IBM System z. Dynamic Infrastructure Today and in the Future September 23 rd 2009

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1 Johan Charles IBM System z Platform Manager Benelux IBM Systems and Technology Group IBM System z Dynamic Infrastructure Today and in the Future September 23 rd IBM Corporation

2 Trademarks The following are trademarks of the International Business Machines Corporation in the United States and/or other countries. IBM* IBM Logo* DB2* Dynamic Infrastructure* GDPS* HyperSwap InfoSphere Parallel Sysplex* RACF* System z* System z10 Tivoli* z10 z10 BC z/os* z/vm* z/vse * 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. INFINIBAND, InfiniBand Trade Association and the INFINIBAND design marks are trademarks and/or service marks 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. * 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.

3 Agenda Today s challenges The Dynamic Infrastructure and the role of System z Summary of recent evolutions Platform choice What s ahead for System z in the future 2009 IBM Corporation

4 As we look to the future, we have to face today s realities

5 Today, IT face more challenges and uncertainty than ever before An unprecedented global economic downturn Existing systems and infrastructures are reaching a breaking point New IT models and standards, such as SOA, SaaS and cloud are transforming the way we implement and deliver IT services All of these factors impact on IT decisions today 5

6 IT infrastructure is reaching a breaking point. 85% idle In distributed computing environments, up to 85% of computing capacity sits idle. 1.5x 70 per $1 Explosion of information driving 54% growth in storage shipments every year. 70% on average is spent on maintaining current IT infrastructures versus adding new capabilities. $40 billion Consumer product and retail industries lose about $40 billion annually, or 3.5 percent of their sales, due to supply chain inefficiencies. 33% 33% of consumers notified of a security breach will terminate their relationship with the company they perceive as responsible.

7 By 2011, the world will be 10 times more instrumented then it was in Internet connected devices will leap from 500M to 1 Trillion. Exabytes 1,800 1,600 1,400 1,200 1, x growth in five years RFID, Digital TV, MP3 players, Digital cameras, Camera phones, VoIP, Medical imaging, Laptops, smart meters, multi-player games, Satellite images, GPS, ATMs, Scanners, Sensors, Digital radio, DLP theaters, Telematics, Peer - to - peer, , Instant messaging, Videoconferencing, CAD/CAM, Toys, Industrial machines, Security systems, Appliances Approximately 70% of the digital universe is created by individuals, but enterprises are responsible for 85% of the security, privacy, reliability, and compliance.

8 Consider how our world is changing: Our world is becoming more INSTRUMENTED 30 billion embedded RFID tags by /2 of all sensors in transportation, facilities & production equipment are smart sensors INTERCONNECTED 1/3 of the world s population on the Web by B mobile subscribers globally at the end of K cyber attacks in the US in 2007; 158% increase since 2006 INTELLIGENT 15 petabytes of new information generated every day (8x more than the information in all U.S. libraries) 64B credit card transactions/annum; up 35%

9 IBM s smarter planet vision Four major IBM initiatives Dynamic Infrastructure Dynamic Infrastructure New Intelligence The world has become flatter and smaller. Now it must become smarter. Green & Beyond Smart Work delivers superior business and IT services with agility and speed

10 It s time to start thinking differently about infrastructure.

11 A dynamic infrastructure addresses today s challenges and tomorrow s opportunities. REDUCE COST IMPROVE SERVICE MANAGE RISK Not just containing operational cost and complexity, but achieving breakthrough productivity gains through virtualization, optimization, energy stewardship, and flexible sourcing. Not only ensuring high availability and quality of existing services, but also meeting customer expectations for real-time, dynamic access to innovative new services. Not only addressing today s security, resiliency, and compliance challenges, but also preparing for the new risks posed by an even more connected and collaborative world. System z s core competencies align with a dynamic infrastructure Today

