Linux is Ready for Business

Carol HollimanLinux Business Area Leader, Global SMB

(405) 321-4077

[email protected]

Linux Is Ready for Business!Small and Medium Business Focus

What is Linux

• UNIX-like operating system developed by Linus Torvalds • Version 2.4 available

• Developed / tested by the Open Source community • Highly disciplined / structured• High quality• Secure• Stable

• Packaged and shipped by distributors • SCO Group (Caldera)• Red Hat• SuSE• Turbolinux• Other regional distributors (Red Flag, Conectiva, Mandrake, etc...)

UnitedLinux = Open Industry Consortium

Linux Distributors Combine their Power

• Concept• Binary-compatible Linux distribution, branded "UnitedLinux" • Initial Members: SCO Group (Caldera), SuSE, Turbolinux,

Conectiva• Open to others

• Business Model• Distributors add software and services• Distributors maintain brand names with "UnitedLinux Inside"• UnitedLinux promotes the brand, issue memberships,

certifications, manages requirements• SuSE acts as UnitedLinux systems integrator

• Implementation • Supported by all IBM eServer platforms, key middleware• Worldwide language support, standards based (e.g. LSB 1.1,

LI18NUX)

Linux will become the dominant server operating system in the United States by 2005.

Stacey Quandt, Giga, Business 2.0, June 17, 2002

Linux will have a "breakout year" in 2002. Now it seems clear that Linux has become a viable alternative for enterprise use.

IDC, January 2002

By 2006, Linux will be a key foundation for a strategic, cross-development-platform environment, accelerating Unix server consolidation, while creating a powerful alternative to Windows .NET.

Gartner, May 2002

Linux Momentum

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Server Shipments by OS% Growth

2001 2002 2003 2004 2005 2006

2003 Linux 2003 Linux surpasses surpasses

Unix in server Unix in server shipmentsshipments

Linux Linux CAGR CAGR 35%35%

Linux Windows Other

IDC, Enterprise ServerFundamentals, March 2002

Cost Effective

Reliability

Performance

Open Standards

0% 20% 40% 60% 80% 100%Source: IBM Market Research 2001

"It's going to be almost 30 times cheaper to run and maintain" (than Sun systems)

Josh LevineChief Administrative Officer and President, e*Trade Technologies

Linux Value

Recent Linux News

• German Department of Interior chooses Linux• "With the contract with IBM we meet three key targets: we raise

the level of IT security by avoiding monocultures; we lower the dependency on single software vendors; and we reach costs savings in software and operation costs.“ Otto Schily, German Minister of the Interior

• Walmart selling $299 Linux PCs• Lindows distribution (allows some Windows programs to run on

Linux)• Full compliment of Linux client software

• VA Software chooses DB2, WebSphere Application Server for SourceForge.net

• World's largest Open Source collaborative development web site

Grow the Market

Win in Linux "High Affinity" Segments

Increase Size of Opportunity and lead in market fan out

Prepare for FutureMove Linux into mainstream and emerging markets

Gain share in current segments while driving expansion into adjacent segments

Technology assets Product enablement Enterprise-class support Educate and energize the field and

business partners

Integrated solution focus

Focused industry execution

Expand into SMB

Drive standardization

Enterprise-class features

Open, pervasive ADE

Blade Technology

Grid

Webservices

Infrastructure

Scientific Clusters

e-businessCommercial

ClustersTelco carrier-grade

Business Applications

Integral component to IBM's open strategy

IBM Linux Strategy

Customers considering Windows Alternative

Technology maturing with enterprise server and client functions

Market Lifecycle progressing

• Microsoft Software Assurance Program• Governments legislating Linux• .Net closed - limiting choice

• Scale-up competitive at 8-way and evolving

• "Carrier-grade" reliability, serviceability

• GNOME 2, KDE 3, OpenOffice 1 viable

• Eclipse open source desktop framework• Workload usage maturing

• Technical computing in full swing• Industry vertical ISV support starting• Sectors expanding - Industrial, Retail, Financial• Enterprise customer usage increasing• Heightened vendor support

