What is different about the ibm mainframe

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

Module Abstract 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.

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

WHO uses mainframes? And Why?

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

Workloads That Customers Run on System z What is a workload? The relationship between a group of applications and/or systems that are related across several business functions to satisfy one or more business processes. 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

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

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 "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. “ "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 " Advocate Vekuii Rukoro, Group Chief Executive Officer FNB Namibia Holdings “ 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

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) "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

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

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

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 "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”

What is a System z? Leader in green technologies Power and generator Cooling Floor space Server Most scalable Extreme virtualization * z/OS ® sysplex Datacenter Data Hub Up to 100% utilization Highest throughput for high I/O transactions Unparalleled reliability, highest availability* More RAS features Fewer parts Capacity on Demand 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 Data Warehouse Transaction Processing Web apps Java apps Infrastructure Functions ERP, CRM Linux ® Apps

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

Virtualization is good 800 Standalone images down to 400 VM hosted images is a terrific savings x86 to x86 migration may be considered low risk This process perpetuates the philosophy of Fit for Politics Different teams looking at x86, UNIX and mainframe operations Are you missing opportunities to further reduce operations expense, risk and improve governance and compliance by collaborating across platforms? Redundant data Different access control policies creates risk and complicates compliance Missed business opportunities due to hindsight of batch transformation vs real time Insight Commodity based availability doesn’t improve security and capacity management in the way that co-location of applications and data does Management and integration of parts continues to be costly and time consuming Virtualization Managers on x86 and RISC are heterogeneous at the operating system level Linux, UNIX, Windows But they are not “end to end” heterogeneous at the server level E.g. They don’t include System z, nor any other platform of a different architecture System zEnterprise introduces the first end to end Virtualization Manager – Unified Resource Management – at a hardware level

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

IBM System z Virtualization Technology Helping Clients Save Money, Reduce Complexity, Improve Service Consolidate 3x or more* servers per core than virtualized x86 offerings Less software, energy, floor space and disaster recovery Manage more server images with fewer people Deploy new servers and applications in seconds instead of hours or days Simplify Image life cycle management z/VM ® provides provisioning, automation, monitoring, workload management, capacity planning, security, charge back, patching, backup, recovery, more... “ 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

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

IBM System z Security Reducing risk – Protecting businesses Helping businesses: Protect from INTRUSION z/OS and z/VM Integrity Statement Protect DATA Built in encryption accelerators in every server FIPS-140-20 Level 4 certified encryption co-processors for highly secure encryption Ensure PRIVACY Access to all resources is controlled by an integrated central security manager Protect VIRTUAL SERVERS The only servers with EAL5 Common Criteria Certification for partitioning Respond to COMPLIANCE REGULATIONS Up to 70% in security audit savings 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

Maximizing Utilization of Resources 1 Source: gomainframe.com Joe Clabby Up to 100% server utilization compared to 10-25% distributed server utilization 1 Shared everything infrastructure allows for maximum utilization of resources CPU, Memory, Network, Adapters, Cryptography, Devices 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

IBM System z Resiliency Avoiding the risk of downtime, maximizing business responsiveness* In the event of a disaster, recover your system in less than an hour with zero data loss with GDPS ® /PPRC 99.999% availability with z/OS Parallel Sysplex ® data sharing. 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) Smart Operating systems that can monitor, provision, alert on system trends, can even help predict incidents before they become outages Hardware mean time to failure that is measured in decades 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 * NOTE: GDPS: http://www-03.ibm.com/systems/z/advantages/gdps/offerings/index.html Parallel Sysplex: http://www-03.ibm.com/systems/z/advantages/pso/benefits.html 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 Predictive Failure: http://www-03.ibm.com/support/techdocs/atsmastr.nsf/WebIndex/WP101454

High availability is needed every day…. Overheated servers blamed for Wikipedia outage (March 25, 2010) Lack of training reason for Google data centre problems (March 9, 2010) PayPal suffers from e-commerce outage (Aug 3, 1009) Customers abandon ship after major SAN outage (March 25, 2009) Cloud bursts yet again - users (up to 113M) cannot access their email (March 10, 2009) 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 Downtime costs you … (estimated cost per hour)** Only System z can deliver… 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

