This document discusses IBM's new System x M5 server portfolio and its partnership with Lenovo. Some key points:
- IBM introduced its new System x M5 servers featuring up to 18 cores and improved security, efficiency, and reliability.
- IBM is divesting its x86 server business to Lenovo but remains committed to supporting partners and customers through the transition.
- The partnership with Lenovo will provide partners with new opportunities and a more complete solution portfolio while maintaining IBM's service and support leadership.
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Tomorrow's Server Infrastructure Today
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Tomorrow's Server
Infrastructure Today
3. Speaking Today
Sean Whalen
Brand Manager
IBM x86 North America
Bert Silvestre
Vice President
System X North America Channels Leader
IBM System x / PureSystemsSolutions
4. The State of the Server Market
Q2 Worldwide Server Sales:
IDC: Revenue: $12.6 billion (up 2.5%)
Unit shipments: 2.2 million (up 1.2%)
Gartner: Revenue: $12.7 billion (up 2.8%)
Unit shipments: 2.5 million (1.3%)
5. The Dominance of the x86 Server Architecture
Q2 Worldwide X86 Server Sales:
IDC:Revenue: $9.8 billion (up 7.8%)
Unit shipments: 2,200,404 (up 1.5%)
x86 = 99% of all server units shipped
Gartner:Revenue: $10.1 billion (8.1%)
Unit Shipments: 2,466,107 (up 1.4%)
6. Market Drivers And Trends
The move from scale-out to scale-up:
Data-driven workloads like business analytics, ERP and CRM require a larger, single instance footprint and don't lend themselves to a scale-out environment. That requires a larger number of CPUs and cores. (Moor Insights & Strategy)
Server consolidation:
In virtualization and cloud environment, the need to reduce cost-per-VM is driving businesses to pool more resources on fewer, larger physical hosts with ample memory. (Moor Insights & Strategy)
There are growing signs of a building server refresh cycle. (IDC)
7. "Unlike the commodity PC market, the server market is where people are still willing to pay more for performance."
-Nathan Brookwood, principal analyst at Insight 64. (CRN story, Sept. 5, 2014)
8. Server workloads are growing about 10% per year.
At least 70% of x86 server workloads today are virtualized, up from 18% in 2008.
In 2016, 21% of x86 servers shipped will be for virtualization, support 82% of workloads.
-Gartner
Workload Virtualization
9. Intel processors power +90% of all servers
Sept. 8: Intel launches Xeon E5-2600 v3
As many as 18 cores
3X performance boost
Support for DDR4 memory for fast application performance
Xeon D processors:
System-on-a-Chip architecture targeting hyperscaleworkloads
Now shipping for testing, first systems expected in 2015
Delays in ARM processors for servers?
Intel Server Processor Architectures
10. Intel Trusted Execution Technology (TXT)
•Hardware monitoring and security controls
•Attests to the authenticity of known server configurations (OS, firmware, hypervisors, etc.)
•Uses Trusted Platform Module techniques
•Supported systems include Cisco UCS, Dell PowerEdge, HP ProLiant and IBM System x
Hardware Security
11. North America Business Partners
Bert Silvestre
Vice President
System X North America Channels Leader
IBM System x / PureSystems Solutions
The Channel Company Business Partner ChannelCast
September 16, 2014
12. 12
x86All Systems Go!
(Heritage of innovation in x86)
•Strategic alliance with IBM -servers, storage, software, maintenance
•Key ISV ecosystem relationships continue and expand
•Seamless transition, deal on track to close later this year
(Scale and supply chain efficiency)
Greater client value
“On August 15, 2014 the US Government Committee on Foreign Investments in the US (CFIUS) approves divestiture of IBM x86-based server business to Lenovo!”
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Key Quotes!
“IBM said the new 18-core chip helps deliver 59 percent better database performance and 61 percent better virtualization performance than its predecessor, the E5-2600 v2 chip, which shipped last year. --(ITWorld) IDG
“IBM beat back security critics Monday, unleashing a new M5 server portfolio that prominently feature advanced built-in security. The move is sure to quell critics of its pending $2.3 billion sale of its x86 server business to China-owned Lenovo expected to be completed this fall”. --CRN
“All of the new servers contain an upgraded version of IBM’s Trusted Platform Module that blocks unauthorized firmware modifications and provides the option of enabling automatic encryption of hard drives. The added security measures are seemingly aimed at reassuring customers that their data will remain protected after the System X portfolio passes to Lenovo” ... --SiliconANGLE
“Over the years I’ve seen IT hardware companies go to bits in advance of a change of ownership: not so IBM’s System x team, who are about to move lock, stock and barrel over to Lenovo. They haven’t skipped a beat in the well thought-out announcements, which include every feature and function you’d expect from this long established server business." Martin Hingley
"Particularly interesting is the tightening of Lenovo’s relationship with Intel and its ability to work with EMC and IBM equally as both attempt to turn Lenovo into a more exclusive asset. In short, there is far less risk than you likely are hearing from analysts and far more opportunity as well, which, for the smart IT organization, creates some unique strategic advantages in dealing with the company right now." Rob Enderle, IT Business Edge
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•Business Partner growth is a major focusacross the industry
•Intel growingshipments
•x86 infrastructure expandingin the datacenter
•New System x/Flex System/NeXtScale M5 offerings are channel best sellers
•IBM/Lenovo deal prompted major vendor initiativestargeting your business
IBM Confidential –Page 14
AGreat Timefor
Business Partners to sell x86
15. 15
•Committedto help Business Partners provide x86 value with“5-Point Plan”
•Establisheda “Revenue Growth Fund” to help partners fight the competition
•Rewardedpartners for loyalty and helped them win during Lenovo transition
•Implementeda balloon payout to achieve targets
MajorInvestmentsto help BPs win
•Investedover $1B in 100+ worldwide road shows to enable BPs
•Deployedcompetitive reseller recruitment programs
•Targeted$50M+ for advertising, demand gen, co-marketing to drive client demand for BPs
16. 16
•Lenovo reach opens up new market and product opportunities
•Lenovo will be the volume channelfor IBM storage
•Lenovo will continue to offer leadership IBM service and supportfor your customers
•Inclusion of the current Lenovo portfolio means a complete business solutionfor clients
•World ClassServiceandSupportcontinues
AllSystems Gofor BPs
•Committed to continuity through the transition for key programs and incentives
•Committed to continuity through the transition for partner sales coverage
•PartnerWorld will be available to provide education and enablement during the transition
•IBM Resellers have received readiness packageto prepare or Day 1
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•The right roadmapto #1 in the x86 market, but that only works with Business Partners on board
•Continue to simplify and accelerateour x86-focused value strategy
•Align our strategy to key solutionsand industry growth initiatives
•New programs maximize IBM expertiseand Lenovo operational efficiency
TheFuture only getsBrighter
18. 18
TakeAction!
•Contact one of our x86 Distributorstoday to learn how you can start selling x86 Server Solutions!
–Avnet
–Arrow
–Ingram-Micro
–TechData
36. Q&A: Submit Your Questions Now
•Rick Whiting, Features, Special Projects Editor, CRN
•Bert Silvestre, Vice President,IBMSystem x / PureSystemsSolutions
•Sean Whalen, Brand Manager, IBM x86 North America
37. Check Out Upcoming and On Demand ChannelCasts!
www.facebook.com/channelcastshttp://www.crn.com/channel- cast/index.htm
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