Trends: Linux Market Broadening

HighAffinity

GrowthMain

stream

Open, standard application framework

Preferred Government Linux partner

Open, comprehensive application development

Application client focus

Fine Tuning IBM Strategy to Market Trends

Workload Consolidation Linux Clusters

Distributed Enterprise

Infrastructure SolutionsApplication Solutions

How Customers are Deploying Linux

Consolidation Clusters

Distributed

SMB Customer Successes

• Infrastructure Servers• File/Print• Web/Application• Application dev.• Content/Caching• Security

• Advantages:• Low cost• Highly reliable• Turnkey• Rapid setup• Innovative packaging

Optimized eServer and IBM Software for Linux

• Infrastructure Software• DB2 Universal Database• Domino collaboration• Tivoli Systems

Management• MQSeries messaging • WebSphere Family for

application development

• Advantages:• Scalable• Open standards• Industry proven

Infrastructure Solutions

New Zealand Special Effects CompanyWeta Digital

• Challenge• Improve system

performance/reliability without increasing costs for special effects company producing effects for the Lord of the Rings movies

• Solution and Benefits• IntelliStation and Linux systems

operating as standalone units linked by Gigabit ethernet network

• Dual Xeon IBM IntelliStation MPro workstations running Red Hat Linux

• IBM Linux Supportline • Lower hardware acquisition cost and

much higher system performance

xSeries KDI School

• Company• The KDI School of Public Policy and Management was established

to educate and develop the next generation of leaders• KDI offers an innovative educational program focusing on policy

and international issues. • Challenge

• KDI needed to build an Internet-based video conferencing system for overseas communication with research institutes and universities.

• Solution and Benefits• IBM provided video conferencing system composed of xSeries 342

servers, Linux and various Internet-based software, including Codec, Rear Projection and PDP technology

• Two IBM x342 servers used as appliance systems for broadcasting and streaming

• IGS Integrated Technology Services (ITS) provided end-to-end service to establish this system from the system design to tuning and testing

• KDI School selected the Linux-based system solution because Linux is a robust and reliable platform with better price/performance.

• KDI expects that it can save more than 30 percent in travel expenses due to the IBM solution

DB2 on TurboLinux

"We have not had any trouble after the service-in. We realized this was really a reason for our customers in media industry to use our mail system. We can now appeals our ad-mail systems as very reliable. We now really understand that a reliable system can only exist on a reliable infrastructure"Hirotaka Fukuoka, COO Ergo-Brains Inc.

Ergo-Brains Inc.

• Company• Ergo-Brains manages an Internet-based community to which it

delivers e-magazines and opt-in e-mails. • Ergo-Brains was established in 1997 in order to pursue the

possibility of marketing on the Internet. As an opt-in e-mail advertisement agency, it currently has more than 1 million subscribers.

• Challenge• Frequent system problems with the burden of heavy workload,

it needed a secure, stable and scalable e-business infrastructure for its rapidly growing e-business.

• Solution and Benefits• Integrated customer database on DB2 for Linux.• The new database provides the customer with a highly-available

infrastructure • Significantly improved performance, scalability and stability of

its business infrastructure, delivering a significant business advantage.

• Other Benefits: Maximized cost/performance ratio, Increased performance

Hundreds of Successful Customers

Infrastructure Successes

Consolidate Workloads Across the Organization

• Workload Consolidation• Replace many with few• Optimize assets

• Advantages:• Reduce costs • eServer proven reliability• Virtualize servers• Dynamically manage workloads• Enabled across all eServer products

Simplified Infrastructure with IBM and Linux

Switched platforms from Window NT server farm to IBM zSeries GuideOne

• Challenge• One of the largest specialty insurers and the 85th

largest property and casualty insurer in the U.S. • Excessive hardware and software maintenance

costs and lack of the availability, reliability and security needed.

• Solution and Benefits• IBM revitalized the insurer's IT infrastructure

with a new S/390 G5 server running Linux, along with DB2 Connect and MQSeries middleware.

• US$1.2 million in infrastructure cost savings over 30 months, as well as additional savings in software and server support costs.

