What is different about the ibm mainframe

© 2010 IBM Corporation

Smarter Systems for a Smarter Planet ®

Introduction to IBM System z



Trademarks

Notes:

Performance is in Internal Throughput Rate (ITR) ratio based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput that any user will experience will vary depending upon considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve throughput improvements equivalent to the performance ratios stated here.

IBM hardware products are manufactured from new parts, or new and serviceable used parts. Regardless, our warranty terms apply.

All customer examples cited or described in this presentation are presented as illustrations of the manner in which some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions.

This publication was produced in the United States. IBM may not offer the products, services or features discussed in this document in other countries, and the information may be subject to change without notice. Consult your local IBM business contact for information on the product or services available in your area.

All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.

Information about non-IBM products is obtained from the manufacturers of those products or their published announcements. IBM has not tested those products and cannot confirm the performance, compatibility, or any other claims related to non-IBM products. Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products.

Prices subject to change without notice. Contact your IBM representative or Business Partner for the most current pricing in your geography.

* Registered trademarks of IBM Corporation

The following are trademarks or registered trademarks of other companies.

* All other products may be trademarks or registered trademarks of their respective companies.

Adobe, the Adobe logo, PostScript, and the PostScript logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States, and/or other countries.Cell Broadband Engine is a trademark of Sony Computer Entertainment, Inc. in the United States, other countries, or both and is used under license there from. Java and all Java-based trademarks are trademarks of Sun Microsystems, Inc. in the United States, other countries, or both. Microsoft, Windows, Windows NT, and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries, or both.InfiniBand is a trademark and service mark of the InfiniBand Trade Association.Intel, Intel logo, Intel Inside, Intel Inside logo, Intel Centrino, Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, Itanium, and Pentium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.UNIX is a registered trademark of The Open Group in the United States and other countries. Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both. ITIL is a registered trademark, and a registered community trademark of the Office of Government Commerce, and is registered in the U.S. Patent and Trademark Office.IT Infrastructure Library is a registered trademark of the Central Computer and Telecommunications Agency, which is now part of the Office of Government Commerce.

The following are trademarks of the International Business Machines Corporation in the United States and/or other countries.

Cognos*DataQuantDB2*IBM*IBM logo*InfosphereLotus*POWER*

PR/SMQMFRational*System z*System z10 Business ClassTivoli*WebSphere*z10

zEnterprisez/OS*z/VM*z/VSE



Module Abstract

This module was developed for use with an audience that is new to the mainframe. These may be new customers, business partners or even distributed platform constituents at existing IBM System z® accounts. It will introduce key System z concepts, its strengths and value propositions that differentiate it from other platforms. It will provide a high level overview of the mainframe hardware features and functions, the IBM software stack (including middleware and tools) and the ecosystem of applications and business partners that support System z. This presentation will provide customer proof points, discuss the business benefits realized by existing System z customers and feature new customers, showing key business drivers that led customers to selecting a System z for the first time.

3



Table of Contents

WHO uses mainframes?And WHY?

WHY the mainframe delivers?

IBM System z® Solutions Stack

WHY New Customers SelectSystem z?

4

Comparing System z to other servers



WHO uses mainframes?

And Why?

5



[Germany][Germany]

Bank of NZBank of NZ

Bank of MontrealBank of Montreal

Banco ItauBanco Itau

GOVERNMENTS TRANSPORTATION HOSTING PROVIDERS

OTHERS

[Belarusian Railways][Belarusian Railways]

[Slovenia][Slovenia]

[Gaming][Brazil]

[Gaming][Brazil]

[Russian Hydrometeorological Research Institute]

[Russian Hydrometeorological Research Institute]

[Online store/Brazil][Online store/Brazil]Bank of ChinaBank of China

[Vietnam][Vietnam]

IBM System z is the platform of choice for the top 25 global banksIBM System z is the platform of choice for the top 25 global banks

6

BANKS OTHER FINANCIAL INST.

RETAILERS HEALTHCARE UTILITIES / ENERGY

Sample of Customers Large and Small from Around the World

[Brazil][Brazil]

[Peru][Peru]

[Kazakhstan][Kazakhstan]

Central Bank of RussiaCentral Bank of Russia

Industrial Bank of Korea Industrial Bank of Korea

PhilippinesSavings Bank

PhilippinesSavings Bank

[India][India]

[Manufacturer/USA][Manufacturer/USA]

[USA][USA]



Banking Insurance Retail HealthcarePublic Sector

Core Banking Internet Rate Quotes

On-line Catalog

Patient Care Systems

Electronic IRS

Wholesale Banking – Payments

Policy Sales & Management

(e.g. Life, Annuity, Auto)

Supply Chain Management

On–line Claims

Submission & Payments

Web based Social Security

Customer Care & Insight

Claims Processing

Customer Analysis

Tax processing

7

What is a workload?The relationship between a group of applications and/or systems that are related across several business functions to satisfy one or more business processes.

Workloads That Customers Run on System z



8

High business growth


Continuous business operations


Flexibility and speed to respond


Reduce business risk


Green strategyRunning out of energy

and space

Green strategyRunning out of energy

and space

Secure Cloud Services


System z HIGH

SCALABILITY

System z HIGH

SCALABILITY

EXTREME VIRTUALIZATION

REAL TIME ANALYTICS


REAL TIME ANALYTICS

System z SECURITYSystem z

SECURITY

System z EFFICIENCY

System z EFFICIENCY

System z CLOUD

System z CLOUD

System z HIGH AVAILABILITY RELIABILITY


Customers Selected z to Meet These Critical Business Needs



9

High business growthHigh business growth





System z HIGH

SCALABILITY

System z HIGH

SCALABILITY


SECURITY

System z HIGH

AVAILABILITY RELIABILITY

System z HIGH

AVAILABILITY RELIABILITY

Why Customers Say System z Delivers

“We have decided to adopt System z because of its high scalability, guaranteed high security and that it ultimately will be cheaper to manage only one machine instead of many distributed servers.”

Armin Gerhardt, Chairman, EFiS Corporation

"We chose System z for its continuous operation, service quality made available through IBM's mainframe software solutions, and economic returns for the years ahead. We see System z as a critical success factor for our business objectives and service level requirements for customers.“

Jeongkyu Lee, Chief Information Officer at BC Card.

“"FNB Namibia's investment in the latest, industry-leading IBM mainframe systems and software has helped us to build a dynamic core banking platform as well as meet all regulatory requirements"

Advocate Vekuii Rukoro, Group Chief Executive Officer FNB Namibia Holdings

“We have 3,800 users and 7,000 customers using our SAP systems worldwide, and downtime costs us more than $100,000 an hour. Availability is king for Baldor, and the IBM System z gives us what we need.”

Mark Shackelford, Director of Information Systems, Baldor



Why Customers Say System z Delivers



Green strategyRunning out of

energy and space

Green strategyRunning out of

energy and space


REAL TIME ANALYTICS


REAL TIME ANALYTICS

System z EFFICIENCY

System z EFFICIENCY



System z CLOUD

System z CLOUD

“..System z was the only platform that could handle unpredictable peaks in demand without any risk of failure.”

Igor Otliga, Data Centre Manager Belarusian Railways

“..System z was the only platform that could handle unpredictable peaks in demand without any risk of failure.”

