Tivoli Live 2006 1 IBM IT Service Management

Tivoli Live 2006 Room Time Agenda Item Speaker 9: 00 -9: 30 Coffee Fairclough 9: 30– 9: 45 Welcome and Introductions Sean Bergin, UKISA Tivoli Brand Executive Andrew Cunningham, UK Tivoli User Group Fairclough 9: 45– 10: 45 IT Service Management - Business trends & strategy Al Zollar, General Manager, Tivoli Software 10: 45– 11: 15 Coffee Fairclough 11: 15 -11: 45 A customer’s view of real business issues Steve O’Donnell, Global Data Center Director BT Fairclough 11: 45 -12: 15 IT Service Mgmt - unifying automation, security & storage Norman Wilkinson, ITSM UKISA leader 12: 15 -13: 15 Lunch & optional penalty shoot out ! – followed by break out sessions 13: 15 -14: 30 Data Centre Automation – Launches & business update Joergen Krog, Tivoli NE IOT Automation Leader Nick Drabble, Head of Automation Software, UKISA Storage – Launches & business update Ian Hancock, Storage Business consultant, EMEA Steve Cliff, Head of Storage Software, UKISA Fairclough Security – launches & business update Casey Plunkett, WW sales, Security Stephen Swann, ACI Manager, NAG Heathcote (H 002) z. Series update Mark Fallon, Tivoli NE IOT Automation Leader Cooper (H 015) Stag (H 013) 14: 30 -14: 45 Cooper (H 015) Fairclough Change over break / coffee 14. 45 -15: 45 Process driven IT Service Management Norman Wilkinson, ITSM UKISA leader Storage Operations Management incl. TPC & TSMX demos Steve Strutt, Tivoli Storage Management consultant Identity and Access Management incl TIMX demo Srdjan Ljubisavljevic, SW Technical sales specialist z. Series end-to-end Enterprise technical update Stephen Fergusson, SW Technical sales specialist Heathcote (H 002) Stag (H 013) 15: 45– 16. 00 Change over – back to Auditorium / coffee Fiarclough 16: 00 -16: 15 Wrap up / Take of the day Sean Bergin, UKISA Tivoli Brand Executive Fairclough 16: 15 -16: 45 Pre-match discussions with guest speaker in Auditorium Harry Redknapp 16: 45– 17: 00 Guest move to – IBM Hursley clubhouse 17: 00 -18: 30 Football & BBQ 3 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 4 IBM IT Service Management © 2006 IBM Corporation

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 § Technology Available Today § Introducing Micromuse and Netcool § Next Steps on Your IT Service Management Journey 6 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 1 H 2005 Announced The Journey So Far – Executing on Our Strategy IBM’s New S 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 7 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 8 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 9 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 10 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! 11 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 12 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 13 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 Higher Quality Increased Costs and Customer Revenue Satisfaction Source: IBM Global CEO Survey, Jan. 2006 14 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 15 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: Systems customer. Test! 85% § Customers become the IT Systems Test Team Source: Tivoli Primary Research 2005 16 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 18 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 19 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 20 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 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! 21 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 22 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 23 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 24 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 Service Deployment Information Management Business Resilience Release Management Process Manager Storage Management Process Manager Service Continuity Management Process Manager Change and Configuration Management Process Manager Asset Management Process Manager Available in June 2006! 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 25 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 26 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 27 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 28 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 29 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 IBM IT Service Management © 30 Event Consolidation - Enhances monitoring, correlation and business service 2006 IBM Corporation § 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 31 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 32 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 33 IBM IT Service Management © 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 34 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 35 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 36 IBM IT Service Management © 2006 IBM Corporation

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IBM Tivoli Live Steve O’Donnell Global Head of Data Centre & Bridge Operations BT plc

BT isn’t (just) a Telco anymore • A major player in Data Centre Services • A major player in transformational outsourcing • Thought leadership in the telco space with our £ 10 B 21 C investment • BT Vision competing with BSky. B • BT Global Services transact more business that we sell switch minutes Source: Gartner (April 2006)

BT Global Data Centre Capability • 52 Data Centres Globally – 26 Data Centres in the UK – 5 Data Centres in the US – 13 Data Centres in Asia Pacific – 10 Data Centres in Europe • 750, 000 ft 2 of technical space • 150 MW of electrical power – • Same again for cooling • £ 100 M electricity bill • Largest Operational Bridge in Europe • Full capability from simple element monitoring to full service view • Manage internal and customer systems simultaneously • 34, 653 elements under management • 982 applications • Multi vendor – MVS to Linux

Convergence • The convergence of the network and computer has happened • In the BT 21 st Century Network – the computer is the network • Moved from • IT is at the centre of the business, to • IT is the business • We are developing an SDK for our network - Web 21 C • BT is gradually transitioning into a software company It’s all becoming software. Will software players aggregate the networks faster than the network players develop the software?

