Owner: Meow Yee, Project Executive, Business Development, System z Contact: email@example.com Updated: July 16, 2010
We will share with you information on who uses mainframes today, why and how the mainframe delivers for many corporations worldwide, Inform you of the rich solution stack of business applications and IBM software middleware And share the experiences of recent new customers who selected a System z for the first time
Here is a small sample of System z customers, large and small, from around the world, It is the platform of choice for the top 25 global banks Customers come from a broad range of industries, and here we show examples from the major industries. This is not an exhaustive list of all industries. We show here several companies whose business is to deliver critical business functions to several companies, such as financial, construction business processes. El Banco de Credito del Peru proves TCO is lower with IBM System z (BCP) Finanz Informatik (FI), the newly-shaped information technology (IT) service provider of the Savings Banks Financial Group in Germany, provides IT related services to 443 savings banks, ten state banks, ten building associations and additional customers http://www-03.ibm.com/press/us/en/pressrelease/25817.wss Federal Service of Hydrometeorology and Environmental Monitoring (Russia) Russian Hydrometeorological Research Institute Digitized more than 3 million paper documents covering a period of 200 years Press releases : FNB Namibia: http://www-03.ibm.com/press/us/en/pressrelease/28896.wss HDFC Bank: http://www-03.ibm.com/press/us/en/pressrelease/27272.wss BC Card: http://www.theregister.co.uk/2010/01/05/ibm_bc_card_mainframe/
These customers use System z to support a broad range of business processes, running applications such as for Core banking Claims processing Supply chain management Patient care Tax processing
Customers selected System z to meet various critical business needs, such as To support high business growth, with an ability to scale up and down, to respond quickly to changing business demands To ensure continuous business operations, thus requiring a system that is up all the time to support 24x7 global businesses Requiring systems to provide the highest security to minimize business risk, and to ensure compliance to regulatory requirements To support your green strategy And to deploy secure cloud services within your enterprise or to your customers
Let’s illustrate with some specific customers EFiS – EDI Finance Service AG (EFiS), established in 1992 (Germany) EFiS currently works with about 50 banks and public sector and industry organizations, including German banks and German branches of Irish, Japanese and U.S. banks, processing their incoming and outgoing payment messages in industry-standard formats such as EDIFACT and SWIFT. It also handles cash ordering via the Internet and the processing of payments of cash and securities transport companies, connecting them with the German Central Bank (Deutsche Bundesbank). Additionally, it provides backup and contingency services. The E.F.I.S. application itself consists of modules primarily written with C++ and Java*, with its clearing, or processing, function developed in COBOL. EFiS: http://www.ibmsystemsmagmainframedigital.com/nxtbooks/ibmsystemsmag/mainframe_20100304/#/38 BC Card : http://www.theregister.co.uk/2010/01/05/ibm_bc_card_mainframe/ BC Card is Korea’s largest credit card company. It provides payment services for institutions, financial sector, private enterprises, and government agencies. &quot;We chose System z for its continuous operation, service quality made available through IBM's mainframe software solutions, and economic returns for the years ahead. We're aiming to become Korea's premier Global Payment Service Provider. We see System z as a critical success factor for our business objectives and service level requirements for customers,“ said, Jeongkyu Lee, Chief Information Officer at BC Card. Baldor Electric Company (USA) Manufacturer of industrial electric motors, mechanical power transmission products, drives and generators. Baldor acquired Reliance Dodge and needed to integrate two organizations rapidly. It consolidated to SAP Business Suite, hosted on 70 virtual machines running SUSE Linux® Enterprise Server on the IBM System z10™ Enterprise Class platform. Where previously Reliance Dodge relied on overnight batch processes to synchronize data on different servers, the SAP applications on z10 provide an always-up-to-date picture of current business. Baldor also migrated data from separate storage systems to the IBM System Storage™ DS8100 platform. FNB Namibia : FNB Namibia: http://www-03.ibm.com/press/us/en/pressrelease/28896.wss Bank needed system with exceptional security and business continuity, to support growth and improve services to customers. Needed to localize operations in Namibia and compliance with regulatory rqmts.
Belarusian Railways - responsible for the maintenance and operation of the 5,500km rail network in Belarus. transforms operations and reporting with SAP and z SAP app – on Power, database on z Aurora Health Care - a not-for-profit integrated health care provider, in Wisconsin, USA &quot;By moving to a service oriented architecture on System z, we have gained the ability to think more about business problems and work through business solutions. At Aurora Health Care, we no longer talk about the technical challenges; we talk about what is possible.&quot; IBM WebSphere technologies to deploy and host portal system for internal staff running on System z Bank of New Zealand Bank of NZ needed to grow, reduce emissions and costs, become more open, and seeks to become carbon-neutral by 2010 Had a datacenter with 200 Sun servers that was at capacity, consolidated to 1 System z10, on Red Hat Linux National Business Center – part of US Department of Interior - Implemented strategic enterprise cloud on z - R unning Linux and IBM WebSphere SOA, a range of IBM Tivoli products help manage mainframe virtualization, provisioning and balancing workload.
Let’s get a deeper understanding of how the System z mainframe technologies delivers better results
Let’s first start with the often used term “mainframe-like” Why do our competitors often claim their products are MF-like? and why do analysts compare new products to mainframes? For e.g. “Virtualization is the “mainframe of the 21 st century …” . Read the rest of the quotes Sources: PC World article: Virtualization is “the New Mainframe” … http://www.pcworld.com/businesscenter/article/163583/virtualization_is_the_new_mainframe_vmware_says.html InformationWeek: cloud article interview with CA http://www.informationweek.com/cloud-computing/blog/archives/2010/03/cas_omalley_clo.html The &quot;elasticity&quot; once relied upon in the mainframe is moving out into the cloud because of the cloud's favorable economics. Oracle white paper claiming “mainframe-class reliability … “: http://www.oracle.com/products/middleware/docs/tuxedo-rehosting-whitepaper.pdf (March 2009) “ Cloud taking on Mainframe-like role” … searchdatacenter.com: http://searchdatacenter.techtarget.com/news/article/0,289142,sid80_gci1270788,00.html Author: https://www.illuminata.com/?p=2149 Googlegazer.com: Cloud Computing – Is It Old Mainframe Bess in a New Dress? “… .at the end of the day, Cloud Computing is a centralized mainframe-like core with distributed nodes ..”
If you looked up “mainframe” on the web you’ll get a broad range of “definitions” …. most are not accurate Answers.com says: “A state-of-the-art computer for mission critical tasks. In the ‘ancient’ mid-1960s, all computers were mainframes, since the term referred to the main CPU cabinet. Today, it refers to a class of ultra-reliable medium and large-scale servers designed for enterprise-class and carrier-class operations.” [Click to show word ‘server’] System z is a mainframe computer [Click] It’s a server, not just any server … .. But the Most scalable … with the cost per transaction reducing with scale .. many of our customers can testify to this .. It can scale up, but did you know it can also scale out? Virtually, within one server, or physically by clustering multiple z servers [Click] It delivers extreme virtualization Up to 100% server utilization [Click] It is also a Data Hub … supporting the highest throughput for high I/O transactions It can s upport thousands of applications and input/output devices to simultaneously serve thousands of users. [Click] It delivers unmatched security - it’s the only server that has achieved security level of EAL5 [Click] It delivers unparalleled Quality of Service - It’s highly reliable : average of 30 years mean time between failure - With the highest A vailability: 99.999%* - Delivering Unparalleled resilience An industry leader in disaster recovery [Click] Leader in Green IT One z196 processor core with greater than 1.2 BIPs consumes the power of a domestic toaster. [Click] System z supports multiple operating systems Including Linux, which has been on the platform for 10 years [Click] A single System z can support mixed workloads, ranging from Linux apps,, ERP, web and Java apps, OLTP and data serving
IBM CONFIDENTIAL UNTIL ANNOUNCEMENT NOTE Talk to Penny re connections proof point
Why are customers so interested in Virtualization? Customer Pain Points Underutilized IT assets Escalating energy and space costs Linear software costs per server image Staff inefficiencies managing multiple real servers Spiraling people costs [Click] Here we explain how System z delivers better virtualization than any other platform Virtualization is architected into the system, and was pioneered by IBM over 40 years ago [Click] support in the hardware, with 10% of the circuits dedicated for virtualization There 2 levels of hypervisor capabilities: one at the firmware level, by PR/SM, and the second at the software level via zVM Each server can be partitioned into 60 logical partitions, called LPARs, with each LPAR behaving just like a single, physically separate, mainframe And each LPAR can be further virtualized into 100s of virtual servers, all with the ability to share memory, processors and other resources, physically or virtually [Click] System z Deploy virtual servers in seconds Add physical resources without taking the system down: scale out to 100s or 1000s of virtual servers inside one machine Do more with less: host more virtual servers per core and share more physical resources across all the virtual servers Policy-driven workload management Extensive built-in facilities provide life-cycle management: provisioning, monitoring, security, charge-back, backup, more… [Click] Distributed environment Average 10-20% utilization per server Limited per-core virtual server scalability Physical server sprawl is needed to scale Operational complexity increases as virtual server images grow VMware tools only support VMware hypervisor (ESX) ‘“ VM stall” the next big virtualization challenge’ – article on problems with scaling and managing virtualization that is stalling further deployment of virtualization …. http://www.networkworld.com/news/2010/060110-is-vm-stall-the-next.html?page=1
Claims doc – July 14, 2010 Reduce labor, energy, and development costs, by up to 70%, 80%, and 20% (respectively) when consolidating workloads to Linux on System z. 1 1 IBM Internal Study based on Oracle SW with Nehalem 4 core running 25% utilization Up to 90% reduction in SW costs when consolidating distributed Oracle licenses on to Linux on System z. 2 2 IBM Internal Study based on Oracle SW with Nehalem 4 core running 25% utilization The z10 EC offers huge capacity to enable large scale consolidation* that can drive up to: 80% reduction in energy consumption and costs 85% reduction in floor space 80% reduction in labor costs *Comparison is versus x86 Blade servers without virtualization, reflecting a current-day consolidation. Reductions will vary by the number and age of the x86 servers being consolidated. Consolidate 292 Sun servers to Linux on System z10 and save 95% on power and cooling, and 97% on floor space reduction. 2, 3 (1) p16 – p18
System z is the only commercial platform with EAL5 security classification. Up to 70% in security audit savings.(1) ( 1 )IBM Study with external customers. Results may vary depending on existing audit capabilities Up to 52% lower security administrative costs.(2) (2)IBM Study with external customers. Results may vary Only the System z server provides an integrated encryption infrastructure -- from the server, to the z/OS operating system, and protecting sensitive data over the internet, on databases, and tape.
We will go deeper into the System z to explain how it can deliver scalability, and green savings better than distributed platforms A System z server can be run up to 100% utilization compared to an average of 10-20% utilization for distributed servers It is architected and designed to share resources for maximum utilization across the multiple applications This includes the processors, memory, network, adapters, cryptography All of which contributes to a lower power consumption per unit of work and hence contribute to significant customer savings
System z availability has always been great …. And here is why
BT flood causes widespread chaos (April 1, 2010) Fire crews were called to the flood at the BT building on Bell Street, Lisson Grove, which also sparked an electrical fire, at around 7.30am on Wednesday morning…. caused a communications blackout lasting more than 24 hours. http://woodandvale.london24.net/woodandvale/news/story.aspx?brand=NorthLondon24&category=Newswoodandvale&tBrand=northlondon24&tCategory=newswoodandvale&itemid=WeED01%20Apr%202010%2016%3A35%3A16%3A607 Overheated servers blamed for Wikipedia outage (March 25, 2010) The problems started when Wikimedia servers overheated in the organization's European data center and shut themselves off automatically. Wikimedia then switched all its traffic to its server cluster in Florida, but the failover process, which involves changing servers' DNS entries, malfunctioned, knocking the organization's sites offline around the world. http://www.computerworld.com/s/article/9174109/Overheated_servers_blamed_for_Wikipedia_outage Google reveals reasons for data centre problems (March 9, 2010) Lack of training brought down app service …. “Although we had procedures ready for this sort of [power] outage, the on call staff was unfamiliar with them and had not trained sufficiently with the specific recovery procedure for this type of failure.&quot; http://www.techradar.com/news/internet/google-reveals-reason-behind-data-centre-problems-675651 PayPal Suffers from e-commerce outage (August 3, 2009) “ About an hour ago, PayPal started experiencing site issues that affected the ability to send and receive money. We have all hands on deck to get this fixed” said PayPal spokesman Anuj Nayar “ We are sorry for the inconvenience” Smoking power supply alarms net brokerage house The data center at online brokerage house in New Jersey handled more drama yesterday than the usual ups and downs of the market, after a smoking power supply in a blade server caused fire suppression systems to kick in and the building to be evacuated. March 27, 2009 By Timothy Prickett Morgan http://www.theregister.co.uk/2009/03/27/smokey_the_power_supply/ Customers abandon ship after major outage Customers are churning away from a shared hosting service after a three-day outage caused by a SAN failure and possible subsequent server corruption on Friday, citing horrible customer service and lost e-business opportunities. March 25, 2009 By Ray Crozier http://www.itnews.com.au/News/99546,webcentral-customers-abandon-ship-after-major-outage.aspx Cloud bursts yet again Application users (up to 113M user base) cannot access their email just weeks after the company suffered a major outage following a technical error at one of its European data centres. March 10, 2009 By Kelly Fiveash, http://www.theregister.co.uk/2009/03/10/gmail_outage/
This is a high level view of the platform competitiveness. If you sue this chart, you should spend time to discuss each main category, asking questions along the way to gauge the importance of that item to the customer. This is a summary of the main points from the “right fit for purpose” whiteboard. Refer to the sales kit that goes with that for some customer examples, if you don’t have some already.
