v 8 0 The New RSA IBM Internal

v 8. 0: The New RSA IBM Internal and Business Partner Use Only

IBM Software Group | Rational Agenda § What is RSA? – Conventional Wisdom – New Messages – New Product – New Positioning – New Calls to Action § Quick survey of new capabilities – Consumability and usability improvements – Model execution / Sim Toolkit – Architecture interchange and translation (worksheet importer and PES) – Other § Where to go from here – The learning roadmap – Los Links § Deep dive on new packaging, pricing, and migrations 2 IBM Internal and Business Partner Use Only

IBM Software Group | Rational RSA: Conventional Wisdom § UML Modeling § MDD § Good standards conformance § Good scalability § Integrations with Rational SDP § Backed and supported by IBM § Bloated – – 3 Big Slow Complex Expensive IBM Internal and Business Partner Use Only

IBM Software Group | Rational RSA: New Wisdom § More effective IT solution delivery § Managing complex solution architectures § Vertical industry-specific value § Simplified user experience; usability second-to-none § Competitive entry level pricing § The best value in its market 4 IBM Internal and Business Partner Use Only

IBM Software Group | Rational RSA: New Messages (Top 3) § Tame complexity: manage, de-risk, and future-proof your IT solutions – Transform complex business goals into scalable, maintainable, robust architectures – Leverage models for comprehension, communication, collaboration, estimation, impact analysis, and architectural governance § Get your architectures right! – Integrate them across business process, data, software, and operations – Test and validate them with model execution § Deliver robust, scalable SOA with confidence – Tools and guidance based upon lessons learned from hundreds of IGS engagements 5 IBM Internal and Business Partner Use Only

IBM Software Group | Rational RSA: New Product § New packaging and pricing § New user experience § New capabilities § Improved performance 6 IBM Internal and Business Partner Use Only

IBM Software Group | Rational RSA: Not Throwing Out The Baby With The Bathwater… § An even better software factory § Still good standards conformance § Even better scalability § Even better integrations 7 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Selling RSA: New Segmentation Segment Needs • More efficient means for dealing with FSS’ significant compliance overhead § Optimized tooling support to correspond to SOA initiatives and significant investments in legacy FSS systems / skills and IBM middleware § More efficient means for collaboration in planning and design processes – large, distributed teams § Tools for comprehension, planning and governance relative to very large and complex IT environments – a pain exacerbated by significant recent restructuring and M&A activities § More standardization, automation, and efficiency around solution deployment/configuration (“Dev. Ops”) to reduce costs and improve turnaround times § Tools to help sustain rapid pace of business and technological innovation with emerging new Network Service Providers services, devices and platforms § Tools to deal with the challenges of integrating these new apps and services – both their own and others’ - with their networks and their operational and billing back-end systems; such tools must support the industry standards that are directed to these challenges § Pressure for improved efficiency is driving need to adopt Smart Grid, which requires standards; Energy and Utilities Government developing to the standards – expressed as a Common Information Model (CIM) - is a recognized pain. Need tools that help them with this challenge § More efficient means for dealing with E&U’s significant compliance burden § Regulated industry with safety and other rules that change, leading to need for highly effective means of discovery and impact analysis for ongoing maintenance § Need more efficient means for dealing with compliance / reporting burdens § Need means to keep solution design and delivery tied to mission drivers § Optimized tooling support to correspond to SOA initiatives and significant investments in legacy systems / skills and IBM middleware General Market “Good Enough” Culture 8 § “Good enough” general-purpose tools for architecture, design, graphical communication, and development at a highly competitive price point IBM Internal and Business Partner Use Only

IBM Software Group | Rational And Some Old: Actionable EA 9 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Selling RSA: New Pricing vs. the Low-End Competition § Use the FTL if needed but recognize that perpetual yields lower total cost of acquisition starting in year 3 § As compared to Spar. X: an additional $125 per year buys your customer the strongest modeling tool and software factories platform in the market, integrations with the Rational ALM, and IBM support § Steer discussions away from floating licenses if possible (more on this later) RSA Microsoft Visual Studio No Magic -- Magic Draw Sparx Enterprise Architect RSA: $990 AU / $2480 FL – AU renewal < $200 $468 AU FTL (first & subsequent years) VS 2008 Professional $799 (no MSDN) to $2599 (w/ 1 year premium MSDN) $799(FL)/$499(AU) plus maintenance, plus third-party support required for MDD “Business and Software Engineering” § First-year FTLs: $599(AU) / $799(FL) § Renewals: $160(AU) / $211(FL) § Discounts as volumes increase RSA + One Extension (such as Integrated Architectures or Communications Applications): $2090 AU / $3660 FL / $993 AU FTL 10 With their frameworks add-on: $2549(FL)/$1599(AU) plus maintenance, plus third-party support required for MDD IBM Internal and Business Partner Use Only

