© 2008 IBM Corporation Leonardo Ferri, Director Tivoli Southwest Europe Valencia, April 9th 2008 IBM Tivoli Service Management Center for System z Creating

© 2008 IBM Corporation

Leonardo Ferri, Director Tivoli Southwest Europe

Valencia, April 9th 2008

IBM Tivoli Service Management Center for System zCreating and Managing Value

© 2008 IBM Corporation2 Software Group -

Agenda

Market and Business Challenges

Tivoli Strategic Directions

Tivoli Service Management Center for System z

The Power of Green


IT Trends and Issues Impacting Europe

“Virtualization will continue to make headlines in 2008. It’s expanding into just about every nook and cranny of the data center, and is proving to be a very useful tool for a wider array of situations.” -- InformationWeek, Jan. 29, 2008

“One-third of IT spending now occurs outside of North America, Western Europe, and Japan. This development will create new innovation in IT, new competitors, new usage patterns, and continued cost improvement benefits for users.”

-- Gartner, Oct. 27, 2007

“By 2011, suppliers to large global enterprises will need to prove their green credentials via an audited process to retain preferred supplier status.”

-- Gartner, Jan. 31, 2008

“81 per cent of European consumers are concerned about the risk of others accessing and misusing their personal information. In particular, 78 per cent of Germans cite this as a significant worry …”-- Unisys European Security Index, 2007


Inability to Innovate

Increased focus on development project spend due to higher % of costs going to keeping the lights on … creates a dual focus of doing the right thing and doing things well

2005 2006 2007 20080

50

100

150

200

250

300

350

Rising Cost of Operations

The cost of operations continues to increase at 10% CAGR … twice the rate of the IT budget

0

50

100

150

200

250

300

350

2005 2006 2007 2008

CIO’s Top Priorities Are to Deliver Business Agility and Innovation While Retaining a Resilient Business

Complexity

Compliance

Distributed application topologies have created enormous complexity

Changing regulatory environment requires security, privacy and ongoing audit capabilities

Rate of change and risk of change affecting service delivery

Change


IT Organizations Face Many Operational ChallengesChallenges

Rising costs of systems and networking operations

Management of data and information requirements

Difficulty in deploying new applications and services

Security of your assets & your clients’ information

Landslide of compliance requirements

Systems and applications need to be available

Rising energy costs & rising energy demand

Power & thermal issues inhibit operations

Environmental compliance & governance mandates

Costs & Service

DeliveryBusiness Resiliency & Security

Green

“Enterprises report that IT operational

overhead = up to 70% of IT budget and

growing . . . leaving precious few

resources for new initiatives.”

Forrester, 2007


Tivoli’s Service Management strategic direction and organic development

What’s happening with the

infrastructure?

How does this relate to the

business service?

Service Management PlatformService Management Platform

Event Management

Business Service Visualization

Process Automation

What actions do we take to correct the

problems?

5 Labs in Europe more than 1.000 Developers - Italy,UK,Neth.,Poland,Ireland

22 Software Company acquired 7 since 2006 - $1.6+ billion invested

Solution Areas : Business Automation, Performance Automation, Storage, Security, Storage,Asset Management

Multiplatform, use of international standards, ITIL

Virtualization and optimization of IT assets : ‘’ Project big green ‘


Enabling Business and Technology Integration

Business & Technology Assets

IBM Service ManagementIBM Service ManagementIBM Service ManagementIBM Service Management

VisibilityVisibilityVisibilityVisibility ControlControlControlControl AutomationAutomationAutomationAutomation

Provides the integrated visibility, control & automation across business and technology assets needed to achieve business

objectives.

Business processes

IT ProcessesBusiness Assets

Information TechnologyPeopleInformation

Business Objectives

Compliance & Risk Mitigation

Capital & Operational Expense Control

Growth &Competitive Edge


Visibility: See Your Business

Challenge: Business and operational audiences lack the visibility

to directly support and deliver against business objectives

Solution: Targeted real-time dashboards Integrated Business, Compliance, and Operational

dashboards leverage existing assets and provide the real-time visibility needed to manage against business objectives.

ROI Examples: A global consumer products company cut IT

operational costs by 10%, despite a 15% increase in workload

A major insurance provider reduced network events by a factor of 10, saving hundreds of thousands of Euros and improving customer service

Any data. Anywhere. For any audience. In real-time.

