Power your planet. Smarter Systems for a Smarter Planet. Robert Reuben, Power Systems Platform Leader UK and Ireland.

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1 Power your planet. Smarter Systems for a Smarter Planet Robert Reuben, Power Systems Platform Leader UK and Ireland

2 Customers are moving to higher value 40% as shown by the largest shift of customer spending in UNIX History 35% UNIX Server Rolling Four Quarter Average Revenue Share POWER5 Micro-Partitioning POWER6 Live Partition Mobility 30% 25% POWER4 Dynamic LPARs 20% HP Sun IBM 15% Q399 Q100 Q300 Q101 Q301 Q102 Q302 Q103 Q303 Q104 Q304 Q105 Q305 Q106 Q306 Q107 Q307 Q108 Q308 Q109 Q309 2 Source: IDC Quarterly Server Tracker Q409 release, February 2010

3 2,100 successful Power Migration Factory migrations to date. There were over 500 Power migrations during 2009, with more than 90% from Sun and HP customers (including x86 consolidation). In 4Q09 alone, Power Systems achieved nearly 200 competitive migrations. 3

4 Instrumented. Interconnected. Intelligent. There are one billion transistors per human, each costing one ten-millionth of a cent. The information created by a trillion networked things grows exponentially. Algorithms and systems turn mountains of data into actions that make the world better. Smarter. 4

5 The world s first smart grid appliance 1,000,000,000s The number of energy flow transactions utilities companies must handle securely and efficiently, on a rapidly growing basis The challenge Municipal and mid-sized electric, gas and water utilities companies struggle to keep up with the rapidly growing demand for by consumers to manage energy usage down to the individual networked appliance The solution Built on the leadership performance and energy efficiency of POWER7, coupled with emeter and IBM software and services, the smart appliance allows for rapid out of the box smart grid implementations, and can cut implementation time from one year to six months, and shave 60% off implementation costs 5

6 Using POWER7 systems to manage smarter money. 66% of trades on financial exchanges take place on electronic trading systems vs. 33% a few years ago. isys is working with IBM on real-time analytics in financial exchanges, addressing the need for real-time intelligence on trades driven by the accelerated shift to electronic trading. 6

7 Transformations to smarter solutions require smarter systems that: Scale quickly and efficiently Optimize workload performance Flexibly flow resources Avoid downtime Save energy Automate management tasks 7

8 Processor Technology IBM Investment in the Power Franchise POWER4 180 nm POWER5 130 nm POWER6 65 nm POWER7 45 nm POWER Future 8

9 Power Systems Leadership Portfolio POWER7 Servers POWER7 Blades Power 750 Express Power 755 for HPC Power 770 modular Power 780 modular high-end Entire POWER6 line continues to be available Power 750 Power 550 Power 770 Power 570 Power 560 Power 780 Power 595 PS Blades JS Blades Power 520 High Performance Computing Power Systems Software Power 755 Power 575 9

10 Power is Workload Optimization Power Systems offers balanced systems designs that automatically optimize workload performance and capacity at either a system or VM level TurboCore for max per core performance for databases MaxCore for incredible parallelization and high capacity Intelligent Threads utilize more threads when workloads benefit Intelligent Cache technology optimizes cache utilization flowing it from core to core Intelligent Energy Optimization maximizes performance when thermal conditions allow Active Memory Expansion provides more memory for SAP Solid State Drives optimize high I/O access applications Optimization and increased flexibility, for a more efficient cloud environment Workload-Optimizing Features make POWER7 #1 in Transaction and Throughput Computing 10

11 ISV reaction to the POWER7 launch With the introduction of POWER7 into the POWER family, IBM is continuing to demonstrate its innovative technology leadership delivering real value for customers. Chordiant is pleased to team with IBM to offer Chordiant Decision Manager and Chordiant Foundation Server that run on IBM s next generation of Power Systems. Marchai Bruchey, Senior Vice President, Chief Marketing Officer Cerner Corporation is excited to continue our successful relationship with IBM Power Systems. Cerner solutions require missioncritical capabilities such as those provided by IBM s new POWER7 based servers. Mike Nill, Executive Vice President, IP Development and CernerWorks SAS is pleased to team with IBM to offer SAS Business Analytic solutions that run on IBM s next generation of Power Systems. The innovative POWER7 processorbased system allows us to meet and exceed our clients expectations, delivering an overall outstanding value. Craig Rubendall, SAS Director, Research & Development We believe IBM s new POWER7 based servers will deliver the exceptional performance and mission-critical capabilities required by the most demanding telecom operators worldwide, while lowering operational costs. Palani Vel, AVP, Platform & Architecture Products and Operations We are proud to work with IBM to deliver the HORIZON Banking System on POWER7 processor with the IBM i operating system. We are confident that these new servers will meet the needs of our HORIZON customers. Tere Brun, General Manager, HORIZON 11 Source: IDC Quarterly Server Tracker Q409 release, February 2010

