competitive technical briefing e-business on demand · 2005-06-10 · cts6-01 introduction.ppt 3...

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e-business on demandCompetitive Technical Briefing

CTS6-01 Introduction.ppt 2

Delivers goods and services on demand

Satisfies customers with immediate responsiveness

Senses and responds to changes in customer needs

Achieves organizational efficiency

Necessary to prosper in the on demand era!

What is an on demand Business?


e-business on demand: An enterprise whose business processes —integrated end-to-end across the company and with key partners, suppliers and customers — can respond with speed to any customer demand, market opportunity or external threat

People Processes Information+ +

“Almost every IT project involves application integration to combine packaged applications, new custom applications or modified legacy applications”

Business Integration is the Top Customer Priority


ComputingEnvironment

Busin

ess

Desig

nFinancial &

Delivery Models

How to Become An on demand Business


ComputingEnvironment

Busin

ess

Desig

nFinancial &

Delivery Models

Step by step process

improvements

on demand operating environment

Traditional ownership or pay

as you go

How to Become An on demand Business


$100M Revenue$ 83M Cost$ 17M Profit

Company A


Company B

Achieves 1% Difference in Effectiveness1% increase in new customers1% more business with each customer1% reduction in costs

What Happens?

Small Advantages are Magnified


Small Advantages are Magnified


Company A


Company B


$ 98M Revenue$ 83M Cost$ 15M Profit


Information Technology is at the heart of an on demand business

Software makes it work

Middleware creates the software platform for business applications

Middleware selection is a strategic decision

on demand Operating Environment


on demand Operating Environment for Servers

People IntegrationPeople Integration

WebSphere Portal ServerLotus Collaboration

Process IntegrationProcess Integration

WebSphere BusinessIntegration

Data IntegrationData Integration

DB2 Information IntegratorDB2 Content Manager

Programming EnvironmentProgramming EnvironmentWebSphere Application Server

Rational and WebSphere Development Tools

Deployment EnvironmentDeployment EnvironmentTivoli System Management

Virtualized Resource Allocation


Runs on any server

Supports any client

Open standards

Interoperates with existing systems

Scalable and reliable

Buy, don't build

World class support

on demand Operating Environment Requirements

People IntegrationPeople Integration Process IntegrationProcess Integration Data IntegrationData Integration

Programming EnvironmentProgramming Environment

Deployment EnvironmentDeployment Environment


on demand Operating Environment –Work With What You Have

People IntegrationPeople Integration Process IntegrationProcess Integration Data IntegrationData Integration

Programming EnvironmentProgramming Environment

Customer ApplicationsCustomer Applications

Central and Departmental Servers

Legacy Systems

Packaged Applications

Other Environments

Browsers

Windows .NET

Linux

Mobile Devices


Open Standards

JAVA Standards .NET proprietary JAVA Standards Moving fromproprietaryto JAVA

Integration WebSphereDB2LotusRational

.NETSQL ServerExchange, EtcWindows only

9i Application Server9i Data Base ServerCollaboration Suite

NetWeaver

Automation TivoliCross platform

Windows only Not in this business

Not in this business

Virtualization Logical partitioningBladesClustersStorage Virtualization

Not in this business Not in this business

Not in this business

IBMon demand

Microsoft.Net

OracleSuite

SAPNetWeaver

on demand Operating Environment -Competitive Perspective


MicrosoftMicrosoft$10.7B$10.7B

IBMIBM $2.6B $2.6B

SunSun $1.0B $1.0BHPHP $1.1B $1.1B

IBMIBM$11.0B$11.0B

ComputerComputerAssociates Associates $2.5B$2.5B

OracleOracle$6.3B$6.3B

Microsoft Microsoft $3.1B $3.1B

MicrosoftMicrosoft$9.4B$9.4B

SAPSAP$4.0B$4.0B

PeopleSoftPeopleSoft $1.2B $1.2BOracle Oracle $1.7B$1.7B

2001 Revenue2001 Revenue

Software Opportunity (2006) = $290B '02 - '06 CGR = 9%

Operating Systems $35B

7% CGR

Applications $148B

9 - 10% CGR

Middleware $107B

9 - 10% CGR

Note: IBM middleware revenue includes IGS transactionsSource: IBM analysis based on Industry Reports / Market Research, 1/03

IBM is the Largest Middleware Vendor


Systems Management$32B

8% CGRIBM Rank: #1IBM Rank: #1

Data Management $32B

9% CGRIBM Rank: #1 IBM Rank: #1

Messaging, Collaborationand e-Learning

$8B13% CGR

IBM Rank: #1IBM Rank: #1Transaction Management

and Integration$17B

10% CGRIBM Rank: #1IBM Rank: #1

Business ProcessIntegration

$4B21% CGR

IBM Rank: #1IBM Rank: #1

Middleware Opportunity (2006) = $107B '02 - '06 CGR = 9 -10%

Source: IBM analysis based on Industry Reports / Market Research, 1/03

ApplicationDevelopment Tools

$14B5% CGR

IBM Rank: #1 IBM Rank: #1

Middleware Market


Source: Gartner / Dataquest 2003

Recent WebSphere Market Sweep

8%BEA31%WebSphere #1Overall AIM:

8%Tibco17%WebSphere #1Broker:

