"The New IBM" story around Cloud, Analytics, Mobile, Social and Security with all the hottest partnerships, acquisitions and investment areas like Watson and Bluemix
4. OPEN
HYBRID
PARTNERSHIPS
DATA
CLOUD
ENGAGEMENT
MOVE UP THE VALUE
STACK
INDUSTRY
EXPERTISE
SPEED,
AGILITY
ELIMINATE
COMPLEXITY
ENGAGE
WITH OUR
CLIENTS
STRATEGIC
IMPERATIVES
DIFFERENTIATED VALUE
FOR
OUR CLIENTS
FOCUS ON HIGHER
VALUE
RUNNING OUR
ENTERPRISE
The IBM and Weather Company AllianceKey themes of the IBM Strategy
6. STRATEGIC IMPERATIVE
1. Make markets by transforming industries
and professions with data.
WHAT WE SEE SHIFTING
Data is becoming the
world’s new natural
resource.
CONSIDER:
$187B
potential market in 2015. Survey results suggest 61% of
enterprise tech projects are now
funded by the business rather
than the IT department.
61%
$14B
CRO
$17B
$16B
City
Manufacturing
Officer
$25B
$28B
$40B
$61B
$99B
$39B
Chief Customer
Officer
CFO
CHRO
CSCO
CPO
Chief Medical
Officer
CMO
CSO
Market opportunity (SWG + GBS + GPS)
Scale the market Incubate
the market Emerging
priorityCity Legal
Officer
IBM CONFIDENTIAL 2014 4
$24B
$18B
$31B
City Leaders
connected objects
and devices on the planet
generating data by 2015.
1,000,000,000,000
increase in data-transmitting
transistors per human by 2017.
3x
DVDs worth of data
is generated daily.
500M
petabytes of data is collected
every hour by a major retailer.
2.5
gigabytes of new data
generated every day.
2.5B
of the world’s data is
unstructured. Audio. Video.
RFID data. Blogs. Tweets.
All represent new areas to
mine for insights.
4/5ths
The growth rate of IT spending
by groups outside of IT than in IT
from 2014 to 2017.
2.5x
7. Making markets by transforming
industries and professions with data.
Data is the new basis of
competitive advantage.
INVESTMENT INVESTMENT
$1B
EXPERTISE-BUILDING
INTELLECTUAL CAPITAL
$24B
$1B
$17B
$7B
of IBM Research
is focused on big
data and analytics
5
1/3rd
Analytics
everywhere
Speed of
insight core
differentiator
Cognitive
capability is
key
IBM CONFIDENTIAL 2014
EXPERTISE
analytics-based
patents generated
each year.
500
MARKET IMPACT
invested to date to build
IBM’s capabilities in
Big Data & Analytics.
in Flash technology, providing
industry-leading speed and
efficiency to enable data to
be real-time ready for analytics.
in Big Data & Analytics
acquisitions, including more
than 34 acquired companies.
cumulative organic
development since 2005.
to establish the IBM Watson
Group, dedicating 2,000
professionals to the effort.
Includes $100 million to
enable an ecosystem of
entrepreneurs and partners.
IBM analytics consultants.
15,000
IBM mathematicians.
400
IBM business partners.
2,215
dedicated Watson professionals.
2,000
engagements to date
40,000
Big Data & Analytics revenue
in 2013. It is expected to reach
$20B in 2015.
$16B
university partnerships.
1,000
Big Data University enrollments.
135,000
active practitioners in
AnalyticsZone.com.
40,000
OUR POINT OF VIEW: THEREFORE IBM IS:
8. Voice of
Customer
Understand individuals
Product Research
& Innovation
Identify unmet needs
Real Time Operations
Sense demand shifts
Talent Acquisition
Work with the best
Behavior Driven Service
Engagement in context
Insights from Twitter can shape every business decision
Twitter distinctively represents the public pulse of the planet
9. Integration of
Twitter data with
IBM analytics
services on the
cloud
New data
intensive
capabilities for
the enterprise
Specialized
enterprise
consulting
Business decision making will never be the same.
And what it means to you?
