The value of IT Optimiztion with Power5 on iseries Roberto Téllez C. iseries Porduct Manager Certified Specialist IBM de México, S.A.
Agenda 1. Consolidation and Optimization for Existing Workloads Concepts Methodology 2. Best Practices When Planning for New Functionality 3. IT Optimization with POWER5 on iseries PAGE 2
Concepts: Reduction of Cost + Enablement IT Optimization, is more than simply replacing smaller servers with fewer bigger servers. It is about simplifying and optimizing end-to-end IT infrastructure Servers Databases Applications Networks Systems management processes The goals of consolidation are Reduction of costs and complexity Delivering a rational, stable IT foundation that enables growth PAGE 3
Concepts: Reduction of Cost + Enablement Without the constraints of technology, skills or money, the ideal target environment would be: One hardware platform, potentially clustered for DR and HA One operating system, database, and middleware stack 3 instances of the OS: trusted network, DMZ and Test Why? Concentrate skills, and maximizes productivity Enable enforcement of best practices across all services Largely eliminate data integration issues Enable enterprise disaster recovery The ideal environment is almost never achieved IT Optimization strives to get as close to the ideal as possible, while balancing constraints PAGE 4
Concepts: Relevance of On Demand and eserver On Demand reflects IBM s execution on the strategy of leveraging intellectual property across the entire company IT Optimization consulting IP influences OnDemand vision On Demand vision dictates responses from product teams eserver product teams share and merge IP across product lines, to enable customers for IT Optimization PAGE 5
Concepts: Relevance of On Demand and eserver On Demand at the infrastructure level: Focused on IBM s core technology competencies Virtualization Automation and systems management Optimize the ENTIRE environment All hardware, all OS, all services not just what we build Storage virtualization Hardware virtualization OS consolidation Application modernization Automation Technology foundations of OnDemand and eserver Linux and POWER PAGE 6
Reduction of Cost + Enablement PAGE 7
Concepts: Reduction of Cost + Enablement Highly Visible Customer Benefits 1.Lower Costs Reduced administration Lower hardware, software and support costs Optimized space and power Enhanced predictability for budget planning 2.Improve Service Levels Increased performance Improved availability Facilitation of change management 3.Enable New Capabilities True enterprise disaster recovery Accelerate applications/process integration On Demand flexibility --cost effectively deploy new services PAGE 8
Correlating Company Performance with IT Budgets Revenue growth. In a 2002 Forrester survey of 122 IT executives, 22% said that their top priority is to help acquire and retain customers. Return on assets (ROA). A company s ability to generate profits from its existing asset base, including IT, is a good metric for a down economy. Cash-flow growth. IT helps convert receivables into cash, but CIOs are becoming increasingly creative at managing down discretionary spending by breaking projects into smaller chunks or exploring pay-bythe-drink outsourcing contracts. Linking IT Spend To Business Results Forester 10/02 PAGE 9
Doing more with less! IT Optimization PAGE 10
Concepts: Enablement drives IT considerations up the value chain PAGE 11
Concepts: A Process, Not A Project PAGE 12
Technology Independent The consolidation process is always technology independent iseries is a natural option to evaluate Amazing infrastructure for consolidating workload Often leverages existing skills and investments Almost every IT department can be optimized, but iseries will not always be a fit Application not available Can t make the business case PAGE 13
Methodology PAGE 14
Methodology Step 1: Discovery Identifying costs centers that we can optimize PAGE 15
Methodology Step 1: Discovery Recommending an alternate architecture that delivers a lower future cost PAGE 16
Methodology Step 1: Discovery Understanding IT requirements and issues Significant requirements for IT to adapt to new business initiatives or requirements Key IT priorities and concerns Budget not lining up with actuals Service level targets not being met Can t afford to implement what you need Project running late IT funding model Investment thresholds -ROI and payback pre-requisites Annual budget Department charge back PAGE 17
Methodology Step 2: Data Collection 1. Create an IT inventory A. Hardware, OS, middleware and application 1) Specification 2) Location 3) Utilization 4) Version and release level 5) Level of Service 6) Application status (sunset, static, growing) B. Investment plans 1) Upgrade, replace, maintain, remove 2) Value of upgrade or replace 3) Lease or capital asset 4) Support costs PAGE 18
Methodology Step 2: Data Collection (continued) 2. Understand topology A. Locations B. WAN variables 1)Connection type and capacity 2)Utilization rates 3)Rent and support costs 4)Infrastructure re-investment (all new routers?) C. LAN variables (same as B) 3. Document impact of growth factors A. New applications B. Mergers and acquisitions PAGE 19
Methodology Step 2: Data Collection (continued) 4. Document remaining cost variables A. IT staff 1) Number of employees 2) Categorize job responsibilities 3) Burdened cost for each category (salary times X.X) B. Downtime 1) Estimates or internal cost metrics 2) Penalties and business impact C. Licensing and Support 1) Document any agreements that don t fit within an individual server discussion Enterprise support agreements Enterprise software agreements PAGE 20
Methodology Step 3: Island Identification Process 1. Group servers into common sets of function A. Common applications: Domino, DB2, WebSphere B. Similar services: Email, database, Web, network 2. Identify islands of complexity 3. Prioritize based on preliminary estimate of ROI, effort and risk Some indications that an island is ripe for optimization A. Inefficiency: consuming resources at a rate that is disproportionate to return or alternatives B. Disruption: not meeting service level agreements C. Erosion: lack of currency and maintenance D. Duplication: delivering the same service multiple ways PAGE 21
