Tivoli z Series Update Mark Fallon Sales Leader

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IT Service Management IT Organizations Face Tremendous Pressure on Many Fronts § Complexity: Resources, silos, composite applications § Change: Market demands, workloads, service levels 78% of CEOs believe integrating business and technology is fundamental for innovation § Compliance: Regulations, security, audit capabilities § Cost: IT infrastructure and management Source: 2006 IBM Global CEO Survey © 2006 IBM Corporation

IT Service Management Trend: IT Efficiency and Effectiveness are Waning Decrease in Efficiency as IT Spending Shifts to Operations Labor Application development & support labor has dropped from 48% to 34% of IT Labor spend over previous 4 years. 70% of 2005 CIO Budget is Labor Source: Tivoli Commissioned IDC Study 1 Q 05 Source: Gartner Group, IT Spending & Staffing surveys 70% of CIO budget is Labor § 70% of CIO budget is labor § Operations labor will be 73% of CIO labor budgets by 2008 § Application development will decline at -10% CGR to 2008 § $325 B in operations labor by 2008 © 2006 IBM Corporation

IT Service Management Value of the Mainframe Drive the Value of Hardware, Operating System, Middleware and Tools SOA & Enterprise Transformation Information On Demand Informati on to Enable Innovatio n IT Service Management Enable SOA, delivering business flexibility through integration and transformation within and beyond the enterprise-core systems, applications, data and skills to be reused in end-to-end, cross-platform solutions to create new business processes and end-user applications Continually adjust the end-to -end z. Series IT service management infrastructure to deliver high-performance in a volatile business climate Informati on as a Competit ive Differenti ator Informati on as a Strategic Asset Informati on to Manage the Business Data to Run the Business Create new business value by transforming all forms of data into trusted information in business context — thereby reducing risk and improving business operations over the information lifecycle. z. Series Platform Readiness Drive the Value of Individual Middleware Components © 2006 IBM Corporation

IT Service Management Tivoli’s z. Series Strategic Focus A management environment that allows customers to … Grow capabilities for developing and deploying On Demand z. Series solutions Support and exploit the latest features delivered in the underlying z. Series subsystems Lower the TCO of z. Series software Modernize look and feel Contribute business autonomic capabilities to the z. Series environment © 2006 IBM Corporation

IT Service Management and System z § ITSM: Logical evolution of Systems Management: Ø Management focus shifting from IT resources to business services Ø Resources becoming more autonomic Ø Processes need to be more than just paper • instantiated as automatable workflows to ensure compliance and consistency § No better foundation for ITSM than System z Ø In the face of constant change, System z remains an effective and efficient platform Ø High availability …resiliency…. transactional performance and security Ø Low total cost of ownership § We’re committed to bringing System z solutions that: Ø Expand System z capabilities while enhancing its proven strengths Ø Reduce the costs associated with operations and systems management © 2006 IBM Corporation

IT Service Management System z Core Competencies Process is part of the System z DNA. The automation of business processes has been performed with System z for decades. IT Process Management Process Knowledge Technology With 40 years of experience, no other platform embodies the discipline, knowledge and skills of System z has established itself as the most available, secure and capable platform ever deployed © 2006 IBM Corporation

IT Service Management Our Approach to IT Service Management IBM IT Service Management Products § Automated ITIL-aligned workflows IT Service Management Platform § Open, standards-based CMDB and workflow engine IT Operational Management Products § Automated infrastructurealigned tasks IT Process Management IT Process Best Practices § Best Practices and Implementation Support Logical progression of the values that made System z what it is today © 2006 IBM Corporation

IT Service Management IT Process Managers Bridge Organizational Silos IBM IT Service Management IT Process Management Products IT Service Management Platform IT Operational Management Products Best Practices GA in June 2006! IT CRM & Business Management Service Delivery & Support Financial Assessment Process Manager Availability Process Manager Service Level Management Process Manager Service Deployment Information Management Business Resilience Release Process Manager Storage Process Manager Service Continuity Management Process Manager Change and Configuration Management (included in the CCMDB) Asset Management Process Manager Capacity Management Process Manager Available in 2 H 2006! Security Management Process Manager Compliance Management Process Manager 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 © 2006 IBM Corporation

IT Service Management Platform – An Open, Standards-Based Configuration Platform Based on proven IBM technology GA in June 2006 IBM IT Service Management IT Process Management Products IT Service Management Platform IT Operational Management Products • Configuration Management Database • Open, federated model • API and GUI reporting access • Automated application resource discovery and mapping • Workflow Engine • Based on Web. Sphere technology • Process modeling and simulation • Automated process execution • Real-time monitoring and reporting Best Practices • Automated Process Workflows • Change and configuration management © 2006 IBM Corporation

