The New Enterprise Data Center Summit. Session: zmr - consolidation with an affordable mainframe Speaker: Sreenath Chary Date: 19 th Nov 2008

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1 The New Enterprise Data Center Summit 2008 Session: zmr - consolidation with an affordable mainframe Speaker: Sreenath Chary Date: 19 th Nov 2008

2 Industry Innovation Medical imaging 1TB/4D image Financial markets ~130B market messages Mobile phones ~4B mobile subscribers 1MB/2D image 5B market messages 1B mobile subscribers By 2010, medical images will take up 30% of the world s storage By 2010, over half of equities trading will be algorithmic By 2010, 74% of the world s mobile subscribers will live in emerging economies Sources: IBM Global Technology Outlook, 2005; TABB Group, Trading at Light Speed: Analyzing Low Latency Market Data Infrastructure, March 2007; Aite Group, Algorithmic Trading 2006: More Bells and Whistles, November 2006 (note: U.S. equities); Infonetics Research, Radio Access Network Equipment and Subscribers report, October 2007; Pyramid Research, October 2007

3 IT Infrastructure Growth Spending (US$B) $300 $250 $200 $150 $100 $50 Power and cooling costs Server mgmt and admin costs New server spending Installed Base (M Units) $ Source: IDC, Virtualization 2.0: The Next Phase in Customer Adoption, Doc #204904, Dec 2006

4 IT Energy Crisis During the next 5 years, most datacenters will spend as much on energy as they do on hardware 300 Data center watts/sq. ft Low High or earlier Current By 2011 Doesn t include energy needed to remove heat can increase overall power requirements by 80% to 120% Source: Gartner, U.S. Data Centers: The Calm Before the Storm, ID #G , September 25, 2007

5 More than 70% of the world s Global 1000 organizations will have to modify their data center facilities significantly during the next five years. -- Gartner, September 2007 Source: Gartner, U.S. Data Centers: The Calm Before the Storm, Doc. #G , September 25, 2007

6 The New Enterprise Data Center Stage of Adoption VIRTUALIZED GREEN RESILIENT

7 System z Virtualization Leadership Industry standard for high utilization Business-driven service management Government standard for security Just-in-time capacity

8 Datacenter Integration & System z System z has led advances in Virtualization and Logical Integration of Enterprise Servers, I/O and Storage with an integrated stack zvm hypervisor for zlinux scale-up and scale-out, efficient consolidation model Business Resilience across long distances with integration of parallel sysplex extensions and storage copy services Efficient storage hierarchy management with DFSMS & Compression services Workload management & recovery of applications on zlinux/zvm and data on zos These result in reduced system management, power/cooling, floor space costs Additionally System z design targets high business resiliency, security, auditability, problem determination, and investment protection (Software and hardware models)

9 Enterprise BEFORE Integration: data & applications, shared services 1 st Tier 2 nd Tier 3 rd Tier Client Client Client Networked Web Serving App Server App Server Multiple Data Copies z/os Database Server Potential advantages of consolidating your application and data serving Security Resilience Performance Operations Environmentals Utilization Scalability Auditability Simplification Transaction Integrity 1 st Tier Client Client Client Fewer points of intrusion Fewer Points of Failure Avoid Network Latency Fewer parts to manage Less Hardware Efficient use of resources Batch and Transaction Processing Consistent identity Problem Determination/diagnosis Automatic recovery/rollback Data Power WAS ziip, zaap & IFL enabled With IFL 2 nd Tier IMS CICS ziip DB2 CP AFTER Integrated z/os Application & Database Servicing zaap z/os With zaap Linux IFL Integrated Application & Database Server Single Data View

10 Consolidation on System z meets the challenge Potential savings up to 80% compared to x86 Sprawl* DGTI Quebec on System z9 60 UNIX servers to 5 IFLs on z9 Increased capacity by over 2.5X Nationwide Insurance on System z9 250 Servers to 6 IFLs on z9 Will save $16M over next 3 Yrs Large Linux environment on z x86 Servers to 26 IFLs Save up to 80% over 3 Years Up to $56M in savings K$ 5.1 X 1.0 X 760 x86 CPs 26 z10 EC IFLs Sun X2100 Single Core servers 80% Savings z/vm Linux on System z10 EC Space Power People Co Software Maint Software Maint Hardware Potential savings of up to 80% when consolidating to System z10 and Linux versus distributed x86 Servers *Comparison is versus x86 Blade servers without virtualization, reflecting a current-day consolidation. Reductions will vary by the number and age of the x86 servers being consolidated.