• By replacing the 20 Windows NT servers with the S/390, GuideOne has reclaimed more than 500 square feet in its data center and reduced total power consumption.

Switched platforms from Sun/Cobalt to IBM - Server Consolidation

Note: Dialtone Internet was recently acquired by Interland

www.dialtoneinternet.com

"Using the IBM xSeries servers here at Dialtone has helped us optimize overall reliability, scalability, and server performance for our customers in a highly cost-effective manner"Alvaro Albarracin

Area Vice-President of Dedicated Hosting

Dialtone Internet

• Challenge• Fort Lauderdale, Florida-based Dialtone Internet, offers

dedicated hosting services for SMB customers• 80 Employees, 1300+ SMB clients, $8M revenue in 2001,

2200 servers• Needed to handle increasing client load and growth in server

farm more efficiently

• Solution and Benefits• xSeries and pSeries hardware• Tivoli for systems management• Established 650 NEW SMB customers in 5 months• Improved price/performance• Reduced HW and systems management costs

Linux zSeries Consolidation of Web Infrastructure

"Linux on the S/390 allows us to consolidate in a very cost effective way" Isaac Arismendi, Banco Mercantil

Banco Mercantil

• Challenge• Offer corporate, commercial and personal financial

products• NT Servers costly and unmanageable• Need reliability and systems management allowing

for workload growth• Solution and Benefits

• Phase 1 - Replaced 30 NT file, Internet domain, and firewall servers with zSeries running Linux

• Phase 2 - Move applications from Unix to zSeries/Linux/DB2

• Reduced administrative support • Higher availability• Improved price/performance• Reduced HW and systems management costs

"We chose to deploy Linux on zSeries servers because it provides a robust platform that meets our expected growth in mission-critical applications."Harry Roberts, Chief Information Office, Boscov's Department Stores, LLC

Family Owned Department StoreBoscov's Department Store

• Challenge• Provide scalable IT environment for mission-critical

applications• Manage increasing complexity and costs of large, growing

server farm• Improve systems availability, scalability and backup and

recovery• Solution and Benefits

• Consolidation of server farm applications on SuSE Linux running on IBM zSeries servers

• Affordable support for incremental application growth• Reductions in costs, networking hardware and management

resources, server administrators and floor space• Increased availability for applications vs server farm

environment

Hundreds of Successful Customers

Workload Consolidation Success

IBM Solutions for Complex WorkloadsLinux Clusters

• Clusters with Linux:• Computationally intensive workloads• High performance computing• Horizontal scalability

• Advantages:• Supercomputing performance at • "mass market" prices• Choice of eServer architecture

• IA 32, IA 64, or PowerPC• Industry leading IBM cluster software

• GPFS - General Parallel File System• CSM - Cluster Systems Manager

• IBM factory installed and delivered

"Through our strategic alliance with IBM, we are applying breakthrough information technology to improve our understanding of how proteins function in order to put drug

design and development on a faster track." Christopher Hogue, MDS Proteomics' Chief Information Officer

Canadian Leading Proteomics-based Drug Discovery Company

MDS Proteomics

• Challenge• Analytical capability to determine gene and protein function • Access and manage data 24x7• Design novel small molecule drugs & capacity for expansion

• Solution

• 3 100 node xSeries 330 Clusters• pSeries H80, M80, and 680 servers• DB2 Universal Database, Enterprise Storage Server• IBM Linear Tape Open library system• Tivoli fault-tolerant, cluster-based system management

• Benefits• Fast, robust, scalable and disaster-tolerant system• Enhanced development capabilities• A scalable relational data management • Improved availability and reliability of system and network• Consolidation of information into a virtual database to address

complex medical problems

British Columbia Cancer AgencyGenome Sequence Center

• Challenge• Find innovative means to automate the gene sequencing

and fingerprinting process• Dramatically increase compute power, capacity and

speedy storage within cost constraints• Solution and Benefits

• 40 xSeries 330's• 3583 Ultrium Scalable Tape Library• Linux• Cluster Management Software• Life Sciences Applications• Improve ability to access and integrate massive amounts

