Capturing value from an open ecosystem

Transcription

1 Capturing value from an open ecosystem Tom Rosamilia Senior Vice President IBM Systems

2 Forward-Looking Statement Certain comments made during this event and in the presentation materials may be characterized as forward looking under the Private Securities Litigation Reform Act of Forward-looking statements are based on the company s current assumptions regarding future business and financial performance. These statements by their nature address matters that are uncertain to different degrees. Any forwardlooking statement made during this event or in these presentation materials speaks only as of the date on which it is made. The company assumes no obligation to update or revise any forward-looking statements. Those statements involve a number of factors that could cause actual results to differ materially, including the following: a downturn in economic environment and client spending budgets; the company s failure to meet growth and productivity objectives, a failure of the company s innovation initiatives; risks from investing in growth opportunities; a failure of the company s intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; cybersecurity and privacy considerations; fluctuations in financial results, impact of local legal, economic, political and health conditions; adverse effects from environmental matters, tax matters and the company s pension plans; ineffective internal controls; the company s use of accounting estimates; the company s ability to attract and retain skilled personnel and its reliance on critical skills; impacts of relationships with critical suppliers and business with government clients; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; reliance on third party distribution channels; the company s ability to successfully manage acquisitions, alliances and dispositions; risks from legal proceedings; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company s Form 10-Qs, Form 10-K and in the company s other filings with the U.S. Securities and Exchange Commission (SEC) or in materials incorporated therein by reference. Additional information concerning these factors is contained in the Company's filings with the SEC. Copies are available from the SEC, from the IBM web site, or from IBM Investor Relations. 2

3 Fundamental forces are accelerating change in our industry Technology alone can no longer provide the price performance gains necessary to sustain Moore s Law IT consumption models are expanding to: Price/Performance Moore s Law Technology and Processors Firmware / OS Accelerators Software Storage Network Hybrid Cloud Hyperscale Data Centers (Custom Design) Open Solutions Full system stack innovation required 3

4 IBM is investing in ecosystems and open innovation k+ IBMers contributing to open organizations 100+ OpenPOWER-based innovations under way 5 IBMers contributing to Linux and Apache Projects Source: 4

5 Delivering technology innovation through OpenPOWER OpenPOWER Foundation Strategy Vibrant ecosystem through open development Accelerated innovation through collaboration of partners Amplified capabilities driving industry performance leadership IBM OpenPOWER Strategy Delivering technology innovation to capture growth against key market segments Cloud Computing Hyperscale Data Centers Domestic IT Agendas High Performance Computing (HPC) 5

6 Demonstrating rapid progress with OpenPOWER INCORPORATION December. Incorporated OpenPOWER Foundation and elected officers CODE CONTRIBUTION July. IBM, with contributions from Google, released 420,000 lines of firmware code NEW OFFERINGS October. Multiple offerings made available from Altera, Canonical, IBM, Nvidia, Redis Labs, OVH and Tyan HIGH PERFORMANCE COMPUTING November. U.S. Department of Energy chose OpenPOWER design for $325M supercomputing contract HIGH PERFORMANCE COMPUTING June. UK Government invests 115M in STFC for Watson and OpenPOWER IOIOIOI OIOIOIO IOIOIOI members PUBLIC LAUNCH April. Public launch of website, members and demonstrations (Tyan and Google planars) DOMESTIC IT October. China government endorsed and supported OpenPOWER ecosystem through the formation of China Power Technology Alliance INDUSTRY INNOVATION March. OpenPOWER kicks off first Summit 50+ member presentations 10+ product reveals 50 members 70 members 115 members INDUSTRY INNOVATION Today. OpenPOWER momentum continues 1,600 software apps that have added support for POWER processors Hundreds of systems innovations in development 150 members 6

7 Growing ecosystem that delivers open innovation across the stack Implementation, HPC and Research Software System Integration I/O, Storage and Acceleration Boards and Systems Chips and Systems on a Chip 7

8 Monetization of OpenPOWER Third-party implementations IBM implementations License chip IP to third-party chip designers (IP income, royalties, chip design services) Design custom white-box solutions with hyperscale data centers for unique workloads (chip revenue, system design services) Incorporate OpenPOWER partner innovations into IBM solutions, for example: - HPC solution for U.S. Dept. of Energy with Nvidia, Mellanox - Cloud solution for SoftLayer with Tyan - Big Data solution for Enterprises with Redis 8

9 Monetization of OpenPOWER through third-party implementations First open server specification and motherboard combining OpenPOWER, OpenCompute and OpenStack Systems and Platforms First GPU-accelerated OpenPOWER developer platform First commercially available OpenPOWER server RedPower, the first China OpenPOWER 2-socket system ChuangHe China-branded OpenPOWER systems with POWER8 Inspur 2-socket POWER8 Server Components DMI connection between an Altera Stratix V FPGA accelerator and a POWER8 CPU Convey s CAPI developer kit based on the company s Xilinx-based co-processors New CAPI-based solution: the ConnectX-4 adapter card by Mellanox Nallatech s OpenPOWER CAPI Developer Kit Chips First China local POWER derivative chip, CP1 IBM POWER8 chip GPU = Graphics Processing Unit DMI = Direct Media Interface FPGA = Field-Programmable Gate Array CAPI = Coherent Accelerator Processor Interface 9

10 A closer look: OpenPOWER custom white-box solution Key Hardware Components Accelerator Accelerator Card Network Adapter System Integration (Firmware and Hardware) Zoom Netcom Chip Suzhou PowerCore Ecosystem Components RedPower Linux OS Hypervisor Red Flag KVM Masscloud Database GBase Big Data Transwarp Cloud Open Stack - Masscloud 10

11 Monetization of OpenPOWER through IBM implementations Partner Innovations IBM OpenPOWER Client Solutions Big Data IBM Data Engine for NoSQL GPU Acceleration IBM Power System S824L Server HPC OpenPOWER HPC Server Cloud Power Bare Metal Offerings Bringing innovation into Power Systems 11

12 OpenPOWER positively impacting the Power Systems business Brings OpenPOWER innovations to new Power Systems Allows IBM to compete in new and emerging segments New business model designed to drive incremental sources of revenue and profit 12

13 Questions? 13