Platform Competitiveness Systems Management Reduction in FTEs compared to distributed platforms as workload scales Built in security and availability features simplify business processes Parallel Sysplex reduces workload separation and SLA responsibilities Business Process Integration Co-location of applications and data reduces latency/elapsed time and CPU consumption Reduces the number of distributed footprints necessary to achieve business goals Business Resilience System responsibility for availability reduces RYO automation efforts and excess distributed hardware, software and services necessary to achieve SLA goals MTBF measured in decades Security Helps customers avoid $MM’s in third party security fees z/OS system provides application and DB security Improved Cryptographic Hardware Data vault for the enterprise with OLTP and Business Analytics sharing data Improves security of distributed platforms as well through common encryption, key management, forensics, fraud prevention and authentication services. Application Deployment Cost per development seat (HW, SW and tools) on par with Microsoft development Via Solution Edition and Rational zPDT Leveraging Rational and new reduced z hardware offerings simplifies alternative development environments for less or equivalent costs of Microfocus, Tmaxsoft, Clerity and Oracle Tuxedo. Consistent development tools across distributed platforms via Rational tools Leverage Rational Migration Extensions to simplify migration from distributed and OEM to IBM middleware. Virtualization 40+ year heritage in virtualization now demonstrated through SpecVirt results Customers garner additional business value, beyond benchmark results. Massive scale out and scale up within the System z Energy System z meets or exceeds environmentals to run on board aircraft and ships Air pressure, vibration, energy, cooling, ambient temperature, humidity, size Continues trend to reduce Kw/mip System Capacity Provides the largest aggregate data sharing environment Terabytes of data available to meet OLTP and Business Analytics SLAs 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?

IBM zEnterprise System: A New Dimension in Computing The world’s fastest and most scalable enterprise system with unrivalled reliability, security, and manageability. The industry’s most efficient platform for large scale data center simplification and consolidation. 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. Management integration Multi-platform integration Stack integration

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

System z Solutions Stack Middleware Service Management Operating System Virtual Platform Management Physical Platform Management Hypervisor Microprocessor Server Storage Network Applications

System z Solution Stack Comprehensive portfolio to meet your business needs Supports open standards Java ™ , J2EE, C/C++ Web services TCP-IP Major communications protocols 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

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

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

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.

Rational Tools for Multiplatform Development Available for System z Under NDA until Announce Collaborative and Integrated development and lifecycle management for System z Rational Team Concert for System z Fully integrated team collaboration uniting System z, POWER ® , and x86 development teams Rational ® Developer for System z Improved developer productivity Rational Asset Analyzer Lower maintenance costs NEW! Rational Developer for System z Unit Test Fully compatible workstation solution for developing System z applications Collaborative development and deployment for all zEnterprise environments IBM Compilers for System z Up to 60% Increase in application performance over prior generations

What is “Good Enough” for mainframe and zBX development? Business Problem Mainframe viewed by some as expensive for doing Proof of Concept applications; Cost of the middleware to develop against was too expensive Cost of mainframe hardware to unit test with was too expensive Skills have been difficult to acquire; Green screen is boring Consistency – cross platform development tools, easy to use Rational Developer for System z (RDz) and Rational Team Concert Same front end tool for many platforms and many types of middleware Modeling, creation and debug of cross platform code Maintenance of “legacy” code using modern/common tools Offload 50-80% of source code editing to desktop; frees MIPS for production Common middleware collection of run times, regardless of how you leverage z Accessible – new ways to get a Unit test mainframe Mainframe on every desktop – giving developers independence z/VM usage and Clouds for developers – Solution Edition for Application Development Rational Developers for z Unit Test feature (June 7, 2010) mainframe instructions on a developers PC or PC Server Affordable – cost per developer on par with Microsoft tooling Priced to be approximately $15K per user over 3 years: RDz + IBM Middleware + z hardware for Unit and Function test Tools will build for System z and zBX operating systems z/VM DB2 z/OS WebSphere IMS iLog CICS JAVA, XML Linux on x86 zPDT z/VM Test