IBM CONFIDENTIAL UNTIL ANNOUNCEMENT And now a look at the newest member of the System z family, the IBM zEnterprise System – which introduces a new dimension in computing A System of Systems World’s most scalable and fastest enterprise system One z196 processor core with greater than 1.2 BIPs consumes the power of a domestic toaster. 5.2GHz processor Ideal for large scale data and transaction serving and mission critical applications Most efficient platform for Large-scale Linux consolidation Capable of massive scale up, over 50 Billion Instructions per Second (BIPS) Unified Resource Manager Unifies management of resources, extending IBM System z® qualities of service across the infrastructure IBM director and VMControl bundles for System z Scale out to Trillions of Instructions per sec Selected IBM POWER7™ blades and IBM System x® Blades* for tens of thousands of AIX® and Linux applications High performance optimizers and appliances to accelerate time to insight and reduce cost Dedicated high performance private network
With zEnterprise, you have a wide choice of environments available to you to be able to optimize for different needs of applications For z/OS it really continues to be the ideal platform for mission critical enterprise databases, transaction processing and those applications that require the ultimate in availability, security and scalability. It still will be the gold standard if you will. With this new platform we can deliver up to 40% improvement in most z/OS workloads compared to the z10 which was already a phenomenal platform. Linux on System z will remain the most efficient platform for large scale application consolidation because of the shared everything architecture, because of the benefits of z/VM and because of the high performance related to interconnect between those applications running on Linux and other applications on Linux and z/OS and databases on z/VM. That will remain the most efficient platform. However, we all know that sometimes applications are not available or perhaps they don’t virtualize well. They’re not available on Linux on Z nor on z/OS or they don’t virtualize. In those cases, for those workloads that do fit well in a Blade environment, and that’s where you would like to AIX and Linux for application and application hosting, really extending the Z quality of service. Not the full quality of the service but approaching System z quality of service, an improvement over what you would get on a standalone distributed platform. And finally, the dedicated workload optimizers, the first of which we actually did a statement of direction in 2009. The smart analytics optimizer - we’re seeing performance improvement and beta - customer beta testing and a five to 10X and frankly we have seen over 80X and up to well above 100 fold improvement in performance complex queries because it’s all an in memory table scan of the data warehouse running on this optimizer. So it gives you - your query comes back in a determined amount of time because you scanned the entire memory of the data warehouse. And that can give substantial cost savings but also substantial improvements and time to insight.
Let’s look at the rich solutions stack that is supported on the System z
There is a comprehensive portfolio of applications and tools to meet your business needs A sample of vendors are listed here. System z supports a range of open standards – such as Java, web services and major communications protocols If asked, here are some specific numbers of apps/vendors: As of 1H 2010, 1,650 unique ISVs have enabled more than 6,300 applications on the System z platform. As of 1H 2010, 3,000+ Linux applications are supported on System z:550 new Linux applications added in 2009; another 80 applications already enabled in 2010.
Back office: Retail Product Fulfillment Wholesale Product Fulfillment Distribution Services Shared Services Business Portfolio Management Financial Management Streamlined processes, reduced redundancy, improved flexibility and real-time information flow Better product manufacturing and marketing intelligence with reduced time to market Competitive advantage from cost efficiencies, innovative products, capabilities and delivery Lower cost and risk by moving batch processing to transaction processing Front office Business and Resource Admin Marketing and Business Development Product Development Customer Management Customer Sales and Servicing Minimized complexity of multiple, distributed capture channels through integration of front end capture systems and centralized payments data. Front office: Higher profit margin, increased customer loyalty and improved conversion rates through integrated customer interaction Successful cross-sell and up-sell enabled by integrated view of all customer across the bank Enhanced customer satisfaction with seamless, uniform experiences across all channels Improved staff productivity and efficiency through analytics using detailed rules-based intelligence Integrated risk mgmt: Risk Management Security or Emergency Planning Accounting or Auditing Credit Management Financial Planning and Controls Financial Investment Management Business Practices Understand market and credit risk exposure across multiple silos to make financial and risk decisions consistent with business objectives Secure all transactions and forms of interaction, proactively prevent prohibited activities and effectively manage detected events Proactively manage potential risks resulting from events impacting operations, processes and applications Understand and manage compliance, regulatory reform, financial stability and systemic risk across a dynamic set of requirements from regulatory bodies This is also enterprise modernization.. IBM’s overall solution strategy links business and IT objectives to give you the capabilities you need to be successful. IBM and business partners provide industry solutions to help meet specific strategic objectives. These solution offerings leverage IBM and business partner industry assets and best practices and business applications. To support these solutions, IBM provides industry frameworks to support solution deployment and integration. Frameworks give you flexibility to deploy multiple solutions at the pace the makes sense for your business and allows you to reuse what you already have in your IT portfolio. This makes implementation faster and lower risk than alternative approaches. A core banking transformation program optimizes or replaces banks’ back offices “ More than 40% of banks that undertake core banking replacement will fail to achieve the business objectives used to justify the strategy.” Source: Gartner, Oct. 2008 70-80% of most core banking transformation projects have little to do with which ISV package is selected. (Think: Customization, testing, data migration, systems integration, process improvements, etc). Bottom Line: IBM’s Banking Industry Framework offers a progressive renovation (vs. “big bang”) discipline. This helps global bankers radically reduce costs & complexity while optimizing growth, efficiency & resilience (<risk). The framework provides a banking-specific software platform with… Best practices, methodology and business-specific usage patterns to lower implementation risk Banking extensions and pre-built solution accelerators to speed deployment SOA-based middleware as the flexible run-time foundation A choice of business applications from IBM business partners An approach to align technology with business needs Support for industry standards Frameworks deliver IBM market-leading software, along with pre-built solution accelerators, in an industry context to speed deployment of solutions. Accelerators include: Industry data models, best practices and scenarios, process flows, product extensions Many leading financial institutions are approaching transformation progressively, implementing solutions one project at a time that stand on their own – yet can leverage the value created in the one previously completed. But how do you do this and ensure that your solutions “fit” together? The IBM answer is an industry-oriented framework. FIS’ “Corebank” application for CDC Denmark cutting systems in half, 1/10 the number of products, reducing maintenance resources 30%, and growing customers 36% CDC - Processing co-operative for 160+ domestic banks Challenges: High level of maintenance of obsolete systems (120 in total) required 75% of all resources Member banks demanded faster, better service Unable to support product demand of customers, and Europe regulatory changes Several big customers on Temenos TCB (source: Alan J. Rainsdon) - Korea: Industrial Bank of Korea - Temenos Accelerate Revenue Growth through rapid product innovation - Temenos. Case study - Rural Servicios Informáticos, Spain - CHALLENGE: Large Korean bank (13M customers, 40M accounts) faced revenue plateau Sought to boost revenue growth by accelerating speed-to-market for new banking products, especially new deposit and loan-based offerings Needed to evolve from product- to customer-centric SOLUTION: Created a “total financial network bank” supplying a full suite of tailored financial offerings for retail and small business customers, using Temenos Core-Banking (“TCB”) product with IBM infrastructure & deployment BENEFITS: $3B in new deposits shrunk product development cycle from 64 days to <1 Launched 168 new products in 6 months, generating an immediate $120M+ in new revenue Successfully implemented branch-sharing partnership with Korean government-owned postal bank 1.7-year ROI - The challenge: Rural Servicios Informáticos (RSI) is the outsourced IT services provider for all of Spain’s rural savings banks. It needed to replace an aging legacy core banking system with one that would reduce its operational costs and provide the modern functionality and flexibility required by its member banks.
IBM offers a deep middleware stack of software: Information management Tivoli software for systems management WebSphere tools for web applications, messaging Rational tools for development Lotus collaboration software tools MDM = Master Data Management
The IBM Smart Analytics System business intelligence capability is a fully integrated turn key analytic offering combining powerful business intelligence capabilities and time tested IBM hardware designed to provide an off the shelf Business Intelligence system that hits the ground running. The system provides all the key capabilities of reporting, analysis and dashboards to enable fast answers to key business questions delivered as a cost effective, modular solution designed for rapid deployment and to grow with your business. Drive Your Best Business Outcomes with... A Single Consistent View of your Business, through... Integrated Reporting, Analysis, Scorecarding, Dashboarding, Planning and Analytic Capabilities... Pre-tuned for Optimal Performance, delivering... Rapid Time To Value & ROI The IBM Smart Analytics System business intelligence capability puts the power of analytics in the hands of business executives requiring a complete, fast time to value Business Intelligence solution allowing users to quickly extract maximum insight and value from multiple data sources and deliver a consistent view of information across all business channels getting this intelligence to the right place at the right time to maximize revenue. We illustrate with a customer, Univ of North Carolina hospital system, that was able to drive downt he cost of their healthcare delivered while improving patient info quality and availability
Source: C.Reilly/ New rapid development and testing of z/OS applications with RDz UT¹, offering a more affordable development and test environment on x86 Linux - Frees up development MIPS for production capacity New zEnterprise compilers speed application performance by exploiting new zEnterprise hardware instructions with C/C++ and PL/I compilers - Faster performance for new and existing applications -- Up to 60% performance improvement with the new C/C++ Compiler and zEnterprise systems² Multiplatform development and team collaboration for zEnterprise thru an integrated and collaborative software delivery platform Improve developer productivity, team efficiency and speed delivery of traditional and modern workloads across all zEnterprise operating environments -- Up to 20% improvement in development productivity³ [compared to not using tools: improve 15% for RDz UT, and an additional 5% with the others over an ISPF development approach (traditional MF green screen development tool] Footnotes This Program is licensed only for development and test of applications that run on IBM z/OS. The Program may not be used to run production workloads of any kind, nor more robust development workloads including without limitation production module builds, pre-production testing, stress testing, or performance testing. Results are based on an integer intensive benchmark suite compiled with z/OS C/C++ V1R9 executing on a System z10 and compared to the same benchmark compiled with z/OS C/C++ V1R12 executing on a System zEnterprise. Performance gains from other applications may vary. 3. Productivity #s b ased on UniCredit and SorforTe customer success stories available externally at: UniCredit http://www-01.ibm.com/software/success/cssdb.nsf/CS/WJBN-7K7P8B?OpenDocument&Site=default&cty=en_us SoforTe http://www-01.ibm.com/software/success/cssdb.nsf/CS/CCLE-83GV36?OpenDocument&Site=default&cty=en_us. Rational software strategy combines products, methods, assets for consistent, reliable and repeatable approach
Rational on z
New software releases from Lotus now running on Enterprise z combine the productivity boost of collaboration with enterprise grade processor speed, scalability, and reliability to help people inside and outside an organization connect and collaborate faster and more reliabily --- accelerating business processes and driving growth. Here are some highlights in the benefits: ECM integration provided by Quickr 8.5 and available on Enterprise z brings end-to-end ECM integration into Team Places creating a very familiar and quickly used front end to Enterprise Content Management. These repositories can also be accessed directly from common desktop tools like Lotus Notes, Sametime, Symphony, MS Outlook, Office, and Windows Explorer. Easy yet secure for supporting distributed teams to find the information they need fast to accelerate project completion. Presence, chat and online meetings provided by Sametime 8.5.1 -- which is now available on Enterprise z -- make it easy for people to find, reach and collaborate INSTANTLY with others – while also reducing costs (travel, telephone, plus audio- and Web-conferencing services). This translate into faster problem resolution, project and task completion for individual and teams working inside and outside the organization. Add to that the delivery of key services to multiple devices and platforms and you have a more comprehensive, flexible, and cost-effective collaborative solution for distributed teams and mobile workers than our competitors can provide. PROOF POINTS: For example, Celina Insurance [stated in an external reference] saved up to 50% on phone and staffing costs by providing these more flexible collaborative services to agents and teams across several distributed offices empowering them to deliver faster higher quality service to customers. Policy turnaround times reduced from weeks to days by integrating and automating business processes that span Celina and its agents; faster, better service to agents and their customers due to integrated systems and real-time collaboration; being “easy to do business with” secures agent loyalty; 50 percent reduction in phone calls and costs due to instant messaging option, Now providing the support for zEnterprise, organizations like Celina can make sure that these business critical collaborative capabilities are reliable 24/7 and that content is managable and easily accessible across 1000s of employees in the office and in the field. The Delaware County Bank and Trust states in an external reference that it uses team rooms and real time collaboration on a variety of devices to make teams composed of office employees and agents in the field more agile is resolving customer issues.. The faster, more accurate customer service paid for the investment in ST in just 12 months. The Delaware County Bank and Trust Company employs IBM Lotus Sametime®, Lotus Quickr™ and Lotus Notes® to share accurate information in real time. Embraced quickly, IBM collaboration solutions are facilitating fast, meaningful communication and make possible very high levels of customer service. “ Client banks absolutely love it, because they can have a conversation without interrupting their daily work.&quot; - Ken Blevins, Vice President of IT, The Delaware County Bank and Trust Company Working with IBM, The Delaware County Bank and Trust Company has discovered an innovative way of working that delivers better service faster—for multiple stakeholder groups. The value derived from IBM Lotus collaborative solutions has lead to wider use, changing the way this bank does business. “ The confidence and ease of administration of the added deployment option of zEnterprise will be compelling to customers like Delaware Cty Bank and Trust. Finally, a large federal customer purchased over $1M USD Lotus software this spring on z to extend social collaboration to 170K customers and employees an external portal for them to connect and receive quality customer service and trusted information easily and quickly. This federal agency looked to IBM to provide the solution that would they could be confident would provide around the clock reliability to their employees and customers expect along with the ease of infrastructure management. Combining Websphere Portal and Lotus Connections, running on zLinux, IBM delivered a solution they are happy with.
System z is price competitive with distributed solutions. That doesn’t mean it is less expensive. Because it offers greater function, and lower operational costs, the up front costs (total cost of acquisition) will be more. A rough guide is about 20% more compared to approximately equivalent distributed solutions. However, the costs over the life of the solution (total cost of ownership) will be less with a mainframe based solution due to lower operational costs. This chart summarizes the ‘solution editions’ offering. These are pre-configured solutions to address the specific applications listed. More are being announced all the time, so this should be considered a partial list.
Sometimes you hear folks say that mainframe skills are greying and retiring. By the time the PC is 45 years old, there will be lots of greying and retiring PC weenies too. To address the skills issue, many IBM customers have worked with IBM to approach universities and colleges about teaching mainframe courses. IBM has developed course material and makes it freely available to educational institutions. Customers agree to hire students on a full-time or internship basis. The universities and colleges use the course material to teach classes on mainframe technical topics, thus creating a new generation of mainframe technical specialists. SHARE, the North American user group, also has a special program for younger mainframers called zNextGen.
Assess and design an IT architecture to optimize for business advantage Develop a business case and high level transition plan Fit-for-purpose analysis Deliver a roadmap for an adaptable and efficient infrastructure that integrates IT and business strategy and priorities Build and run a smarter system with services for zEnterprise Migrate effectively and efficiently to zEnterprise environment Create a more cost-effective and manageable computing environment with server optimization, integration, and implementation services Effectively run and manage zEnterprise with maintenance and technical support services
IBM supports financing for projects ranging from IT equipment acquisition to IT infrastructure transformation, offering: Low rate financing - competitive low, fixed rates for IBM and non-IBM hardware, software and services IBM project financing for migration services, infrastructure solutions and business transformation projects IBM IT financing facility - structured line of credit to manage complex projects
In summary, smarter systems from IBM are: Fueled by expertise From our decades of working side by side with our clients, we know what it takes to make a technology infrastructure run optimally. More important, we know how to help clients apply technology to deliver results in practically every industry and around the world. We know how the world really works and what it takes to make the world work better. And we’re committed to applying this expertise to help our clients reinvent themselves and their industries. Built for change We understand that clients need to capitalize on the investments they’ve made and that it’s not enough to simply be ready for change when it happens. IBM has some of the best minds in the industry committed to looking at the future—to understanding the challenges that lie ahead. And throughout our labs, you’ll find technologists and distinguished engineers who are passionate about looking across our rich portfolio of assets to find ways to deliver more value. Ready for work Whether it’s for a 50-person start up or for the world’s monetary system, our products and services work. But it’s not just the code or the boxes that help ensure our clients’ success. It’s also about the ongoing service we provide. We’ve always been dedicated to our clients’ success. Our teams work tirelessly in relationship with each other and our clients to apply technology to solve the greatest challenges and create new value. Thank you for your time today.