12 Reduce cost with System z System z delivers industry leading capabilities SMART IS Saving millions in annual operating costs Unique virtualization technology for Unparalleled scale of consolidation Extensive automation capabilities across all aspects of IT service provision Continual high utilization through automated prioritization and scheduling of IT tasks Reuse and extend existing mainframe application investments Bank of Russia: Reduces payment processing costs by 95 percent, saving US$400 million per year. Server and data center consolidation create further savings on hardware and software licensing, maintenance and electricity, and increased security. Workload for technical staff reduced by 85 percent. To directly impact the bottom line Dramatic reductions in energy and facilities requirements Far fewer software licenses Reduced Maximized labor ROI requirements Reduced Faster total capacity deployment of requirement new services with fewer resources

13 Manage risk with System z System z delivers industry leading capabilities Comprehensive protection against all types of IT security threats SMART IS Protecting your customer... and your brand with no loss of data Availability protection spanning component failure to full disaster recovery Centralized visibility, management and control to maintain availability Bank of Montreal: Providing a recovery point of zero and a recovery time of 2 hours helps reduce operational risk, increases client trust, improves availability, and meets stringent regulatory compliance requirements To deliver peace of mind Industry s pinnacle in security certification Massive throughput of secure transactions Application availability of % Leading portfolio of disaster recovery solutions Automated notification and response to potential future failures Protection from scheduled and un-scheduled outages

14 Improve Service with System z System z delivers industry leading capabilities SMART IS Growing your business confidently in a rapidly changing economy The ideal enterprise hub for dynamic delivery of resources & applications as services Centralized secure data serving for an enterprise wide view of real time data Business-driven service delivery and management Reduced application development time by reusing proven assets Transzap: Consolidates to System z to provide the stability and scalability needed to accommodate triple digit volume growth and 100% YTY growth-plan to production. The System z infrastructure securely and rapidly services more than 44,000 users across 4,200 companies with tens of billions in transaction details flowing through the company's systems each year. To deliver dynamic IT services to the business IT services aligned to business processes A common view of data across enterprise applications and all access methods Centralized management and control of IT services Rapid and efficient deployment of new IT services and user interfaces

15 System z: The right platform for recession and recovery System z capabilities for Recession Reduce the cost of supporting existing operations Maximize utilization of resources Deploy any new resources just in time Run existing IT operations with fewer staff System z capabilities for Recovery Rapid deployment of new applications Reuse and rebalance IT resources on the fly Respond rapidly to new business requirements Low cost of capacity growth for new workloads Underpinned by exceptional security and availability Unequalled investment protection in technology, skills and applications

16 Before looking into the future let s get in sync on the recent evolutions

17 System z10 enhanced competitiveness: Transforming the economics of new workloads z10 Pricing Action IFL prices for System z10 ECs reduced to $75k USD*. Reduced Memory prices extended to ALL new workload running on System z10 Servers - Now $2250 USD** Announcing the new System z Solution Editions: Legendary Mainframe quality, priced within 20% of competitive UNIX alternatives*** SOD for z/vm 6.1 Exclusive to z10 and future generations New improved Terms and Conditions SOD for IBM Systems Analytics Optimizer New Price performance for data warehousing PLUS z10 Technology enhancements FICON Express 8 Preview of z/os V1 Rel. 11 & z/os Mgt. Facility V1 R11 *This is for IFLs only, ziips and zaap remain at $125k. Prices will vary by country. ** New workloads defined consistent with znalc terms and conditions and also include all Linux workloads. Prices will vary by country. Limited to 16GB per qualifying new processor ***IBM Stack Price, designed to be within 20% of equivalent HP-UX Itanium based solutions at typical market discounts Solution Editions: Data Warehousing Security WebSphere GDPS Application Development SAP (new lower prices) ACI (existing) Cloud Services Solution (coming in Q4 2009)

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20 IBM Smart Analytics Optimizer SOD Unlocking unprecedented value from enterprise data What is it? A high performance platform that easily integrates into existing data warehouses, delivering predictable, order-of-magnitude faster, analytic query response times, while lowering operating costs. How is it different Integrates IBM Database with highperformance Data Warehouse query software, based on advanced data inmemory technology. Extends System z Qualities of Service of manageability, security, availability to analytic applications Combining the best of hardware/ software worlds that only IBM can seamlessly accomplish

