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Automation Lunch & Learn § Welcome § Kristi Schaffner WW Channel Marketing 2004 Marketing Automation Lunch & Learn § Welcome § Kristi Schaffner WW Channel Marketing 2004 Marketing Programs Scott Cooper Vice President, WW Channel Marketing § Automation Business Partner Opportunity David Rice Program Manager, Automation § Lunch and Learn Schedule § Question / Answer Panel 1

Business Partner 2004 Marketing Programs Scott Cooper Vice President, WW Channel Marketing Business Partner 2004 Marketing Programs Scott Cooper Vice President, WW Channel Marketing

Turn e-business on demand into Customer Demand 3 Turn e-business on demand into Customer Demand 3

BP Desired Level of Participation BP participation in “Big Play” programs “Big Play” Sales BP Desired Level of Participation BP participation in “Big Play” programs “Big Play” Sales & Mktg Materials Participation in “Big Play” fast start quick pipe builders • Executive Assessment • Shared comktg funds available to qualified BPs • Campaign Designer • Agency assistance avail PWS Value Pack Partner Plan Participation in local “Big Play” co-mktg events & campaigns: • Shared comktg funds available to qualified BPs • Agency assistance avail • Lead mgmt Certifications, Mktg Results 4

Plan your move - build a Partner. Plan §Where you want to play §How Plan your move - build a Partner. Plan §Where you want to play §How much you want to sell §How much you want to earn §Brand specialties, skills §Solution & industry focus §Co-marketing participation §Resources, milestones & performance tracking 5

IBM Automation from A to $: The Future is Now David Rice Program Manager, IBM Automation from A to $: The Future is Now David Rice Program Manager, Automation IBM SWG 6

Agenda § Automation – what it is and why you should care § Tools Agenda § Automation – what it is and why you should care § Tools and support you need § Customers are Automating today § Get on board – next steps 7

Delivering Automation through the On Demand Operating Environment Integration Infrastructure Management • Automation/Virtualization • Delivering Automation through the On Demand Operating Environment Integration Infrastructure Management • Automation/Virtualization • Availability • Security • Optimization • Provisioning • Infrastructure Orchestration • Business Service Management • Resource Virtualization of Servers, Storage, Distributed Systems/Grid and the Network 8

What is Automation? Automation is the ability to dynamically take action to make better What is Automation? Automation is the ability to dynamically take action to make better use of assets, reduce cost, and increase availability and resiliency to achieve business goals. Business Service Management Infrastructure Orchestration Availability Security Optimization Provisioning 9

Defining the Capabilities Automation enables an on demand business model Availability Helps ensure the Defining the Capabilities Automation enables an on demand business model Availability Helps ensure the health and appropriate functioning of IT Security § 27 -32% savings triage time § 25 -35% higher first call close rates Optimization Helps ensure the most productive utilization of IT § 35 -40% reduced admin time § 35 -40% reduced access time Provisioning Senses, triggers , responds according to business goals. §Increase resource utilization from 20% avg. to as high as 50% § 30 -40% reduced admin time Makes available right resources to right processes and people § 15 -35% reduced capital outlay § 25 -30% reduced staff req’ts § 20 -25% greater utilization § 40 -50% fewer batch restarts Orchestration Helps ensure information assets, confidentiality and data integrity are protected BSM Manage using business priority, manage service levels § 40 -50% savings in SLA reporting § 15 -30% savings on time for root cause determination, downtime 10