Finally let’s look at why new customers are selecting System z for their business critical needs 94 new accounts were added worldwide in the past two years (2008-2009), across 28 countries, With about 40% of the wins in emerging market countries Most are competitive wins from distributed platforms New customer wins on z/OS ® and Linux ® on System z Dominant industries: finance/banking (particularly payments), public/government; other industries include oil and gas, media, CSI, healthcare, transportation, consumer goods Now let’s look at specific examples
Big Iron rocks. This is just one example of press articles that shoot down old myths about mainframe computing.
Retail This customer is using SAP Financials which is an application that is very resource intensive and vulnerable to several points of impact. Challenges/Issues Coordination of application across platforms is resource intensive and vulnerable to several points of impact. Too many network hops from one platform to another to get data Hardware microcode updates cannot be applied without an outage Different monitoring software tools per server type with different software process for site failovers With zEnterprise this customer will see the following value: Ensures business controls, such as security and compliance, can be achieved on a consistent basis across the applications and platforms Ability to monitor and manage a critical application end to end from a workload view Ability to make adjustments in available resources, apply maintenance, manage server availability and handle business peaks with true application insulation Better utilize assets across production and non-prod environments Insulate application development teams from Infrastructure technology Consolidation of skills thru consistent tools
Public Sector This is a German customer who wanted to build a new internet banking capability which is based on a tax receipt processing application. Challenges/Issues Extremely complex environment Majority of maintenance applied to systems manually Several single points of failure Bank presence in multiple countries across Europe and are maintaining different infrastructure based on acquisitions With zEnterprise this customer will see the following value: Simplification and standardization of the environment will allow bank to be more flexible responsive to local country banks adding functionality and growing banking revenue. A single management and policy framework across web serving, transactions and database to lower the cost of enterprise computing Mainframe Quality of Service characteristics will be extended to application servers to manage risks The dynamic resource management of the mainframe is extended to all devices within a multi-tier architecture to improve quality of services Reduce level of manual coordination, freeing up staff to train to focus on backlog of business application function development
Healthcare This customer has a home grown application and wants to create personalized insurance offering but is difficult to do on demand. Challenges/Issues Client grew through acquisitions and has multiple systems – looking to consolidate data and systems to reduce complexity and the number of systems to update Challenged to support new industry mandates Need to standardize on platforms to reduce complexity for dev/test/prod Need to reduce the time required to configure a new dev/test environment Need ability to monitor the end-to-end transaction flow to determine bottlenecks With zEnterprise this customer will see the following value: Consolidation and Simplification will provide client agility to better compete in the highly volatile and competitive healthcare industry Manage and Monitor cross actions on one ensemble Network –high speed, private, possible opportunity for reduced requirements for firewalls and encryption Allows for virtualization across multiple tier workloads Consistency /Standardization of OS/middleware/application reduces variations in test Consolidate floor space, reduced energy costs
VietinBank was looking to strengthen their operational risk management and needed a system that can easily scale to support their business growth Their business grew 35% in the past year And they needed to provide continuous banking services to their customers, across 800 offices with 1200 ATMs They purchased an Enterprise Linux Server offering As the customer testified, they picked the System z “to provide the world’s hihest levels of security while managing the world’s highest amounts of transactions” This is the First Linux on Mainframe client in Vietnam, the second mainframe in the entire country. Press release: http://finance.yahoo.com/news/VietinBank-Selects-an-IBM-prnews-3412604949.html?x=0&.v=1
Transzap consolidated 10 Intel servers to an IBM System z. Transzap delivers financial tools/services to their customers via Software-as-a-Service model. They needed to guarantee app uptime to their many customers They were experiencing triple digit growth and has grown to supporting 69,000 users from 6800 companies. &quot;Transzap processes over $80 billion in transactions but we are still a small company with fewer than 100 employees,&quot; said Peter Flanagan, CEO of Transzap. &quot;We invested in the mainframe for its ability to scale to meet our business needs at a moment's notice, and to provide our customers with a highly reliable environment with powerful virtualization capabilities.&quot; Press releases: http://www-03.ibm.com/press/us/en/pressrelease/25584.wss http://www-03.ibm.com/press/us/en/pressrelease/25585.wss
Here we see an innovative implementation by the Universita di Bari. The university developed cloud solutions – delivering powerful computing to local businesses One application is an online auction system for fishermen to use while they are out in their boats catching fish Press release: http://blogs.eweek.com/ibm-oracle/content/business_intelligence_/system_z_proving_to_be_a_big_catch_for_fishermen.html Fish Market Fishermen can use a &quot;touch screen&quot; installed on their boats to describe which kind of fish they are catching. If that fish is in demand by the market, the solution starts an electronic auction. If the bid price is below certain level the fish sale is redirected to non-profit company, e.g. soup kitchen. If the price is above the level, the solution automatically specifies the quantity to be distributed into boxes ready for shipping and distribution upon arrival. Solution is available on the zCloud for use by different fish markets (distributed on territory). Wine market Winemakers at up to 60 cooperative wineries are able to determine market demand for various types of wines by accessing the cloud computing-based systems, then package and ship wines demanding the highest price. MoniCA: Monitoraggio e Controllo Adattivo Logistics solution that tracks and collects data in real time from trucks (e.g. temperature, humidity, shocks and routes). Solution will be available on the zCloud to serve different logistics companies.
Allianz Australia was running out of power in their data center and could no longer add any more servers to their infrastructure They consolidated 60 Intel servers with Windows applications onto a single System z Realized a 90% reduction in energy consumption Saving $1m in facilities, HW and SW costs Their investment was paid back in just over a year
One of the first clients we worked with is a retail business running SAP for there financials. The data serving component is on DB2 for z/OS with application servers spread across several Power based systems. The SAP environment is one key application encompassed by a highly complex infrastructure. Some of the challenges noted were the difficulty had trying coordinate monitoring, application maintenance and testing across platforms. They noted their hardware microcode updates required outages and multiple monitoring tools were used per server type with different processes by site and location. Finally, when the team traced the path of a transaction it was discovered that it required no less than 12 hops across the network to complete a transaction. The environment with zEnterprise has the SAP data server on DB2 z/OS with application serving on Power 7 Blades integrated in a zBX and managed by the Unified Resource Manager. The benefits noted were straightforward, consistency of business controls, ability to monitor and manage the application from end to end and as well as the benefit of consolidating skills and software costs by streamlining the tool choices. In the course of the exercise the client was also able to identify benefit associated with the private network associated with zEnterprise. There is preliminary belief that the use of the private data network from the application servers to the database will be able to eliminate the requirement for encryption and firewalls, reducing the network hops from roughly 12 down to 1. This could provide the benefit of lowered cost and improve response time across an end to end transaction.
This customer provides an application that automates the tax processing of receipts for small businesses For example the bakery or the bucher send their receipts per fax and the receipt is stored in a DB2 database. After that the receipt will be virus scanned and an OCR processing follows to send the receipt values to the tax consultant of the bucher, bakery, etc. The small business can then login to the application to see the status of the receipt. In addition to System z, CICS and DB2, the application requires WebSphere on Power, Windows on Intel and there is a desire to enhance with Web Services driven by DataPower. The challenges identified in their workshop were that thier limited staff and complexity limited the ability to respond to new function requests in a timely fashion. Also the pure cost of staff to maintain a multi-platform, complex infrastructure was very challenging to the organization. The environment with zEnterprise has data and some business logic using DB2 z/OS and CICS, additional business logic and application serving resides on Power 7 Blades integrated in a zBX and managed by the Unified Resource Manager. The benefits noted a simply increase in network speed by 10x. Their data center today runs strictly across 1GB. In addition they saw value in the ability to monitor and manage the application from end to end. It was also noted that being a smaller enterprise, with staffing challenges, the packaging of zEnterprise and zBX being pre integrated and pre tested by IBM at the plant, was going to save them time and minimize human intervention errors.
BC Card selected System z to support its vision to become a premier global payments provider and needed a system that can support their need for continuous business operations, scailbility to support high business growth. BC Card: http://www.theregister.co.uk/2010/01/05/ibm_bc_card_mainframe/ &quot;We chose System z for its continuous operation, service quality made available through IBM's mainframe software solutions, and economic returns for the years ahead. We're aiming to become Korea's premier Global Payment Service Provider. We see System z as a critical success factor for our business objectives and service level requirements for customers,“ said Jeongkyu Lee, Chief Information Officer at BC Card. Past 2 years, new mainframe countries were added: Vietnam and Namibia in Africa (with FNB Namibia win) IBM installed first System z in a commercial bank in India, HDFC Bank , to support the bank’s strong business growth and deliver robust and uninterrupted service to its customers. Hoplon Infotainment installed System z for gaming. Hoplon is a Brazilian company that's developed a new kind of massive multiplayer online game called &quot;Taikodom&quot;. 2009 16 countries were: UK, Germany, Austria, Italy, USA, Canada, China, India, Singapore, Korea, Brazil, Costa Rica, Russia, Serbia, Namibia, Kuwait 10% YtY increase in new account revenue 2008 17 countries were: Australia, Brazil, China, Puerto Rico, France, Germany, India, Israel, Italy, Japan, Korea, Mexico, Philippines, Russia, Spain, USA, Vietnam Press releases : FNB Namibia: http://www-03.ibm.com/press/us/en/pressrelease/28896.wss BC Card: http://www.theregister.co.uk/2010/01/05/ibm_bc_card_mainframe/ CNNIC: http://www-03.ibm.com/press/us/en/pressrelease/27768.wss
You can start small – with a very affordable z10BC – with an upgrade path to the zEnterprise heterogeneous architecture For eg.. you can start with the Enterprise Linux Server offering – on a z10BC to consolidate your distributed servers onto z Pick on the Solution Editions to get you started: Data warehousing SAP Chordiant ACI WebSphere Application Development Security GDPS Cloud Computing IBM Global Financing has many offerings to finance equipment purchases, migration or infrastructure transformation projects
New mainframe countries added: Namibia, Vietnam IBM installs first System z in a commercial bank in India, HDFC Bank , to support the bank’s strong business growth and deliver robust and uninterrupted service to its customers. HDFC Bank press release: http://www-03.ibm.com/press/us/en/pressrelease/27272.wss Hoplon Infotainment installs System z for gaming. Hoplon is a Brazilian company that's developed a new kind of massive multiplayer online game called &quot;Taikodom&quot;. &quot;We were amazed with the power and flexibility of our new z10. Compared to the cores on our test Intel server, only half as many IFLs were needed to host the Live version of our massive game Taikodom, surpassing even the most optimistic estimates of our Lead Programmer. Web services were also 50% faster on average. Tarquinio &quot;Tarq&quot; Teles, CEO, Hoplon Infotainment SA Press releases : FNB Namibia: http://www-03.ibm.com/press/us/en/pressrelease/28896.wss HDFC Bank: http://www-03.ibm.com/press/us/en/pressrelease/27272.wss BC Card: http://www.theregister.co.uk/2010/01/05/ibm_bc_card_mainframe/ 2009 16 countries were: UK, Germany, Austria, Italy, USA, Canada, China, India, Singapore, Korea, Brazil, Costa Rica, Russia, Serbia, Namibia, Kuwait 10% YtY increase in new account revenue 2008 17 countries were: Australia, Brazil, China, Puerto Rico, France, Germany, India, Israel, Italy, Japan, Korea, Mexico, Philippines, Russia, Spain, USA, Vietnam
Let’s get a deeper understanding of how the System z mainframe technologies delivers better results
Today’s applications are spread across many platforms. Each with interconnections that introduce management and security issues. What if we could consolidate all these servers onto a zEnterprise? In this example, say we take all the green parts and consolidate those such that we can manage them from one common interface. Look at the reduction in physical interconnections, space, power, and management.
A code execution vulnerability would let a program execute arbitrary code “outside” it’s own virtual machine. This might mean code tampering with memory belonging to another virtual machine, or the hipervisor. In the worst case, the entire machine could be taken over, or taken down.
Main message – This is a systems discussion to simplify and drive down costs in the data center Discuss with data center manager, CIO, or CFO zEnterprise can consolidate the broadest set of workloads The platform with the ability to do that will be the lowest cost platform Lowest processor acquisition costs Simplified networks Lowest labor costs Lowest power consumption IBM can also deliver similar cost savings with fit for purpose storage Lowest storage costs zEnterprise enables you to go after workloads previously untouchable Any distributed workload, not just hybrids Achieve better qualities of service No competitor can match it Push Sun, HP, and Dell out of the data center
In days gone by, we would position the mainframe towards the mid-to-bottom of this chart. However, newer generations of System z, and zEnterprise, expand the range of workloads which are cost effective on z. There is no simple answer to the question “which workloads go on z” any more. Although, the case can still be made that the workloads towards the top of this chart might be more cost effective on a zBX than a z196. The faster processor of the z196 allows workloads toward the top of this chart to be more cost effective. The ability to attach and manage p and x86 blades improves the cost effectiveness of workloads towards the top of this chart too. This takes a rather technical approach to workload classification, but some would argue that even this is too simplistic. It might be better to skip this chart in favor of the previous one instead.
Heavy I/O workload configuration: IBM WebSphere ND, Monitoring Software, 4-core Intel server, database inquiries and commits Heavy Workloads configuration: IBM WebSphere ND, Monitoring Software, 8-core Intel server, with calculations and transactions Light Workloads configuration: IBM WebSphere ND, Monitoring Software, 4-core Intel server, in memory Web response
Each CEC can connect to 4 zBXs. Each zBX rack has 2 chassis. Each chassis holds 14 blades. i.e., a zBX holds 28 blades. Light: 7000/36 = 195 blades => 195/28 = 7 zBX’s Heavy: need 500/2 = 250 blades => 9 zBX’s Heavy I/O: need 2500/240 = 10.42* 32 = 334 cores = 5 zCECs
Consider the cost of assembling thousands of parts in the Intel case. Much fewer parts in zEnterprise which is already integrated.
This compares what the customer spent and is spending to run the Intel environment to what the customer could spend to run the same workloads on zEnterprise.
zEnterprise about virtual systems. We often show a 3 tiered approach… client (the presentation layer), application server, and database server. Theoretically, virtualizing the application servers, which is what VMWare is all about, should result in operational savings. Theoretically the ability to move a virtual server to another physical server should help, but real life isn’t that simple. That’s only one part of the picture.