Igor Otliga, Data Centre Manager Belarusian Railways

“Deploying IBM mainframes with Red Hat Enterprise Linux to address our carbon footprint and cost savings concerns was a very big deal...”Lyle JohnstonInfrastructure Architect, Bank of New Zealand

“System z is our enterprise server of choice due to clear advantages in cost-of-acquisition and operation – these savings are vitally important to us as they ensure NBC remains competitive in bidding situations.”— Doug Bourgeois, Director, National Business Center

(Implemented strategic Enterprise Cloud Platform on IBM System z)

“System z is our enterprise server of choice due to clear advantages in cost-of-acquisition and operation – these savings are vitally important to us as they ensure NBC remains competitive in bidding situations.”— Doug Bourgeois, Director, National Business Center

(Implemented strategic Enterprise Cloud Platform on IBM System z)

"By moving to a service oriented architecture on System z, we have gained the ability to think more about business problems and work through business solutions.”Aurora Health Care



System z has been driving tangible business benefits across multiple industries for decades

11

44%lower cost per credit card transaction

67%lower cost per ATM transaction

25% lower cost per megawatt hour produced

24% lower cost per hospital bed

20% lower cost per airline passenger

26% lower cost per new vehicle

25% lower cost per retail store

23% lower cost per barrel of oil

All statistics are based on an analysis of actual IT spend and business performance comparing companies with greater-than-average mainframe mix versus less-than-average mainframe mix



But as the world becomes smarter, we will need smarter systems

IBM is designing systems

that enable integration and real-time decision making

These systems deliver the highest

possible value with the fewest resources

12



WHY the Mainframe delivers

13



and why do analysts compare new products to mainframes?

Why do our competitors often claim their products are ….….

"you cannot think seriously about your longer-term IT architecture without thinking equally seriously about what today's mainframe environment has to offer”

“Mainframe-class reliability, availability, performance, and scalability ..”, Oracle claims for their database. But L. Ellison agrees “IBM DB2® is good on mainframe, the best in the world”.

Virtualization is the “mainframe of the 21st century”, VMware says … when they announced their new product in 2009.

Is Cisco's VFrame a 'virtual mainframe'?

CA’s O’Malley refers to the “Cloud taking on Mainframe-like role”

Mainframe-Like

… because System z remains the industry leader

14

What is a Mainframe?



Leader in green technologies•Power and generator•Cooling•Floor space

Server

Most scalable

Extreme virtualization

* z/OS® sysplex

Business Intelligence

Servers

Application Servers

Datacenter

Data Hub

Up to 100% utilization

Highest throughput for high I/O transactions

Unparalleled reliability, highest availability*•More RAS features•Fewer parts•Capacity on Demand

Scale up and out

LAN Servers

Multiple operating systems

Linux on System z - since 2001

15

What is a System z?

Unmatched security

Web Servers

Data Warehouse

TransactionProcessing

Web apps Java apps

InfrastructureFunctions

ERP, CRM

Linux®

Apps

Mixed workloads



Virtualization Centralize Management of virtual servers across a heterogeneous pool> 100,000 virtual servers in a single zEnterprise System

Efficiency Economies of scale for Labor, software and environmental costsReduce labor, energy, and development costs, by up to 70%, 90%, and 20% (respectively)

AvailabilityResiliency management and

fewer points of failureCentralized workload

management aligned to business priorities

ScalabilityAbility to meet massive demands

from users and dataProcess up to a Trillion instructions per second with a single zEnterprise System

zEnterprise: Full Value for Your IT Infrastructure

Securityindustry leading security at

the core of an integrated infrastructure

Identifies potential fraud in Real Time



The potential performance impact of the Linux server farm isisolated from the other Logical partitions (LPAR)

LPAR – Up to 60 Logical partitions

System z

Deploy virtual servers in seconds

$1K/server over 3 years

Highly granular resource sharing (<1%)

Add physical resources without taking system down, scale out to 1000s of virtual servers

Do more with less: More virtual servers per core, Share more physical resources

Extensive virtual server life-cycle management

Hardware-enforced isolation

Distributed Platforms

Limited per-core virtual server scalability

Physical server sprawl is needed to scale

Operational complexity increases as virtual server images grow

VMware tools only support VMware hypervisor (ESX)

PR/SM™Hypervisor in firmware

z/VM® – 100s of virtual servers – Shared Memory

Hardware support:10% of circuits areused for virtualization

Each LPAR is one Virtual Mainframe

VIRTUALIZATIONVIRTUALIZATION

Flexibility to respondFlexibility to respond

18

System z’s Extreme Virtualization – Built into the architecture not an “add on” feature



Consolidate 3x or more* servers per core than virtualized x86 offerings

– Less software, energy, floor space and disaster recovery

Manage more server images with fewer people

Deploy new servers and applications in seconds instead of hours or days

Simplify Image life cycle management

– z/VM® provides provisioning, automation, monitoring, workload management, capacity planning, security, charge back, patching, backup, recovery, more...

z/OS z/OS z/VM z/VM

BusinessApps

DataServing

VirtualServers

VirtualServers

Shared Everything Infrastructure(CPU, Memory, Network, Adapters, Crypto, Devices)

z/OS z/OS z/VM z/VM

BusinessApps

DataServing

VirtualServers

VirtualServers

Shared Everything Infrastructure(CPU, Memory, Network, Adapters, Crypto, Devices)

“From every perspective, running applications under Linux onSystem z makes sense for our organization. Performance, reliability, disaster recovery, server provisioningand cost efficiency have all seen dramaticimprovements – helping us deliver better serviceand value to our members across the state.”

– Ted Mansk, Dir. of Infrastructure Engineering and Databases at Blue Cross Blue Shield of Minnesota

* Based on IBM “Friendly Bank” workload scenario

IBM System z Virtualization TechnologyHelping Clients Save Money, Reduce Complexity, Improve Service



A Fully virtualized infrastructure enables optimization to maximize efficiency

80%85%90%

Up to

Up to

Up to

Reduction in energy consumption

Reduction in Floor Space

Reduction in SW License costs

Consolidate the workloads of thousands of distributed servers in a single system

System z EFFICIENCY

System z EFFICIENCY

Green strategyRunning out of energy & space


20



Flexibility to respond

Flexibility to respond



The Gold Standard for Security




SECURITY

21

IBM System z Security Reducing risk – Protecting businesses Helping businesses: Protect from INTRUSION

– z/OS and z/VM Integrity Statement

Protect DATA– Built in encryption accelerators in every server– FIPS-140-20 Level 4 certified encryption co-processors for highly secure

encryption

Ensure PRIVACY – Access to all resources is controlled by an integrated central security manager

Protect VIRTUAL SERVERS – The only servers with EAL5 Common Criteria Certification for partitioning

Respond to COMPLIANCE REGULATIONS– Up to 70% in security audit savings

SMART IS: A national digital identity card project implemented on a country-wide scale

To deliver peace of mindA leading developer and supplier of payment solutions for banks, private organizations and public institutions in Denmark, implements an IBM System z9® Enterprise Class server running z/OS, as part of an innovative solution that allows all Danish citizens to sign-on and perform digital signatures, in both banking and public systems, using a single shared one-time password (OTP) device.

