IBM's cloud computing solutions improve capital utilization, reducing the excessive infrastructure costs associated with underutilized IT resources. They provide elastic scalability and accelerate time to value. They help increase agility and responsiveness to changing business conditions and foster innovation. IBM provides clear economic value and helps financial institutions work through the right mix of delivery models and choices (by workload) to reap the maximum benefit.

1. Anthony Lipp – Global Strategy Leader, Banking & Financial Markets
August 2010
Cloud Computing
© 2010 IBM Corporation

2. Building a smarter planet
There are dramatic forces shaping the financial
services industry
Economy Trust
Weak conditions impact Rebuilding trust and
investment decisions and confidence across the
reduce need for financial system is critical to future
services growth and stability
Competition Regulation
Intensified competition with Radically increased
increased M&A, divestitures oversight ushering in a new
and entrance of non-bank era of increased
service providers government intervention
Clients Capitalization
Rapidly evolving Mature markets and
expectations for offerings, emerging markets alike
service unbiased advice, focus on rebuilding their
and convenience capital reserves
2 © 2010 IBM Corporation

3. Building a smarter planet
The global financial system is highly complex with
many stakeholders and requires new approaches
to create value
 The global financial system is massively
interconnected and interdependent Financial
 An adaptive system which is a complex institutions
network – evolving organically
 The number of intersection points of the Compliance Surveillance
financial services networks across the 18 and monitoring
largest countries increased 14x in 20 years1 Soundness
Regulators Stability Supervisors
 The system moves more than $74T
around the world each day
Laws and
 Digitization of the “real economy” has rules
Standards
transformed availability of information
and how decisions are made Policy makers
 Anonymity and susceptibility make the
system an attractive target for criminal
elements
 The system intermediates the needs of
billions of people in 190 countries — in
thousands of languages.
3 1 – Rethinking the Financial Network, Andrew Haldane, Executive Director, Financial Stability, Bank of England © 2010 IBM Corporation

4. Building a smarter planet
Winners are enabling themselves by a new
business infrastructure that is more instrumented,
interconnected and intelligent
Instrumented Interconnected Intelligent
Advanced capture, tracking and Integrated capabilities Predictive client analytics
control of digitized transactions Social networking and online Real-time alerts
and information collaboration
 Enterprise view of data, automated
 Real-time capture and view of
 Banks systems connecting to modeling and predictive analytics
continuously streaming data of
governments and regulators in to provide greater client and business
multiple types and from multiple
new, smarter ways to identify risk insight.
sources enabling quicker insight
concentrations and, thereby, improve
and, therefore, faster time-to-market
insights around systemic risk issues  Real-time alerts of performance
and higher margins
and global inter-dependencies problems with insights into the

source systems and applications
 Tracking and detecting the
 Engaging customers as co- as well as analysis of impact on
requirements of transaction
developers through social networking business processes and service
messages in real-time, enabling
and online collaboration to tailor levels.
automatic routing of payments
products and services on demand
through least-cost channels
4 © 2010 IBM Corporation

5. Building a smarter planet
As the planet gets smarter the information
explosion and rapid change create new challenges
10x 55K PB/Mo
Digital data is projected to grow Global Internet traffic volume
tenfold from 2007 to 2011 expected by 2013
1 trillion 83%
Number of devices will be Percentage of CIOs who expect
connected to the Internet by to face substantial change over
2011 the next three years
© 2010 IBM Corporation
3

6. Building a smarter planet
Today’s IT infrastructure is under tremendous
pressure and is finding it difficult to keep up…
It will reach a breaking point
66% 82%
66 percent is spent on Percentage of executives who
maintaining current IT report a security breach and
infrastructures versus adding aren’t confident they can prevent
new capabilities future breaches
78% 85% idle
Percentage of CIOs who want In distributed computing
to improve the way they use environments, up to 85 percent
and manage their data of computing capacity sits idle
6 © 2010 IBM Corporation

7. Building a smarter planet
There is a greater need for IT to help address
business challenges
Doing more with less Higher quality services
Reducing risk Breakthrough agility
7 © 2010 IBM Corporation

