System z Market View and New Customers


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System z Market View and New Customers

  1. 1. 2011 IBM System zSummitSystem z Market View and New CustomersTom RosamiliaGeneral Manager, IBM Power and z Systems
  2. 2. Smarter Computing: System z Analyst Summit Agenda 2010 Review Client Success and New Accounts Payment Solution Providers 2011 Imperatives 2 © 2011 International Business Machines Corporation 2
  3. 3. Smarter Computing: System z Analyst SummitWe are entering the next era of computing Smarter Computing The era of insight and discovery … created by the integration of Big data in Optimized systems, managed as a Cloud … applied to deliver new insights and drive innovation … to deliver twice the capacity on a flat budget3 © 2011 International Business Machines Corporation 3
  4. 4. Smarter Computing: System z Analyst Summit IBM System z delivers capabilities for Smarter Computing Automate Integrate SecureCentrally manage and Integrate multiple platforms Secure data for acceleratedautomate operations to lower to optimize workload insightcost deploymentAutomated provisioning Integrate operations to free Advanced security tolowers cost of new and up resources for innovation manage risk and reduce costexisting workloadsAutomated development Integrated private cloud for Governance to protecttools for re-use of existing flexible service delivery existing investmentsassets 4 © 2011 International Business Machines Corporation 4
  5. 5. Smarter Computing: System z Analyst SummitSystem z improves IT efficiency across industries* 44% 31% 25% lower cost per lower IT spend per lower cost percredit card transaction consumer loan mega watt hour produced 24% 20% lower cost per lower cost per hospital bed airline passenger 26% 25% 23% lower cost per lower cost per lower cost per new vehicle retail store barrel of oil5 © 2011 International Business Machines Corporation 5 *Based on Dr. Howard Rubin Study
  6. 6. Smarter Computing: System z Analyst Summit IBM zEnterprise System A System of Systems that unifies IT for predictable service deliveryIBM zEnterprise 196 (z196) zEnterprise Unified zEnterprise BladeCenter Resource Manager Extension (zBX) The next generation of  Centralized management  Integrated IBM POWER7 mainframe technology, of heterogeneous blades, IBM System x and more performance, more resources for simplification DataPower and Smart scale, more efficient and resiliency Analytics Optimizer 6 © 2011 International Business Machines Corporation 6
  7. 7. Smarter Computing: System z Analyst Summit Marketplace momentum System z Install Base “ IBM handily claimed the server market share lead in the fourth quarter as the company rode its new mainframe and Power7TotalInstalledCapacity systems, according to Gartner. – ZDNet, 25 Feb. 2011 ” “ IBM has once again made a hit with the mainframe, as Big Blues Systems and Technology Group saw revenues increase 21 percent overall and mainframe sales rise YE03-YE10 nearly 70 percent in Q4 of 2010. – eWeek, 25 Jan. 2011 ” percent MIPS growth percent year to year revenue58 in 4Q10 – the highest growth in a decade growth in 4Q10 – the best growth in the last decade 69 7 © 2011 International Business Machines Corporation 7
  8. 8. Smarter Computing: System z Analyst Summit 2H 2010 activity Nearly 500 zEnterprise Systems shipped all over the world  Represents nearly 1.5M MIPS delivered to our customers Delivered zBX to clients in 4Q 300+ clients conducted Fit for Purpose workshops (free service from IBM) 8 © 2011 International Business Machines Corporation 8
  9. 9. Smarter Computing: System z Analyst Summit Thriving System z ecosystemSystem z Linux: Thousands of ISVs Worldwide adoption ofFastest growing investing in mainframe curriculumserver platform System z platform Installed Linux MIPS growth As of 2010: University adoption: of 42% CAGR (2004-2010)  814 schools enrolled globally,  More than 7,000 applications Shipped IFL engine volumes are supported on z/OS and 50%+ outside of US increased 34% Linux on System z  Continued flow of schools (4Q09 to 4Q10) adding curricula  3,250+ Linux applications are 64 of the top 100 System z supported on System z:  32,941 students from 17 clients are running Linux on countries have participated in  4,000+ applications are enabled Master the Mainframe contests System z on z/OS since 2005 32% of System z clients have  There were 1,200 new and  a new IFLs installed resource to connect System z upgraded applications on Linux represents 19% of the System z in 2010, with 120+ clients, partners and System z install base capacity new ISV partners added to the businesses with students and 9 platform. professionals seeking System z © 2011 International Business Machines Corporation 9 job opportunities Based on IBM market analysis
  10. 10. Smarter Computing: System z Analyst SummitSystem z future directionIBMSystem z 2011 and beyond …  DataPower XI50z  Leadership technologies Improve performance and system  New zEnterprise Statement of Direction capacity for Windows and Linux support in zBX Continue leadership on single thread performance  zEnterprise midrange follow-on Improve OS / app availability via real-time monitoring and diagnosis  zEnterprise 196 GA2 for new and Simplify management of extended hybrid capabilities zEnterprise workloads  z/OS V13  Transformational technologies Enable new capabilities with flash  Increased performance/scale memory Take advantage of connectivity tools and other industry trends10 © 2011 International Business Machines Corporation 10
