© 2008 IBM Corporation

IBM Systems & Technology GroupSystem x and BladeCenter®

Extending your business value with IBM BladeCenter®

Jarut NakaramaleeratSystem x and BladeCenter Product Manager IBM Thailand

IBM BladeCenter®

© 2008 IBM Corporation2

Accelerated pace of business and

technology innovationsOperational issues have IT at a break point

Growth of virtualization drives new management requirements

Energy costs

Environmental & Compliance regulations

Data center capacity

Management costs

New business requirements

Virtualization

Tight budgets

Server sprawl

IBM BladeCenter®

© 2008 IBM Corporation3

CEO’s see dramatic change ahead for The New Enterprise

2008 CEO Directions CIO Implications

HUNGRY FOR CHANGE

83% expect substantial change in the next three years

Flexible, adaptable, extendible systems to support business

model changes

INNOVATIVE BEYOND

CUSTOMER IMAGINATION

76% see opportunity in more informed and collaborative customers

Collaboration & social networking to improve idea/information

sharing

GLOBALLY INTEGRATED

75% are actively entering new markets

Embrace emerging technologies

DISRUPTIVE BY NATURE

69% are planning some type of business model innovation over the next three years Manage increasing risk

GENUINE,NOT JUST

GENEROUS

69% believe rising customer expectations of corporate social responsibility will

positively impact their businessDeliver on Green IT

IBM BladeCenter®

© 2008 IBM Corporation4

IBM’s Global CEO Study: Rapid, accelerating change has become a constant view – Implications for the CIO

Provide a flexible, resilient, highly scalable IT infrastructure

Enable collaboration and help turn information into business insight

Facilitate global integration with a shared service model

Support evolving business models and rapid integration of acquisitions and mergers

Support for broad company-wide ‘green’ initiatives

The data center must change in support of the new enterprise The data center must change in support of the new enterprise The data center must change in support of the new enterprise

IBM BladeCenter®

© 2008 IBM CorporationUpdated 07/12/06

The old paradigm…

IBM BladeCenter®

© 2008 IBM CorporationUpdated 07/12/06

IBM BladeCenter®

© 2008 IBM Corporation7

You can replace it with this …BladeCenter: a foundation for Dynamic Infrastructure

Simplified integrated infrastructure that saves cost compared to rack servers

Substantial energy, cooling, floor space conserved

Highly resilient with no single point of failure

Simplified deployment– Define once, deploy when ready

Management stack automates many tasks and provides failover capability

Public Internet/intranet clients

Routers Firewalls

SAN

IBM BladeCenter®

© 2008 IBM Corporation8

Reduce your initial/ongoing costs with BladeCenter

Integrated managementempowers IT to do more

Less cabling

Less powerand cooling

Less testing,lower risk Lower switching

cost One platform, many needs

Greater density

With economies of scale from 3-8 servers, BladeCenter can be the right choice for small businesses as well as large IBM’s approach to integration can save time, aggravation, risk, complexity —AND MONEY

“I like what IBM has done with BladeCenter, but it’s not enough to make me pay more for the technology. My

tight budget demands I keep my costs down.”

IBM BladeCenter®

© 2008 IBM Corporation

2006

• Get the same or better performance

• Reduce your IT footprint by nearly 95%• Get greater than 9:1 consolidation ratio

2009

14 HS22 BladeCenter blades (Xeon 5500)

1 BladeCenter E Chassis in 0.17 of a rack

137 1U servers (Xeon) in 3.26 racks

Consolidation and Virtualization: Replace Older HP DL360 Racks with IBM Blades

An example showing savings of over 90% on energy costs alone; complete ROI in as fast as 7 months

IBM BladeCenter®

© 2008 IBM Corporation10

Functionality IBM Blade Vendor A Vendor B

Base Offering $3,5381 $2,584 $3,044

Redundant Power $0 $299 $299

Systems Management $0 $299 $0

KVM Switching $0 $90 $155

Ethernet Cables $0 $10 $10

Fibre Channel Cables $0 $130 $140

Fibre Channel HBA $749 $1,569 $1,679

Total $4,287 $4,981 $5,327

Save on purchase cost with IBM BladeCenter

Integration of switching function saves on acquisition costs versus 1ULower TCO — power, cooling, space, management, deployment ease

1 HS21 blade cost includes the allocated overhead of the chassis ($3665/14 blades= $262)All prices are web prices from the respective company websites (ibm.com, dell.com. hp.com),effective 3/28/09

IBM BladeCenter®

© 2008 IBM CorporationSlide 11

Why Blades? Power efficiency increases density

“I cannot fill up my racks because I am out of power. Why would I want to move to blades?”

