoli Live! All Costs reduced Service improved Business flexibility improved Faster time-to-market Costs reduced Compliance Managed Understand Usage Costs Resources optimised Costs reduced Resources Optimised Productivity improved 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management § Thank You § Questions? 38 Tivoli Live! 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management Next. . Availability Management & Micromuse IBM IT Service Management IT Process Management Products IT Service Management Platform IT Operational Management Products Best Practices 39 Tivoli Live! Business Application Management Products include: §§ Tivoli Composite Application Manager • Tivoli Business Systems Manager • Tivoli Intelligent Orchestrator • Tivoli Service Level Advisor • Tivoli License Manager • Tivoli License Compliance Manager • Tivoli Usage and Accounting Manager • • Netcool/Impact Server, Network & Device Management Products include: § Tivoli Enterprise Console • Tivoli Monitoring • Tivoli OMEGAMON • Tivoli Net. View • Tivoli Remote Control • Tivoli Systems Automation • Tivoli Workload Scheduler • Tivoli Provisioning Manager • Tivoli Configuration Manager • Tivoli Decision Support for z/OS Netcool/OMNIbus • • Netcool/OMNIbus Netcool/Proviso • • Netcool/Proviso Netcool/Precision • • Netcool/Precision Netcool/Monitors • • Netcool/Monitors Storage Management Security Management Products include: • Tivoli Storage Manager • Tivoli Continuous Data Protection for Files • Total. Storage Productivity Center Products include: • Tivoli Access Manager • Tivoli Identity Manager • Tivoli Federated Identity Manager • Tivoli Directory Server • Tivoli Directory Integrator • Security Compliance Manager • Netcool for Security Management 15 June 2006 © 2006 IBM Corporation

IBM IT Service Management 40 Tivoli Live! 15 June 2006 © 2006 IBM Corporation