Methodology Step 4: Infrastructure Redesign 1. Choose new architecture based on A. Ability to maximize ROI B. Risk associated with migration 2. Consider all costs associated with the new architecture A. Acquisition B. Migration C. Maintenance and support D. Space and environments E. Service levels F. Administrative G. LAN/WAN capacity PAGE 22
Methodology Step 4: Infrastructure Redesign A balanced perspective PAGE 23
Methodology Step 4: Infrastructure Redesign A balanced perspective PAGE 24
Methodology Step 5: Business Case 1. Contrast new cost structure to the existing solution, and calculate return on investment 2. Stress test assumptions 3. Review findings and assumptions with team 4. Incorporate feedback, and refine business case An iterative process PAGE 25
Methodology Step 6 and 7: Implementation and Monitoring 1. Implementation A. Strong emphasis on project management B. Frequent verification of progress, relative to expectations C. Establish a process for communicating issues 2. Monitoring A. Track results relative to projections B. Document and share successes C. Address deviations quickly PAGE 26
Agenda 1.Consolidation and Optimization for Existing Workloads Concepts Methodology 2.Best Practices When Planning for New Functionality 3. IT Optimization with POWER5 on iseries PAGE 27
Best Practices When Planning for New Functionality Clearly business requirements come first, but Once you ve optimized your environment, put controls in place that align new services with existing infrastructure and skills Have a review process for all new services/functionality Weigh the fit with existing skills and infrastructure in your decision Operating system Database Middleware Programming skills Security, backup and disaster recovery model Where alternatives exist, favor solutions that fit your environment PAGE 28
Agenda 1.Consolidation and Optimization for Existing Workloads Concepts Methodology 2.Best Practices When Planning for New Functionality 3. IT Optimization with POWER5 on iseries PAGE 29
IT Optimization with iseries Application Flexibility Technology Leverage Integrating People, Processes, Information Risk Mitigation Infrastructure Efficiency Aligning IT Resources with Business Goals Flexibility, Efficiency, Cost Savings Increased choice Reduced vendor lock-in Low integration costs Outstanding price/performance Consolidate workloads Flexible growth Upgrade investment protection Reduced system downtime Business continuity Capacity upgrades Flexible financing options On Demand Operating Environment High utilization of IT assets Low management costs Effective use of skills T C O R e d u c tio n PAGE 30
IBM Software Optimizing PAGE 31
Optimize Intellectual Capital iseries Opportunities Consolidate Intel Messaging/Collaboration Servers Empower your employees Integrate Collaborative Tools with Core Business Making more people more productive in the context of the business they do every day by enabling the creation of dynamic, collaborative workplaces with ease. Collaborative Tools Business Application The combination of the power of business processes and collaborative tools resulting in a rapid decision making environment. PAGE 32
User Perspective User Perspective IT Perspective IT Perspective Integration at the glass ERP 5250/3270 IT Optimization with iseries Navigation Business Intelligence Customization Groupware Personalization Client Server Single Sign On People Awareness Secure Access Syndicated Content Collaboration Productivity Portlets PAGE 33
Optimize Windows Server Deployment Costs Low cost, flexible and reliable server deployment Centralized management; consolidated storage Simplified Disaster Recovery Solutions Before consolidating on the iseries and xseries we required at least three dedicated administrators to run our servers now because of its ease of use, we need only two administrators to run the new system. Brendan Carlton Systems Administrator, Huhtamaki PAGE 34
Optimize Linux Server Deployment Costs "We selected Linux on the iseries because it was such a compelling alternative to the cost and complexity of managing nine separate Intel-based servers," Nigel Fortlage, Vice President of IT. On demand virtualization optimizes choice, reduces complexity and cost Integrated platform simplifies e-business deployment on Linux PAGE 35
LPAR, Virtual I/O, and Shared Storage Spaces lowers TCO System Variable Static Tape LAN RAID System Variable Static Tape LAN RAID Intel Solutions LAN, RAID and TAPE device for each server memory, disk, and CPU is allocated to each server each server has to have its own backup and recovery solution Do you have a DR plan for this? System Variable Static Tape LAN RAID System Variable Static Tape LAN RAID iseriessolutions Shared resources - Fewer disk drives, tape drives and LAN adapters can be used Reduce disk administration - iseries Storage Mgmt Improve performance with more disk arms Consolidated Backup of OS/400, Windows, & Linux (now that's DR!!) Resources can easily be moved to where they are needed PAGE 36
iseries Delivers ROI for Infrastructure Server Consolidation IDC study finds SMBs that consolidated Intel-based infrastructure servers to iseries using Linux or Windows achieved Strong costs savings 90% reduction in downtime 22% increase in IS Productivity Payback with 1 year 14% 13% 22% Cost Reduction User Productivity 51% IT Productivity Downtime Revenue 3 Year ROI for Server Consolidation per 100 Users Cost Savings $542,728 Net Present Value $302,052 Total Investment $141,227 ROI (NPV/Investment) Payback (Investment/Yr 1 Cashflow) 213.9% 216 Days Source: IDC White Paper: The Return on Investment of Windows / Linux Infrastructure Server Consolidation with iseries. Case Studies in SMBs 7/03 PAGE 37
IT Optimization with iseries Application Flexibility Application Flexibility Technology Leverage Risk Mitigation Infrastructure Efficiency Infrastructure Efficiency Increased choice Reduced Increased vendor choice lock-in Low integration Reduced vendor costs lock-in Low integration costs Outstanding price/performance Consolidate workloads Flexible growth Upgrade investment protection Reduced system downtime Business continuity Capacity upgrades Flexible financing options High utilization of IT assets Low management costs High utilization Effective of IT assets use of skills Low management costs Effective use of skills Technology Leverage Risk Mitigation Outstanding price/performance Consolidate workloads Flexible growth Upgrade investment protection iseries Reduced system downtime Business continuity Capacity upgrades Flexible financing options PAGE 38
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