Note: Source is Ponemon Institute's annual study, 2010



1 Source: gomainframe.com Joe Clabby

Up to 100% server utilization compared to 10-25% distributed server utilization1

Shared everything infrastructure allows for maximum utilization of resources

– CPU, Memory, Network, Adapters, Cryptography, Devices

Lowers power consumption for each work unit

Customer savings

Underutilized distributed serversUp to 100% utilized System z server

Multiple applications on one System z serverTypically single application per server

High business

growthHigh business

growth

z HIGH SCALABILITY

z HIGH SCALABILITY

z GREEN SAVINGSz GREEN SAVINGS



22

Maximizing Utilization of Resources

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20

40

60

80

100

Mixed Workloads on System z

SAPBatch

Business Intelligence& Data Mining

Web Serving

0%

10%

20%30%

40%

50%

60%70%

80%

90%

100%

App App App App App App






In the event of a disaster, recover your system in less than an hour with zero data loss with GDPS®/PPRC

99.999% availability with z/OS Parallel Sysplex® data sharing.

IBM commitment to prevent unauthorized application programs, subsystems, and users from gaining access, circumventing, disabling, altering, or obtaining control of key system processes, data and resources (z/OS and z/VM System integrity statements)

Smart Operating systems that can monitor, provision, alert on system trends, can even help predict incidents before they become outages

Hardware mean time to failure that is measured in decades

Self-healing capabilities, redundant componentry, dynamic sparing, concurrent upgrades

Error checking, fault tolerance, isolation, error recovery, predictive analysis, virtualization and provisioning

Storage protect keys, I/O error checking, data mirroring, huge breadth of security/ cryptography

Parallel Sysplex for z/OS availability and scalability. GDPS for OS, apps, data, and disk - IBM and non-IBM platforms.

Res

ilien

cy b

uilt

in e

ach

laye

rH

W

S

W

D

ata

Pro

cess

•* NOTE:•GDPS: http://www-03.ibm.com/systems/z/advantages/gdps/offerings/index.html•Parallel Sysplex: http://www-03.ibm.com/systems/z/advantages/pso/benefits.html•System Integrity http://www-03.ibm.com/systems/z/os/zos/features/racf/zos_integrity_statement.html, and http://www.vm.ibm.com/security/zvminteg.html•Predictive Failure: http://www-03.ibm.com/support/techdocs/atsmastr.nsf/WebIndex/WP101454

IBM System z ResiliencyAvoiding the risk of downtime, maximizing business responsiveness*



High availability is needed every day….– Overheated servers blamed for Wikipedia outage (March 25, 2010)– Lack of training reason for Google data centre problems (March 9, 2010)– PayPal suffers from e-commerce outage (Aug 3, 1009)– Customers abandon ship after major SAN outage (March 25, 2009)– Cloud bursts yet again - users (up to 113M) cannot access their email (March 10, 2009)

* IBM Market Insight** Source: Gartner Dataquest, 2007 http://www.correlsense.com/cto-blog/transaction-based-application-performance-management*** ITIC 2009 Global Server Hardware & Server OS Reliability Survey; July 2009 http://itic-corp.com/blog/2009/07/itic-2009-global-server-hardware-server-os-reliability-survey-results/

0

0.5

1

1.5

2

2.5

3

3.5

IBM AIX

Power

Downtime - Hours Per Year***(400 participants in 20 countries)

5 minutes

Solaris

Sun SPARC

HP-UX

Intel

Itanium

Microsoft

Win2008

on Intel®

x86

Novell

Linux on

Intel x86

IBM z/OS

Sysplex

Downtime costs you … (estimated cost per hour)**

Only System z can deliver…

Brokerage Operations $5.6M-$7.3M

Credit Card / Sales Authorization $2.2M-$3.1M

Pay-Per-View Television $67,000-$230,000

Home Shopping Television $87,000-$140,000

Home Catalog $60,000-$120,000

Airline Reservations $67,000-$112,000

Tele-Ticket Sales $56,000-$82,000

Package Shipping $24,000-$32,000

ATM Fees $12,000-$17,000

System z - A Proven Solution#1 reason for choosing the mainframe is high availability*



The world’s fastest and most scalable enterprise system with unrivalled reliability, security, and manageability.

The industry’s most efficient platform for large scale data center simplification and consolidation.

A “System of Systems”, integrating IBM’s leading technologies to dramatically improve productivity of today’s multi-architecture data centers and tomorrow’s private clouds.

Management integration

Management integration

Multi-platform integration

Multi-platform integration

26

Stack integration

Stack integration

IBM zEnterprise System: A New Dimension in Computing



IBM z/OS® operating systemThe gold standard for mission-critical enterprise applications and security-rich, scalable data serving

Linux workloads on System z servers

One of the most efficient platforms for large scale application consolidation

IBM AIX® and Linux operating systems on blades

For new and existing blade workloads with affinity to data and applications hosted on z/OS systems

Dedicated workload optimizers and appliances

Single function processors operating in conjunction with workloads on IBM DB2® on z/OS systems

Architected to take advantage of cloud deployments

Extend System z capabilities and qualities of service to make clouds ready for business

zEnterprise is designed to host your critical workloads

27



System z Solutions Stack

Middleware

Service Management

Operating System

Virtual Platform Management

Physical Platform Management

Hypervisor

Microprocessor

Server Storage Network

Applications

28



Large business applications portfolio

System z Solution StackComprehensive portfolio to meet your business needs

29

Middleware

Service Management

Operating System

Virtual Platform Management

Physical Platform Management

Hypervisor

Microprocessor

Server Storage Network

Applications

Supports open standards– Java™, J2EE, C/C++

– Web services

– TCP-IP

– Major communications protocols

Information Management on System zPortfolio of business intelligence and data warehousing tools



System z ….The premier system for transformation of core banking, payments, risk management and compliance, customer care and insight

Integrated RiskManagement

Customer Care and Insight

IntegrationOptimization

AnalyticsCollaboration

SecurityResiliency

Core Banking Transformation

Paymentsand

Securities

Integrated RiskManagement

Customer Care and Insight

IntegrationOptimization

AnalyticsCollaboration

SecurityResiliency

Core Banking Transformation

Paymentsand

Securities

TCS Financial Solutions

Cross IndustryCross Industry

Why banks choose System z TODAY..

j

Banking industry framework provides robust solutions …

Agility for growth

Near zero downtime

Highest throughput

Flexibility and scalabililty

Manage Risk

Highest reliability, availability and security

Reduce Cost

Reduced infrastructure complexity

Diverse applications on single platform

30

System z is the Leading Platform to Address Our Clients Requirements for Critical Banking Solutions



Tivoli® Access Manager Family

Tivoli zSecure Manager for RACF® z/VM

Tivoli Application Management for

zEnterprise

Tivoli Application Resilience for zEnterprise

Tivoli Asset and Financial Management for

zEnterprise

IBM Smart Analytics Optimizer

SPSS Predictive Analytics for Linux on

System z

MDM Server for z/OS

Lotus® Sametime

Unified Lotus Quickr for WebSphere® Portal

C/C++ CompilersEnterprise PL/I for z/OS

Rational Developer for z Unit Test

CICS® Deployment Assistance for z/OS Business Monitor for

z/OS

31

IBM System z and System z Software Delivering greater value across the portfolio



Pre-optimized Business Intelligence Software triples out of the box performance*

* Based on IBM Laboratory Tests. Actual results may vary depending on specific environment and configuration.

