IBM Systems IBM System z Consultant for Spain, Portugal, Israel, Greece, Turkey

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1 Introducing the IBM System z10 Enterprise Class The cornerstone of the New Enterprise Data Center Fernando Nogal IBM Systems 2008 IBM Corporation IBM Certified Consulting IT Specialist IBM System z Consultant for Spain, Portugal, Israel, Greece, Turkey Fernando_Nogal@pt.ibm.com

2 Trademarks The following are trademarks of the International Business Machines Corporation in the United States and/or other countries. IBM* IBM logo* AIX* CICS* DB2* DS8000 FICONl* GDPS* Geographically Dispersed Parallel Sysplex HyperSwap IMS Paralle Sysplex* Rational* WebSphere* System Storage System z System z9* System z10 Tivoli* z9 z10 z/os* z/vm* * Registered trademarks of IBM Corporation The following are trademarks or registered trademarks of other 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 therefrom. 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. 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. * All other products may be trademarks or registered trademarks of their respective companies. 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. 2 IBM Systems

3 Agenda The New Enterprise Data Center The role of IBM System z in the data center Introducing the IBM System z10 Enterprise Class (z10 EC) Solutions with the z10 EC 3 IBM Systems

4 Multiple forces are driving a transformation of the data center Operational issues have IT at a break point 4 Accelerated pace of business and technology innovations IBM Systems

5 IT organizations are challenged by a set of operational issues Challenges Rising costs of systems and networking operations Costs & Service Delivery Explosion in volume of data and information Difficulty in deploying new applications and services Business Resiliency & Security Security of your assets & your clients information Landslide of compliance requirements Systems and applications need to be available Rising energy costs & rising energy demand Energy Requirements Power & thermal issues inhibit operations Environmental compliance & governance mandates 5 IBM Systems

6 The New Enterprise Data Center: An evolutionary new model for efficient IT delivery... New economics: Virtualization with optimized systems and networks to break the lock between IT resources and business services Rapid service delivery: Service management enables visibility, control and automation to deliver quality service at any scale Aligned with business goals: Real-time integration of transactions, information and analytics - and delivery of IT as a service 6 IBM Systems

7 Stages of Adoption Simplified New Economics Shared Rapid Deployment Dynamic Business Goal Driven Physical consolidation and optimization Virtualization of individual systems Systems, network and energy management Resiliency & security Highly virtualized resource pools ensembles Integrated IT service management Green by design Virtualization of IT service Business-driven service management Service oriented delivery of IT 7 IBM Systems

8 IBM System z: The Cornerstone of the New Enterprise Data Center Simplify: Change the Operational model to reduce cost Operational superiority through Extreme virtualization and leading management Robustness through leadership security and availability Save more by adding further virtualized applications Shared: Today s ultimate shared resource pool Processors, memory and channels can be shared across all the applications Hundreds of applications can share resources on System z simultaneously Dynamic: automating service delivery to meet new business needs Automated provisioning and management optimize for high value services Services can be added or deleted on the fly Applications can be integrated with centralized enterprise-wide real time data 8 IBM Systems

9 IBM s Own Data Center Transformation IBM Data Center Evolution CIOs Today 1 Reduced operational costs by $1.5 billion/year Host data centers Web hosting centers 80 5 Network 31 1 Applications 15,000 4,700 Project Big Green Double compute capacity by 2010 with no planned increase in consumption or environmental impact saving 5 billion kilowatt hours per year... equals energy consumed by Paris - the City of Lights The New Enterprise Data Center Increased quality of service delivery Real time integration of information and business services 9 IBM Systems

10 IBM consolidates distributed servers for large savings IBM Expected Results Reduce operational complexity with significantly less hardware 3,900 distributed servers going to approximately 30 System z9 Significant increases in average utilization Reduce labor cost through virtualization Dramatic reduction in software expense 85% reduction in IT Data Center square footage for consolidated servers Enables growth Better consumption of facilities 80% reduction in energy utilization associated with consolidated servers Increase in new applications deployed to System z If using all new System z10 ECs, the number of machines could be cut nearly in half for even greater savings in IT operational cost 10 IBM Systems