of genomic data for sequencing research - quality of research

• Improve scalability within space & cost constraints• Improve data accessibility with Tape Library without the

online costs• Develop leadership role in Research Field

Linux ClustersDupont Photomask

• Challenge• Minimize photomask development by

increasing computational speed• 99.9 percent availability

• Solution• Linux cluster of 10 xSeries servers • RedHat V7.1

• Value• 3X the processing power of existing NT

servers• Reduced run time from days to less than

4 hours • Reduced photomask development/testing

cycle

Renaissance Technologies

• Challenge:• Lead Wall Street with the best hedge fund

performance, while improving IT price/performance

• Leverage technology to create a competitive advantage

• Remain in existing data center, without increasing floor space or system management personnel

• Solution and Benefits:• IBM xSeries 330 Intel servers rack mounted and

clustered• Increased price performance over incumbent Sun

6800 servers• manage multiple parallel quantitative analysis with

faster response time

Medallion Fund – Outperforms the Street

Dozens of successful deployments in all industries

Linux Clusters Success

Distributed Applications to Serve Many Locations

• Distributed solutions with Linux:• Geographically dispersed• Serve more customers or employees

• Advantages:• Low cost, small footprint eServer• High reliability and stability• Secure• Easily replicated• Centrally managed• IBM worldwide support and

implementation

Replicate Function Across the Enterprise

Distributed LinuxChina Post

• Challenge• Cut cost and increase efficiency across 1,200

branch locations and 2,000 total locations• Transform manual record keeping and data

collecting to an electronic system• Set up an e-Post branch office

• Solution• IBM xSeries 200s running Linux

• Value• Increased revenue• Reduced cost• Improved customer service and customer

satisfaction

Innovative Point of Sale SolutionSherwin-Williams

• Challenge• Major manufacturer with over 2,600 outlets• Needed to upgrade point of sale system plus

provide e-mail, intranet and Internet capabilities• Solution

• Custom IGS Services for Point of Sale • NetVista for in-store processing

• Benefits• New functionality provided for the stores for

POS, e-mail and Web• Web browser and StarOffice as new

capabilities• Reduced administrative support • Higher availability

• Redundant servers and diskless POS PCs • Improved price/performance

Distributed Successes

Affordable Integrated Solutions for Linux

Tivoli

IBM Middleware IBM

Server Software

Linux Distribution

ISV/VAR Application

xSeries iSeries pSeries zSeries

WebSphereDB2Lotus

Application Solutions

• IBM Business Partner and ISV Solutions• Enable e-business initiatives • Deliver industry vertical applications• Leverage Business Partner and ISV

expertise• Advantages:

• Bundled eServer / IBM middleware / ISV application

• Low cost• Optimized solutions• Reduced implementation time

Tommy Hilfiger selected technologies from IBM, including IBM products such as iSeries and xSeriesTM servers running Red Hat Linux®, for Web based transactions, DB2® Universal DatabaseTM, JavaTM and eOneGroup's suite of software products to expand its presence

Challenge Expand presence among retailers and worldwide manufacturing

facilities and employees

Solution New B2B portal that allows retailers to view available inventory in

real time and place, track & ship orders Business-to-plant website that links worldwide production facilities Virtual employee store that allows employees to shop online

Benefit "IBM's server interoperability and application flexibilityenabled lower

costs and increased revenue..... the manufacturing portal and employee store are expected to produce substantial cost savings and tommyb2b.com has already proved productive and efficient for specialty store retailers with limited travel budgets.“

Dan Watson, President of eOneGroup

e-business Infrastructure Tommy Hilfiger

Consolidate e-mail on Linux for zSeries

"Bynari Insight Server gave us a more cost-effective alternative to Microsoft Exchange, ... it showed us that Linux for the mainframe is ideal for enterprise applications. ...it's not only more reliable but it's also just cheaper and easier to run."

Dave Ennen, Technical Support Manager at Winnebago.