IBM Smart Analytics System 9600A Broad Range of Analysis, Dashboards & Reporting

IBM Smart Analytics Optimizer (4Q 2010)

BETA! DB2 10

Cognos®, InfoSphere™ Warehouse, DataQuant™ /QMF™

SPSS Predictive Analytics for System z

Delivering results in minutes instead of daysUp to 10X improvement in performanceDelivering results in minutes instead of daysUp to 10X improvement in performance

The University of North Carolina hospital system was able to drive

DOWN the cost of their healthcare while improving patient information

quality and availability.

Improve Business Performance Real-Time Analysis for Faster Insights with a Comprehensive Portfolio of Business Intelligence Offerings on System z

32



33

Under NDA until AnnounceCollaborative and Integrated development and lifecycle management for System z

Rational Team Concert for System z Fully integrated team collaboration uniting

System z, POWER®, and x86 development teams

Rational® Developer for System z Improved developer productivityRational Asset Analyzer Lower maintenance costs

NEW! Rational Developer forSystem z Unit Test Fully compatible workstation solution for

developing System z applications

Collaborative development

and deployment for all zEnterprise environments

IBM Compilers for System z Up to 60% Increase in application

performance over prior generations

Rational Tools for Multiplatform Development Available for System z



What is “Good Enough” for mainframe and zBX development?

Business Problem– Mainframe viewed by some as expensive for doing Proof of Concept applications;

• Cost of the middleware to develop against was too expensive• Cost of mainframe hardware to unit test with was too expensive

– Skills have been difficult to acquire; Green screen is boring

Consistency – cross platform development tools, easy to use– Rational Developer for System z (RDz) and Rational Team Concert

• Same front end tool for many platforms and many types of middleware• Modeling, creation and debug of cross platform code• Maintenance of “legacy” code using modern/common tools• Offload 50-80% of source code editing to desktop; frees MIPS for production

– Common middleware collection of run times, regardless of how you leverage z

Accessible – new ways to get a Unit test mainframe– Mainframe on every desktop – giving developers independence

– z/VM usage and Clouds for developers – Solution Edition for Application Development

– Rational Developers for z Unit Test feature (June 7, 2010)• mainframe instructions on a developers PC or PC Server

Affordable – cost per developer on par with Microsoft tooling– Priced to be approximately $15K per user over 3 years:

• RDz + IBM Middleware + z hardware for Unit and Function test– Tools will build for System z and zBX operating systems

z/VM DB2z/OS WebSphereIMS iLogCICS JAVA, XML

Linux on x86

zPDT

z/VM

Test



End-to-end Enterprise Content Management (ECM) integration in Team Places with enterprise grade reliability on Linux on zEnterprise

– Work with managed and accessible business content for faster project completion

24X7 presence, chat and online meetings supported on Linux on zEnterprise– Reduce costs and speed decision-making with real-time collaboration

Expanded support of client platforms and mobile devices– Empower distributed teams and mobile employees with a unified communications and collaboration platform

Save up to 50%in phone and travel supporting flexible working environments

NEW! Lotus Quickr 8.5 for WebSphere PortalNEW! Lotus Sametime 8.5.1* Lotus Connections, Lotus Notes and Domino, WebSphere Portal

* Planned capability. IBM plans are subject to change

Empower people, boost productivity and collaborate

Deliver ROI in

12 months with faster

customer service

Connect and scale

150K+ employees, customers, and

partners worldwide 24x7



HW, SW, and Maintenance included 3-5 Year “Bottom-line” prices

Targeting new System z workload opportunities

Pre-Approved and delegated net pricing; approved by STG, SWG, and MTS WW Execs

Modeled on the successful “SAP Solution Edition”Drove 36% growth in 2008

Opens door to $13.0B in opportunitiesDesigned to help you close business quickly and profitably

Announcing the new System z Solution Editions: Legendary Mainframe quality, TCA within 20% of competitive UNIX alternatives*

•IBM “Stack” Price, designed to be within 20% of equivalent HP-UX Itanium based solutions at typical market discounts

Data Warehousing

Security

WebSphere

GDPS

Application Development

SAP (new lower prices)

ACI (existing)

Cloud Services Solution

ELS – Enterprise Linux Server

Enterprise Linux

Solution Editions:



Academic Initiative z Growth Means Skills When Needed

www.ibm.com/university/systemz

– Participation – 600+ schools registered, >50,000 students attended mainframe education

– Courses – 25 Courses (plus more under development) & Mastery Exam Certification

– zCommunity – 26 Roundtables events with Clients / Schools / ISVs / Business Partners

– Resources – Access to Mainframes worldwide for teaching (6 Univ hubs)

– Student MF Contests – 10 contests with 8,630 students, 1,167 schools…more planned WW

– Ambassador community – 200+ z ambassadors

– Faculty education – Professor Summer Seminar, workshops, faculty awards, education coupons

Need assistance? [email protected] For a list of schools teaching the mainframe, see: http://www.ibm.com/university/systemz- Click on the "Participating Schools" tab

Growing Academic Initiative

Students Taught

Schools in Program

70

24

213

10,000

YE2003 YE2004 YE2005

294

27,000

YE2006 YE2007 2Q2008

408

44,000

49,000

450



IBM Global Services provides the support you need every step of the way

38

Build and run a smarter system with services for zEnterprise

Assess and design an IT architecture to optimize for business advantage



IBM Global Financing can help you achieve greater IT economic value

39

Low rate financing

IBM Project Financing™ packages

Structured line of credit to manage complex projects




Fueled by expertiseBuilt for changeReady for work

Smarter systems from IBM

40



41 Under NDA until Announce

WHY New Customers Select System z



System z vs X86 – article from eWeek, September 7, 2009



43

A retail client using SAP ERP Financials was able to achieve consistent business controls and improved management across a full application set




44

A public sector client improved productivity and service quality while becoming more responsive to new Internet banking capabilities for a tax receipt application



45

A healthcare client lowered complexity and the cost of development and test



46

Enterprise Linux Server

Scalability for business growth Strengthen operational risk management

Vietin BankBENEFITS to Clients Comparison to Distributed

Application Servers

Competitive win over Sun

distributed platform

Vietnam Joint Stock Bank for Industry and Trade (VietinBank) is one of the largest banking institutions in Vietnam.

"The IBM System z10 Business Class™ (z10 BC™) offered us more options than competing products because the system was designed to provide the world's highest levels of security while managing the world's highest amounts of transactions. We are proud to have System z to help us achieve our objective of providing continuous banking services to our customers"

Pham Anh Tuan, Deputy Director, VietinBank

35%

business growth past year

Continuous banking

services to customers

Across

800

offices and

1200

ATMs



47

Superior Scalability and Availability

Triple digit

growth

Transaction volume

69,000 users

6800 Companies

SaaS customers

Guaranteed application uptime to SaaS customers

BENEFITS to Clients Comparison to Distributed

Application Servers

10 Intel Servers10 Intel Servers

Transzap offers its customers a suite of financial tools delivered via Software-as-a-Service model. It operates Oildex, an ePayable system and digital data exchange.