11 The IBM Global Account team identified workloads with selected characteristics Workloads selected: Transactional based workloads Initial Priority for consolidation to Linux on System z Workload that runs on multiplatforms for ease of migration Middleware Lotus Domino WebSphere applications DB/2 database SAP DB/2 applications Initial workloads include IBM s intranet Employee Charitable Contribution Campaign IBM forecasting/finance apps 11 IBM Systems

12 Introducing The IBM System z10 Enterprise Class The worlds most powerful enterprise computing platform 12 IBM Systems

13 IBM System z10 Enterprise Class Continuing the modular design for flexibility Enterprise Quad Core technology 4.4 GHz Decimal Floating Point Hardware data compression Cryptography Enhanced capacity 64-way model Up to 1.5 TB Memory, 3x more Star topology reduces latency 6 GBps InfiniBand for faster I/O and Coupling Links "IBM s z10 is the computer industry s pinnacle systems platform. Blow-away performance, increased capacity, and expanded memory makes this system the absolute best scale-up architecture bar none in the computing industry Joe Clabby, President, Clabby Analytics Planned availability 2Q08 13 IBM Systems

14 Unprecedented performance and capacity Transforming the economics of the data center Lower software license costs Lower labor costs 70% more usable capacity Lower energy and facilities costs 50% average increase in specialty engine performance Up to 2x performance increase in CPU intensive tasks Up to 10x improvement in decimal floating point instructions More Engines z900 z990 z9 EC z10 EC 50% more performance One System z10 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% *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. 14 IBM Systems

15 Relative MIPS of each Model Segment E12 Models E26 Models E40 Models E56 Models E64 Models 15 IBM Systems

16 100 capacity settings to help meet your needs Subcapacity CP settings 1-CP through 12-CP only Available on any hardware model The z10 EC will now offer 36 CP subcapacity settings All CPs must be the same capacity within one z10 EC On machines with 13 or more CPs, all CPs must run at full speed The entry point is approximately 24% of the capacity of the full speed CP All specialty engines run at full speed. The 1-for-1 entitlement is to purchase one zaap and one ziip for each CP purchased. 16 IBM Systems

17 Designed to increase capacity, to help reduce outages and enhance capabilities Five hardware models Faster Uni Processor 1 Up to 64 customer PUs 36 CP Subcapacity Settings Star Book Interconnect Up to 1.5 TB memory Fixed 16 GB HSA as standard Large Page Support (1 MB) HiperDispatch Enhanced CPACF SHA 512, AES 192 and 256-bit keys Hardware Decimal Floating Point Just in Time Deployment for capacity offerings permanent and temporary 1 Compared to z9 EC 2 Planned availability 2Q GBps InfiniBand HCA to I/O interconnect SCSI IPL included in Base LIC OSA-Express3 10 GbE 2 HiperSockets Multi Write Facility enhancements HiperSockets Layer 2 Support InfiniBand Coupling Links 2 STP using InfiniBand 2 Capacity Provisioning Support Scheduled Outage Reduction Improved RAS FICON LX Fiber Quick Connect Power Monitoring support SOD: PSIFB for z9 EC & z9 BC for non-dedicated CF Models* * All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. 17 IBM Systems

18 Focused performance boost Hardware Decimal Floating Point Up to 10X improvement in decimal floating point instructions Decimal arithmetic widely used in commercial and financial applications Computations often handled in software First delivered in millicode on the System z9 - brought improved precision and function Avoids rounding and other problems with binary/decimal conversions On z10 EC integrated on every core giving a performance boost to execution of decimal arithmetic Growing industry support for hardware decimal floating point standardization Java BigDecimal, C#, XML, C/C++, GCC, DB2 V9, Enterprise PL/1, Assembler Open standard definition led by IBM Bringing high performance computing benefits to commercial workloads * All performance information was determined in a controlled environment. 18 IBM Systems

