© 2009 IBM Corporation IBM Global Technology Services IBM GTS Storage and Data Services Storage Growth Model and Refresh Backlog for Business Partners

© 2009 IBM Corporation

IBM Global Technology Services

IBM GTS Storage and Data Services

Storage Growth Model and Refresh Backlog for Business Partners

Module 1 of 2

John Beischer

Evan Salop

01 July, 2009

John Beischer

Evan Salop

01 July, 2009

2



Objective

This presentation presents information that: Clients have to migrate data today and will have to migrate even more data as time

goes by.

Clients and business partners receive significant value in keeping on schedule with technology refreshes and associated data migrations.

The information in this deck can be used by a business partner to determine the clients immediate, future, and total migration requirements, develop a proposal for a solution to meet the client’s needs, AND make some money.

The material is presented in two parts:

I. Module One: Provides a review of the data migration concepts and an in-depth discussion of the Storage Growth Model process.

II. Module Two: Focuses on the refresh backlog, its impact on BP revenue/margin, and resource information including contacts, tools, and links.

3



Module One – Agenda

Data migration concepts review

Storage growth model process

– Part I – how much data do I have to move now?

– Part II – how much data will I have to move later? What is the ROI from leveraging IBM solutions?



Review data migration concepts:Why WhatHowWhenSolution

5



Business drivers and technology trends are causing clients to plan and execute specific IT infrastructure initiatives

Typical Business Drivers Mergers and Acquisitions Business Transformation Budget Pressures Escalating Energy Costs New Business Applications 20,000 Compliance Regulations

Worldwide

Technology Trends Green Data Center Intelligent Infrastructure New Enterprise Data Center Infrastructure Optimization Virtualization 24x7 Availability

IT Infrastructure Initiatives

• Technology Refresh

• Infrastructure Optimization

• Hardware Consolidation

• Data Center Relocation / Consolidation

6



In order to achieve these objectives, clients are executing specific IT infrastructure initiatives…which cause our clients to HAVE TO migrate data

Infrastructure Optimization

25%

Consolidations15%

Relocations10%

Tech Refresh50%

Source: Softek Market Research

Tech Refresh: (Technology Refresh/Lease Expirations): Customer must migrate existing data from the old storage arrays to the new storage arrays before the old storage arrays can be removed.

Operational/Infrastructure (Optimization): Redesigning or adjusting the storage architecture to improve efficiency and performance, or to accommodate new or updated applications. Data must be migrated to implement these environmental changes.

Consolidations: Customer consolidates many smaller servers (with attached storage) or storage arrays to fewer larger servers and larger storage arrays. Customer must migrate existing data from the old devices to the new devices before the old devices can be removed. Typically local migrations.

Relocation: Customer relocates storage from one or many existing data center locations to one or many alternate data center locations, most often when the customer wants to reduce the number of data center locations. Customer must migrate existing data located in the existing data centers to the new data center(s) before the old data centers can be shut down and the new data center(s) can be active. Typically distance migrations.

7



What is data?

Storage capacity: In any customer environment, storage capacity can be classified into three broad categories: Raw (or Procured) Capacity: This is the total storage capacity of all the storage

devices in the customer’s environment.

Usable Storage: Usable (also referred to as Allocated on the mainframe) is defined as follows: Subset of raw capacity that can have data written to it for productive use. Usable Storage is raw capacity less capacity that cannot be written to but that, nonetheless, consumes disk capacity. Examples of non-productive capacity are operating/file systems, journaling, parity, RAID, mirroring, formatting, and spare drives.

Written Data: The subset of Usable Storage that has data written to it.

RawCapacity

Usable Storage

Written Datadata

empty

system

8



What is data migration?

PLAN MOVE VALIDATE ASSESS

Services Software and Services

Services Services

Data migration is a process that includes:

Assess…..What and how much data must be moved from source environment to target environment

Plan………How data is moved from source to target environment

Move……..Move data from source to target environment

Validate…..Verify data was successfully moved as planned from source to target environment

9



Customers must migrate data even in bad economic times. Where are the immediate migration events?

Technology refreshes Before the old storage arrays can be removed from the floor, the data will

have to be migrated off of them and onto the new storage arrays.

Infrastructure Optimization When a change is made to the infrastructure, more times than not, data will

have to be migrated to make the change effective.

Consolidation Typically what once required many servers or storage arrays can be done

with fewer, more powerful devices and more economically. Without the data, the new equipment is of no use – data will have to be migrated.

Relocations In this day and age, customers are looking to cut costs. One way to do this is

to reduce the number of data centers. Before the old data centers can be shut down, the data will have to be migrated to the new location.

10



Hot spot – Technology refreshes (all types)

Before the old storage arrays can be removed from the floor, the data will have to be migrated off of them and onto the new storage arrays.

– This is where many customers fall behind. The complexity of migrations delays the refreshes, causing a “refresh backlog.”

• This delay is costly for the customer due to extended leases or maintenance fees.

• This delay is costly to STG in that replacement hardware sales will be delayed.

Softek addresses this backlog – migrations are no longer a barrier!

11



Hot spot – Technology refreshes with z MOD upgrade (TDMF and zDMF combination)

Many mainframe customers are experiencing UCB (Unit Control Block) constraints. This is a problem that has crept up over the past couple of years due to rising storage capacity needs and more powerful CPUs. What was once considered an unreachable limit of UCBs is now insufficient.

– Customer are initiating “UCB Reclamation” projects to get back as many UCBs as possible or face a barrier to increasing z storage capacity.

– These projects include upgrading the MOD configuration of their z storage arrays, typical conversions are MOD3 -> MOD9 or MOD27.

MOD upgrades are very manual, risky, time consuming, painful, and COSTLY procedures that must be done unless zDMF is used.

zDMF is an exclusive Softek offering; no other vendor has this capability! It automates the migrations required for a MOD upgrade.

12



Hot spot – Infrastructure optimization SVC implementations

Clients have to address bringing data from unsupported environments under management of SVC.

Manual migration of this data into SVC is slow. Using TDMF can greatly accelerate migration of this data into SVC environment.

The more data migrated under SVC, the greater the need for additional storage arrays and additional SVC control units.