End-to-end Enterprise Content Management (ECM) integration in Team Places with enterprise grade reliability on Linux on zEnterprise Work with managed and accessible business content for faster project completion 24X7 presence, chat and online meetings supported on Linux on zEnterprise Reduce costs and speed decision-making with real-time collaboration Expanded support of client platforms and mobile devices Empower distributed teams and mobile employees with a unified communications and collaboration platform 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

HW, SW, and Maintenance included 3-5 Year “Bottom-line” prices Targeting new System z workload opportunities Pre-Approved and delegated net pricing; approved by STG, SWG, and MTS WW Execs Modeled on the successful “SAP Solution Edition” Drove 36% growth in 2008 Opens door to $13.0B in opportunities Designed to help you close business quickly and profitably Announcing the new System z Solution Editions: Legendary Mainframe quality, TCA within 20% of competitive UNIX alternatives* IBM “Stack” Price, designed to be within 20% of equivalent HP-UX Itanium based solutions at typical market discounts Data Warehousing Security WebSphere GDPS Application Development SAP (new lower prices) ACI (existing) Cloud Services Solution ELS – Enterprise Linux Server Enterprise Linux Solution Editions:

Academic Initiative z Growth Means Skills When Needed www.ibm.com/university/systemz Participation – 600+ schools registered, >50,000 students attended mainframe education Courses – 25 Courses (plus more under development) & Mastery Exam Certification zCommunity – 26 Roundtables events with Clients / Schools / ISVs / Business Partners Resources – Access to Mainframes worldwide for teaching (6 Univ hubs) Student MF Contests – 10 contests with 8,630 students, 1,167 schools…more planned WW Ambassador community – 200+ z ambassadors Faculty education – Professor Summer Seminar, workshops, faculty awards, education coupons Need assistance? [email_address] For a list of schools teaching the mainframe , see: http://www.ibm.com/university/systemz- Click on the "Participating Schools" tab 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

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

Smarter systems from IBM Fueled by expertise Built for change Ready for work

Under NDA until Announce WHY New Customers Select System z

System z vs X86 – article from eWeek, September 7, 2009

A public sector client improved productivity and service quality while becoming more responsive to new Internet banking capabilities for a tax receipt application

A healthcare client lowered complexity and the cost of development and test

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. " 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" Pham Anh Tuan, Deputy Director, VietinBank 35% business growth past year Continuous banking services to customers Across 800 offices and 1200 ATMs

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. "Our business and reputation rest on promising a fast, reliable and secure service to our clients," said Peter Flanagan, CEO of Transzap. "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."

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.

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. "Our data centre was running out of power and we couldn't add any more servers to the infrastructure," Peter Rowe, Allianz Australia infrastructure and operations head Consolidated 60 Wintel servers 1 System z Energy use 40kVA to 4kVA (-90%) $1m Savings in facilities, hardware and software costs

Deployment choices toward a Fraud & Forensic Clearing House on System z Business Goals A User activity monitor for forensic and fraud prevention Non-invasively capture activities from a wide variety of protocols and systems Stealthfully deploy, where possible Intellinx in Action Identified thefts from Dormant bank accounts Eliminated RYO audit tools for major Police Dept Stopped leakage of personally identifiable information Bladecenter only (large financial) Over 200 blades to meet needs of large financial institution with the five distinct solution points of control Weeks to configure and deploy software Environmental and FTE costs are highest Coordination w/ security, network and server admin teams Linux on System z w/ blades (Police Dept) Multiple Linux server instances to cover the five solution points Common hardware reduces environmentals and FTEs Network connections must be established to capture traffic z/OS zWatch edition w/ blades (Large Bank) Installation in under an hour, software only zIIP and zAAP eligible for 98% of processing keeps software pricing minimal High volume, low CPU utilization TCA and TCO are less than alternatives zWatch unique capability to handle network encrypted traffic 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

