System Z Cloud Atlanta

Andrea Greggo Cloud Computing Leader System z Market Strategy April 1, 2010

Key Messages
Cloud computing holds promise for large enterprises, but enterprises face challenges in adopting clouds
The System z platform can be an ideal operational platform for cloud computing workloads, particularly for private enterprise clouds
IBM today provides private cloud computing solution offerings to help customers rapidly realize the value of System z for cloud computing

Cloud computing
....service oriented and service managed
Learn more about IBM and cloud computing: http:// www.ibm.com/ibm/cloud /
Attributes VISIBILITY CONTROL AUTOMATION “ Cloud” is an emerging consumption and delivery model for many IT-based services, in which the user sees only the service, and has no need to know anything about the technology or implementation Metering & Billing Rapid provisioning Flexible pricing Elastic scaling Advanced virtualization Standardized, consumable web-delivered services Service Catalog Ordering End user self service

A cloud computing deployment is optimized = CLOUD COMPUTING … leveraging virtualization, standardization and automation to free up operational budget for new investment . VIRTUALIZATION + STANDARDIZATION AUTOMATION + Increased Flexibility Reduced Cost

Enterprises want the value of cloud without undue risk Cloud computing implementation challenges can be significant. Source: IDC Enterprise Panel, 3Q09, n = 263, September 2009 (Scale: 1 = Not at all concerned 5 = Very concerned) 76.0% 76.8% 79.8% 80.2% 81.0% 82.9% 83.3% 87.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Not enough ability to customize Hard to integrate with in-house IT Bringing back in-house may be difficult Lack of interoperability standards On-demand paym’t model may cost more Performance Availability Security

There are multiple delivery models for cloud workloads Flexible Delivery Models
Public …
Owned and managed by service provider
Subscription based offering
Offers standardized business process, application and/or infrastructure services
Flexible price on utility basis
Private …
Privately owned and managed
Access limited to client and its partner network
Drives efficiency, standardization & best practices, while retaining control
Cloud Services Cloud Computing Model .… Customization, efficiency, availability, resiliency, security and privacy .…Standardization, capital preservation, flexibility and time to deploy
Hybrid …
Access to client, partner network, and third party resources
Industrialization
Value drivers … Value drivers …

Cloud computing doesn’t change system capabilities Operational spending is growing significantly, has greater variability, & is introducing more risk Capital costs are flat Source: The Economist, 10/23/2008 $0 $50 $100 $150 $200 $250 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0 5 10 15 20 25 30 35 40 45 50 Power and Cooling Costs Server Mgt and Admin Costs New Server Spending Server Installed Base (Millions) Spending US$(B) 0 5 10 15 20 25 30 35 40 45 50 0 5 10 15 25 30 35 40 45 50 Physical WW IT Spend on Servers, Power, Cooling and Management / Administration

Cloud computing is a delivery option for workloads And system z is the premiere foundation Security EAL5 LPAR security certification and hardware cryptographic features Virtualization 1000’s of virtualized systems in a single frame, deployed in minutes Scalability Ability to meet massive demands from users and data Efficiency ¼ network, 1/25th floor space, 1/20 energy, 1/5 administration Availability Failures measured in decades with hot swappable components
Linux and System z are the foundation for Oildex - a software as a service line of business process capability for the energy industry:
Servicing 8200 of the world’s leading energy and gas corporations
Processing $136 Billion in transaction detail annually
Deliver 24/7 operations with 99.5% application availability

Power and floor space are key to operational efficiency … a Big Green showcase that resulted in 60-75% gross cost savings (5 yr TCO) IBM’s Project Big Green … promises energy savings of approximately 42% for average data center Enterprise Compute Model … a five step approach to energy efficiency in the data center … … consolidation & virtualization of 3900 mid-range servers to < 30 mainframes … Learn more: http://www.ibm.com/press/us/en/presskit/21944.wss 55% 7,000 15,700 Physical Network Connections 96% 700 19,500 Cables 97% 960 31,300 Ports 93% % Reduction 1,800 System z Linux 26,700 Distributed Software Licenses Unit