19 Keeping your system available is key to our design Continuing our RAS focus helps avoid outages Sources of Outages - Pre z9 -Hrs/Year/Syst- Impact of Outage Unscheduled Outages Scheduled Outages Planned Outages Prior Servers z9 EC z10 EC Increased Focus over time Scheduled (CIE+Disruptive Patches + ECs) Planned - (M ES + Driver Upgrades) Preplanning requirements Unscheduled (UIRA) 19 IBM Systems

20 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 20 IBM Systems

21 Just in time capacity gives you control Permanent and temporary offerings with you in charge Permanent offerings Capacity Upgrade on Demand (CUoD), Customer Initiated Upgrade (CIU) Temporary offerings On/Off Capacity on Demand (On/Off CoD) Capacity Backup Upgrade (CBU) Capacity for Planned Event (CPE) NEW! No customer interaction with IBM at time of activation Multiple offerings can be in use simultaneously All offerings on Resource Link Each offering independently managed and priced Flexible offerings may be used to solve multiple situations Offerings can be reconfigured or replenished dynamically Policy based automation capabilities Using Capacity Provisioning Manager with z/os 1.9 Using scheduled operations via HMC 21 IBM Systems

22 System z and Cell Broadband Engine The Vision A Marriage of Two Technologies that Perfectly Complement Each Other Cell Blade Integrated and / or Networked Cell (NG) QS20, QS21, QS2x z today Preserves the same programming model between Network and Integrated z tomorrow Aerospace and Defense Financial Services Sector Chemicals and Petroleum Digital Video Surveillance Digital Media Information Based Medicine Electronic Design Automation 22 IBM Systems

23 Dynamic Growth in New Workloads Adoption Q1 Q3 Q5 Q7 Q9 Q11 Q13 Q16 Q18 Q20 Q22 Q24 Q26 Q28 Source: IBM internal data 23 IBM Systems

24 zaaps not just for Java anymore! More new application technology exploiters, more new benefits zaap designed to help implement new application technologies on System z Java was the first exploiter z/os XML System Services (introduced with z/os V1.9 and rolled back to V1.8 and V1.7) DB2 9 and Enterprise Cobol V4.1 are the first exploiters.. and more on Java SDK6 on z10 EC designed to deliver improved performance over SDK5 on z9 EC New function on z10 EC may benefit Java performance 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 * PLUS zaap price is same for z10 EC as z9 EC and we offer no charge MES upgrades when moving to new technology Available 9/07 System z = z10 EC, z9 EC, z9 BC, z990, z890 IBM System z10 Application Assist Processor and IBM System z9 Application Assist Processor * All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only. 24 IBM Systems

25 Helping to drive down the cost of IT Now even more workloads can benefit from ziip 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 for workloads such as BI, ERP, and CRM applications running on distributed servers with remote connectivity to DB2 V8 Network encryption IPSec encryption engine for 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 assisted z/os Global Mirror function (formerly XRC) helpful in reducing server utilization at recovery site (with z/os V1.8 and above) Exploiting of ziips by ISVs ziips offer economics to help you PLUS ziip price is same for z10 EC as z9 EC and we offer no charge MES upgrades when moving to new technology Available 9/07 new! new! IBM System z10 Integrated Information Processor and IBM System z9 Integrated Information Processor 25 IBM Systems

26 Harness the Unique Value of Specialty Engines Integrated Facility for Linux (IFL) specialty engine Prices have remained constant IFLs typically move with upgrades at $0 price Over 50% more capacity from z9 EC!!! System z Application Assist Processors (zaaps) and Integrated Information Processors (ziips) follow the same model Distributed model over same time: 3 Technology Refreshes (New Hardware) 3 System migrations IFL Value Increase IFL Capacity % Increased Value 38% 103% 266% 372% 654% G5 G6 z900 z990 z9 z10 Machine Type Specialty Engines: The investments that keep paying dividends generation to generation 26 IBM Systems

