Business Value of the Mainframe

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1 Business Value of the Mainframe Jim Elliott Advocate Linux, Open Source, and Virtualization and Manager System z Operating Systems IBM Canada Ltd. 1 International zseries Oracle SIG IBM Corporation

2 Mainframe headlines IBM Touts Security of New Mainframe IBM has done a remarkable job of renewing the mainframe IBM announces mainframe virtual-tape offering The mainframe is heading towards a much larger potential market IBM offers new mainframe software 2 International zseries Oracle SIG

3 If a client were starting from scratch What do clients require in an on-demand, 24x7, alwayson world? Nearly unlimited scalability Ability to run mixed workloads together Highly automated Comprehensive security 3 International zseries Oracle SIG

4 Reports of the death of the mainframe were premature I predict that the last mainframe will be unplugged on March 15, Stewart Alsop, March 1991 It s clear that corporate customers still like to have centrally controlled, very predictable, reliable computing systems exactly the kind of systems that IBM specializes in. Stewart Alsop, February 2002 Source: IBM Annual Report International zseries Oracle SIG

5 Mainframes still dominate top enterprises Some key mainframe facts 95 % of the Fortune 1000 enterprises use IMS Originally written in 1968 to support NASA s Apollo program 25 of the world s top 25 Banks, 23 of the top 25 US Retailers, and nine out of 10 of the world s largest insurance companies run DB2 on System z 490 of IBM s top 500 customers run CICS IBM s CICS handles more than 30 billion transactions a day IBM has 50,000 CICS customer licenses, and 16,000 customers There are more than 950,000 CICS application programmers More than 359 ISVs sell over 972 Linux applications on System z 6 International zseries Oracle SIG

6 Enabling growth through innovation that matters IBM S/390 IBM System z9 Late 90s to TODAY Built upon Open and Industry standards Infrastructure Simplification IT Modernization and transformation Integration and interoperation Extending management and control capabilities across your infrastructure Delivering ongoing improvements in availability, security, manageability, virtualization, scalability, multiple workload support, resource utilization, energy efficiency 7 International zseries Oracle SIG

7 The IBM mainframe Designed to deliver the processing power business needs A rich history of innovation and refinement 40+ years of continuous innovation What do mainframes do these days? Support multiple, diverse workloads concurrently Transaction processing / Batch / Web serving / ERP / CRM / Linux Who uses mainframes? Financial institutions Municipal, state/provincial, and federal governments Retailers Manufacturing 8 International zseries Oracle SIG

8 What makes a mainframe special? Legendary dependability Can I count on a mainframe? Less than 5 minutes downtime a year How do mainframes do this? Hardware, software, storage, and network designed for maximum application availability How can mainframes help you cope with planned and unplanned outages? Unique mainframe clustering technology for maximum up-time Resilient recovery in multiple locations Replicate data real-time at remote locations and switch to replicated data without application outage 9 International zseries Oracle SIG

9 How do you manage a mainframe? Big function doesn t mean big staff Hardware / Software-based systems management that aligns system resources with business priorities System responds automatically to assigned policy Management functions for centralized Linux environments Use your mainframe as a hub to manage servers / subsystems in your IT infrastructure Enterprise management software solutions available from IBM and other vendors Accurate and comprehensive charge-back information Mainframe skills IBM Academic Initiative Plentiful Linux and Java skills available ISV solutions available Provisioning, management, and more 10 International zseries Oracle SIG

10 How do you control management costs? Centralize workloads onto highly utilized mainframes Do you recognize this description? Thousands of lightly loaded servers Hundreds of application instances IT everywhere across the business Physically Logically Thousands of distributed control points The Result: Massive complexity Spiraling people costs Compounded by the inability to allocate IT costs to the business Lack of internal costing methodologies Cost of People vs. Spending on New Systems $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $ Server spending (USM$) Cost of mgmt. Source: IDC, On Demand Enterprises and Utility Computing: A Current Market Assessment and Outlook, IDC #31513, July Predicted average cost per end user in 2010: Mainframes $6,250 UNIX Minis $19,000 PC Servers $24,000 5yr costs for hardware, software and maintenace Arcati Research 2005 The Dinosaur Myth 2004 Update 11 International zseries Oracle SIG

11 How do you protect sensitive data? Mainframes deliver security Protect the data End-to-end protection that helps keep data uncorrupted and uncompromised Prevent unauthorized access IBM and ISV access control solutions Support for a variety of encryption algorithms EAL5 and other security certifications Secure and speed the transaction Specialized Cryptographic co-processor hardware Monitor, manage, and control Centralized access and control helps lower security costs, meet compliance guidelines, and simplify audit trail. Compliance with privacy/security legislation Auditability Control Recoverability ISV solutions available 12 International zseries Oracle SIG

12 Can you outgrow a mainframe? Here s how to grow up and out, all with the same server Adding capacity to a mainframe, or scaling up Add new processors on the fly with Capacity Upgrade on Demand User initiated does not require on-site service Add processing power economically for specific workloads Adding more servers to a mainframe, or scaling out IBM System z platforms can support up to hundreds of virtual servers concurrently Pay for capacity when you use it On/Off Capacity on Demand lets you tailor processor capacity to daily business needs 13 International zseries Oracle SIG

