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© 2010 IBM Corporation IBM zEnterprise System business value for the retail industry Smarter systems for a smarter planet George Mattathil - 5/2/2011 Posting reference 727

IBM zEnterprise: Retail

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We can provide a new dimension in computing for retailers.

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Page 1: IBM zEnterprise: Retail

© 2010 IBM Corporation

IBM zEnterprise System business value for the retail industry Smarter systems for a smarter planet™

George Mattathil -

5/2/2011

Posting reference 727

Page 2: IBM zEnterprise: Retail

© 2010 IBM Corporation 2

IBM’s industry value proposition isenhancedwith the introduction of

the new IBM®zEnterpriseTM System.

IBM’s retail industry value proposition

IBM collaborates with retailers to help improve customers’ shopping experiences,

optimize merchandising and supply chains, and drive operational efficiencies.

We offer integrated hardware, software and service solutions that are proven to

provide the fastest time to value with the least risk for retailers.

SMARTER SHOPPING EXPERIENCE—Personalizes the shopper interaction,

enables shoppers to engage on their own terms, and creates excitement and

motivation for those shoppers

SMARTER OPERATIONS—Drives operational excellence through cost-efficient

management of people, processes and technology, while tightly managing

performance and maintaining the ability to rapidly modify processes and

infrastructure to capture opportunities

SMARTER MERCHANDISING AND SUPPLY CHAIN—Delivers value to targeted

customers by predicting their needs and wants, to develop and deliver desired

products and services while optimizing sales, profits, inventory and asset utilization

for the retailer

IBM is helping retailers address critical imperatives.

Page 3: IBM zEnterprise: Retail

© 2010 IBM Corporation 3

IBM zEnterprise System helps IBM deliver against retail industry imperatives.

1 2 3

Deliver a smarter

shopping experience

Develop smarter merchandising

and supply chains

Build smarter operations

Example: IBM zEnterprise™ System can help advance retailers’ Build Smarter Operations

imperative by helping to reduce IT costs.

Independent findings indicate that retailers can realize significant economic efficiencies with

mainframe based infrastructure …

“… in the long run the marketplace rewards those that make the

optimum use of the right computing resourcesin the right way

as evidenced by business performance”

— Dr. Howard Rubin, CEO and Founder Rubin Worldwide

44 percent lower cost per credit

card transaction 25 percent

lower cost per retail store

Page 4: IBM zEnterprise: Retail

© 2010 IBM Corporation 4

Retail industry business issues are addressed by new IBM zEnterpriseTM System advantages.

Operational advantage

Large scale consolidation to reduce cost of energy, facilities

and software licenses by up to 90 percent Deliver 35 to 65 percent performance

improvement over IBM System z10TM

Business advantage

Turn information into insightwith up to10-times improvement in performance for complex queries

Create a business aligned infrastructure capable of

processingbillions of instructions per second

Organizational advantage

Integrate and centralize management to reduce laboroverhead by up to40 percent

Up to 100 percent resource increase available to

deliver new innovation

Deliver a smarter

shopping experience

Retail

industry

imperatives

Build smarter

operations Develop smarter

merchandising and

supply chains

Page 5: IBM zEnterprise: Retail

© 2010 IBM Corporation 5

Key features of the new IBM zEnterpriseTM System enable these advantages.

Operational advantage

Large scale consolidation to

reduce cost of energy, facilities

and software licenses by up to

90 percent

Deliver 35 to 65 percent

performance improvement over

IBM System z10TM

Business advantage

Turn information into insightwith up

to10-times improvement in

performance for complex queries

Create a business-aligned

infrastructure capable of

processingbillions of instructions

per second

Organizational advantage

Integrate and centralize

management to reduce

laboroverhead by up to40 percent

Up to 100 percent resource

increase available to deliver new

innovation

Achieved by

Consolidation of databases and

access to information helps reduce

redundancy of data and resulting

number of servers

Reductions in servers and data

duplication and reductions in ETL

help reduce software license costs

Fit-for-purpose processors can

reduce cost of acquisition by up to

35 percent

Fit-for-purpose storage can reduce

storage total cost of ownership by

up to 38 percent

IBM System z® in particular, and

IBM servers in general, require less

energy

Overall reduction in system

management resources based on

zEnterprise Unified Resource

Manager

Unified development tools for all

environments helps enable skill

transfer and improves developer

productivity by up to 20 percent

Centralized management of virtual

servers across a heterogeneous

pool with more than 100,000 virtual

servers in a single zEnterprise

System

Processing directed automatically

to best fit-for-purpose system

helps increase performance and

reduce servers

Immediacy of access to data is

enhanced substantially as ETL

across platform is reduced or

eliminated

In-memory capability for both

vector and columnar processing

ETL – Extract, Transform, Load

Page 6: IBM zEnterprise: Retail

© 2010 IBM Corporation 6

The system of systems: built on best-in-class systems and software technologies Unifies IT for predictable outcomes demanded by retailers

Three new innovations of IBM zEnterprise™ System

IBM zEnterprise 196 (z196)

Unifies management of resources, extending IBM System z qualities of service end-to-end across workloads

Provides platform, hardware and workload management

Optimized to host large-scale database, transaction, and mission-critical applications

The most efficient platform for large-scale Linux consolidation

Capable of massive scale-up

New easy-to-use z/OS V1.12

zEnterprise Unified Resource Manager

IBM zEnterprise 196 (z196)

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

zEnterprise Unified Resource Manager

* All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only.

zEnterprise BladeCenter Extension (zBX)

zEnterprise BladeCenter Extension (zBX)

6

Page 7: IBM zEnterprise: Retail

© 2010 IBM Corporation 7

Why does the IBM zEnterpriseTM System matters to retailers?