This chart represents the business components of a large North American Bank. This chart has the actual business application function names and shows the connections between them from a function standpoint. This is your basic 3 tier architected system… not simple in reality, is it? It’s not just presentation, application and database layers. It is far more complicated than that in reality. Transition: let’s see what that would look like if it was implemented in a distributed system…
This chart represents the business components of a large North American Bank. Each one of the ovals represents a machine. A bunch of them in the top right are running websphere, for example. Using vMotion to move a virtual machine from one server to another is a small part of the puzzle. All the other issues of multiple interconnects with the security issues they present, still remain. As does the “silo” management approach. VMWare propagates the “fit for politics” approach. Transition: let’s see what happens if we virtualize most of this on a zEnterprise….
In this chart, everything, except the end user devices, has been moved into a zEnterprise. Some of it might be on zOS, some on Linux on z, some on AIX on blades, some on x86 Linux on blades, whatever makes sense. But it’s all managed centrally, with the benefits outlines at the bottom of the chart. Note that there are no more physical LANs connecting all these distributed systems. They have been replaced with virtual LANs on a private data network, for greater security and fewer points of failure. Key is that the business applications, and the programming model, are unchanged. We just moved them onto a superior infrastructure.
Co-locating the application with the DB server reduces network hops, thus improving response time, reducing latency, increasing security, and managability. Hipersockets are used for memory-to-memory speed LAN communication between Linux virtual machines and zOS. A zVM virtual LAN is used for linux to linux communitions. And the IEDN is used for z196 to zBX links. All are much faster and more secure than an ordinary wired LAN.
I would recommend using the much earlier chart that shows all the network hops involved with multi-tiered distributed systems and a z back end database. Type 2 JDBC is takes much less CPU than a type 4 access. In other words, local access is less “expensive” than remote access. However, don’t forget that some of the type 4 CPU use will be offloaded onto a zIIP if one is available. This won’t happen for type 2.
This is an example with specific measurements of co-location response time improvement. Only use this, and the next, if you really want to dig into this topic.
While we have expanded the options available for deploying Linux workloads, utilizing Linux on z can drive significant financial benefits, particularly for larger scale deployments. With the new zEnterprise, each IFL delivers significantly more performance and capacity for a substantially lower price than System z10. With the ability to consolidate the workloads of thousands of distributed servers on to a single z196, the TCA of System z is now lower than some Intel environments for certain workloads. What’s more, with this scale of consolidation you can reduce physical floor space requirements and energy consumption by up to 90 and 80% respectively. Finally, the introduction of the Unified Resource manager brings improved workload management to a Linux on System z environment, further improving its ability to deliver great service to the business.
Software costs for Linux on z are lower compared to distributed platforms because fewer licenses are required. Distributed software, including Linux on z, are usually priced “per core” (per PVU for IBM distributed software). But z required fewer cores (and PVUs) compared to other platforms.
With zEnterprise, mainframe clients have greater flexibility in deploying System z software solutions that span other system architectures. This gives users added flexibility to align business requirements with application service levels, while at the same time, take advantage of new mainframe technology that helps integrate system and workload management across the multi-tier, multi-architecture environment. It is important to note that applications deployed in a Linux-on-z/VM environment will continue to offer qualities of service that are not available with distributed systems or zEnterprise blades. A Linux-on-z/VM environment offers cost, scalability, security and workload management advantages for hosting a large number of virtualized servers. This includes the ability to share System z hardware assets, like I/O adapters, memory, and network cards with z/OS and other System z operating systems running in different partitions on the same machine. zEnterprise gives clients greater freedom to deploy multi-tier software solutions on the right technology base. This too is a key aspect of a smarter IT infrastructure.
The distributed marketplace is fixated on benchmarks. But they are typically single workload benchmarks. Z runs multiple mixed workloads, and does it very well thank you. Use this chart only if you are going to get into the next one, othewise skip it.
Try to avoid this discussion. We don’t want to get into a benchmark fight. While we might win today with z196, that won’t last. At some point in the future, some other vendor will announce, and maybe even ship, a faster chip. Our cache advantage will probably continue, but not the raw cycle speed. Your competitive sales case has to be based on something other than raw cycle speed because that is a transitory advantage.
1. Introduction to IBM System z
2. Trademarks Notes: Performance is in Internal Throughput Rate (ITR) ratio based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput that any user will experience will vary depending upon considerations such as the amount of multiprogramming in the user's 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 improvements equivalent to the performance ratios stated here. IBM hardware products are manufactured from new parts, or new and serviceable used parts. Regardless, our warranty terms apply. All customer examples cited or described in this presentation are presented as illustrations of the manner in which some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions. This publication was produced in the United States. IBM may not offer the products, services or features discussed in this document in other countries, and the information may be subject to change without notice. Consult your local IBM business contact for information on the product or services available in your area. All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. Information about non-IBM products is obtained from the manufacturers of those products or their published announcements. IBM has not tested those products and cannot confirm the performance, compatibility, or any other claims related to non-IBM products. Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products. Prices subject to change without notice. Contact your IBM representative or Business Partner for the most current pricing in your geography. * Registered trademarks of IBM Corporation The following are trademarks or registered trademarks of other companies. * All other products may be trademarks or registered trademarks of their respective companies. Adobe, the Adobe logo, PostScript, and the PostScript logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States, and/or other countries. Cell Broadband Engine is a trademark of Sony Computer Entertainment, Inc. in the United States, other countries, or both and is used under license there from. Java and all Java-based trademarks are trademarks of Sun Microsystems, Inc. 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, other countries, or both. InfiniBand is a trademark and service mark of the InfiniBand Trade Association. Intel, 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 States and other countries. UNIX is a registered trademark of The Open Group in the United States and other countries. Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both. ITIL is a registered trademark, and a registered community trademark of the Office of Government Commerce, and is registered in the U.S. Patent and Trademark Office. IT Infrastructure Library is a registered trademark of the Central Computer and Telecommunications Agency, which is now part of the Office of Government Commerce. The following are trademarks of the International Business Machines Corporation in the United States and/or other countries. Cognos* DataQuant DB2* IBM* IBM logo* Infosphere Lotus* POWER* PR/SM QMF Rational* System z* System z10 Business Class Tivoli* WebSphere* z10 zEnterprise z/OS* z/VM* z/VSE
3. Module Abstract <ul><li>This module was developed for use with an audience that is new to the mainframe. These may be new customers, business partners or even distributed platform constituents at existing IBM System z ® accounts. It will introduce key System z concepts, its strengths and value propositions that differentiate it from other platforms. It will provide a high level overview of the mainframe hardware features and functions, the IBM software stack (including middleware and tools) and the ecosystem of applications and business partners that support System z. This presentation will provide customer proof points, discuss the business benefits realized by existing System z customers and feature new customers, showing key business drivers that led customers to selecting a System z for the first time. </li></ul>
4. Table of Contents WHO uses mainframes? And WHY? WHY the mainframe delivers? IBM System z ® Solutions Stack WHY New Customers Select System z? Comparing System z to other servers
5. WHO uses mainframes? And Why?
6. Sample of Customers Large and Small from Around the World [Germany] Bank of NZ Bank of Montreal Banco Itau [Belarusian Railways] [Slovenia] [Gaming] [Brazil] [Russian Hydrometeorological Research Institute] [Online store/Brazil] Bank of China [Vietnam] IBM System z is the platform of choice for the top 25 global banks [Brazil] [Peru] [Kazakhstan] Central Bank of Russia Industrial Bank of Korea Philippines Savings Bank [India] [Manufacturer/USA] [USA] GOVERNMENTS TRANSPORTATION HOSTING PROVIDERS OTHERS BANKS OTHER FINANCIAL INST. RETAILERS HEALTHCARE UTILITIES / ENERGY
7. Workloads That Customers Run on System z <ul><li>What is a workload? </li></ul><ul><ul><li>The relationship between a group of applications and/or systems that are related across several business functions to satisfy one or more business processes. </li></ul></ul>Banking Insurance Retail Healthcare Public Sector Core Banking Internet Rate Quotes On-line Catalog Patient Care Systems Electronic IRS Wholesale Banking – Payments Policy Sales & Management (e.g. Life, Annuity, Auto) Supply Chain Management On–line Claims Submission & Payments Web based Social Security Customer Care & Insight Claims Processing Customer Analysis Tax processing
8. Customers Selected z to Meet These Critical Business Needs High business growth Continuous business operations Flexibility and speed to respond Reduce business risk Green strategy Running out of energy and space Secure Cloud Services System z HIGH SCALABILITY EXTREME VIRTUALIZATION REAL TIME ANALYTICS System z SECURITY System z EFFICIENCY System z CLOUD System z HIGH AVAILABILITY RELIABILITY
9. Why Customers Say System z Delivers High business growth Continuous business operations Reduce business risk System z HIGH SCALABILITY System z SECURITY System z HIGH AVAILABILITY RELIABILITY “ We have decided to adopt System z because of its high scalability, guaranteed high security and that it ultimately will be cheaper to manage only one machine instead of many distributed servers.” Armin Gerhardt, Chairman, EFiS Corporation &quot;We chose System z for its continuous operation, service quality made available through IBM's mainframe software solutions, and economic returns for the years ahead. We see System z as a critical success factor for our business objectives and service level requirements for customers.“ Jeongkyu Lee, Chief Information Officer at BC Card. <ul><li>“ &quot;FNB Namibia's investment in the latest, industry-leading IBM mainframe systems and software has helped us to build a dynamic core banking platform as well as meet all regulatory requirements &quot; </li></ul><ul><ul><li>Advocate Vekuii Rukoro, </li></ul></ul><ul><ul><li>Group Chief Executive Officer </li></ul></ul><ul><ul><li>FNB Namibia Holdings </li></ul></ul>“ We have 3,800 users and 7,000 customers using our SAP systems worldwide, and downtime costs us more than $100,000 an hour. Availability is king for Baldor, and the IBM System z gives us what we need.” Mark Shackelford, Director of Information Systems, Baldor
10. Why Customers Say System z Delivers Flexibility and speed to respond Green strategy Running out of energy and space EXTREME VIRTUALIZATION REAL TIME ANALYTICS System z EFFICIENCY Secure Cloud Services System z CLOUD “ ..System z was the only platform that could handle unpredictable peaks in demand without any risk of failure .” Igor Otliga, Data Centre Manager Belarusian Railways “ Deploying IBM mainframes with Red Hat Enterprise Linux to address our carbon footprint and cost savings concerns was a very big deal...” Lyle Johnston Infrastructure Architect, Bank of New Zealand “ 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 (Implemented strategic Enterprise Cloud Platform on IBM System z) &quot;By moving to a service oriented architecture on System z, we have gained the ability to think more about business problems and work through business solutions .” Aurora Health Care
11. System z has been driving tangible business benefits across multiple industries for decades 44% lower cost per credit card transaction 67% lower cost per ATM transaction 25% lower cost per megawatt hour produced 24% lower cost per hospital bed 20% lower cost per airline passenger 26% lower cost per new vehicle 25% lower cost per retail store 23% lower cost per barrel of oil All statistics are based on an analysis of actual IT spend and business performance comparing companies with greater-than-average mainframe mix versus less-than-average mainframe mix
12. But as the world becomes smarter, we will need smarter systems IBM is designing systems that enable integration and real-time decision making These systems deliver the highest possible value with the fewest resources
13. WHY the Mainframe delivers
14. What is a Mainframe? and why do analysts compare new products to mainframes? Why do our competitors often claim their products are ….…. Mainframe-Like … because System z remains the industry leader &quot;you cannot think seriously about your longer-term IT architecture without thinking equally seriously about what today's mainframe environment has to offer” “ Mainframe-class reliability, availability, performance, and scalability ..”, Oracle claims for their database. But L. Ellison agrees “IBM DB2 ® is good on mainframe, the best in the world”. Virtualization is the “ mainframe of the 21st century”, VMware says … when they announced their new product in 2009. Is Cisco's VFrame a 'virtual mainframe '? CA’s O’Malley refers to the “ Cloud taking on Mainframe -like role”
15. What is a System z? <ul><li>Leader in green technologies </li></ul><ul><li>Power and generator </li></ul><ul><li>Cooling </li></ul><ul><li>Floor space </li></ul>Server Most scalable Extreme virtualization * z/OS ® sysplex Datacenter Data Hub Up to 100% utilization Highest throughput for high I/O transactions <ul><li>Unparalleled reliability, highest availability* </li></ul><ul><li>More RAS features </li></ul><ul><li>Fewer parts </li></ul><ul><li>Capacity on Demand </li></ul>Scale up and out Multiple operating systems Linux on System z - since 2001 Unmatched security Web Servers Mixed workloads Business Intelligence Servers Application Servers LAN Servers <ul><li>Data Warehouse </li></ul><ul><li>Transaction </li></ul><ul><li>Processing </li></ul><ul><li>Web apps </li></ul><ul><li>Java apps </li></ul><ul><li>Infrastructure </li></ul><ul><li>Functions </li></ul><ul><li>ERP, CRM </li></ul><ul><li>Linux ® </li></ul><ul><li>Apps </li></ul>
16. zEnterprise: Full Value for Your IT Infrastructure Virtualization Centralize Management of virtual servers across a heterogeneous pool > 100,000 virtual servers in a single zEnterprise System Efficiency Economies of scale for Labor, software and environmental costs Reduce labor, energy, and development costs, by up to 70%, 90%, and 20% (respectively) Availability Resiliency management and fewer points of failure Centralized workload management aligned to business priorities Scalability Ability to meet massive demands from users and data Process up to a Trillion instructions per second with a single zEnterprise System Security industry leading security at the core of an integrated infrastructure Identifies potential fraud in Real Time
