The document discusses how virtualization can help organizations achieve maximum value through improved power efficiency, reliability, and more integrated systems. It notes that digital data is growing exponentially and many companies will need to modify their data centers to handle this growth. Virtualization can help organizations reduce costs, improve service delivery, and better manage risk by consolidating servers, storage, and networking infrastructure. When combined with integrated service management tools, virtualization provides improved visibility, control, and automation of IT resources.

1. IT Optimisation & Virtualisation: Achieving maximum value through power, reliability & better integrated systems David Ball Systems Architect, IBM Systems and Technology Group

2. Infrastructure needs to get Smarter Digital data is projected to grow tenfold from 2007 to 2011 Of companies in the global 1,000 will have to modify their data centers to meet increased power and cooling requirements of CIO’s want to improve the way they use and manage their data Of digital data growth will be “unstructured” and requiring significant effort to “understand” and analyze 70% on average is spent on maintaining current IT infrastructures versus adding new capabilities 80% 70¢ per $1 10x Devices will be connected to the internet by 2011 1 trillion of information is exchanged over the internet every second 6 terabytes 70% 78% IT Infrastructure is under pressure It’s not built for what’s coming

3. Poll Question Have you already started down the virtualisation path? Answer Yes OR No ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

4. Poll Question Have you achieved the benefits you expected from virtualising your environment? Answer Yes OR No ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?

5. IBM 2009 CIO Survey Results CIOs select their ten most important visionary plan elements 76% of CIOs cited “implementing a virtualised computing environment” as part of their visionary plans to enhance competitiveness

6. Is this familiar? Source: IBM client engagement experience How can I see everything in one place? Who should be paying for this? What’s going on with this system? What if this breaks? Who is accessing this? Did someone breach this?

7. How do I make THIS run there? Source: IBM client engagement experience Hybrid Private/ Internal Public/ External The Cloud Off Premises / Third Party On Premises / Internal

8. IBM develops hypervisor that would become VM on the mainframe IBM announces first machines to do physical partitioning IBM announces LPAR on the mainframe IBM announces LPAR on POWER™ 1967 1973 1987 IBM intro’s POWER Hypervisor ™ for System p and System i IBM announces PowerVM 2007 2004 1999 2008 IBM announces POWER6™, the first UNIX servers with Live Partition Mobility IBM’s history of virtualization leadership

9. Client requirements IBM Consolidation and Virtualization solutions can address Reduce costs & complexity. Eliminate sprawl helping to reduce operating costs and increase asset utilization. Help enable rapid provisioning of your server. Virtualize for more dynamic deployment. Dynamically adapt. Unify your storage into a single reservoir of capacity. Change storage and move data without interrupting applications. Manage storage in a consistent manner from a central point. Improve service delivery. Dynamically deliver resources where needed most. Help increase application availability and improve application performance. Easily deploy applications as software appliances. Centralize client management. Centrally manage client images to lower support costs and improve security. Deploy thin client devices to lower acquisition costs. Consolidate desktop images to reduce storage. Get anywhere, anytime access. Visualize. Control. Automate. Manage physical and virtual worlds from one place. Manage the lifecycle of virtual systems and images. Automate to assure quality and reduce costs. Application Virtualization Networking for Virtualization Server Virtualization Storage Virtualization Client Virtualization Service Management

10. Virtualisation with Integrated Service Management for improved business agility “ Integrated Service Management provides clients with the visibility, control and automation of their virtualised environments resulting in higher quality delivery of business services, at a fraction of the cost.” – Doug Brown, Vice President, Marketing Integrated Service Management and Tivoli Software Manage Workloads Automate Processes Optimise Delivery Server Consolidate Resources Storage Network Agility Consolidate Resources hypervisor choice Manage Workloads single “pane of glass” Automate Processes Tivoli integration Optimize Delivery pre-integrated offerings