Deliver a smarter

shopping experience

Build smarter operations

Develop smarter

merchandising and supply

chains

Multiple channels

App

ServerCustomer

Database

App

ServerCustomer

Database

Single virtual infrastructure

Single virtual infrastructure

Claims

Processing

Fraud

Detection

Claims

Processing

Fraud

Detection

Smart Analytics Optimizer

Smart Analytics Optimizer

Next generation

e-commerce

with zEnterprise

SAP enterprise

resource planning

(ERP) / business

applications with

zEnterprise

Real-time fraud

detection with

zEnterprise

Page 8: IBM zEnterprise: Retail

© 2010 IBM Corporation 8

Why systems matter to retailers: We help provide next-generation e-commerce.

Today IBM zEnterprise™ System

Multiple channels

Customer database

Multiple channels

Application server farm

App

server Customer

database

Single virtual infrastructure

Business challenges:

– Provide seamless shopping experience

across all channels

Operational challenges:

– Integrating across multiple siloed systems

– Avoiding system bottlenecks as transactions

spike

– Scale without added complexity and cost

– Addressing potential security exposures

New system design, new possibilities:

– Helps simplify management of a multi-channel

solution across a single virtualized infrastructure

– Can handle unpredictable spikes in e-commerce

traffic with automated provisioning and workload

management

– Can reduce operational costs by up to 38 percent

by integrating deployment of distributed platforms

through IBM zEnterpriseTM System1

1Based on IBM analysis of a large financial services company

datacenter with 10,000 distributed workloads

Page 9: IBM zEnterprise: Retail

© 2010 IBM Corporation 9

Why systems matter to retailers: We help provide near real-time fraud detection.

Today zEnterprise

Business challenges:

– Identify fraud risks in real time across multiple lines

of business and payment channels

Operational challenges:

– While data warehouse can detect trends, difficult to

prevent fraud in real time because data is copied in

bulk or batch mode

– Ability to achieve real-time performance

– Risk, complexity and cost of multiple copies of data

New system design, new possibilities:

– Real-time performance; claims processing

(online transaction processing (OLTP) and fraud

(analytics) queries from same database

– Can speed fraud detection query times by up to

10x with Smart Analytics Optimizer1

– One third less storage required when claims

(OLTP) and fraud (analytics) combined on IBM

zEnterpriseTM System; less risk2

Claims

processing

Fraud

detection

(Analytics)

Data

extracts

Single virtual infrastructure

Claims

processing

Fraud

detection

Smart Analytics Optimizer

(OLTP) 1 Based on internal IBM test results that reflect actual client queries 2 Internal IBM testing and modeling. Savings will vary by country.

Page 10: IBM zEnterprise: Retail

© 2010 IBM Corporation 10

Why systems matter to retailers: We help provide enterprise resource planning (ERP) / business applications.

Today IBM zEnterprise™ System

Business challenges:

– Delivery new business services fast

– Maximize application investment

Operational challenges:

– Achieving the best price/performance

possible

– Predictable service delivery

New system design, new possibilities:

– Run your applications where they

perform best

– Investment protection—runs current

applications and independent

software vendor (ISV) software

without change

“Our retail customers really depend on information insight. Now with zEnterprise hybrid

capabilities SAP Merchandising applications become smarter applications that benefit from

the governance and management of this new system.”

— Craig Jonsson. Vice President of IBM Alliance for SAP

Page 11: IBM zEnterprise: Retail

© 2010 IBM Corporation 11

Here is an example of a retail client using SAP Financials and IBM zEnterpriseTM System.

The future with zEnterprise

SAP Data Server on IBM DB2® IBM

z/OS® with Application Serving on p7

Blades in zEnterprise BladeCenter®

Extension (zBX) integrated in a

zEnterprise system. Future exploration

of enabling SAP Business Warehouse

Accelerator as an application running

on x86.

Business advantage

Ensure business controls, such as security and compliance,

can be achieved on a consistent basis across the

applications and platforms

Challenges and 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

Operational advantage

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-production environments

Organizational advantage

Insulate application development teams from

infrastructure technology

Consolidation of skills through consistent tools

Page 12: IBM zEnterprise: Retail

© 2010 IBM Corporation 12

IBM’s Retail Industry Framework is supported by an ecosystem of

key IBM Business Partners that are optimized on zEnterprise.

Note: Partner shown is illustrative subset of our complete partner

ecosystem.

“With the launch of IBM zEnterpriseTM System, the new management structure for heterogeneous platforms can provide SAP customers with tight integration of the infrastructure for their SAP business solutions. Using this new environment, SAP customers will have access to even more capacity and considerably higher performance to meet their growth requirements and deliver superior service to their business.” — Dr. Torsten Wittkugel, Vice President SAP DB/OS

Platform Development

Page 13: IBM zEnterprise: Retail

© 2010 IBM Corporation 13

With IBM zEnterpriseTM System …

Retailers can reduce integration costs across

multiple platforms and across mission critical

multi-tier applications with the zEnterprise

hybrid capabilities and the new IBM

zEnterprise Unified Resource Manager

Retailers can improve time to market and

turn customer information into insight with

IBM Smart Analytics Optimizer that delivers

up to 10-times improvement in performance

for complex queries

Retailers can increase the security of

sensitive data by extending the security

capabilities of zEnterprise to the

BladeCenter® Extension

Management

integration Multi-platform

integration

Stack

integration

Summary: We can provide a new dimension in computing for retailers.

For more details:ibm.com/systems/zenterprise

Posting reference 727