Retail Client Using SAP Financials Client Pains Resource intensive and vulnerable to several points of impact Too many network hops Outages when applying microcode updates Multiple software tools and software process for site failovers Benefits: Consistency of business controls Monitor and manage applications end to end Manage, maintain and provision resources with true application insulation Better utilization of assets Insulate application development teams from Infrastructure technology Consolidation of skills thru consistent tools The Future : DB2 for z/OS with Application Server on POWER7 Blades + Future exploration of SAP Business Warehouse Accelerator on x86 Blades

Public Sector Client Develops an Internet Tax Application The Future : DB2 z/OS with Application Server on POWER7 Blades in zBX, IBM WebSphere ® DataPower ® Client Pains Not able to respond quickly for need of new function High cost of staff required to maintain multi-tier application Benefits: Network speed increased by ten times Single workload management view across multiple platforms reducing labor overhead Everything is pre tested, pre configured for their mission critical application

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.

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

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

Comparing System z to other servers

Information technology today: Limitations Business processes and the applications that support them are becoming more service oriented, modular in their construction, and integrated. The components of these services are implemented on a variety of architectures and hosted on heterogeneous IT infrastructures. 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. We need better approach: The ability to manage the IT infrastructure and Business Application as an integrated whole. 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

Security issues abound Google “vmware code execution vulnerability” yields over 56,000 hits. The vast majority related to bugs resulting in security exposures in VMWare This is but one example: www.networkworld.com/community/print/41608 Google “zvm code execution vulnerability” yields less than 600 hits None are actual security exposures in zVM They just happen to have the search terms on the same webpage But both zVM and VMWare are certified at EAL level 4+

System z can already deliver the lowest cost per unit of work for large scale data processing workloads Large scale workload consolidation Huge I/O bandwidth Structured management practices Leverage z/OS and Linux on System z zEnterprise can extend these cost advantages across a broader range of workloads and resources Leverage select IBM Blade servers for workloads less suited for System z Heavy computational workloads – POWER7 Light I/O workloads – System x Blades* zEnterprise enables centralized platform and workload management across all zEnterprise resources Bottom Line: Fewer pieces to buy, assemble, manage and track Efficiency Delivered Through Fit-for-Purpose Computing Simplify and consolidate to save BIG! * Available 1H2011

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

IBM System z offers game changing capabilities that result in significant savings of both time and money

“ One Box is Enough” -- zEnterprise Current SPARC zEnterprise 150 Sun/Solaris DB servers 1 zEnterprise z196 Linux Only System Overview Tangible Benefits (5 Year TCO Comparison) Intangible Benefits Improved security – no information leak during data copy between servers End to End disaster recovery – simplified, single switchover Improved availability – no network routers or switches 75 HP (IA) DB servers HP Nehalem Prices based on US market prices, local pricing and conditions will vary 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

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

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

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

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

Using mainframes reduces total IT cost Mainframe centric companies had IT costs 14% lower than average Distributed server centric companies had IT costs 33% higher than average Actual percentage varies by industry, but mainframe centric companies’ IT costs were consistently lower than average, and distributed costs were consistently higher than average.

Imagine the possibilities….. An operational advantage you can turn into a business advantage Business Problem 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 Insight instead of Hindsight Opens up opportunities for real time analytics Preventing fraud Making business analytic decisions faster Improved performance and lowers cost Uses blade-based specialty processors, storage for warehouse workloads Boosts overall query performance up to 80x Customers could see a 40% reduction in storage utilization Supports in-memory column store for parallel star schema queries Uses column-based compression to minimize storage needs Unchanged interfaces to DB2 for z/OS and thus no changes to the BI/DW applications Provides capability to perform both transactional (OLTP) and warehousing (OLAP) type of queries in the same database management system 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

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 Reduction in capital, environmentals, FTE’s, Software licensing, simplification, risk Introduction of vMotion will improve distributed application availability But…..does it improve end to end solution? At the business, operations and organizational levels? Solutions are NEVER this simple