11 Introducing the IBM System z10 Enterprise Class (z10 EC) A marriage of evolution and revolution Evolution Scalability and virtualization to reduce cost and complexity Improved efficiency to further reduce energy consumption Improved security and resiliency to reduce risk New heights in storage scalability and data protection Revolution Just in time deployment of capacity resources Vision to expand System z capabilities with Cell Broadband Engine technology 4.4 GHz chip to deliver improved performance for CPU intensive workloads

12 Unprecedented performance and capacity Transforming the economics of the data center More Engines z900 Lower software license costs Lower labor costs Lower energy and facilities costs 70% more usable capacity z990 z9 EC z10 EC 50% average increase in specialty engine performance No charge MES upgrade for ziip, zaap, IFLs Up to 2x performance increase in CPU intensive tasks 50% more performance One System z10 EC core can do work of up to 30 x86 Cores, helping to reduce licensing costs by up to 30 to 1 and lower TCO by up to 80%

13 More workloads Benefit from z10 ziip can help to integrate data across the enterprise by optimizing resources and lowering the cost of ownership for eligible data and transaction processing workloads Centralized data serving First to exploit ziip were workloads such as BI, ERP, and CRM applications running on distributed servers with remote connectivity to DB2 V8 Network encryption ziip becomes an IPSec encryption engine helpful in creating highly secure connections in an enterprise Serving XML data ziip is enabled for XML parsing, first to exploit this is inserting and saving DB2 9 XML data over DRDA Remote mirror ziip becomes a data mirroring engine with ziip assisted z/os Global Mirror function (zgm, formerly XRC) helpful in reducing server utilization at recovery site (with z/os V1.8 and above) Exploiting of ziips by ISVs zaap designed to help implement new application technologies on System z Java was first exploiter lower cost of computing for WebSphere Application Server and other Java applications XML System Services (new with z/os V1.9; support for v1.8, V1.7) support for hosting XML data and transactions; DB2 9 and Enterprise Cobol V4.1 are the first exploiters.. and more on Java performance SDK6 on z10 EC designed to deliver improved performance over SDK5 on z9 EC New z10 processor chip design and more available server memory.. plus in 2Q08 support for new decimal floating point on z10 EC by Java BigDecimal * new! new!

14 System z Energy Efficiency Resource Link provides tools to estimate server energy requirements before you purchase a new system or an upgrade Offers a 15% improvement in performance per kwh over z9 EC Has energy efficiency monitoring tool Introduced on IBM System z9 platform in April 2007 Power and thermal information displayed via the System Activity Display (SAD) New IBM Systems Director Active Energy Manager (AEM) for Linux on System z V3.1 Offers a single view of actual energy usage across multiple heterogeneous IBM platforms within the infrastructure AEM V3.1 energy management data can be exploited by Tivoli enterprise solutions such as IBM Tivoli Monitoring, IBM Tivoli Usage and Accounting Manager, and IBM Tivoli OMEGAMON XE on z/os AEM V3.1 is a key component of IBM s Cool Blue portfolio within Project Big Green MIPS Capacity per kwatt x improvement in MIPS / kwatt % % H6 G2 G3 G4 G5 G6 z900 z990 z9 EC Energy efficiency driven by Focus on balanced performance Efficient, policy based management of workloads Advanced virtualization of all key resources including memory Efficient resource usage 1091 projected z10 EC

15 Protecting with IBM s world-class Business Resiliency solutions Preplanning capabilities to avoid future planned outages, e.g. dynamic LPAR allocation without a system outage Integrated enterprise level resiliency for heterogeneous data center disaster recovery management Policy driven flexibility to add capacity and backup processors Integrated cryptographic accelerator Advanced Encryption Standard (AES) 192 and 256 and Stronger hash algorithm with Secure Hash Algorithm (SHA- 512) Tamper-resistant Crypto Express2 feature Supports high levels of security for demanding applications Fully programmable and configurable High scale performance for SSL transactions Trusted Key Entry (TKE) 5.2 with optional Smart Card reader System z the only platform that is EAL5 certified1 * All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only.

16 Just in time capacity and management Respond in minutes to unpredicted demand Business policy driven Fully automated or manually controlled Integrated monitoring Deploy new workloads in minutes Eliminates pre-planning requirements Reduces planned system outages BOTTOM LINE: Deployment in minutes on demand automatically responding to peaks and troughs

17 The right level of business continuity protection for your business..gdps family of offerings Continuous Availability of Data within a Data Center Continuous Availability / Disaster Recovery Metropolitan Region Disaster Recovery at Extended Distance Continuous Availability Regionally and Disaster Recovery Extended Distance Single Data Center Applications remain active Near-continuous availability to data Two Data Centers Systems remain active Automated D/R across site or storage failure No data loss Two Data Centers Automated Disaster Recovery seconds of Data Loss Three Data Centers Data availability No data loss Extended distances A B C GDPS/PPRC HyperSwap Manager GDPS/ PPRC HyperSwap Manager GDPS/PPRC GDPS/GM GDPS/XRC GDPS/MGM GDPS/MzGM

18 The Future runs on System z The Future begins today The System z10 Enterprise Class "The IBM mainframe has been a key part of our IT infrastructure over the years, with clear cost benefits, but this new system takes that value proposition a leap ahead. The capacity and scale of this system changes the economics of the mainframe and is a significant step forward in addressing our constantly evolving technology needs." Sandee Kotowski, Manager of Mainframe Infrastructure, Hewitt Associates.

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22 The New Enterprise Data Center Summit 2008 Thank you

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