Automation: From Products to Complete Offerings & Services BSM § Tivoli Business Systems Manager Automation: From Products to Complete Offerings & Services BSM § Tivoli Business Systems Manager § Web. Sphere Business Integration Family § Tivoli Service Level Advisor § DB 2 Intelligent Miner Security § BRMS for OS/400 § IBM Enterprise Identity Mapping § Tivoli Identity Management Family § Tivoli Storage Manager Family § IBM Tivoli Directory Server § IBM Tivoli Directory Integrator § Embedded Security Subsystem, a Think. Vantage Technology Provisioning § Tivoli Provisioning Manager § Tivoli Configuration Manger § Tivoli Identity Manager § Web. Sphere Application Server Enterprise Edition § Image Ultra, a Think. Vantage Technology Availability § Tivoli Monitoring Family § Tivoli Enterprise Console § Tivoli Storage Area Network Manager § Tivoli Management Portal § DB 2 Automation Tool § Tivoli Monitoring for Transaction Performance § Web. Sphere Application Server Network Deployment § DB 2 Recovery Expert Optimization § Tivoli Performance Modeler § Tivoli Storage Resource Manager § Tivoli Decision Support for OS/390 § Web. Sphere Edge Server § Web. Sphere Application Server for z/OS § Tivoli Storage Optimizer for z/OS § DB 2 Performance Expert § DB 2 SQL Performance Analyzer § Lotus Workplace § DB 2 Parallelism with SMP Orchestration § Tivoli Intelligent Think. Dynamic Orchestrator § Intelligent Infrastructure Management Offerings § IBM Web Infrastructure Orchestration 11

Automation addresses customers’ top 3 concerns According to customers the following capabilities are critical Automation addresses customers’ top 3 concerns According to customers the following capabilities are critical for their business: Optimize Resources § Only 15% of resources are utilized today § 92% of processes are done manually § High labor costs Increase Business Agility § CEO priorities shifting — from cost containment to growth § 47% indicate that automating core processes is critical § 50 -66% have service level agreements in place with 72% being manual … and reduce costs! § 63%+ reducing IT costs is top priority this year Manage Complexity § 51% have flexibility as top priority § 80% IT management effort is spent on diagnosis Sources: ebusiness on demand Attributes and capabilities study, Autonomic Study, Blueprint market drivers study, Tivoli Customer Study 12

Automation strategy evolves IT Focus Business Focus Element Management IT Service Management • Manual Automation strategy evolves IT Focus Business Focus Element Management IT Service Management • Manual processes • Reactive and tactically aligned • Resource intensive On Demand Management • Automated best practices • Proactive and Predictive • Automated provisioning • Autonomic, self managed environment • Dynamic provisioning Autonomic Adaptive Predictive Managed 5 4 3 2 Basic 1 Levels of Automation 13

Why should you care? Because. . . You can make money! Automation Market is Why should you care? Because. . . You can make money! Automation Market is $25 B in 2004! IBM has leadership in Automation and on demand 14

Business Partner profitability Reality Research & Consulting conducted a report analyzing Business Partner profitability Business Partner profitability Reality Research & Consulting conducted a report analyzing Business Partner profitability when they engage with IBM software A few of the results include: § IBM provides an excellent return on a Business Partner’s overall investment. IBM Business Partners, on average, report a 9 to 1 ratio of profit dollars to investment dollars. § IBM provides a 21 X sales multiple. For every dollar a customer spends on IBM middleware, an additional $21 is spent by that customer on related software, hardware, and services purchases. § IBM certifications provide a significant ROI. Each dollar spent in training yields $345 in revenue. 15

Automation Market is $25 B in 2004 Opportunity (in $Billions) 16 Automation Market is $25 B in 2004 Opportunity (in $Billions) 16

Business Partner value proposition For Resellers looking to provide “sense and respond” automation capabilities Business Partner value proposition For Resellers looking to provide “sense and respond” automation capabilities to customers to dynamically adapt their IT environment to meet their business priorities, IBM provides industry-leading, standards-based Automation software and technical expertise that allow you to bring automation-based solutions to an emerging market requiring business agility, optimization of IT resources and the management of IT risk and complexity. 17

