#GOVANALYTICS2017

Analytics and AI: Infrastructure that Really Matters Andras R. Szakal VP & CTO IBM US Federal

#GOVANALYTICS2017

•  The multi-cloud trend

•  The Cognitive Systems opportunity

•  Infrastructure requirements for the modern data platform

•  PowerAI

•  Scaling storage

•  z Systems architectural options

•  Wrap up

Agenda

3

To remain relevant organizations must continuously reinvent themselves by creating…

More compellingcustomer experiences

Innovative newbusiness models

Fast and flexibleoperational processes

80% of CxOs are experimenting with different business models or thinking of doing so2

100+ Global enterprises have launched internal incubators in the last 3 years, including Airbus, Barclays, Telstra and Target3

81% of companies place the personalized customer experience in their top three priorities, with 39 percent reporting it as their top priority1

Digital businesses innovate 6x faster than their peers 4

The Cloud market is maturing into an environment for innovation & business or mission value…

Cost Efficiency

Value

Essential Integration

3 Business Value High value solutions

Cognitive apps

Advanced analytics

Internet of Things

2 Innovation PaaS-centric

DevOps tooling

Web & Mobile apps

Basic analytics

Hybrid integration

1 Cost & Speed IaaS-centric

Virtual compute

Low cost storage

Traditional app hosting

5

Enterprises are increasingly turning to multi-cloud environments

+ New data sources IoT, social, weather, video…

New apps and services Analytics, blockchain, marketing…

Innovation communities Open, developer, industry, cognitive…

Data Customer, transactional…

Applications ERP, CRM, BSS, DL, ML..

Expertise Industry, domain, customer…

Public (n) Private (n)

Getting new value from third parties

Extracting value from your entire business

6

Hybrid (multi-cloud) is the path to business outcomes…

percent of hybrid leaders report that hybrid cloud is accelerating digital transformation in their organization.*

85

Speed

Innovation Insight

Flexibility change only what you need to change to get value faster

leverage cloud services, open communities and emerging technologies (cognitive, blockchain, IoT, etc.) to maximize opportunity

combine your data with new sources of data to get to the best outcomes through application of cognitive, big-data and analytics

positioning workloads to best deliver on business objectives

Hybrid cloud is a combination of cloud and traditional IT working in unison to deliver value to customers, suppliers, employees, & partners.

CIOs report that 16% of workloads now run in a public cloud, growing to 41% in 5 years

Barron’s Tech Trader Daily, April 2016

DEDICATED

PUBLIC

ON-PREMISES

PRIVATE

7

How does IBM address the multi-cloud market?

DevOps Productivity

Choice with consistency

Cognitive Solutions

Powerful, accessible data and analytics

Hybrid Integration

Microservices connect on-prem and cloud and create cognitive insights into the on-prem software

The broadest range of standards-based tools and technologies for app development and a versatile PaaS for easy deployment

Seamless workload portability and high speed data transfer makes data available wherever it’s needed. Fit for purpose AI systems.

30+ APIs into the world’s leading AI, Watson, to embed cognitive insights into your apps, services and processes

All IBM Software is now cloud-ready, and designed around the broadest support for open technology & partner ecosystems

Open and in control Leverage existing investments

8

What our clients are trying to do

Create new multi-cloud

apps

Optimize workloads and data for best fit

Connect legacy apps to cloud

services

•  Use the latest tools •  Release faster, more

often •  Embrace DevOps tool

chains •  Incorporate user

feedback quicker

•  Lift and Shift selected apps and data to cloud for better agility and economics

•  Place data and analytics for best cost/risk/performance profile

•  Open up trusted apps and data to innovation, securely

•  Maintain governance •  Enable apps to use new

sources of data •  Build new business

models across ecosystems

9

Trend: New data hungry professionals are driving need for new infrastructure and tools

Need to build applications that ignite change Make applications adaptive, intelligent and scalable

Need to create and act on insights faster Ask questions and discover new ideas on your own

Need to discover hidden insights from data Share and collaborate with the business

Need to harness the power of data Wrangle, mine and integrate internal and external data

Data Scientists

Data Engineers

Business Professionals

App Developers

10

Data Lake (relational and new data stores)

Deep Learning

Break tasks into Deep Neural Networks

Advanced Analytics

(Augmented with AI

Methods)

Human Intelligence Exhibited by Machines

Cognitive / ML / DL

“Trained” using large amounts of data & ability to learn how to perform the task

The Cognitive Systems Opportunity – Scope and Impact

Machine Learning Prevent

fraud

Predict terrorist attacks

Personalize customer journeys

Prevent disease

11

Apply Analytics, Cognitive to On-Prem Data Lake (relational & new data stores)

Deep Learning

Advanced Analytics (Augmented with AI)