The Challenge • Before 21 C we had network multiplexers – All hardware – little or no firmware – A stable 25 year investment – Scale by multiplexing and adding fibre and boxes – seamless and modular – Growth predictable and steady • As 21 C rolls out we have computers and routers and switches – We have firmware, OS, software, patches version updates – At best a 10 year investment – Scale by adding fibre and boxes and software reconfiguration – Growth explosive and unpredictable – Huge price erosion – cost challenge

The Results • • • Death by complexity Data Centres filling up at an alarming rate Numbers of servers escalating out of control Numbers of configurations escalating out of control Impossible to manage IT infrastructure IT becomes unaffordable

Fundamental Requirements • Zero Touch – – – Automated build and patch Automated scale out and scale in Infinitely scalable Repeatable Automated CMDB • Cheap – – Commodity components SATA Disks Intel / AMD Linux & Open Source • Monotonously Reliable – Fault tolerant and self healing – Dark Data Centre operation – Build availability into the network • Fast to Market – Use third party building block components – SVC, TPC, Ops. Ware etc. .

The BT Answer - Virtual Service Unit (VSU) • A massively standardized, multi-entity, real time architecture: deploy a server architecture that allows for real time scaling in an always on 24/7 environment enables the platform • Merciless standardisation, reduced number of choices, much cheaper, Global Catalogue. Mass back-end simplification, platform for mass software customisation • Intelligent Infrastructure, one virtual data centre. Knows properties of applications e. g. latency, co-existence and how to stop, start and scale on the fly • Instant-on provisioning, virtualised application delivery, anywhere deployment, any device, totally network centric • Resilience, Redundancy/DR, Internet Scale, Service Assurance Platform built into Service. Multi-entity design, secure authentication • Higher abstraction layer. Managed middleware instances of J 2 EE App Servers, . Net, Databases, Web sites and applications e. g. CRM, ERP, Accounting, Productivity • Links tightly with Virtual Private Grid and runs over MPLS with MCIP Qo. S Offering

What are the key components? • Orchestration – Anticipates and predicts capacity requirements – Pulls it all together • Virtualisation – Server – Disk – Network • Provisioning – Dynamic and timely provisioning and removal of server, network, disk and other resources • Business Rules – Prioritisation – Cost Models

Ah but…… dealing with the legacy systems • Initially 100% of the IT estate is legacy • Applications can last 20 years even if the underlying infrastructure is replaced more frequently • Taking an opportunity to re-platform can dramatically reduce costs and simplify – Often falls into the too hard category • Key area is clearly understanding current environment – Focus on the quick wins – Not all legacy is viable to move • At BT we use VSU as our target environment • Current view is we achieving a 20: 1 consolidation ratio

BT’s “Smart Consolidation” Model Discover Understand Discovery of assets, applications, feeds associations & owners Consolidation of discovered data and “intelligent mining” Technology sets DYNAMIC TOOLS Design Plan Solution design built Generate detailed on common/optimised plan/schedule for build infrastructure modules and migrate activities OTHER METHODS Common consolidated source & mining enables: • Face to Face • Questionnaires • Existing asset records • Existing CMDB systems • Organisational records (understand ownership) • Performance data • Gap Identification • Business requirements alignment • Understanding complexity • Orphans/Quick Wins • True costing • Customer validation (& hence data cleansing) • Performance data • Risks and Issues Resource scheduling & mgmt to enable workload migration. In life CMDB Populate dynamic inlife CMDB Third party Data Centre Move Tool Implement DCM holds rules defined by policy, architecture and methods Consolidation policy Task driven plans Consolidation, virtualisation Resource requirements and co hosting methods Scheduling Architectural framework (ODIN) Data Migration Common Templates Portfolio Technology Opportunities DCM can provide task driven workstack management system Or can feed tasks into existing Change Management system Build target environments Trial migrations

