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IBM Application Performance Monitoring & Management Services Tivoli Live - monitoring services. July 29 th , 2010. Craig Battleman IBM Global Services Sales & GTM. Discussion Topics. Tivoli Live Overview Tivoli Live monitoring services Overview Value Propositions: BP & Customer

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    1. IBM Application Performance Monitoring & Management ServicesTivoli Live - monitoring services July 29th, 2010 Craig Battleman IBM Global Services Sales & GTM

    2. Discussion Topics • Tivoli Live Overview • Tivoli Live monitoring services Overview • Value Propositions: BP & Customer • Next Steps • Backup Materials – Sources for additional information

    3. IBM Tivoli Live – monitoring services Overview • IBM Tivoli Live – monitoring services provides a flexible, affordable suite of infrastructure health and performance management services based on out-of-the-box Tivoli monitoring software and ITS server resource management. • Enterprise class monitoring solutions at mid – market prices • Secure service - No VPNs required and the one way data flows are encrypted • Pay for what you use • Multi language capabilities

    4. Distributed Monitoring Touch-less Monitoring Performance Services • Agent-less Monitoring of OS and network devices (ITM) for basic up/down status • Self-install data collector • Event Notification • Internet Portal (Tivoli Enterprise Portal) • Best Practices • $44/month/service – OS • $16/month/service – network device • Historical reporting and trending analysis for capacity planning (GTS Asset) • Self-install Agents • Internet Portal (will feed into Tivoli Enterprise Portal) • Best practices • $15/month/service • Agent-based monitoring of OS and Application Resources (ITM and ITCAM) for deep metrics • Self-install Agents • Event Notification • Internet Portal (Tivoli Enterprise Portal) • Best Practices • $58/month/service IBM Tivoli Live Monitoring Services – Offering Highlights IBM Tivoli Live Monitoring Services consists of three services; clients can consume these separately or concurrently • Single monthly price, inclusive of service delivery and use of the software • Minimum of 25 monitored services, maximum of 500 monitored services, separate maximum of 400 network devices once OS minimum is met • One-time on boarding fee ($6,500) • 24x7 phone and email support • Terms of 90 days, 1, 2 and 3 years • Entitles client to the IBM Tivoli Live service (not IBM Tivoli perpetual license software)

    5. Integrated Solution An Integrated set of solutions represent the full management of data, processes, tooling and people Common Data Model The core solutions share a common data subsystem for simple data sharing Processes that Work Together The core solutions share aprocess workflow automation engine No Rip and Replace Leverage existing investments in IBM and 3rd party IT management tools Lower Cost of Ownership Lower infrastructure and training costs, simple upgrade model IBM Tivoli Live  The Vision • Tivoli and GTS will offer a suite of IT Service Management solutions available from the cloud. • Each service can be deployed separately or as an integrated solution to meet client’s specific priorities. Best Practices & Methodologies Tivoli Live Business Service Management (Real-time business service dashboards based on TBSM) Tivoli Live Asset Management Services(IT Asset Management based on TAMIT) Tivoli End User and Transaction Monitoring(Transaction and end user monitoring based on ITCAM) Tivoli Live Service Request Management (Service desk based on TSRM) Tivoli Integrated Portal Cognos BI Tivoli Live Discovery Services (Automatic discovery and configuration drift based on TADDM) Tivoli Data Warehouse Tivoli Live Monitoring Services (Based on ITM and ITCAM) Tivoli Live Performance Services (Based on ITS Server Resource Monitoring) Note: This view is provided for discussion purposes only, no commitment is implied and subject to change.

    6. Internet Architecture View • No VPN required • No traffic initiated into customer environment. • All traffic is initiated outbound from customer network • Target 1 week deployment Customer ITM ITM Customer Premise Agentless ITM Application Stack TEPS Tivoli Data Warehouse ITM Summarization & Pruning Agent DB2 TEMS ITM Warehouse Proxy IBM Premise Future : Leverage common cloud platform TCR NodeWatch Notify RedHat V5 Advanced Platform w/ Virtualization System x Platform

    7. Business Partner Value Proposition • Large world wide market $8 - $10B by 2012 - Business Partners primary channel • Offering that is aligned to customers that do not want to purchase or own enterprise licenses • Lots of opportunity to add value • Business Partners maintains customer relationship • Transition Services during on-boarding • Custom configuration services – reporting, alerts, notifications, workspaces • Local support services and advanced on the ground management • Custom follow-on services – custom agents, logical dashboards, managed services • Leverage IBM’s brand as a Service Provider • Discounts –25% for Tier 1 SPs, 30% for Distributors • Uniquely differentiated offering • Broad resource coverage from OS to Middleware to Packaged Applications • Leverage agent-less technologies for extremely simple deployment • Minimal upfront costs and low transition times • Globalized software • Quicker sales cycles • IBM Support to make BP Successful • Enablement • Lead generation • Marketing co-investment

    8. Tivoli Live is an enabler for growth Increasing Customer Value Increasing Business Partner Value Increasing IBM Value • Project Based Software Implementation Services Managed Services • Tivoli Software Sales Project Based Optimization Services • Tivoli Live • SaaS Discovery, Monitoring, Management, Performance, Provisioning, Assets, Reporting, and Business Visualization ...

