Purpose: The slides provide an overview on the Systems Infrastructure marketplace Content: Summary information about the Systems Infrastructure marketplace, including trends drivers, spending trends, industry business cases, and adoption challenges. Also included are links to additional resources. How To Use This Report: This report is best read/studied and used as a learning document. You may want to view the slides in slideshow mode so you can easily follow the links Available on Slideshare: This presentation (and other Trend Reports for 2017) will be available publically on Slideshare at http://www.slideshare.net/horizonwatching Please Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

1. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Trend towards cloud continues causing shifts within the market
Richard DiBlasio – Advisor, Systems Marketing & Strategy, MD&I
Steve Gessner – Manager and Distinguished MI Professional (DMIP), IBM Systems Unit, MD&I
Bill Chamberlin, Distinguished Market Intelligence Professional, MD&I HorizonWatch
February 18, 2017
Systems Infrastructure Trend
Report, 2017

2. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
About This Trend Report
15Feb2017
 Purpose: The slides provide an overview on the Systems Infrastructure
marketplace
 Content: Summary information about the Systems Infrastructure
marketplace, including trends drivers, spending trends, industry business
cases, and adoption challenges. Also included are links to additional
resources.
 How To Use This Report: This report is best read/studied and used as a
learning document. You may want to view the slides in slideshow mode so you
can easily follow the links
 Available on Slideshare: This presentation (and other Trend Reports for
2017) will be available publically on Slideshare at
http://www.slideshare.net/horizonwatching
 Please Note: This report is based on internal IBM analysis and is not meant to
be a statement of direction by IBM nor is IBM committing to any particular
technology or solution.
2 Systems Infrastructure Trend Report, 2017 (External Version)

3. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Infrastructure buyers continue to adopt cloud, causing
shifts throughout the information technology market
• IT leaders are increasingly turning to cloud as the platform of choice. They indicate the key
benefits of cloud as driving cost savings, growth, innovation and efficiency. An increasing
number of IT decision makers believe that Cloud Service Providers (CSPs) can secure their it
environments better than they can themselves.
• Cloud Service Providers (CSPs) are the largest purchasing segment. By 2019, expect almost
50% of all IT infrastructure purchases will come from CSPs
• Expanding service delivery options are enabling IT execs to be more strategic and to act as
consultants to help grow the business. They are no longer considered as “IT plumbers”
• Top challenges of IT leaders include: deciding how and what to transition to the cloud, cloud
integration, obtaining business buy-in for their cloud strategies, replacing obsolete technology,
and of course, security
• When it comes to purchasing infrastructure, both IT and business leaders are becoming more
involved together in researching, evaluating and decision making. When it comes to business
leaders, COOs and operational execs are the most consistently involved. CIOs are most
involved in identifying/prioritizing needs and making final infrastructure investment decisions.
• Recent advances in IT are giving birth to new and innovative technologies, including
Hyperconverged Infrastructure, Software Defined Systems and Machine learning. In 2017,
leading enterprises will look to leverage these new technologies in order to gain a competitive
advantage
• IT Vendors are reacting to shifts in the marketplace by divesting parts of their own business or
acquiring others in order to prepare for the next generation of IT
Key Insights
15Feb2017 Systems Infrastructure Trend Report, 2017 (External Version)3

4. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Trends to Watch in 2017
4
The shift to cloud continues. Cloud is becoming the
preferred choice for IT departments who are expected
to innovate, drive growth and align tech with business
objectives. Outsourcing IT department services is
expected to be easier to maintain, more scalable and
cost-beneficial. In addition, resources required to
maintain on-premise infrastructure are becoming too
complex and hard to staff with skilled resources.
x86 architecture now dominates server sales.
Enterprise IT departments enjoy the ease-of-use and
price of x86 architecture. x86 servers can be added as
needed at a low cost.
The Growth of Linux. The use of Linux continues to
grow. IT departments report that Linux allows for more
flexibility and control than other operating systems.
Hyperscale Servers and Datacenters. In 2017,
expect increased demand for hyperscale server
systems and data centers. Most services providers
prefer hyperscale data centers already. In addition,
some large enterprises are building their own
hyperscale data centers as a result of the increased
use of IT Infrastructure as a source of innovation.
Common: Why x86 Servers Continue to
Dominate the Data Center
Market Trends
15Feb2017 Systems Infrastructure Trend Report, 2017 (External Version)
“Digital business models are being enabled by
mobile, cloud, social, and big data, and they are
more often than not being deployed on
hyperscale infrastructures running in greenfield
hyperscale datacenters. These datacenters are
rapidly becoming the foundation for new
business models that seek to transform a wide
range of industries by directly and pervasively
connecting customers to new business services.”
Matt Eastwood, senior vice president, Enterprise
Infrastructure and Datacenter research, IDC
IBM: Learn About The Top Five Trends To
Watch In Cloud Computing During 2017

5. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Trends to Watch in 2017 (continued)
5
Market Trends
15Feb2017 Systems Infrastructure Trend Report, 2017 (External Version)
451 Research: 40% of Enterprises Are
Using Hyperconverged Infrastructure
Hyperconverged Systems. Hyperconverged
hardware is expect to grow rapidly. Businesses enjoy
the agility, reliability, ease of deployment and ease of
use of converged/hyperconverged systems
Software Defined Storage. Expect continued growth
and demand for software defined storage platforms.
This increased demand can be traced to a shift toward
server-based storage solutions that rely on software for
data persistence and management.
Flash Storage. Enterprises enjoy the speed of
delivery, uptime and reliability of flash storage. That
combined with the fact that prices have decreased in
recent years will result in continued growth for flash
storage products
Innovation in Memory. In 2017, look for greater
interest in Storage Class Memory (SCM) and Non-
Volatile Memory Express (NVMe). SCM offers a new
type of storage that is cheaper than DRAM but faster
than Flash, introducing a new storage tier. NVMe is the
communication protocol between the compute and
storage
IBM Redbooks: IBM Software-Defined
Storage Guide
“Although flash’s performance is what
captured the IT audience’s
imagination, it is the technology’s
remarkable advances in economic
value that have made flash into a
storage juggernaut.” IBM: To Achieve
True Data Agility, Consider a Move to All-Flash
Arrays

6. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Challenges include security, transitioning to cloud,
replacing obsolete technology and staffing issues
6
Security. Security continues to be top of mind. Enterprises are
finding it hard to secure an increasingly complex systems
infrastructure environment. There is a desire to move to emerging
technologies, but there is resistance because of perceived security
risks.
Deciding how and what to transition to Cloud. Enterprises report
they need help determining the criteria for what to move to cloud and
then a project plan for how to move services to cloud. They also
need help balancing the on-premises infrastructure with what has
been moved to cloud.
Replacing obsolete technology. Many IT departments express
that they have challenges related to replacing old cable wiring,
switches, and other datacenter hardware that can’t handle the latest
technology. Some of these challenges include preparing business
case and ROI presentations that can convince senior management
to budget for and approve funding to proceed.
Internal and external staffing. Technology gets more complex
every day. Most IT leaders say finding and retaining skilled talent is
an ongoing challenge. Once new technology is implemented, it is a
tremendous challenge to get people trained on that new technology.
Integration. IT leaders report that integration is getting more
complex. Integration today includes the requirement to integrate
multiple systems and data storage sources whether on premise or
off-premise
Market Trends
15Feb2017 Systems Infrastructure Trend Report, 2017 (External Version)
“The disruptive nature of cloud
computing is continuing to challenge
technology management, including
I&O teams. The cloud market will
accelerate even faster in 2017, as
enterprises are leveraging cloud
computing to power their core
business systems and customer-
facing applications” Forrester
“The accelerating convergence of
IaaS and PaaS into a service model
combining the two will disrupt
existing markets.” Gartner: The
Convergence of IaaS and PaaS Cloud
Services
“As enterprises continue to focus on
implementing a cloud infrastructure,
many still face roadblocks when it
comes to hiring candidates with the
right skills.” CIO
TrustWave: 57% of IT Security
Professionals Struggle to Find Talent

7. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
IBM Websites and Resources
IBM Portals
 IBM IT Infrastructure
 IBM Systems Blog
 IBM Software-defined Infrastructure
 IBM Infrastructure Solutions
 IBM Systems Magazine
 IBM Cloud Infrastructure
IBM Research
• Cloud & Computing Infrastructure
• Computing as a Service
IBM Press Kits
• Power
• Z Systems
• Software Defined
• Cloud
Website: Systems Magazine
Important Links
15Feb2017 Systems Infrastructure Trend Report, 2017 (External Version)7
IBM: Broker Software and Cloud Services
with IBM Cloud Brokerage
“Software Defined Infrastructure helps
transform a static IT infrastructure into a
dynamic resource, workload and data-aware
environment. Application workloads are
serviced automatically by the most
appropriate resource running locally, in the
cloud, or in a hybrid cloud environment.”
Gartner: Software Defined Infrastructure

8. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
External analyst public websites and resources
 Forrester: Data Center Infrastructure Management
 Forrester: Converged Infrastructure
 Forrester: IT Infrastructure (blog)
 Forrester: Cloud Infrastructure
 Gartner: Systems Infrastructure
 Gartner: Cloud Infrastructure
 IDC: Systems Infrastructure
 IDC: Software Defined
 IDC: Cloud Infrastructure
 451Research: Infrastructure Management
 451Research: Cloud Infrastructure
Important Links
15Feb2017 Systems Infrastructure Trend Report, 2017 (External Version)8
Gartner: Four Megatrends Impacting
the Data Center
“Hardware is not just hardware anymore. To
attain the flexibility and speed necessary
today, infrastructure is software-defined. The
actual hardware is hidden beneath layers of
software to abstract the functions and
accelerate deployment and adaptation.”
Robert Stroud, Forrester Analyst

9. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Media & Association Websites and Resources
 Bloomberg: 5 trends for cloud computing and the
data center in 2017
 CIO Today: Infrastructure-as-a-Service Predictions
for 2017
 ComputerWeekly: Storage predictions 2017: Hyper-
converged to march on, and get NVMe
 ComputerWorld: 2017: The Year of Serverless?
 Data Economy: 6 Data Centre Infrastructure Trends
For 2017
 Federal News Radio: Hyper-converged platform,
infrastructure – A game changer for government?
 Information Age: Enterprise storage in 2017: trends
and challenges
 NetworkComputing: 4 Software-Defined Storage
Trends
 NetworkWorld: 7 Linux predictions for 2017
Important Links
15Feb2017 Systems Infrastructure Trend Report, 2017 (External Version)9
Forbes: How To Transform Your Business
Quickly? Try A Hybrid Cloud Solution
“Automation, quantum computing and the
Internet of Things are among the trends
that will influence the server market in
2017.” Information Age

10. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
IBM Social Sites and Platforms
Important Links
15Feb2017 Systems Infrastructure Trend Report, 2017 (External Version)10
Systems
• Blog: IBM Systems Blog
• Twitter: IBM Systems
• YouTube: IBM Systems
• LinkedIn: IBM Systems
Storage:
• YouTube: IBM Storage
• Twitter: IBM Storage
• LinkedIn: IBM Storage
• Blog: Inside System Storage
Cloud
• Thought Leadership Blog: Thoughts on Cloud
• DeveloperWorks: Blogs tagged cloud
• Twitter IBMCloud / Hashtags: #ibmcloud / #smartcloud
• Facebook Page: IBM Cloud
• Instagram: Posts tagged #ibmcloud
• YouTube: IBM Cloud
• Google+ page: IBM Cloud Computing
• LinkedIn Group: IBM Cloud Computing
• Developerworks: Connect and Collaborate on Cloud Topic
Blog: IBM Systems Blog

11. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
More Insights on Technology Trends are Available
11
Other slide decks in this Trend Report series have been posted to Slideshare
You are also invited to check out the following IBM websites and resources
– IBM Academy of Technology
– IBM Institute for Business Value
– IBM Research and Research News and 5 in 5
– IBM’s THINK blog
– IBM Think Academy on YouTube
15Feb2017 Systems Infrastructure Trend Report, 2017 (External Version)