Summary • Groaning under the weight of diversity and change • Ability to delver new compromised by burden of supporting the legacy • The BT solution is to wholeheartedly adopt a new paradigm VSU • Ruthless standardisation • Automation – zero touch, self service • Autonomic • Building resilience and availability into the network • Virtualise everything • Self healing • Consolidation, simplification, rationalisation and virtualisation of legacy data centres • Systems Management, Provisioning and Automation are critical to our success

Tivoli Live 2006 50 IBM IT Service Management © 2006 IBM Corporation

IT Service Management Unifying Automation, Security and Storage Norman Wilkinson Service Management Leader IBM

IBM IT Service Management Unifying Automation, Security and Storage Agenda • The drive towards IT Service Management • What lies beneath a Business Service • What to do and how to do it • Key initiatives & phased approach • IBM as a strategic ITSM Partner 52 Tivoli Live 15 June 2006 © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage The drive to IT Service Management Business Relationship External Customer Demand for Services Service Delivery 53 Tivoli Live Business Relationship Internal Customer The Business/Unit 15 June 2006 Demand for Services Service Delivery Business Relationship Service Provider IT Department Demand for Services Service Delivery Service Provider IT Outsourcer © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage The drive to IT Service Management • Incorporated September 1995 • 2000 GMV of $ 5. 4 bn • 2005 GMV of $ 44. 3 bn • 6 million listings added per day • Users trade $1, 511 worth of goods every second • June 1999 – a 21 hour outage cost $ 3. 9 m in 1 Q 2 lost revenues • Today that would equate to $ 106 m 1 CNN Money - August 1999 All other information sourced from ebay. com and Annual Reports 54 Tivoli Live 15 June 2006 © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage What lies beneath a Business Service Business Process Management ID Provisioning and Access Security Business Service Management Capacity Provisioning Server Pool Storage Infrastructure Operational Management Transaction Performance Management 55 Tivoli Live 15 June 2006 Applications Management © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage What to do? Information Technology Infrastructure Library Availability Security ITIL is a suite of publications that define a set of process based Optimization Provisioning best practices for managing complex IT environments. Provides a framework and guidance applicable to all IT organizations. ITIL is the world’s most widely accepted approach to IT Service Management. ITIL Goals: § Align IT services with the current and future needs of the business and its customers § Improve the quality of the IT service delivered § Reduce the long term cost of service provision 56 Tivoli Live 15 June 2006 © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage How to do it? IBM Tivoli Unified Process (ITUP V 2. 0. 0) • Detailed diagrams and descriptions of IT Service Management processes • Based on industry best practices • A complete, cohesive process model: IBM Process Reference Model for IT (PRM-IT) • Strongly aligned to ITIL and can be mapped to other process models such as Co. BIT, e. TOM, Six Sigma, CMMI, ISO 17799 • Walkthrough scenarios eg: Analyze Impacts, Users Report Web Outage • Helps make ITIL actionable! Free Download at http: //www-306. ibm. com/software/tivoli/features/it-servmgmt/itup/tool. html 57 Tivoli Live 15 June 2006 © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage IT Value to the Business Incremental Gains in a Phased Approach IT Service Management –t Phase 3 n e em • Manage IT as a Business v ro • Automate Service Processes mp I • Optimize IT Services Proactively ice • Collect, analyze rv share service and process metrics Se and Service Aware Management – Phase 2 • • Understand IT services and its supporting infrastructure IT perceived as a Measure/Model Service Performance Service Provider Ensure effective changes to the Service Infrastructure Audit n o Service Compliance ti uc d Re Resource Management – Phase st Co 1 IT perceived as a • Measure systems and resources available • Maintain resource specific information • Optimize resource availability Technology Focus 58 IT perceived as a Strategic Partner Tivoli Live 15 June 2006 Cost Centre Business Focus © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Enterprise Data Warehouse Enterprise Console 3 rd Party Service Desk ITSM Platform Discovery & CCMDB Release Problem Management Availability Management Reporting and Business Intelligence Integration Management Change & Config Incident & Phase 1: Resource Management - Build on existing management tools Provisioning Infrastructure Management Enterprise Portal Infrastructure Monitoring 59 Tivoli Live Network Management 15 June 2006 Applications Monitoring © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage Discovery of infrastructure components and applications Tivoli Application Dependency