"Our business and reputation rest on promising a fast, reliable and secure service to our clients," said Peter Flanagan, CEO of Transzap. "We're a small company but our transaction data volumes are growing upwards of 100 percent, annually. We couldn't trust our business to any competitive product other than the IBM System z."



Universita di Bari

Solution Edition for Cloud Computing

Press release: http://www-03.ibm.com/press/us/en/pressrelease/32051.wss

Innovative Cloud Solutions for Local Businesses

BENEFITS to Clients

Universita di Bari, established since 1924, is developing cloud-based solutions for a consortium of companies and universities from five regions of southern Italy.

Fish Market

Electronic fish auction for fishermen while on boats

Fish Market

Electronic fish auction for fishermen while on boats

Wine Market

Support for 60 wineries to determine demand and get best market price

Wine Market

Support for 60 wineries to determine demand and get best market price

MoniCA

Logistics solution tracks and collects data real-time

MoniCA

Logistics solution tracks and collects data real-time

48

Using cloud computing to allow multiple entities to tap into heavy-duty computing power at minimal cost and lowers the barrier to help local businesses to benefit from this technology.



Australia

Investment paid back in just over a year

Consolidated

60Wintel servers

1System z

Energy use

40kVA

to

4kVA(-90%)

Production cutover

48 hrsZero impact

to customers

Press release: http://www.computerworld.com.au/article/324815/allianz_consolidates_from_60_servers_1_mainframe_48_hours

Support growth with green savingsBENEFITS to Clients

Comparison to Distributed

Allianz Australia Limited offers a wide range of insurance and risk management products and services.

$1mSavings

in facilities, hardware

and software costs

"Our data centre was running out of power and we couldn't add any more servers to the infrastructure,"

Peter Rowe, Allianz Australia infrastructure and operations head

49



Deployment choices toward a Fraud & Forensic Clearing House on System z

Switch

3270 / 5250 / MQ / HTTP

IntellinxSensor

Analyzer IntellinxIntellinx

Session Analyzer

Queue

Screen/Message Recording

Session Reconstruction

REPLAY

Actions

Event Analyzer

BacklogEvents Repository

Business Event

IntellinxReports

MQSeries

Files

Host

1

2

3 4

5

z/OS

Business Goals– A User activity monitor for forensic and fraud prevention– Non-invasively capture activities from a wide variety of protocols

and systems– Stealthfully deploy, where possible

Intellinx in Action– Identified thefts from Dormant bank accounts– Eliminated RYO audit tools for major Police Dept– Stopped leakage of personally identifiable information

Bladecenter only (large financial)– Over 200 blades to meet needs of large financial institution with

the five distinct solution points of control– Weeks to configure and deploy software– Environmental and FTE costs are highest– Coordination w/ security, network and server admin teams

Linux on System z w/ blades (Police Dept)– Multiple Linux server instances to cover the five solution points – Common hardware reduces environmentals and FTEs– Network connections must be established to capture traffic

z/OS zWatch edition w/ blades (Large Bank)– Installation in under an hour, software only– zIIP and zAAP eligible for 98% of processing keeps software

pricing minimal– High volume, low CPU utilization– TCA and TCO are less than alternatives– zWatch unique capability to handle network encrypted traffic

Switch

3270 / 5250 / MQ / HTTP

IntellinxSensor

Analyzer IntellinxIntellinx

Session Analyzer

Queue

Screen/Message Recording

Session Reconstruction

REPLAY

Actions

Event Analyzer

BacklogEvents Repository

Business Event

IntellinxReports

MQSeries

Files

Host

1

2

3 4

5

Blade only



51

Client Pains Resource intensive and vulnerable to several

points of impact

Too many network hops

Outages when applying microcode updates

Multiple software tools and software process for site failovers

Benefits: Consistency of business controls Monitor and manage applications end to end Manage, maintain and provision resources with true application insulation Better utilization of assets Insulate application development teams from Infrastructure technology Consolidation of skills thru consistent tools

The Future: DB2 for z/OS with Application Server on POWER7 Blades + Future exploration of SAP Business Warehouse Accelerator on x86 Blades

Retail Client Using SAP Financials



52

The Future: DB2 z/OS with Application Server on POWER7 Blades in zBX, IBM WebSphere® DataPower®

Client Pains Not able to respond quickly for need of new

function

High cost of staff required to maintain multi-tier application

Benefits: Network speed increased by ten times Single workload management view across multiple platforms reducing labor

overhead Everything is pre tested, pre configured for their mission critical application

Public Sector Client Develops an Internet Tax Application



China Internet Network Information Center (CNNIC)

CNNIC decided to use IBM System z as the IT foundation of its Prospective Business Research Platform after stringent tests and simulations on various industry solutions. CNNIC chose IBM's mainframe technology for its superior integration capability as well as unmatched stability and security required for its IT infrastructure, to support explosive internet growth.

BC Card (Korea)

Business strategy is to become a global leading company in card payment and billing. Required an IT infrastructure that supports its vision for growth, a resilient and cost effective hosting system to process large transactions, while delivering high quality global payment services, customized processing services and differentiation capabilities to its member banks.

FNB Namibia

First mainframe in Namibia

Bank needed a platform to support its growth and improve services for customers, and comply with regulatory requirements.

Selected the mainframe to ensure cost effectiveness and business continuity with exceptional security and availability.

53

Mainframes in Growth Markets



Competitively priced offerings

Enterprise Linux Server

Solution Editions

Start with the system that matches your business needs

System z commitment on upward compatibility as you upgrade

IBM Global Financing Offerings

Equipment financing, Migration projects or Infrastructure

transformation

54

IBM System z – Platform of the Future

z10™ zEnterprisez196



You’ll want to look into a System z todayYou’ll want to look into a System z today

NEW Customers selected System z to run their mission critical processesNEW Customers selected System z to run their mission critical processes55













System z HIGH

SCALABILITY

System z HIGH

SCALABILITY

System z EXTREME

VIRTUALIZATION

System z EXTREME

VIRTUALIZATION


SECURITY System z GREEN

SAVINGS

System z GREEN

SAVINGS

System z CLOUD

System z CLOUD

If this is One of Your Critical Business Needs ….





Comparing System z to other servers

56



Business processes and the applications that support them are becoming more service oriented, modular in their construction, and integrated.

The components of these services are implemented on a variety of architectures and hosted on heterogeneous IT infrastructures.

Approaches to managing these infrastructures along the lines of platform architecture boundaries cannot optimize: alignment of IT with business objectives; responsiveness to change; resource utilization; business resiliency; or overall cost of ownership.

We need better approach: The ability to manage the IT infrastructure and Business Application as an integrated whole.

Information technology today: Limitations

Information technology today is limited by the technology and architecture configurations available.

Information technology today is limited by the technology and architecture configurations available.