5%Tibco81%WebSphere #1Message:

10%SAP13%WebSphere #1Portal:

29%BEA37%WebSphere #1Application Server:


$20K per CPU WS Commerce Express

$625 per connection AND $625 per server(includes dev tools)

WS Business Integration Connect

$119/userDomino Collaboration Express

$2,500 per CPUDomino Utility Express

$135/ userWS Portal Express Plus(includes Sametime & Quickplace)

$65/client (desktop, laptop, workstation)Tivoli Storage Resource Manager Express

$124/ user AND $624 per serverDB2 Express

$85/ userWS Portal Express

$25/userWAS Express

Price (includes subscription & support)

Product Offering

IBM Express Products for Small and Medium Businesses -Low Price, Easy to Install


Switch to Portal Based CollaborationDeploy an Enterprise PortalIntegrate Business Processes End to EndSelect WebSphere for Your Server Side EnvironmentProtect Yourself! Security Can No Longer Be IgnoredIt’s Time to Consider LinuxImprove Access to InformationIncrease Programmer Productivity With WebSphere StudioMake Your Development Teams More EfficientBuild an Integration BusCut Costs in the InfrastructureImprove business responsiveness and agility, cut I/T costs and time to market

Key TrendsInvestments in Your on demand Operating Environment


for Software Vendors

and Solution Providers

A Message ...


1520

3038

5071

8994 95 94

111121

130152 144

147

41% 75% 71% 36% 47% 56% 50%36% 24%

28%

46%

31%

28%

36%

16%10%

1986

1987

1988

1989

1990 1991

1992

1993

1994

1995

1996

1997

1998

1999

2000 2001

0

5

10

15

20

25

30

Tota

l Rev

enue

, $B

0

50

100

150

200

$/U

nit

Microsoft desktop revenue / PC

Revenue Growth

Ballmer pioneered the measurement 'dollars per desktop.'

% Revenue Growth

Source: IT Industry Average GMV 0H02, Microsoft & Intel CHQ MI & Finance analysis of Wall Street data , PC Shipments: IDC 12/01 Forecast

Microsoft is Taking More From Each PC Sale …


Source: PC Shipments: IDC 12/01 Forecast, IT Industry Average GMV 0H02, Microsoft & Intel CHQ MI & Finance analysis of Wall Street data

2001 2002 2003 2004 2005 20060

500

1000

1500

Rev

enue

, $/P

C

Projected industry average revenue / PC Unit

Microsoft + historical rate

OEM Oppty: $600 - $800

Microsoft plus constant Intel

OEM Oppty:$900 - $1100

$1343

$1050

… Leaving Less For Others


Microsoft is Taking More From Enterprise BudgetsChanges to Enterprise Licensing Agreement

� Elimination of Upgrade Advantage� One-time version upgrades� Least expensive and most widely used upgrade method

� Replace with Software Assurance� Annual subscription charge (25% to 28% of price)� Provides rights to product versions released during the term of the

agreement� Three year term with options to renew� Impact - Costs more than past upgrade options (most organizations will pay

35%-107% more to upgrade per Gartner analysis)� Impact - Added cost if not current - Must GET CURRENT in order to enroll

� Adverse customer reaction� Impact - Customers are looking for alternatives


� Microsoft application sales are $500M per year � Built on Great Plains and Navision acquisitions� Competing with former ISV partners

3Q004Q00

1Q012Q01

3Q014Q01

1Q022Q02

3Q024Q02

0

50

100

150

$M

Business Solutions Revenue History

bCentral MS CRM

NavisionGreat Plains

Microsoft is Taking More From ISV Opportunities


Microsoft’s ISV Strategy


Reduce Dependence onShrinking Opportunity

Diversify

Increase Exposure to theMarket

Find New Growth Areas- Server-side- Linux- Lower Cost Solutions

A Software Vendor Strategy to Prosper and Grow


What is e-business on demand?Portal Based CollaborationEnterprise Portals

BREAKBusiness Integration Fast and SureWhy WebSphere is Better Than .Net

LUNCHProtect Yourself! Security CountsIt’s Time to Consider LinuxIncrease Productivity With WebSphere StudioEfficient Teams Develop Solutions Faster

BREAKImprove Access to InformationUnder the Covers – The Integration BusCut Costs in the Infrastructure

9:00 - 9:309:30 - 10:00

10:00 - 10:3010:30 - 10:4510:45 - 11:3511:35 - 12:3012:30 - 1:30

1:30 - 2:002:00 - 2:152:15 - 2:402:40 - 3:153:15 - 3:303:30 - 3:453:45 - 4:154:15 - 5:00

Agenda


Friendly Finance on demand Operating Environment


Developers: http://www.ibm.com/developerworks/

Business Partners: http://www.ibm.com/partnerworld/

Competitive Material (IBM only): w3.software.ibm.com/competitionw3-3.ibm.com/software/websphere/websites.nsf/View2LevelContent/84CAC22C127AB44C85256BE600557ED7?OpenDocument

e-business on demand Competitive Seminar Materialsand Registration: http://www-3.ibm.com/software/info1/websphere/partners/index.jsp?tab=ed/competitiveroadshow

IBM

For Additional Information


Thank you

competitive technical briefing e-business on demand · 2005-06-10 · cts6-01 introduction.ppt 3...

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