17. Virtualization is good <ul><li>800 Standalone images down to 400 VM hosted images is a terrific savings </li></ul><ul><ul><li>x86 to x86 migration may be considered low risk </li></ul></ul><ul><li>This process perpetuates the philosophy of Fit for Politics </li></ul><ul><ul><li>Different teams looking at x86, UNIX and mainframe operations </li></ul></ul><ul><ul><li>Are you missing opportunities to further reduce operations expense, risk and improve governance and compliance by collaborating across platforms? </li></ul></ul><ul><ul><ul><li>Redundant data </li></ul></ul></ul><ul><ul><ul><li>Different access control policies creates risk and complicates compliance </li></ul></ul></ul><ul><ul><ul><li>Missed business opportunities due to hindsight of batch transformation vs real time Insight </li></ul></ul></ul><ul><ul><ul><li>Commodity based availability doesn’t improve security and capacity management in the way that co-location of applications and data does </li></ul></ul></ul><ul><ul><ul><li>Management and integration of parts continues to be costly and time consuming </li></ul></ul></ul><ul><li>Virtualization Managers on x86 and RISC are heterogeneous at the operating system level </li></ul><ul><ul><li>Linux, UNIX, Windows </li></ul></ul><ul><li>But they are not “end to end” heterogeneous at the server level </li></ul><ul><ul><li>E.g. They don’t include System z, nor any other platform of a different architecture </li></ul></ul><ul><li>System zEnterprise introduces the first end to end Virtualization Manager – Unified Resource Management – at a hardware level </li></ul>
18. System z’s Extreme Virtualization – Built into the architecture not an “add on” feature The potential performance impact of the Linux server farm is isolated from the other Logical partitions (LPAR) LPAR – Up to 60 Logical partitions System z Deploy virtual servers in seconds $1K/server over 3 years Highly granular resource sharing (<1%) Add physical resources without taking system down, scale out to 1000s of virtual servers Do more with less : More virtual servers per core, Share more physical resources Extensive virtual server life-cycle management Hardware-enforced isolation Distributed Platforms Limited per-core virtual server scalability Physical server sprawl is needed to scale Operational complexity increases as virtual server images grow VMware tools only support VMware hypervisor (ESX) PR/SM ™ Hypervisor in firmware z/VM ® – 100s of virtual servers – Shared Memory Hardware support: 10% of circuits are used for virtualization Each LPAR is one Virtual Mainframe VIRTUALIZATION Flexibility to respond
19. IBM System z Virtualization Technology Helping Clients Save Money, Reduce Complexity, Improve Service <ul><li>Consolidate 3x or more* servers per core than virtualized x86 offerings </li></ul><ul><ul><li>Less software, energy, floor space and disaster recovery </li></ul></ul><ul><li>Manage more server images with fewer people </li></ul><ul><li>Deploy new servers and applications in seconds instead of hours or days </li></ul><ul><li>Simplify Image life cycle management </li></ul><ul><ul><li>z/VM ® provides provisioning, automation, monitoring, workload management, capacity planning, security, charge back, patching, backup, recovery, more... </li></ul></ul>“ From every perspective, running applications under Linux on System z makes sense for our organization. Performance, reliability, disaster recovery, server provisioning and cost efficiency have all seen dramatic improvements – helping us deliver better service and value to our members across the state.” – Ted Mansk, Dir. of Infrastructure Engineering and Databases at Blue Cross Blue Shield of Minnesota * Based on IBM “Friendly Bank” workload scenario
20. A Fully virtualized infrastructure enables optimization to maximize efficiency 80% 85% 90% Up to Up to Up to Reduction in energy consumption Reduction in Floor Space Reduction in SW License costs Consolidate the workloads of thousands of distributed servers in a single system System z EFFICIENCY Green strategy Running out of energy & space EXTREME VIRTUALIZATION Flexibility to respond
21. IBM System z Security Reducing risk – Protecting businesses <ul><li>Helping businesses: </li></ul><ul><li>Protect from INTRUSION </li></ul><ul><ul><li>z/OS and z/VM Integrity Statement </li></ul></ul><ul><li>Protect DATA </li></ul><ul><ul><li>Built in encryption accelerators in every server </li></ul></ul><ul><ul><li>FIPS-140-20 Level 4 certified encryption co-processors for highly secure encryption </li></ul></ul><ul><li>Ensure PRIVACY </li></ul><ul><ul><li>Access to all resources is controlled by an integrated central security manager </li></ul></ul><ul><li>Protect VIRTUAL SERVERS </li></ul><ul><ul><li>The only servers with EAL5 Common Criteria Certification for partitioning </li></ul></ul><ul><li>Respond to COMPLIANCE REGULATIONS </li></ul><ul><ul><li>Up to 70% in security audit savings </li></ul></ul>The Gold Standard for Security Reduce business risk System z SECURITY SMART IS: A national digital identity card project implemented on a country-wide scale To deliver peace of mind A leading developer and supplier of payment solutions for banks, private organizations and public institutions in Denmark, implements an IBM System z9 ® Enterprise Class server running z/OS, as part of an innovative solution that allows all Danish citizens to sign-on and perform digital signatures, in both banking and public systems, using a single shared one-time password (OTP) device. Note: Source is Ponemon Institute's annual study, 2010
22. Maximizing Utilization of Resources 1 Source: gomainframe.com Joe Clabby <ul><li>Up to 100% server utilization compared to 10-25% distributed server utilization 1 </li></ul><ul><li>Shared everything infrastructure allows for maximum utilization of resources </li></ul><ul><ul><li>CPU, Memory, Network, Adapters, Cryptography, Devices </li></ul></ul>Customer savings Underutilized distributed servers Up to 100% utilized System z server Multiple applications on one System z server Typically single application per server Lowers power consumption for each work unit High business growth z HIGH SCALABILITY z GREEN SAVINGS Green strategy Running out of energy & space 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 24:00 0 20 40 60 80 100 Mixed Workloads on System z SAP Batch Business Intelligence & Data Mining Web Serving 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% App App App App App App App App App App App App App App App App App App App App App App App App
23. IBM System z Resiliency Avoiding the risk of downtime, maximizing business responsiveness* <ul><li>In the event of a disaster, recover your system in less than an hour with zero data loss with GDPS ® /PPRC </li></ul><ul><li>99.999% availability with z/OS Parallel Sysplex ® data sharing. </li></ul><ul><li>IBM commitment to prevent unauthorized application programs, subsystems, and users from gaining access, circumventing, disabling, altering, or obtaining control of key system processes, data and resources (z/OS and z/VM System integrity statements) </li></ul><ul><li>Smart Operating systems that can monitor, provision, alert on system trends, can even help predict incidents before they become outages </li></ul><ul><li>Hardware mean time to failure that is measured in decades </li></ul>Self-healing capabilities, redundant componentry, dynamic sparing, concurrent upgrades Error checking, fault tolerance, isolation, error recovery, predictive analysis, virtualization and provisioning Storage protect keys, I/O error checking, data mirroring, huge breadth of security/ cryptography Parallel Sysplex for z/OS availability and scalability. GDPS for OS, apps, data, and disk - IBM and non-IBM platforms. Resiliency built in each layer HW SW Data Process <ul><li>* NOTE: </li></ul><ul><li>GDPS: http://www-03.ibm.com/systems/z/advantages/gdps/offerings/index.html </li></ul><ul><li>Parallel Sysplex: http://www-03.ibm.com/systems/z/advantages/pso/benefits.html </li></ul><ul><li>System Integrity http://www-03.ibm.com/systems/z/os/zos/features/racf/zos_integrity_statement.html , and http://www.vm.ibm.com/security/zvminteg.html </li></ul><ul><li>Predictive Failure: http://www-03.ibm.com/support/techdocs/atsmastr.nsf/WebIndex/WP101454 </li></ul>
24. <ul><li>High availability is needed every day…. </li></ul><ul><ul><li>Overheated servers blamed for Wikipedia outage (March 25, 2010) </li></ul></ul><ul><ul><li>Lack of training reason for Google data centre problems (March 9, 2010) </li></ul></ul><ul><ul><li>PayPal suffers from e-commerce outage (Aug 3, 1009) </li></ul></ul><ul><ul><li>Customers abandon ship after major SAN outage (March 25, 2009) </li></ul></ul><ul><ul><li>Cloud bursts yet again - users (up to 113M) cannot access their email (March 10, 2009) </li></ul></ul>System z - A Proven Solution #1 reason for choosing the mainframe is high availability* * IBM Market Insight ** Source: Gartner Dataquest, 2007 http://www.correlsense.com/cto-blog/transaction-based-application-performance-management *** ITIC 2009 Global Server Hardware & Server OS Reliability Survey; July 2009 http://itic-corp.com/blog/2009/07/itic-2009-global-server-hardware-server-os-reliability-survey-results/ IBM AIX Power Downtime - Hours Per Year*** (400 participants in 20 countries) 5 minutes Solaris Sun SPARC HP-UX Intel Itanium Microsoft Win2008 on Intel ® x86 Novell Linux on Intel x86 IBM z/OS Sysplex <ul><li>Downtime costs you … (estimated cost per hour)** </li></ul><ul><li>Only System z can deliver… </li></ul>Brokerage Operations $5.6M-$7.3M Credit Card / Sales Authorization $2.2M-$3.1M Pay-Per-View Television $67,000-$230,000 Home Shopping Television $87,000-$140,000 Home Catalog $60,000-$120,000 Airline Reservations $67,000-$112,000 Tele-Ticket Sales $56,000-$82,000 Package Shipping $24,000-$32,000 ATM Fees $12,000-$17,000
25. Platform Competitiveness <ul><li>Systems Management </li></ul><ul><ul><li>Reduction in FTEs compared to distributed platforms as workload scales </li></ul></ul><ul><ul><li>Built in security and availability features simplify business processes </li></ul></ul><ul><ul><li>Parallel Sysplex reduces workload separation and SLA responsibilities </li></ul></ul><ul><li>Business Process Integration </li></ul><ul><ul><li>Co-location of applications and data reduces latency/elapsed time and CPU consumption </li></ul></ul><ul><ul><li>Reduces the number of distributed footprints necessary to achieve business goals </li></ul></ul><ul><li>Business Resilience </li></ul><ul><ul><li>System responsibility for availability reduces RYO automation efforts and excess distributed hardware, software and services necessary to achieve SLA goals </li></ul></ul><ul><ul><li>MTBF measured in decades </li></ul></ul><ul><li>Security </li></ul><ul><ul><li>Helps customers avoid $MM’s in third party security fees </li></ul></ul><ul><ul><li>z/OS system provides application and DB security </li></ul></ul><ul><ul><li>Improved Cryptographic Hardware </li></ul></ul><ul><ul><li>Data vault for the enterprise with OLTP and Business Analytics sharing data </li></ul></ul><ul><ul><li>Improves security of distributed platforms as well through common encryption, key management, forensics, fraud prevention and authentication services. </li></ul></ul><ul><li>Application Deployment </li></ul><ul><ul><li>Cost per development seat (HW, SW and tools) on par with Microsoft development </li></ul></ul><ul><ul><ul><li>Via Solution Edition and Rational zPDT </li></ul></ul></ul><ul><ul><li>Leveraging Rational and new reduced z hardware offerings simplifies alternative development environments for less or equivalent costs of Microfocus, Tmaxsoft, Clerity and Oracle Tuxedo. </li></ul></ul><ul><ul><li>Consistent development tools across distributed platforms via Rational tools </li></ul></ul><ul><ul><li>Leverage Rational Migration Extensions to simplify migration from distributed and OEM to IBM middleware. </li></ul></ul><ul><li>Virtualization </li></ul><ul><ul><li>40+ year heritage in virtualization now demonstrated through SpecVirt results </li></ul></ul><ul><ul><li>Customers garner additional business value, beyond benchmark results. </li></ul></ul><ul><ul><li>Massive scale out and scale up within the System z </li></ul></ul><ul><li>Energy </li></ul><ul><ul><li>System z meets or exceeds environmentals to run on board aircraft and ships </li></ul></ul><ul><ul><ul><li>Air pressure, vibration, energy, cooling, ambient temperature, humidity, size </li></ul></ul></ul><ul><ul><li>Continues trend to reduce Kw/mip </li></ul></ul><ul><li>System Capacity </li></ul><ul><ul><li>Provides the largest aggregate data sharing environment </li></ul></ul><ul><ul><li>Terabytes of data available to meet OLTP and Business Analytics SLAs </li></ul></ul>Systems Management Business Process Integration Business Resilience Security Platform Compet. Application Deployment Virtualization Energy System Capacity Management Considerations for an enterprise Authentication Alert processing Firewalls Virtual Private Networks Network Bandwidth Encryption of data Audit Records/Reports Provisioning Users/Work Disaster Recovery plans Storage Management Data Transformations Application Deployment How does the Virtualization Manager improve these?
26. IBM zEnterprise System: A New Dimension in Computing <ul><li>The world’s fastest and most scalable enterprise system with unrivalled reliability, security, and manageability. </li></ul><ul><li>The industry’s most efficient platform for large scale data center simplification and consolidation. </li></ul><ul><li>A “System of Systems” , integrating IBM’s leading technologies to dramatically improve productivity of today’s multi-architecture data centers and tomorrow’s private clouds. </li></ul>Management integration Multi-platform integration Stack integration
27. zEnterprise is designed to host your critical workloads IBM z/OS ® operating system The gold standard for mission-critical enterprise applications and security-rich, scalable data serving Linux workloads on System z servers One of the most efficient platforms for large scale application consolidation IBM AIX ® and Linux operating systems on blades For new and existing blade workloads with affinity to data and applications hosted on z/OS systems Dedicated workload optimizers and appliances Single function processors operating in conjunction with workloads on IBM DB2 ® on z/OS systems Architected to take advantage of cloud deployments Extend System z capabilities and qualities of service to make clouds ready for business
28. System z Solutions Stack Middleware Service Management Operating System Virtual Platform Management Physical Platform Management Hypervisor Microprocessor Server Storage Network Applications
29. System z Solution Stack Comprehensive portfolio to meet your business needs <ul><li>Supports open standards </li></ul><ul><ul><li>Java ™ , J2EE, C/C++ </li></ul></ul><ul><ul><li>Web services </li></ul></ul><ul><ul><li>TCP-IP </li></ul></ul><ul><ul><li>Major communications protocols </li></ul></ul>Large business applications portfolio Middleware Service Management Operating System Virtual Platform Management Physical Platform Management Hypervisor Microprocessor Server Storage Network Applications Information Management on System z Portfolio of business intelligence and data warehousing tools
30. System z is the Leading Platform to Address Our Clients Requirements for Critical Banking Solutions System z ….The premier system for transformation of core banking, payments, risk management and compliance, customer care and insight Why banks choose System z TODAY.. j Banking industry framework provides robust solutions … Agility for growth Near zero downtime Highest throughput Flexibility and scalabililty Manage Risk Highest reliability, availability and security Reduce Cost Reduced infrastructure complexity Diverse applications on single platform
31. IBM System z and System z Software Delivering greater value across the portfolio Tivoli ® Access Manager Family Tivoli zSecure Manager for RACF ® z/VM Tivoli Application Management for zEnterprise Tivoli Application Resilience for zEnterprise Tivoli Asset and Financial Management for zEnterprise IBM Smart Analytics Optimizer SPSS Predictive Analytics for Linux on System z MDM Server for z/OS Lotus ® Sametime Unified Lotus Quickr for WebSphere ® Portal C/C++ Compilers Enterprise PL/I for z/OS Rational Developer for z Unit Test CICS ® Deployment Assistance for z/OS Business Monitor for z/OS
32. Improve Business Performance Real-Time Analysis for Faster Insights with a Comprehensive Portfolio of Business Intelligence Offerings on System z Pre-optimized Business Intelligence Software triples out of the box performance* * Based on IBM Laboratory Tests. Actual results may vary depending on specific environment and configuration. IBM Smart Analytics System 9600 A Broad Range of Analysis, Dashboards & Reporting IBM Smart Analytics Optimizer (4Q 2010) BETA! DB2 10 Cognos ® , InfoSphere ™ Warehouse, DataQuant ™ /QMF ™ SPSS Predictive Analytics for System z Delivering results in minutes instead of days Up to 10X improvement in performance The University of North Carolina hospital system was able to drive DOWN the cost of their healthcare while improving patient information quality and availability.