12 Performs like a large system, priced like a small system 1.2 million tpmc the best transaction performance result less than 8-sockets or 32-cores PERFORMANCE tpmc and it scales up to 4X the capacity K $0.69 $/tpmc ML350G6 PE T710 DL370G6 DL385G7 Power 780 rx6600 DL580G5 1 socket 2 sockets PRICE/PERFORMANCE $/tpmc 4 sockets price/performance comparable to small systems ML350G6 PE T710 DL370G6 DL385G7 Power 780 rx6600 DL580G5 12 Best tpmc results listed for non-ibm 1, 2 & 4 socket systems as of 4/8/2010. Source: See Power 780 benchmark details for specific results.

13 More SAP performance than any system in the industry 20% more performance one-fourth the number of cores vs. Sun M ,000SAP users #1 4-socket Power 780 with DB2 on SAP SD 2 Tier #1 Overall SAP Users Sun T5440 SPARC 4/32/256 Power 750 POWER 4/32/128 Sun X4640 Opteron 4/48/48 Fujitsu 1800E Nehalem-EX 8/64/128 Power 780 POWER 8/64/256 Sun M9000 SPARC 32/128/256 Sun M9000 SPARC 64/256/512 4 sockets 8 sockets 32 sockets 64 sockets 13 Systems are listed with processor chips/core/threads under system name; IBM Power System 780, 8p / 64 c / 256 t, POWER7, 3.8 GHz, 1024 GB memory, 37,000 SD users, dialog resp.: 0.98s, line items/hour: 4,043,670, Dialog steps/hour: 12,131,000, SAPS: 202,180, DB time (dialog/ update):0.013s / 0.031s, CPU utilization: 99%, OS: AIX 6.1, DB2 9.7, cert# ; SUN M9000, 64p / 256-c / 512 t, 1156 GB memory, 32,000 SD users, SPARC64 VII, 2.88 GHz, Solaris 10, Oracle 10g, cert# ; All results are 2-tier, SAP EHP 4 for SAP ERP 6.0 (Unicode) and valid as of 4/1/2010; Source: - See Power 780 benchmark details for more information

14 Power saves on TCA and Software Maintenance vs. Sun for those running Oracle Database 87% fewer cores reduces database costs on IBM Power 780 vs. Sun to achieve over 1 million transactions per minute. IBM Power 780 has a lower TCA than the required Sun Enterprise T5440 cluster and uses up to 69% less energy. Power 780 Sun T5440 SPARC cluster 8-cores 64-cores 14 * Prices are list prices in USD as April 13, Prices from resellers may vary. All prices are subject to change without notice. Oracle Enterprise Edition on Power; Oracle EE, Real Application Clusters and Partitioning on Sun Cluster. See Oracle software savings claim substantiation for more details

15 86% lower cost for DB2 on IBM Power 780 than Oracle on Sun to achieve over 1 million transactions per minute. IBM Power 780 has a lower TCA than the required Sun Enterprise T5440 cluster and uses up to 69% less energy. Power cores Sun T5440 SPARC cluster 64-cores 15 * Prices are list prices in USD as April 13, Prices from resellers may vary. All prices are subject to change without notice. IBM DB2 9.7 and Oracle Enterprise Edition, Oracle Real Application Clusters and Oracle Partitioning. See Oracle vs. DB2 savings claim substantiation for more details

16 92 to 1 Number of Sun SPARC Enterprise T2000 s that can be consolidated into a single IBM Power socket system saving 95% of the cores for software licensing, 97% on floor space, and 95% on energy. 16 See 92:1 Substantiation for more details

17 8 to 1 Number of HP Integrity Superdome 64-core systems utilized at 30% that can be consolidated into a single IBM Power 780 modular high-end system utilized at 80% saving 87% of the cores for software licensing, reduces floor space required from 80 square feet to just 7.6, and reduces energy costs by 92%. Super Power indeed. 17 See 8:1 Superdome to IBM Power 780 for more details

18 84% Reduction in energy usage moving from POWER5 to POWER7. Savings extend to floor space, software license costs, and maintenance. Increase your performance and capacity. 4 1 POWER5 570 systems GHz 30% utilization Power GHz 60% utilization 50% effective capacity increase 84% reduction in energy usage ~$250K maintenance savings over 3 years > $1M savings in software licensing With room to spare to consolidate x86 workloads 18 See Consolidate POWER5 570s to Power 770 for more details