IBM Software Group | Rational Selling RSA: New Calls To Action § Sell per segmentation – High price points for differentiated value in target market segments – Entry pricing elsewhere – Sell with System Architect for Enterprise Architecture Management • For every enterprise architect there are probably 5 or more solution, software, and IT architects who should be using RSA § Beat low-end competition – Comparable capabilities, comparable pricing – Better scalability, integrations, future growth paths, IBM-supported § Help out with Web marketing – Linked. In, Facebook, … what are you doing right now? Blog – what’s on your mind? – A: something to do with Rational Software Architect – Include link to RSA family page: http: //www 01. ibm. com/software/awdtools/swarchitect/index. html 11 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Agenda § What is RSA? – Conventional Wisdom – New Messages – New Product – New Positioning – New Calls to Action § Quick survey of new capabilities – Consumability and usability improvements – Model execution / Sim Toolkit – Architecture interchange and translation (worksheet importer and PES) – Other § Where to go from here – The learning roadmap – Los Links § Deep dive on new packaging, pricing, and migrations 12 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Simplification of User Experience § More fine-grained install options to better control footprint and UI complexity § Offset by install “profiles” to simplify selection of feature sets § Minimal footprint by default § Can now suppress some Eclipse things like PDE – still working on suppression of JDT, CVS § Reducing UI “noise”/ number of choices that the “default” user is confronted with – fewer icons in toolbars – fewer choices on menus 7. 5 – fewer choices in wizards 13 IBM Internal and Business Partner Use Only 8. 0

IBM Software Group | Rational Diagram Layers § Key to supporting future CAM mark-up overlays § Show/hide layers to simplify diagrams without deleting elements or creating new diagrams § Lock / unlock layers to prevent editing § Select all elements on layer quickly § Use layers to quickly alter the z-order of multiple shapes 14 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Enhanced diagram layout Raise your productivity: spend less time hand-formatting your diagrams § Incorporation of IBM ILOG JViews – Choice of 15 graph layouts – Choice of 7 link layouts – Smart label layout § Radically improves auto-layout results 15 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Themes § Reusable styles that can be automatically applied onto shapes and connectors § Existing shapes and connectors can have styles individually applied onto them § Several themes pre-packaged § Users can create new themes 16 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Interaction Overview Diagram and Timing Diagram § Control flows between Sequence Diagrams § Inline Sequence Diagrams § “Concise notation” 17 IBM Internal and Business Partner Use Only

IBM Software Group | Rational WSDL UML Transformation § Create models from complex file content § Multiple WSDL and XSD files to the same model or to different models § Transform the in-line XSD schema defined in the WSDL files § Support imported XSD Schemas § Automatic discovery of the auxiliary WSDL and XSD sources § Highlights the missing auxiliary WSDL and XSD files § Allow setting all the auxiliary sources to be transformed to the same target model 18 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Worksheet Import § Initially for UML and UPIA – Import relevant business driver and other EA content for connection to solution architectures § Based on Jet - adaptable for multiple input formats (CSV, worksheets) § Future application for things like importing technical infrastructure to Zephyr topologies 19 IBM Internal and Business Partner Use Only

IBM Software Group | Rational PES Interchange § RSA is first to market with this Do. D mandate § Only a subset, but it’s “the real deal” – Competitors trying to claim support with smoke and mirrors § Complements our strong story in the Do. D/A&P segment for solution architectures and SOAs linked to business drivers and targeted to Web. Sphere runtimes 20 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Model Simulation § UML Action Language § Model execution – UML Behaviors • Activity • Interaction • State Machine • UAL Opaque Action – Deployment topology trace – Break points, restart, suspend/resume – Event / value injection 21 IBM Internal and Business Partner Use Only