Cognitive

Machine Learning

Cognitive

AIX, IBMi Data

Data Lake

IBM Watson Cloud Gateways

& APIs

Public Clouds

Advanced AI powered by IBM Cognitive Systems

in IBM Next Generation Cloud

Cognitive/AI Deployment Options: Private/Hybrid Cloud

12

Clients journey through the modern data platform in the cognitive era

Integrating data across the org •  Established

data teams

•  Planning for execution

•  Hire data engineers

•  Chief Data Officer

Executing, but growth pains •  Corporate data

strategies defined

•  First gen x86 cluster farms, public clouds

•  x86 server sprawl, cloud data security, compliance issues

Taking it to next level •  Apply

Patterns

•  ML/DL projects

•  AI projects

•  Cognitive, learning organization

•  New modalities

New business insights are unleashed along the journey

Getting serious about data

•  Defining data teams

•  Hiring data scientists

•  Forming data

models

•  Developing data views by team

Getting started

Linking it together

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The Modern Data Platform - Core elements of the cognitive era

Data Sources

Data Lakes Data Management

Streaming

Advanced Analytics Open Source DBs

Insights

Cognitive Workloads

INGEST PERSIST ANALYZE & ACT THINK & AUTOMATE

14

Analytics reference architecture using data lake pattern

•  Multi-stage

•  Most often Hybrid solution

•  Many different software tools

15

The Modern Data Platform

Data Lakes Data Management

Streaming

Advanced Analytics Open Source Databases

Insights

Cognitive Workloads

PERSIST ANALYZE & ACT THINK & AUTOMATE

Data Sources

INGEST

Tradi&onalDataSources

Third-PartyData

Transac0onalData

Applica0onData

NewerDataSourcesMachine&

SensorData

Image&Video

EnterpriseContentData

SocialData

InternetData

HadoopSpark

Rela&onal/Transac&onalDatabases

Data

Warehouses

NoSQLDBs

BusinessIntelligence

andRepor0ng

SenseandRespond

DiscoveryandExplora0on

MachineLearning/

DeepLearning

Predic0ve

Ar0ficialIntelligence

OpenSourceSQL

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Power delivers 1.8 - 2X+ greater value on POWER8 than x86

IBM Power Systems guarantees the Power S822LC for Big Data system built with POWER8 delivers at least a 2X price-performance advantage vs. x86 based servers when running a customer application/workload based on MongoDB. (NA and UK Only, all other geos reviewed individually)

IBM Power Systems guarantees the S822LC for Big Data system built with POWER8 delivers at least a 1.8X price-performance advantage versus x86 based servers when running a virtualized customer application/workload based on EnterpriseDB Postgres 9.5.

Why IBM Power for the Modern Data Platform

Experienced Results

3 minutes less call center hold time

3x better server capacity vs. x86

INGESTDataSources

PERSISTCreateSingleView

Solution needs and capabilities • Healthcare changes, competition impacting client satisfaction and retention • New call center app requires flexible data model and variety of data sources •  Speed, agility needed by developers for new apps and digital transformation

ANALYZE&ACTSenseandrespond

Employer

BlueCross

Medicare/Medicaid

Doctor/Specialist

Hospitals/Labs

Pa0entinfo

Insurancecoverage

Xrays,MRIs

Lab,testresults

Billingrecords

Examrecords •  Real-&meanswers

•  Follow-upsscheduled•  Highercustomersat

Single view of client

Providing affordable healthcare across Florida for nearly 70 years

Healthcare industry example

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Business Value Real-Time Fraud Prevention•  $MM recaptured in savings•  Increased revenue & customer

satisfaction due to decreased false positives

Graph-Based Analytics•  Increased effectiveness of Data Science

Team•  Months of Analysis now done in minutes

& hours•  Graph-based visualization accelerates

complex analysis of patterns

Typical Customers

Graph-Based Sense & Respond Architecture

Financial Services

Government Neo4jCluster

Visualization UIFine Tune Patterns

Relational Database

RDBMS

Data LakeBulk load

Neo4j-graph powers new Fraud Detection UI, with holistic 360-views of transactions in real-time.

Customers perform online transactions

Transactionstream

Alerts & notifications

Data-Science TeamDevelops Patterns

IBM WatsonCognitive Pattern

Recognition

SENSE RESPOND

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Enabled by High Performance Computing Infrastructure

Package of Pre-Compiled Major Deep Learning

Frameworks

Easy to install & get started with Deep Learning with Enterprise-Class Support

Optimized for Performance To Take Advantage of

NVLink

Introducing PowerAI: Accelerate adoption of Deep Learning

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High Performance Cores

Fast & Large Memory System

Fast PowerAccel Interconnects for

Accelerators >2X vs. CC* 4-5X Memory Bandwidth

3X Cache vs. CC* NVLink 1.0 5x vs. CC*

CAPI NVLink PCIe Gen3

P8

Faster PowerAccel Interconnect for

Accelerators OpenCAPI / NVLink 2.0

7-10x vs. CC*

OpenCAPI NVLink 2.0 PCIe Gen4

P9

For compute-intensive workloads, accelerators are key to Cognitive/AI economics Power high-performance core, bandwidth, accelerator differentiation