DS Servers

LAN Servers

SSL/XMLAppliances

CachingAppliances

RoutersSwitches

FirewallServers

File/Print ServersBusiness Intelligence

Servers

Security/Directory Servers

Web Servers

Application Servers

System z



Security issues abound

Google “vmware code execution vulnerability” yields over 56,000 hits. – The vast majority related to bugs resulting in security exposures in VMWare

– This is but one example: www.networkworld.com/community/print/41608

Google “zvm code execution vulnerability” yields less than 600 hits– None are actual security exposures in zVM

– They just happen to have the search terms on the same webpage

But both zVM and VMWare are certified at EAL level 4+



System z can already deliver the lowest cost per unit of work for large scale data processing workloads

– Large scale workload consolidation– Huge I/O bandwidth– Structured management practices– Leverage z/OS and Linux on System z

zEnterprise can extend these cost advantages across a broader range of workloads and resources

– Leverage select IBM Blade servers for workloads less suited for System z• Heavy computational workloads – POWER7• Light I/O workloads – System x Blades*

zEnterprise enables centralized platform and workload management across all zEnterprise resources

Bottom Line: Fewer pieces to buy, assemble, manage and track

* Available 1H2011

Efficiency Delivered Through Fit-for-Purpose ComputingSimplify and consolidate to save BIG!



System z Workload Migration Characterization

2. I/O Bound–e.g. high I/O content applications

9. Protocol Serving–e.g. static HTTP, firewall, etc.

3. Mixed Low–e.g. multiple, data-intense applications or skewed OLTP, MQ

1. Data Intensive– large working set and/or high I/O content applications

4. Mixed High–e.g. multiple, cpu-intense simple applications

8. SkewlessOTLP–e.g. simple and predictable transaction processing

7. Java Heavy–e.g. cpu intensive java applications

6. Java Light–e.g. data intensive java applications

5. Database– e.g. Oracle DBMS ordynamic HTTP server

10. CPU Intensive–e.g. numerically intensive, etc.

Superb Candidates for System z

More Challengingfor System z…

But zEnterprise is a

game changer



61

IBM System z offers game changing

capabilities that result in significant savings

of both time and money



62

“One Box is Enough” -- zEnterprise

•Current SPARC •zEnterprise

150 Sun/Solaris DB servers 1 zEnterprisez196 Linux Only

•System•Overview

•Tangible•Benefits•(5 Year TCO•Comparison)

Existing SPARC (4800 Cores)

Proliant BL 460c (600 Cores)

Purchase z196 (80 Cores))

Hardware (Purchase) 17,441,235 1,101,315 2,280,000

Hardware Maintenence 6,976,494 440,526 1,414,950

Software Licences 14,774,250 3,429,698

Software (S&S) 127,761,150 17,645,625 5,702,486

Total 152,178,879 33,961,716 12,827,133

•Intangible•Benefits

• Improved security – no information leak during data copy between servers• End to End disaster recovery – simplified, single switchover• Improved availability – no network routers or switches

75 HP (IA) DB servers

HP Nehalem

•Prices based on US market prices, local pricing and conditions will vary



Workload DescriptionVitrualized on Intel 8

core BladePowerVM on PS701 8

core Bladez/VM on zEnterprise

32 IFLs

Heavy I/OOnline banking workloads, each driving 22 trans per second with 1 MB I/O per trans

$23,621 per workload

10 workloads per Intel blade


15 workloads per POWER7 blade


240 workloads per 32-way z/VM

Heavy WorkloadsOnline banking workloads, each driving 460 trans per second with light I/O


1 workload per Intel blade


2 workloads per POWER7 blade



Light WorkloadsOnline banking workloads, each driving 22 trans per second with light I/O

$6,561 per workload36 workloads per Intel

blade

$6,889 per workload34 workloads per POWER7 blade



TCA Comparison over 3 years

Consolidation ratios derived from IBM internal studies. Z196 32-way performance projected from z196 8-way and z10 32-way measurements. zBX with x blades is a statement of direction only. Results may vary based on customer workload profiles/characterisitcs. Prices will vary by country.Consolidation ratios derived from IBM internal studies. Z196 32-way performance projected from z196 8-way and z10 32-way measurements. zBX with x blades is a statement of direction only. Results may vary based on customer workload profiles/characterisitcs. Prices will vary by country.



36 workloads

per x blade

240 workloads

per 32 IFLs

2 workloads

per p blade500 heavy workloads

2500 heavy I/O Workloads

7000 light workloads

7 zBX racks

195 x blades total

9 zBX racks

250 p blades total

5 zEnterprise

CPFs334 IFL’s

Best fit assignments

Configuration is based on consolidation ratios derived from IBM internal studies. z196 32-way performance projected from z196 8-way and z10 32-way measurements. The zBX with x blades is a statement of direction only. Results may vary based on customer workload profiles/characteristics.

An example of consolidating 10,000 distributed Workloads

Offering a New Opportunity to Consolidate and Simplify Large Data Centers



500 heavy workloads

2500 heavy I/O

Workloads


Deployed on Intel Best fit on zEnterprise

1603 Servers 21 frames

13,763 Network (parts) 223

2131 Power (KW) 419

198 Administrators 76

1603 Storage admin points

10

Fewer Pieces to Buy, Assemble, Manage and Track



Three Year Cost Of

Deployed on Intel Best fit on zEnterprise

Servers $314M $138M

Network $3.8M $0.2M

Power $5.6M $1.1M

Labor $94.8M $36.4M

Storage $211M $108M

Total $629M $284M

Total cost per workload

$62K $28K

500 heavy workloads

2500 heavy I/O

Workloads


Results may vary based on customer workload profiles/characteristics. Prices based on publicly available US list prices. Prices may vary by country

56% less

55% less

62% less

80% less

95% less

49% less

Fewer Pieces = Fewer Dollars…the Savings Add Up



Using mainframes reduces total IT cost

Mainframe centric companies had IT costs 14% lower than average Distributed server centric companies had IT costs 33% higher than average Actual percentage varies by industry, but mainframe centric companies’ IT costs were

consistently lower than average, and distributed costs were consistently higher than average.



68

Imagine the possibilities…..An operational advantage you can turn into a business advantage

R I I NS TC E L

MA INFRAME

ClaimsPOS

Credit/Debit

DecisionSupport

FilterExtract

Move

PII input

DB

tmp

tmp

resultresult

result

Traditional Operations

Business Problem–Data warehouse can detect trends, but not necessarily prevent fraud or upgrade transactions in real time because data is copied in bulk or batch mode

Insight instead of Hindsight–Opens up opportunities for real time analytics

–Preventing fraud–Making business analytic decisions faster

–Improved performance and lowers cost–Uses blade-based specialty processors, storage for warehouse workloads–Boosts overall query performance up to 80x –Customers could see a 40% reduction in storage utilization–Supports in-memory column store for parallel star schema queries –Uses column-based compression to minimize storage needs–Unchanged interfaces to DB2 for z/OS and thus no changes to the BI/DW applications–Provides capability to perform both transactional (OLTP) and warehousing (OLAP) type of queries in the same database management system

zEnterprise

ISAO or

DecisionSupport

Transform

Z196Claims

POSCredit/Debit

DB

CognosOn

Linux

Blad

es



69

Networked Web ServingNetworked Web Serving

Benchmark Winner

1st Tier 2nd Tier 3rd Tier

Client

Client

Client

App Server

App Server z/OS

Database Server

Introducing Virtualization Managers – it’s a good thing

1st Tier 2nd Tier 3rd Tier

Client

Client

Client

App App

erver Server z/OS Database Server

App App

erver Server

Benchmark Winner

Reduction in capital, environmentals, FTE’s, Software licensing, simplification, risk

Introduction of vMotion will improve distributed application availability

But…..does it improve end to end solution?