IT Service Management Tivoli IT Service Management Technology & Products Leverage Current Technology and Products IBM IT Service Management Best Practices and Implementation Services Process Managers IBM Tivoli Change and Configuration Management Database IT Operational Management • Tivoli Business Systems Manager Tivoli Products Announced in September! § IBM Tivoli Enterprise Console 3. 9 § OMEGAMON XE on z/OS § OMEGAMON XE for CICS § OMEGAMON XE for IMS on z/OS § OMEGAMON XE for DB 2 PE on z/OS § OMEGAMON XE for DB 2 PM on z/OS § OMEGAMON XE for Mainframe Networks § OMEGAMON XE for Storage on z/OS § OMEGAMON DE on z/OS § IBM Tivoli Monitoring 6. 1 § Tivoli Composite Application Management § IBM Tivoli for Net. View on z/OS § IBM Tivoli System Automation for z/OS 3. 1 § IBM Tivoli System Automation for Multiplatform • Tivoli Remote Control • Tivoli Workload Scheduler • Tivoli Decision Support for z/OS © 2006 IBM Corporation

IT Service Management IBM Tivoli Monitoring Increase infrastructure resilience by identifying problems and automating responses at the source Enhanced! IBM Tivoli Monitoring § Monitor your entire IT infrastructure through a single customizable workspace § Effectively link IT services together with processes, data, skills and tools Enhanced! IBM Tivoli OMEGAMON XE for IBM System z 9 and e. Server z. Series § Comprehensive solution for proactively managing your mainframe infrastructure § Quickly identify and solve system delays by analyzing bottlenecks and building a detailed picture of resource usage New! IBM Tivoli Enterprise Portal § Integrates with Tivoli Enterprise Portal “IBM’s acquisition of Candle allowed me to buy the best solution from a company that I can depend on to support CNF well into the future— at a price that met our business requirements” —Jerry Duncan Technical Services Group Manager, CNF © 2006 IBM Corporation

IT Service Management New Product Releases for 2006 § OMEGAMON XE on z/OS 3. 1. 0 § OMEGAMON XE for CICS on z/OS 3. 1. 0 § OMEGAMON XE for IMS on z/OS 3. 1. 0 § OMEGAMON XE for DB 2 PE on z/OS 3. 1. 0 § OMEGAMON XE for DB 2 PM on z/OS 3. 1. 0 § OMEGAMON XE FOR MESSAGING V 6. 0 § OMEGAMON XE for Mainframe Networks 3. 1. 0 § OMEGAMON XE for Storage on z/OS 3. 1. 0 § OMEGAMON XE for z/VM and Linux on z. Series * © 2006 IBM Corporation

IT Service Management Key Elements Across Releases § Product simplification Ø OMEGAMON XE for CICS (CICS and CICSplex support) Ø OMEGAMON XE on z/OS (z/OS, Sysplex and Crypto) Ø OMEGAMON XE for IMS (IMS and IMSplex) Ø OMEGAMON XE for DB 2 (DB 2 and DB 2 plex, now packaged with DB 2 PM and PE) § Continued Investment in currency § Commitment that new functions do not increase overhead § Transition of OMEGAMON II (3270 CUA-based) functions to XE/TEP Interface © 2006 IBM Corporation

IT Service Management Tivoli OMEGAMON XE for Mainframe Networks Simultaneously Manage TCP/IP, VTAM and NCP Problem § High cost of managing multiple mainframe networking technology Solution § View detailed analysis of TCP/IP connections that are slow, unstable or down – and quickly identify whether the problem is hardwarerelated or within the TCP/IP stack § Monitor VTAM buffer pools, virtual route analysis and NCP performance through a single, integrated interface Potential Benefits View the VTAM session and the TCP/IP connection simultaneously to pinpoint the problem. § Quickly identify whether problem is hardware-related or within TCP/IP stack © 2006 IBM Corporation

IT Service Management Tivoli OMEGAMON XE for Storage Comprehensive view of mainframe-attached storage Problem § Focused view of critical dataset groups needed to diagnose problems Solution § Complete support for dataset group allows for multiple views of storage and files § Targets important applications Potential Benefits § Speeds problem identification and resolution § Eliminates time spent filtering extraneous information By filtering out lower priority dataset groups, you are ensured of being alerted to problems for groups that impact your most critical applications © 2006 IBM Corporation