P8

*Note: CC = Closest Competition

Power partnerships with accelerator industry players: Nvidia GPU, Xilinx, AMD GPU

PowerAI: Designed for Cognitive

21

Optimized Platform for Cognitive System Data Management

P8 P9 P10

Open Frameworks

Partnerships

Industry Alignment

Dev

Eco

syst

em

Accelerator Roadmaps

Open Accelerator Interfaces

Not Just About Hardware Design…

hardware

software +

It’s about co-optimized

IBM Software

…which only works for ML, DL, and AI

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23

Open Source Workloads Now hyper-focused on expanding Cognitive/AI industry applications

Enterprise Support/Subscription model

OpenPOWER 300 OpenPOWER members contribute to 87 OpenPOWER ready products and 17 servers delivering choice to industry

Close partnership with major AI/accelerator industry leader Nvidia

Open Frameworks Highly optimized & accelerated Cognitive/AI frameworks

Cognitive/AI SDK for deployment and deployment tools

OpenCAPI High bandwidth open interconnect to attach to accelerators and SCM

OpenAI: Built with collaborative innovation …with open ecosystem partners across the stack

CAFFE NVCaffe Torch IBMCaffe

TensorFlow

OpenBLAS

Theano Deep Learning Frameworks &

Building Blocks

Accelerated Servers and

Infrastructure for Scaling

Spectrum Scale: High-Speed Parallel

File System

Scale to Cloud

Cluster of NVLink Servers

Recently Announced

Bazel

DIGITS NCCL

Distributed Frameworks Chainer

PowerAI: True AI System Platform

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•  NVLink between CPUs and GPUs enables fast memory access to large data sets in system memory

•  Two NVLink connections between each GPU and CPU-GPU leads to faster data exchange

P100GPU

Power8CPU

GPUMemory

SystemMemory

P100GPU

80GB/s

GPUMemory

NVLink

115GB/s

P100GPU

Power8CPU

GPUMemory

SystemMemory

P100GPU

80GB/s

GPUMemory

NVLink

115GB/s

PowerAI: The NVLink advantage

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PowerAI: Recommended configuration for S822LC

Required •  2 POWER8 10 Core CPUs •  4 NVIDIA P100 ”Pascal” GPUs •  256 GB System Memory •  2 SSD storage devices •  High-speed interconnect

(IB or Ethernet, depending on infrastructure)

Optional •  Up to 1 TB System Memory •  PCIe attached NVMe storage

26

PowerAI: Quickly capturing the market – Finance Industry Example

On Prem & Cloud

Accel DB

Database

Industry Solutions

Software Libraries Frameworks, Services

Infrastructure

Data Layer

Accelerators GPUs, FPGAs, CAPI Flash,

DL Accelerators

Unique Power Technologies NVLink, CAPI

ML/DL Building Blocks

vRealize

27

Object Storage – Key to building analytic / cognitive solutions

Market Leader Gartner 2016 IDC 2014 – present

Innovation Leader: •  400+ patents •  Software-defined/hardware aware •  Multiple customers with 100 PBs

Tackling massive unstructured data growth with hybrid cloud storage. Use Cases: archive, back-up and content repository, cognitive, analytics, IOT, mobile data etc., on prem, on cloud, or hybrid

Hybrid

Off-Premises On-Premises

Traditional Storage

Hybrid cloud storage with industry leading flexibility, scale and simplicity

28

Data on z/OS Analytics on Linux

Data & Analytics on Linux

Data & Analytics on z/OS

z/OSandLinuxonzSystemscommunicateatmemoryspeedthroughfast,internalRemoteDirectMemoryAccess(RDMA)

DB2LUW Oracle Mongo

DB

...

DB2 VSAM QSAM

...

DB2BLU VSAM QSAM

...

z/OS

Linux

z Systems and LinuxOne – Many architectural options…

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Global Ecosystem . .

. Analytics Customer

Engagement Security Healthcare Financial IoT Services . .

.

Data (Public, Private, Partner)

Industry and Domain Specialization Integrated Solutions

Services

Hybrid Software and Systems

Data (Public, Private, Partner)

IBM's Platforms and Capabilities: Ready for ML/DL & Cognitive

IBM Systems are designed for cognitive workloads and cloud scale— for every industry

Systems z Systems and LinuxONE

Flash and Software Power Systems Defined Storage and OpenPOWER

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IBM Cognitive Systems – Infrastructure that really matters

Open Infrastructure that provides a range of platform solutions – 3 – 5x price/performance target in cognitive workloads

LinuxOne, OpenPOWER, PowerAI, CleverSafe

Platforms that delivers truly open infrastructure with open source solutions with industry leading partners like

Hortonworks, MongoDB, EnterpriseDB, and more

World class service and support from IBM, the premier Cognitive Expert

PowerAI - the world's leading enterprise distribution and support for open-source machine and deep learning frameworks used to

build cognitive applications 31

THANK YOU QUESTIONS?

#GOVANALYTICS2017