Discovery Manager (TADDM) • Visibility of assets • Agent-less automated discovery • Relationships and dependencies • Deep configuration details • Change detection and reporting • Comparisons against standards • Populates CCMDB and Business Service Views 60 Tivoli Live 15 June 2006 © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage IT Process Management Products IT Service Management Platform Change and Configuration Management Database (CCMDB) IT Operational Management Products Best Practices • Active repository for all Configuration Item (CI) information Release Incident Management • Integrated Change and Configuration Management processes Auditing Logging • Mapping & visualization User Interfaces Task Manager • Synchronization CCMDB Process DB Config Relationships Process Artifacts. Metadata Items Reconciliation Integration Modules Functional Interfaces Existing Management Tools Automation Tools Scripts Generate & View Reports Discovery Interface with Existing Management Products Security Process Configuration Data Access Approve, Execute & Monitor Process Steps and Tasks Reporting Policies Process Runtime Infrastructure Error Hdlng Deploy & Configure Processes • Reconciliation ITSM Solution Core Change Management. Configuration Management Build/Customize Processes • Meets the Gartner 4 key differentiators: • Federation Information Lifecycle Management API CLI Data Federation Middleware IT Infrastructure 61 Tivoli Live 15 June 2006 © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage Take Back Control of the Infrastructure Current State: Desired State: Cost and time to resolve problems is high • • Reduce cost and time to resolve • Focus on restart not fix - Reactive problems Risk of recurrence • • First time resolution at root cause • Reduce No. of incidents/ problems and • Changes impact service availability • Lack load on of process Service Desk • Structured process aligned to ITIL best practices • Proactive management • Change related outages eliminated • Centralize monitoring management • Simplify with single ‘pane of glass’ Cost Labour • Extend to end-end • Correlate events and filter • Identify root causes quickly • Enable priority action to be taken • Reduce MTTR • Lower operational costs • Improve productivity and service 62 Tivoli Live 15 June 2006 Sense Isolate Diagnose Take Action Evaluate Time © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Enterprise Data Warehouse Infrastructure Management Enterprise Console 63 Enterprise Portal Infrastructure Monitoring Tivoli Live Network Management 15 June 2006 3 rd Party Service Desk ITSM Platform Discovery & CCMDB Release Problem Management Availability Management Reporting and Business Intelligence Integration Management Service Level Management Business Systems Management Executive Dashboards Change & Config Service Level Management Incident & Phase 2: Service Aware Management – Operational Management Products Provisioning Applications Monitoring Transaction Performance © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage Lines of Business Align IT to the Business – the Vertical Stack Busines s Service 1 Busines s Service 2 Order Manageme nt Busines s Service 4 Busines s Service 5 Application Layer Middleware Layer Series System Layer Network & Device Layer 64 Tivoli Live 15 June 2006 © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage Align IT to the Business – Understand Business Impact Order Management – Statistics for 1 month (SLA Threshold is 99. 9% availability) Component Availability Downtime % (min : secs) Microsoft IIS Server 0: 00 4: 32 99. 990 IT Perspective 100. 000 Microsoft SQL Server “We are meeting our Service Levels” Series Microsoft Windows Server 99. 982 7: 54 Lotus Domino AIX Server 99. 986 6: 00 IBM AIX MQ Server 0: 00 8: 64 99. 980 HP Procure Switch User Experience 69: 12 99. 840 Composite Effect/ 105. 50 CISCO Switch Tivoli Live Business Perspective 100. 000 Apache Web Server 65 Series 15 June 2006 9: 88 99. 977 “The 99. 750 business cannot sustain these outages” © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage Align IT to the Business – Understand Business Impact Annual Cost of Downtime in US (outages only, not degradation) Sector Avg Hours Lost Total Revenue Productivity Per Hour Finance 1200 Healthcare Transport Lost p. a. 35. 0 400 300 $m 500 135. 6 14. 4 12. 4 800 Manufacturing Retail $m 100. 5 10. 3 9. 5 61. 2 13. 4 18. 0 Source: $m 61, 500 73, 000 44. 8 106. 0 31. 4 62, 800 Tivoli Live 15 June 2006 132, 500 Infonetics Research Jan 2005 From the start of this presentation e. Bay will have traded: $ , 1 8 0 66 $ 113, 000 24. 6 21. 