11. Agility Virtualisation helps deliver improved agility Retail Example The marketing department at a major retailer is rolling out a major marketing campaign culminating in a new television advertisement at the World Cup. This campaign requires a provisioned web commerce site to handle increased customer transaction volume Reaction Time Start 6 months prior to launch Start 2 months prior to launch 2 hours after launch 2 minutes after launch 0 minutes after launch Consolidate Resources Manage Workloads Automate Processes Optimise Delivery Originally required PHYSICAL server, storage and network equipment be procured (CapEx) through purchasing with associated install, configure, test by IT Staff Web commerce server can be provisioned using available capacity on IT infrastructure with associated configuration and testing by IT Staff Unanticipated traffic is detected by IT staff day of event which determines that the increased traffic is not due to a security attack (eg DDOS attack) but rather from legitimate customer traffic, where by the IT staff is able to manage the IT infrastructure using a “single pane of glass” to reallocate server capacity to handle the increased customer traffic Unanticipated traffic is detected by the IT systems on the day of the event and quickly determines that the increased traffic is not due to a security attack (eg DDOS attack) but rather from legitimate customer traffic, and the IT systems are able to “sense & respond” to automatically reallocate server capacity to handle Traffic increase is anticipated and capacity is reserved based on marketing department proactively scheduling necessary IT resources to coincide with product launch and advertisement.

12. Consolidate Resources BENEFITS : Improved IT efficiency Reducing complexity by reducing the number of physical servers, storage, and network devices Improving resource utilisation that helps reduce electricity consumption due to idling servers (utilisation), storage (virtualising and de-duplication) and network (bandwidth compression) devices Reducing floor space requirements

13. Immediate impact of consolidation on power consumption Example 50% lost to general cooling, power conversion, UPS, etc 70% lost to memory, disk, planer, PCI, other 80% lost to idle Power Consumption Facility Equipment Processor 80% utilization Processor Equipment Facility Virtualization 4 X Savings BEFORE AFTER

14. Consolidate Resources Needs Improved IT efficiency and utilisation Reducing complexity by reducing the number of physical servers, storage, and network devices Improving resource utilisation that helps reduce electricity consumption due to idling servers (utilisation), storage (virtualising and de-duplication) and network (bandwidth compression) devices Reducing floor space requirements Results Gruppo FIAT Italy: Feb 2009 Massive consolidation, minimal impact across a full range of IBM servers, including System z. Met aggressive targets for physical consolidation (2:1), logical consolidation (1.6:1), and standardisation. Improved response times by 30%, storage capacity by 50 TB. JR Thompson gains a 30% productivity boost by virtualising their IT infrastructure by consolidating on IBM BladeCenter using IBM Director Lead Offerings Virtualization optimized servers & storage: IBM System x & IBM BladeCenter with choice of VMware, Hyper-V, KVM IBM System p with PowerVM, IBM System z with z/VM and LPARs IBM XIV Storage IBM Systems Director IBM Tivoli Storage Productivity Center IBM Proventia virtualized network security WebSphere Application Server DB2 IBM assessments

15. Manage Workloads BENEFITS : Provides a simplified and integrated single pane of glass to manage the existing underlying logical complexity in a cohesive, integrated systems approach Helps address device sprawl (physical and virtual) FEATURES: Decouple complexity from scale Share resources optimally Automate workload management Incorporate High Availability (HA) and Disaster Recovery (DR) “ Virtualization without good management is more dangerous than not using virtualization in the first place” – Gartner Source: http://www.gartner.com/it/page.jsp?id=505040

16. Managing virtualised workloads requires new capabilities Using the right virtualisation technologies is a critical success factor in a virtualisation or consolidation project Management of virtualised systems is a critical success factor for continued operations - Physical and virtual resources - Ability for management tools to interoperate - Enabling for service management Source: IDC Worldwide Server Market - 2009 “… the days of focusing on physical system management are now gone . Upper-level management wants greater IT operational efficiencies. CIOs require resources to be virtualised to increase resource utilisation and simplify management, and that data center energy consumption be reduced .” - Clabby Analytics, March 2009 “ Growing use of virtualisation solutions … has started to slow the rate of growth in physical server bases. But large-scale virtualisation creates new sets of manageability and service quality challenges .” – International Technology Group, September 2008

