Enterprise Cloud System (ECS)

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1 Enterprise System (ECS) TCO Comparisons with Competitive Solutions Jose Castano Director, IBM System z New Workloads & Solutions Fehmina Merchant, Ph. D. Senior Consulting Engineer, IBM Competitive Project Office

2 System z: The dynamic cloud for extreme flexibility and value Hybrid with Linux on Software as DevOps System z a Service App Dev cloud Maximize efficiency by tapping unutilized resources z/os cloud Core business operations enabled as cloud services Hybrid cloud Maximum flexibility through use of on- and off-premise resources Linux on IBM System z cloud Highly efficient fully virtualized infrastructure 2 24 IBM Corporation

3 Cost per virtual server IBM Competitive Project Office zenterprise redefines efficiency & economics of IT enabling new levels of business agility Delivering superior service at lower cost than legacy x86 or Public vendors Saved $46 million through consolidation Public Cut datacenter costs by 7% Number of virtual servers 32 x86 Enterprise Linux server Largest MSP in Africa leveraging System z to bring cloud to new markets 3 24 IBM Corporation

4 IBM Enterprise System Trusted. Simply Delivered. Standard Linux Environment Red Hat/SUSE 3+ Applications { } Utility Pricing and MSP Flexible Financing Fully Automated Management Suite Hypervisor and Virtualization Management { { Linux Guests Linux Guests I/O and Network Linux Guests Management Virtualization Management LPAR LPAR LPAR } } Trusted, 24/7 IBM Support Award Winning Hardware Design Factory Integrated Delivered in 45 Days Production Ready in Hours 4 IFLs Memory Enterprise System based on zbc2* Server Scale up to 6 VMs Mainframe Availability Proven Server Security 24 IBM Corporation

5 Reduce costs with a System z private cloud 34% and 73% less cost Server configurations are based on equivalence ratios derived from IBM internal studies. Prices are in US currency and will vary by country. Public cloud case includes costs of hardware (instances, data in/out, storage, support, free tier/reserved tier discounts), software (middleware) and labor. IBM zenterprise and x86 cases include costs of hardware (system, virtualization, OS), software ( cloud mgmt, middleware), power, floor space and labor Advantages of a private cloud on zenterprise 24 IBM Corporation

6 Agenda Assumptions TCO model Platforms Enterprise System, x86 cloud, public cloud Workloads Heavy I/O, medium, very light dev/test Two TCO studies 398 workload case 48 workload case Summary 6 24 IBM Corporation

7 TCO Model More than 3 cost variables Blade and IFL amount and costs Memory amount and costs Storage amount and costs PVU counts Cost of hypervisors Cost of cloud management software Cost of operating system Cost of middleware Cost of hypervisor maintenance Cost of cloud management maintenance Cost of operating system maintenance Cost of middleware maintenance Power consumption Cost of power Space taken Cost of space Admin rate Efficiency factors for labor Number of FTE Number and type of instances Cost of instances Amount of data in/out Cost of data in/out Enterprise support costs Placed in four categories Hardware Software Labor Power and Space 7 24 IBM Corporation

8 Enterprise System Assumptions Hardware costs include: ELS, storage, z/vm, IBM Wave for z/vm and SLES Software costs include: WebSphere Application Server ND (middleware) Management Suite for System z (Smart Orchestrator, Tivoli OMEGAMON for z/vm and Linux, Tivoli Storage Manager EE), Tivoli software for z/vm (Operations Manager for z/vm, Backup and Restore for z/vm) Labor costs included to manage both hardware and VMs Power/floor costs included 8 24 IBM Corporation

9 x86 Assumptions Hardware costs include: x86 hardware with competitor hypervisor, SLES Software costs include: WebSphere Application Server ND (middleware) Smart Orchestrator Smart Monitoring Tivoli Storage Manager EE Labor costs included to manage hardware and VMs Power/floor costs included 9 24 IBM Corporation

10 Public Assumptions Each workload deployed as a separate instance Reserved instances with heavy utilization pricing model used Hardware costs include: Instances in east US region with SLES, EBS volume, data in/out, support (enterprise), free and reserved tier discounts applied Software costs include: WebSphere Application Server ND (middleware) costs for instances Labor costs included for managing instances 24 IBM Corporation

