© 2008 IBM Corporation June 10, 2008 1 IT Industry Analyst Briefing Part 1 – June 10, 2008 Project Big Green II Expanding the Scope Steven Sams and Chris

© 2008 IBM Corporation June 10, 2008 1

IT Industry Analyst BriefingPart 1 – June 10, 2008

Project Big Green II Expanding the Scope

Steven Sams andChris O’Connor


Agenda

Dramatic Advances for Green Data Centers

Steve Sams, VP, Global Site and Facilities Services, IBM Global Technology Services

Chris O’Connor, VP, Tivoli Strategy and Market Management IBM Software Group

– New offerings across five focus areas

– Breakthrough in deployment options

– New energy management capabilities

Questions


Key Messages

Energy efficiency is a global issue with significant impact today — and will have an even greater impact in the future

Data center design must change – technology and business growth uncertainty and rising costs drive the need for a new approach

Energy efficiency is a key metric to evaluate overall IT operational efficiency

Immediate financial return can be realized by optimizing around energy efficiency in current data centers, while planning for the future


Client Results

Source: Data from subset of IBM engagements with over 2000 clients where savings have been quantified.

“Average achievable energy savings greater than 40%”

“Data Center Energy Efficiency assessment shows average pay back < 2 years”

“Average utilization rates increased 2X to 4X”

“$1 energy savings drives another $6-8 operational savings on average”

“Efficiency projects ranged from 2,000 sq. ft. to 180,000+ sq. ft.”

“Achieved data compression rates of 83%”

“40 scalable modular data centers installed; each deployed within 8-12 weeks”

“12 MMT assessments drove potential 13 million kWH annual savings”


DiagnoseDiagnose

BuildBuild

Cool Cool

VirtualizeVirtualize

MeasureMeasure&&

Manage ManageIBM Project IBM Project Big GreenBig Green

Project Big Green –Portfolio Enhancements 2008New Services: Get the factsMobile Measurement Tool formalized as product and delivery capacity tripled

New Offering: Software and Services WebSphere Virtual Enterprise TS7530 Tape Virtualization SAN Volume Controller 4.3 Diligent data de-duplication solution VMware server virtualization services POWER VM

New Offering: Rear Door Heat Exchanger EnhancementsLeverage innovative cooling solutions to lower airflow requirements

New Offering: Energy Management

Tivoli Monitoring for Green Energy & Active Energy Management Software

Tivoli Maximo Enterprise Asset Management

Optim Data Growth Solution for Siebel v2.6

solidDB 6.1 Cache for DB2 and IDS

New partner community

New Services and Solutions: Build or upgrade to an energy efficient data centerIBM Data Center FamilyTM

Enterprise Modular Data Center Portable Modular Data Center High Density Zone Mainframe z10AEM and z/VMPOWER 520/550 Express POWER 570/575/595Modular 3850 M2iDataPlex DS8000


Data centers are at a tipping point, driven by energy costs and usage

Increased Compute Demand Server growth 6x, Storage growth 69x this decade1

By 2011, blades will represent 26% of all server shipments2

Changing cost dynamics Data centers energy use doubling every 5 years3

New data center construction costs are increasing - $30 to $50M for a 20K square foot data center

Operating costs = 3x capital costs over 20 years

Data center lifecycle mismatch

78% of data centers are > 7 years old4

Technology densities are growing 20x this decade5 33% of managers expect data centers to last 30 years6

Meet Business & IT Growth

Reduce capital and operating costs for data centers

Reduce risk by providing more available and predictable data center operations

1. IBM and Consultant Studies2. IDC Worldwide Blade Server 2008-2011 Forecast, February 2008, IDC #2102293. Koomey, February 2007.