21 FICON Express8 exclusively for System z10 FICON Express8 10KM LX and FICON Express8 SX Link data rate of 8 gigabits per second (Gbps) with autonegotiation to 2 or 4 Gbps Performance improvements when transferring small blocks of fixed size data (4k blocks) Optimizations for online transaction processing (OLTP) workloads Order entry, inventory tracking, hotel reservations DB2, VSAM, PDSE, and zfs Performance improvements for large sequential I/O operations Helps reduce the duration of backup/copy operations Consolidation of existing FICON Express, FICON Express2, and FICON Express4 channels onto fewer FICON Express8 channels With enhanced performance

22 PRIZM from Optica Technologies Incorporated An appliance designed for a smooth transition from ESCON to FICON Converts native FICON (FC) protocol to native ESCON (CNC) protocol Existing ESCON devices can connect to FICON channels A 2u high, rack-mountable system Converts 1 or 2 FICON channels into 4, 8 or 12 ESCON channels Easy to configure and install Attach to a broad array of ESCON (and Bus & Tag) devices Offered through GTS IBM Site and Facilities Services (SPL-7) Offering ID #6948-J57 IBM Facilities Cabling Services - fiber transport system - ESCON to FICON migration

23 However, all platforms will claim these attributes, so what makes a platform fit for purpose?

24 Platform choice Fit for purpose Many factors influence a platform selection, making it difficult to present a simple selection matrix. Problem Size Time Horizon ISV Support Deployment Model Nonfunctional Requirements Technology Adoption Level System z Intel (Availability Scalability, Security, etc) Power, cooling, floor space constraints UNIX Platform Architecture Strategic Direction and Standards Politics Skills TCO Model Some factors are specific to each business, others are common to all and can be generalized

25 Application Performance Characteristics what fits on which platform? Workload performance varies by application and can be best served by different platforms or the right mix of multiple platforms. 10. CPU Intensive e.g. numerically intensive, etc. 9. Protocol Serving e.g. static HTTP, firewall, etc. 8. Skewless OTLP e.g. simple and predictable transaction processing Optimal for other platforms 7. Java Heavy e.g. cpu intensive java applications 6. Java Light e.g. data intensive java applications 5. Database e.g. Oracle DBMS or dynamic HTTP server Optimal for System z 4. Mixed High e.g. multiple, cpu-intense simple applications 3. Mixed Low e.g. multiple, data-intense applications or skewed OLTP, MQ 2. I/O Bound e.g. high I/O content applications 1. Data Intensive large working set and/or high I/O content applications 19

26 So, what is the right platform for a dynamic infrastructure? Golden Rule: A Dynamic infrastructure is heterogeneous A one size fits all solution will be sub-optimized Optimized infrastructures multiple technologies best fit for purpose Appropriate cost and service Technology requirements Highly virtualized Integrated management End to End control of applications The next generation System z is an intersection point of: The leading enterprise computing platform Cloud services Capabilities for a dynamic infrastructure Dynamic Infrastructure zfuture Cloud computing is a model for a Dynamic Infrastructure Cloud System z

27 System z dramatically improves composition of today s data center Relating IT Resources to Business Objectives Reducing: Complexity and fragility Management (labor) costs Power/cooling costs Web Servers Increasing Flexibility and responsiveness SSL/XML Appliances Application Servers System z Quality of service Asset Utilization Security Application & Data Servers In the future, System z will further extend its value in the data center Enhance function to further simplify, consolidate, and reduce the costs of managing the IT infrastructure Extend management capabilities to heterogeneous architectures e.g. workload, resource, energy, and hardware management Extend processing capabilities to serve a broader set of enterprise workloads Continue to strengthen the core capabilities of the z platform

28 Processor performance and future scalability System z continues to evolve and grow Performance increase with additional engines 50% more CEC capacity vs. z10 Sub-capacity engines available for smaller configs z/os image size will grow with Hardware Performance objectives for equivalent n- ways Traditional workload = 1.3x New workload = 1.6x with compiler changes Configurable Engines z900 z990 z9 z10 Compute Intensive Decimal FP zfuture Capacity IFL Crypto zaap ziip Accelerators * All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.