IT Service Management End to End Management from Tivoli Current System z Portfolio IBM Tivoli Monitoring v 6. 1 OMEGAMON XE for z/OS v 3. 1. 0 OMEGAMON XE for DB 2 PE, DB 2 PM v 3. 1. 0 OMEGAMON XE for CICS on z/OS v 3. 1. 0 OMEGAMON XE for IMS on z/OS v 3. 1. 0 OMEGAMON XE for MF Networks v 3. 1. 0 OMEGAMON XE for Storage on z/OS v 3. 1. 0 Customers Tivoli Enterprise Console v 3. 9 System Automation for Multiplatforms v 2. 1 ITCAM for Web. Sphere V 6. 0 ITCAM for Resp Time Trk V 6. 0 Net. View on z/OS v 5. 2 ITCAM for SOA V 6. 0 System Automation for z/OS 3. 1 © 2006 IBM Corporation

IT Service Management Tivoli Enterprise Portal – 2006 is all about Integration A Dynamic Role-based Workspace for Integrating IT Operations Silos – One portal to monitor the overall health of the infrastructure Business Services Distributed Resources J 2 EE Transactions Mainframe Resources Service Level Reporting Executive Dashboard Launch in Context Everything at your Fingertips © 2006 IBM Corporation

IT Service Management Product Integration with the Tivoli Enterprise Portal § TODAY: Ø ITM v 6 & ITM v 5 Ø OMEGAMON XE • • Ø Ø Ø Ø z/OS, IMS, CICS, Storage, Mainframe Networks DB 2: OMEGAMON XE for DB 2 Performance Monitor and Performance Expert Tivoli Enterprise Console Net. View for z/OS Tivoli Storage Optimizer (ITSO) ITCAM for SOA, ITCAM for RTT, ITCAM for Web. Sphere Tivoli Service Level Advisor z/OS Management Console Tivoli Business System Manager • Launch in Context now, Integrated Operator Console Soon Ø Most any product with a browser-based or 3270 (Host on Demand) view § COMING SOON: Ø Ø Ø TADDM Tivoli Workload Scheduler Tivoli Systems Automation Micromuse products (Precision, Netcool, etc) OMEGAMON XE for z/VM Linux ITCAM for J 2 EE © 2006 IBM Corporation

IT Service Management IBM OMEGAMON z/OS Management Console üShipped 1. 1. 0 December 2005 and 1. 1. 1 (ITM V 6 support) March 2006 üEliminates memorization of complex DISPLAY commands üVisualizes status of sysplex resources and Health Checks Web page : http: //www-306. ibm. com/software/tivoli/products/omegamon-xezos/ © 2006 IBM Corporation

IT Service Management Futures - OMEGAMON 4. 1. 0 Themes § Customer Satisfaction Ø Globalization Ø Exploitation of new OS and middleware releases Ø Customer Enhancements § Portfolio Simplification Ø Candle Management Workstation and OMEGAMON II features now in XE Ø OMEGAMON XE for USS merged with OMEGAMON XE for z/OS § Integration Ø Dynamic Workspace Linking Ø Launch in Context • TWS, TBSM, and more Ø Tivoli Data Warehouse – pruning and aggregation § Serviceability Ø Problem Determination Guides IBM Confidential © 2006 IBM Corporation

IT Service Management OMEGAMON XE for z/VM and Linux on z. Series § Monitors z. VM and Linux on z. Series § Provides workspaces that display § Overall System Health § Workload metrics for logged-in users § Individual device metrics § LPAR Data § Composite views of z. Linux running on VM § Leverages the VM Performance Toolkit IBM Confidential © 2006 IBM Corporation

IT Service Management The ITCAM Solution Portfolio Delivering high-performing composite applications. Analyze and Measure Transactions & Services Manage Application Monitor Infrastructure ITCAM for RTT ITCAM for Web. Sphere ITCAM for SOA ITM, OMEGAMON XE © 2006 IBM Corporation

IT Service Management z/OS Service Management Operational Tools IBM Tivoli Monitoring v 6. 1 OMEGAMON XE for z/OS v 3. 1. 0 OMEGAMON XE for DB 2 PE, DB 2 PM v 3. 1. 0 System Automation for Multiplatform v 2. 1 System Automation for z/OS 3. 1 OMEGAMON XE for CICS on z/OS v 3. 1. 0 OMEGAMON XE for IMS on z/OS v 3. 1. 0 OMEGAMON XE for MF Networks v 3. 1. 0 Customers Tivoli Enterprise Console v 3. 9 TBSM v 3. 1 Net. View on z/OS v 5. 2 OMEGAMON XE for Storage on z/OS v 3. 1. 0 © 2006 IBM Corporation