TDMF enables sellers to sell more SVC nodes to manage the disk arrays, more disk to hold the data that was in unsupported environments sooner, and more disk to hold the data that was in remote SVC environments.

13



Hot spot – Server and storage consolidations

Clients often want to reclaim floor space and reduce power consumption.

One way they accomplish this is by consolidating many less powerful servers into fewer more powerful servers and by consolidating many lower capacity storage arrays into fewer larger capacity arrays.

– This usually involves some new equipment.

Data will need to be migrated for this to occur!

Softek can migrate this data quickly without disrupting applications, allowing quick reclamation of floor space and power.

14



Hot spot – Relocations (distance migrations)

In this day and age, customers are looking to cut costs. One way to do this is to reduce the number of data centers. Before the old data centers can be shut down, the data will have to be migrated to the new location.

– This is where many customers fall behind. The complexity of migrations delays the completion of the relocation. In longer delays, result in more data that will need to be migrated, compounding the problem.

• This delay is costly for the customer due to extended leases, or maintenance fees, or labor contracts.

• This delay is costly to STG in that new and replacement hardware sales will be delayed.

Softek addresses this backlog – migrations are no longer a barrier!

15



Softek data mobility non-disruptive solutions

z/OS (mainframe) Softek TDMF z/OS – Block level:

logical volumes

Softek zDMF – Data set level migrations

UNIX Softek TDMF Unix (IP) – Multi-

server or distance migrations

Softek TDMF Unix – Local, single server loop back migrations

Linux Softek TDMF Unix (IP) – Multi-


Windows Softek TDMF Windows (IP) – Multi-


Common interface

TDMF – Transparent Data Migration Facility zDMF – z/OS Dataset Mobility FacilityTDMF – Transparent Data Migration Facility zDMF – z/OS Dataset Mobility Facility



Storage Growth Model Process:

How much data does your client have to migrate now?How much data will your client have to migrate later?

17



Growth model process – 6 steps

The following 6 simple steps are required to calculate your client’s migration requirements:

Part-1: Now

1. Determine your client’s near term migration project.

2. Understand your client’s storage environment.

3. Calculate your client’s immediate migration requirements.

Part-2: Later

4. Estimate your client’s future migration requirements for the next 3 years.

5. Run quick data migration ROI.

6. Refine your client’s future migration requirements for the next 3 years.

18



Determine what your client’s near term migration project is and understand your client’s storage environment (key identification questions)

1. What business issues and technology trends are driving IT initiatives? Example: A large regional bank looking to cut costs, reducing the number of data centers from

4 to 1

2. What are the high priority IT initiatives? Example: Relocating 3 regional data centers into one existing main data center

3. What is the current storage landscape?Example: A regional bank has 200TB (usable) total in 3 regional data centers, primarily using Unix

platform Its parent company wants to relocate those regional data centers into the existing main data

center which has 400TB (usable) total with 320TB in distributed and 80 TB in mainframe environments

Heterogeneous storage – mostly EMC and IBM Open systems storage growth rate is 40% per year; mainframe storage growth is 15% per year 3-year refresh cycle

4. What approach does your client typically use to migrate data? Example: Client moves some of the data online, some can be done offline, using a

combination of tools – volume manager, SRDF, DFSMS

5. What are the near term migration projects? Example: Client must relocate a total of 200TB of usable storage from 3 regional data centers

to 1 main data center by August 31

19



Calculate your client’s immediate migration requirements

The following 3 simple steps are required to calculate the immediate migration requirements:

a. Create a diagram of the environment as it is now before the immediate migration occurs.

b. Create a diagram of the environment as it will be after the immediate migrations required occur.

c. Create a diagram of the immediate actions required to get from the before to the after.

Tip: Relocated storage is physically moved.

Relocated data is migrated.

20



Calculate – step a: create a diagram of the environment as it is now before the immediate migration occurs

New York

Hong KongCairoParis

TARGETTARGET

SOURCESOURCE

200 TBs usablestorage currently

residing in regionaldata centers

320 TBs usable storage currently

residing in themain data center

Relocate 200 TBs of usable storageRelocate 200 TBs of usable storage

The before diagram

The before diagram

21



Calculate – step b: create a diagram of the environment as it will be after the immediate migrations required occur

520 TBs of usable storage will be residing in the main data center

after relocations

New York520 TBs usable storage

The after diagramThe after diagram

320 TBs of usable storage in the main data center before the

relocation

plus

200 TBs usable storage relocated in from the regional

data centers

equals

520 TBs* usable storage in the main data center after the

relocation

*you will use this figure later in the growth model

320 TBs of usable storage in the main data center before the

relocation

plus

200 TBs usable storage relocated in from the regional

data centers

equals

520 TBs* usable storage in the main data center after the

relocation

*you will use this figure later in the growth model

22



Calculate – step c: create an immediate action diagram of the actions required to get from the before to the after (1 of 4)

i. Determine the amount of usable storage to be relocated 200TBs of usable storage is relocated from old location to new location

10101010101010101011101011

10101111010111110100000011

101010110101000011110001101

010101000011010111110001010

101110100010100111000111101

Current location

200 TBs usable storage

New location


200 TBs usable storage relocated

200 TBs usable storage relocated

How to calculate the actions: storage

relocated

How to calculate the actions: storage

relocated

TIP: Relocated storage is physically moved

23




ii. Calculate how many TBs of data need to be migrated to target location200 TBs usable storage X 30% utilization rate = 60 TBs data to migrate

10101010101010101011101011

10101111010111110100000011

101010110101000011110001101

010101000011010111110001010

101110100010100111000111101

Current location


60 TBs data 60 TBs data

60 TBs data migrated

101010110101000011110001101

010101000011010111110001010

101010110101000011110001101

010101000011010111110001010

How to calculate the actions: Data

migrated

How to calculate the actions: Data

migrated

New location


TIP: Relocated data is migrated

24




iii. Calculate total existing TBs of usable storage and TBs of data to reside in target location after relocation

10101010101010101011101011

10101111010111110100000011

101010110101000011110001101

010101000011010111110001010

101110100010100111000111101

Action

200 TBs usable storage in regional data centers

60 TBs data(200 TBs usable storage

X 30% utilization rate)

