Jamie Thomas, General Manager, Storage and Software Defined

THOMAS: As clients move to new consumption models around
cloud and they experience the data explosion associated with
social and mobile, they truly expect Smarter Infrastructure

Increasingly, they are looking for improved

automation, insight and economics across both compute and

Today, I'd like to drill down on data economics in the
context of storage.

Organizations worldwide do see data as

the new natural resource, and they need our help to exploit

So, let's talk about data economics in the context of

some key marketplace shifts.

First of all, cloud.

Cloud is driving our clients to

consider new consumption models including software-defined.
They do so to achieve economics and to achieve the scale
that is required in these environments.

Data and analytics.

Clients are now thinking about

application performance more intently including application

And last but not least, social and mobile.

They're creating an explosion of data that's driving our
clients to make different infrastructure considerations.

there's also the need to control costs associated with data. let's take a look at of our at our customers' environments. So. in many cases. customers have invested millions of dollars in the existing infrastructure. IBM performs several surveys of C-suite executives including CEOs and CFOs. In this environment. over the last decade. controlled fashion.Every year. and furthermore. In our most recent survey. but also manage the cost associated with this data explosion. they have to have the ability to support the business agenda. though. First of all. understanding how to exploit data to their advantage is a key part of this equation.an agenda that includes new applications around -2- . Likewise. most organizations. 71 percent of CEOs indicate that technology considerations are prominent in their decisions. how do I manage the business needs while also managing the bottom line? We understand also that very few clients actually have deployed the intelligent infrastructure required to meet the demands of these considerations. CFOs are really focused on. They have to manage storage in a very systematic. However. are pursuing a new agenda -. including storage. This existing infrastructure supports their traditional systems that they've invested in.

In this environment. let's look at our IBM storage strategy. to support massive scale of data. These are the key tenets of our IBM storage -3- . we're optimizing those traditional storage farms by state of the art virtualization. we can support one billion petabytes of scale with our new software-defined solutions. So.000 clients experiencing the value of our storage virtualization. We're enabling new workloads through software-defined solutions. This is the unique value proposition that we offer to our clients. and to support this notion of elasticity. social and mobile. And last but not least. we're continuing to provide value to clients through the acceleration of our Flash investments. From a scale perspective. requirements are different. and furthermore.analytics. we also announced that we've invested $1 billion in Flash innovation. IBM has a unique advantage to provide our customers with solutions to both sides of this equation to allow them to experience the scale in an economical fashion to support those new workloads and tap in to that knowledge that is stored in those traditional environments. and we continue to deliver on that promise throughout the year as we infuse Flash technology into many of our offerings. Last year. the There's an intense requirement for speed. Often. elasticity brings in this notion of commodity-based storage. and we now have over 46.

they had to make intelligent choices about storage technology. And to do this. So. To provide the services they require to their clients. To be able to optimize the priority of these applications in a systematic way. they've optimized their compute resources in a very intelligent fashion. a provider of healthcare and financial services in the United States. Royal Caribbean Cruise Lines. They obviously wanted to control their costs associated with data and storage. USAA has a very large platform of analytics applications. they've combined leading-edge software-defined storage with IBM's approach to big data implementation. And furthermore. let's look at our strategy through the lens of some clients. They used analytics to generate new marketing campaigns reaching many of their new five million clients that they experience every year. They virtualized their existing environment to achieve those cost objectives. -4- This is . and they utilized Flash to accelerate this next generation set of applications around analytics. USAA. but they also wanted to make sure that they were reaching their clients in new and innovative ways. one of our key clients in the United States. they've created the ultimate in software-defined compute and storage.strategy and what differentiates us in the marketplace.

Axtel is trying to expand their business opportunity to gain insights from their customer billing information and to make the right considerations for their clients both in terms of availability and services offered. One was. they used software-defined solutions. they made several decisions around storage. Axtel. tapping in to things like tape to achieve those economics. once again. of course. accelerating their ability to achieve analytical insight of their data. leveraging the new capabilities that IBM brings to bear. They needed to understand how to accelerate the execution of these applications in a cost -5- . SSB has many data-intensive applications including payroll applications. a key client in Germany. SSB. like many of our clients. a provider of transportation services as well as a managed-service provider in the region. The second was by exploiting state of the art capabilities to ensure they could back up this critical data in an economical fashion. And furthermore. And to do this.one of the premiere examples of a truly software-defined environment. And to do this. So. they virtualized their existing data farm to make sure that they could access that traditional data in the context of these new applications. a communications client in Mexico.

this need to more intelligently process data and consume it for business insight regardless of the industry.affordable manner. So. the ability to execute this next generation workload and actually be able to tap into our existing data and traditional storage environments to do that effectively. you see in all of these examples. So. you can see the combination of elastic scale to support new business needs. IBM has unique capabilities to support new workloads.000 users in the same global name space. This includes the ability to support petabytes of data and over 100. Furthermore as we've discussed. hopefully. but also tapping back into that traditional storage environment. they used our software-defined capabilities. IBM has unique abilities to achieve data economics around existing traditional storage -6- . And furthermore. and they combined those capabilities with their existing resources to achieve really economical backup and recovery of this critical data. That is really our secret sauce in terms of how we're implementing the IBM storage strategy. To do this. it's really this new business innovation that's driving many of the requirements -. It includes the ability to grow and shrink storage capacity in these environments to meet the ever-changing needs and requirements.

to have cost-effective backup in these environments. we have the ability to integrate these next generation environments with our existing storage capabilities to integrate with things like Flash to achieve application acceleration. we're making some key announcements over the next several months. Once again. First of all. So. it's about being able to demonstrate ability to support new application workloads but take advantage of those existing investments. Day Two. hopefully you see that storage is about to become more exciting for both us and our clients. we're announcing our software-defined storage agenda at the Impact Conference. and. to integrate with our tape resources.environments: the ability to virtualize storage across more than 250 IBM and non-IBM storage devices. to integrate with our grid-scale capabilities to allow customers to achieve snapshots of these complex environments to meet regulatory requirements. This provides the ultimate in continuous availability for many of our clients. the ability to seamlessly move storage resources and data to the most cost-effective storage tier. main tent. a conference where we will be discussing the next generation workloads -7- . And to further message to our clients and the industry. This is really the beauty of our software-defined strategy combined with our IBM storage portfolio. And furthermore.

analytics. and that they're able to take advantage of these events to advantage their Smarter Infrastructure agenda and of course. Edge. in May in Las Vegas. mobile and social -. what am I asking you to do? First of all. -8- . our premiere conference for Smarter Infrastructure. start the conversation with your clients today. We need to take the lead. make sure you tell your clients about these various events. helping them understand how these new shifts in the marketplace -. Second. So. So.and their influence on Smarter Infrastructure. where we'll have the opportunity to meet with many of our clients to discuss in more detail our strategy and the updates to our portfolio that will be supporting this strategy for years to come. Don't allow our competitors to take the leading edge in helping our clients transform. This is about setting an agenda for our clients.are related to Smarter Infrastructure decisions. we will be hosting an IBM signature moment in May where we'll have the opportunity to further engage clients.cloud. press and analysts about our ability to achieve data economics for these new workloads using software-defined storage. their storage agenda. And last but not least.

important opportunity for IBM.Look for opportunities to engage your clients further. so that we can further engage in this conversation together. I'd like to make one last point. . Storage represents a critical control point for our clients as it provides the foundation for data for years to come. Invite them to our conferences. [ MUSIC ] [END OF SEGMENT] -9- Help us capture this Thank you very much. Look for opportunities to ensure that they are informed about our strategy and that they understand our technical depth. Invite your clients to Edge.