11 Workload Assumptions Workloads run 24x7 3 types of Heavy I/O Online web application driving 22 transactions per second with MB I/O per transaction Medium Online web application driving 22 transactions per second with light I/O Very light Dev/test environment for web application driving a few transactions per second 24 IBM Corporation

12 Which option costs less for delivering mixed? 272 very light Public 87 medium Private (x86) 39 heavy I/O 398 Which option provides the lowest TCO over 3 years? on System z (Enterprise System) 2 24 IBM Corporation

13 Platform requirements for deploying with heavy I/O Public 39 cc2.8xlarge reserved instances 39 heavy I/O Private (x86) 624 x86 cores Online banking, each driving 22 transactions per second with MB I/O per transaction on System z (Enterprise System) 26 IFLs 3 Server configurations derived from IBM internal studies. 24 IBM Corporation

14 Platform requirements for deploying medium Public 87 c.medium reserved instances 87 medium Private (x86) 24 x86 cores Online banking, each driving 22 transactions per second with light I/O on System z (Enterprise System) 4 IFLs 4 Server configurations derived from IBM internal studies. 24 IBM Corporation

15 Platform requirements for deploying very light Public 272 m. small reserved instances 272 very light Private (x86) 28 x86 cores Dev/test, each driving a few transactions per sec on System z (Enterprise System) 8 IFLs 5 Server configurations derived from IBM internal studies. 24 IBM Corporation

16 on System z yields the lowest costs 272 very light Public 398 reserved instances $37.M (3yr TCO) 87 medium Private (x86) 676 x86 cores 39 heavy I/O 398 on System z (Enterprise System) $8.3M (3yr TCO) 48 IFLs 6 Server configurations are based on equivalence ratios derived from IBM internal studies. Prices are in US currency and will vary by country. Public cloud case includes costs of hardware (instances, data in/out, storage, enterprise support, free tier/reserved tier discounts), software (middleware) and labor. zenterprise and x86 cases include costs of hardware (system, virtualization, OS), software ( cloud mgmt, middleware), power, floor space and labor. 49 and 75% less cost $9.4M (3yr TCO) 24 IBM Corporation

17 Enterprise System delivers lowest TCO 49 and 75% less cost Server configurations are based on equivalence ratios derived from IBM internal studies. Prices are in US currency and will vary by country. Public cloud case includes costs of hardware (instances, data in/out, storage, enterprise support, free tier/reserved tier discounts), software (middleware) and labor. zenterprise and x86 cases include costs of hardware (system, virtualization, OS), software ( cloud mgmt, middleware), power, floor space and labor IBM Corporation

18 Which option costs less for delivering mixed? 35 very light Public medium Private (x86) 3 heavy I/O 48 Which option provides the lowest TCO over 3 years? on System z (Enterprise System) 8 24 IBM Corporation

19 on System z yields the lowest costs 35 very light Public 48 reserved instances $3.9M (3yr TCO) medium Private (x86) 55 x86 cores $.6M (3yr TCO) 9 3 heavy I/O 48 Server configurations are based on consolidation ratios derived from IBM internal studies. Prices are in US currency and will vary by country. Public cloud case includes costs of hardware (instances, data in/out, storage, enterprise support, free tier/reserved tier discounts), software (middleware) and labor. zenterprise and x86 cases include costs of hardware (system, virtualization, OS), software ( cloud mgmt, middleware), power, floor space and labor. on System z (Enterprise System) 34 and 73% less cost 6 IFLs $.M (3yr TCO) 24 IBM Corporation

20 Enterprise System delivers lowest TCO 34 and 73% less cost Server configurations are based on equivalence ratios derived from IBM internal studies. Prices are in US currency and will vary by country. Public cloud case includes costs of hardware (instances, data in/out, storage, enterprise support, free tier/reserved tier discounts), software (middleware) and labor. zenterprise and x86 cases include costs of hardware (system, virtualization, OS), software ( cloud mgmt, middleware), power, floor space and labor IBM Corporation

21 Summary Up to 75% lower total cost of ownership than leading public cloud provider Up to 49% lower total cost of ownership than x86 private cloud Lower software (middleware) license costs from running more efficiently Lower labor, energy and floor space at scale 2 24 IBM Corporation

22 5 Q&A 24 IBM Corporation

23 Questions? Comments? Tell us what you think. 24 IBM Corporation

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