101010110101000011110001101

010101000011010111110001010

320 TBs usable storage existing main data center

101010110101000011110001101

010101000011010111110001010

101110100010100111000111101

96 TBs data(320 TBs usable storage

X 30% utilization rate)

++ ==101010110101000011110001101

010101000011010111110001010

101110100010100111000111101

101010110101000011110001101

010101000011010111110001010

520 TBs total usable storageresident main data center

520 TBs total usable storageresident main data center

156 TBs total dataresident Main DC

25




iv. Total: existing TBs of usable storage and TBs of data to reside in new location after relocation

– 156 TBs of data (60 TBs data relocated + 96 TBs of data in pre-existing)

– 520 TBs of usable storage (200 TBs relocated + 320 TBs pre-existing)

156 TBs data now resident

(60 TBs data migrated in + 96 TBs data pre-existing)

520 TBs usable storage now resident

(200 TBs usable storage relocated in + 320 TBs

usable storage pre-existing)

26



Calculate – step c: The immediate action diagram shows the actions required to get from the before to the after

60 TBs datacurrently resident in

RegionalData Centers

Immediate action diagram to get from before to afterImmediate action diagram to get from before to after

Immediate Action Immediate Action

Immediate Migration Requirement:

200TBs Usable Storage to be Relocated

* 30% Utilization Rate

= 60TBs of Data Requiring immediate Migration

27



Growth Model process checkpoint: Part 1

How much data does your client have to migrate now?

1. Determine your client’s near term migration projectYES – Relocations

2. Understand your client’s storage environmentUnderstood – see diagrams

3. Calculate your client’s immediate migration requirements60 TBs



Storage Growth Model Process Part 2:

How much data will your client have to migrate later?* Estimate your client’s future migration requirements* Run Quick Data Migration ROI* Refine your clients future migration requirements

29



Growth model process – 6 steps

The following 6 simple steps are required to calculate your client’s migration requirements:

Part 1: Now Determine your client’s near term migration project.

Understand your client’s storage environment.

Calculate your client’s immediate migration requirements.

Part 2: Later Estimate your client’s future migration requirements for the next 3 years.

Run quick data migration ROI.

Refine your client’s future migration requirements for the next 3 years.

30



Initial Storage Growth Model

The initial Growth Model serves two purposes:

1. Shows your client that they have to migrate data, today and tomorrow, by defining and quantifying future migration requirements

2. Enables sellers to engage with the client to further refine their future migration requirements

The process is simple and natural and has proven to be an effective method that clients are comfortable with

The output improves your value proposition and impacts the solution components in your proposal by expanding the conversation beyond a point solution

31



Storage Growth Model Concepts

The Growth Model is based on the following principles:

The amount TBs to be migrated in future migrations is predictable:

Tech refresh migration requirements are determined by refresh cycle and storage growth rates (forward and backwards).

– What was new storage 3 years ago will need to be refreshed today if the refresh cycle is 3 years. The model uses reverse growth rate to conservatively determine the amount of TBs to be refreshed.

Migration types are proportional to each other (the sum of the percentages of the four migration types always equals 100%).

By applying the tech refresh migration requirements to the migration type percentages, you can predict all future migration requirements.

32



Estimate your client’s future migration requirements

Process

Partner seller enters input into initial growth model spreadsheet, which will calculate the estimated future migration requirements. Usable TBs on the floor (from the after diagram in calculate - step b)

520 Usable TBs of storage

Storage growth rate (from key identification questions)40% CAGR

Note : This example focuses on OPEN SYSTEMS. Follow the same steps for mainframe systems.

33



Initial storage growth model scoping questions and assumptions

The answers to these questions were previously obtained from “calculate client’s immediate migration requirements”, and will be input into the initial growth model.

Initial Growth model scoping questions What is the current usable storage capacity on the floor (TBs) after immediate migration occurred?

520 TBs

What is the annual storage growth rate (TBs)? 40%

Initial Growth model default values What is the storage refresh cycle? (default = 3 years)

What is the storage utilization rate?

– default = 30% for open systems and 70% for mainframe (utilization rate = written / usable %)

What are the percentages of migration types:

– Tech refresh (default = 50%)

– Infrastructure change (default = 25%)

– Consolidations (default = 15%)

– Relocations (default = 10%)

Note: You will have a chance to refine these values with your client later on.Note: You will have a chance to refine these values with your client later on.

34



Initial storage growth model input – Usable TBs storage and growth rate

35



Initial storage growth model calculations

36



The future action diagram shows the estimated future migration requirements and estimated future TBs of usable storage (based on the after diagram)

New York

1,428 TBs after 3 years

520 TBs of Usable Storage will be resident in the Main Data Center

after Relocations

Estimated Future Migration Requirements:

520 TBs Usable Storage Today

* 40% Growth Rate (CAGR)

* 36 Month Period

= 1,428 TBs of Usable Storage

Requiring

274 TBs of Data Migration

(Initial Storage Growth Model)

The future action diagram

The future action diagram

37



Add the estimated future migration requirements and the immediate migrations required to get total migration requirements

Immediate migration needs

60TBs

Future migration needs

Year-1: 64 TBs

Year-2: 88 TBs

Year-3: 122 TBs

Total: 274 TBs

Immediate + future migration needs:

334 TBs

By using the Initial Growth Model to determine future migration needs: The number of TBs requiring migration

grew from 60 TBs to 334 TBs.

This is a 556% increase.

This will have a corresponding increase in you proposal!

38



The total diagram shows the estimated future migration requirements, immediate migrations required and the total migration requirements (based on the after diagram)

Immediate migration requirement:

200TBs usable storage to be relocated

* 30% utilization rate

= 60TBs of data requiring migration

The total diagramThe total diagramNew York

Future migration requirements:

520 TBs usable storage today

* 40% growth rate (CAGR)

* 36-month period

= 1,428 TBs of usable storage

requiring 274 TBs of data migration

(Initial Storage Growth Model)

Total = Immediate + Future Migration Requirements

Immediate Migration Need 60 TBs (3-DC relocation to AZ)

Need over next 3 years 274 TBs (from initial growth model)

Total Migration Requirement 334 TBs

39




1. Determine your client’s near term migration projectYES – Relocations



4. Estimate your client’s future migration requirements for next 3 yrs274 TBs

Now it is time to show your client the cost savings from using our solution!