Industry, LoB, & Executive Dashboards

Risk, Security, & Compliance Dashboards

Operational, Service, Customer, & IT Dashboards


Challenge:

Inability to detect and mitigate network security violations in a timely manner due to a highly complex infrastructure with high volume of events.

Solution: Threat & Vulnerability Management • “Ahead of the Threat” managed service offerings provide

automated correlation and real-time monitoring of over 750 network security devices and 60,000 desktops and servers globally.

ROI Examples:

Major U.S. wireless and telco provider enjoys 75% reduction in security incidents that negatively affect business operations and a 98% reduction in time to mitigate incidents

Mitigate risks and stay in compliance

“Cyber espionage is getting renewed attention as fresh evidence emerges of online break-ins at U.S. research labs and targeted phishing against corporations and government agencies here and abroad.”

-- Network World, Jan. 17, 2008

Control: Manage Risk & Compliance


Client Challenge: Oberfinanzdirektion Karlsruhe lacked a clear picture of

overall IT performance across its diverse infrastructure It wanted a single view and single point of control for all

platforms to improve availability while reducing costs

Solution: A new monitoring infrastructure based on an IBM eServer

zSeries 990 and several IBM Tivoli software products, including Tivoli Monitoring and Tivoli OMEGAMON

Benefits: A single point of control for monitoring all applications,

which has streamlined the office’s monitoring processes. Can see potential problems sooner - and address them as

soon as possible - which helps to avoid system downtime. System z server provides a robust platform for the client's

mission-critical CICS solution and batch processing jobs, which has improved the client's system stability.

Industry: Government

Profile: Oberfinanzdirektion Karlsruhe is the regional finance and tax office for the German state of Baden-Wurttemberg. It employs more than 23,000 people.

Control Success Story: Oberfinanzdirektion Karlsruhe


Challenge:

The operational processes that directly support delivery of revenue generating business services and processes are not automated or integrated.

Solution: ‘Operational’ Automation

Automates and integrates the operational processes and tools that directly support the delivery of critical business services and processes – to help maximize productivity and reduce new labor expense, while improving service assurance.

ROI Examples:

Retail firm cut recovery times by 50%

Financial services firm increased the ratio of auto-closed events by 59%

Automating operations for greater business agility.

“The more we can simplify, streamline and automate processes, the better we can manage the growing complexity … we must handle business growth with our existing resources. IBM technology helps us achieve greater levels of efficiency at a lower cost.”

Erwin Schaefer, Swiss Reinsurance

Automation: Build Agility into Your Operations


Value DriversFacing a growing number of industry regulations and increasing sophistication of its business services, ING needed to reduce the time and cost of managing employee access to information while ensuring staff could quickly respond to business change.

SolutionWorking with IBM Global Services, ING launched an innovative Entitlement Program powered by IBM Tivoli, WebSphere and System technology that will help reduce costs, improve staff productivity and enhance security,

Value Realization Total projected savings of €15 million (US$20 million) a year Projected 50% reduction in the number of administrators assigned to support identity management processes within 18 months Anticipated 25% savings in help-desk administrative costs; Ability to reduce time and cost associated with regulatory reporting Ability to reduce turn-on time for new users from 10 days to less than 24 hours

Automation success story: ING actively secure data and services worldwide

“Effective identity management helps us maintain our reputation for excellence, protect the security of sensitive, private information and enable our employees to deliver the fast service customers expect..“

— Dion KottemanProgram Manager

Global Information Risk Management

ING


Triple asset utilization

Provision new resources in minutes

Eliminate 80% of outages

40%+ more energy efficient

Reduce floor space by 80%

Reduce disaster recovery time by 85%

- reallocating resources from operations to innovation

A Service Oriented Data Center has Far-Reaching Benefits


Enabling clients to visualize their System z as a hub for the efficient management of enterprisewide business and IT services

Secure, scalable and highly available

Providing a single service automation solution across all systemsExploit System z advantages by driving mainframe-level process automation and service management across the enterprise

Providing Service Automation within System z

Extend System z operations automation with process automation and service management through IBM Tivoli Service Management Center for System z