4. Gartner Survey Suggests Extensive Data center Expansion plans on the Horizon, G00154962, mike Chuba, February 2005. ASHRAE (find source)6. IDC The datacenter evolution: Technologies, Designs, People and Green, Michele Bailey, 2008


IBM’s global experience in data center design More than 100 implementations of custom and standardized design in the past 2-3 years

Scalable Modular Data center Custom data center


Data centers will have to grow 16x in 20 years if energy usage continues to double every 5 years. A new approach is needed.

02

468

101214

1618

0 5 10 15 20

Years

Da

ta C

en

ters


Energy consuming physical infrastructure accounts for 60% of the capital costs to build a new data centerNeed to optimize on energy costs rather than floor space, which is less than 10% of the cost

Mechancial20%

Power36%

Fit-Up Costs9%

Commissioning2%

Architect / Engineer5%

General Contractor Fee8%

Contingency9%

Shell7%

Instrumentation & Controls

4%

Mechanical Cost Breakout

Cooling Plant72%

RF Cooling28%

Power Cost Breakout

Generator45%

UPS27%

Power Distribution

28%


Energy costs are 50% of the facilities lifetime operational costs Operating costs are 3x the capital costs, highlighting the need to focus on energy efficiency

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Year

$ M

illi

on Energy Cost

Staffing

Bldg. Maint. & Mgnt.

R E Tax

DC Cost $17M

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Year

$ M

illi

on Energy Cost

Staffing

Bldg. Maint. & Mgnt.

R E Tax

DC Cost $17M


IBM’s Data Center Family provides a comprehensive set of capabilities to address your issues today

Turnkey data center for 500-2,500 sq ft Rapid deployment in 8-12 weeks 20% less cost than traditional data centers 15-30% improved energy efficiency

Standardized design in 5K modules up to 20K Level 3+ design for availability Leadership energy efficiency – 66% DCiE 25% faster deployment than custom approach Open architecture involving market leading vendors

Fully functional data center with multi-vendor support Portable - easy to relocate Targeted for temporary and remote data centers Rapidly deploy in 12-14 weeks Level 3 design; Leadership energy efficiency: 77% DCiE

“Plug and play” infrastructure to support high density servers in existing data centers Non-disruptive implementation 35% lower cost than retrofitting an existing data center

Scalable modular data

center

Enterprise modular data

center

Portable modular data

center

High density zone


Enterprise Modular Data Center allows for flexibility in capital and operational costs to address unpredictable IT requirements

Defer up to 40% capital costs until capacity requiredDefer up to 50% operational costs as capacity is required50% energy savings compared to existing data center

Align capital and operational cost to IT needs

5-10% upfront investment enables 3x density growth Up to 12x power and cooling capacity growth

Meet unpredictable business and IT growth

Provide expansion without downtime to operations Improve facilities management through standardized

operating environment

Provide available and predictable operations

Growth

Design to an “open architecture” Components from industry leading vendors Provides opportunities for OEM innovation

Chiller Generator

M/E

M/E

M/E

2x

3x

Up to 4xHorizontal

Vertical


GTS Server Consolidation and Virtualization ServiceSignificant savings from x86 to mainframe implementations

Cost savings: Based on IBM’s experience*, the following represents the typical savings that organizations may realize:

Hardware costs reduced 33-70 %

Maintenance costs reduced up to 50 %

Support costs reduced by as much as 33 %

Floor space and facility costs reduced 33-50 %

Servers account for 50-75% of the data center’s total floor space

Server sprawl is a challenge, resulting in high maintenance and support costs

Server utilization only 5-15% on average

Before Consolidation/Virtualization Servers typically account for only 20-50% of

the data center’s total floor space Consolidation ratios from 6:1 to 20:1 Typical TCO savings from 30-70% Server utilization rates up to 80%

After Consolidation/Virtualization

IBM GTS can help clients . . .• Realize ROI in as little as six months

• Reduce TCO by 30 percent to 70 percent

• Increase server utilization rates of up to 80 percent—in contrast to the more typical 5 percent to 15 percent

• Realize consolidation ratios ranging from 8:1 to 30:1

• Lower power and cooling costs by 10% to 30%

* Results will vary widely based on several factors including # of servers and work load types.