Business Partner value proposition For ISVs + SIs looking to provide “sense and respond” Business Partner value proposition For ISVs + SIs looking to provide “sense and respond” automation capabilities to customers, to dynamically adapt their IT environment to meet their business priorities, IBM provides industry-leading, standards-based automation software and technical expertise that can help reduce time to market for new, differentiated Automation offerings. This allows you to bring your solutions to market faster than your competitors and respond more quickly to changing market opportunities. 18

Orchestration and Provisioning Automation Library (OPAL) The tools and community that business partners need Orchestration and Provisioning Automation Library (OPAL) The tools and community that business partners need to build their business around on demand automation Announcing! OPAL W NE Business Partner Value: § Workflow Resource Kit § Automation Catalog Business Partner Value: § Make Profit § Worldwide Innovation Centers and Education § Validation § Demand Generation § Deliver On ü Make Profit. Demand Automation ü Deliver On Demand § Automation Decrease Operating Costs ü Decrease Operating Costs 19

How Do You Play in OPAL? By Creating Workflows! What is a Workflow : How Do You Play in OPAL? By Creating Workflows! What is a Workflow : A logical sequence of steps to install, configure and deploy a given resource and associated dependencies. Traditional Scripts IT Service Management Workflows 1. Time consuming to build and maintain 2. Infrastructure changes require script updates (i. e. hard-coded) 3. Requires manual monitoring 1. Reusable and GUI based 2. Dynamically leverages data center model 3. Automated sense and respond Delivering Business Value: Capturing IT expert know-how and dynamically executing processes in response to changing business requirements Workflow Example: Publish an application in a Citrix environment Determine host name of target server Dynamic Roll Back Reusable Retrieve Citrix application ID specific to the software package to be published Get Citrix installation manager server ID Automated Pass information to Citrix application utility tool 20

The Orchestration And Provisioning Automation Library Join the OPAL Team ! 21 The Orchestration And Provisioning Automation Library Join the OPAL Team ! 21

Customers have knowledge of solutions before you get in the door “Orchestration” print ad Customers have knowledge of solutions before you get in the door “Orchestration” print ad “Tiffany”online ad Targeted information at the right time Customers like you Automate on demand Customer References Virtual City (new e. BAY) & Automation Assessment Tool Event/Web Casts and Executives on demand IT Optimization Reduce Complexity Become Agile Reduce Costs Demos & Tools White Papers: Analyst, ITIL, Automation 22

Driving Demand - Advertising Customers have knowledge of solutions before you get in the Driving Demand - Advertising Customers have knowledge of solutions before you get in the door 4 Automation ads in 2004 Leadership April Business Agility June Optimizing Resources August Managing Complexity October (Print + interactive) Become Agile Optimize IT Resources Manage Complexity Reduce Costs US in mkt dates; other Geos +6 wks 23

Driving Demand – Direct Marketing Awareness. . 4 Automation ads planned for 2004; Automation Driving Demand – Direct Marketing Awareness. . 4 Automation ads planned for 2004; Automation Leadership begins April Gartner Symposium, Mar 30 – Apr 2: premier sponsorship Peds by Auto subthemes; also includes Total. Storage + Autonomic peds Become Agile §Consideration Optimize All GEOs executing Automation tactics IT Resources Program deliverables in-market today Manage §Preference Complexity Automation Product Guide offered with Intro Pack META Group analyst report being used as offer for Business Agility Kit Reduce Costs § 24

How we’re supporting you § Monthly Lunch and Learns 4 Introduction to Automation scheduled How we’re supporting you § Monthly Lunch and Learns 4 Introduction to Automation scheduled for March 2004 § Lunch and Learn CD-ROM 4 Will feature all six of the core IBM Software Group plays § IBM Software Group Channel Ad Campaign 4 Publications: CRN and VAR Business 4 Runs June through December 2004 (U. S. only) 4 Print and on-line placements § Teleconferences 4 Hear from the experts 4 Hear from your peers 25