33. Rational Tools for Multiplatform Development Available for System z Under NDA until Announce Collaborative and Integrated development and lifecycle management for System z <ul><li>Rational Team Concert for System z </li></ul><ul><li>Fully integrated team collaboration uniting System z, POWER ® , and x86 development teams </li></ul><ul><li>Rational ® Developer for System z </li></ul><ul><li>Improved developer productivity </li></ul><ul><li>Rational Asset Analyzer </li></ul><ul><li>Lower maintenance costs </li></ul><ul><li>NEW! Rational Developer for </li></ul><ul><li>System z Unit Test </li></ul><ul><li>Fully compatible workstation solution for developing System z applications </li></ul>Collaborative development and deployment for all zEnterprise environments <ul><li>IBM Compilers for System z </li></ul><ul><li>Up to 60% Increase in application performance over prior generations </li></ul>
34. What is “Good Enough” for mainframe and zBX development? <ul><li>Business Problem </li></ul><ul><ul><li>Mainframe viewed by some as expensive for doing Proof of Concept applications; </li></ul></ul><ul><ul><ul><li>Cost of the middleware to develop against was too expensive </li></ul></ul></ul><ul><ul><ul><li>Cost of mainframe hardware to unit test with was too expensive </li></ul></ul></ul><ul><ul><li>Skills have been difficult to acquire; Green screen is boring </li></ul></ul><ul><li>Consistency – cross platform development tools, easy to use </li></ul><ul><ul><li>Rational Developer for System z (RDz) and Rational Team Concert </li></ul></ul><ul><ul><ul><li>Same front end tool for many platforms and many types of middleware </li></ul></ul></ul><ul><ul><ul><li>Modeling, creation and debug of cross platform code </li></ul></ul></ul><ul><ul><ul><li>Maintenance of “legacy” code using modern/common tools </li></ul></ul></ul><ul><ul><ul><li>Offload 50-80% of source code editing to desktop; frees MIPS for production </li></ul></ul></ul><ul><ul><li>Common middleware collection of run times, regardless of how you leverage z </li></ul></ul><ul><li>Accessible – new ways to get a Unit test mainframe </li></ul><ul><ul><li>Mainframe on every desktop – giving developers independence </li></ul></ul><ul><ul><li>z/VM usage and Clouds for developers – Solution Edition for Application Development </li></ul></ul><ul><ul><li>Rational Developers for z Unit Test feature (June 7, 2010) </li></ul></ul><ul><ul><ul><li>mainframe instructions on a developers PC or PC Server </li></ul></ul></ul><ul><li>Affordable – cost per developer on par with Microsoft tooling </li></ul><ul><ul><li>Priced to be approximately $15K per user over 3 years: </li></ul></ul><ul><ul><ul><li>RDz + IBM Middleware + z hardware for Unit and Function test </li></ul></ul></ul><ul><ul><li>Tools will build for System z and zBX operating systems </li></ul></ul>z/VM DB2 z/OS WebSphere IMS iLog CICS JAVA, XML Linux on x86 zPDT z/VM Test
35. <ul><li>End-to-end Enterprise Content Management (ECM) integration in Team Places with enterprise grade reliability on Linux on zEnterprise </li></ul><ul><ul><li>Work with managed and accessible business content for faster project completion </li></ul></ul><ul><li>24X7 presence, chat and online meetings supported on Linux on zEnterprise </li></ul><ul><ul><li>Reduce costs and speed decision-making with real-time collaboration </li></ul></ul><ul><li>Expanded support of client platforms and mobile devices </li></ul><ul><ul><li>Empower distributed teams and mobile employees with a unified communications and collaboration platform </li></ul></ul>Save up to 50% in phone and travel supporting flexible working environments NEW! Lotus Quickr 8.5 for WebSphere Portal NEW! Lotus Sametime 8.5.1* Lotus Connections, Lotus Notes and Domino, WebSphere Portal * Planned capability. IBM plans are subject to change Empower people, boost productivity and collaborate Deliver ROI in 12 months with faster customer service Connect and scale 150K+ employees, customers, and partners worldwide 24x7
36. <ul><li>HW, SW, and Maintenance included </li></ul><ul><ul><li>3-5 Year “Bottom-line” prices </li></ul></ul><ul><li>Targeting new System z workload opportunities </li></ul><ul><li>Pre-Approved and delegated net pricing; approved by STG, SWG, and MTS WW Execs </li></ul><ul><li>Modeled on the successful “SAP Solution Edition” </li></ul><ul><ul><li>Drove 36% growth in 2008 </li></ul></ul><ul><li>Opens door to $13.0B in opportunities </li></ul><ul><ul><li>Designed to help you close business quickly and profitably </li></ul></ul>Announcing the new System z Solution Editions: Legendary Mainframe quality, TCA within 20% of competitive UNIX alternatives* <ul><li>IBM “Stack” Price, designed to be within 20% of equivalent HP-UX Itanium based solutions at typical market discounts </li></ul><ul><li>Data Warehousing </li></ul><ul><li>Security </li></ul><ul><li>WebSphere </li></ul><ul><li>GDPS </li></ul><ul><li>Application Development </li></ul><ul><li>SAP (new lower prices) </li></ul><ul><li>ACI (existing) </li></ul><ul><li>Cloud Services Solution </li></ul><ul><li>ELS – Enterprise Linux Server </li></ul><ul><li>Enterprise Linux </li></ul>Solution Editions:
37. Academic Initiative z Growth Means Skills When Needed <ul><li>www.ibm.com/university/systemz </li></ul><ul><ul><li>Participation – 600+ schools registered, >50,000 students attended mainframe education </li></ul></ul><ul><ul><li>Courses – 25 Courses (plus more under development) & Mastery Exam Certification </li></ul></ul><ul><ul><li>zCommunity – 26 Roundtables events with Clients / Schools / ISVs / Business Partners </li></ul></ul><ul><ul><li>Resources – Access to Mainframes worldwide for teaching (6 Univ hubs) </li></ul></ul><ul><ul><li>Student MF Contests – 10 contests with 8,630 students, 1,167 schools…more planned WW </li></ul></ul><ul><ul><li>Ambassador community – 200+ z ambassadors </li></ul></ul><ul><ul><li>Faculty education – Professor Summer Seminar, workshops, faculty awards, education coupons </li></ul></ul><ul><li>Need assistance? [email_address] For a list of schools teaching the mainframe , see: http://www.ibm.com/university/systemz- Click on the &quot;Participating Schools&quot; tab </li></ul>Growing Academic Initiative Students Taught Schools in Program YE2003 YE2004 YE2005 YE2006 YE2007 2Q2008 70 24 213 10,000 294 27,000 408 44,000 49,000 450
38. IBM Global Services provides the support you need every step of the way Build and run a smarter system with services for zEnterprise Assess and design an IT architecture to optimize for business advantage
44. A public sector client improved productivity and service quality while becoming more responsive to new Internet banking capabilities for a tax receipt application
45. A healthcare client lowered complexity and the cost of development and test
46. Enterprise Linux Server Scalability for business growth Strengthen operational risk management Vietin Bank BENEFITS to Clients Comparison to Distributed Application Servers Competitive win over Sun distributed platform Vietnam Joint Stock Bank for Industry and Trade (VietinBank) is one of the largest banking institutions in Vietnam. <ul><li>&quot; The IBM System z10 Business Class ™ (z10 BC ™ ) offered us more options than competing products because the system was designed to provide the world's highest levels of security while managing the world's highest amounts of transactions. We are proud to have System z to help us achieve our objective of providing continuous banking services to our customers&quot; </li></ul><ul><ul><li>Pham Anh Tuan, </li></ul></ul><ul><ul><li>Deputy Director, VietinBank </li></ul></ul>35% business growth past year Continuous banking services to customers Across 800 offices and 1200 ATMs
47. Superior Scalability and Availability Triple digit growth Transaction volume 69,000 users 6800 Companies SaaS customers Guaranteed application uptime to SaaS customers BENEFITS to Clients Comparison to Distributed Application Servers 10 Intel Servers Transzap offers its customers a suite of financial tools delivered via Software-as-a-Service model. It operates Oildex, an ePayable system and digital data exchange. &quot;Our business and reputation rest on promising a fast, reliable and secure service to our clients,&quot; said Peter Flanagan, CEO of Transzap. &quot;We're a small company but our transaction data volumes are growing upwards of 100 percent, annually. We couldn't trust our business to any competitive product other than the IBM System z.&quot;
48. Universita di Bari Solution Edition for Cloud Computing Press release: http://www-03.ibm.com/press/us/en/pressrelease/32051.wss Innovative Cloud Solutions for Local Businesses BENEFITS to Clients Universita di Bari, established since 1924, is developing cloud-based solutions for a consortium of companies and universities from five regions of southern Italy. Fish Market Electronic fish auction for fishermen while on boats Wine Market Support for 60 wineries to determine demand and get best market price MoniCA Logistics solution tracks and collects data real-time Using cloud computing to allow multiple entities to tap into heavy-duty computing power at minimal cost and lowers the barrier to help local businesses to benefit from this technology.
49. Australia Investment paid back in just over a year Production cutover 48 hrs Zero impact to customers Press release: http://www.computerworld.com.au/article/324815/allianz_consolidates_from_60_servers_1_mainframe_48_hours Support growth with green savings BENEFITS to Clients Comparison to Distributed Allianz Australia Limited offers a wide range of insurance and risk management products and services. <ul><li>&quot;Our data centre was running out of power and we couldn't add any more servers to the infrastructure,&quot; </li></ul><ul><ul><li>Peter Rowe, </li></ul></ul><ul><ul><li>Allianz Australia infrastructure and operations head </li></ul></ul>Consolidated 60 Wintel servers 1 System z Energy use 40kVA to 4kVA (-90%) $1m Savings in facilities, hardware and software costs
50. Deployment choices toward a Fraud & Forensic Clearing House on System z <ul><li>Business Goals </li></ul><ul><ul><li>A User activity monitor for forensic and fraud prevention </li></ul></ul><ul><ul><li>Non-invasively capture activities from a wide variety of protocols and systems </li></ul></ul><ul><ul><li>Stealthfully deploy, where possible </li></ul></ul><ul><li>Intellinx in Action </li></ul><ul><ul><li>Identified thefts from Dormant bank accounts </li></ul></ul><ul><ul><li>Eliminated RYO audit tools for major Police Dept </li></ul></ul><ul><ul><li>Stopped leakage of personally identifiable information </li></ul></ul><ul><li>Bladecenter only (large financial) </li></ul><ul><ul><li>Over 200 blades to meet needs of large financial institution with the five distinct solution points of control </li></ul></ul><ul><ul><li>Weeks to configure and deploy software </li></ul></ul><ul><ul><li>Environmental and FTE costs are highest </li></ul></ul><ul><ul><li>Coordination w/ security, network and server admin teams </li></ul></ul><ul><li>Linux on System z w/ blades (Police Dept) </li></ul><ul><ul><li>Multiple Linux server instances to cover the five solution points </li></ul></ul><ul><ul><li>Common hardware reduces environmentals and FTEs </li></ul></ul><ul><ul><li>Network connections must be established to capture traffic </li></ul></ul><ul><li>z/OS zWatch edition w/ blades (Large Bank) </li></ul><ul><ul><li>Installation in under an hour, software only </li></ul></ul><ul><ul><li>zIIP and zAAP eligible for 98% of processing keeps software pricing minimal </li></ul></ul><ul><ul><li>High volume, low CPU utilization </li></ul></ul><ul><ul><li>TCA and TCO are less than alternatives </li></ul></ul><ul><ul><li>zWatch unique capability to handle network encrypted traffic </li></ul></ul>Switch 3270 / 5250 / MQ / HTTP Intellinx Sensor Analyzer Intellinx Session Analyzer Event Analyzer Backlog Events Repository Business Event Intellinx Reports MQSeries Files Host 1 2 3 4 5 Blade only Switch 3270 / 5250 / MQ / HTTP Intellinx Sensor Analyzer Intellinx Session Analyzer Queue Screen/ Message Recording Session Reconstruction REPLAY Actions Event Analyzer Backlog Events Repository Business Event Intellinx Reports MQSeries Files Host 1 2 3 4 5 z/OS Queue Screen/ Message Recording Session Reconstruction REPLAY Actions
51. Retail Client Using SAP Financials <ul><ul><li>Client Pains </li></ul></ul><ul><ul><li>Resource intensive and vulnerable to several points of impact </li></ul></ul><ul><ul><li>Too many network hops </li></ul></ul><ul><ul><li>Outages when applying microcode updates </li></ul></ul><ul><ul><li>Multiple software tools and software process for site failovers </li></ul></ul><ul><ul><li>Benefits: </li></ul></ul><ul><ul><li>Consistency of business controls </li></ul></ul><ul><ul><li>Monitor and manage applications end to end </li></ul></ul><ul><ul><li>Manage, maintain and provision resources with true application insulation </li></ul></ul><ul><ul><li>Better utilization of assets </li></ul></ul><ul><ul><li>Insulate application development teams from Infrastructure technology </li></ul></ul><ul><ul><li>Consolidation of skills thru consistent tools </li></ul></ul>The Future : DB2 for z/OS with Application Server on POWER7 Blades + Future exploration of SAP Business Warehouse Accelerator on x86 Blades
52. Public Sector Client Develops an Internet Tax Application The Future : DB2 z/OS with Application Server on POWER7 Blades in zBX, IBM WebSphere ® DataPower ® <ul><ul><li>Client Pains </li></ul></ul><ul><ul><li>Not able to respond quickly for need of new function </li></ul></ul><ul><ul><li>High cost of staff required to maintain multi-tier application </li></ul></ul><ul><ul><li>Benefits: </li></ul></ul><ul><ul><li>Network speed increased by ten times </li></ul></ul><ul><ul><li>Single workload management view across multiple platforms reducing labor overhead </li></ul></ul><ul><ul><li>Everything is pre tested, pre configured for their mission critical application </li></ul></ul>
53. Mainframes in Growth Markets China Internet Network Information Center (CNNIC) CNNIC decided to use IBM System z as the IT foundation of its Prospective Business Research Platform after stringent tests and simulations on various industry solutions. CNNIC chose IBM's mainframe technology for its superior integration capability as well as unmatched stability and security required for its IT infrastructure, to support explosive internet growth . BC Card (Korea) Business strategy is to become a global leading company in card payment and billing. Required an IT infrastructure that supports its vision for growth, a resilient and cost effective hosting system to process large transactions, while delivering high quality global payment services, customized processing services and differentiation capabilities to its member banks. FNB Namibia First mainframe in Namibia Bank needed a platform to support its growth and improve services for customers, and comply with regulatory requirements. Selected the mainframe to ensure cost effectiveness and business continuity with exceptional security and availability.