VMware Server Virtualization Services Help Clients Build a Solid Foundation for Optimized x86 Environments

Description:

IBM Server Optimization and Integration Services – VMware server virtualization can help clients build a solid foundation to an x86-processor based environment.

Potential benefits:Reduce hardware requirements by a 6:1 ratio or better Reduce hardware and operating costs by as much as 50% and time to

provision new servers by up to 70% Reduce energy costs by 10-40%.Save more than $3,000 per year for every server workload virtualized

Source: IBM Analysis, 2008


Enhanced Storage Virtualization

TS7530 Tape Virtualization

• New configuration and added functionality to existing and new TS7500 virtualization customers

• Curb storage growth in data centers to “go green”

SAN Volume Controller 4.3

• New Space-Efficient Virtual Disk ('thin provisioning') and Space-Efficient FlashCopy ('snapshot') functions

• New Virtual Disk Mirroring contribute to making data centers more "green"

• IBM has shipped over 12,000 SVC engines running in more than 4,000 SVC systems worldwide

Case studies show that an environment that appropriately blends in the use of tape for archiving and retention can reduce storage energy costs by as much as 10X

Deduplication case studies show energy costs reductions, for the required physical storage capacity requirements, reduced by 25x

Energy Efficiency and Storage


Introducing Tivoli Monitoring for Green EnergyNow all your IT compute data plus all your facilities metrics in one spot

Visualize the power consumption and thermal signatures of data center resources

Alert operators and facility managers before servers reach critical energy and temperature thresholds

Automate and control server energy usage to optimal levels, including triggers to third-party partners


Optimize the energy utilization of assets and extend asset life based on energy utilization via Tivoli Maximo Enterprise Asset Management

Visualize thermal dynamics of the data center and identify problem areas

Alert source for facility and DC “operators” of upcoming energy problems

Enable workflows that allow role-based automation of asset lifecycles

Introducing Tivoli Maximo Enterprise Asset Management Spatial Optimize assets by your energy usage


Tivoli Green Management(Monitor, Measure and Manage)

IT Assets

3rd Party Servers and Storage

Tivoli SoftwareIBM® Systems Director

and Active Energy Manager

Facility Infrastructure Assets

Data Center Infrastructure Assets

New IBM Tivoli Monitoring

Green Energy Adapters

New IBM Tivoli Asset

Management spatial

visualization

NEW: Broad base of Partners Enable Data Center and Facility Energy Management


IBM Service Management’s Green Data CenterUsing green data to accelerate infrastructure value to your business services

Intelligent Chargeback

Green BusinessServices

Optimize Assets byEnergy Usage

NEW! Tivoli Monitoring For Green Energy

Energy Aware Provisioning


Enabling a Holistic Approach to Green Agendas

Helps set, achieve, measure and verify green goals

Infrastructure Service

Management

Workloads PeopleFacilitiesSystems and DC equipment


For more information

IBM Project Big Green Analyst Briefing – Part 2: Beyond the Data Center – Enabling Green Agendas

Monday, June 16, 11:30 a.m. - 12:15 p.m. EDT (16:30 - 17:15 UK, 17:30 - 18:15 CEST)

To enroll, reply to Silvia Galgano at [email protected] or call 1-914-765-6183

About our technology partners and our collaborationAPC analyst briefing, webcast and teleconference

Monday, June 23, 11 a.m. - 12 p.m. EDT

Contact: Lori Giuttari, [email protected] 401-789-5735, ext. 3660


IT Industry Analyst BriefingPart 1 – June 10, 2008

Project Big Green II Expanding the Scope

Steven Sams andChris O’Connor


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© 2008 IBM Corporation June 10, 2008 1 IT Industry Analyst Briefing Part 1 – June 10, 2008 Project Big Green II Expanding the Scope Steven Sams and Chris