IBM Software Group | Rational More! § Platform and Standards Updates – BPMN 2 – Soa. ML 1. 0 – UML 2. 2 – Eclipse 3. 6 – JEE 6 – VS 2010 /. NET 4 § Diagram transparency, rich text, movement feedback, and more § Better integration of BPMN 2 & Soa. ML – Reuse service interfaces within process models § Rational SOMA 2. 9 “in the box” § Additional Transformations – BPMN BPEL – UML VB. NET § Improved performance – New notational metamodel yields memory reduction and performance gain § Token licensing 22 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Agenda § What is RSA? – Conventional Wisdom – New Messages – New Product – New Positioning – New Calls to Action § Quick survey of new capabilities – Consumability and usability improvements – Model execution / Sim Toolkit – Architecture interchange and translation (worksheet importer and PES) – Other § Where to go from here – The learning roadmaps – Los Links § Deep dive on new packaging, pricing, and migrations 23 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Enablement Roadmap for TSEs 24 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Enablement Roadmap for Sellers 25 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Resources § Seller Roadmap demo kit recordings: tbd § TSE Roadmap topic recordings in CSTEP: https: //rcswin 11. ratl. swg. usma. ibm. com/cstep/road. Map. Skill. aspx? road. Map=336 § RSA wiki: https: //www. ibm. com/developerworks/wikis/display/RSA/Home – One-stop information resource – Check out the Articles page - avoid d. W / ibm. com search! § RSA family product pages: http: //www 01. ibm. com/software/awdtools/swarchitect/index. html 26 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Agenda § What is RSA? – Conventional Wisdom – New Messages – New Product – New Positioning – New Calls to Action § Quick survey of new capabilities – Consumability and usability improvements – Model execution / Sim Toolkit – Architecture interchange and translation (worksheet importer and PES) – Other § Where to go from here – The learning roadmap – Los Links § Deep dive on new packaging, pricing, and migrations 27 IBM Internal and Business Partner Use Only

IBM Software Group | Rational RSA Family Repackaging Objectives § A more readily comprehensible, symmetrical portfolio -- no more “Russian dolls with stuff oozing out the seams” § A stronger, more consolidated family “brand identity” -- no more “RSx” § Address some customers’ desire to buy capabilities more discretely § Balance with other customers’ desire to purchase (and Field’s desire to sell) “convenience” offerings § Establish an entry point we can use to broaden adoption, disrupt competitors, and capture more revenue § Do as little harm as possible in terms of impact to established customers and Field (maintenance price, complexity, execution) 28 IBM Internal and Business Partner Use Only

IBM Software Group | Rational New RSA Packaging: Marketecture View Required Priced Feature (Chargeable Component) Optional Priced Feature (Chargeable Component) Legend Rational Software Architect (PID) Ext. for Integrated Architecture Frameworks $1290 AU $3230 FL Ext. for C++ $2490 AU $6230 FL Ext. for Deployment Planning $1290 AU $3230 FL Ext. for SOA and Web. Sphere Ext for Comm. Simulation Toolkit Apps $2490 AU / $4980 FL RAD SE $1290 AU $3230 FL $2490 AU $6230 FL Rational Software Architect Cloud (“Foundation”, consisting of RSA SE equivalent +. NET + JEE without EJB, minus UPIA and DP) Client $990 AU / $1990 FL License per feature, might be mix of AU for “always in use” features and FL for “occasionally in use” features WTP Rational Software Architect for Web. Sphere Software (PID) $6690 AU / $13, 400 FL Integrated Architecture Frameworks Deployment Planning SOA and Web. Sphere “Plus” (not a marketvisible offering) RAD “Foundation” Cloud Client Rational Software Architect WTP Customer who starts with unbundled model must trade up to RSA 4 WS as their foundation, in order to get the full RAD content. One license and one CC with implicitly discounted price, for this set of capabilities. Customers who use this “foundation” may additional features (C++, Comm Apps, and Sim) by purchasing them from the other RSA PID 29 IBM Internal and Business Partner Use Only EOL: • RSM • RSA SE • Extension for MS. NET