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

Application Architecture: The Complexity of Distributed Business Objectives A bank has four basic transactions Credit, Debit, Transfer, Inquiry And they have a variety of choices for front end interface ATM, Branch Terminal, Kiosk, Web browser, PDA, Cellphone Customer uses a Bladecenter to drive multi channel transformation The back end processing remains the same regardless of the presentation device Fully Distributed Model (if deployed) Each application becomes a cluster of server images and must be individually authenticated and managed Each line is a separate network connection, requiring high bandwidth and protection Data is replicated across enterprise to meet scalability Customer deploys/builds automation processes to facilitate system recovery with additional software – this is not trivial and requires additional software and unique development High environmental needs and full time employees to manage infrastructure 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?

Application Architecture: A Large Enterprise zEnterprise Combinations – reducing control points Assumes the Bladecenter for the multi channel transformation Can leverage Websphere on either Linux for System z or z/OS The Bladecenter functionality can be migrated to zBX in the future TCA and TCO advantages over distributed It’s the very same programming model in a different container that provides a superior operations model 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 Security Fewer points of intrusion Resilience Fewer Points of Failure Performance Avoid Network Latency Operations Fewer parts to manage Environmentals Less Hardware Capacity Management On Demand additions/deletions With IFL With zAAP & zIIP Utilization Efficient use of resources Scalability Batch and Transaction Processing Auditability Consistent identity Simplification Problem Determination/diagnosis Transaction Integrity Automatic recovery/rollback Security Fewer points of intrusion Connectivity Improved throughput Simplification Problem Determination/Monitoring Development Consistent, cross platform tools With zBX

Choices: Co-location drives better value than commodity virtualization Business Problem Customer building web services applications to access highly scalable and available DB2 for z/OS Deployed WAS on distributed systems and was satisfied with current performance Realized workload growth and end to end availability and governance would add additional complexity (e.g. redundant distributed servers, new automation tools) Co-location of applications and databases on z/OS completely changes operations model Customer moved WAS application to z/OS where it was co-located with DB2 for z/OS Customer achieved 100% throughput improvement and a 50% reduction in DB2 utilization Value to customer: More consolidation possibilities on z/OS Co-location of app and data reduces operational complexity Debug, Business Resilience, security, automation, capacity mgt Reduction in CPU utilization reduces MW licensing costs 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?

Proximity to data Benefits of Type 2 Local DB2 access vs Remote Type 4 access A 50% reduction in average end (Web) user response times Overall CPU requirement was 50% less than the remote (two z/OS) system implementation 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

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 Evaluation of the application and data on multiple physical servers: Overall transaction throughput (at constant response time) would be degraded 33%, requiring more capacity than originally planned A significant amount of memory was required to hold in-flight work, comprising 80% of each server’s cost

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 Prior chart might be best case scenario. Add “non-functional” requirements: Additional authentication flows – more interconnect and i/o required Audit complexity may increase to correlate access to personally identifiable data Business Resilience solutions may be more complex; Additional environmental costs Storage management costs across the workflow 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?

The Most Efficient Platform for Large Scale Consolidation: Linux on zEnterprise Lower acquisition costs of hardware and software vs. distributed servers* Less than $1.00/day per virtual server (TCA)* Reduce floor space by up to 90% compared to distributed servers* Reduce energy consumption by up to 80% compared to distributed servers* Consolidate 40 Oracle server cores to 2 Linux Cores on zEnterprise * 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

Consolidate More and Spend Less with IBM zEnterprise Increasing the Economic Appeal of Linux on z/VM Server Consolidation and IT Optimization 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 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) (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

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 Silo managed islands of computing Less dynamic Minimal resource sharing LOWER HIGHER Scalability, Security, Dynamic Workload Management Expanded ISV support for enterprise applications Targeted for applications that interact with mainframe data and transactions Provisioned and managed by System z Extreme scalability and performance for transaction processing and data serving High availability and cross-system scalability with Parallel Sysplex and GDPS Leading policy-based capacity provisioning and workload management Pervasive, high-performance security support Extreme consolidation of servers and networking Superior levels of server provisioning, monitoring, and workload management Industry-best virtual I/O bandwidth and reliability Fewer components and reduced complexity System z qualities of dynamic resource management and capacity-on-demand Seamless integration with z/OS backup and DR