27 System z10 EC delivers continued price / performance and investment flexibility for on demand computing Generation to generation price / performance improvements: Reduction in software charging units, MSUs, 1 versus z9 EC ( 1 Millions of Service Units) Reduction in software charging units, MSUs, versus z990 z10 EC 10% 19% Reduction in maintenance costs (*) (up to) 15% Price performance improvement for Linux (IFLs), Java (zaaps) and Integrated Information Processors (ziips) (*) Typical charge for MES upgrades for IFLs, zaaps, and ziips Technology-driven value Number of capacity settings - 64 Full Uni + 36 Sub-Cap settings Specialty engines (IFLs, zaaps and ziips) (**) IBM Software charges for zaap capacity and ziip capacity Unsurpassed Virtualization capability with z/vm on z10 EC Plus System z New Application License Charge (znalc) pricing metrics for New Workloads* On/Off Capacity on Demand (On/Off CoD) enhancements to better manage volatile business requirements 35% 0 z10 EC 100 $125K 0 Beyond x86 virtualization (*) comparisons shown are z10 EC vs. z9 and z10 EC vs. z990 (**) Prices may vary by country * When compared to z890s 27 IBM Systems

28 Nationwide Key Benefits (Value Proposition) Expects to save $16M over the next 3 years Initial phase consolidated 250+ Production, Development & Test servers to 6 IFLs Savings will be in cooling, maintenance, software and equipment costs Lower middleware and application software costs 50% reduction in monthly charges for Web infrastructure Dramatically improved server provisioning speed Nationwide s Linux on System z project is currently estimated to save $16 million dollars over the next three years, not including floor space. We also were able to provide a reduction in server cost of more than 50 percent to our customers. The Linux on System z system saved significant data center floor space and power consumption. Steve Womer, Senior IT Architect IFLs reduced the space and power consumption by 80% vs. the alternative distributed server solution. 28 IBM Systems

29 Typical Utilisation of Windows servers Source: Intel_Server_List (real customer case IT Optimization and Simplification study led by Peter Norris - IBM) 29 IBM Systems

30 IT Cost Savings powered by z/vm Virtualization on z10 EC Your IT Cost may vary: Up to 80% Saving in IT Cost Up to 96% Less Hardware 760 x86 Processor Cores vs 26 IFLs Potential for dramatic reductions in software expense for processor based licenses Potential reductions in power and cooling Up to 93% Savings in KWatts and Energy Costs in this scenario Up to 46% Less Space Up to 89% People savings Increased processor utilization Industry leading Security Energize your IT savings with z10 EC. Consolidating 760 Linux servers z/vm Virtualization versus x86 Oracle DB Workload 3-Year Total IT Cost $56 M Savings versus x86 without Virtualization 760 x86 CPs 248 x86 CPs 26 z10 EC IFLs x86 Virtualization Dell Power Edge Quad Core servers z/vm Linux on System z10 EC Space Power People Cost Software Maint Software Maint Hardware 30 All performance information was determined in a controlled environment. IBM Systems Actual results may vary. 5.1 X x86 w/o Virtualization Sun X2100 Single Core servers 2.0 X 80% Savings 1.0 X

31 31 IBM Systems

32 IBM System z10 EC 4 Steps to Maximizing your IT ROI Lower the running costs of existing IT Reduce the operating costs of existing workloads with the improved price performance and technology driven dividends of a new z10 EC mainframe. Manage growth, complexity and risk Scalable products and solutions you can trust to more easily and securely manage the complex world of IT. Go green and save Cut costs and go green with leadership energyefficient hardware, consolidation and virtualization capabilities on System z10 EC Realize innovation Technology that makes innovation real in your business and sets you apart from the competition. 32 IBM Systems

