Dynamic Infrastructure Increase Productivity & Competitiveness. Mohammad Ghozie Indra Dalel Country Manager Business System Division

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1 Dynamic Infrastructure Increase Productivity & Competitiveness Mohammad Ghozie Indra Dalel Country Manager Business System Division

2 M. Ghozie I. Dalel Country Manager IBM Business Systems Division Nizieta

3 67 percent of energy in the U.S. is lost due to grid inefficiencies. In one small business district in los Angeles alone, cars burned 47,000 gallons of gasoline just looking for parking. BECAUSE IT MUST. Weather-related events inflicted $1 trillion in damage from 1980 to In our healthcare systems, electronic health records could save 100,000 lives a year. Only percent of reserves are extracted from the world s existing oil wells.

4 Something meaningful is happening Every human being, company, organization, city, nation, natural system and man-made system is becoming interconnected, instrumented and intelligent. This is leading to new savings and efficiency but perhaps as important, new possibilities for progress. The world is flatter. The world is smaller. The world is getting smarter. Because it can. Because it must. Because we want it to.

5 Because WE our customers and us Want It to Smart traffic systems Smart water management Intelligent oil field technologies Smart supply chains Smart food systems Smart countries Smart healthcare Smart weather Smart energy grids Smart regions Smart retail Smart cities

6 CIO Strategies for Repair & Prepare CIO Strategies for Managing in an Uncertain Environment Cutting IT operating expense Deferring or reducing capital expenditures Seeking productivity increases from their existing infrastructure Postponing hiring of additional IT staff Revisiting existing service contracts Postponing the launch of new initiatives Postponing long-term projects in favor of near-term ROI 6 What IBM's Vision of the New Enterprise Data Centre Means for CIOs December 2008

7 The collective wisdom of CEOs: The Enterprise of the Future Organizations are bombarded by change, and many are struggling to keep up CEOs view increasingly demanding customers not as a threat, but as an opportunity to differentiate Nearly all CEOs are adapting their business models two-thirds are implementing extensive innovations CEOs are moving aggressively toward global business designs, deeply changing capabilities and partnering more extensively Financial outperformers are making bolder plays Core Traits of the Enterprise of the Future Hungry for change Innovative beyond customer imaginatio n Globally integrated Disruptive by nature Genuine, not just generous CEOs can now assess how ready they are for becoming the Enterprise of the Future.

8 To address these questions we must examine the unique opportunities and challenges that underlie each theme New Intelligence Green & Beyond Smart Work Dynamic Infrastructure 8

9 Infrastructure(s) of Enterprises in the Future Dynamic Infrastructure

10 INTERCONNECTED People, systems and objects can communicate and interact with each other in entirely new ways. The Internet of people is 1 billion strong. Almost one third of the world s population will be on the Web by There will be nearly 4 billion mobile phone subscribers worldwide by the end of More than 30% of citizens in OECD countries used the Internet to communicate with public authorities in Smart governments perpetually collaborate across organizations and with all partners and constituents.

11 INSTRUMENTED We now have the ability to measure, sense and see the exact condition of everything. Today, there are 1 billion transistors for each person on the planet. By 2010, 30 billion RFID tags will be embedded into our world and across entire ecosystems. U.S. Federal RFID spending expected to grow from approximately $51M to $112M in FY 2009*, representing one technology in one government. Smart governments empower staff and field workers while securing physical environments through the use of video surveillance and mobile devices. *RFID Journal INPUT.

12 INTELLIGENT We can respond to changes quickly, accurately and securely, and get better results by predicting and optimizing for future events. Every day, 15 petabytes of new information are being generated. This is 8x more than the information in all U.S. libraries. An average company with 1,000 employees spends $5.3 million a year to find information stored on its servers. In sharing and protecting large volumes of data, government is more vulnerable. Over 50% of data security breaches reported since 2005 were through state and local government organizations.* Smart governments analyze, apply and share information from multiple sources to assess situations and react quickly. *National Association of State CIOs

13 In this smarter world, we need our infrastructure to propel us forward, not hold us back. Infrastructure that is instrumented, interconnected and intelligent. Infrastructure that brings together business and IT to create new possibilities. Mobility Infrastructure Facilities Infrastructure + Production Infrastructure + Technology Infrastructure + Communications Infrastructure + We need a dynamic infrastructure.