9 2 , 0 8 5 © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage Align IT to the Business • Visibility of application composition – software and hardware • Dependencies and relationships • Enables views of business services to be dynamically maintained 67 Tivoli Live 15 June 2006 © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage Aligning IT to the Business – Manage through Service Views Tivoli Business Systems Manager (TBSM) • Visualize problem alerting by Business Service • Real-time business impact management • Link with Service Level Management tools • Manage Trouble Tickets and links with Service Desk function • Move from Reactive to Proactive • Executive Service Dashboards 68 Tivoli Live 15 June 2006 © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage Understand manage the customer experience Tivoli CAM for Response Time Tracki • Synthetic and real transactions • J 2 EE Transaction decomposition graphically • Identify roundtrip response and points of degradation Application Server 0. 1 0. 2 Edge Server / Load Balancer 0. 2 0. 1 0. 6 0. 3 Web Server Cluster 69 0. 3 Tivoli Live 0. 2 0. 3 0. 6 Web Application Servers 15 June 2006 Distributed Databases 6. 8 Host System s Host Databases © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Infrastructure Management Enterprise Portal Infrastructure Monitoring Tivoli Live Network Management 15 June 2006 Management ITSM Platform Discovery and CCMDB 3 rd Party Applications Change & Config 3 rd Party Service Desk Release Problem Management Reporting and Business Intelligence Integration Enterprise Console 70 Service Level Management Executive Dashboards Enterprise Data Warehouse Availability Management 3 rd Party Applications Business Systems Management ITSM Process Managers Service Level Management Incident & Phase 3: IT Service Management – Process Automation Provisioning Applications Monitoring Transaction Performance © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage Phase 3: IT Service Management – Process Automation Release Management Process Solution example Release Management Process: Best Practices Process for process auditing and task coordination Process Automation Task Automation • Create Software Package • OS • Patches • Middleware • Applications • Prepare for network, • Provision test systems with clean software stack • Deploy new release to test systems storage and other configuration changes 71 Tivoli Live 15 June 2006 • Deploy Software In-context launch of operational products Package • Execute pre-install • • configuration changes Install software Reboot machines Assign IP Address Assign LUN Configuration Manager © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage Phase 3: IT Service Management – Process Automation Available this Month! • Change and Configuration Management built-in to CCMDB • Release Management • Availability Management • Storage Management Futures • • • 72 Capacity Management Workload Management Service Level Management Asset Management Security Management Service Continuity Management Tivoli Live 15 June 2006 © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage Focus on initiatives that deliver value today and contribute to the ‘Big Picture’ Top-Down Approach • • Strategically driven as a major Service Improvement Programme Broad front of attack Culture changing with enterprise impact Time-to-Value is slow ITSM Workshop Bottom-Up Approach • • • 73 Focus on 1 business service • Build knowledge of Infrastructure Tactically driven but strategically aligned • Discovery and Inventory • Define critical business service Vertical Stack approach • Specific focus on 1 – 2 critical business services Assess tools utilization – fill gaps • Avoid ‘Rip & Replace’ Prototype then replicate to other business services • Vertical Stack Approach • Provide Quick Wins Time-to-Value is fast • Stay aligned to the big picture Tivoli Live 15 June 2006 © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Approach IT Service Management Unifying Automation, Security and Storage IBM as a strategic ITSM Partner Planning & Scheduling Progress Reporting Human Resource Management Change Management Implementation/ Project Management Transformation Management Cultural Change Stakeholder Management Communications Benefits Realization People Change IBM Solution ITSM Solution Service Management Service Delivery & Support Security 74 Tivoli Live 15 June 2006 Product Portfolio Integration Services Skills Transfer Process Management Process Definitions Workflows Automation Service Management Toolset Technical Workshops User Education Operator Education Management Education Training Modules © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage ITSM Services Packages (IBM GTS) Consult Solution Approach Custom Process driven view Build Operate IT Service Management Design ITIL Service Desk Managemen t ITSM Innovation Workshop Infrastructure Services Readiness for Service Management ITIL/PRM-IT Consulting Services IBM Accelerators for IT Service Management Technology driven view Technology Platform IBM Technology Implementation Services 75 Selected Technologies Enablers IBM Systems and its Virtualization Engine platform, Tivoli Configuration Manager, Tivoli Provisioning Manager, IBM Tivoli Application Dependency Discovery Manager (TADDM) IT Infrastructure Library, PRM-IT (Process Reference Model for IT) CBM for the Business of IT, Tivoli Unified Process Tool Tivoli Live 15 June 2006 © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