13 Can virtualization simplify my IT infrastructure? Mainframes the leader in virtualization function Share processor, memory, I/O, and network among multiple operating environments Isolate workloads with EAL5 level security Share resources among workloads Enable communication for workloads internally with an in-memory TCP/IP network 40 year history of virtualization, innovation and refinement Hardware and software based for optimum performance and flexibility Robust suite of function for creating, provisioning, deploying, and managing virtual servers z/vm Virtualization to simplify your IT infrastructure Support up to hundreds of concurrent applications with z/vm Management tools for operation, maintenance, and accounting 14 International zseries Oracle SIG

14 The Mainframe Charter Providing a strategic framework Innovation Provide leadership in innovation to enhance the use of the IBM mainframe to support increasingly integrated and flexible business processes for the on demand business. Value Enhance the value proposition and lower the cost of computing of mainframe solutions in a way that is compelling, clear, and consistent. Community Support programs designed to foster vitality in the IBM mainframe community, helping to promote a strong application portfolio and world-class support services. 15 International zseries Oracle SIG

15 IBM System z9 Balanced System CPU, nway, Memory, I/O Bandwidth* GBs 512 GB GB/sec 96 GB/sec 24 GB/sec System I/O Bandwidth 256 GB 64 GB MIPS Built on: Virtualization heritage Commitment to open technologies A secure, scalable platform for collaboration 16-way System z9 EC zseries 990 zseries way 54-way CPUs Designed to: Deliver new scale Reduce Risk Transform economics 16 International zseries Oracle SIG

16 Technology evolution with specialty engines Internal Coupling Facility (ICF) Integrated Facility for Linux (IFL) System z Application Assist Processor (zaap) System z9 Integrated Information Processor (ziip) Centralized data sharing across mainframes Support for new workloads and open standards Incorporation of Java into existing mainframe solutions Designed to help improve resource optimization for eligible data workloads within the enterprise 17 International zseries Oracle SIG

17 System z9 announcement System z9 enhancements On/Off Capacity on Demand enhancement LPAR group capacity limit z/vm integrated systems management Hardware decimal floating point facilities Enhanced driver maintenance utilization Fibre Channel Protocol enhancements FCP performance improvements FCP performance metrics Parallel Sysplex enhancements Coupling Facility Control Code (CFCC) Level 15 is being made available on System z9 z/os Networking enhancements OSA-Express Network Traffic Analyzer QDIO Diagnostic Synchronization for Layer 3 Virtual MAC Dynamic LAN idle z/vm Networking enhancements Link aggregation for z/vm in Layer 2 mode Security enhancements TKE 5.1 workstation LIC LDAP support for HMC user authentication HTTPS proxy for network-based RSF connections Availability enhancements System-initiated CHPID reconfiguration Multipath Initial Program Load (IPL) 18 International zseries Oracle SIG

18 System z9 announcement Support Element enhancement Tree-style user interface for the z9 Support Element Environmental enhancements Power monitoring zpower estimation tool z/vm 5.3 enhancements Modified Indirect Data Address Words (MIDAWs) for guests Support for guest ziips and zaaps Exclusive to z9 BC Enhancement to z9 BC Capacity Backup Upgrade (CBU) FICON Express4-2C SX Crypto Express2-1P HMC enhancement Optional TCP/IP-based connection for the System z9 HMC Application Programming Interface Previews IPSec and ziips for z/os C and C++ compiler support for hardware decimal floating point Statement of general direction Dynamic ICF expansion z/os XML to be enabled for both zaap and ziip specialty engines IBM Tivoli OMEGAMON XE for Mainframe Networks Support for System Storage TS3400 Tape Library Server participation in a Parallel Sysplex 19 International zseries Oracle SIG

19 Can I afford a System z server? Can you afford not to have one is the better question! Flexible hardware pricing options Pricing options for entry and large models Pricing for special workloads like Java and Linux Add capacity either permanently or temporarily For seasonal demand For backup / recovery purposes Multiple software pricing options to suit your business Software pricing aligned with consumption within partition Aggressive software pricing for new workloads 20 International zseries Oracle SIG

20 Thank you Jim Elliott Advocate Linux, Open Source, and Virtualization Manager System z Operating Systems IBM Canada Ltd ibm.com/linux ibm.com/systems/z ibm.com/vm/devpages/jelliott 21 International zseries Oracle SIG

21 Notices Copyright IBM Corporation 2000, All rights reserved. This document contains words and/or phrases that are trademarks or registered trademarks of the International Business Machines Corporation in the United States and/or other countries. For information on IBM trademarks go to The following are trademarks or registered trademarks of other companies. Java and all Java-related trademarks and logos are trademarks of Sun Microsystems, Inc., in the United States and other countries. UNIX is a registered trademark of The Open Group in the United States and other countries. Microsoft, Windows and Windows NT are registered trademarks of Microsoft Corporation. Red Hat, the Red Hat "Shadow Man" logo, and all Red Hat-based trademarks and logos are trademarks or registered trademarks of Red Hat, Inc., in the United States and other countries. Linux is a trademark of Linus Torvalds in the United States, other countries, or both. All other products may be trademarks or registered trademarks of their respective companies. Notes: This publication was produced in Canada. 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. Permission is hereby granted to the zseries Oracle SIG to publish an exact copy of this paper in the zseries Oracle SIG proceedings. IBM retains the title to the copyright in this paper as well as title to the copyright in all underlying works. IBM retains the right to make derivative works and to republish and distribute this paper to whomever it chooses in any way it chooses. 22 International zseries Oracle SIG

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