Beware of Benchmarks 40 Miles/gallon 7 cubic feet of storage 4 passenger $15,000 10 Miles/gallon 7 cubic feet of storage 2 passenger $55,000 Problem 1: Which is cheaper to commute to work with? Problem 2: You want to move your house: How many vehicles and trips will be required to move? Are extensions, such as the trailer, valuable? How do you get the Grand Piano moved? What if it rains? They aren’t mutually exclusive either: The family rides in the car, the furniture rides in the truck Several compartments Bladecenter + System z = zEnterprise = Enterprise Solution

z196 in the top tier of Industry Standard Benchmarks SPECint Moved to SPECcpu 2006 Compiler (XL C/C++) work on target: 5-7% performance per release 1.22X across 1.10, 1.11, 1.12 Outlook: z196 in lead pack Using XL C/C++ 1.12, at 5.2 GHz Single-thread, no auto-parallel Expected to be #1 or #2 with Power 7 being the other platform Java SPECjvm 1.50-1.55X z10 1.1-1.2X Nehalem (more uni-like) SPECjbb (meant to be run SMP) 1.65X z10 1.4X Nehalem ( excluding benchmark specials) Measurements at 4.85 GHz, no exploitation of new instructions With GA hardware running at 5.2 GHz, this is expected to beat Westmere as well Rate: Do Not Publish. Only verbal discussions via NDA at customer request While our rates are top notch, price performance is not. We are a multi-workload platform. These are uni dimensional benchmarks. They show that our ISB ratio’s are similar to our LSPR ratio’s. They also provide a point in time comparison to distributed. However, we are not in a benchmark war, as a value platform. Nor do we want to downplay benchmarking because it does provide Power7 a competitive advantage. A process will be developed to make this information available to Regional specialists for VERBAL disclosure to clients. Responsible: Jim Porell Final measurements are underway. Goal to complete for GA.

Summary of Competitive perspective zEnterprise takes a solution focus managing virtual machines across System z and Bladecenters Alternative VMs focus on a single server type or a portion of an end to end solution Collaboration between System z and Blades provides an operational advantage by: Sharing data between servers and therefore reducing data volumes by 40-60% Leveraging real time data access to provide Insight versus the hindsight provided by batch data moves between alternative server implementations Simplifying the provisioning of data toward specific workloads Reduction of risk and simplification of governance and compliance as a shared operations model to avoid the pitfalls of separate security domains used in distributed environments reduce the number of security intrusion points reduce the number of points of failure and leverage components with a longer mean time between failure than a pure distributed environment. Linux for System z virtual servers are as low as $1000 per server over 3 years or roughly $1/day These server images will benefit from legendary System z availability, security and systems management Customers that have moved distributed Web Service apps that access z/OS data onto z/OS have experienced a number of benefits: 100% improvement in performance by leveraging in memory data instead of network attached 50% reduction in DB2 for z/OS processing as it reduces network attached connection management Improvements in availability through the reduction of points of failure and built in Parallel Sysplex automation Reduced risk and simplified compliance as a single administrative domain is in place Significant savings can also be seen by moving web applications to Linux on z and using hipersockets to access DB2 data on z/OS

Summary of Competitive Perspective Businesses can add capacity to existing System z and Bladecenter servers without the need to repartition application workloads. Processing capacity can be added or provisioned on demand to cross platform workloads via common hardware management console. This can be far simpler and faster to deploy than adding new servers to a distributed processing cluster. 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. This reduces the number of planned and unplanned outages that might be experienced in a purely distributed server environment. Call home capabilities of System z apply to zBX to improve overall availability. Consultant studies demonstrate that reducing down time will decrease financial losses due to outages. Financial impact varies by industry and length of outage. Efficiency Up to 80% reduction in energy and floor space compared to distributed systems Up to 70% reduction in labor compared to distributed systems

www. ibm.com /systems/z ZSP03421-USEN-00

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