–At the business, operations and organizational levels?

Solutions are NEVER this simple



70

End User – Hosted Client

Application Server

Service Platform

Desktop Framework

Devices

Websphere

Service PlatformDatabase

Connectors

SQLJ

Service

MessageServlet

Loan Applic.

Bank Teller

GeneralLedger

Credit CardProcessing

Risk Analysis Service

Service

CurrentAccounts

Banking Portal

Device Apps.

XML over HTTP(S)

Middleware Services

BatchPrograms

Bill PaymentDatabase

SQLJ Desktop Framework Services

Personalization

Service Systems& Databases

MQ

CurrencyExchange Temp data to

Electronic Data Warehouse

Batch Process

RMI/IIOP

EJB

WAS

BillPayment

EJBs

AuthenticationServer

Translated to a Business Architecture



Application Architecture: The Complexity of Distributed

Business Objectives A bank has four basic transactions

– Credit, Debit, Transfer, Inquiry And they have a variety of choices for front end interface

– ATM, Branch Terminal, Kiosk, Web browser, PDA, Cellphone Customer uses a Bladecenter to drive multi channel transformation The back end processing remains the same regardless of the

presentation deviceFully Distributed Model (if deployed) Each application becomes a cluster of server images and must be

individually authenticated and managed Each line is a separate network connection, requiring high bandwidth

and protection Data is replicated across enterprise to meet scalability Customer deploys/builds automation processes to facilitate system

recovery with additional software – this is not trivial and requires additional software and unique development

High environmental needs and full time employees to manage infrastructure

Management Considerations for an enterprise

AuthenticationAlert processingFirewallsVirtual Private Networks

Network BandwidthEncryption of dataAudit Records/ReportsProvisioning Users/Work

Disaster Recovery plansStorage ManagementData TransformationsApplication Deployment

How does the Virtualization Manager improve these?

Application Servers

WebSphere®


Connectors

SQLJ

Service

MessageServlet

Loan Applic.

Bank Teller

GeneralLedger


Risk AnalysisService

Service

Con

nectors/Ap

pliances

CurrentAccounts

BatchPrograms


SQLJ

CurrencyExchange

Temp data toElectronic Data Warehouse

Batch Process

RMI/IIOP

EJB

WAS

BillPayment

EJBs


M

gt

M

gt

M

gt

M

gt

M

gt

Mg

t

M

gt

M

gt

Mg

t

Mg

tMg

t

Mg

t

Mg

t



Application Architecture: A Large EnterpriseEnd User –

Hosted Client

Application Server

Service Platform

Desktop Framework

Devices

Websphere


Connectors

SQLJ

Service

MessageServlet

Loan Applic.

Bank Teller

GeneralLedger


Risk Analysis Service

Service

Connectors

CurrentAccounts

Banking Portal

Device Apps.

XML over HTTP(S)

Middleware Services

BatchPrograms


SQLJ

Desktop Framework Services

Personalization

Service Systems& Databases

MQ

CurrencyExchange

Temp data toElectronic Data Warehouse

Batch Process

RMI/IIOP

EJB

WASBillPayment

EJBs


System zEnterprise

Potential advantages of consolidating your application and data serving Security Fewer points of intrusion Resilience Fewer Points of Failure Performance Avoid Network Latency Operations Fewer parts to manage Environmentals Less Hardware Capacity Management On Demand additions/deletions

With

IFLWith zAAP

& zIIP Utilization Efficient use of resources Scalability Batch and Transaction Processing Auditability Consistent identity Simplification Problem Determination/diagnosis Transaction Integrity Automatic recovery/rollback

Security Fewer points of intrusion Connectivity Improved throughput Simplification Problem Determination/Monitoring Development Consistent, cross platform tools

With

zBX

zEnterprise Combinations – reducing control points

Assumes the Bladecenter for the multi channel transformation

Can leverage Websphere on either Linux for System z or z/OS

The Bladecenter functionality can be migrated to zBX in the future

TCA and TCO advantages over distributed It’s the very same programming model in a

different container that provides a superior operations model



Choices: Co-location drives better value than commodity virtualization

Business Problem– Customer building web services applications to access highly scalable and available DB2 for z/OS– Deployed WAS on distributed systems and was satisfied with current performance– Realized workload growth and end to end availability and governance would add additional complexity (e.g.

redundant distributed servers, new automation tools)

Co-location of applications and databases on z/OS completely changes operations model– Customer moved WAS application to z/OS where it was co-located with DB2 for z/OS– Customer achieved 100% throughput improvement and a 50% reduction in DB2 utilization

Value to customer: – More consolidation possibilities on z/OS– Co-location of app and data reduces operational complexity

–Debug, Business Resilience, security, automation, capacity mgt– Reduction in CPU utilization reduces MW licensing costs








74

Benefits of Type 2 Local DB2 access vs Remote Type 4 access– A 50% reduction in average end (Web) user response times– Overall CPU requirement was 50% less than the remote (two z/OS) system

implementation

Proximity to data

Web request serviced here

Servlet invokes business process EJB on Distributed

Business logic EJBs executed here

EJB SQL calls made here – JDBC Type 4 connection issues DRDA SQL request to DB2 on z/OS

Web request serviced here

Servlet invokes business process EJB on z/OS

Business logic EJBs executed here

EJB SQL calls made here – JDBC Type 2 connection makes local access to DB2 on z/OS

Distributed



Proximity to data – online banking workload analysis

75

Co-located application and DB server Distributed application and DB servers

DatabaseServerDatabaseDatabaseServerServer

ApplicationServer

ApplicationApplicationServerServer

DatabaseServer

DatabaseServer

ApplicationServer

ApplicationServer

Message Queue

2ms per IO

10ms (simple transaction)

1ms

3ms per SQL stmt

Process Request

Response

5 SQL stmts:3 read 2 write

Assumed Message Flow

DatabaseServer

DatabaseServer

ApplicationServer

ApplicationServer

Message Queue

1Gb Ethernet

2ms per IO

10ms

1ms

3ms per SQL

2ms per IO


1ms

3ms per SQL

2ms per interaction

Request

Evaluation of the application and data on multiple physical servers:– Overall transaction throughput (at constant response time) would be degraded 33%, requiring

more capacity than originally planned– A significant amount of memory was required to hold in-flight work, comprising 80% of each

server’s cost



76

Co-located application and DB server Distributed application and DB servers

DatabaseServerDatabaseDatabaseServerServer

ApplicationServer

ApplicationApplicationServerServer

DatabaseServer

DatabaseServer

ApplicationServer

ApplicationServer

Message Queue

2ms per IO


1ms

3ms per SQL stmt

Process Request

Response

5 SQL stmts:3 read 2 write

Assumed Message Flow

DatabaseServer

DatabaseServer

ApplicationServer

ApplicationServer

Message Queue

1Gb Ethernet

2ms per IO

10ms

1ms

3ms per SQL

2ms per IO


2ms

3ms per SQL

2ms per interaction

Request

Proximity to data – online banking workload analysis

Prior chart might be best case scenario. Add “non-functional” requirements:– Additional authentication flows – more interconnect and i/o

required– Audit complexity may increase to correlate access to

personally identifiable data– Business Resilience solutions may be more complex;

