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2 IBM s Vision For The New Enterprise Data Center Subram Natarajan Senior Consultant, STG Asia Pacific

3 Multiple forces are driving a transformation of the data center Operational issues have IT at a break point 3 Accelerated pace of business and technology innovations

4 IT organizations are challenged by a set of operational issues Costs & Service Delivery Business Resiliency & Security Energy Requirements Challenges Rising costs of systems and networking operations Explosion in volume of data and information Enterprises report that IT Difficulty in deploying new applications and services operational overhead = up to 70% Security of your assets & your clients information of IT budget and growing... Landslide of compliance requirements leaving precious few resources for Systems and applications need to be available new initiatives. Rising energy costs & rising energy demand IDC, Dec 06 Power & thermal issues inhibit operations Environmental compliance & governance mandates 4

5 Business innovation is accelerating with advancements in technology Medical imaging 1TB/4D image Financial services ~130B market messages Mobile phones ~4B mobile subscribers 1MB/2D image 5B market messages 1B mobile subscribers By medical images will take up 30% of the world s storage By over half of U.S. equities trading will be algorithmic By % 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; Infonetics Research, Radio Access Network Equipment and Subscribers report, October 2007; Pyramid Research, October

6 Changing landscapes - new technologies will need to be harnessed 6

7 Convergence of issues require a new way of thinking about the data center 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 Source: Gartner, U.S. Data Centers: The Calm Before the Storm, Doc. #G , September 25, 2007

8 8 An evolutionary new model for efficient IT delivery addresses a changing landscape

9 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 9

10 Enabling The New Enterprise Data Center a holistic, integrated approach Enterprise Information Architecture Highly Virtualized Resources Security and Business Resilience Efficient, Green and Optimized Infrastructure and Facilities Business-Driven Service Management 10

11 The New Enterprise Data Center has far reaching benefits Triple asset utilization Provision new resources in minutes Eliminate 80% of outages Up to 60% heat reduction Reduce floor space by 80% Reduce disaster recovery time by 85% reallocating resources from operations to innovation 11

12 Customer moving to New Enterprise Data Center IT simplification and quick ROI On track to save more than $15M over 3 years, including 50% Web infrastructure cost and 80% floor space reductions Increased utilization 40% to 85% across IBM and EMC storage infrastructure A 75% headcount reduction compared with requirement for previous x86 systems Consolidation and virtualization of servers and storage reducing complexity, energy and labor for $40M est. cost reduction 12

13 13 Stages of adoption

14 Simplified Drives IT efficiency Physical consolidation and optimization Virtualization of individual systems Systems, network and energy management Consolidation and virtualization of servers and storage reducing complexity, energy and labor for $40M est. cost reduction 14

15 Shared Rapid deployment of new infrastructure and services Highly virtualized resource pools Integrated IT service management Green by design Virtualized multi-vendor storage environment with faster creation of testing environments and over 50% performance improvement 15

16 Dynamic Highly responsive and business goal driven Virtualization of IT service Business-driven service management Service oriented delivery of IT New IT service requests provisioned for researchers in minutes, not hours or days with 95% less power and footprint expected 16

17 Evolution of Systems Reduce complexity and management overhead by creating large pools of like resources that are managed as one... These system ensembles Scale from a few to many thousands of virtual or physical nodes Reduce management complexity with integrated virtualization, management, and security software Are workload optimized for maximum performance and efficiency 17

18 Evolution of Networking As systems environments simplify, the associated networking which supports these environments needs to respond in order to contain and manage network sprawl... The network is optimized Consolidated fabric meets the needs for higher bandwidth and lower latency Open networking standards that enable multi-vendor interoperability Data center infrastructure includes application-fluent networking Quality of experience through high performance, availability, and security Common management view which supports emerging service oriented architectures and business processes 18

19 This transformation spans across people, process and technology Skills shift from operations (break / fix) to IT Business Analysts Break down silos and organize around IT service delivery Paradigm shift toward shared environment Open standards Open management across server, storage, networking Open networking standards Role of systems and networking in recentralization Automation Standardization Disciplined Repeatable and documented processes Change and configuration management Process automation 19