BladeCenterHS21

1UVendor A

1UVendor B

36 servers72 processors

36 servers72 processors

36 servers72 processors

21U 36U 36U

9,864W 14,904W 15,264W

Running out of power before your rack is filled with 1U or 2U servers is common

Getting the most performance, capacity or users from each KW you have is most important

For like configurations, IBM BladeCenter can save up to 34% on power over 1U servers

Updated 11/17/07

IBM BladeCenter®

© 2008 IBM CorporationSlide 12

Why Blades? Power efficiency reduces cooling requirements

“With my current rack servers, my data center is overheating. Will blades make my heat problems worse?”

Heat often prevents clients from gaining maximum performance density in their data center

BladeCenter is efficient with 35% less heat, 40% lower air flow requirements

BladeCenterHS21

1UVendor A

1UVendor B

36 servers72 processors

36 servers72 processors

36 servers72 processors

21U 36U 36U

33,636 BTU 50,822 BTU 52,050 BTU

Updated 11/17/07

IBM BladeCenter®

© 2008 IBM Corporation

Systems Management for System x and BladeCenter: Helping Lower Costs

Expenses for server management and administration are nearly twice the capital expense for server purchasesBoth administrative and energy costs continue to grow rapidly

Source: IDC, Virtualization 2.0: The Next Phase in Customer Adoption, Doc #204904, Dec 2006

The innovative hardware, tools and systems management of the newgeneration servers can help you achieve breakthrough productivity gainsthrough automation, virtualization and energy managementIBM Systems Director 6.1 can help save 34% to 42% in administrative costs when compared with unmanaged environments¹

$0

$50

$100

$150

$200

$250

$300

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Installed Base(M Units)

Spending(US$B)

New server spendingServer mgmt and admin costs Power and cooling costs

05101520253035404550

¹“Challenges of Operational Management for Enterprise Server Installations,” International Technology Group, © 2008

IBM BladeCenter®

© 2008 IBM Corporation14

IBM® Systems Director 6.1 for integrated platform management

Simplify platform management across server and storage infrastructure

Management of physical and virtual resources

Intuitive graphical interface

Upward integration to enterprise service management

IBM BladeCenter®

© 2008 IBM Corporation15

Focus on health, status, automation

Health summary– Favorite systems– Critical monitors– Group thumbnails

Monitoring – Monitor critical resources– Thresholds– Events

Automation Plans– Notify– Run commands– Trigger tasks

IBM BladeCenter®

© 2008 IBM Corporation16

Upward integrationSystems Director can provide its rich hardware information into higher-level management packages

Tivoli Enterprise™– TEC 3.8 & 3.9– ITM 5.1.x– Configuration Manager 4.2.x– Software Distribution– Provisioning Manager – Inventory – Security Operations Manager– Distributed Monitoring

Tivoli NetView® 7.1.x (Windows and Linux)Tivoli Netcool (Netcool/Omnibus, Netcool/Precision IP (via SNMP), Netcool/Monitoring, Netcool/ISM, Netcool/AEM (via SNMP)Etc.

Vender B

Vender A

Vender C

IBM BladeCenter®

© 2008 IBM Corporation17

Tivoli and Systems Director

Systems Director = Platform Management

Detailed “care and feeding”of IBM hardware

Tell me what I haveLet me install & configure itTell me if it’s workingLet me update it

Tivoli = Service Management

Integrated visibility, control & automation across

heterogeneous business and technology assets

See the businessGovern and control the businessOptimize the business

IBM BladeCenter®

© 2008 IBM Corporation18

Manage a large numbers of physical and virtual BladeCenter servers with IBM Systems Director 6.1 and save in administration costs

Up to 35% when running Windows and up to 44% when running Linux*

BladeCenter integration reduces cost and complexityLowers connectivity cost (SAN/LAN) by up to 48%Saves up to ½ the valuable data center spaceEliminates 80+% of all cablesConsolidate with virtualized servers and save more

Reduce costs through integration

* "Challenges of Operational Management for Enterprise Server Installations," International Technology Group, 2008

Configured BladeCenter servers cost less than comparable rack servers

Integrated switching eliminates most cablesand lowers cost of connecting servers to I/O

Simplified infrastructure lowers management cost vs. disparate standalone systems

Shared infrastructure saves on power and cooling

IBM BladeCenter®

© 2008 IBM Corporation19

Reduce costs through energy efficiency

IBM BladeCenter E is the most energy efficient chassis

Up to 35% more energy efficient than HP or Dell rack servers

New IBM BladeCenter HS22 lowers energy usage by up to 12% at peak load and up to 47% at idle compared to previous generation blades

IBM BladeCenter LS42 4-way blade consumes up to 300W less per blade vs. HP’s leading 4-way server

Significantly reduce TCO with leadership energy efficiency.Up to 35% energy savings vs. rack serversNew HS22 saves up to 93% of energy costs vs. 3+ year old rack servers (same or better performance)