Announcing: IBM Tivoli Service Management Center for System z


Yet IT Organizations are Hampered by Operational and Platform SilosSystem z is often managed as a silo – apart from Distributed systems

www

Lab

or

Co

st

WebService

Invocation

SAPProcesses

EvaluateDB2SQLs

CICSProcesses

Time

J2EE App Experts and

Tools

SAP Experts

and Tools

Desktop Experts

and Tools

Database Experts

and Tools

Mainframe Experts

and Tools

Network Experts

and Tools

StorageExperts

and Tools

Operational and Platform Silos

Sp

ectr

um

of

op

erat

ion

al p

roce

sses

Automate tasks within domains

Automate tasks across domains

Govern the way processes are

executed

Automate Business & IT interactions


Efficient Service Management Spans all Platforms, all ProcessesS

pec

tru

m o

f o

per

atio

nal

pro

cess

es

Automate tasks within domains

Automate tasks across domains

Govern the way processes are

executed

Automate Business & IT interactions

System z Distributed Systems

“IBM’s goal is to truly manage the IT service, with the focus on providing the company with a strategic advantage and using its supporting technology to do just that. “

- Evelyn Hubbert, Forrester Research, IT as Just Yet Another Shared Service, January 7, 2008


IBM Tivoli Service Management Center for System z

Enabling clients to visualize their System z as an integrated, enterprise-wide highly available, scalable and secure hub for end-to-end alignment and efficient management of business and IT services

Providing Service Automation within System z

Extend System z operations automation with process automation and service management through IBM Tivoli Service Management Center for System z

Providing a single Service Automation solution across all systems

Exploit System z advantages by driving mainframe-level process automation and service management across the enterprise, providing a choice to customers for managing services end-to-end


Best Practices and Services

Optimized Infrastructure

Process ManagementProcess Management

Service Management Platform


Operational ManagementOperational Management

Incident & Problem Management

Change & Release Management

Business Service Management

Discovery & Relationship Mapping

Federated Configuration Archive

Process Automation Engine

Financial Management

Operations & Production

ControlMonitoring Security

Optimize your Data Center forAll Platforms, All Processes


IBM Tivoli Service Management Center for System zEnabling clients to strategically use their System z as an integrated, enterprise-

wide, hub for the efficient management of business and IT services


Best Practices and Services

Optimized Infrastructure

Process ManagementProcess Management



Operational ManagementOperational Management

Optimize your Data Center forAll Platforms, All Processes


Introducing IBM Tivoli Service Management Center for System zEnabling clients to strategically use their System z as an integrated, enterprise-

wide, hub for the efficient management of business and IT services

IBM Tivoli Service Request Manager

IBM Tivoli Change & Release Management

IBM Tivoli Business Service Manager

IBM Tivoli Application Dependency Discovery Manager (TADDM)

IBM Tivoli Change and Configuration Management

Database (CCMDB)

IBM Tivoli Service Request Manager

IBM Tivoli Accounting & Usage Manager

IBM Tivoli System Automation &IBM Tivoli Workload

Automation

IBM Tivoli Netview for z/OS, OMEGAMON, IBM

Tivoli Composite Application Manager

IBM Tivoli Identify Manager, IBM Tivoli

Access Manager and zSecure


Tivoli Business Service Manager Improve the alignment of IT objectives and business objectives

Tivoli Application Discovery & Dependency Manager Improve operational visibility

Tivoli Service Request Manager Improve end user satisfaction and control over incidents

Tivoli Change & Configuration Management Database Improve business control

Tivoli Business Continuity Process Manager Improve business resilience

Tivoli Security Management Improve business integrity

NEW

NEW

NEW

NEW

NEW

NEW

Completing System z and Completing Your Enterprise


IBM Tivoli Service Management Center for System zProcess automation and business service management for your Mainframe and your enterprise

Tivoli Service Management Center for System z

Service Management: TBSM & TADDM Process Automation: CCMDB, TSRM & Process Managers

Management & Monitoring

OMEGAMONITCAMPD & Admin Tools

Operations & Production

Control

OMNIbusSATWSNetView

Security Management

zSecureRACFTCIMTFIM/TIM

Financial Management

TAM for ITTLCMzTUAMTDSz

Extend System z operations and production automation with process automation and service management through IBM Tivoli Service Management Center for System z

NEW


IBM Provides Flexible Ways to Implement Service Management

Traditional silo-ed management implementation:

IBM Service Management implementation:

Operations and Production ManagementSecurity ManagementFinancial Management

Hosted on System z

Process AutomationService Automation


Hosted on Distributed Systems

Integration

Integration

System z Distributed Systems

Choice of Platforms

Process AutomationService Automation



IBM’s Project Big Green


Customer Challenges

Lack of Sufficient Electrical Power– The University at Buffalo installed a $2.3 million Dell supercomputer

– Upon delivery, officials discovered there was only enough power for 2/3 of the system.