System z is the gold standard for RAS
Using System z as the platform for cloud:
Lengthens the hardware refresh cycle - less capital outlay
Reduces hardware failures (measured in decades)
Supports hot swappable hardware components and sophisticated system maintenance for ongoing operations
Enables support for enterprise class SLAs in the cloud
Up to 900 containers of IT waste arrive in Africa and Asia per week from Western Europe and the US, 80% of which are being dumped. http://www.computerweekly.com/Articles/2009/09/24/237844/Illegal-dumping-of-IT-waste-must-be-stopped.htm Reliability v Availability v Security

System z private cloud computing solutions
In 4Q2009 IBM announced two new cloud computing offerings:
Solution Edition for Cloud Computing Smart Analytics Cloud … a cloud computing solution for the delivery of business intelligence & analytics optimized for the large enterprise client … a cloud computing foundation solution that can be customized by the client for a wide range of cloud workloads

Smart Analytics Cloud Creates … That delivers … Introducing the Smart Analytics Cloud
Phase 1: Create awareness of, a strategy for and a governance foundation for BI across the organization
Phase 2: Preparation for the Smart Analytics Cloud
IBM Services
Phase 3: Install the base cloud, integrate into the corporate enterprise and test the cloud use cases
Phase 4: Educate the enterprise for on-going success with the Smart Analytics Cloud
The solution components … Learn more: http://www.ibm.com/systems/z/solutions/cloud/smart.html A private cloud within the enterprise A solution for delivering business intelligence to the entire organization Open, enterprise-class BI platform Web Office Search Mobile Cognos 8 BI A broad range of BI capabilities IBM System z Centralize, Virtualize & Simplify the BI infrastructure IBM software IBM hardware

Large enterprise customers face challenges to delivery of BI
Proliferation of business intelligence and performance management tools
Departmental BI solutions are commonplace in large enterprise accounts
Difficulty supporting and complying with corporate and regulatory standards
Rising costs for delivering BI/analytics/performance management within the enterprise, as each instance requires ongoing operations costs plus initial start-up costs which include hardware, set-up costs, software, etc.
Lack of a cohesive enterprise strategy for the corporation
Utilization of skilled workers is ineffective when there are many deployments requiring ongoing operations and support
Setting up a new BI environment takes months / years to roll out
Top down allocation of IT funding across divisions makes it difficult to change
Data exists in many formats and is spread across the enterprise

Smart Analytics Cloud for large enterprises This offering transforms the delivery of business intelligence into a service that is readily available and affordable to corporate users across and beyond the enterprise. Report Authors Cloud Administrators BI Administrators Smart Analytics Cloud WAS z/VM for Dev/Test Cognos Linux DB2 WAS z/VM for production Cognos Linux DB2 Cloud boarding application Marketing Line of Business ‘A’ R&D Data Mart/ Warehouse HR Data Mart/ Warehouse Data Mart/ Warehouse Finance Operations Data Mart/ Warehouse Line of Business ‘B’ Marketing R&D Data Mart/ Warehouse Senior Executives Large enterprise organization z/VM for cloud management Ops Mgr for z/VM VM Perf Toolkit Tivoli Automation Tivoli Monitoring z/VM Tivoli usage metering Linux

Blue Insight: IBM’s deployment is the world’s largest private cloud computing environment for business intelligence and analytics that will empower IBMers from around the world with information and business insight to make smarter decisions – no matter where the data resides
IBM Smart Analytics Cloud: a services based solution offering to enable large enterprise clients to build their own private cloud environment with easily consumable business intelligence services, system and software
IBM Blue Insight results:
Consolidating +20 multi-product, departmental BI deployments to Cognos 8 BI on System z
Realizing value from +60 data sources across IBM representing +1PB of data
Deploying private cloud self service to support +200,000 named users across our global workforce (120K by mid-year 2010, expanding to 200K by 2011)
56% cost savings per user (grows with volume)
$7,775,767 - Infrastructure cost savings realized with z10 technology
$2,558,525 - Business Intelligence Competency Center (BICC) cost savings;
Elasticity in a shared server model supporting SLAs for diverse tenants; Speed to value and reduced capital spend (26 weeks to 2 weeks)
Smart Analytics Cloud in the IBM corporation Our commitment to informed decision making led us to consider private cloud delivery of Cognos via System z, which is the enabling foundation that makes possible +$20M savings over 5 years . -IBM CIO Office “ What IBM has done is come up with a perfect application for a private cloud.” -- John Webster, CNET, Nov. 18, 2009

