Tivoli Live 2006 1 IBM IT Service Management

Take Back Control with IT Service Management Tivoli Live 2006 Al Zollar General Manager,

Tivoli Live 2006 Agenda § Successes in 2005 … and The Journey So Far § New Technology Available Today § Customer Presentation: Prudential Financial § Introducing Micromuse and Netcool § Next Steps on Your IT Service Management Journey 3 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 1 H 2005 Announced IBM’s New S The Journey So Far – Executing on Our Strategy IBM IT Service Managem § Introduced innovative ne automation and integrati § Enhanced existing Tivoli management § Released first version of § Developed tools, proces that make ITIL® actionab “IBM IT Service Management solutions help us implement ITIL recommendations to drive a successful service-oriented model. ” –– Jeff Stoddard, CEO and President, Advanced Integrated Solutions 4 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 The Journey So Far – Executing on Our Strategy 2 H 2005 Building IBM ITSM Momentum § Conducted Proofs of Technology § Announced new partnerships and s § Enhanced autonomic capabilities § Acquired Isogon and Collation § Announced Aperi, open source eco IBM Tivoli Solutions for SOA Relea Enhanced Solutions for Availability “We selected the Tivoli product family because it provides us a single product family that is comprehensive and can provide a complete, end-to-end solution for managing the overall infrastructure. ” –– Doug Edwards, Sr. Systems Engineer, Lockheed Martin 5 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 The Journey So Far – Executing on Our Strategy 1 H 2006 Innovation, Executio § Enhanced integratio § Cross-brand solutio § Tivoli Express Solut § Delivered version tw § Extended OPAL to c § Acquired Micromuse § New IT Service Man Available in June § IBM Tivoli Change a § IBM Tivoli Process M “With their new IT Service Management strategy, IBM Tivoli is now really focused on the big picture – not only delivering tools, but an integrated combination of tools, sharing their data through a central database and supporting ITIL processes. ” –– Andreas Golombek, IT Production, Commerzbank 6 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 Tivoli Express: Simple, Fast, Secure IT Management IT management solutions that ensures time-to-value for mid-market customer’s most critical business needs Back-up and Recovery: Store and secure customer, employee and vendor data from multiple applications. Protect data files against system crashes, viruses, hackers and more Problem Determination: Ensure IT performance and availability for critical business applications satisfy customers globally Security Management: Control, monitor and audit access to business applications for remote employees, customers and vendors Desktop Management: Provide software distribution, patch and desktop image management 7 IBM IT Service Management ü ü Tivoli Storage Manager Express IBM Continuous Data Protection for Files Tivoli Monitoring Express Tivoli Identity Manager Express Tivoli Provisioning Manager Express © 2006 IBM Corporation

Tivoli Live 2006 IBM’s Leadership in Driving Open Standards Developing and promoting open standards for IT Service Management § ITIL best practices: Active contributor, reviewer and supporter since 1988 § Web Services Distributed Management (WSDM) § Solution Deployment Descriptor in OASIS workgroup § Open standards for application response time measurement (ARM) § Aperi open source ecosystem for storage management § “Higgins” Project for open identity standards New! 8 IBM IT Service Management Standards Reference Model IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 CMDB Federation Open Standards § Multi-vendor collaboration § Industry-wide specification for CMDB federation § Enables clients to share information between CMDBs and other data repositories across heterogeneous IT environments § Submission to standards body later this year § Endorsed by it. SMF 9 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 The CEO Challenge Bridging the business and technology integration gap What CEOs Are Saying to IBM: § 78% of CEOs believe that integrating business and technology is of great importance to driving business growth § Only 45% of CEOs believe that they have successfully integrated business and technology in their organizations § “… [organizations] must use technology to stay ahead of the curve …” § “Technology must be integrated in the early stages of business strategy …” § “Technology is the only way to cope with the surge of new work … [and] opportunities. ” Source: IBM Global CEO Survey, Jan. 2006 10 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 Integration Drives Significant Business Benefits CEOs who have extensively integrated business and technology show superior results compared to CEOs with limited integration Extensive integrators are more successful: § 2 X as successful in reducing costs § 2 X as successful increasing quality and customer satisfaction § 3 X as successful increasing revenue Reduced Costs Higher Quality and Customer Satisfaction Increased Revenue Source: IBM Global CEO Survey, Jan. 2006 11 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 IT Trends Shaping the Market Improving service delivery within cost constraints requires a new approach § Traditional Systems Management is dead – New focus on IT Services § IT operations spending outpaces IT budget growth § IT service quality continues to decline § SOA and composite applications increase service flow complexity § Complexity is exposing IT organizational disconnects 12 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 Why IBM IT Service Management? 80% § 80% of problems are reported by users § 85% of problems are caused by IT making changes to the environment IT Users: customer. Test! Systems 85% § Customers become the IT Systems Test Team Source: Tivoli Primary Research 2005 13 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 Architectural Complexity Reduces IT Efficiency and Effectiveness Actual Application Architecture for