IBM Automation Launch - Key Worldwide Events – 1 H 04 IBM Identity Summit IBM Automation Launch - Key Worldwide Events – 1 H 04 IBM Identity Summit Victoria, Canada April 27 - 28 IBM Identity Summit Rome, Italy April 21 - 23 EMEA Launch Cities Cross ebod event & Automation Seminars Q 2 – Q 4 EMEA, Giga. World, Barcelona, June 7 - 9 IBM Software World, Tokyo, Japan May 17 - 19 OPAL Announcement Ce. BIT, Hannover, March 18 - 24 AP Launch Cities Q 2 – Q 3 OPAL & BPM Announcement Las Vegas, NV Feb 29 – March 3 Gartner Spring Automation VSP, San Diego, CA Mar 29 – April 2 Automation Launch Americas Giga. World, Florida May 17 - 20 26

Business Partner Zone §Program Overview §Marketing materials §Co-marketing §Enablement maps and information 27 Business Partner Zone §Program Overview §Marketing materials §Co-marketing §Enablement maps and information 27

Automation Sales Tools …help you identify opportunities Use the Automation Assessment Tool to establish Automation Sales Tools …help you identify opportunities Use the Automation Assessment Tool to establish a technology strategy Use the Automation Selling Tool to establish a product strategy Use the Presentation Wizard to build custom presentation Use the ROI Analyst to detail the ROI 28

Automation Sales Tools Technology Strategy for Automation, Security and Storage § Automation Selling Tool Automation Sales Tools Technology Strategy for Automation, Security and Storage § Automation Selling Tool Product focused Assess “maturity” IBM product recommendations o Improving IT Operations 1 Basic § on demand Management IT Service Management Element Management Improving Business Operations 2 Manag ed 1 Predic tive Adapti ve 2 Autono mic Automation Assessment Tool Focus on processes, skills, products Assess “readiness” Recommendations for improving all areas 29

Automation Sales Tools Articulating Solution Value § Presentation Wizard Product focused Automatically builds “customer Automation Sales Tools Articulating Solution Value § Presentation Wizard Product focused Automatically builds “customer ready” presentations Access to the latest presentations § ROI Analyst Tool Focused on the unique value of Automation offerings Products are individually represented Value metrics are updated at each Launch 30

Self-study: The Automation Assessment Tool http: //www-1. ibm. com/partnerworld/pwhome. nsf/weblook/tac_sel_ssaat. html Audience: Anyone desiring Self-study: The Automation Assessment Tool http: //www-1. ibm. com/partnerworld/pwhome. nsf/weblook/tac_sel_ssaat. html Audience: Anyone desiring knowledge about the Automation Assessment Tool. Description: The Automation Assessment Tool (AAT) is an enhanced version of Autonomic Computing Value Assessment Tool (ACVAT) which was deployed in 1 Q 03. Like the ACVAT, the AAT is intended to help customers assess the maturity of their existing autonomic capabilities and to help guide the development of their autonomic computing strategies. Specific insights and recommendations are provided in six key operational areas that are fundamental to autonomic computing, including a high level view of the potential business value. The results from the assessment will help communicate the value for customers to purchase IBM products and services. Prerequisites: You will need access to the Internet. If you have not done so already, you will be asked to register for Partner. World University before accessing the workspace where the Colleges are located. 31

Others are Achieving Automation Benefits Today Optimize Resources IBM automation helps our systems stay Others are Achieving Automation Benefits Today Optimize Resources IBM automation helps our systems stay responsive, and when problems do arise, we can get systems back up and running quickly. —Glen Barry, UPS Increase Agility IBM delivers continuous, effective and stable IT operations and IBM’s approach to automation results in optimized operational and business value for Sanyo. —Yamada, Manager, SANYO, Japan Manage Complexity The capabilities of IBM automated identity provisioning enables us to provision access correctly, control access rather than just grant it and do it all in a way that is auditable but flexible in allowing us to bring on new users quickly. —Garry Kolb, Oppenheimer Funds Reduce Costs IBM (Tivoli) software helped Prudential Financial intelligently automate its systems to reduce downtime by 40%. And, realize a $3. 4 million ROI in 8 months. 32