IBM Software Group | Rational Val Props and Features: RSA (“foundation”) § Tame complexity: manage, de-risk, and future-proof your IT solutions; deliver and demonstrate more value to the business § Focus on what's important and communicate it faster and more precisely § Manage risk, quality, and change more § General modeling with the industry's most robust support for UML 2. 2 and a configurable modeling environment that can be tailored to expose "just enough" UML based on role, model, life-cycle phase, and current task § Business modeling with BPMN 2 § Requirements integration, with end-to-end traceability and impact analysis § Model analyses and metrics; extensible query and analysis frameworks § Model reporting with BIRT § Rich SCM integrations, model compare-merge, and extensible team modeling framework § Rapidly develop custom software factories – Quickly create UML-based domain-specific modeling languages tailored to effectively; flush out and better understand requirements; enable more accurate planning and estimating your problem and solution domains – Use graphical mapping tools to quickly development model-to-model transformations – Use exemplar-driven pattern capture tools combined with a rich JET authoring environment to quickly develop model-to-text/code transformations § Maintain more effective control of architecture and delivery outcomes § IBM® Info. Sphere® Data Architect; IBM® Rational® Requisite Pro; IBM® Rational® Asset Manager; IBM® Rational® Team Concert; IBM® Rational® Clear. Case; IBM® Rational® Clear. Quest (shell-share); IBM® Rational® DOORS (third-party integration); IBM Rational System Architect; IBM Rational Requirements Composer § Effectively manage and re-use solution architectures and architectural building blocks § Manage evolution of, and adherence to, design Lifcycle integrations § contracts as development is carried out by geographically and organizationally distributed teams Built-in transformations UML object model to SQL logical data model (IBM Info. Sphere Data Architect); UML to XSD; XSD to UML; UML to Java, Java to UML; UML to JPA, JPA to UML; UML to C#, C# to UML; UML to VB. NET, VB. NET to UML; UML to CORBA § § Focus on creative aspects of solutions and avoid mundane, repetitive work 30 Graphical editors: Java; C#; VB. NET; XSD; WSDL § Java architectural analysis, review, and metrics tools § Cloud Client console for interacting with IBM Compute Cloud environments: connect to the Cloud environment and discover, provision, activate, and relinquish Cloud resources IBM Internal and Business Partner Use Only