  11. 11. Smarter Computing: System z Analyst SummitNew client success in 2010, growth in 2011 61 New Accounts First in Enterprise in 2010 in 2011  40% growth markets  Significant focus area  60% major markets  Increase in resources  50% running Linux  Dedicated sales teams worldwide  Majority installed Business Class  Dedicated marketing technology team  Across all industries11 © 2011 International Business Machines Corporation 11
  12. 12. Smarter Computing: System z Analyst Summit System z new customer opportunities $12B+ Total Market Opportunity  More than 6,200 companies worldwide are a strong fit for new adoption of System z with sufficient IT spend to invest in $250K+ server market SAP Oracle Tier 2 Core Infrastructure Cloud Consolidation Banking OptimizationTarget Competitive environments Regional banks that need to Enterprise clients that use Organizations that need toSegment that face complexity in support rapid growth, while SAP for core business rapidly deploy Linux-basedProfiles managing their distributed lowering risk and meeting processes that face issues solutions and offer pay-as- Oracle environment. changing regulatory around rapid workload you-go IT services for their requirements. growth, availability and users with capability for a application infrastructure large-scale dev/test complexity. environment.Solution Enterprise Linux Server System z Solution Edition Solution edition for SAP Solution Edition for Cloud for ACI, SAP, Chordiant Fixed Price Migration ComputingOfferings Enterprise Linux Server offer Smart Analytics Cloud for System z 12 © 2011 International Business Machines Corporation 12
  13. 13. Smarter Computing: System z Analyst Summit Why clients are moving to System z SAP Oracle Tier 2 Core Infrastructure Cloud Consolidation Banking OptimizationUp to 80% reduction in Flexibility in the overall Fully integrated solution Predictable monthlyTCO for Linux environment to meet across hardware, firmware, expense via pay as youenvironments compared to changing business OS and applications go modela traditional distributed requirements and peakx86 server environment demandReduce server footprints, Integrated system-wide Delivers continuous Dynamic resourcesreduce costs, simplify security to protect availability and best in expansion to handleinfrastructure customer data and lower class disaster recovery demand the cost of compliance Delivers continuous Comprehensive system availability and best in monitoring and workload class disaster recovery management for services management and billing 13 © 2011 International Business Machines Corporation 13
  14. 14. Smarter Computing: System z Analyst SummitVietin Bank: Sun consolidation to Linux on System z One of the largest banking institutions in Vietnam with 800 offices and 1,200 ATMs Transaction banking workloads increasing with business growth Consolidating Sun servers to the Enterprise Linux Server to run a new operational risk management solution Needs business innovation to remain competitive  Expansion of banking businesses  Deliver premium services to customers14 © 2011 International Business Machines Corporation 14
  15. 15. Smarter Computing: System z Analyst SummitAsian airline: Automating services with SAPon System z Large regional airline that wanted to upgrade its IT environment to achieve security and reliability as it revamps its operations Automating various processes, including infrastructure and application support services SAP deployed on System z with Power Systems as application servers, DB2 and Tivoli; IBM will test and implement the solution Needs improved operating efficiency  Varied set of applications  Gain ability to deploy new applications on the same footprint, including data warehousing, business intelligence and e-mail15 © 2011 International Business Machines Corporation 15
  16. 16. Smarter Computing: System z Analyst SummitUniversità di Bari: Innovative cloud solutions forlocal businesses University that built a system to sustain economic development in the southern Italian region of Puglia Strategy provides computing services to local community, enabling fishermen, wine growers and others to contract for services through a portal Cloud-based solution that leverages Linux on System z, IBM WebSphere and DB2, storage and Global Technology Services. Needs heavy-duty computing power at minimal cost  Multiple entities tapping into the system  Decrease time-to-market, reduce transportation costs, reduce the amount of wasted products and improve overall product quality16 © 2011 International Business Machines Corporation 16
  17. 17. PSP: The New Generation of  Processing on IBM System z  Danny Gurizzan Executive Vice President Payment Solution Providers Inc.Beyond your expectations Payment Solution Providers, Inc.
  18. 18. PSP corporate overview • Founded in 2000 • Key competitors: • Based in Toronto, Canada • Moneris • Divisions: • Chase Paymentec • Global Payment •Terminal Division  • Ingenico •POS application  •Switch Technology Division • Marketplace dynamics: •Core Switch for processing • Reliability •Gift Loyalty Solution • Security •Health/Payment Card Solution • Time to market • Price •Networking Division •Processing Division18Beyond your expectations Payment Solution Providers, Inc.
  19. 19. Business and IT challenges • Where we came from: •HP (Blade Servers with Virtual Host Server Partitions) /  Oracle on Intel solution • Where we are today: •Completing the conversion to z/OS, WebSphere and DB2 •Payment Switch Technology running on System z for our PSP  Card Services Payment Processing Division •Single point of contact for VISA, MasterCard, American  Express, INTERAC Direct Payment, and numerous Point of  Sale Terminals and Sales Solutions19Beyond your expectations Payment Solution Providers, Inc.
