International Business Machines Corporation · NYSE:IBM
International Business Machines — IBM — Investor Presentation (November 2018)
20 slides from International Business Machines's investor presentation, Nov 12, 2018
Slide 1: IBM Cloud Investor Briefing
IBM Cloud Investor Briefing November 12, 2018
Slide 2: Forward looking statements and non-GAAP information
Forward looking statements and non-GAAP information Certain comments made in this presentation may be characterized as forward looking under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company’s current assumptions regarding future business and f
Slide 3: Today's participants
Today’s participants a" Mark Foster Senior Vice President, Global Business Services ir Martin Jetter Senior Vice President, Global Technology Services Arvind Krishna Senior Vice President, Hybrid Cloud and Director, IBM Research
Slide 4: Our clients are facing an urgent imperative to undertake significant business transformation
Our clients are facing an urgent imperative to undertake significant business transformation Digital and Cognitive Transformation Journey Journey to AI Journey to Cloud Journey to Security
Slide 5: IBM has unique capabilities to help our clients drive cloud-enabled business transformation
IBM has unique capabilities to help our clients drive cloud-enabled business transformation « Comprehensive business and technology skills and assets * Co-creation of new business platforms ¢ Orchestration of the end-to-end journey * Transformation of customer experiences, workflows, applications an
Slide 6: The market opportunity continues to shift toward cloud, with growth in both private and public
The market opportunity continues to shift toward cloud, with growth in both private and public Total IT Opportunity ~$1.7T in 2020 Total Cloud Opportunity ~$1.0T in 2020 Traditional ~$0.6T -8% CAGR (18-20) Private ~$0.4T 16% CAGR (18-20) Cloud ~$1.0T 18% CAGR (18-20) Public ~$0.6T 20% CAGR (18-20) S
Slide 7: Most enterprises are in the early phases of their transformation
Most enterprises are in the early phases of their transformation A Large European Bank Enterprises are ~15 — 20% along their Cloud journeys 24% Traditional 60% . mi Private 87% 61% mi Public BUS - 3% 2018 2019-2020 2021-2022 Grow cloud Increase cloud —_ Scale cloud within maturity scope based on the
Slide 8: IBM's cloud strategy uniquely drives value for enterprise clients
IBM’s cloud strategy uniquely drives value for enterprise clients Secure Provide reliability and continuous security for the client’s environment Management Consistent service level, support, logging, management and delivery across complete cloud environment
Slide 9: Westpac and American Airlines
Westpac Implementing a fully integrated, hybrid cloud to deliver services to 13+ million banking customers Hybrid — traditional, private, public — for greater agility, flexibility, and operational efficiency Application implementation that is 10x faste! 3x as cost effective A secure environment that
Slide 10: IBM's end-to-end approach is helping clients with their journey to cloud
IBM’s end-to-end approach is helping clients with their journey to cloud Hybrid Leading Technology, Platforms and Services Multicloud Open Advise Move Manage Govern on to on and Cloud Cloud Cloud Optimize Secure Management
Slide 11: IBM has built a strong cloud foundation
IBM has built a strong cloud foundation Offerings Capabilities Talent IBM Cloud: private, dedicated, public Cloud Advisory and Migration practices Application modernization Digital Workplace, Network, Resiliency, and Security Services IBM Cloud Private, IBM Multicloud Manager, IBM AI Openscale, et.a
Slide 12: Red Hat builds on this foundation and has evolved from an open source pioneer
Red Hat builds on this foundation and has evolved from an open source pioneer to a driving force in hybrid cloud computing Pioneer of enterprise Linux Foundational technology for and open platforms hybrid computing Wide enterprise adoption Common platform across all environments Broad partner ecosys
Slide 13: IBM and Red Hat are highly complementary
IBM and Red Hat are highly complementary HYBRID MANAGEMENT, ORCHESTRATION & SECURITY IBM MIDDLEWARE, IBM CLOUD PRIVATE FOR DATA (ENABLED WITH IBM CLOUD PRIVATE & RED HAT KUBERNETES) IBM CLOUD PRIVATE D PRIVATE PLATFORM SERVICE GTS MULTICLOUD MANAGEMENT PLATFORM INTEGRATED CATALOG, DEVELOPMENT & OPER
Slide 14: IBM and Red Hat join forces to accelerate hybrid cloud adoption
IBM and Red Hat join forces to accelerate hybrid cloud adoption Certified IBM middleware on IBM Cloud Private for deployment on Red Hat containers and Red Hat OpenShift IBM middleware integrated with open source under one common platform, fully supported from the hypervisor through client apps IBM m
Slide 15: IBM and Red Hat together drive significant benefits to clients
IBM and Red Hat together drive significant benefits to clients Benefits to IBM Benefits to Red Hat Acceleration of hybrid cloud adoption Leverage industry expertise and scale Extensive developer ecosystem Accelerate expansion of open source portfolio Cross-sell and Expand reach of open technologies
Slide 16: IBM and Red Hat will accelerate hybrid multicloud adoption
16 IBM and Red Hat will accelerate hybrid multicloud adoption *. Cloud Consulting, i Migration and Application Modernization Dedicated Clouds Private Clouds Managed Services and Support Traditional IT IBM Analytics and AI on multiple clouds
Slide 17: Red Hat acquisition creates cross-selling and new revenue opportunities across IBM
Red Hat acquisition creates cross-selling and new revenue opportunities across IBM Global Business Global Technology Services Services v Vv Client application modernization Vv Manage clients’ hybrid multicloud environments Vv] Consistent hybrid multicloud environment v7] Vv v7] alytics, data and AI
Slide 18: Top misconceptions of IBM and Red Hat acquisition
Top misconceptions of IBM and Red Hat acquisition 18 Red Hat is dependent upon an on-premise model There are other versions of Kubernetes available, which make the Red Hat growth opportunity less attractive IBM’s acquisition of Red Hat will damage the open source community IBM cannot capture the cro
Slide 19: Key takeaways
19 Key takeaways Cloud is integral to enterprises’ digital transformation Hybrid cloud is a $1 trillion opportunity IBM’s end-to-end differentiated approach is hybrid multicloud for the enterprise Red Hat acquisition drives new growth opportunities across IBM IBM will become the #1 hybrid cloud prov
Slide 20: Slide 20