54. IBM System z – Platform of the Future Competitively priced offerings Enterprise Linux Server Solution Editions Start with the system that matches your business needs System z commitment on upward compatibility as you upgrade IBM Global Financing Offerings Equipment financing, Migration projects or Infrastructure transformation z10 ™ zEnterprise z196
55. If this is One of Your Critical Business Needs …. You’ll want to look into a System z today NEW Customers selected System z to run their mission critical processes High business growth Continuous business operations Flexibility and speed to respond Reduce business risk Green strategy Running out of energy & space Secure Cloud Services System z HIGH SCALABILITY System z EXTREME VIRTUALIZATION System z SECURITY System z GREEN SAVINGS System z CLOUD System z HIGH AVAILABILITY RELIABILITY
56. Comparing System z to other servers
57. Information technology today: Limitations <ul><li>Business processes and the applications that support them are becoming more service oriented, modular in their construction, and integrated. </li></ul><ul><li>The components of these services are implemented on a variety of architectures and hosted on heterogeneous IT infrastructures. </li></ul><ul><li>Approaches to managing these infrastructures along the lines of platform architecture boundaries cannot optimize: alignment of IT with business objectives; responsiveness to change; resource utilization; business resiliency; or overall cost of ownership. </li></ul><ul><li>We need better approach: The ability to manage the IT infrastructure and Business Application as an integrated whole. </li></ul>Information technology today is limited by the technology and architecture configurations available. DS Servers LAN Servers SSL/XML Appliances Caching Appliances Routers Switches Firewall Servers File/Print Servers Business Intelligence Servers Security/Directory Servers Web Servers Application Servers System z
58. Security issues abound <ul><li>Google “vmware code execution vulnerability” yields over 56,000 hits. </li></ul><ul><ul><li>The vast majority related to bugs resulting in security exposures in VMWare </li></ul></ul><ul><ul><li>This is but one example: www.networkworld.com/community/print/41608 </li></ul></ul><ul><li>Google “zvm code execution vulnerability” yields less than 600 hits </li></ul><ul><ul><li>None are actual security exposures in zVM </li></ul></ul><ul><ul><li>They just happen to have the search terms on the same webpage </li></ul></ul><ul><li>But both zVM and VMWare are certified at EAL level 4+ </li></ul>
59. <ul><li>System z can already deliver the lowest cost per unit of work for large scale data processing workloads </li></ul><ul><ul><li>Large scale workload consolidation </li></ul></ul><ul><ul><li>Huge I/O bandwidth </li></ul></ul><ul><ul><li>Structured management practices </li></ul></ul><ul><ul><li>Leverage z/OS and Linux on System z </li></ul></ul><ul><li>zEnterprise can extend these cost advantages across a broader range of workloads and resources </li></ul><ul><ul><li>Leverage select IBM Blade servers for workloads less suited for System z </li></ul></ul><ul><ul><ul><li>Heavy computational workloads – POWER7 </li></ul></ul></ul><ul><ul><ul><li>Light I/O workloads – System x Blades* </li></ul></ul></ul><ul><li>zEnterprise enables centralized platform and workload management across all zEnterprise resources </li></ul><ul><li>Bottom Line: Fewer pieces to buy, assemble, manage and track </li></ul>Efficiency Delivered Through Fit-for-Purpose Computing Simplify and consolidate to save BIG! * Available 1H2011
60. System z Workload Migration Characterization 2. I/O Bound – e.g. high I/O content applications 9. Protocol Serving – e.g. static HTTP, firewall, etc. 3. Mixed Low – e.g. multiple, data - intense applications or skewed OLTP, MQ 1 . Data Intensive – large working set and/or high I/O content applications 4. Mixed High – e.g. multiple, cpu - intense simple applications 8. Skewless OTLP – e.g. simple and predictable transaction processing 7. Java Heavy – e.g. cpu intensive java applications 6. Java Light – e.g. data intensive java applications 5. Database – e.g. Oracle DBMS or dynamic HTTP server 10. CPU Intensive – e.g. numerically intensive, etc. Superb Candidates for System z More Challenging for System z … But zEnterprise is a game changer
61. IBM System z offers game changing capabilities that result in significant savings of both time and money
62. “ One Box is Enough” -- zEnterprise <ul><li>Current SPARC </li></ul><ul><li>zEnterprise </li></ul>150 Sun/Solaris DB servers 1 zEnterprise z196 Linux Only <ul><li>System </li></ul><ul><li>Overview </li></ul><ul><li>Tangible </li></ul><ul><li>Benefits </li></ul><ul><li>(5 Year TCO </li></ul><ul><li>Comparison) </li></ul><ul><li>Intangible </li></ul><ul><li>Benefits </li></ul><ul><li>Improved security – no information leak during data copy between servers </li></ul><ul><li>End to End disaster recovery – simplified, single switchover </li></ul><ul><li>Improved availability – no network routers or switches </li></ul>75 HP (IA) DB servers HP Nehalem <ul><li>Prices based on US market prices, local pricing and conditions will vary </li></ul>Existing SPARC (4800 Cores) Proliant BL 460c (600 Cores) Purchase z196 (80 Cores)) Hardware (Purchase) 17,441,235 1,101,315 2,280,000 Hardware Maintenence 6,976,494 440,526 1,414,950 Software Licences 14,774,250 3,429,698 Software (S&S) 127,761,150 17,645,625 5,702,486 Total 152,178,879 33,961,716 12,827,133
63. TCA Comparison over 3 years Consolidation ratios derived from IBM internal studies. Z196 32-way performance projected from z196 8-way and z10 32-way measurements. zBX with x blades is a statement of direction only. Results may vary based on customer workload profiles/characterisitcs. Prices will vary by country. Workload Description Vitrualized on Intel 8 core Blade PowerVM on PS701 8 core Blade z/VM on zEnterprise 32 IFLs Heavy I/O Online banking workloads, each driving 22 trans per second with 1 MB I/O per trans $23,621 per workload 10 workloads per Intel blade $15,614 per workload 15 workloads per POWER7 blade $13,599 per workload 240 workloads per 32-way z/VM Heavy Workloads Online banking workloads, each driving 460 trans per second with light I/O $236,208 per workload 1 workload per Intel blade $117,108 per workload 2 workloads per POWER7 blade $141,900 per workload 23 workloads per 32-way z/VM Light Workloads Online banking workloads, each driving 22 trans per second with light I/O $6,561 per workload 36 workloads per Intel blade $6,889 per workload 34 workloads per POWER7 blade $12,088 per workload 270 workloads per 32-way z/VM
64. Offering a New Opportunity to Consolidate and Simplify Large Data Centers 36 workloads per x blade 240 workloads per 32 IFLs 2 workloads per p blade 500 heavy workloads 2500 heavy I/O Workloads 7000 light workloads 7 zBX racks 195 x blades total 9 zBX racks 250 p blades total 5 zEnterprise CPFs 334 IFL’s Best fit assignments Configuration is based on consolidation ratios derived from IBM internal studies. z196 32-way performance projected from z196 8-way and z10 32-way measurements. The zBX with x blades is a statement of direction only. Results may vary based on customer workload profiles/characteristics. An example of consolidating 10,000 distributed Workloads
65. Fewer Pieces to Buy, Assemble, Manage and Track 500 heavy workloads 2500 heavy I/O Workloads 7000 light workloads Deployed on Intel Best fit on zEnterprise 1603 Servers 21 frames 13,763 Network (parts) 223 2131 Power (KW) 419 198 Administrators 76 1603 Storage admin points 10
66. Fewer Pieces = Fewer Dollars…the Savings Add Up 500 heavy workloads 2500 heavy I/O Workloads 7000 light workloads Results may vary based on customer workload profiles/characteristics. Prices based on publicly available US list prices. Prices may vary by country 56% less 55% less 62% less 80% less 95% less 49% less Three Year Cost Of Deployed on Intel Best fit on zEnterprise Servers $314M $138M Network $3.8M $0.2M Power $5.6M $1.1M Labor $94.8M $36.4M Storage $211M $108M Total $629M $284M Total cost per workload $62K $28K
67. Using mainframes reduces total IT cost <ul><li>Mainframe centric companies had IT costs 14% lower than average </li></ul><ul><li>Distributed server centric companies had IT costs 33% higher than average </li></ul><ul><li>Actual percentage varies by industry, but mainframe centric companies’ IT costs were consistently lower than average, and distributed costs were consistently higher than average. </li></ul>
68. Imagine the possibilities….. An operational advantage you can turn into a business advantage <ul><li>Business Problem </li></ul><ul><ul><li>Data warehouse can detect trends, but not necessarily prevent fraud or upgrade transactions in real time because data is copied in bulk or batch mode </li></ul></ul><ul><li>Insight instead of Hindsight </li></ul><ul><ul><li>Opens up opportunities for real time analytics </li></ul></ul><ul><ul><ul><li>Preventing fraud </li></ul></ul></ul><ul><ul><ul><li>Making business analytic decisions faster </li></ul></ul></ul><ul><ul><li>Improved performance and lowers cost </li></ul></ul><ul><ul><li>Uses blade-based specialty processors, storage for warehouse workloads </li></ul></ul><ul><ul><li>Boosts overall query performance up to 80x </li></ul></ul><ul><ul><li>Customers could see a 40% reduction in storage utilization </li></ul></ul><ul><ul><li>Supports in-memory column store for parallel star schema queries </li></ul></ul><ul><ul><li>Uses column-based compression to minimize storage needs </li></ul></ul><ul><ul><li>Unchanged interfaces to DB2 for z/OS and thus no changes to the BI/DW applications </li></ul></ul><ul><ul><li>Provides capability to perform both transactional (OLTP) and warehousing (OLAP) type of queries in the same database management system </li></ul></ul>Blades R I I N S T C E L M A I N F R A M E Claims POS Credit/Debit Decision Support Filter Extract Move PII input DB tmp tmp result result result Traditional Operations zEnterprise ISAO or Decision Support Transform Z196 Claims POS Credit/Debit DB Cognos On Linux
69. Introducing Virtualization Managers – it’s a good thing Networked Web Serving Benchmark Winner 1 st Tier 2 nd Tier 3 rd Tier Client Client Client App Server App Server z/OS Database Server 1 st Tier 2 nd Tier 3 rd Tier Client Client Client App App erver Server z/OS Database Server App App erver Server Benchmark Winner <ul><ul><li>Reduction in capital, environmentals, FTE’s, Software licensing, simplification, risk </li></ul></ul><ul><ul><li>Introduction of vMotion will improve distributed application availability </li></ul></ul><ul><ul><li>But…..does it improve end to end solution? </li></ul></ul><ul><ul><ul><li>At the business, operations and organizational levels? </li></ul></ul></ul><ul><ul><li>Solutions are NEVER this simple </li></ul></ul>
70. End User – Hosted Client Application Server Service Platform Desktop Framework Devices Websphere Service Platform Database Connectors SQLJ Service Message Servlet Loan Applic. Bank Teller General Ledger Credit Card Processing Risk Analysis Service Service Current Accounts Banking Portal Device Apps. XML over HTTP(S) Middleware Services Batch Programs Bill Payment Database SQLJ Desktop Framework Services Personalization Service Systems & Databases MQ Currency Exchange Temp data to Electronic Data Warehouse Batch Process RMI/IIOP EJB WAS Bill Payment EJBs Authentication Server Translated to a Business Architecture
71. Application Architecture: The Complexity of Distributed <ul><li>Business Objectives </li></ul><ul><li>A bank has four basic transactions </li></ul><ul><ul><li>Credit, Debit, Transfer, Inquiry </li></ul></ul><ul><li>And they have a variety of choices for front end interface </li></ul><ul><ul><li>ATM, Branch Terminal, Kiosk, Web browser, PDA, Cellphone </li></ul></ul><ul><li>Customer uses a Bladecenter to drive multi channel transformation </li></ul><ul><li>The back end processing remains the same regardless of the presentation device </li></ul><ul><li>Fully Distributed Model (if deployed) </li></ul><ul><li>Each application becomes a cluster of server images and must be individually authenticated and managed </li></ul><ul><li>Each line is a separate network connection, requiring high bandwidth and protection </li></ul><ul><li>Data is replicated across enterprise to meet scalability </li></ul><ul><li>Customer deploys/builds automation processes to facilitate system recovery with additional software – this is not trivial and requires additional software and unique development </li></ul><ul><li>High environmental needs and full time employees to manage infrastructure </li></ul>Application Servers WebSphere ® Service Platform Database Connectors SQLJ Service Message Servlet Loan Applic. Bank Teller General Ledger Credit Card Processing Risk Analysis Service Service Connectors/Appliances Current Accounts Batch Programs Bill Payment Database SQLJ Currency Exchange Temp data to Electronic Data Warehouse Batch Process RMI/IIOP EJB WAS Bill Payment EJBs Authentication Server Mgt Mgt Mgt Mgt Mgt Mgt Mgt Mgt Mgt Mgt Mgt Mgt Mgt Management Considerations for an enterprise Authentication Alert processing Firewalls Virtual Private Networks Network Bandwidth Encryption of data Audit Records/Reports Provisioning Users/Work Disaster Recovery plans Storage Management Data Transformations Application Deployment How does the Virtualization Manager improve these?