– A $20,000 electrical-system upgrade was required

Escalating Energy Costs Eroding Profits– International Data Corporation (IDC - Doc #204904, Dec 2006)

– "Between 1996 and 2010, server spending is will remain flat, but energy costs are expected to increase 8X

Lack of Sufficient Data Center Cooling– Pomona Valley Medical Center is a California hospital whose data center grew from 30 to 70 servers.

– The heat generated overwhelmed the A/C system, temperatures reached 92o, and machines behaved erratically.

– In 2003, an air-conditioning unit broke down, sending the temperature over 100 degrees.

– The event caused a shutdown of systems serving the hospital's laboratory, $40,000 in damage to servers and hard drives, and prompted a $500,000 retrofitting of the cooling system.

Government Regulations Driving Greater Energy Efficiency in Data Centers– The US Environmental Protection Agency (EPA)

– The EPA was directed by federal legislation (H.R. Bill 5646, now public law 109-431) to study and promote the use of energy efficient computer servers in data centers.

– Energy Conservation Center of Japan (ECCJ)

– Passed similar legislation to that of the EPA.


Servers are more energy-efficient and use less power–Monitors servers and shows past, present, and future (forecasted) utilization rates

–Add workload to existing servers and avoid installation of additional ones

– Saves MONEY, energy and space

Achieves Service Level Agreements (SLAs) while using less electricity

–Adjusts application response times to use less power while still meeting SLAs

Holds Users Accountable for IT resources used–Tracks cost of power consumed

–Provides reports showing who was responsible for power consumption

Improves Asset Management for Greater Energy Efficiency-When to replace systems with newer, more energy efficient-ones

Facilities Management–Map and visualize data center facilities

–Air conditioning, water pipes, power outlets, power distribution units

–Obtain information on power, cooling, temperature, layout, hot spots

IBM Green Data Center Solution Solves Customer Challenges


z10 EC offers a 15% improvement in performance per kWh over z9 EC ResourceLink™ provides tools to estimates server energy requirements before you purchase

a new system or an upgrade Z10 has energy efficiency monitoring tool

– Introduced on IBM System z9 platform in April 2007

– Power and thermal information displayed via the System Activity Display (SAD)

New IBM Systems Director Active Energy Manager (AEM) for Linux on System z V3.1– Offers a single view of actual energy usage across multiple heterogeneous IBM platforms within the

infrastructure

– AEM V3.1 energy management data can be exploited by Tivoli® enterprise solutions such as IBM Tivoli Monitoring, IBM Tivoli Usage and Accounting Manager, and IBM Tivoli OMEGAMON® XE on z/OS

– AEM V3.1 is a key component of IBM’s Cool Blue™ portfolio within Project Big Green

Tracking Energy Consumption within the Infrastructure


IBM Tivoli Netcool

IBM Tivoli Maximo IBM Tivoli Workload Scheduler

Monitor Consumption Take action-alerts Application vitality

Reduce Consumption Consolidate resources Standby resources Eliminate resources

Reduce Expenses

Job scheduling during off-peak hours

Maximize Efficiency

Maintain assets for efficient operations

Automate Utility Management

Apply IT like management to utility grids

• IBM Tivoli Provisioning Mgr

• IBM Tivoli Intelligent Orchestrater

• IBM Tivoli TotalStorage Productivity Center

IBM Tivoli MonitoringIBM Tivoli OMEGAMON IBM Tivoli Composite Application ManagerIBM Tivoli Change and Configuration Management Database

Tivoli Solutions Help Address Energy Management


Delivering Energy Efficiency and Reducing Environmental Impact

Visualization, trending and analysis

Virtualization andworkload mgmt.

Impact and footprintassessment and reporting

• Applying Tivoli’s event health, performance and automation capabilities to optimize resource consumption and minimize power requirements while maintaining service levels and workload throughput.

• Working with partners to deliver comprehensive green datacenter implementations to customers including dynamic workload management and carbon footprint assessment and reporting.