40



Quick Data Migration ROI Model has ONE GOAL

Illustrate to clients that:

Investing in IBM Data Mobility Solutions can generate significant cost savings and deliver a rapid return on investment.

41



Quick Data Migration ROI

Input required for model

Client’s current usable storage capacity

Operating system

Industry

Currency

Three-year software licensing fees, inclusive of support services

– BPs: Work with your IBM CRBP or IBM Data Mobility Channel Manager

– IBM direct seller: Three-year software fees are built into the model for you

Output automatically generated by model

Client-ready presentation with:

– Storage capacity and migration requirements modeled for three years

– Cost savings and financial metrics associated with IBM Data Mobility Solutions

– Projected return on investment

42



Launch Quick Data Migration ROI

Enter data (xls)– Client’s current usable storage capacity

– Operating system

– Industry

– Currency

Explain storage growth concept (xls)– Use 2 examples to highlight

• What is ending capacity

• What is 3-year tech refresh requirements

• What is 3-year total migration requirement

Review savings summary (xls)– Note: For BPs, please enter the software and 3-year support services fees

– Note: For direct sellers, these software fees are built into the model for you

Generate client presentation (PowerPoint) which will include:– Payback period – the amount of time taken to break even on an investment. Payback in this

model is expressed in months and represents the point in time at which the total savings realized from deployment of Data Mobility Software equals the total amount (license + support services) invested in the solution.

– Return On Investment (ROI) – Expressed as a percentage in this model, ROI represents the profit or cost savings realized from an investment. In this model, all migration-related cost savings during the three-year period.

Example #1

520 TBs Usable Storage Capacity

Open Systems

Insurance

US Dollars

$2,400,000 3 year costs

40% growth rate

43



Cost savings – Summary

Initial ROI Analysis shows:

*3 months payback

*1661% ROI

These savings are indicative based on the best information at the time of analysis. To find out what information we need to complete a customized analysis, please contact Betty BP Rep.

44



Summary ROI results

Model parameters

Usable capacity deployed, 2009 (TBs) 520 TBs

Annual Data Growth 40%

Model outputs

Usable capacity deployed, year end 2012 1,428 TBs

3 Year WRITTEN DATA migration requirement

274 TBs

Perpetual License + 3 years’ support services

2,400,000 US Dollars

Savings with Data Mobility Services/Softek 19,856,365 US Dollars

Return On Investment (ROI) 1661%

Payback 3 monthsIBM Corporation does not warrant that the information in this document is accurate or that you will obtain any particular results from use of IBM/Softek or any third party software. The information in this report is provided “AS IS” without any warranty, express or implied. IBM Corporation DISCLAIMS ALL WARRANTIES, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, AS WELL AS ANY WARRANTIES ARISING FROM COURSE OF TRADE OR DEALING WITH RESPECT TO THE CONTENTS OF THIS DOCUMENT.

45



Growth model process checkpoint: Part 2

1. Determine your client’s near term migration projectYES - Relocations



4. Estimate your client’s future migration requirements for next 3 yrs274 TBs

5. Run Quick Data Migration ROI3 month payback

Now it is time to refine the storage growth model!

46



Refine storage growth model

The Refined Storage Growth Model serves two purposes:

Shows your clients that they have to migrate data, today and tomorrow, by defining and quantifying immediate and future migration requirements collaboratively with your client

Enables sellers to expand the scope of their proposals, yielding additional revenue from their transactions

The process is simple and natural and has proven to be an effective method that clients are comfortable with.

The output improves your value proposition and impacts the solution components in your proposal by expanding the conversation beyond a point solution.

47



Review answers to refined storage growth model scoping questions, collaboratively with your client

What is the current usable storage capacity on the floor? 520 TBs

What is the annual storage growth rate? 40% CAGR

What is the storage refresh cycle? 3 years

What is the storage utilization rate? 32% (this is a refinement from your client.)

What are the percentages of migration types:– Tech refresh 40% (this is a refinement from your client.)

– Infrastructure change 25%

– Consolidations 15%

– Relocations 20% (this is a refinement from your client.)

TIP: Future migration requirements are calculated based on the environment after the immediate required migrations are completed.

Note: Type of TB needs to be identified AND consistent, usable and written are the most important to obtain.Note: Type of TB needs to be identified AND consistent, usable and written are the most important to obtain.

48



Refined storage growth model input - Usable TBs storage and growth rate and all updates from answers to refined growth model scoping questions

49



Refined storage growth model calculations

50



The future action diagram shows the estimated future migration requirements and estimated future TBs of usable storage (based on the after diagram)

New York

1,428 TBs after 3 years

520 TBs of Usable Storage will be resident in the Main Data Center

after Relocations(from understand storage

environment)

Future Migration Requirements:



* 36 Month Period


Requiring


(Refined Storage Growth Model)

The future action diagramThe future action diagram

51



Add the estimated future migration requirements and the immediate migrations required to get total migration requirements

Immediate Migration needs

60TBs

Future Migration needs

Year-1: 85TBs

Year-2: 118TBs

Year-3: 163TBs

Total: 366TBs

Immediate + Future Migration needs:

426TBs

By refining the Growth Model to determine future determine migration needs: The number of TBs requiring migration

grew from 334TBs from the initial growth model to 426TBs.

This is a 28% increase.

This will have a corresponding increase in you proposal!

52



The total diagram shows the estimated future migration requirements, immediate migrations required, and the total migration requirements (based on the after diagram)

Immediate Migration Requirement:

200TBs Usable Storage to be Relocated

* 30% Utilization Rate

= 60TBs of Data Requiring Migration

The total diagramThe total diagram

New York

Future Migration Requirements:



* 36 Month Period


Requiring


(Refined Storage Growth Model)

Total = Immediate + Future Migration Requirements

Immediate Migration Need 60 TBs (3-DC relocation to AZ)

Need over next 3 years 366 TBs (from refined growth model)

Total Migration Requirement 426 TBs

53




1. Determine your client’s near term migration projectYES - Relocations



4. Estimate your client’s future migration requirements for next 3 years274 TBs

5. Run Quick Data Migration ROI3 month payback

6. Refine your client’s future migration requirements for next 3 years366 TBs

But wait – client says “I can’t achieve this”!