IT Service Management Tivoli Net. View for z/OS 5. 2 New Functionality § Interoperability with OMEGAMON XE for Mainframe Networks § IPv 6 support § Automated response to intrusions § Automatic trouble ticket creation through products such as Peregrine Service. Center and Tivoli's Information Management for z/OS © 2006 IBM Corporation

IT Service Management Tivoli System Automation Portfolio AF/REMOTE 06) r in 20 e SA MP e 2 e t (Adap AF/OPERATO R z/OS SA MP Base Linux, AIX Cluster • SA z/OS - provides automation and high availability for z/OS • AF/OPERATOR - SMB-focused automation product for z/OS • AF/REMOTE provides secure outboard automation and console consolidation for disparate operating systems • SA Multiplatform provides availability and automation support for cluster (on Linux and AIX) environments • SA Mulitplatforms end-to-end component provides coordinated, cross-cluster/resource automation and high availability for multi-tiered applications © 2006 IBM Corporation

IT Service Management System Automation Portfolio Release Highlights System Automation z/OS v 3. 1 Highlights § Integration capabilities with OMEGAMON for DB 2, IMS, CICS, z/OS § Tighter Integration with less set up time for the application supplied for GDPS § Increased number of policies and message automation table entries § NMC enhancements. § Adapter for end-to-end GUI. Integration Strategies for SA z/OS § Enhanced integration with TWS - 8/06 SPE § WLM integration for on demand capacity management - - - 3/06 SPE § Further integration with GDPS - - 9/06 SPE § TEP Integration © 2006 IBM Corporation

IT Service Management Tivoli Workload Scheduler Investment Strategy Evolve toward a workload integration backbone Ø Exploit SWG infrastructure components (eg Web. Sphere & DB 2) Ø Schedule a wide variety of business applications (ERP, J 2 EE, . Net, etc. ) Ø Integrate with workload management technologies (e. WLM, etc. ) Ø Support event-based as well as calendar-based Enhance end-to-end scheduling from any platform & z. Series focus Ø Establish TWS as a cross-enterprise end-to-end advanced scheduler Ø Provide a single consolidated view of all scheduling points Ø Improve TWS for z/OS pure mainframe capabilities Create a foundation for On Demand Enterprise scheduling Ø Dynamically schedule & choreograph enterprise workloads across virtual resources Ø Integrate with business system management for policies & service level management Ø Integrate with provisioning to allocate capacity on demand © 2006 IBM Corporation

IT Service Management IBM Tivoli Workload Scheduler v 8. 3 New! Single solution to manage workloads from multiple applications, across multiple platforms § Scheduling repository on a real RDBMS § Tivoli Management Framework replaced with Web. Sphere Infrastructure Job Scheduling Console TWS z/OS Server § Advanced planning capabilities § Public J 2 EE and Web Service APIs New Product for z/OS based Distributed End to End Job Scheduling Distributing Workload TWS Dynamic Workload Broker New! TWS Server TWS Agents AIX, HP, Solaris, Windows, Linux, OS/400, z/OS… TWS Business Agents SAP People. Soft Oracle © 2006 IBM Corporation

IT Service Management z/OS Service Management Operational Tools IBM Tivoli Monitoring v 6. 1 OMEGAMON XE for z/OS v 3. 1. 0 OMEGAMON XE for DB 2 PE, DB 2 PM v 3. 1. 0 System Automation for Multiplatform v 2. 1 System Automation for z/OS 3. 1 OMEGAMON XE for CICS on z/OS v 3. 1. 0 OMEGAMON XE for IMS on z/OS v 3. 1. 0 OMEGAMON XE for MF Networks v 3. 1. 0 Customers Tivoli Enterprise Console v 3. 9 Net. View on z/OS v 5. 2 TBSM v 3. 1 OMEGAMON XE for Storage on z/OS v 3. 1. 0 © 2006 IBM Corporation

IT Service Management Now Automated Resource Discovery from OMEGAMON TBSM leverages 30+ data feeds to generate end-to-end XE/DE Business Impact views TEC BMC Net. IQ Scheduling TWS, CA 7, Zeke CA DB 2 Schedules Web. Sphere Storage RODM CICS… z/OS • IBM • OMEGAM ON • BMC • CA • ASG Tivoli Monitoring • Resource • Performance • Applications • Network © 2006 IBM Corporation