Solution Edition for Cloud Computing Creates… That delivers … Solution Edition for Cloud Computing IBM software IBM hardware
Phase 1: Create cloud computing use cases within the enterprise
Phase 2: Implement the service automation and management tooling to support cloud workloads
IBM Services Centralize, Virtualize & Simplify
Phase 3: Educate the client on cloud computing for on-going success and provide a sample workload
The solution components … Learn more: http://www.ibm.com/systems/z/solutions/editions/cloud/index.html The framework to migrate workloads for rapid adoption of cloud computing benefits An infrastructure solution for cloud computing built on Tivoli & System z Automation Visibility Control

Large enterprises want to capture the cloud value proposition
Lowers operating expense and reduces errors and defects by:
Automating processes around deploying, optimizing and terminating components of the service
Reducing the resources (people, energy, data floor space) needed to run cloud workloads
Introduces automated service consumer capabilities to simplify lifecycle management
Provides a framework for standardizing workloads that are inefficient and highly variable today
Makes mainframe assets readily available and simply consumable

Architecture overview for the solution edition for cloud computing
“ Management from” LPAR for rapid provisioning/de-provisioning and services lifecycle management
“ Managed to” LPAR supports the customer defined cloud images
Linux & z/OS support under z/VM
An eyeOS sample workload is provided
z/VM Management LPAR Workload LPAR Image A Image B images z/VM This solution can be used to build test clouds, compute clouds, or as the foundation for software services in the cloud. Tivoli Services Automation Manager ITM OMEGAMON Service Portal

Secure, self-service cloud management hardware appliance
Unmatched IBM middleware management (apply maintenance, federate cells, etc. - not black box)
Dispenses hardened WAS patterns into a pool/cloud of virtualized hardware running a supported hypervisor (z/VM, PowerVM, or VMware ESX.
Enables consistent & repeatable deployment of application environments based on patterns
Integrates with existing infrastructure through programmable REST APIs
Enhancing the portfolio of cloud computing capability: Introducing WebSphere CloudBurst Appliance for z/VM

eyeOS is a value based cloud workload
Simple delivery of virtualized desktop and platform services
Centrally controlled and managed from virtualized servers
Cost effective workload that runs in a simple LAMP stack
Provides a development platform that can be used to build various desktops or collaboration applications
eyeOS can be used to extend virtualization strategies to the desktop Learn more: http://www.eyeos.org/
eyeOS is a RIA Framework + Web Desktop available from anywhere, using any device and operating system:
ALL YOU NEED IS A WEB BROWSER

National Business Center slashes costs by creating Strategic Enterprise Cloud Platform on IBM System z ZSP03324-USEN-00 (January 2010)
Solution components:
IBM System z, WebSphere SOA, Linux and IBM Tivoli management products
“ System z is our enterprise server of choice due to clear advantages in cost-of-acquisition and operation – these savings are vitally important to us as they ensure NBC remains competitive in bidding situations.” — Doug Bourgeois, Director, National Business Center Business challenge: Despite being part of the Department of the Interior, the National Business Center (NBC) does not receive governmental funding and relies on competitive bids to operate. It needed to be able to offer the best service while keeping a sharp eye on costs to succeed. Solution: Implemented IBM System z mainframes running Linux and IBM WebSphere SOA. A range of IBM Tivoli products help manage mainframe virtualization, provisioning and balancing workload.
Benefits:
System z operates at 80-100% utilization compared to the 10-20% average of distributed servers, maximising ROI
Offers customers solid and secure service, ensuring maximum satisfaction
Takes advantage of virtualization capabilities to optimize resource provisioning and workload balancing
Source: Clabby Analytics, August 2009 ftp://ftp.software.ibm.com/common/ssi/pm/ab/n/zsc03060usen/ZSC03060USEN.PDF

Thank you! Contact me! Andrea Greggo [email_address]

System Z Cloud Atlanta

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