Tivoli Live 2006 Organizational Complexity Compounds the Problem Managing composite applications across IT silos is major challenge Desktop Experts and Tools Network Experts and Tools Application Experts and Tools Database Experts and Tools Server Experts and Tools Mainframe Experts and Tools Storage Experts and Tools Availability Management Change Management www Security Management Information Lifecycle Management Labor Cost Service Level Management Change Management Release Management Sense 15 IBM IT Service Management Isolate Diagnose Take Action Evaluate Time © 2006 IBM Corporation

Tivoli Live 2006 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 Change and Configuration IT Service Management Platform Database (CCMDB) Management IT Operational Management Products Server, Network Business and Device Application Management Best Practices Storage Management Security Management § Open and federated Change and Configuration Management Database (CCMDB) § Proven technology for integrating ‘Process to Product’ -- including third-party vendors § Based on self-managing autonomic technologies and best practices such as ITIL and e. TOM § Built on an SOA architecture, and can manage and secure SOA environments 16 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 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! 17 IBM IT Service Management 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 • 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 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

Tivoli Live 2006 Build-To-Manage Toolkits Open-source developer Toolkits help integrate Development and Operations § § Link custom applications with operational management tools Speed deployment of your critical applications Accelerate problem resolution and improve SLA management Manage availability and increase reliability IBM IT Service Management Application Developer IT Process Management Products Software Architect IT Service Management Platform Workbench Standards supported: JMX - ARM – WEF – SDD – WSDM IT Operational Management Products Best Practices Learn more at www. ibm. com/developerworks/eclipse/btm 18 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 The CCMDB Simplifies Architectural Complexity Poorly managed change causes 80% of incidents in large environments IBM IT Service Management IT CRM & Business Management Service Delivery & Support Service Deployment Information Management Business Resilience IT Process Management Products Change and Configuration Management Database (CCMDB) IT Service Management Platform IT Operational Management Products Best Practices IBM Tivoli CCMDB available in June 2006! Business Application Management Server, Network and Device Management Storage Management Security Management "The IBM IT Service Management strategy promises to provide greater value through enhanced product integration and visualization. ” –– Yves Vlamijnck, Team Manager, Network & IT Monitoring, Belgacom 19 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 Key Capabilities for a CMDB Minimum CMDB Tivoli CCMDB Resource and Relationship Autodiscovery ü ü Resource Reconciliation ü ü Data Federation ü ü Data Synchronization ü ü Operational Management Product Integration ü ü Capability Change History Automated change and configuration mgmt Standards-based process modeling / runtime Standards-based APIs for application interface ü ü ü What Else? Process aggregation and bottleneck analysis ü Process and CI Relationships ü 20 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 IT Process Managers Bridge Organizational Silos IBM IT Service Management IT Process Management Products IT Service Management Platform IT Operational Management Products Best Practices IT CRM & Business Management Service Delivery & Support Financial Assessment Process Manager Availability Management Process Manager Service Level Management Process Manager Change and Configuration Management Process Manager Asset Management Process Manager Available in June 2006! Service Deployment Information Management Business Resilience Release Management Process Manager Storage Management Process Manager Service Continuity Management Process Manager Security Management Process Manager Capacity Management Process Manager Available in 2 H 2006! Future Directions § Automates IT management processes for rapid responsiveness and greater flexibility § Based on experience applying ITIL, e. TOM, Co. BIT and CMMI in customer environments § Extends autonomic computing technology experience to people, processes and information 21 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 Taking a Modular Approach to IT Service Management ITSM Value Process Management Release Configuration Application Map DB Integrated Management Compliance Application Map DB Change Process DB Change Audits Change and Configuration DB Operational Management Storage Availability Change and Configuration DB Provisioning Service Desk Monitoring Performance Time/Phases Technology Focus 22 IBM IT Service Management Service Focus Business Focus © 2006 IBM Corporation