17. Manage Workloads Needs Improved IT staff productivity Simplified and integrated systems management of IT resources Address increasing complexity and interdependency resulting from growth of physical and virtual resources (sprawl). Results International Trade (INTTRA): Aug 2009 Supports the global supply chain with a world-class IT infrastructure from IBM; “ The industry depends on us. We can’t let the industry down by having anything less than the most dependable data center. And we deliver that with IBM technology.” Virginia Commonwealth University: Jun 2009 IBM XIV Storage system helps lower patient risk; We now have a fully integrated cross-IBM solution with consistent administrative capacity. We can easily move storage around, grow it, shrink it – whatever our need is. Lead Offerings IBM Systems Director Editions + VMControl IBM SAN Volume Controller IBM BladeCenter virtual fabric switch IBM Open Fabric Manager IBM Tivoli Storage Productivity Center Active Energy Management & ITM for Energy Management Tivoli Monitoring (ITM) Tivoli Application Discovery and Dependency (TADDM) Tivoli Dynamic Workload Broker (TDWB) Tivoli System Automation WebSphere Virtual Enterprise

18. Automate Processes Needs Improved IT staff productivity Consistent execution of business priorities, processes and service level agreements (SLA) in a consistent manner where systems are able to respond in an automated manner to changing business conditions consistent with best practices and regulatory compliance (eg SOX, HIPAA, Patriot Act, etc) Results Postal Organization UK: Aug 2009 Adopts WebSphere Virtual Enterprise for their application server technology; “downtime is reduced dramatically we can manage workloads autonomically” UPMC: Sep 2008 Takes healthcare delivery to new levels with dynamic infrastructure; “ Today most of our servers are virtual, not physical. The virtualized infrastructure flexes to meet processing peaks; the staff can respond to the demands of UPMC faster. We are more productive, more agile, and more reliable, at a lower cost point. It works well.” Lead Offerings Tivoli Provisioning Manager Tivoli Asset Discovery Tivoli Service Automation Manager (TSAM) Tivoli Usage and Accounting Manager (ITUAM) Tivoli Business Services Manager Tivoli Provisioning Manager for OS Deployment Tivoli Provisioning Manager for Images WebSphere Virtual Enterprise Service management strategy and planning

19. Optimise Delivery Lead Offerings Tivoli Business Services Manager (ITBSM) IBM CloudBurst™ IBM Information Archive IBM Smart Analytics System WebSphere CloudBurst™ Appliance IBM Smart Business Test Cloud IBM Smart Business Desktop Cloud Private test cloud implementation service IBM Scale Out Network Attached Storage (SONAS) Needs Improve agility and business effectiveness by having business priorities dynamically drive the underlying IT infrastructure allowing business users to self provision as required Leverage Cloud computing as a new business and delivery model where a ‘virtual enterprise’ is unconstrained by physical barriers and location Results SK Telecom deploys new Cloud of 80 systems including IBM System x and IBM BladeCenter capable of orchestrates thousands of services in a workload-optimized fashion using Tivoli Service Automation Manager. Star Technology UK: Mar 2009 Meets stringent SLAs with IBM Service Management Tools; “Star has built a successful cloud computing infrastructure using IBM Tivoli Monitoring software and working closely with IBM.” NC State: Dec 2008 Makes a breakthrough in improving access to academic computing resources; With its new self-provisioning model, NC State can now follow a more efficient licensing strategy based on real utilisation, reducing its future licensing costs by up to 75%.

20. Leveraging virtualisation for added business value IT benefits: Reduce Cost Reduce complexity. Enhance resource utilisation. Recapture floor space. More efficient power & cooling. Improve Service Improve performance and optimise scalability. Improve service levels. Bring new services online quickly. Manage Risk Improve uptime/availability and increase recoverability. Business benefits: Respond to new business opportunities quickly by establishing a foundation for growth and agility. Process more information in real-time to make better business decisions. Consolidate operations and overall systems control. Reduce or eliminate redundancy in infrastructure and personnel. Improve employee productivity.

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