IBM Software Group | Rational Val Props and Features: Simulation Toolkit § Execution of UML 2 Activity models § Get your architectures right § Execution of UML 2 Interaction models § Execution of UML 2 State Machines § Execution of opague behaviors expressed as UML Action Language (UAL) § Extends the value of IBM® Rational® Software Architect or IBM® Rational® Software Architect for Web. Sphere to provide advanced capabilities for requirements identification and validation, design review and validation, and front-end quality assurance § Visual animation of behavior diagrams during execution to expose runtime information –”Next to execute” –Tokens in activity diagrams –Active states in state charts –Executed elements in activity, sequence and state diagrams § Model-level debugging with detailed control of execution –Stepping commands –Breakpoints / ”Run to here” –Suspend, Resume, Terminate, Restart etc. –Injecting events during execution –Run-time prompting § Toplogy Tracing – when used in combination with the IBM Rational Software Architect Extension for Deployment Planning: enables you to see how messages exchanged between the participants in UML behaviors will flow across infrastructure nodes, when the behavior participants are mapped to the infrastructure using a deployment topology model 31 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Val Props and Features: Extension for SOA and Web. Sphere § The complete feature set of IBM® Rational® Application Developer for Web. Sphere Standard Edition § Deliver robust, scalable SOA with confidence § Extends the value of IBM® Rational® Software Architect to the delivery of Java Enterprise Edition solutions, SOA solutions, and solutions targeted to IBM Web. Sphere Application Server and IBM Web. Sphere Portal Server § Tools and guidance based upon lessons learned from hundreds of IGS SOA engagements § Tools for designing Java EE solutions: UML-to-EJB and EJB-to-UML transformations § Tools for building well-architected, scalable, business-driven SOA solutions – IBM® Rational® SOMA 2. 9 practice guidance: based on extensive IBM Global Services SOA engagement experience, this guides you through the processes and around the pitfalls of candidate service identification and service and solution specification –Integration with IBM® Web. Sphere® Business Modeler – opening process models automatically renders them as UML Activity and Use-case models that can them be used for identification of candidate services and specification of service interactions –Rich tooling, aligned to IBM® Rational® SOMA 2. 9 practice guidance, for identifying and specifying services using the OMG standard Soa. ML modeling language and Soa. ML-based modeling accelerators (micro-patterns of common service specification constructs that can be easily applied to services models to speed up the modeling process) –Transformations for harvesting service representations (e. g. To participate in model execution-based simulations) and for bottom-up discovery of candidate services: WSDL to UML; Plain-Old Java Object (POJO) to UML; EJB Session bean to UML –General purpose SOA realization transformations: UML Activity to Soa. ML; BPMN to Soa. ML; UML to WSDL/XSD, XSD to UML –SOA realization transformations that produce outputs consumable by IBM® Web. Sphere® Integration Developer, for developing solutions to run on IBM® Web. Sphere® Process Server: UML to Services Component Description Language; UML to BPEL –UML notation-based graphical editor for WSDL 32 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Val Props and Features: Extension for Integrated Architecture Frameworks § The UML Profile for Integrated Architectures (UPIA) to support rich graphical representations of business-level and environmental concerns that can be richly interconnected to requirements and representations of solution architectures § Ensure business-aligned outcomes § Leverage Integrated Architecture Frameworks and integration with requirements management to represent business concerns and richly interconnect them to the requirements and representations of your solution architectures § Extensive capabilities for supporting U. S Department of Defense Architecture Framework 2 (Do. DAF 2) including interchange via PES § A very flexible environment that can be extended to support additional architecture frameworks and their associated iconographies, queries, views, and reports § Import and translate business and enterprise architecture data so you can communicate them more effectively § Import data from comma-separated value files and spreadsheets § 33 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Val Props and Features: Extension for Deployment Planning § Deployment planning based upon semantically and visually § Improve delivery outcomes and reduce waste (muda) § Bridge the Development-Operations communication gap with semantically rich topology templates and deployment models rich deployment topology models § Integration with UML and Eclipse, enabling conceptual (UML, Soa. ML) or concrete (e. g. EAR, WAR) representations of to-bedeployed software to be mapped to deployment plans § Deployment planning tools that guide you to create plans that ensure the environmental and non-functional requirements of to-be-deployed software will be fulfilled by the correct infrastructure, correctly configured § Rich tool palettes that include representations of many § Ensure that your software solutions deploy correctly on the first attempt infrastructure technology domains and encapsulate extensive knowledge of the technology capabilities and configuration points § Ability to create and re-use infrastructure topology and deployment plan templates (patterns) to drive standardization and accelerate the deployment planning activity § Topology reporting with BIRT § Integration with IBM® Rational® Asset Manager for managing deployment templates, custom domains (palettes), and plans § Integration with IBM® Tivoli® Application Dependency Discovery Manager, to seed the creation of topologies and templates based on actual provisioned infrastructure and “live” configuration data registered in IBM® Tivoli® Change and Configuration Management Data Base 34 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Val Props and Features: Extension for Communications Applications § Smarter CEAs § Call Flow modeling § Extends the value of IBM® Rational® Software § Design of SIP call flows Architect or IBM® Rational® Software Architect for Web. Sphere to provide advanced design and delivery tools for solutions that include Communications Enabled Applications (CEAs) and integration of CEAs with back-end operational and billing systems (OSS/BSS) § Design of SIP and converged servlet applications § Generation of SIP servlets (extends the UML to Java transformations) § Reverse engineering of call flow models from recorded network traffic § Generation of SIP test sets for use with the open source SIPp testing tool § A complete Soa. ML model of the Parlay X specification that enables you to leverage the capabilities of IBM® Rational® Software Architect Extension for SOA and Web. Sphere to design and realize Telecom Web Services based on Parlay X § A sample model based on the TM Forum NGOSS SID model, with guidance for using the NGOSS models in development of telecom solution 35 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Val Props and Features: Rational Software Architect for Web. Sphere Software §All features of RSA § Delivers the combined value proposition of multiple IBM® Rational® IT Solution Architecture and Construction offerings in a single, convenient package with an implicitly discounted price point §All features of Extension for SOA and Web. Sphere §All features of Extension for Integrated Architecture Frameworks §All features of Extension for Deployment Planning §All features in the delta between RAD Standard Edition and full RAD • Java™ EE Connector (J 2 C) tools to help you create J 2 C client applications for CICS and IMS systems • Web. Sphere® Adapters tools that support the IBM® Web. Sphere Adapters runtime software to help you create client applications for SAP Software, Siebel Business Applications, People. Soft Enterprise, Oracle E-Business Suite, and JD Edwards Enterprise One • Line level code coverage, advanced code review and debug tools • Static problem determination tools (line level code coverage enhancements) • Dynamic problem determination tools: Debug tools for JEE 6, enhanced profiling • Collaborative debugging environment with integrations with IBM® Rational Team Concert that enables teams to share live debug sessions between team members 36 IBM Internal and Business Partner Use Only