Tivoli Live 2006 Key Acquisitions Speed Customer Value Platform allows rapid integration of new technologies § Business and service IBM IT Service Management IT Process Management Products IT Service Management Platform IT Operational Management Products Best Practices assurance § Layer 1 to layer 7 network monitoring § Telecommunications capabilities, including IP convergence § Security management § Application discovery and dependency mapping § End-to-end software asset management, from mainframe to distributed § IT chargeback to lines of business 23 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 Introducing Micromuse § Extend IT Service Management with Muse’s real-time Network Service Assurance capability § Extensive product portfolio under the flagship Netcool® brand § Manages the world’s most complex networks and services “As our business grows, we must deal with increasing complexity while delivering high-quality IT services to our business users. The combined Netcool and Tivoli suite will help us meet the challenge. ” –– Mr. Yuan Jun De, Deputy General Manager, Bank of China Information Center 24 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 Examples of Netcool Solutions in Action Revenue Enhancement § A European telco accelerated rollout of nationwide DSL services by utilizing Netcool to oversee its vendors and reduce costly truck rolls § A top-10 US bank implemented a company-wide availability Operational Efficiency system, underpinned by Netcool, to consolidate and streamline monitoring of 11 IT-based “service channels” § A global airline monitors thousands of terminals, kiosks and check-in desks through its centralized Netcool deployment Risk Management § The Netcool suite monitors several of the world’s largest military online user communities, helping to ensure coordinated operations § A large telco consolidated 27 network operations centers to just 2 using the Netcool suite as their manager-of-managers 25 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 What Does the Micromuse Netcool Acquisition Mean to You? IBM IT Service Management IT CRM & Business Management Service Delivery & Support Service Deployment Information Management Business Resilience IT Process Management Products Change and Configuration Management Database IT Service Management Platform IT Operational Management Products Best Practices Business Application Management Server, Device and Network Management Storage Management Security Management Micromuse brings leading management capabilities: § Network Management - Provides discovery, topology and monitoring across layers 1 -3 – Extends network information into the CCMDB § Security Management - Strengthens event correlation, and compliance reporting § Resource Monitoring - Extends monitoring with support for new applications and protocols § IP Convergence - Solutions to manage voice, video, data and IMS converged offerings § Performance Management - Multi-domain solution for historical reporting, capacity planning IT Service Management IBM Corporation 26§ Event. IBM Consolidation - Enhances monitoring, correlation and business service© 2006 management