  20. 20. Why System z • Decision process: • With thousands of POS devices running off our switch  representing millions of transactions per month and countless  servers growing on a daily basis, what is the future of PSP? • Cost of ownership • Scalability • Reliability • Secure PCI environment • Reputation / marketplace penetration20 • IBM expertise and assistance to reach our corporate goalsBeyond your expectations Payment Solution Providers, Inc.
  21. 21. How we are using System z Technology • As a processor, we require: •Highly reliable processing of thousands transactions per  second from hundreds of thousands of concurrent end‐ users  with sub‐second response, which allows for the ability to  accept millions of transactions per day •Maintains the integrity of the transaction against all types of  failures •Intelligent, automated error processing •Industrial‐strength, high‐transaction capabilities •Scalability21Beyond your expectations Payment Solution Providers, Inc.
  22. 22. How we are using System z technology • Platform: Pre‐Mainframe                                      Mainframe22Beyond your expectations Payment Solution Providers, Inc.
  23. 23. Benefits of System z to PSP • Reliability – 24 x 7 x 365 up‐time, extremely important in  the processor arena: –Reputation as a processor demonstrating the stability of its  environment is one of the most important values. • By establishing a virtualized environment, we are achieving  cost‐reduction goals through increased utilization, while  providing high availability for business‐ critical applications • Unmatched scalability – transaction power as the  processing business is cyclical, e.g., Christmas,   Thanksgiving, Valentine’s Day23Beyond your expectations Payment Solution Providers, Inc.
  24. 24. Benefits of System z to PSP (continued) • With the System z technology, we are able to accept  thousands of transactions per second, which exceeds  many current technologies • Faster time to application development completion • PCI compliance is extremely important to us • Reduced power, operating and cooling costs24Beyond your expectations Payment Solution Providers, Inc.
  25. 25. Next steps • IBM Smart Analytics Optimizer • Integrated Cryptographic Service Facility • Representation and PSP corporate exposure  •IBM representation of the PSP Switch Technology on z  technology for worldwide banks • License Offering  or Hosting  • EMV Chip technology (Europay MasterCard Visa)25Beyond your expectations Payment Solution Providers, Inc.
  26. 26. Thank you • PSP is its own reference site for its switch  technology, which will process millions of  transactions on a daily basis26Beyond your expectations Payment Solution Providers, Inc.
  27. 27. Smarter Computing: System z Analyst Summit2011 imperatives Continue momentum of zEnterprise sales  Upgrade of existing base  Growth through new workloads Continue our investment in the platform Deliver product enhancements Increase our visibility in the market by:  Driving adoption of hybrid workloads  Extending First in Enterprise program27 © 2011 International Business Machines Corporation 27
  28. 28. Smarter Computing: System z Analyst Summit Thank you! © 2011 International Business Machines Corporation 28
  29. 29. Smarter Computing: System z Analyst SummitTrademarks and disclaimersIntel, Intel logo, Intel Inside, Intel Inside logo, Intel Centrino, Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, Itanium, and Pentium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United Statesand other countries./ Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both. Microsoft, Windows, Windows NT, and the Windows logo are trademarks of Microsoft Corporation in the United States, othercountries, or both. IT Infrastructure Library is a registered trademark of the Central Computer and Telecommunications Agency which is now part of the Office of Government Commerce. ITIL is a registered trademark, and a registeredcommunity trademark of the Office of Government Commerce, and is registered in the U.S. Patent and Trademark Office. UNIX is a registered trademark of The Open Group in the United States and other countries. Java and all Java-basedtrademarks and logos are trademarks or registered trademarks of Oracle and/or its affiliates. Other company, product, or service names may be trademarks or service marks of others. Information is provided "AS IS" without warranty of anykind.The customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer.Information concerning non-IBM products was obtained from a supplier of these products, published announcement material, or other publicly available sources and does not constitute an endorsement of such products by IBM. Sources fornon-IBM list prices and performance numbers are taken from publicly available information, including vendor announcements and vendor worldwide homepages. IBM has not tested these products and cannot confirm the accuracy ofperformance, capability, or any other claims related to non-IBM products. Questions on the capability of non-IBM products should be addressed to the supplier of those products.All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.Some information addresses anticipated future capabilities. Such information is not intended as a definitive statement of a commitment to specific levels of performance, function or delivery schedules with respect to any future products. Suchcommitments are only made in IBM product announcements. The information is presented here to communicate IBMs current investment and development activities as a good faith effort to help with our customers future planning.Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon considerations such as theamount of multiprogramming in the users job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve throughput or performanceimprovements equivalent to the ratios stated here.Prices are suggested U.S. list prices and are subject to change without notice. Starting price may not include a hard drive, operating system or other features. Contact your IBM representative or Business Partner for the most current pricing inyour geography.Photographs shown may be engineering prototypes. Changes may be incorporated in production models.© IBM Corporation 2011. All rights reserved.References in this document to IBM products or services do not imply that IBM intends to make them available in every country.Trademarks of International Business Machines Corporation in the United States, other countries, or both can be found on the World Wide Web at © 2011 International Business Machines Corporation 29