The value of the IBM / Twitter partnership…
10. Segment of “interested in weight loss” focused on “smoothies” shows mostly young, single females
While creating campaigns, doing product research or looking for new target segments –
IBM classifies data in a way that results in more informed decisions
Active reports let you dig into the data to pull insights
11. Dr. Tom Frieden actually influences conversations
of many other users:
•> 15000 accounts influenced
•Some of the accounts are known to Client
However, most of the influencees are new for
Client:
Kathleen Sebelius (ID SEBELIUS)
Former secretary of HHS
Category: Policy Maker
Very influential:
38511 followers, less active (284 tweets),
generates lot of engagement (54860) and has very
high authority
Influencee
Twitter
Handle
Strength of
Influence
Influence
Score
Sebelius 52.682674 93
NIHDirector 52.682674 80
ashishkjha 52.682674 60
HHS_DrKoh 52.682674 38
drjmob 52.682674 12
Farzad_MD 95.786674 9
charlesornstei
n 86.208 8
Surgeon_Gene
ral 81.41868 8
HarvardHSPH 62.261337 8
Exampleinfluencees/influencers
Actual Analysis – Influencer Networks
21. STRATEGIC IMPERATIVE
2. Remake enterprise IT for the era of cloud.
WHAT WE SEE SHIFTING
The emergence of
cloud is transforming IT
and business
processes into
digital services.
CONSIDER:
1/4th 50% 85%
72%$250B 100
CloudNon-Cloud
CAGR growth
for Cloud by 2020
-2%
7%
46%
Today 2020
Cloud percentage
of total IT spend
6
25%
IBM CONFIDENTIAL 2014
of the world’s applications will
be available in the cloud by 2016.
potential market size
for cloud by 2017.
of large enterprises will have
hybrid cloud deployments by 2017.
of developers already report
that cloud-based services or
APIs are part of the applications
they’re designing.
of new software is now
being built for the cloud.
countries have data-
protection regulations
in place.
22. Remaking enterprise
IT for the era of cloud.
Cloud is the path to new
business models.
INVESTMENT
EXPERTISE
PORTFOLIO
MARKET IMPACT
500+
7
$7B 1,500+
36,000
70%
5.5M
$4B+
Hybrid
clouds are
key
Cloud
needs
same rigor
as on prem
Leverage
clouds to
reinvent your
business
INTELLECTUAL CAPITAL
IBM CONFIDENTIAL 2014
16
DEVELOPERS
OUR POINT OF VIEW: THEREFORE IBM IS:
invested to date to build
Cloud capabilities. $1.2B to
build SoftLayer pods in 2014.
acquired companies,
including SoftLayer.
CLIENTS
80%of FORTUNE 500 companies
use IBM’s Cloud capabilities.
client transactions processed
through IBM’s Public Cloud daily.
Growth of year-to-year revenue.
Revenue in 2013, with a $2B
annual run rate for “as-a-service.”
8,000
20,000
100+
15
40
virtual machine configurations
available to IBM’s clients
(versus 27 fixed configurations by
nearest competitor).
SoftLayer exposed services
to provide a view of the
client’s environment.
industry leading SaaS and
IaaS offerings.
new cloud data centers
planned for 2014, bringing
global total up to:
developers contributing to
open-standards projects as a
founding member of OpenStack.
Cloud-based patents.
Cloud experts.
24. IBM Bluemix: developers’ expectations have evolved
2
4
Failing
Fast
Seconds to
Deploy Friction
Free
Any
Language
Continuous
Integration
Mobile
Ready
Focus on
Code
Choice of
Tools
Useful
APIs
31. STRATEGIC IMPERATIVE
3. Enable “systems of engagement” for
enterprises. And lead by example.
WHAT WE SEE SHIFTING
Social. Mobile. Data.
Together they are
empowering people with
knowledge, enriching
them through networks
and spawning
expectations for real
value in return for
their information, with
enterprises they trust.
of Millennials say social and
user-generated content has
an influence on what they buy.
57% of companies in 2014
expect to devote more than
25% of their IT spending to
systems of engagement.
(Almost double the investment
one year ago.)
CONSIDER:
of smartphone users check an
app as soon as they wake up.
of U.S. adult smartphone
users keep their phones
with them 22 hours per day.
The response time users expect
from a company once they have
contacted them via social media.
of individuals are willing
to trade their information for
a personalized offering.
of U.S. adults say they would not
return to a business that lost their
personal, confidential information.
2x
57%
8IBM CONFIDENTIAL 2014
of upside potential in online
retail sales if buyers trust more.
of Boomers agree.
as many people in 2013
were willing to share their
geolocation data in return
for personalized offers compared
to the previous year.
$1T
2/3rds
84% 5mins.
4/5ths 80%
84%
70%
32. THEREFORE IBM IS:
We are enabling “systems of engagement” for
enterprises. And leading by example.
OUR POINT OF VIEW:
A systematic approach to
engagement is
now required.
