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Giovanni Lanfranchi

© 2008 IBM Corporation

IBM Confidential IBM Software Group | The Rome SWG Lab at a glance

London (UK) Galway, Cork (Ire) Krakow (Pol)

Rome (ITA) Toronto (CAN) San Jose (CA)

Raleigh (NC) Los Angeles (CA) Austin (TX)

~350 Developers ~70 Sales Enablers team s ° Developing mission critical applications ° Executive Briefing Center ° Full WW development ownership of the ° Pre and Post Sales support scheduling offering ° ° Strengthen linkages with SMB market Leader in process development ° BP enablement events methodology D e v , 3 5 0 ° SMB demo environment ° Development of customized solutions ° ENEL - Automated Meter Management ° Repubblica – NICA ° Telecom Italia - Security ~150 SW G Services T iv o li S u p p o rt, ° Key linkages with the Italian market S W G 7 0 ~40 Tivoli Support ° Consultancy in key project at all the S e rv ic e s , S o lu tio n s major Italian Companies 1 5 0 L a b , 4 0 ° WW support for key Tivoli products ° Sogei – “Portale delle Entrate” ° Recognized as the best client facing team ° Senato – Intranet site ° Covering all SWG brands IBM Confidential 2 IBM Software Group | Tivoli software Rome SWG Lab: continuous innovation

Customer Intimacy

TWS 8.3 Productivity Rate ∑Leader in 60.00 56.00 IT 1 IT 2 IT 3 IT 4 IT 5 IT 6 Beta software 52.00 48.00 development 44.00 methodologies 40.00 36.00 32.00 ∑Operational 28.00 model based on 24.00 20.00 centers of 16.00 12.00 competencies: 8.00 4.00 The Global 0.00 4 4 5 5 4 5 5 5 5 5 4 5 5 5 5 5 4 5 5 5 5 5 4 5 5 5 5 5 4 5 6 6 6 6 6 5 6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / 1 6 6 1 1 7 2 8 1 3 5 8 3 9 6 4 0 9 4 0 0 5 5 8 3 9 5 4 0 0 5 0 3 4 8 5 9 / / / 1 2 1 3 2 1 2 1 1 1 2 1 2 2 1 3 2 1 3 1 1 1 2 1 2 2 1 3 1 2 1 2 2 2 0 / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / 2 / Integrated 1 1 0 9 9 0 8 8 7 0 7 1 6 6 5 0 5 1 4 4 3 1 3 2 2 2 1 1 1 2 2 3 3 2 1 2 1 1 1 1 1 1 1 1 1 1 1 1

Enterprise KLOC/PY Average KLOC/PY Inspections

Operational Excellence Product Leadership

IBM Confidential 3 IBM Software Group | Tivoli software Rome SWG Lab: continuous innovation

Customer Intimacy

Total revenue (M$) 155 150 ∑Corporate Mission 145 on Dynamic 140 Scheduling 135

130

125 ∑Beyond quality: 120 “Consumability”

115 2003 2004 2005 2006 2007

Operational Excellence Product Leadership

IBM Confidential 4 IBM Software Group | Tivoli software Rome SWG Lab: continuous innovation

Customer Intimacy

VBank of ∑Unleash the Lab America Discover Design VDiscover Software Use Case ∑“Outside In” design Requirements Analysis VUBS VNestle VBanca d’Italia ∑ VCigna Customer Advocacy VVolvo VUPS Business Requirements Architecture VGenerali

VHBOS

VENEL

VAviva, Design Experian Deploy & & VBBVA V Development Barclays Support VBest Buy VABN AMRO VUnilever VSiemens Beta System Programs Test VCitigroup

Deliver Develop

Operational Excellence Product Leadership

IBM Confidential 5 IBM Software Group | Tivoli software Rome SWG Lab: continuous innovation

Customer Intimacy

P a te n t S u b m is s io n T r e n d 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

2 5 0 2 0 0 1 5 0 1 0 0 5 0 2 0 0 7 0 2 0 0 S u b m i t 5 F i l e + P u b F i l e 2 0 0 3

Operational Excellence Product Leadership

IBM Confidential 6 IBM Software Group | Tivoli software The Rome Lab: the need to move to “Open”

Customer Intimacy

∑Agile product development: adopt Open Source practices also for internal development

Operational Excellence Product Leadership

IBM Confidential 7 IBM Software Group | Tivoli software The Rome Lab: the need to move to “Open”

Customer Intimacy

∑Eclipse community ∑Linux as preferred platform.. for us and for our clients

Operational Excellence Product Leadership

IBM Confidential 8 IBM Software Group | Tivoli software The Rome Lab: the need to move to “Open”

Customer Intimacy ∑Open Development: leverage Web 2.0 to make customer part of the development team

Operational Excellence Product Leadership

IBM Confidential 9 IBM Software Group | Tivoli software Leveraging the Rome Lab experience

Customer Intimacy

∑Provide guidance to customers and business partners in achieving process optimization through adoption of open models

∑Semantic Technologies Competence Center

∑Incubator initiative to promote open collaboration: the blood donation project

∑Leverage Rome Lab expertise on patents to help local SMB ecosystem in protecting their IP

Operational Excellence Product Leadership

IBM Confidential 10 ®

IBM Software Group

Thank you!

© 2008 IBM Corporation

IBM Confidential IBM Software Group | Tivoli software Why Open? Focus on High Value Solutions ° IBM Continue to be a leading force in open source solutions to enable our clients to achieve higher levels of interoperability, cost efficiency and quality.

° IBM collaborated with Sony and Toshiba to create the processor, based on an open architecture customizable for each use – such as all three major game platforms.

° IBM revamped motorcycle maker Harley- Davidson's financial services infrastructure using SOA technologies to be more flexible.

IBM Confidential 12 IBM Software Group | Tivoli software Why Open? IBM Linux Story – An attractive business case

IBM

Non-IBM IBM $50M/yr IBM Unique Commercial $50M/yr Common $100M/yr Total

One fifth of the cost of an independent IBM approach

Non-IBM Commercial Linux Development Expenses (e.g. Intel, Nokia, Hitachi, etc.) $450M – 700M Company Unique $450M – 700M Common $900M – 1,400M Total

Source: IBM figures: IBM Software Group; External figures: Open Source Development Laboratory IBM Confidential 13