54



But wait – client says “I can’t achieve this”!

Your client agrees with your refined estimates, but says that they have the bandwidth and budget to refresh only 70 TBs of usable storage disk this year, not the 104 TBs of usable storage disk that they should be replacing (from refined storage growth model calculations).

The main holdups are: the inability to perform the required data migrations, not enough downtime or not enough labor, or both

Let’s take a look at how we would handle this further refinement that we call:

“Refresh Backlog”.

Addressing “refresh backlog” can be complex. Partners can contact your CRBP or Channel Seller to work with IBM to walk through the options that follow.

55



Learn more about Refresh Backlog

Complete Module Two to learn about:

Impact of technology refresh backlog on business partner revenue and margin

Valuable resources including tools, contacts, and links



IBM GTS Storage and Data Services

Storage Growth Model and Refresh Backlog for Business Partners

Module 2 of 2John Beischer

Evan Salop

01 July, 2009

© Copyright International Business Machines Corporation 2009. All rights reserved.

57



Objective

This presentation presents information that: Clients have to migrate data today and will have to migrate even more data as

time goes by.

Clients and business partners receive significant value in keeping on schedule with technology refreshes and associated data migrations.

The information in this deck can be used by a business partner to determine the clients immediate, future, and total migration requirements, develop a proposal for a solution to meet the client’s needs, AND make some money.

The material is presented in two parts:

I. Module One: Provides a review of the data migration concepts and an in-depth discussion of the Storage Growth Model process.

II. Module Two: Focuses on the refresh backlog, its impact on BP revenue/margin, and resource information including contacts, tools, and links.

58



Module Two – Agenda

Refresh backlog

Impact of technology refresh backlog on business partners’ revenue and margin

Resources

– Tools

– Contacts

– Links

59



Review: Refresh backlog

After refining the storage growth model with the client, we agreed that the total technology refresh requirements for the next 3 years is 451 TBs of usable storage disk (104 TBs of usable storage disk in the first year).

Your client agrees with your refined estimates, but says that they have the bandwidth and budget to refresh only 70 TBs of usable storage disk this year, not the 104 TBs of usable storage disk that they should be replacing (from refined storage growth model calculations).

How can we help the client address their “Refresh Backlog”?

Addressing “refresh backlog” can be complex. Partners can contact your CRBP or Channel Seller to work with IBM to walk through the options that follow.

60



Input planned migrations to estimate client’s refresh backlog

Your client can only migrate 70TBs of written data this year. How will that affect them moving forward?

61



Estimated refresh backlog calculations

62



Address the refresh backlog

Your client cannot keep up with refresh demands…each year the refresh backlog gets worse…so they have 4 choices to address their refresh backlog:

A. Extend the deadline for completing migrations

B. Extend outage windows and add associated labor so that more migrations can be completed

C. Use non-disruptive migration tools, like DMS tools

D. Use non-disruptive migration tools, like DMS tools, and have partner do the work

63



Client options for migrating data

Option A

Schedule migrations around limited outage windows using disruptive migration utilities. This tends to lengthen the overall calendar time of the migration as the windows are limited to relative inactive periods (typically weekend early morning hours).

Scheduled outage windows are fixed and will NOT be extended or added to.

Option B

Take an unplanned extended outage, or additional unplanned outages, to complete the migration in as little overall calendar time as possible. This minimizes the overall calendar time required for the migration, but usually cannot be completed within a scheduled window, resulting in extended downtime for applications.

Migration completion deadline dates are fixed and will NOT be pushed back.

Option C

Invest in non-disruptive data migration software like TDMF that will eliminate extended outages and virtually eliminate the need for a migration window, as the migration is performed online.

All migrations will be done within fixed scheduled outage windows.

Option D

Invest in non-disruptive data migration software like TDMF that will eliminate extended outages and virtually eliminate the need for a migration window, as the migration is performed online…AND engage partner to do the work.

All migrations will be done within fixed scheduled outage windows AND will be completed by fixed migration deadline.

64



Address backlog input – Option A – extend calendar time

65



Address backlog calculations – Option A – extend calendar time

66



Address backlog – costs to client – Option A – extend calendar time

Conclusions:

Client does not have the capability to migrate data based on the original 3-year technology refresh cycle.

Extending the refresh cycle REDUCES the migration requirements within the client’s migration capabilities.

But at what cost TO CLIENT?

Estimated refresh backlog calculations chart:

Year-1: 34 TBs usable storage required lease extensions



That totals 145 TBs needing lease extension of 1-year.

67



Address backlog – Estimated costs associated with extending leases – Option A – extend calendar time

Storage Refresh Backlog: 2011 2010 2009Scheduled Tech Refreshes (from 3-years ago) 202 145 104Plus Carry Forward 81 34 NATotal Storage Refreshes Required 283 179 104Less Planned Tech Refreshes (from Client) -138 -98 -70Backlog per Year (carried forward) 145 81 34Annual Backlog added 64 47 34

3-Year TB Total Backlog 145

Backlog Quantity, TBs

Annual Lease Cost/TB

Annual Lease Increase Due to

Backlog

Year 1 (2009) 34 $4730 (2006) $160,820

Year 2 (2010) 47 $3190 (2007) $149,930

Year 3 (2011) 64 $2117 (2008) $135,488

Total 145 $446,238

Conclusion: Option A costs at least 446k USD, not including floor space, energy, and management costs.

Note: Typically, this $446K USD is paid to a third party leasing or maintenance company.

68



Address backlog – Opportunity costs to partner – Option A – extend calendar time

We know in this example that Option A costs THE CLIENT at least 446k USD, not including floor space, energy, and management costs.

But at what opportunity cost TO BUSINESS PARTNER?