14 A dynamic infrastructure Enables visibility, control, and automation across all business and IT assets. Transforms assets into higher value services. Highly optimized to achieve more with less. Addresses the information challenge. Leverages flexible sourcing like clouds. Manages and mitigates risks. delivers superior business and IT services with agility and speed. 14 This document is for IBM and IBM Business Partner educational use only. It is not intended for customer distribution.

15 Building a dynamic infrastructure. Service Management Provide visibility, control and automation across all the business and IT assets to deliver higher value services. Maximizing the value of critical business and IT assets over their lifecycle with industry tailored asset management solutions. Asset Management Virtualization Leadership virtualization and consolidation solutions that reduce cost, improve asset utilization, and speed provisioning of new services. Energy Efficiency Business Resiliency Security Information Infrastructure Address energy, environment, and sustainability challenges and opportunities across your business and IT infrastructure. Maintaining continuous business and IT operations while rapidly adapting and responding to risks and opportunities. End to end industry customized governance, risk management and compliance solutions. Helping businesses achieve information compliance, availability, retention, and security objectives.

16 Dynamic Infrastructure Virtualization Smart is: Leadership virtualization and consolidation solutions that reduce cost, improve asset utilization, and speed provisioning of new services. Reduce operating costs. Consolidate via virtualization to fewer systems. Simplify management of the infrastructure. Recapture floor space through consolidation. Manage availability in a 24/7 world. Increase availability and improve resiliency. Manage and secure data without affecting its availability. Improve service responsiveness. Improve system, network and application performance. Process more information in real-time to make better business decisions. Bring new services online quickly. Dynamically adapt to the peaks of the business. Dynamically deliver resources where needed most. Make data available from anywhere, anytime.

17 Consolidate.. (From this) Public Internet/ Intranet Clients Nortel Layer 4-7 Switches SSL Appliances Firewalls Routers (Layer 3 Switches) SSL Appliances Citrix Layer 2 Switches Caching Appliances IBM IBM IBM IBM IBM Storage Fibre Switches Storage Fibre Switches SAN Caching Appliances IBM CISCO Brocade IBM IBM

18 Consolidate.. (To this) Public Internet/ Intranet Clients Firewalls Routers (Layer 3 Switches) SAN

19 Virtualization : Proven Solution for Infrastructure Consolidation 2 or 4-way Blades Increased System Utilization

20 100% 30% 120% 1/10 p5 1/10 p5 1/10 p5 1/10 p5 120% LPAR 1 (uncapped) Base Capacity of 0.4 Processor for LPAR CPU CPU CPU CPU Virtualization Power Systems vp vp vp 120% LPAR 2 (uncapped) Base Capacity of 1 Processor for LPAR % 70% vp vp CPU CPU CPU CPU CPU CPU 110% CE= 0,6 1/10 p5 1/10 p5 1/10 p5 1/10 p5 1/10 p5 1/10 p5 LPAR 3 (uncapped) 70% 65% CE= 1, ms = 1 Dispatch Interval 85% CE= 0,4 43 If workload demands < 0,4 CPUs, LPAR1 frees unused resources to PHYP 55% vp vp vp Base Capacity of 0.6 Processor for LPAR Virtualization Action Move Processor Resource from LPAR2 to LPAR Move Processor Resource from LPAR3 to LPAR Move Processor Resource from LPAR1 to LPAR Activate 3 Processor On Demand to LPAR1,2,3 1 CoD Shared Processor On Demand Pool with 3 CPUs

21 Enterprise Storage Simplification Solution Storage Consolidation & Disk Pooling Distributed SAN Infrastructure eseries Servers eseries Servers M48 M48 BladeCenter Farm 4 SAN Switch Consolidation SVC Appliance SVC Storage Pool 3584 Tape 1 Disk Storage Consolidation DS DS6000 DS4800 Disk Storage Virtualization 3 Tape Storage Consolidation

22 IBM System Storage SAN Volume Controller Make changes to the storage without disrupting host applications Virtual Disk Virtual Disk Virtual Disk Virtual Disk SAN Manage the storage pool from a central point SAN Volume Controller Apply common copy services across the storage pool Advanced Copy Services Storage Pool HP IBM HDS Sun EMC Combine the capacity from multiple arrays into a single pool of storage