20 Architecture and implementation leadership built on experience Unified architecture based on SOA Reference Model Patterns for IT optimization and transformation Proven & disciplined implementation approach Business Services New Enterprise Data Center Infrastructure and Management Services 20

21 Business Services Development Services Interaction Services Partner Services Process Services Enterprise Service Bus Business App Services Information Services Access Services Management Services Services Request Management Process Management Infrastructure Services Service Management Platform Federated Management Data Operational Management Container Services Server Services Storage Services Network Services Optimization Execution Services The New Enterprise Data Center Architecture Details Facility Services Highly Virtualized and Optimized Infrastructure 21

22 IBM s Commitment Openness Collaboration Leadership For IT executives looking for a single, one-stop shop for assistance in building next-generation data centers and for a company with a long-term, comprehensive industry vision complimented by associated products and services IBM should be first-and-foremost on any new enterprise data center migration short-list. Clabby Analytics, Feb 08 22

23 Harnessing new innovations for enterprise clients Open communities Internet technologies Cloud computing GRID 23

24 Client Collaboration Over 700 energy efficient data center engagements in 4Q07 Over 10,000 IT optimization engagements More than 5,500 SOA engagements 24

25 IBM s Own Data Center Transformation IBM Data Center Evolution Reduced operational costs by $1.5 billion/year 1997 Today CIOs 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 The New Enterprise Data Center Increased quality of service delivery Real time integration of information and business services 25

26 26 Ecosystem of Partners

27 Getting started Assess where you are today Simplified Shared Dynamic Determine the best starting points Begin with Strategic Roadmap: Data Center Transformation Service Management Strategy Information Architecture Leverage IBM experience Client case studies Implementation patterns and blueprints Begin by addressing critical operational issues: Consolidation & Virtualization Green computing Business Resiliency & Security Service performance IT process automation Optimized information availability Architected approach World-class technologies and products 27

28 Summary Companies in every industry are exploiting advanced technology to gain competitive advantage Infrastructure and information complexity along with rising energy costs are driving higher operational costs for companies and constraining their growth The new enterprise data center offers an evolutionary new model for efficient IT delivery.addressing these converging issues 28

29 Simplified Shared Dynamic The freedom to innovate 29

30 30

31 Trademarks and disclaimers 8 IBM Corporation All rights reserved. References in this document to IBM products or services do not imply that IBM intends to make them available in every country. Trademarks of International Business Machines Corporation in the United States, other countries, or both can be found on the World Wide Web at 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. Linux is a registered trademark of Linus Torvalds 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. IT Infrastructure Library is a registered trademark of the Central Computer and Telecommunications Agency which is now part of the Office of Government Commerce. 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. UNIX is a registered trademark of The Open Group in the United States and other countries. Java and all Java-based trademarks are trademarks of Sun Microsystems, Inc. in the United States, other countries, or both. Other company, product, or service names may be trademarks or service marks of others. Information is provided "AS IS" without warranty of any kind. The customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer. Information concerning non-ibm products was obtained from a supplier of these products, published announcement material, or other publicly available sources and does not constitute an endorsement of such products by IBM. Sources for non-ibm list prices and performance numbers are taken from publicly available information, including vendor announcements and vendor worldwide homepages. IBM has not tested these products and cannot confirm the accuracy of performance, capability, or any other claims related to non-ibm products. Questions on the capability of non-ibm products should be addressed to the supplier of those products. All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. Some information addresses anticipated future capabilities. Such information is not intended as a definitive statement of a commitment to specific levels of performance, function or delivery schedules with respect to any future products. Such commitments are only made in IBM product announcements. The information is presented here to communicate IBM's current investment and development activities as a good faith effort to help with our customers' future planning. Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance 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 or performance improvements equivalent to the ratios stated here. Prices are suggested U.S. list prices and are subject to change without notice. Starting price may not include a hard drive, operating system or other features. Contact your IBM representative or Business Partner for the most current pricing in your geography. Photographs shown may be engineering prototypes. Changes may be incorporated in production models. 31

32 Thank you

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