Tivoli Live 2006 ITSM and Netcool Integration Goals § No Customer is Left Behind – Same strategy as with Candle integration – Technical Convergence paths IT Process Management Products IT Service Management Platform IT Operational Management Products – License Entitlement paths Best Practices § Product Integration – Identify overlap and develop a plan to converge over time into a single portfolio – Construct Day 1 scenarios that enable traditional Tivoli customers to take advantage of more monitors and for traditional Micromuse customers to gain more monitors and richer resource management capabilities § Team Integration – Maintain domain expertise on technology, services and support – Link teams together worldwide for the best synergy 27 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 IBM Tivoli Netcool Delivers Value to Customers IBM Tivoli Netcool helps clients efficiently and effectively manage IT Services in support of business goals § Avoid IT Service Downtime – Realtime end-to-end service visibility and predictive intelligence for problem avoidance § Improve Operational Efficiency – Scalable architecture to consolidate operations management and speed problem resolution § Accelerate IT Service Rollout – Broad off-the-shelf integration and rapid, modular deployment to quickly support new services § Decrease Risk – Security incident response and reporting for compliance integrated into IT service management approach "We rely on Netcool to help us assure the services, end-to-end, that we deliver to our customers. We look forward to continued innovation from IBM as we tackle next generation service assurance challenges. “ –– Peter Hascher, Head of Development at BT 28 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 We’ll Help You Achieve Greater ITSM Value … Quickly § Modular approach lets you adopt IBM IT Service Management at your speed § Open, SOA-based platform lets you IT Process Management Products leverage existing investments § Thriving ecosystem of business partners IT Service Management Platform IT Operational Management Products Best Practices provides extensive support § Based on self-managing autonomic technologies and best practices such as ITIL and e. TOM § Integrated, automated IT Service Management products ready TODAY 29 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 Prudential Financial Business Challenge Centralize and unify control of the companies IT assets, enabling consistent management processes across all Platforms; provide business impact, integrate with Problem and Change Management and contribute to an overall reduction in consoles and workload On Demand Business Benefits “For the first time ever, Prudential Financial is able to manage its IT universe in a “single pane of glass” with IBM and the IBM Tivoli infrastructure management tools. ” — David Quinn, Systems Dir. Prudential Financial 30 IBM IT Service Management § Monitor and manage across multiple IT assets with a business impact perspective allowing more cross training, prioritization and resource assignment § Faster corrective action and the historical reporting feature is an excellent management application in the area of fault history § Event Alerting and Management methodology seamlessly integrated with Problem and Change Control Solution § IBM Tivoli Business Systems Manager, IBM Tivoli Enterprise Console, IBM Tivoli Net. View, IBM Tivoli Monitoring § IBM DB 2 § IBM Web. Sphere © 2006 IBM Corporation

Tivoli Live 2006 Customers Recognize IBM’s Broad Industry Expertise 96 of Top 100 Financial Institutions 96% of Government Agencies Top Global Telco Companies 9 of 10 Healthcare Companies 8 of 10 Top Retailers Energy/Utilities Manufacturing/Industrial Media/Entertainment 31 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 Multiple Entry Points to IT Service Management Starting point depends on your organization’s priorities § IT Service Management Design § IBM Tivoli Unified Process ENTRY § Implementation Services § Innovation Workshops § Services Readiness Assessment § Risk and Compliance Services § IT Process Managers IT Process Management Products IT Service Management Platform IT Operational Management Products Best Practices § IT Service Management Assessment Tool § ITSM Platform and Operations Management Products ENTRY “Over time, the self-managing capabilities of IBM solutions will help us bring costs down and reduce downtime even further. ” –– Anneri Pieterse, Corporate IT Coordinator, TEBA Limited 32 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 Get Started … Take the Next Steps Now! Leverage Tivoli Live § Two customer speakers – BT and NAG § Two sessions by Norman Wilkinson – Unifying automation, storage and security – Process-driven IT Service Management Sign Up for an ITSM Workshop Visit the IBM IT Service Management Website – ibm. com/software/tivoli/itservices Visit ibm. com/software/tivoli/itservices § Education: ibm. com/software/sw- training/ § Online IT Service Management tools "The IBM approach to IT Service Management is taking Enterprise Systems Management at Ford to a whole new level. ” –– George Surdu, Director, Information Technology Infrastructure, Ford Motor Company 33 IBM IT Service Management © 2006 IBM Corporation