Additional environmental costs– Storage management costs across the workflow

SAF

SAF

Security

Server

AuditLogs

AuditLogs

AuditLogs

PARALLEL SYSPLEX MULTI SYSTEM CLUSTER

1ms

DFSMS

Backup2ms

DFSMS








77

Linux on zEnterprise Lower acquisition costs of hardware and software vs. distributed servers*• Less than $1.00/day per virtual server (TCA)*• Reduce floor space by up to 90% compared to distributed servers*• Reduce energy consumption by up to 80% compared to distributed servers*

Consolidate 40 Oracle server cores to 2 Linux Cores on zEnterprise

Lower acquisition costs of hardware and software vs. distributed servers*• Less than $1.00/day per virtual server (TCA)*• Reduce floor space by up to 90% compared to distributed servers*• Reduce energy consumption by up to 80% compared to distributed servers*

Consolidate 40 Oracle server cores to 2 Linux Cores on zEnterprise

* Distributed server comparison is based on IBM cost modeling of Linux on zEnterprise vs. alternative distributed servers. Given there are multiple factors in this analysis such as utilization rates, application type and local pricing, etc.; savings may vary by user

The Most Efficient Platform for Large Scale Consolidation:

77% savings

37% savings



Consolidate More and Spend Less with IBM zEnterprise Increasing the Economic Appeal of Linux on z/VM Server Consolidation and IT Optimization

zEnterprise delivers an even greater level of server consolidation density and scalability with Linux and z/VM that sets a new standard for TCO and service management

Solution Edition pricing for very large consolidations starts at under $1,000 per virtual server for 3 years – that’s less than $1 per day! (1)

Run more virtual servers per core

z10 z196

IFL Core IFL Core

(1) Calculations based on specific solution offering components using IBM and client experiences. Results can vary.

Configure more cores per System

z10 zEnterprise

Spend even less on software

Save even more on floor spaceand energy

costs

Increase staff productivityeven more



DistributedSystems

Select IBM Blades

z/OS

TCA Focus

TCO Focus

Linux on z/VM

Silo managed islands of computing

Less dynamic

Minimal resource sharing

LOWER HIGHERScalability, Security,

Dynamic Workload ManagementScalability, Security,

Dynamic Workload Management

zEnterprise: Full value for your multi-tier, multi-architecture strategy

Expanded ISV support for enterprise applications

Targeted for applications that interact with mainframe data and transactions

Provisioned and managed by System z

Extreme scalability and performance for transaction processing and data serving

High availability and cross-system scalability with Parallel Sysplex and GDPS

Leading policy-based capacity provisioning and workload management

Pervasive, high-performance security support

Extreme consolidation of servers and networking

Superior levels of server provisioning, monitoring, and workload management

Industry-best virtual I/O bandwidth and reliability

Fewer components and reduced complexity

System z qualities of dynamic resource management and capacity-on-demand

Seamless integration with z/OS backup and DR



Beware of Benchmarks

80

•40 Miles/gallon

•7 cubic feet of storage

•4 passenger

•$15,000

•10 Miles/gallon

•7 cubic feet of storage

•2 passenger

•$55,000

•Problem 1: Which is cheaper to commute to work with?

•Problem 2: You want to move your house:

•How many vehicles and trips will be required to move?

•Are extensions, such as the trailer, valuable?

•How do you get the Grand Piano moved? What if it rains?

•They aren’t mutually exclusive either:

•The family rides in the car, the furniture rides in the truck

Several compartments

Bladecenter + System z = zEnterprise = Enterprise Solution



z196 in the top tier of Industry Standard Benchmarks

SPECint– Moved to SPECcpu 2006– Compiler (XL C/C++) work on target:

• 5-7% performance per release• 1.22X across 1.10, 1.11, 1.12

– Outlook: z196 in lead pack• Using XL C/C++ 1.12, at 5.2 GHz• Single-thread, no auto-parallel• Expected to be #1 or #2 with Power 7 being the other platform

Java– SPECjvm

• 1.50-1.55X z10 1.1-1.2X Nehalem (more uni-like)– SPECjbb (meant to be run SMP)

• 1.65X z10 1.4X Nehalem (excluding benchmark specials)– Measurements at 4.85 GHz, no exploitation of new instructions– With GA hardware running at 5.2 GHz, this is expected to beat Westmere as well

Rate: Do Not Publish. Only verbal discussions via NDA at customer request•While our rates are top notch, price performance is not. We are a multi-workload platform. These are uni dimensional benchmarks. •They show that our ISB ratio’s are similar to our LSPR ratio’s. They also provide a point in time comparison to distributed. •However, we are not in a benchmark war, as a value platform. •Nor do we want to downplay benchmarking because it does provide Power7 a competitive advantage. •A process will be developed to make this information available to Regional specialists for VERBAL disclosure to clients. Responsible: Jim PorellFinal measurements are underway. Goal to complete for GA.



Summary of Competitive perspective

zEnterprise takes a solution focus managing virtual machines across System z and Bladecenters

– Alternative VMs focus on a single server type or a portion of an end to end solution Collaboration between System z and Blades provides an operational advantage by:

– Sharing data between servers and therefore reducing data volumes by 40-60%– Leveraging real time data access to provide Insight versus the hindsight provided by batch data moves between

alternative server implementations– Simplifying the provisioning of data toward specific workloads– Reduction of risk and simplification of governance and compliance as a shared operations model to

•avoid the pitfalls of separate security domains used in distributed environments•reduce the number of security intrusion points•reduce the number of points of failure and leverage components with a longer mean time between failure than a pure distributed environment.

Linux for System z virtual servers are as low as $1000 per server over 3 years or roughly $1/day

– These server images will benefit from legendary System z availability, security and systems management Customers that have moved distributed Web Service apps that access z/OS data onto z/OS

have experienced a number of benefits:– 100% improvement in performance by leveraging in memory data instead of network attached– 50% reduction in DB2 for z/OS processing as it reduces network attached connection management– Improvements in availability through the reduction of points of failure and built in Parallel Sysplex automation– Reduced risk and simplified compliance as a single administrative domain is in place– Significant savings can also be seen by moving web applications to Linux on z and using

hipersockets to access DB2 data on z/OS



Summary of Competitive Perspective

Businesses can add capacity to existing System z and Bladecenter servers without the need to repartition application workloads.

– Processing capacity can be added or provisioned on demand to cross platform workloads via common hardware management console.

•This can be far simpler and faster to deploy than adding new servers to a distributed processing cluster.

Redundant and spare components are available in the zEnterprise on both the System z and Bladecenter processors. In addition, many change management processes may be implemented while workloads continue to operate.

– This reduces the number of planned and unplanned outages that might be experienced in a purely distributed server environment.

– Call home capabilities of System z apply to zBX to improve overall availability. – Consultant studies demonstrate that reducing down time will decrease financial losses due to outages. Financial

impact varies by industry and length of outage. Efficiency

– Up to 80% reduction in energy and floor space compared to distributed systems– Up to 70% reduction in labor compared to distributed systems



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