BladeCenter systems are #1 through #7on the Green500 list of energy efficient supercomputers (Nov. 2008)

IBM BladeCenter®

© 2008 IBM Corporation20

Manage risk with reliability, availability, security

Get the peace of mind to run mission-critical applications.IBM BladeCenter infrastructure has no single point of failureBladeCenter Open Fabric Manager automates failover capability for fast recoveryService Advisor automates service for faster resolution, greater uptime

Reduce downtime with options such as hot-swap solid state HDDs

Predictive Failure Analysis and Light Path Diagnostics provide advance warning on system components so you can find the problem easily and proactively replace it before it fails

Service Advisor provides electronic service agent to speed resolution of problems through automating service interaction with IBM

Trusted Platform Module enables greater security with encryption capabilities

A major on-line auctioneer described the BladeCenter chassis infrastructure as rock-solid—the best RAS they have in their infrastructure. It’s just one part of their business they don’t need to worry about. This is the investment protection that BladeCenter offers our customers.

IBM BladeCenter®

© 2008 IBM Corporation21

The standards-based Integrated Management Module (IMM) provides improved error diagnostics, a virtual presence, and remote control to easily manage blades from a central location

The new Unified Extensible Firmware Interface (UEFI) provides a intuitive interface allowing you to add features and functions across new blades quickly

IBM Systems Director 6.1 makes it easy to configure and deploy BladeCenter

IBM ToolsCenter reduces complexity of choosing, finding, and learning BladeCenter management tools

Active Energy Manager monitors, measures and controls BladeCenter energy usage and activity

BladeCenter Open Fabric Manager virtualizes blade connection addresses so they can be set once and automatically managed

Systems Management for IBM BladeCenter is a complete end-to-end stack designed to deliver future-proof systems management today

HP OpenView

Improve service with better systems management

Super I/O

CPU Core

Crypto AES

VideoComp.

VideoController

USB 1.1/2.0 Devices

DDR2 Memory

Controller

BMC I/O

IMM

Super I/O

CPU Core

Crypto AES

VideoComp.

VideoController

USB 1.1/2.0 Devices

DDR2 Memory

Controller

BMC I/O

IMM

ToolsCenter

IBM Systems Director

IMM and UEFI

Tivoli Service Management

ToolsCenter

IBM Systems Director

IMM and UEFI

Tivoli Service Management

IBM BladeCenter®

© 2008 IBM Corporation22

LightEdge counts on BladeCenter for reliability

ChallengeStandardize the IT infrastructure for the company’s

wide range of voice, data and IT services and provide exceptional service to their clients

SolutionStandardization on IBM BladeCenter E, IBM

System x™ and IBM System StorageTM DS4800

BenefitsImproved reliability, availability and scalabilityReduced SLA for response and repair times from four hours to twoEasier maintenance and manageability through single-vendor platform

“It was obvious with the IBM BladeCenter technology that IBM was light years ahead of the competition…When it comes to reliability and availability, I see huge advantages with IBM BladeCenter and SAN technologies.” – Director of Systems Engineering and Operations, LightEdge Solutions, Joe Shields

Joe Shields, LightEdge director of systems engineering and operations, and Jim Masterson, LightEdge chairman and CEO

IBM BladeCenter®

© 2008 IBM Corporation23

Devon Health cures its IT problems with BladeCenter

ChallengeGrow IT systems to keep up with business needs while controlling power costs

SolutionConsolidated HP servers on to IBM

BladeCenter

“The BladeCenter modular, compatible design allowed us to look at our disaster recovery plans and our business continuity plans in a different way. Because the parts are similar, all we need to know is

the configuration. So if we have a total loss, we just need a part. We don’t have to worry about recreating the whole server or the whole environment from a different perspective.”

– Director of IT, Devon Health Services, Justin Hawley

BenefitsReduced number of serversLowered power consumptionReduced number of help desk callsEasier management

IBM BladeCenter®

© 2008 IBM Corporation24

Moving forward

Understand the changing business priorities – and how new technologies are enabling business model innovation

Understand where you are today –and move quickly to capitalize on new technology-enabled innovation or risk commoditization

Identify and tackle core IT issuesthat are inhibiting your ability to move forward

Layout a holistic transformation roadmap

IBM BladeCenter®

© 2008 IBM Corporation25

Reduce operating costs with higher performance, simplified management, and increased utilization

Manage present and future risk in challenging economic conditions with best-in-class RAS and future-proof IT

Improve service with an end-to-end approach to systems management

BladeCenter servers helps to deliver a dynamic infrastructure with…

IBM BladeCenter®

© 2008 IBM Corporation

THANK YOU VERY MUCH FOR ATTENTION