72. Application Architecture: A Large Enterprise <ul><li>zEnterprise Combinations – reducing control points </li></ul><ul><li>Assumes the Bladecenter for the multi channel transformation </li></ul><ul><li>Can leverage Websphere on either Linux for System z or z/OS </li></ul><ul><li>The Bladecenter functionality can be migrated to zBX in the future </li></ul><ul><li>TCA and TCO advantages over distributed </li></ul><ul><li>It’s the very same programming model in a different container that provides a superior operations model </li></ul>End User – Hosted Client Application Server Service Platform Desktop Framework Devices Websphere Service Platform Database Connectors SQLJ Service Message Servlet Loan Applic. Bank Teller General Ledger Credit Card Processing Risk Analysis Service Service Connectors Current Accounts Banking Portal Device Apps. XML over HTTP(S) Middleware Services Batch Programs Bill Payment Database SQLJ Desktop Framework Services Personalization Service Systems & Databases MQ Currency Exchange Temp data to Electronic Data Warehouse Batch Process RMI/IIOP EJB WAS Bill Payment EJBs Authentication Server System zEnterprise Potential advantages of consolidating your application and data serving <ul><li>Security Fewer points of intrusion </li></ul><ul><li>Resilience Fewer Points of Failure </li></ul><ul><li>Performance Avoid Network Latency </li></ul><ul><li>Operations Fewer parts to manage </li></ul><ul><li>Environmentals Less Hardware </li></ul><ul><li>Capacity Management On Demand additions/deletions </li></ul>With IFL With zAAP & zIIP <ul><li>Utilization Efficient use of resources </li></ul><ul><li>Scalability Batch and Transaction Processing </li></ul><ul><li>Auditability Consistent identity </li></ul><ul><li>Simplification Problem Determination/diagnosis </li></ul><ul><li>Transaction Integrity Automatic recovery/rollback </li></ul><ul><li>Security Fewer points of intrusion </li></ul><ul><li>Connectivity Improved throughput </li></ul><ul><li>Simplification Problem Determination/Monitoring </li></ul><ul><li>Development Consistent, cross platform tools </li></ul>With zBX
73. Choices: Co-location drives better value than commodity virtualization <ul><li>Business Problem </li></ul><ul><ul><li>Customer building web services applications to access highly scalable and available DB2 for z/OS </li></ul></ul><ul><ul><li>Deployed WAS on distributed systems and was satisfied with current performance </li></ul></ul><ul><ul><li>Realized workload growth and end to end availability and governance would add additional complexity (e.g. redundant distributed servers, new automation tools) </li></ul></ul><ul><li>Co-location of applications and databases on z/OS completely changes operations model </li></ul><ul><ul><li>Customer moved WAS application to z/OS where it was co-located with DB2 for z/OS </li></ul></ul><ul><ul><li>Customer achieved 100% throughput improvement and a 50% reduction in DB2 utilization </li></ul></ul><ul><li>Value to customer: </li></ul><ul><ul><li>More consolidation possibilities on z/OS </li></ul></ul><ul><ul><li>Co-location of app and data reduces operational complexity </li></ul></ul><ul><ul><ul><li>Debug, Business Resilience, security, automation, capacity mgt </li></ul></ul></ul><ul><ul><li>Reduction in CPU utilization reduces MW licensing costs </li></ul></ul>Management Considerations for an enterprise Authentication Alert processing Firewalls Virtual Private Networks Network Bandwidth Encryption of data Audit Records/Reports Provisioning Users/Work Disaster Recovery plans Storage Management Data Transformations Application Deployment How does the Virtualization Manager improve these?
74. Proximity to data <ul><li>Benefits of Type 2 Local DB2 access vs Remote Type 4 access </li></ul><ul><ul><li>A 50% reduction in average end (Web) user response times </li></ul></ul><ul><ul><li>Overall CPU requirement was 50% less than the remote (two z/OS) system implementation </li></ul></ul>Web request serviced here Servlet invokes business process EJB on Distributed Business logic EJBs executed here EJB SQL calls made here – JDBC Type 4 connection issues DRDA SQL request to DB2 on z/OS Web request serviced here Servlet invokes business process EJB on z/OS Business logic EJBs executed here EJB SQL calls made here – JDBC Type 2 connection makes local access to DB2 on z/OS Distributed
75. Proximity to data – online banking workload analysis Co-located application and DB server Distributed application and DB servers Database Server Database Database Server Server Application Server Application Application Server Server Database Server Database Server Application Server Application Server Message Queue 2ms per IO 10ms (simple transaction) 1ms 3ms per SQL stmt Process Request Response 5 SQL stmts: 3 read 2 write Assumed Message Flow Database Server Database Server Application Server Application Server Message Queue 1Gb Ethernet 2ms per IO 10ms 1ms 3ms per SQL 2ms per IO 10ms (simple transaction) 1ms 3ms per SQL 2ms per interaction Request <ul><li>Evaluation of the application and data on multiple physical servers: </li></ul><ul><ul><li>Overall transaction throughput (at constant response time) would be degraded 33%, requiring more capacity than originally planned </li></ul></ul><ul><ul><li>A significant amount of memory was required to hold in-flight work, comprising 80% of each server’s cost </li></ul></ul>
76. Proximity to data – online banking workload analysis Co-located application and DB server Distributed application and DB servers Database Server Database Database Server Server Application Server Application Application Server Server Database Server Database Server Application Server Application Server Message Queue 2ms per IO 10ms (simple transaction) 1ms 3ms per SQL stmt Process Request Response 5 SQL stmts: 3 read 2 write Assumed Message Flow Database Server Database Server Application Server Application Server Message Queue 1Gb Ethernet 2ms per IO 10ms 1ms 3ms per SQL 2ms per IO 10ms (simple transaction) 2ms 3ms per SQL 2ms per interaction Request <ul><li>Prior chart might be best case scenario. Add “non-functional” requirements: </li></ul><ul><ul><li>Additional authentication flows – more interconnect and i/o required </li></ul></ul><ul><ul><li>Audit complexity may increase to correlate access to personally identifiable data </li></ul></ul><ul><ul><li>Business Resilience solutions may be more complex; Additional environmental costs </li></ul></ul><ul><ul><li>Storage management costs across the workflow </li></ul></ul>SAF SAF Security Server Audit Logs Audit Logs Audit Logs PARALLEL SYSPLEX MULTI SYSTEM CLUSTER 1ms DFSMS Backup 2ms DFSMS Management Considerations for an enterprise Authentication Alert processing Firewalls Virtual Private Networks Network Bandwidth Encryption of data Audit Records/Reports Provisioning Users/Work Disaster Recovery plans Storage Management Data Transformations Application Deployment How does the Virtualization Manager improve these?
77. The Most Efficient Platform for Large Scale Consolidation: Linux on zEnterprise <ul><li>Lower acquisition costs of hardware and software vs. distributed servers* </li></ul><ul><li>Less than $1.00/day per virtual server (TCA)* </li></ul><ul><li>Reduce floor space by up to 90% compared to distributed servers* </li></ul><ul><li>Reduce energy consumption by up to 80% compared to distributed servers* </li></ul><ul><li>Consolidate 40 Oracle server cores to 2 Linux Cores on zEnterprise </li></ul>* Distributed server comparison is based on IBM cost modeling of Linux on zEnterprise vs. alternative distributed servers. Given there are multiple factors in this analysis such as utilization rates, application type and local pricing, etc.; savings may vary by user 77% savings 37% savings
78. Consolidate More and Spend Less with IBM zEnterprise Increasing the Economic Appeal of Linux on z/VM Server Consolidation and IT Optimization <ul><li>zEnterprise delivers an even greater level of server consolidation density and scalability with Linux and z/VM that sets a new standard for TCO and service management </li></ul><ul><li>Solution Edition pricing for very large consolidations starts at under $1,000 per virtual server for 3 years – that’s less than $1 per day ! (1) </li></ul>(1) Calculations based on specific solution offering components using IBM and client experiences. Results can vary. Spend even less on software Save even more on floor space and energy costs Increase staff productivity even more Run more virtual servers per core z10 z196 IFL Core IFL Core Configure more cores per System z10 zEnterprise
79. zEnterprise: Full v alue for your multi-tier, multi-architecture strategy Distributed Systems Select IBM Blades z/OS TCA Focus TCO Focus Linux on z/VM <ul><li>Silo managed islands of computing </li></ul><ul><li>Less dynamic </li></ul><ul><li>Minimal resource sharing </li></ul>LOWER HIGHER Scalability, Security, Dynamic Workload Management <ul><li>Expanded ISV support for enterprise applications </li></ul><ul><li>Targeted for applications that interact with mainframe data and transactions </li></ul><ul><li>Provisioned and managed by System z </li></ul><ul><li>Extreme scalability and performance for transaction processing and data serving </li></ul><ul><li>High availability and cross-system scalability with Parallel Sysplex and GDPS </li></ul><ul><li>Leading policy-based capacity provisioning and workload management </li></ul><ul><li>Pervasive, high-performance security support </li></ul><ul><li>Extreme consolidation of servers and networking </li></ul><ul><li>Superior levels of server provisioning, monitoring, and workload management </li></ul><ul><li>Industry-best virtual I/O bandwidth and reliability </li></ul><ul><li>Fewer components and reduced complexity </li></ul><ul><li>System z qualities of dynamic resource management and capacity-on-demand </li></ul><ul><li>Seamless integration with z/OS backup and DR </li></ul>
80. Beware of Benchmarks <ul><li>40 Miles/gallon </li></ul><ul><li>7 cubic feet of storage </li></ul><ul><li>4 passenger </li></ul><ul><li>$15,000 </li></ul><ul><li>10 Miles/gallon </li></ul><ul><li>7 cubic feet of storage </li></ul><ul><li>2 passenger </li></ul><ul><li>$55,000 </li></ul><ul><li>Problem 1: Which is cheaper to commute to work with? </li></ul><ul><li>Problem 2: You want to move your house: </li></ul><ul><ul><li>How many vehicles and trips will be required to move? </li></ul></ul><ul><ul><li>Are extensions, such as the trailer, valuable? </li></ul></ul><ul><ul><li>How do you get the Grand Piano moved? What if it rains? </li></ul></ul><ul><li>They aren’t mutually exclusive either: </li></ul><ul><ul><li>The family rides in the car, the furniture rides in the truck </li></ul></ul>Several compartments Bladecenter + System z = zEnterprise = Enterprise Solution
81. z196 in the top tier of Industry Standard Benchmarks <ul><li>SPECint </li></ul><ul><ul><li>Moved to SPECcpu 2006 </li></ul></ul><ul><ul><li>Compiler (XL C/C++) work on target: </li></ul></ul><ul><ul><ul><li>5-7% performance per release </li></ul></ul></ul><ul><ul><ul><li>1.22X across 1.10, 1.11, 1.12 </li></ul></ul></ul><ul><ul><li>Outlook: z196 in lead pack </li></ul></ul><ul><ul><ul><li>Using XL C/C++ 1.12, at 5.2 GHz </li></ul></ul></ul><ul><ul><ul><li>Single-thread, no auto-parallel </li></ul></ul></ul><ul><ul><ul><li>Expected to be #1 or #2 with Power 7 being the other platform </li></ul></ul></ul><ul><li>Java </li></ul><ul><ul><li>SPECjvm </li></ul></ul><ul><ul><ul><li>1.50-1.55X z10 1.1-1.2X Nehalem (more uni-like) </li></ul></ul></ul><ul><ul><li>SPECjbb (meant to be run SMP) </li></ul></ul><ul><ul><ul><li>1.65X z10 1.4X Nehalem ( excluding benchmark specials) </li></ul></ul></ul><ul><ul><li>Measurements at 4.85 GHz, no exploitation of new instructions </li></ul></ul><ul><ul><li>With GA hardware running at 5.2 GHz, this is expected to beat Westmere as well </li></ul></ul><ul><li>Rate: Do Not Publish. Only verbal discussions via NDA at customer request </li></ul><ul><li>While our rates are top notch, price performance is not. We are a multi-workload platform. These are uni dimensional benchmarks. </li></ul><ul><li>They show that our ISB ratio’s are similar to our LSPR ratio’s. They also provide a point in time comparison to distributed. </li></ul><ul><li>However, we are not in a benchmark war, as a value platform. </li></ul><ul><li>Nor do we want to downplay benchmarking because it does provide Power7 a competitive advantage. </li></ul><ul><li>A process will be developed to make this information available to Regional specialists for VERBAL disclosure to clients. </li></ul><ul><li>Responsible: Jim Porell </li></ul><ul><li>Final measurements are underway. Goal to complete for GA. </li></ul>
82. Summary of Competitive perspective <ul><li>zEnterprise takes a solution focus managing virtual machines across System z and Bladecenters </li></ul><ul><ul><li>Alternative VMs focus on a single server type or a portion of an end to end solution </li></ul></ul><ul><li>Collaboration between System z and Blades provides an operational advantage by: </li></ul><ul><ul><li>Sharing data between servers and therefore reducing data volumes by 40-60% </li></ul></ul><ul><ul><li>Leveraging real time data access to provide Insight versus the hindsight provided by batch data moves between alternative server implementations </li></ul></ul><ul><ul><li>Simplifying the provisioning of data toward specific workloads </li></ul></ul><ul><ul><li>Reduction of risk and simplification of governance and compliance as a shared operations model to </li></ul></ul><ul><ul><ul><li>avoid the pitfalls of separate security domains used in distributed environments </li></ul></ul></ul><ul><ul><ul><li>reduce the number of security intrusion points </li></ul></ul></ul><ul><ul><ul><li>reduce the number of points of failure and leverage components with a longer mean time between failure than a pure distributed environment. </li></ul></ul></ul><ul><li>Linux for System z virtual servers are as low as $1000 per server over 3 years or roughly $1/day </li></ul><ul><ul><li>These server images will benefit from legendary System z availability, security and systems management </li></ul></ul><ul><li>Customers that have moved distributed Web Service apps that access z/OS data onto z/OS have experienced a number of benefits: </li></ul><ul><ul><li>100% improvement in performance by leveraging in memory data instead of network attached </li></ul></ul><ul><ul><li>50% reduction in DB2 for z/OS processing as it reduces network attached connection management </li></ul></ul><ul><ul><li>Improvements in availability through the reduction of points of failure and built in Parallel Sysplex automation </li></ul></ul><ul><ul><li>Reduced risk and simplified compliance as a single administrative domain is in place </li></ul></ul><ul><ul><li>Significant savings can also be seen by moving web applications to Linux on z and using hipersockets to access DB2 data on z/OS </li></ul></ul>
83. Summary of Competitive Perspective <ul><li>Businesses can add capacity to existing System z and Bladecenter servers without the need to repartition application workloads. </li></ul><ul><ul><li>Processing capacity can be added or provisioned on demand to cross platform workloads via common hardware management console. </li></ul></ul><ul><ul><ul><li>This can be far simpler and faster to deploy than adding new servers to a distributed processing cluster. </li></ul></ul></ul><ul><li>Redundant and spare components are available in the zEnterprise on both the System z and Bladecenter processors. In addition, many change management processes may be implemented while workloads continue to operate. </li></ul><ul><ul><li>This reduces the number of planned and unplanned outages that might be experienced in a purely distributed server environment. </li></ul></ul><ul><ul><li>Call home capabilities of System z apply to zBX to improve overall availability. </li></ul></ul><ul><ul><li>Consultant studies demonstrate that reducing down time will decrease financial losses due to outages. Financial impact varies by industry and length of outage. </li></ul></ul><ul><li>Efficiency </li></ul><ul><ul><li>Up to 80% reduction in energy and floor space compared to distributed systems </li></ul></ul><ul><ul><li>Up to 70% reduction in labor compared to distributed systems </li></ul></ul>