69



Address backlog input – 3-year technology refresh cycle – Opportunity costs to partner – Option A – extend calendar time

Conclusion: Technology refresh cycle of 3 years will result in client migrating 366 TBs of written data over 3 years.

70



Address backlog calculations – 3-year technology refresh cycle – Opportunity costs to partner – Option A – extend calendar time

71




Conclusion: Extending technology refresh cycle from 3 years to 4 years will result in client migrating 244 TBs of written data over 3 years (versus 366 TBs in a 3-year technology refresh cycle), which is a reduction of 122 TBs.

72




73




Conclusion: Extending technology refresh cycle from 3 years to 5 years will result in client migrating 166 TBs of written data over 3 years (versus 366 TBs in a 3-year technology refresh cycle), which is a reduction of 200 TBs.

74




75



Address backlog – Impact of extending technology refresh cycles on usable TBs of storage shipped and TBs of written data migrated – Opportunity costs to partner – Option A – extend calendar time

In a 3-year technology refresh cycle, client will purchase ~1.3+ PBs of hardware and migrate 146 TBs of written data for technology refreshes over the next 3 years.

Extending the technology refresh cycle from 3 years to 4 years will result in client REDUCING hardware purchase by 152 TBs of usable storage and REDUCING technology refresh migration requirements by 49 TBs of written data.

Extending the technology refresh cycle from 3 years to 5 years will result in client REDUCING hardware purchase by 249 TBs of usable storage and REDUCING technology refresh migration requirements by 80 TBs of written data.

76



Refresh backlog impact on business partner

As their technology refresh cycle increases (becomes longer), your client will reduce the TBs of usable storage acquired, because the client will keep the older storage devices on the floor longer and won’t replace them.

Consequently, your ability to deliver the hardware for technology refresh and provide the corresponding migration services to that client will be significantly reduced.

What is the revenue and profit impact to your business?Usable TBs of storage shipped – sample relocation project

20092010

2011

050

100150200250300350400450

77



Address backlog – Revenue and profit lost opportunity for business partner – less TBs of usable storage shipped and less written data migrated – Option A – extend calendar time

Conclusion:

In this example, based on typical assumptions, extending the technology refresh cycle from 3 years to 4 years will result in REVENUE LOST opportunity of ~454K USD AND PROFIT LOST opportunity of ~91K USD.

78



Address backlog – Revenue and profit lost opportunity for business partner – less TBs of usable storage shipped and less written data migrated – Option A – extend calendar time (continued)

Conclusion:

In this example, based on typical assumptions, extending the technology refresh cycle from 3 years to 5 years will result in REVENUE LOST opportunity of 743K USD AND PROFIT LOST opportunity of 148+K USD.

79



Impact of extending refresh backlog for sample relocation project on partner revenue and profits

Technology Refresh Cycle

Total New Disk Shipments – next 3 years

(assumed to be in production) Written

Data Migrated

(services opportunity)

Revenue/Profit from Total new Disk shipments (next 3 years)

and written data migrated

Revenue/Profit LOST

OPPORTUNITY as compared to 3 year

refresh cycle

(due to decreasing Tech Refresh TB

shipments)

Net New Growth TB Shipments

(HW opportunity)

Tech Refresh TB

Shipments

(HW opportunity)

3 years 908 TBs 451 TBs ~146 TBs $2,730,603 Rev

$546,121 Profit NA

4 years 908 TBs 299 TBs

(152 TB less)

~97 TBs

(49 TB less)

$2,276,658 Rev

$455,332 Profit

(~$454k) LESS Rev*

(~$91k) LESS Profit*

5 Years 908 TBs 202 TBs

(249 TB less)

~66 TBs

(80 TB less)

$1,987,417 Rev

$397,483 Profit

($743k) LESS Rev*

($149k) LESS Profit* Growth TB shipments stay constant * = based on Industry averages* = based on Industry averages

80



Address Backlog – Option B – extend planned downtime

Getting more planned downtime:

It won’t happen – nothing more to discuss,

onto Option C.

81



Address the backlog – Options C & D – use non-disruptive tools and services

z/OS (mainframe) Softek TDMF z/OS –

Block level: logical volumes Softek zDMF –

Data set level migrations

UNIX

Softek TDMF Unix (IP) – Multi-server or distance migrations

Softek TDMF Unix – Local, single server loop back migrations

Linux

Softek TDMF Unix (IP) – Multi-server or distance migrations

Windows

Softek TDMF Windows (IP) – Multi-server or distance migrations

Common interfaceTDMF – Transparent Data Migration Facility zDMF – z/OS Dataset Mobility Facility

82



Address the backlog – Options C & D – use non-disruptive tools and services (continued)

IBM offers three approaches for business partners:

Sell and deliver your own migration service.

– You perform using IBM software with your labor and your Statement of Work.

– Partner-centric software licensing model aligns use and cost of software with individual client engagements.

Resell the IBM Migration Services for Data Offering.

– IBM performs using IBM software and methodology with IBM Statement of Work.

Resell IBM perpetual software licenses.

– Softek TDMF (Transparent Data Migration Facility)

• Nondisruptive volume/block level migrations

– Softek zDMF (z/OS Data Mobility Facility)

• Nondisruptive dataset level migrations

– Softek Replicator

• Asynchronous replication software for data protection

83



Options for migrating data have significantly different costs and durations

Conclusions:

1. Clients may not be aware of all the costs to consider as part of migration.

2. Investing in non-disruptive online migration tools, like TDMF and zDMF, and services is significantly less costly than other migration options and mitigates the risks.

84



Data Migrations – keeping on schedule (1 of 4)

A. Migrate all the data within the currently allocated outage windows.

Schedule migrations around limited outage windows using disruptive migration utilities. This tends to lengthen the overall calendar time of the migration as the windows are limited to relative inactive periods (typically weekend early morning hours), and access to those hours are in high contention. Scheduled outage windows are fixed and are not extended or added to.

Although a very cost-effective method of migrating data, it puts deadlines at risk, especially in a migration where an inordinate amount of data needs to be migrated. Missed deadlines result in high overlapping hardware costs (old hardware is kept longer than scheduled).