IT Service Management Z Security Issues § Regulatory Compliance Ø We don’t have the time or staff to perform regulatory audits on all of our critical systems Ø More and more difficult to adhere to security standards § Security Administration Ø We have over 25, 000 employees and they all need personal access to data on z. Series Ø Each individual needs specific access rights and we must be 100% accurate § Intrusion Detection and Management Ø We can’t get immediate notification of misuse within our system and what changes were made Ø Intrusion detection is a 24 x 7 sleepless job. But don’t have the capacity or funding § Centralized Security and Staffing Ø Our data is spread across 20 z. Series systems and each have unique security requirements Ø Our internal skill set is declining and need to quickly train a new generation of z. Series security personnel “A bank stands or falls with its security system. We cannot afford a single error. Not only the mainframes, but even more importantly the security system of the mainframes must be faultless before they go into production. ” Thom Snels, senior security supporter, ABN AMRO © 2006 IBM Corporation

IT Service Management Top of Mind z. Series Security Issues Quote from Ray Jones, VP z. Series Software Sales: “z. Series today offers the best security of any server environment in the industry. Despite this, customers tell us that they have two major concerns: – First, how do they retain and grow z. Series security skills – it’s hard to learn the tricks of the trade about administering z. Series security. – Second, how can they step up to the challenge of ever-increasing corporate governance and regulations, and make risk management more operational? ” Source: IBM z. Talk Radio, z. Series Security July 2005 © 2006 IBM Corporation

IT Service Management IBM strengthens IT Service Management strategy with efficient security administration and compliance management solutions from Vanguard Integrity Professionals Complete Security Management Solution Ø Security administration, integrity auditing, and intrusion detection and management Ø Helps address the most stringent security rules and regulations Ø Reduces complexities of RACF security administration and enforces best practices Vanguard Security Solutions Ø Vanguard Security. Center™ offers an easy-to-use graphical user interface for RACF and DB 2 security administration on z/OS Ø Vanguard Administrator™ provides advanced security server management and analysis with automation and power utilities Ø Vanguard Analyzer™ assists with security system snapshots or full-scale System z 9 security audits Ø Vanguard Enforcer™ manages and enforces security policy on z/OS and RACF Ø Vanguard Advisor™ provides event detection, analysis and reporting capabilities for z/OS and RACF © 2006 IBM Corporation

IT Service Management About Vanguard Founded: 1986 Ownership: Privately held Business: Information Security Software, Training, Services, & Solutions Customers: 600 domestic and abroad, 1, 400 software licenses Employees: 75+ worldwide Vanguard Victoria Labs Victoria, BC, CANADA Vanguard Research Institute Orange, CA, USA Vanguard Integrity Professionals - Nevada Vanguard Integrity Professionals, Ltd. Las Vegas, NV, USA Berkshire, UK © 2006 IBM Corporation

IT Service Management Who are Mainstar § Founded in 1978 § Offices in the U. S. A. , U. K. , Benelux and Australia § Specialists in z/OS; Mainframe Storage and Recovery: 4 Catalog Management 4 Disaster Recovery 4 Storage Management 4 Business Resilience, Compliance and Auditing § Mainstar and IBM co-author many IBM Redbooks § 2006 IBM and IBM GS announce CR+ as “Best of Breed” © 2006 IBM Corporation

IT Service Management Mainstar Products § Catalog Management Ø Prevent unacceptable Data loss Ø z/OS Catalog’s can be a Single point of Failure Ø Diagnose and Fix Catalog errors automatically Ø Ensure 24 x 7 Catalog availability § Business Resiliency and Compliance Ø Non-intrusive and automated identification of your ‘critical’ data Ø Accurately identify your business data assets and ensure they are backed up Ø Meet statutory audit requirements (Sarbanes, FSA, Basle-II, etc) § DFSMShsm Solutions Ø Reduce time and unnecessary overheads with your DFSMShsm Audits Ø Automatically Diagnose and Fix errors in DFSMShsm Ø Rebuild and Repair broken indexes within your Migration and Backup tapes © 2006 IBM Corporation