19 The future of UNIX AIX 6 Editions for entry to enterprise servers & workload consolidation AIX 7* to exploit 1024 POWER7 threads, and support AIX 5.2 WPARs Total integration with i IBM i 7.1 features XML in DB2, automatic workload optimization with SSDs, Rational Open Access: RPG Edition and much more Scalable Linux ready for x86 consolidation POWER7 support for RHEL 5.5 & 6*, SLES 10 & 11 plus PowerVM Lx86 performance optimized for x86 server consolidation All 3 operating environments available with POWER7 19 *All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. Some features require the purchase of additional software components.

20 Power is Workload Optimized Solutions by Design IBM purescale Application System Always-available, scalable transaction processing system combining POWER7, PowerHA purescale, and WebSphere for a tightlyintegrated, pre-configured, pre-optimized solution Database Smarter Systems Web and Collaborative Applications IBM Cloudburst First ever pre-packaged cloud environment ready for the most mission critical production workloads* IBM Smart Analytics System The industry s first pre-integrated analytics system designed to deploy quickly and deliver faster time to value. Now available in optimized configurations for UNIX-class RAS and scale or for departmental or mainframe computing. Analytics emeter Smart Grid Appliance Pre-packaged appliance built on POWER7 with emeter and IBM Software, for rapid out of the box smart grid deployments, reducing implementation times from one year to six months and costs by up to 60% 20 *All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. Some features require the purchase of additional software components.

21 POWER7 supports your applications I want to assure you that we are committed to the binary compatibility of POWER7 with the AIX, IBM i and Linux operating systems. Dear Power Systems client: We listened, we have delivered for you, and in fact we hope you have been ecstatic with the recent announcements on the POWER7 products. We have worked hard to design a system that not only performs well but is easy to implement. The new POWER7 servers run the AIX V5.3 and AIX V6.1 operating systems, with binary compatibility for applications currently running on previous AIX versions on POWER4 or later. POWER7 systems also run the IBM i 6.1 operating system, with binary compatibility for IBM i applications on previous releases, even applications supported in S/36 and S/38 environments. In addition, POWER7 systems support Novell s SUSE Linux Enterprise Server SLES 10 SP3 and SLES 11 with binary compatibility for those releases running on POWER6 systems. Further, Red Hat intends to support POWER7 systems with a future release of RHEL in the first half of This broad support for multiple operating systems at announce is one of the strongest that we have ever had. But some clients have said that they want to hear it from me. I want to assure you that we are committed to the binary compatibility of POWER7 with the AIX, IBM i and Linux operating systems. We've said we have binary compatibility and we mean it. Your AIX applications, whether written in house or supplied by an application provider, will run on POWER7 systems with either AIX V6.1 or V5.3 if they currently run on AIX V5.1, V5.2, V5.3 or V6.1 without recompilations or modification. Applications running on IBM i 6.1 will run unchanged on POWER7 systems and applications running on previous releases of IBM i will be automatically converted by the system, maintaining binary compatibility. Even well-behaved Linux applications that run today on POWER6 with SLES 10 SP3 or SLES 11 will run on POWER7 with SLES 10 SP3 or SLES 11 without recompilations or modification. Please refer to the following website for limitations and additional information on binary compatibility of AIX, IBM i and Linux operating systems and on IBM i program conversion: The qualities of Power Systems performance, reliability, virtualization and quality have won many new clients to Power Systems. POWER7 represents a big step forward in the evolution of UNIX, IBM i and Linux, but does so while continuing to support existing applications. IBM Power Systems is a leader in many areas, but the one we care the most about is supporting our valued clients. Thank you for your continued confidence in IBM Power Systems and the AIX, IBM i and Linux operating systems. Keeping your applications up and running is one of our primary goals. I want you to rest assured that we are taking great care to insure that when you upgrade to POWER7, your AIX, IBM i, and Linux applications will not only run unmodified, but you will enjoy many of the new features of our POWER7 systems. Sincerely, Ross A. Mauri General Manager IBM Power Systems 21

22 Power your planet. Workload-Optimizing Systems + AIX - the future of UNIX Total integration with i Scalable Linux ready for x86 consolidation Virtualization without Limits Drive over 90% utilization Dynamically scale per demand Dynamic Energy Optimization 70-90% energy cost reduction EnergyScale technologies Resiliency without Downtime Roadmap to continuous availability High availability systems & scaling Management with Automation VMControl to manage virtualization Automation to reduce task time Smarter Systems for a Smarter Planet. 22

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