Speed and
responsiveness
Personalize
interactions
Earn the
right through
security
8
6,000
companies
acquired in
mobile.
companies
acquired in
security.
69%year-to-year revenue
growth in Mobile.
year-to-year revenue growth
in Social Business.
25.
10security operation
centers globally.
billion security events
monitored daily in 130 countries.
2,800+.
19%year-to-year revenue
growth in Security.
4,300+
IBM AS AN EXAMPLE
Gartner positions IBM as a leader in
its Magic Quadrant for Social
Software in the Workplace.
IBM Social and Digital
Analytics applies behavioral
sciences and analytics,
supported by IBM GBS.
Top banks globally use IBM
Security Solutions—7 of the
top 10 in the US, 9 of the top 10 in
UK and 2 of the top 4 in Australia.
60% of Fortune 100
companies are using IBM’s
social business solutions.
200,000
MARKET IMPACT
9
Sales Connect:
100% of sellers transitioned.
Client Collaboration Hubs:
30,000 IBMers collaborating.
Kenexa as a centerpiece
acquisition in social.
IBM CONFIDENTIAL 2014
INVESTMENT EXPERTISE
45%
INTELLECTUAL CAPITAL
15
12
PORTFOLIO
3,000
patents in social, mobile
and security. security labs globally
social business experts,
including 200 behavioral scientists
security professionals.
mobile development and delivery
professionals—added more than
1,000 in 2013 alone.
social communities.
39. No Engagement without Enterprise Security
governance
QRadar
Trusteer
Identity and Access
Management
InfoSphere
Guardium
AppScan
Network and
Endpoint Protection
IBM X-ForceMonitor and evaluate today’s threats
Detect, analyze, and prioritize threats
Reduce fraud and malware
Manage users and their access
Discover and harden valuable assets
Secure critical business applications
Protect infrastructure against attacks
The IBM Security Framework
Our first imperative – data.
Data - Data is becoming the world’s new natural resource. Data is fueled by the proliferation of devices and the infusion of technology into all things and processes. We saw this first, and understood how it is fundamentally changing business.
How do we know this shift is happening?
There are a lot of statistics out there – these stats speak for themselves.
Our POV: Data is the new basis of competitive advantage. Therefore, IBM is making markets by transforming industries and professions with data. We believe our strategy is correct because of what we see happening in the world.
So what matters most to enterprises in data?
Here’s how we see it: if you really want the value of data, you need to apply more sophisticated analytics across more disparate data sources and more parts of your organization.
Second, time matters. So the time value of data + insights, speed, of course, we're laying pipe here for things like our stream technology.
And third, Watson has arrived and is revolutionizing data -- bringing cognitive capabilities.
Because of what is happening in the world, and what matters most to enterprises, IBM is making strategic moves and investments.
We are making investments in development, acquisitions and in Watson. We are building skills, expertise and I.P and driving results.
Look at the numbers here: The investments, 24 billion. Companies we've acquired and also internal organic development. People, technology. Companies, capabilities.
Organizations serious about maximizing the value from Twitter data need to combine this information with existing enterprise data and with other external information sources.
And they need to apply what they learn well beyond its conventional uses in the marketing department.
By doing so, they will harness the voice of the individual to transform processes across their organization. For example:
Product Research and Innovation – Twitter data gives insights into the unmet needs of millions of individuals. New product ideas and enhancements to existing products can be interpreted from this information. Organizations can understand whether the products they’ve designed are working and being used as intended.
Operations – Twitter provides a real time lens into demand for products and services. Combined with internal information on production schedules, inventory placement and demand forecasts, Twitter data can become a valuable additional demand signal, enabling organizations to be more efficient in what they make, how they ship and manage inventory and, ultimately, delivering better customer satisfaction.
Voice of customer – using Twitter, the needs and concerns of individual customers can be understood and responded to. By combining Twitter information with existing enterprise information a deep understanding of the customer can be built, creating opportunities for better service, more focused marketing and greater likelihood of customer retention.
Behavior Driven Science - using Twitter organizations can understand customer service issues quickly and, by combining Twitter data with other enterprise information, take corrective actions quickly and effectively.
6. Talent Acquisition – With the death of the traditional resume and the rise of the internet as an active resume and reference base, Twitter data can deliver deep insights into employees and potential employees. It can help identify the causes of, and tackle, employee disengagement and can help in the hunt for new talent.
We are announcing a landmark partnership with Twitter that will transform how businesses and institutions understand their customers, markets and trends – and inform every business decision. The alliance brings together for businesses Twitter data that uniquely presents the voice of the individual and IBM’s industry-leading cloud-based analytics platform.