    9. Client Value Proposition • Access to enterprise class monitoring software for a low monthly fee delivered in a SaaS model • Lower operational costs with minimal upfront costs • Single monitoring system that crosses multiple technologies Networks, Server, Storage, Middleware, Applications, & Platforms (IBM Systems Director agent) • Both non-intrusive agent-less and robust agent-based deployment models with minimal transition times • Improve infrastructure availability with 24 x 7 proactive monitoring • Provide real-time reports, automated notifications and alerts • Manage on-premise and off-premise resources with a single console Visibility Control Automation Availability Optimization

    10. First Wins Large Transportation Company (Mexico) • Part of Remote Managed Infrastructure Services (RMIS) / BCRS engagement • 112 Touch-less windows images • Six year contract • Channel  Direct Large Consumer Products Company (United States) • Client originally looked at on-premise ITM purchase, but looking for lower cost service to help organization increase event management maturity • Client was using Nagios, an open source, less comprehensive monitoring solution • Client using IBM Systems Director and wanted integration between IBM Systems Director and the enterprise monitoring solution • 400 Touch-less OS instances & 300 network devices • ITM 6.2.2 upgrade and network device agent primary pilot functions and IBM Systems Director integration • One year contract • Channel  Direct IBM Confidential

    11. Contracting • The service is purchased via GTS SOWs, not SWG PPA • Template GTS SOWs have been created in Remarketer mode • GTS and Tivoli are working on a Prime Bidder model which would enable a BP to purchase the service from IBM and then create their own SOW with the end Customer Multi Tenancy • Dependant on Prime Bidder contracting model • Single VM / Tivoli Data Warehouse per BP • Customer monitoring data commingled in single BP VM / Tivoli Data Warehouse • Potentially customers might not have access to the Tivoli Enterprise Portal • Potentially BPs will be required to perform managed application performance monitoring and management services for their customers Revenue • Tivoli is working to ensure that their sales representatives are compensated for reselling the service – they receive SW services revenue credit • IBM Client Teams receive full credit for all services sold • ITS and Tivoli split the revenue on the back end in IBM’s systems

    12. Next Steps • Confirm commitment to resell the service and perform the value add services • Determine if a demo is needed • Determine if an internal PoC is needed • Identify additional sales collateral requirements • Identify customers, make sales calls, and close deals!

    13. Back Up Materials • SaaS Market Dynamics • Example of Tivoli monitoring a virtualized infrastructure • Where to find more information • Tivoli Monitoring and ITS Managed Services Portfolio Segmentation

    14. Software as a Service (also known as On Demand, or Application Service Provider [ASP]) An application owned, delivered and managed remotely by one or more providers Where the provider delivers an application based on a single set of common code and data definitions, which are consumed in a one-to-many model by all contracted customers at any time Software that is available on a pay-for-use basis or as a subscription based on usage metrics What is Software-as-a-Service (SaaS)

    15. Revenue ($M) SaaS Revenue By Client Company Size Worldwide Software as a Service Forecast by Customer Segment, 2006–2012 SaaS spending grows 4x faster than “all applications” spending 50% 52% 45% 40% Overall 2006-2012 CAGR: 33% Source: IDC, 2008 15 IBM Confidential

    16. Application running on Host OS End-to-End Monitoring: Tracking and DiagnosisEnsure High availability of the virtual environmentWhen a Virtual Resource has a problem, where did it originate? The are no “virtual performance problems”, only very real performance problems manifested in a very complex consolidated, virtual environment. Application Application Guest OS Guest OS In the VIRTUAL MACHINE sharing the same physical resource? Virtual Resources Virtual Resources In the VIRTUAL RESOURCE? Virtual Machine Virtual Machine In the HYPERVISOR overhead? Hypervisor Host OS In the HOST OS? Or in the PHYSICAL RESOURCE? Physical Resources

    17. Where can I find more information • IBM PartnerWorld - Tivoli • • IBM PartnerWorld – ITS Server Services • • • Tivoli Announcement for Tivoli Live monitoring services • Tivoli monitoring software capabilities • Tivoli Open Process Automation Library and Best Practices • ITS Server services monitoring services

    18. Tivoli monitoring software capabilities •

    19. Tivoli Open Process Automation Library for partner integration and best practices:

    20. Tivoli and Systems SPL (GTS) Product & Services Segmentation