A new global mega-event for Tivoli,

Showcasing the full scope of IBM Service Management solutions

More than 4,000 attendees from around the world

Featuring the leading thinkers, analysts and visionaries in the service management industry

More than 350 IBM technical experts onsite www.ibm.com/software/tivoli/pulse08

May 18-22, 2008 Orlando, FL, USA

IBM Pulse: The Premier Service Management Event

© 2008 IBM Corporation30 Software Group -30

IBM Service Management Center for System zProvides a competitive differentiator for End-to-End z Inclusive Service Management

VisibilityVisibilityRespond Respond faster and faster and

make make better better

decisionsdecisions

ControlControl

Improve Improve quality and quality and reduce riskreduce risk

AutomationAutomation

Lower Lower costs and costs and

build build agilityagility

#1 in System Management Software - IDC

#1 in Worldwide IT Operations Management - Gartner (6th consecutive year)

Highest Rated, OvumSummit ITSM Vendor Report Card

Leader, Datamonitor Vendor Comparisons for ITSM and Desktop Management

#1 in System Management Software - IDC

#1 in Worldwide IT Operations Management - Gartner (6th consecutive year)

Highest Rated, OvumSummit ITSM Vendor Report Card

Leader, Datamonitor Vendor Comparisons for ITSM and Desktop Management



System z Growth Transformation Requires a New Approach

The changing role of the mainframe is a catalyst for disruption– In addition to the classic strengths, the mainframe addresses today’s

business challenges:• Security• TCO• Energy efficiency

– Extending management and control capabilities across heterogeneous platforms

• Enterprise security• Enterprise resiliency / Back up• Enterprise workload management• Data and SOA

New management requirements are needed to accommodate the new role

– The need for management simplification to leverage new skills on System z– Transformation from legacy platform management to managing z as a hub

for mixed enterprise workloads, server virtualization and end to end services

– Evolution from systems to service management• Align IT with business• Bridge organizational gaps• Eliminate operational inefficiencies

IBM Tivoli is uniquely positioned to help customers meet these challenges


What does zService Management Center enable?

zService Management Center solutions provide the required visibility, control and automation across the service, technical support,

operations, security and financial domains and enable the transformation from a z resource management focus to a centralized

z service management model

Visibility

zService Management Center solutions provide the enterprise wide visibility to ensure reliable service delivery and efficient management of business and IT services

Control

zService Management Center solutions help to gain control of the assets, security, resource utilization and costs of service delivery

Automation

zService Management Center solutions help you to automate operational tasks and processes across the enterprise reducing manual errors, complexity and cost


What makes SMCz better than Competition?

Visualization

UI integration strategy that unifies ETE business services, IT operations and process automation– CA, BMC and HP have multiple UI with limit process integration creating system management silos– BMC has no consolidated System z and distributed Operation Dashboard – HP has no z management capabilities

Control

A federated configuration management system for data integration with automated discovery and application mapping of System z relationships– CA CMDB is on Windows & Unix only with weak reconciliation, federation & change analytics

– BMC has multiple discovery products, complex configuration and requires a Rip and Replace migration

– HP has multiple CMDBs with weak dependency visualization with no z relationship mapping

Consolidate Enterprise & IT Asset Management – BMC, CA & HP do not have EAM capabilities

Automation

Exploit System z advantages by driving mainframe process automation and service management across the enterprise– CA has no notion of automation with system management products for both Distributed and System z

– None of the competitors have cross-platform high availability and disaster Recovery

– HP has no automation for z/OS

Only SMCz enable customers to use their System z as a enterprise high

availability, scalable hub for ETE Service Management


“We consulted several vendors, and it was clear that IBM had the edge in terms of innovative ideas.” – Art Gloster, Bryant University CIO

Case Study: Green Data Center Reduces Power Expenses

Business ChallengeUnderstand and Manage Energy Usage Integrate power and thermal metrics with IT workload Understand energy usage and control power Reporting and analysis for potential energy credit Automated energy policies Extension to equipment ecosystem

IBM SolutionTivoli Green Data Center Power & thermal correlation in a single pane of glass Manual and automated power policies Realtime & historical trending with asset data Business analysis & holistic view for data center planning.

Business BenefitsUnderstanding and Control of Energy Improved understanding of energy usage Proactive energy efficiency and conservation Prioritized needs and business objectives. Improved ROI on capital via better utilization/planning

IBM Director Active Energy ManagerTivoli Maximo Spatial

ITM Green Energy Manager

Tivoli Usage and Accounting Manager

Documents

© 2008 IBM Corporation Leonardo Ferri, Director Tivoli Southwest Europe Valencia, April 9th 2008 IBM Tivoli Service Management Center for System z Creating