23 Dynamic Infrastructure Information Infrastructure Smart is: Deploying a resilient, secure Information Infrastructure to protect, manage and gain insight from information. Consolidated, easy to audit solutions for Information Compliance. Always on Information Availability. Maintain accurate, reliable, and complete information. Manage compliance as an organization-wide process. Reduce risk and cost of litigation and audit deficiency. Provide continuous access to information. Meet service level commitments by design. Reduce disruptions, planned and unplanned. Policy-based Information Retention. Retain and manage business information efficiently. Reduce business and legal risk by purging expired data. Migrate data non-disruptively during business hours. Building Information Security into the infrastructure. Ensure the security of confidential data. Provide secure, policy-based access to information. Audit and report security breaches as required.

24 Dynamic Infrastructure Asset Management Smart is: Maximizing the value of critical business and IT assets over their lifecycle with industry tailored asset management solutions. IT Asset Management Consolidated Asset Management Track and manage the lifecycle of IT assets. Manage the lifecycle of all critical assets. Manage security policy compliance. Track hardware and software deployment. Manage audit, lease and software compliance exposures. Combine inventory, maintenance, contacting processes. Address all types of assets: Production, Delivery, Transportation, Facilities, Infrastructure and IT. Enforce best practices across the enterprise. Ensure safe and reliable operations. Converged Assets Deep Industry Functionality Leverage operational assets with embedded IT. Meeting the needs of asset intensive industries. Physical devices are becoming IP enabled - smart meter. Embedded IT improves asset performance. Enable remote monitoring and automation. Industry specific solutions for Nuclear Power, Utilities, Transportation, Life Sciences, and Oil & Gas. Supporting infrastructure with Spatial and Linear Asset Management.

25 Dynamic Infrastructure Energy Efficiency Smart is: Addressing energy, environment, and sustainability challenges and opportunities across your business and IT infrastructure. IT Efficiency Energy Management Reduce energy costs. Measure and control energy usage. Implement more energy efficient servers and storage. Increase IT utilization and efficiency. Improve service with increased flexibility and resilience. Understand energy consumption. Produce reports to demonstrate energy savings over time. Put policies in place to manage and control energy use. Data Center Facilities Environmental Leadership Reduce capital and operational costs. Establish green strategy. Extend the life of existing data centers. Rationalize data center infrastructure across the company. Design flexibility into my new data center infrastructure. Comply with emerging stricter controls over energy consumption, greenhouse gases, and disposal of hazardous substances. Align IT with corporate sustainability initiatives to drive brand value.

26 How is energy typically used in the data center today? Data center Server/storage hardware Compute resources Processor Resource usage rate IT Load 55% 45% Power and Cooling 70% 30% Power supply, memory, fans, planar, drives... 80% 20% Idle Data source: Creating Energy-Efficient Data Centers, U.S. Department of Energy, Data Center Facilities and Engineering Conference, May 18, 2007

27 Comparison of typical server CPU utilization rates Mainframe and IBM i UNIX X86 (intel and AMD) Used Wasted

28 Compute Resource Innovations IBM System z10 EC IBM System x3950 IBM POWER Systems IBM BladeCenter IBM idataplex IBM System Storage All IBM Products need Lesser Power & Lesser Cooling Up to 93% savings in energy costs and 46% less space than Sun X2100 Single Core servers 64-core scalability, now for x86 large scale virtualization IBM Power 550 uses 91% less energy and 98% less space than a 64-core HP 9000 Superdome Uses up to 24% less energy than HP BladeSystem c-class Cuts energy costs 40% compared to equivalent compute power in an enterprise rack New! TS7530 Tape and SAN Volume Controller and virtual disk. Can cut cost 10X