IT Service Management IBM IT Service Management A Differentiated, Flexible Approach IT Financial Management Establish IT Financial Management Framework IBM IT Service Management Plan and Control IT Budgets IT CRM & Business Management Perform IT Financial Accounting Service Delivery & Support Administer IT Charging Service Deployment Information Management Evaluate IT Financial Management Performance 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, Network & Device Management Storage Management Security Management © 2006 IBM Corporation

IT Service Management IT Financial Management has become a topic of increasing focus and an important issue for CXOs when aligning IT with the Business Goals Align IT with the Business … Service Quality Financial Management Asset Management & Compliance Business Strategy Investment Governance Optimization Resource Accounting & Chargeback © 2006 IBM Corporation

IT Service Management IT Financial Management Tivoli IT Asset Management IBM Tivoli Usage & Accounting Manager ITUAM) Is Strategically focused on collecting existing data about the use of IT resources and allocating those costs to the services that IT provides to the business Is Strategically Focused on managing and controlling IT costs and compliance § § § Auto-discovers installed software inventory on IT hardware and collects hardware data § Creates product use activity information by monitoring executions and creating a log file. Collects usage data about IT resources like OS, database applications and storage devices from existing log files § Allow integration or “linking” of inventory and use activity information to existing contracts and licenses Allows clients to take the collected data associate “per unit” costs and calculate the costs associated with IT Services § Creates report and charts on IT resource usage by service or department § Supports the creation of Service and Department budgets for IT resource utilization § Can feed data in the client’s accounting ledger and billing system for chargeback IBM Tivoli Application Dependency Discovery Manager (TADDM) Is Strategically focused on discovering and maintaining Application level dependencies, pertinent configuration data, both current and historic Provides analytics to identify ways to control IT spending, optimize consolidation and upgrades, negotiate better vendor agreements and reduce contract compliance risk Provides financial reporting on invoice reconciliation, depreciation, currency exchange and amortization § Agentless discovery of networks and dist servers to collect pertinent application and configuration data from the discovered objects. Limited vendor software product discovery. § Creates application dependency maps, ranging from business application interrelationships all the way down to network diagrams, based on applications running at the time of discovery. § Allows for the use of historical data to display changes made to discovered nodes as a means to explaining operational issues. § Allows for comparison of multiple like configured objects to determine differences in hardware/software configuration that may be contributing to operational issues. © 2006 IBM Corporation

IT Service Management The Challenge and the Solution Align IT Software Spending with Business Priorities IBM Capability Who is consuming which IT resources? Data collectors for IT infrastructure can review consumption across multiple dimensions What is the cost of those resources, including those that are shared? Costing engine assigns cost to resource usage How should IT allocate cost for chargeback, ROI, costing analysis, and billing? Costing engine associates usage costs to consumers of IT resources All three questions help align IT spending with business priorities © 2006 IBM Corporation

IT Service Management Usage & Accounting Manager (ITUAM) IT Service Level Advisor Adjustments for Service Level Violations Cost reporting in SLA Tivoli IT Asset Reports go to: Usage & Accounting Manager IT Chargeback and Transaction Billing § Cost Centers § Departments § Various slices for financial analysis Management Solution Dedicated Hardware & Software $ ITUAM Data Collectors Unix, Linux, Oracle, Storage, Middleware, Applications and other third party hardware and software ITUAM Data Collectors Windows, Exchange, Notes, SQL Server, MS Disk Storage, Middleware and Applications Tivoli Decision Support for z/OS Batch TSO, Transaction Processing, Database and Storage p. Series and x. Series servers will come with this capability prepackaged (Sept 2006) IBM Confidential © 2006 IBM Corporation

IT Service Management The Challenge and the Solution – Align IT Software Spending with Business Priorities What software do I have? Tivoli’s Unique Capability Auto-Discovery of Software Assets End-to-end Tivoli License Compliance Manager To what extent is this software used? Is this different from what was purchased? Usage & Activity Monitoring Tivoli License Compliance Manager Tivoli Contract Compliance Manager How much is each software asset costing me now and in the near future? Contract Management Comparing Usage to Contracts Tivoli Contract Compliance Manager All three questions must be answered to align IT spending with Business Goals © 2006 IBM Corporation

IT Service Management Summary § Integrate and Interoperate Maintaining our leadership in enhancing System z hardware and software to integrate and interoperate with new platforms and applications § System z and End to End Solutions Providing System z and End-to-End management solutions to find and fix problems quickly § IT Process Management Improving service delivery with solutions that manage IT processes, based on ITIL best practices § ITSM Solutions Delivering ITSM solutions that can meet your key IT challenges cost effectively © 2006 IBM Corporation