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30 System z Energy Efficiency Roadmap Future HV DC input power Water Cooled Option 2007 z9 Power Calculator Mainframe Gas Gauge Energy Efficiency Credits/Certificates Published typical energy numbers 2008 z10 Enhanced Power Savings for processors & IO chips Advanced power & thermal trending via Active Energy Manager Add reporting of humidity and heat load to water vs. air Improved powersavings mode for unused and idle processors Query Max Potential Power Static Power Saving mode Platform Manager advanced energy management

31 Hybrid technologies extend available capacity The business capabilities from leveraging the z dimension Hybrid technologies increase overall capacity under control of system z Deploy optimized solutions across z/os, specialty engines and Blades System z management extended across end-to-end applications Federated capacity from hybrid technologies Configurable Engines z900 z990 z9 z10 Compute Intensive Decimal FP zfuture Capacity IFL Crypto zaap ziip Accelerators * All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.

32 zfuture: The next leap in virtualization S/360 CP-67 Timesharing Virtualization was pioneered and perfected on IBM mainframes System z continues to set the gold standard in virtualization All other servers lag in virtualization capabilities zfuture will deliver integrated virtualization to a heterogeneous system configuration! S/370 VM/370 CMS 43xx VM/SP N-way Hypervisor Control Program VM Assist microcode Second-level guests and beyond System z10 System z zseries 9x21 G2 - G ziip OSA Port 308x z/vm zaap Isolation 303x VM/ESA 64-bit ICF Virtual Switch VM/XA PR/SM ESA Linux for System z VM/HPO 31-bit IFL HiperDispatch Multi-Image Facility 64 MB real On/Off CoD Logical Partitioning Performance Toolkit Dynamic SIE instruction HiperSockets Memory Upgrade Advanced Paging Subsystem Large-scale memory over commitment Programmable Operator Virtual Disks in Storage Resource Capping Multiple Logical Channel Subsystems zfuture Integrated Management Partition Workload Management Ensemble Management Hypervisor Clustering Virtual Machine Mobility HiperSockets virtual networking throughout zfuture 1960s 1970s 1980s 1990s 2000s

33 System z roadmap: A natural evolution, and a Virtualization Revolution Application specialty engines Dedicated processors for key environments (eg: Linux, JAVA) Improved price / performance for new workloads Very low cost of large scale consolidation Expanding the specialty engine concept to enable more applications Integrated / networked attached resources to optimization for cost, performance and quality of service Take advantage of innovative new technologies Next Generation: Integrated Virtual Server Management Integrated Platform Management across diverse platforms from a single control point to lower cost and improve service Workload management of enterprise applications across virtual servers to improve quality of service

34 System z will pioneer next generation of Virtualization In the future, System z will improve price/performance and enable thousands of new applications to benefit from System z Qualities of Service by integrating heterogeneous technologies in a highly Virtualized system. Tightly integrated heterogeneous systems Consolidated disaster recovery Simplified policy and management domains across the multi-tier architectures End-to-end management view of distributed application components Improved economies of scale and efficiency 34

35 Service Levels to Match Your Business Needs Increased flexibility for your multi-tier, multi-architecture strategy Low TCO Low TCA Silo managed islands of computing Less dynamic Minimal resource sharing Distributed Systems Expanded ISV support for enterprise applications Targeted for applications that interact with mainframe data and transactions Provisioned and managed by System z Integrated Application Serving Blades Extreme consolidation of servers and networking Superior levels of virtual server provisioning, monitoring and workload management Linux-on-z/VM 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 disaster recovery solutions z/os 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, highperformance security support zfuture Integrated End-to End Computing Lower Scalability, Security, Dynamic Workload Management Higher

36 The Next Generation System z: Delivering Exceptional Business Value to help our clients. Compete: Accelerate Insight & Results Accelerate critical transactions and queries Gain insights from critical operational data with real time analytics Respond: Increase Business Agility, Security, and Resiliency Automated policy based platform management for the entire application stack Simplified infrastructure speeds change and recovery Save: Lower capital and operating expenses Heterogeneous simplification and virtualization reduces hardware, software, and operational costs Mainframe class utilization reduces datacenter energy usage Enjoy the mainframe experience at a fraction of the cost for thousands of applications, without any software changes

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