What should you do after leaving this session? 1. Determine how you can leverage What should you do after leaving this session? 1. Determine how you can leverage the Automation imperatives § Deepen your knowledge of IBM Automation § Know solutions, competition, value 2. Assess your current skill base § Build-out Automation expertise 3. Focus on the customer § Understand their pains § Map IBM Automation software solutions to meet their pains 33

Helpful URLs § Partner. World for Software / Partner Zone Automation Marketing Materials: https: Helpful URLs § Partner. World for Software / Partner Zone Automation Marketing Materials: https: //www 100. ibm. com/partnerworld/software/pwswzone. nsf/docs/DGS H-5 UANMA? opendocument (enter userid & password) § IBM On Demand - Automation www. ibm. com/software/info/openenvironment/automation. html § Tivoli Knowledge Center online: www. ibm. com/software/tivoli/partners 34

Lunch and Learn Series: § 25 March – Automation § 6 May - Small-Medium Lunch and Learn Series: § 25 March – Automation § 6 May - Small-Medium Business (SMB) § 11: 00 am – 12: 00 pm Eastern § Toll free within the US: 800 -210 -9006; § Direct dial: 1 -719 -457 -2621 § Passcode: 530043 § 11: 00 am – 12: 30 pm Eastern § Toll free within the US: 800 -231 -9012 § Direct dial: 1 -719 -457 -2617 § Passcode: 740259 § 8 April – People Productivity § 20 May - Software Development § 11: 00 am – 12: 00 pm Eastern § Toll free within the US: 800 -946 -0741; § Direct dial: 1 -719 -457 -2649 § Passcode: 528642 § 22 April – Integration + Think Thursday § 11: 00 am – 12: 30 pm Eastern § Toll free within the US: 800 -946 -0705; § Direct dial: 1 -719 -457 -2637 § Passcode: 626434 + Think Thursday Platform § 11: 00 am – 12: 00 pm Eastern § Toll free within the US: 800 -946 -0712 § Direct dial: 1 -719 -457 -2641 § Passcode: 124242 § 3 June - Install Base + Think Thursday § 11: 00 am – 12: 30 pm Eastern § Toll free within the US: 800 -231 -9012 § Direct dial: 1 -719 -457 -2617 § Passcode: 704247 The entire series will be available on CD from IBM Publication Ordering Early Q 2 “Program In a Box” 35

Introducing Think Thursday § When Thursday 22 April 2004 at 11: 00 a. m. Introducing Think Thursday § When Thursday 22 April 2004 at 11: 00 a. m. EST/4: 00 p. m. GMT § Agenda Presentation “Making Money with Web. Sphere” will cover: Comprehensive overview of Web. Sphere capabilities and qualities Current market dynamics Proof points showing the Web. Sphere value proposition and business value for Business Partners § Speaker Sunil Soares, Business Unit Executive, Web. Sphere Worldwide SMB &Channel Sales § Logistics Call in info: US/Canada 800 -946 -0705, Toll International: 719 -457 -2637 Passcode: 626434 § For additional program information For more information on this event or future calls, visit the Virtual Information Center at www. ibm. com/partnerworld/vic. Detailed Think Thursday program information will be included in the Sales and Marketing section under Sales Enablement -> Events. 36

Calling All SMB Business Partner Customer References § Highlight your Success via the IBM Calling All SMB Business Partner Customer References § Highlight your Success via the IBM Customer Reference Program § Submit yours today! Available on the BPZone home page (in shortcuts list) Benefits to you: Increased credibility with your existing and prospective customers Opportunity for various joint IBM press and marketing opportunities § Benefits to your customer: Opportunity to be seen as an industry leader. Potential to drive more business 37

Questions & Answers 38 Questions & Answers 38