29 Dynamic Infrastructure Business Resiliency Smart is: Maintaining continuous business and IT operations while rapidly adapting and responding to risks and opportunities. Manage risk with end to end resiliency Adopt a business-driven strategic approach to business resilience. Minimize impact of potentially disruptive events by determining the right resilience strategy - by business process. Respond more effectively to unforeseen events. Deploy resilience for services, operations and people. Assess business uptime needs against resiliency requirements. Reduce cost through proactive incident response Reduce operational costs associated with outages. Maintain business operations and services. Implement failover work areas for your most critical asset your people. Avoid fines associated with compliance requirements or service level agreements. Ensure resilient service delivery Respond with speed and agility Effectively manage risk for key business services in a 24/7 world. Gain real-time control over risk posture and exposures. Meet operational needs to address resilience requirements. Protect business and IT assets to improve availability and recoverability. Deploy automation for failovers and incident response. Use monitoring to ensure demand is satisfied during demand spikes. Ensure risk posture meets policies and regulations. Derive insight via dashboards, alerts and reporting. Utilize mixed sources for resilience; in-house, outtask, outsource, managed services. Regularly test recovery plans.

30 Open Fabric Manager failover across your 2) Failover pool event data center action plan executes 1) Blade x fails in chassis 6 EASY 3) Blade y in chassis 40 receives blade x I/O parameters

31 Dynamic Infrastructure Security Smart is: End to end industry customized governance, risk management and compliance solutions. Provide end-to-end risk management Reduce the cost of security Adopt a business-driven strategic approach to security. Meet changing business needs. Prioritize security risks by criticality to key business processes. Enable business change via a foundation of flexible controls. Meet operational needs to address compliance requirements. Leverage smart security solutions to lower overall cost Explore a mix of in-house and managed solutions Embed security into projects and infrastructure to enhance effectiveness. Ensure secure service delivery Respond with speed and agility Effectively manage risk for key business services. Gain control over risk posture and incident response. Meet operational needs to address security requirements. Protect business and IT assets to improve confidentiality, integrity and availability. Build in automation to respond to market needs, reduce cost and compliance fatigue. Ensure risk posture meets policies and regulations. Improve incident response processes. Derive insight via dashboards, alerts and reporting.

32 Dynamic Infrastructure Cloud Computing Smart is: Access and deliver resources, services, and information quickly and easily, anywhere and anytime. Infrastructure Efficiency Respond quickly Pay for what you need, only when you need it. Deploy services rapidly in response to needs. Access computing resources as they are needed. Increase IT availability and improve efficiency. Track usage to effectively allocate resource accounting. Get resources quickly to optimize the opportunity. Access from any device, anywhere, anytime. Infrastructure, platform, application, and processes. Manage risks effectively Cloud Computing Leadership Effectively meet resiliency and security requirements. Establish a flexible sourcing strategy. Effective resiliency and security to ensure control. Enhance the user experience with integrity. Protect business assets while optimizing delivery. Implement a strategic plan that leverages flexible sourcing to optimize a dynamic infrastructure. Ensure that the IT and business infrastructure is ready to enhance strategic initiatives, not inhibit.

33 Stages of Adoption Highly responsive and business goal driven Rapid deployment of new infrastructure and services Drives IT efficiency Highly virtualized resource pools ensembles Physical consolidation and Integrated IT service management optimization Green by design Virtualization of individual systems Systems, network and energy management Virtualization of IT as a service - cloud Business-driven service management Service oriented delivery of IT

34 IBM s own smart transformation has delivered results. IBM IT Transformation From 2002 through 2007, IBM's own IT investments delivered a cumulative benefit yield of approximately $4 billion. For every dollar invested, we saw a $4 cumulative benefit Today CIOs Host data centers Web hosting centers 80 5 Network ,000 4,700 Applications Data Center Efficiencies Achieved Project Big Green Cloud-enabled on demand IT delivery solution Consolidation and virtualization - thousands of servers onto approximately 30 IBM System z mainframes. Additional virtualization leveraging System p, System x and storage across enterprise. Substantial savings being achieved in multiple dimensions: energy, software and system management and support costs. The virtualized environment will use 80% less energy and 85% less floor space. 2X existing capacity, no increase in consumption or impact by Self-service for 3,000 IBM researchers across 8 countries. Real time integration of information and business services.

35 The World is at Your Hand!! Start your Dynamic Infrastructure Journey Today!!

36

37 ibm As we stand poised before a profoundly new era of technology, business and society, I strongly believe that there is no other company that is as well positioned for leadership, in all the ways that a business can lead. Sam Palmisano

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