These costs include, but are not limited to:

Lease or maintenance extensions

Additional facilities costs (power, cooling, floor space…)

Support personnel overtime

85




B. Increase the outage windows by adding more downtime hours

Take unplanned extended outages, or additional unplanned outages, to complete the migration in as little overall calendar time as possible. This minimizes the overall calendar time required for the migration, resulting in extended downtime for applications. Migration completion deadline dates are met.

The migrations will be done on-time, however, the cost of unplanned hours of system downtime is very high:

These costs include, but are not limited to: Revenue lose due to application downtime

Productivity loss

Support personnel overtime

86




C. Use a non-disruptive migration tool like TDMF.

Invest in non-disruptive data migration software like TDMF that will eliminate extended outages and virtually eliminate the need for a migration window, as the migration is performed online. With TDMF, the applications remain running while the data migrations are occurring.

All migrations will be done within fixed scheduled outage windows.

The migrations will be done on-time, and at a lower cost. No downtime required during migrations avoiding those costs, and the migrations will be done on-time, avoiding cost overruns.

87




D. Use a non-disruptive migration tool like TDMF with BP services.

Invest in non-disruptive data migration software like TDMF that will eliminate extended outages and virtually eliminate the need for a migration window, as the migration is performed online…AND engage the BP to do the work. All migrations will be done within fixed scheduled outage windows AND will be completed by fixed migration deadline.

The migrations will be done on-time, and at a lower cost. No downtime required during migrations avoiding those costs, and the migrations will be done on-time, avoiding cost overruns.

88



Cost Savings – Summary

Initial ROI Analysis shows:

*3 months payback

*1661% ROI

These savings are indicative based on the best information at the time of analysis. To find out what information we need to complete a customized analysis, please contact Betty BP Rep.

89



Summary ROI results

Model Parameters

Usable capacity deployed, 2009 (TBs) 520 TBs

Annual Data Growth 40%

Model Outputs

Usable capacity deployed, year end 2012

1,428 TBs

3 Year WRITTEN DATA migration requirement

274 TBs

Perpetual License + 3 years’ support services


Savings with Data Mobility Services/Softek


Return On Investment (ROI) 1661%

Payback 3 monthsIBM Corporation does not warrant that the information in this document is accurate or that you will obtain any particular results from use of IBM/Softek or any third party software. The information in this report is provided “AS IS” without any warranty, express or implied. IBM Corporation DISCLAIMS ALL WARRANTIES, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, AS WELL AS ANY WARRANTIES ARISING FROM COURSE OF TRADE OR DEALING WITH RESPECT TO THE CONTENTS OF THIS DOCUMENT.

90



Storage growth model process: Call to Action

Determine your client’s near term migration project.

Understand your client’s storage environment.

Calculate near term migration requirements.

Run initial growth model to estimate future migration requirements.

Run refined storage growth model/Quick Data Migration ROI.

Address refresh backlog.

Prepare and present proposal to client.

Close the opportunity.



Impact of Technology Refresh Backlog on Business Partner Revenue and Margin

92



Technology refresh backlog concepts

Technology refreshes drive hard dollar revenue and profit.

Growing trend: Although they want to keep up with their technology refresh cycle in order to gain financial and technical benefits, your clients have resource and budget issues inhibiting them from keeping up.

The main resource and budget issues are: The inability to perform the required data migrations

Not enough downtime or not enough labor, or both

Ignoring the technology refresh backlog impacts business partners across their client base: Significant revenue and profit opportunity cost

– Hardware: Reduction of disk hardware shipments

– Services: Reduction in number of data migration engagements and implementation services

– IT Initiatives: Technology refresh backlog can delay the implementation of other IT initiatives (ex-new applications)

Client will engage BPs to help them avoid the costs associated with tech refresh backlog

93



Address backlog calculations – 3-year technology refresh cycle – TBs shipped across entire client base – Opportunity costs to partner – Option A – extend calendar time

If you have shipped 5 PBs of Usable Storage to clients, as of January 2009...If you have shipped 5 PBs of Usable Storage to clients, as of January 2009...

…over 3 years, your clients will need to migrate ~2.6 PBs of written data, including ~1.3 PBs for technology refreshes

…over 3 years, your clients will need to migrate ~2.6 PBs of written data, including ~1.3 PBs for technology refreshes

94




If you have shipped 5 PBs of Usable Storage to clients, as of January 2009...

and your technology refresh cycle is 4 years…



…over 3 years, your clients will need to migrate ~1.7 PBs of written data, including 859 TBs for technology refreshes


95










96



Address backlog – Impact of extending technology refresh cycles on usable TBs of storage shipped and TBs of written data migrated across client base – Opportunity costs to partner – Option A – extend calendar time

Based on 5 PBs of usable storage shipped across your client base to date, in a 3-year technology refresh cycle, your clients will purchase 13 PBs of hardware and migrate 1.3 PBs of written data for technology refreshes over the next 3 years.

Based on 5 PBs of usable storage shipped across your client base to date, extending the technology refresh cycle from 3 years to 4 years will result in your clients REDUCING hardware purchase by ~1.5 PBs of usable storage and REDUCING technology refresh migration requirements by 443 TBs of written data.

Based on 5 PBs of usable storage shipped across your client base to date, extending the technology refresh cycle from 3 years to 5 years will result in your clients REDUCING hardware purchase by 2.4 PBs of usable storage and REDUCING technology refresh migration requirements by 723 TBs of written data.

97



Refresh backlog impact on business partners

As their technology refresh cycle increases (becomes longer), your client will reduce the TBs of usable storage acquired, because the client will keep the older storage devices on the floor longer and won’t replace them.

Consequently, your ability to deliver the hardware for technology refresh and provide the corresponding migration services to that client will be significantly reduced.

What is the revenue and profit impact to your business?

Usable TBs of storage shipped – sample relocation project

20092010

2011

050

100150200250300350400450

98



Address backlog – Revenue and profit lost opportunity for business partner – less TBs of usable storage purchased and less written data migrated across client base – Option A – extend calendar time

Conclusion:

Based on typical assumptions, extending technology refresh cycle from 3 years to 4 years will result REVENUE LOST opportunity of ~4.25M USD AND PROFIT LOST opportunity of 851k USD.