IBM Software Group | Rational With all this goodness comes a little short-term pain… 37 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Floating License Price Changes § Traditional AU to FU ratio dating back to Rose: 1. 75 to 1 § New ratio for “lived in” offerings (RSA, RSA 4 WS): 2 to 1 § New ratio for “intermittently used” extensions: 2. 5 to 1 § Why did we change the “lived in” ratio? – we think this better reflects the value that customers in the aggregate are now getting from FU as compared to a decade+ ago, by virtue of teams being more distributed across geographies/time zones • From our point of view customers have been living on borrowed time for several years now – it brings RSA's ratios into line with Rhapsody's • In theory removing another price-based temptation to pitch RSA where Rhapsody might otherwise be a better fit 38 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Entitlement Migration Paths § These are free (entitled) migration paths that afford feature parity § In terms of maintenance renewals, these paths are as price-neutral as we could make them, except where our intent was otherwise (C++, floating licenses) Replacement offerings EOL offerings RSM (1 to 2) Extension for Integrated Architecture Frameworks $2070 AU list $1290 AU list RSA (“foundation” and on$990 AU list ramp) RSA SE (1 to 4) $2730 AU list Extension for C++ $2490 AU list RME for MS. NET Subsume d into Extension for Deployment $1290 AU list Planning $778 AU list RSA 4 WS (1 to 1) 39 $6310 AU list RSA for Web. Sphere Software $6690 AU list IBM Internal and Business Partner Use Only

IBM Software Group | Rational Operationalizing the Migrations § On August 20 all holdings of RSM and RSA SE will be converted into holdings of the entitled replacement offerings § As customers then come up for renewals they will be quoted the replacement renewal prices – Letters go out ~90 days in advance of anniversary date § “Sticker shock” will ensue 40 IBM Internal and Business Partner Use Only

IBM Software Group | Rational RSM Customers RSM (1 to 2) Extension for Integrated Architecture Frameworks $2070 AU list RME for MS. NET $1290 AU list Subsume d into $778 AU list RSA (“foundation” and on$990 AU list ramp) § 10% price increase for AU § 46% price increase for FU § ~ 23, 000 licenses, ~ 500 points of purchase, average of ~ 45 renewal events per month § “Sticker shock” mitigation tactics: – Let them drop Extension for IAFs altogether (not desirable) – Let them drop some AU Extension for AU and trade some for FU to reduce cost overall – If IAFs simply isn’t interesting but something else at same price point such as Deployment Planning might be, do “on request migration” to accomplish a lateral swap – Special bid to cap maintenance increases at some level >= 10% Yo. Y until customer “catches up” – Floating: special bid trade-down to AU if they don’t think they can provision more than 2 users per FU license 41 IBM Internal and Business Partner Use Only

IBM Software Group | Rational RSA SE Customers Extension for Integrated Architecture Frameworks $1290 AU list RSA (“foundation” and on-ramp) $2730 AU list $990 AU list RSA SE Extension for C++ $778 AU list RME for MS. NET Subsumed into $2490 AU list Extension for Deployment Planning $1290 AU list § 222% price increase for AU § 306% price increase for FU § <3, 000 licenses, < 200 points of purchase, average of ~15 renewal events per month § “Sticker shock” mitigation tactics: – Encourage them to drop C++ if they don’t use it – Let them drop other extensions altogether if necessary (not desirable) – If IAFs and Deployment Planning simply aren’t interesting but Sim is or SOA/WS is, do a special bid two-for-one “trade down” – Special bid to cap maintenance increases at some level >= 10% Yo. Y until customer “catches up” 42 IBM Internal and Business Partner Use Only

