IBM Systems Group IBM Open Infrastructure Offering ● Implement critical, new on demand applications, while maintaining or improving current Service Level Agreements within current budget ● Streamline procurement and budgeting ● Achieve better consistency through standards implementation in IT architecture ● Address reliability, scalability and flexibility of IT environment ● Meeting Today's IT Challenges Highlights ■ agreement to cover your IT requirements ■ ONE strategic partner to deliver eliminating all the time spent on vendor management activities that, customers tell us that these are some in the end, only yield marginal of their key concerns, and that their benefit jobs would be easier if they had address your specific business solutions to these problems: Achieve a predictable and fore- ONE pre-stated price for total castable IT expense process which infrastructure cost of ownership makes budget planning easier protection, upgrade pricing for all brands and services within the offering IBM can help address these issues with our Open Infrastructure Offering ● improvements, interest rate Improve staff productivity by issues and staffing resources. Our “multi-sourcing” options that which includes price performance ● financial management, infrastructure and IT infrastructure needs ■ complexity IBM understands the challenges facing today’s IT managers in terms of ONE multi-year financial Gain control over infrastructure (OIO). IBM Systems Group What is the IBM Open Infrastructure Rather than handling each acquisi- designed to help you pay only for Offering? tion as a unique transaction requiring what you need and actually use, and The Open Infrastructure Offering is a separate RFPs and bids, OIO consol- not for capacity that is rarely used. multi-year, multi-brand offering that idates multiple IT procurement provides for the latest in technology processes and purchasing cycles Through OIO, IBM can work with you while offering you the financial into one. Most companies also buy IT and your team to identify the current resources to plan, budget and infrastructure separately—hardware, and future needs of your business implement new on demand capabili- software, services—with separate and can utilize the breadth of IBM ties at a known and expected cost. financing. This offering is a way for products and services to deliver a you to streamline your procurement multi-year solution that is designed to OIO is a new way of doing business and budgeting into one process be less costly than your current rate between IBM and our customers. which can aggregate your purchases of spend. With a single monthly When you decide to do business with cost-effectively, provide budget invoice that covers all costs for the IBM for an extended period of time, flexibility and is inflation-protected life of the agreement, you can now and to move your workloads from over time. It also helps identify have the ability to know what you are other vendors to IBM either immedi- monies, often buried in corporate spending, as well as what your future ately or later during the life of the departmental budgets, so manage- spend will be for the life of the agree- agreement, we can extend the full ment can most effectively utilize the ment. Typically, the savings realized level of our support and investment to funds on business priorities. between the OIO monthly invoice and your current expenditures can pro- you not only for the server or software but for all products and services that Each OIO agreement is uniquely vide sufficient funds for new on we provide. This is significant created to help you meet your demand priorities. because IBM has the ability to offer specific current and projected future all the parts and capabilities needed requirements, supporting anticipated IBM products and solutions are to create and manage your IT infra- and unanticipated capacity needs based on open standards and het- structure, and can help you to reduce through our Capacity on Demand erogeneous architectures which offer your overall costs and help you offerings. These offerings are you the most current and best avail- improve productivity. able technology while allowing you to IBM Systems Group leverage your IT spending in the most How does OIO work? Another unique characteristic of the cost effective manner through a com- When you enter into an OIO OIO is that IBM permits technology pletely integrated OIO environment. agreement, you agree to use those substitution, should it turn out that Implementation of the infrastructure is selected IBM products and services your needs change from the original based on IBM’s outstanding auto- as outlined in the agreement for the contract. Depending on the change, nomic capabilities which can help length of the contract which usually is your monthly invoice may be altered reduce your staffing requirements between three and five years. For that to reflect the changes. and help manage infrastructure com- commitment, IBM will provide very plexity and help to lower total cost of attractive pricing across the board for In addition, IBM offers you the ability ownership. all products and services identified. to activate additional on demand As you commit to move more and capacity on your servers to handle In addition, the implementation of more workload to IBM during the con- peak activity periods on a daily OIO can be a stepping stone to a tract life, IBM will make the contract charge basis to help reduce your complete strategic outsourcing even more attractive. In the event that capacity acquisition costs. No longer relationship with IBM. This can some products will not be needed do you have to buy extra capacity be a sound business strategy, until sometime in the future, pricing is only to support some infrequent use. as infrastructure costs would be structured to include these products reduced and outsourcing can bring or future offerings. Financing for prod- One of the unique characteristics of additional savings. You could also ucts and services is provided by an OIO is that future upgrades of current elect to subscribe to managed IBM financing subsidiary which will products are built into the agreement. services in the utility model of be a party to the OIO agreement. All What that means to you is that you IBM’s e-business on demand offer- of the financed products and services will not be faced with products that ings as yet another strategic option. will be merged into a single lease are dead ended or are no longer The net is that while OIO can bring regardless of expected delivery time, supported once you sign on the savings and other benefits, it also enabling you to spread the acquisi- dotted line. enables you to make other choices tions over a much longer period and based on needs of your business. dramatically reduce monthly charges. (Note: We will provide details of the financing structure of the transaction if you require it for accounting purposes.) Summary For more information The Open Infrastructure Offering is a For more information or to get single strategic agreement with IBM started, contact your IBM sales that offers: representative. ● A full range of services and state-of-the-art IT capability ● Leadership technology through life of the contract ● Technology based on open standards and multi-platform ● IBM, the IBM logo, the e-business logo, Enterprise Storage Server, eServer, FlashCopy and TotalStorage are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries or both. Technology substitution built-in as Other company, product or service names may be trademarks or service marks of others. Comprehensive, flexible life-cycle High availability at low cost over the life of a solution ● Produced in the United States 10-03 All Rights Reserved Linear Tape-Open and LTO are trademarks of International Business Machines Corporation, Hewlett-Packard and Certance. solutions for business needs ● IBM Systems Group Route 100 Somers, NY 10589 environment your business model changes ● © Copyright IBM Corporation 2003 Specific business value IBM hardware products are manufactured from new parts, or new and used parts. In some cases, the hardware product may not be new and may have been previously installed. Regardless, IBM warranty terms apply. References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. The scope of the offering can include: ● Core funding which includes existing IT assets (both IBM and non-IBM products) ● Hardware, software, services, maintenance, disaster recovery, financing—and IBM will serve as a paying agent for non-IBM scope ALL FOR A SINGLE MONTHLY PAYMENT TSS00094-USEN-00 GM13-0416-00