99



Address backlog – Revenue and profit lost opportunity for business partner – less TBs of usable storage purchased and less written data migrated across client base – Option A – extend calendar time (continued)

Conclusion:

Based on typical assumptions, extending technology refresh cycle from 3 years to 5 years will result REVENUE LOST opportunity of ~6.95M USD AND PROFIT LOST opportunity of ~1.4M USD.

100



Impact of extending refresh backlog across partner client base on partner revenue and profits

Technology Refresh Cycle

Total New Disk Shipments – next 3 years

(assumed to be in production)

Written Data Migrated

(services opportunity)

Revenue/Profit from Total new Disk shipments (next 3 years)

and written data migrated

Revenue/Profit LOST

OPPORTUNITY as compared to 3 year

refresh cycle

(due to decreasing Tech Refresh TB

shipments)

Net New Growth TB Shipments

(HW opportunity)

Tech Refresh TB

Shipments

(HW opportunity)

3 years 8,720 TBs 4,336 TBs ~1,302 TBs $25,769,389 Rev

$5,153,878 Profit NA

4 years 8,720 TBs 2,861 TBs

(1,475 TB less)

859 TBs

(~443 TB less)

$21,514,114 Rev

$4,302,823 Profit

(~4.25M) LESS Rev*

(851k) LESS Profit*

5 Years 8,720 TBs 1,924 TBs

(2,412 TB less)

579 TBs

(~723 TB less)

$18,818,407 Rev

$3,763,682 Profit

(6.95M) LESS Rev*

(1.4M) LESS Profit*

Growth TB shipments stay constant * = based on Industry averages* = based on Industry averages

101



Financial Impact Summary: Business partner lost opportunity across entire business partner client base

102



Why should business partners care about data migration solutions?

Clients are very receptive to doing migrations better, faster, and easier. Clients HAVE TO migrate data all the time.

Clients are continuing to experience significant data growth, which is only expanding clients’ focus on making these migrations easier.

Migrations are risky, time consuming and complex….which causes clients to try to put off these activities.

Clients want fixed outcomes.

Clients are not able to keep up with data migration requirements by using traditional methods, which creates a refresh backlog.

Business partners must help clients directly address their refresh backlog requirements OR Face significant revenue and profit lost opportunities

Put client retention at risk

IBM Data Mobility Solutions provide an asset-based approach to data migration that: Reduces time for migration process and risk for clients

Drives hard dollar savings to clients

Enables business partners to drive value to clients and revenue/margin for their companies



ResourcesToolsContactsLinks

104



IBM Data Mobility Services on PartnerWorldwww.ibm.com/partnerworld/datamobility

IBM DMS Web Page Address

Quick-links to Delivery Training

Quick-link to

Announcements

Quick-links to Service Offerings

Quick-links to Web-Lectures

PWU

Quick-links to Pricing

Note: The URL provided on this slide is on a secure server. You must register at www.ibm.com in order for this URL to work. In addition, you should copy and paste this URL into your browser. Do not attempt to launch the URL directly from this presentation. The content of the Web page this URL links to might not be accessible.

105



Data Mobility Solutions ROI Tool Package contents – Business Partner Sellers

The following materials are available for download from Data Mobility on PartnerWorld.

(http://www.ibm.com/partnerworld/datamobility)

Getting Started Guide

Why do customers migrate data?

Technology refresh business scenario

Using the data mobility ROI tool

Understanding the tool output

Data collection forms

ROI Tools

Quick Data Migration ROI and presentation generator

Custom Data Migration ROI and presentation generator

ROI Presentation: Example Business Case in Word format

– Section 1: addresses the specific pain points and the impact that a disruptive data migration process has on the revenue generating business units at ABC Financial.

– Section 2: contains the estimated financial benefit that ABC Financial may realize from implementing Data Mobility Solutions’ non-disruptive migration solutions.

BP investment template– Worksheet to determine number of Softek

licenses sold to recoup investment.


106



DMS (Softek) Techline Support

Technical recommendations

Product research and positioning

Product packaging

Remote presentations

3-Way customer conferencing

Pass leads

Develop intellectual capital

Quick Proposals (future)

RFI/RFP Assistance (future)

HOW TO CONTACT TECHLINE PartnerWorld Contact Services

1-800-426-9990

BP Web Application – www.ibm.com/partnerworld/techline

[email protected]

DEAL HUB CONNECT PORTAL Deal Hub Connect

TECHXPRESS REQUEST FORM Technical Sales, North America

Select "Request Tech Sales Resources" in right navigation bar


107



Contacts and Links Contact your local Channel Rep for business partners or the following IBM Data Mobility Channel Manager.

Location Data Mobility/Softek Channel Manager

US John Campbell, Phone: 1-818 539-3263 Email: [email protected]

Ken Copas, Phone1-614-456-3195 Email: [email protected]

Canada Tony Aziz, Phone: 1-416-478-5412 Email: [email protected]

Latin America Carlos Eduardo Atti, Phone: 55-11-2132-5171 Email: [email protected]

NE, SW, CEEMEA Timo Nopanen, Phone: 33-1-4188-5469 Email: [email protected]

Japan, AP Sean Cavanaugh, Phone: 1-705-523-7221 Email: [email protected]

Global Programs Jennifer Stone, Phone: 1-603-203-9020 Email: [email protected]

Data mobility on PartnerWorld

108



Links – Data Mobility on ibm.comwww.ibm.com/services/datamobility

Offerings

Assessment Tool

109



Trademarks

IBM, the IBM logo, and ibm.com are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at Copyright and trademark information at www.ibm.com/legal/copytrade.shtml.

IBM, the IBM logo, AIX and Softek are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both.Microsoft, Windows and Windows NT are trademarks of Microsoft Corporation in the United States, other countries, or both.

UNIX is a registered trademark of The Open Group in the United States and other countries.

Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both.

Other company, product, or service names may be trademarks or service marks of others.

Documents

© 2009 IBM Corporation IBM Global Technology Services IBM GTS Storage and Data Services Storage Growth Model and Refresh Backlog for Business Partners