33 Software Leveraging the Strengths of System z10 Next-generation business intelligence for System z: Cognos 8 for System z Complete solutions for people, process and information: Smart SOA on System z Accelerating innovation on System z: Rational Application Development and Delivery Visibility, automation and control for System z and the enterprise: Tivoli Service Management Center for System z Optimized for z10 EC performance, quality of service and total cost of ownership 33 IBM Systems

34 System z10 Designed for New Customer Workloads New System z10 based solutions for workloads and Industry processes that leverage the full power of System z10 Operational Business Intelligence on System z10 SAP Business Intelligence Accelerator on System z10 Consolidation & Virtualization Server Optimization and Integration Services for System z10 Encryption Authentication - Digital Certificate Authority on System z10 SOA Core Banking Renovation & Payments Framework for System z10 34 IBM Systems

35 IBM Operational Business Intelligence Solutions for System z10 Customer Needs Leveraging business data to deliver a competitive advantage Enriching customer experiences at every touch point Enhancing the value of existing operational processes with business insights Integrating regulatory requirements and reporting, into core systems System z10 Value Proposition Memory and processor enhancements maximize throughput of concurrent workloads Advanced workload manager features optimize workflow across the system. Workload integration delivers immediate access to operational data for business insights IBI WebFocus Provides insights into data with Web-based applications 2 Tier BI Offerings: Data Warehouse Edition, Cognos, Business Objects, MicroStrategy, Hyperion DB2 9 for z/os Value Unit Edition A new offering that provides greater flexibility to deploy new workloads in the z/os environment. Rapid Deployment of z/os, DB2 Services Offering for fast deployment of data sharing environment DataQuant Offers dashboard/visualization features to simplify data interpretation Alphablox on Linux for z Integrates analytic capabilities into existing workloads to drive business value SAS: Ent Business Intelligence Delivers integrated environment for BI applications and business insights SAS: Enterprise Miner Provides analytic capabilities native to System z workloads SAP: Business Intelligence Accelerator Enhances overall performance of queries within SAP/BI solution 35 IBM Systems

36 IBM SAP Business Intelligence Accelerator for System z10 Customer Needs Extend the reach of traditional SAP NetWeaver BI environments Reducing administration costs Greater flexibility in the types and depths of queries that can be executed System z Value Proposition Business Intelligence Accelerator enables crunching through terabytes of data in seconds, delivering faster business insight and turbo-charging your business intelligence solution Near real-time speed of query processing; faster than current SAP NetWeaver environments significantly reduces response time of SAP/BI queries Optimize Query response times for SAP Timely access to relevant information has always been critical to business success With new data sources and increased access, managing, processing and making sense of huge data volumes is even more important. SAP NetWeaver Business Intelligence (SAP NetWeaver BI) leads the way in providing a complete picture of a business from diverse data sources Solution Components System z10 + IBM BladeCenter technology with Intel EM64T and IBM storage z/os DB2 SAP NetWeaver Business Intelligence Accelerator 36 IBM Systems

37 Encryption Authentication Digital Certificate Authority on System z10 Customer Needs Deploy secure transactions and network connections Securely exchange encryption keys Manage the lifecycle of digital certificates System z Value Proposition Save thousands to millions of dollars by replacing third party hosting of digital certificates Full certificate life cycle management Highly available and highly secure Saving costs Relatively low MIPS to drive thousands of certificates using no-cost feature of z/os Industry certification Certified by Identrust, a global leader in trusted identity solutions recognized by global financial institutions, government agencies and businesses System z robustness Leverages resiliency and disaster recovery features Highly secure using mainframe access and audit controls and encryption features Services available to accelerate New ISV support Venafi tm solutions for centralized digital certificate management now support z/os Certificate Authority 37 IBM Systems

38 System z security hub for the enterprise Banco do Brasil Saves an estimated $16 million a year in digital certificate costs Establishes a more secure enterprise network by becoming their own Certificate Authority instead of paying third party using the encryption solutions included in z/os and their System z server 30 million accounts 4,000 locations 20 million transactions per day Branch offices Customers Securing the Internet 38 IBM Systems