8. Building a smarter planet
There are three ways to acquire IT capabilities
Software, Pre-integrated Provided
hardware systems and as services
and services appliances
Cloud computing is a new delivery and consumption model
or methodology spanning all 3 ways.
8 © 2010 IBM Corporation

9. Building a smarter planet
What is different about cloud computing?
Without cloud With cloud computing
computing  Virtualized resources  Location independent
 Automated service  Rapid scalability
management  Self-service
 Standardized services
• Software • Software
• Hardware • Hardware
• Storage • Storage • Software • Storage
• Networking • Networking • Hardware • Networking
Service Management Service Management Service Management
9 © 2010 IBM Corporation

10. Building a smarter planet
There is a spectrum of deployment options for
cloud computing
Private Public
IT capabilities are provided “as a IT activities / functions
service,” over an intranet, within the are provided “as a service,”
enterprise and behind the firewall over the Internet
Enterprise Enterprise Users
Enterprise Enterprise
data center data center A B A B
Managed Hosted private Shared cloud Public cloud
Private cloud private cloud cloud services services
Third-party Third-party hosted
operated and operated
Hybrid
Internal and external service delivery methods are integrated
10 © 2010 IBM Corporation

11. Building a smarter planet
Public and Private Clouds are preferred for
different workloads
Database and application-oriented Infrastructure workloads emerge as
workloads emerge as most appropriate most appropriate
11 Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090 © 2010 IBM Corporation

12. Building a smarter planet
Cloud computing framework
Application infrastructure Business services Integrated
for delivering cloud delivered via the cloud capabilities for
services visibility, control,
IT services that are Cloud-based business automation and
integrated with cloud solutions for industry- security of cloud
services specific processes services
Existing services and
Business planning / lifecycle
Industry-specific services
management and security
third-party services,
management services
Integrated service
partner ecosystems
Process Collaboration Analytics
services services services …
Shared middleware services
Infrastructure services
Capabilities to define an
Virtualized and enterprise architecture for
optimized systems business planning/alignment
storage and networking and tools for managing the
lifecycle of cloud services
12 © 2010 IBM Corporation

13. Building a smarter planet
Ready-to-consume cloud services from IBM
IBM Smart Business on the IBM Cloud
Business processes  BPM BlueWorks  Smart business expense
reporting on the IBM Cloud
Collaboration  IBM LotusLive
Desktop and devices  IBM Smart Business Desktop on the IBM Cloud
 IBM Smart Business End User Support
Development and test  IBM Smart Business Cloud for development and test
Infrastructure Compute  IBM Smart Business Cloud  IBM Managed Security Services
for production workloads  IBM Tivoli Live
Infrastructure storage  IBM Information Protection Services
Software as a Service  IBM WebSphere  IBM DB2
Application Server  IBM Informix Dynamic Server
 IBM WebSphere sMash  Lotus Domino
 IBM WebSphere Portal  Lotus Web Content Mgmt
13 © 2010 IBM Corporation

14. Building a smarter planet
Businesses that implement cloud computing
services from IBM are seeing significant results
Large Financial Large Financial Large Global Large Financial
Services Services Provider Payments Services Provider
Provider in Asia in South Africa Provider in the United States
Risk & Capitalizing on Time to Value Smart Business
Compliance new efficiencies Creates an Test Cloud
30,000 + employee Reduced labor and ecosystem for 3rd Created a self-
bank deploying a infrastructure need to Party developers. service, flexible and
private cloud from develop and deploy secure environment
IBM to centralize new services. Reduces to develop, port, test
management of developer effort to and validate their
desktops via an Decreased new deploy a work software on standard
enterprise class data application deployment environment with systems and
center rather than at time from 10 weeks to seamless. middleware.
the user stations. less than 1 week.
Improved time to
Gets greater remote Accelerated business market, higher
flexibility without transformation. quality and reduced
sacrificing control. costs.
14 © 2010 IBM Corporation

15. Building a smarter planet
Making cloud computing real
New Business Demanding New Need
economics flexibility greater technology solutions
experiences
with new results from speed, that work
with faster
trade-offs IT flexibility control, time to and are
security and market supported
transparency consistently.
Clear Secure and Designing
Integrated Globally
economic ready for for
and open relevant
value business simplicity
15 © 2010 IBM Corporation