IBM IT Service Management Unifying Automation, Security and Storage Business Challenge § Managing a fast-growing and dynamic marketplace that serves more than 180 million users worldwide on demand Business Benefits § Achieving greater efficiency in new service roll-outs ”Because we’ve been able to § Reducing new service development, reducing application automate management processes downtime with IBM Tivoli software, we have From the start of this presentation e. Bayduring rollouts will have traded: $ 2 , 9 4 6 § Able to cost-effectively maintain high service levels with been able to keep our availability , 4 manage more with the 5 0 high and existing staff same staff…. The IBM on demand § Helping customer satisfaction through reliable service automation roadmap will help us delivery move to full-automation and gain §Solution rapid time-to-value through best practices Achieving new levels of resiliency, efficiency, responsiveness, and flexibility. ” § IBM Tivoli: Monitoring, Enterprise Console, —Mark Hydar Manager, Enterprise Management Systems e. Bay Net. View, ITCAM for RTT, Configuration Manager, Service Level Advisor, Business Systems Manager, Data Warehouse, § IBM Global Services 76 Tivoli Live 15 June 2006 © 2006 ITSM – Unifying Automation, Security & Storage IBM Corporation

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Tivoli Live 2006 Tivoli Live ! Agenda Time Agenda Item Speaker 9: 00 -9: 30 Coffee 9: 30– 9: 45 Welcome and Introductions Sean Bergin, UKISA Tivoli Brand Executive Andrew Cunningham, UK Tivoli User Group 9: 45– 10: 45 IT Service Management - Business trends & strategy Al Zollar, General Manager, Tivoli Software 10: 45– 11: 15 Coffee 11: 15 -11: 45 A customer’s view of real business issues Steve O’Donnell, Global Data Center Director BT 11: 45 -12: 15 IT Service Mgmt - unifying automation, security & storage Norman Wilkinson, ITSM UKISA leader 12: 15 -13: 15 Lunch & optional penalty shoot out ! – followed by break out sessions 13: 15 -14: 30 Data Centre Automation – Launches & business update Joergen Krog, Tivoli NE IOT Automation Leader Nick Drabble, Head of Automation Software, UKISA Storage – Launches & business update Ian Hancock, Storage Business consultant, EMEA Steve Cliff, Head of Storage Software, UKISA Security – launches & business update Casey Plunkett, WW sales, Security Stephen Swann, ACI Manager, NAG z. Series update Mark Fallon, Tivoli NE IOT Automation Leader 14: 30 -14: 45 Change over break / coffee 14. 45 -15: 45 Process driven IT Service Management Norman Wilkinson, ITSM UKISA leader Stuart Holliday, EMEA Business Consultant Storage Operations Management incl. TPC & TSMX demos Steve Strutt, Tivoli Storage Management consultant Identity and Access Management incl TIMX demo Srdjan Ljubisavljevic, SW Technical sales specialist z. Series end-to-end Enterprise technical update Stephen Ferguson, SW Technical sales specialist 15: 45– 16. 00 16: 00 -16: 15 Wrap up / Take of the day Sean Bergin, UKISA Tivoli Brand Executive 16: 15 -16: 45 Pre-match discussions with guest speaker in Auditorium Harry Redknapp 16: 45– 17: 00 Guest move to – IBM Hursley clubhouse 17: 00 -18: 30 80 Change over – back to Auditorium / coffee Football & BBQ IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 Take Back Control with IT Service Management § Core issues faced by IT organisations today – Complexity of the IT infrastructure – Pressure on improving quality of IT service – Increasing IT operations spending – Aligning IT with the Business § Tivoli IT Service Management – a comprehensive suite of solutions in 3 main categories: – Process Management – ITSM Platform – CCMDB – Operational Management § Tivoli approach – Modular, to enable you to adopt ITSM at your own pace – Open platform, to leverage existing investments – Based on ITIL based practices – Continue to invest in development of products as well as key targeted acquisitions 81 IBM IT Service Management © 2006 IBM Corporation

Tivoli Live 2006 ITSM Workshop • 2 x ½ day sessions with an ITSM consultant • Part 1 • Facilitate focus on customer’s drivers, service challenges and help refine requirements • Solution Scenarios - What-if’s – Engineer a Vision • Part 2 • Focus on 1 – 2 critical business services for ‘Vertical Stack’ approach • Profile current tooling, methods and processes with hi-level assessment of coverage and maturity • Agree initiatives and hi-level, phased approach and roadmap with costed proposal 82 Contact Norman Wilkinson to sign-up today and this 2006 IBM Corporation is non. IBM IT Service Management ©