Integration of Twitter data with IBM analytics services on the cloud: IBM plans to offer Twitter data as part of select cloud-based services; including IBM Watson Analytics, a new cognitive service in the palm of your hand that brings intuitive visualization and predictive capabilities to business users; and a cloud-based data refinery service that enables application developers to embed data services in applications. Entrepreneurs and software developers will also be able to integrate Twitter data into new cloud services they are building with IBM’s Watson Developer Cloud or IBM BlueMix platform-as-a-service
New data-intensive capabilities for the Enterprise: IBM and Twitter will deliver a set of enterprise applications to help improve business decisions across industries and professions. The first joint solution will integrate Twitter data with IBM ExperienceOne customer engagement solutions, allowing sales, marketing and customer service professionals to map sentiment and behavior to better engage and support their customers;
Specialized enterprise consulting: IBM Global Business Services professionals will have access to Twitter data to enrich consulting services for clients across business. Additionally, IBM and Twitter will collaborate to develop unique solutions for specific industries such as banking, consumer products, retail, and travel and transportation. The partnership will draw upon the skills of tens of thousands of IBM Global Business Services consultants and application professionals including consultants from the industry’s only integrated Strategy and Analytics practice, and IBM Interactive Experience, the world’s largest digital agency.
As part of the alliance, The Weather Company will shift its massive weather data services platform to the IBM Cloud. It turned to IBM's Softlayer platform because IBM is the leader in combining the core competencies of cloud computing, IoT, data and analytics, translating those competencies into better decisions. Specifically:
1. IBM and WSI will enable easy integration of historical and real-time weather data in business operations and decision-making with IBM Analytics platforms like Watson Analytics. The companies will jointly develop industry solutions for insurance, energy & utilities, retail and logistics among others, globally.
2. Entrepreneurs and software developers will be able to rapidly build mobile and web apps that take advantage of WSI data combined with data from operational systems, connected devices and sensors using advanced analytics through Bluemix, IBM’s cloud app development platform.
3. IBM will train thousands of consultants to take advantage of WSI data in IBM’s Business Analytics and Strategy practice that unites deep analytical and industry expertise from across IBM Global Business Services.
4. An alliance with IBM enables WSI to continue to scale the delivery of its forecasts across geographies and into more industries.
5. IBM and The Weather Company are committed to public-private alliance. Together, we are helping to build better decision tools for businesses that are additive to, but not competitive with, government weather services.
6. By combining IBM’s cloud computing, industry consulting and analytics expertise with precision weather data and forecasts, the two companies can now help entire industries operationalize understanding of the impact of weather on business outcomes and take action systemically to optimize those parts of their businesses.
IBM uniquely brings to the alliance:
Access to clients, industry knowledge and expertise.
Leading edge Analytics platforms and solutions.
Leading edge cloud and mobile development platforms and tools.
Sound Bite: WeatherMeansBiz - We are forging an alliance to bring together the best weather data with the best analytics and cloud capabilities.
IBM Watson Analytics is the new cloud service provides unparalleled advanced analytics for everyday knowledge workers in your business. Watson Analytics can make sense of all kinds of data, drawing out insights you never knew were there. It's all about finding out what matters most to your business.
No longer do you need to ship off a question to the data scientist team in an organization, if there even is one. Watson Analytics combines Cognitive, Natural Language exploration, predictive, smarter data discovery and visual story telling all into one service. This means that business users can mine the information, see predictive correlations, and share more context to their most complex questions.
With this new alliance users can now access not just their data, but also data from WSI to see how weather has effected an organization and more importantly more accurately forecast impact.
In the energy and utilities example here, you can see that we can understand what drives renewable generation, what impact the weather forecast may have and drive many benefits into the industry - such as a more reliable smart grid; targeted residential and commercial opportunities for generation solutions; understand the potential generation needs based on weather - historical and real-time; others?
Additionally, since IBM Analytics also has an alliance with Twitter, companies can now add Weather events/tweets + forecast + deep historical trend analysis and align to better strategic outcomes
Hello.
Watson is a story about people and human expertise, and what we’d like to talk to you about today is exactly that; the ways in which Watson works to enhance, scale, and accelerate the human expertise within your organization.
We’ll begin with a discussion on how humans think and learn, and how our cognitive process works. We’ll then talk about the making of professionals and expertise and how Watson scales that value across your business, and finally, how you can get started with Watson.