39 SOA Core Banking Renovation & Payments Framework for System z10 Customer Needs Address consumer demands for more personalized service and product flexibility Achieve a single view of the customer relationship Respond to regulatory pressures Improve operational effectiveness System z Value Proposition Enables customers to leverage SOA to extend the functionality of their mainframe-centric infrastructure with industry-leading core banking and payments applications The performance, scalability, security and availability enhancements of the System z10 strengthen the mainframe s value as a robust and flexible hub for back office and payments core systems. Extension of Payments Framework The IBM Payments Solution Framework enabled on a System z-centric infrastructure will be expanded to include both retail and wholesale payments functionality. Solution Content Examples of key IBM middleware in the Frameworks enabled on System z include WebSphere Process Server, WebSphere Message Broker, WebSphere Transformation Extender, and WebSphere Enterprise Service Bus. Examples of ISV s in the Frameworks enabled on System z include: ACI Worldwide, EFD (efunds), Intercope, Fidelity, Temenos and i-flex Lloyds TSB implements enhanced version of ACI s BASE24-es on mainframe to meet UK s new Faster Payments Service (FPS) requirements 39 IBM Systems

40 Proven Solutions now optimized to deliver greater value with System z10 IBM Data Management Solutions for System z Information Server for System z SAS Enterprise Business Intelligence IBM Rapid Deployment of z/os and DB2: Lab Services Consolidation & Virtualization Offerings for System z Energy Efficiency Certificate IBM SOA Offerings for System z IBM SOA Healthcheck Security Solutions for System z Payment Card Industry Compliance 40 IBM Systems

41 Energy Efficiency Certificate for System z Customer Needs Enables customers to manage and obtain value from energy savings efforts Certification of energy savings benefits of System z consolidation System z Value Proposition Robust and flexible platform for consolidating workloads from distributed servers Extreme virtualization for deploying and managing multiple workloads More processors, and more capacity per processor allows more workloads to be migrated and consolidated Higher clock speeds improve workload performance Energy Efficiency Certificate Energy Efficiency Certificate, issued by Neuwing Energy Ventures providing documentation of energy savings in consolidation projects with IBM System z, for customers wishing to document progress toward a company's energy efficiency goals or traded for cash or other credit on the energy efficiency credit market Certificates are awarded as clients decrease power consumption and implement energy efficiency actions based on accepted industry benchmarks and practices. Offering Components The energy efficiency certificate is based on hardware implementation only, and the associated power savings of migrating and consolidating workloads from less efficient hardware deployments. 41 IBM Systems

42 Announcing New IBM Services for System z10: Providing premier service and support for the enterprise IT Server optimization and integration services Reduce complexity in the IT infrastructure Implementation Services for Parallel Sysplex Help move to a centralized data server while protecting data integrity Implementation Services for GDPS Industry-unique integrated and automated end-toend recovery across multiple platforms Implementation Services for Tape Systems Tape encryption for compliance and information lifecycle management 42 IBM Systems

43 A growing community Over 4,000 applications up 600 in 2007 Over 1,900 Linux applications up 260 in 2007 Over 1,200 ISVs up 67 in 2007 Academic Initiative Over 400 schools and more than 40,000 students Over 1900 Linux on System z applications from at least 400 vendors 43 IBM Systems

44 z10 EC: Extending leadership capabilities for the New Enterprise Data Center 70% greater Capacity Huge expansion of virtual resource pool enables consolidation of hundreds of additional applications Just in Time capacity to help deliver optimal service to the business IBM Tivoli Service Management Center for System z Extended resiliency & security Green by design Dynamic 44 IBM Systems

45 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. 45 ZSP03086-USEN-00 IBM Systems

46 Innovation that matters Thank you 2008 IBM Corporation IBM Systems