IBM System x at DNS Arrow - a new era

1. IBM System x at DNS Arrow - a new era

2. DNS Arrow IBM System x team Launch • 2.35pm - 3.00pm Dave Ridley: Introducing the DNS Arrow System x Business • 3.00pm - 4.00pm Tikiri Wanduragala, IBM Senior Sales Consultant System x: Insight into customers’ real issues and how System x can alleviate them • 4.00pm - 4.15pm Coffee Break • 4.15pm - 5.00pm Graham Hunt: IBM Alliance Manager VMware • 5.00pm - 5.45pm Cam Merrett, TecDem: Demonstration of VMware Virtual Desktop Infrastructure (VDI) • 6.00pm Walk over to City Golf

3. IBM System x at DNS Arrow, a new era - Agenda • Who is DNS Arrow? • Why System x, why now? • Value Added Distribution • Investment • Engagement • Call to Action

4. Who is Arrow? • Arrow is a value-added distributor for components and computer products: • Sales: $14.5 billion in 2006/7 • Components: $9 billion • ECS: $5 billion • Employees: approx. 13,000 • Locations: 200 sales facilities in 38 countries, 19 distribution centres, HQ in Melville, NY • Major ECS vendors: • EMC, NetApp, Sun, HP and IBM • HP and IBM No.1 value-added distributor worldwide • Arrow ECS represents approx. 35% of their total revenue but this is the major growth area

5. United Kingdom DNS Arrow UK DNS Europe • DNS Int. Europe is the headquarters of Arrow ECS in Europe: • Acquired by Arrow in 2005 • Group revenue: >€750 million 2005 • Employees: 355 • Acquired Centia/AKS 4th September 2007 • DNS Arrow UK (including Centia): • Acquired by DNS Int. Europe in January 2007 • Revenue: €350 million • Employees: 250 • Logix • Hub for Arrow ECS expansion strategy and opportunities across Europe

6. Software Key Technology Providers Networking Servers Storage Security Access Virtualisation Expanding product portfolio

7. System x at DNS Arrow

8. Why System x, why now? • IBM’s growth aspirations and where IBM need to be in the x-86 Market. • DNS Arrow’s unique position gives us a fast start as Virtualisation, Security and Data Management specialist.

9. Value Added Distribution – or is it? • Normal Distribution – Credit, Logistics, Pricing and Stock.

10. Value Added Distribution – as we see it! • Marketing • Facilities • Demo • Events • Meeting Rooms • Training Services • Professional Services • Unique Industry Partnerships • Largest IBM VAD Worldwide ; >$2bn • Scale - 65% Market Share of System x in US.

11. Training Services • An extensive portfolio of scheduled and bespoke training courses for resellers and end users • Partner with best-of-breed vendors to provide a broad range of training offerings: • End user training • Accreditation and certification training • Independent issues-based training • Storage networking • Security principles • Virtualisation training • Pay and play workshops • Managed training solutions • Flexibility to offer on-site training • Anix Training (Largest UK IBM Training Co) • A large team of highly experienced instructors delivering expert hands-on training and guidance to technical professionals • World-class training facilities in three UK locations: • London, Harrogate and Reading Technology training for the real world

12. Professional Services • Impartial pre-sales consultancy and technical advice • Expert design, development and project management through to implementation • Engineering build centre, allowing minimal disruption when installing a solution • Customer Support Centre, offering post-sales support and advice to our contract customers • Central resource desk for scheduling consultants, providing a response within a maximum of two hours • Fully qualified and certified IT consultant specialists accredited to the highest standards • Superb state-of-the-art Solution Suites to showcase our vendors’ latest solutions One source for IT skills and services

13. World-class facilities • UK-wide customer centres • 3 locations – London, Harrogate and Reading • Presentation suites, meeting rooms, seminars and hot desks • State-of-the-art solution centres • Largest of their kind in the UK • Hardware & software testing / demos • Truly heterogeneous environment • Live testing / proof of concept • A nationwide network of training centres • State-of-the art training rooms • 3 UK education centres – Harrogate, London and Reading Available to our partners and customers

14. Investment • People • Dedicated System x Team • Demo facilities • Stock • 3 year growth plan - £60m Revenue Target • Strategic Solution Partnerships • TecDem • 18 months relationship addressing a large untapped market for IBM. • Desktop spend in 2008 £7b – No IBM solution – Until now. • Ongoing lead generation uncovered £20m of opportunity • Online demonstration and technical sales support • Acquisition of Centia

15. DNS Arrow System x Org Chart

16. Centia UK – now DNS Arrow Access & Virtualisation • Value added distributor specialising in access infrastructure computing software, thin clients and management software • Over 20 years’ experience in access solutions: • Access • Desktop • Security • Performance • Thin clients • Application delivery • Virtualisation • UK Revenue: €50 million (FY06) Employees: 40 • One of Europe’s leading Citrix Authorized Learning Centers (CALC) and extensive portfolio of Citrix skills and professional services • VMware Authorised Training Centre (VATC) Virtualisation and access infrastructure solutions

17. Engagement Strategic Partnership Business Plan Marketing Plan & investments Entry to solutions Programme. Committed SLA Favourable Terms Stock Profiling Training – Pre-Sales Demos Distribution Partner Jonathan Brown DNS Arrow Quote Team System x specialist Jon Fox DNS Arrow System x Sales Executive Richard Stangroom DNS Arrow Quote Team IBM Darren Thomas DNS Arrow Quote Team IBM Craig Newell Stock and Availability storagequoteteam@dnsarrow.co.uk 01423 519000

18. Summary • A worldwide presence – largest VAD for IBM committed to long term growth of System x business. • “True” Value Added Distribution – Marketing, Lead Gen, Facilities for Demos, events, Training and Professional Services and unique Industry Partnerships • Investment in people, stock, Strategic Solution Partnerships • Virtualisation Distributor of choice – “one stop shop” • www.dnsarrow.co.uk Widely acknowledged as best in class

19. Call to Action • Strategic Partnership • Business Plan • Marketing Plan & investments • Entry to solutions Programme.. More about that later.. • Committed SLA • Favourable Terms • Stock Profiling • Training – Pre-Sales • Demos Distribution Partnership Large Stock holding Experience on System x More than you would expect from a Distribution partner Checklists – Build / Part ship / • Before you leave…! • F2F meeting with rep from System x team along with your account manager

20. Questions? THANK YOU!