Our next strategic imperative: Remake enterprise IT for the era of cloud.
Cloud is transforming IT and business processes with digital services
We know this shift is happening. Consider:
It's not just virtual machines and all those kinds of things. Apps are here. APIs are here. Composable business services are here. The market opportunity is undeniably important to us.
Together, abundant bandwidth, the emergence of standards and the demand for consumability are transforming both IT and business processes into digital services—the cloud. Enterprises worldwide are increasingly relying on cloud-based services. By 2016, we believe more than one-fourth of the world’s applications should be available in the cloud, and 85% of new software is now being built for cloud.
Some sources estimate that the cloud segment could grow to more than $250 billion by 2015.
Is Cloud ultimately about new economics and new options for buying IT? That is part of it … but we believe that Cloud is ultimately about new business models.
Enterprises will have to integrate the front–end (the new, the mobile apps) to the back-end systems. This is creation of new banking apps, mobile apps, HR apps. It will be new ways to build skills via mobile. All those innovative mobile apps will have to hit those back end systems (whether they're private clouds or the established data centers.)
Based on what is happening and what matters most to enterprises, we have been making strategic moves and investments and we are positioned to lead Cloud for this new era.
IBM will work with developers to support new open development models that share API. The new models emerging from the API economy will transform businesses and entire industries – triggering new ecosystems and digital supply chains.
Second, you will desire (even be required to) manage the cloud environment with the same rigor and qualities as if it was on premise. Data management will be the most important design point for enterprise cloud environments.
And as always, data matters. Where is it? Who can access it? Is it secure? Auditability, visibility, control. If you understand this, you understand why we have been doing what we've been doing, and you can see here, the investments, the people, the acquisitions, up and down that whole spectrum of cloud as we described it, our intellectual capital and the market impact of our clients and our growth.
The instant power and speed of cloud has brought about new expectations for building applications on it.
Developers now expect:
To be able to deploy updates to their applications in seconds
To write their code in whichever tool or language they choose
Each has its own distinct “personality” and followings of developers have evolved around each of these
To be able to continually integrate working copies of code into a shared mainline at multiple points during the day
To focus on writing code, not on the administration of servers, virtualization, operating systems, and middleware.
To “fail fast” - or ensure applications fail immediately and visibly to speed debugging and fixes
To integrate useful APIs into their applications - who wants to write code that’s already been written and tested?
To build applications that are mobile ready - as users today expect their experience to be tailored to whatever device they happen to be using.
Bluemix is built on top of IBM’s infrastructure as a service offering - SoftLayer. It embraces Cloud Foundry as an open source platform as a service and extends it with IBM, third party, and community built services.
Explain Diagram (verbs in blue - please use this terminology)
Start by Pushing your code through Cloud Foundry
Cloud Foundry interprets which language you’ve used and associates your code to the appropriate runtime - now you have a working app (layer above runtimes).
Your app can
Pull prebuilt services (IBM, 3rd party, or community built) in from the marketplace and utilize their functionality
Connect to traditional IT - aka “Your Systems” with a secure connector
Connect to other clouds that you utilize with a secure connector
All of this sits on infrastructure (networking, storage, servers) hosted by IBM Softlayer (IBM’s IaaS cloud offering)
Finally - when your app is built and ready to go, it can be accessed by anything with a web browser and a connection to the internet, a smartphone app (via the Bluemix SDK) to utilize backend services, or another type of app or system (via an API you create).
Our third strategic imperative: Enable systems of engagement. This is not just another technological phenomenon fueled by social and mobile and the advent of data and knowing alone.
It's really about changing the way we engage, and the relationship with individuals – citizens, workers, patients and more… between social, mobile and security, together.
We know this shift is true …consider the evidence on this slide …
Among the effects are significant increases in the need for speed, understanding and trust.
So what does this mean for enterprises… IBM’s POV on what matters most:
1) You need to use mobile and social to increase speed and responsiveness. You'll want to personalize every meaningful interaction.
2) In this world you have to know me. And meet me. You need to know even my spouse.
3) You need to continuously earn the right of customers and this is the interplay between privacy, security and trust.
And again, we have been positioning ourselves to lead.
Capabilities, investments, acquisitions, intellectual capital and market impact and the one on the lower right, I think we're going to get a lot of attention over this the next couple of years, we are going to be a leader in this space through our own use of mobile, social data. What matters: Trust, security and the promise of data.
Our process is specialized even further by our distinct capabilities.
All of our capabilities and services work together to form one, client-focused IBM dedicated to the success of your business.