IBM Software Group | Rational RSA for Web. Sphere Customers RSA 4 WS (1 to 1) RSA for Web. Sphere Software $6690 AU list $6310 AU list RME for MS. NET Subsume d into $778 AU list § 6% price increase for AU § 22% price increase for FU § ~55, 000 licenses skewed to ~55% floating, ~1500 points of purchase, average of ~100 renewal events per month § “Sticker shock” mitigation tactics: – Special bid to cap maintenance increases at some level >= 10% Yo. Y until customer “catches up” 43 IBM Internal and Business Partner Use Only

Supplemental IBM Internal and Business Partner Use Only

IBM Software Group | Rational Businesses are facing unprecedented challenges Globalization Shifts from Operational to Strategic IT Differentiation Business Continuity Management Business transformations Regulatory mandates Market shifts Continual customer innovation 45 Mergers and Acquisitions IT Saturation Transparency, Regulatory Compliance IBM Internal and Business Partner Use Only 45

IBM Software Group | Rational Customers value architecture in multiple ways CIO EA Portfolio Manager Solution Architect Business Analyst • Cost reduction • Risk reduction • Time to value • Time to market Enterprise Architecture expresses and helps reveal business needs Developer Tester • Flexiblility & robustness to enable future innovation • Standardization • Automation • Reduced defect injection Solution Architecture enables those business needs to be met by facilitating better collaboration. Operations among the various stakeholders. Manager Deployment Project Specialist • Clarity • Productivity • Time to release Maintenance • Problem determination efficiency • Defect closure rate 46 Project Systems Manager Engineer IBM Internal and Business Partner Use Only

IBM Software Group | Rational Architecture Landscape: Variants of Scope and Purpose Strategy / Initiatives / Architectural Governance Solution Portfolio / Product Lines Projects Asset Portfolio Management Enterprise Breadth – “Something of Everything” Portfolio Optimization Program Management PLM Non-Project-Specific Operational Monitoring and Management Focus – “Everything of Something” Deliveries 47 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Architecture Landscape: Multiplicities, Planning Cycles Manage transformation A y teg tra tion d s iva tan ot ersand m d Un ze riti rio dp an Report and ze ly adjust na A A ti ma for ns t s dju on rt po Re a nd a A. C. 1 A. B. 1 IBM Internal and Business Partner Use Only nal y p z rio e and riti ze tra A. A. 1 A. C. 1 48 R ge na Ma ge ion na at Ma form ns tra d an ort ust p Re adj Projects A. C epo adj rt and ust A. A Key point: planning and execution cycles at these levels are somewhat A. B asynchronous Un der s and strat tand m e oti gy vat ion nd ea e lyz ritiz a An prio d an rst y de teg ion Un stra tivat o dm an Solution Portfolio / Product Lines n Enterprise M tra ana ns for ge ma tio Understand strategy and motivation Analyze and prioritize

IBM Software Group | Rational 49 IBM Internal and Business Partner Use Only Developers Systems Engineers Data Architects Key point: different architectural concerns deserve best-of-breed point tools Operations/IT Architects Software Architects Projects Additional differences may include things like preferred representation formats. Solution Architects Solution Portfolio / Product Lines Enterprise Architects Business, Systems Analysts Enterprise Business and IT Management Stakeholders Architecture Landscape: Roles

IBM Software Group | Rational Overlay: IBM Offerings Enterprise System Architect, Focal Point, RAM EA Solution Portfolio / Product Lines WBM, IDA, RSA IT RSA, RBD “Complex Systems of Systems” Rhapsody Projects EM Systems 50 IBM Internal and Business Partner Use Only

IBM Software Group | Rational Overlay: TOGAF 9 Enterprise 51 § all strata and sub-architectures are interdependent § explicit interconnections make them more actionable § the best-of-breed point tools must be well integrated IBM Internal and Business Partner Use Only Technology Architecture Data Architecture Key points: Application Architecture Projects Business Architecture Solution Portfolio / Product Lines Enterprise Continuum

IBM Software Group | Rational Representations of architecture are the glue of the lifecycle… 52 IBM Internal and Business Partner Use Only