Winnebago

• Challenge• Upgrade e-mail - problems with calendaring and attachment corruption• Minimize impact to existing Microsoft Exchange users• Cost significantly less than US$100,000 to upgrade

• Solution and Benefits• Bynari Insight Server for e-mail and calendar• SuSE Linux virtual server under VM/ESA in an IBM Multiprise 3000 model

H30• Benefits

• Savings of US$75 thousand in software• Higher availability of a mainframe solution

Netfinity Cluster

"Working with IBM, we were successful in providing a mission-critical solution against a competing proprietary UNIX solution that would have cost DEODEO four times as much money."

T. Paul Thomas

CEO, TurboLinux

DeoDeo

• Company• Hiroshima, Japan-based consumer electronics retailer that operates 112

shops directly and 381 shops through franchises in Japan• One of the largest retailers in its market, DEODEO has a customer base

of 13.5 million people. 80 Employees, 1300+ SMB clients, $8M revenue in 2001, 2200 servers

• Challenge• Launch a virtual shopping mall using data mining techniques to establish

one-on-one relationships with customers• Needed to handle increasing client load and growth in server farm more

efficiently• Solution and Benefits

• IBM (5) clustered Netfinity 3000 servers, running TurboLinux operating system and Java technology; sixth server for sysadmin offsite. Core of project is Oracle 8 Database.

• Total Cost of Ownership less than comparable Unix system; superior end-to-end growth and risk management capabilities; mainframe-class scalability, reliability and security on one high-powered server system

• Turbolinux supports Japanese language• Generated US$20 million in new business via its CyberCity Web site• Customer satisfaction has increased as a result of the stability of the

Netfinity/Linux platform and its low TCO

Is It Real?

The Myths of LinuxIs It Real?

• Linux doesn't scale

• Linux isn't ready for the Enterprise

• Linux porting is difficult

• Linux lacks business applications

• Linux isn't secure

• Linux skills are scarce








"We chose DB2 running on Linux based on its stability, scalability and performance. There's almost no end to DB2's advantages, which include high efficiency, fast querying and search speed, and the ability to store very large amounts of data."

Dr. Napthali RisheDirector, Florida International University High Performance Database Research Center

Fact: Linux Scales

• Database - world record TPC-H benchmark• DB2 v7.2; 4 Intel® 900MHz PIII Xeon processors• 74% faster than the best Windows-based result

• File Serving• PC Mag's file servers performance tests ... Linux with Samba significantly

outperformed Windows 2000, 11/01• Linux's throughput was 78% faster

• xSeries - record ECperf Linux performance• WebSphere v4.03; 9 node xSeries 330 cluster with 2 x 1.266 GHz PIII processors• Near linear scalability from 1 to 9 servers• 86% of the performance; 29% of cost of top HP-UX/BEA benchmark

• zSeries 12-way Server running WebSphere - Linux vs Solaris• 12-way zSeries Linux partition = 36-way (9 X 4 CPU) Sun 420R servers at 100%

utilization• Linear scalability for multiple Linux instances and users








*Standish Research Group 2001

Fact: Linux is Rock Solid

• In a Cluster Environment Peak Operation Downtime Per Year*

• Microsoft...........30 hours • Linux..................14 hours

• Google runs on Linux• 100+ million queries per day • Average response times less than half a second

• IBM service/support• Level 1-2-3 support for all eServer platforms running Linux








"Several large projects of moving Unix-based applications from 100 KLOC to 600 KLOC have been completed. Most were completed in about two months and only required a small percentage (1% or so) of the code to be modified in any way."

SoundView Technology Group"Linux Momentum in Europe Appears to be Strong", June 13, 2002

Source: * IBM Canada** "Migrating Mail and Web Servers to Linux", D.H. Brown*** "Unix-to-Linux Migration — An Easy Journey", Giga

Fact: Porting to Linux is Easy

• Porting Solaris applications to Linux*• 80+% of APIs are identical• Less than 15% require simple translations or masks• Less than 5% of APIs may require rework

• D.H. Brown**:• Migrating UNIX web servers to Linux is one of the

easiest migration scenarios in the industry. • Some users and deployment specialists report one day or

less time to migrate small installations.








*Evans Study March 2001

www.ibm.com/software/solutions/isv

Fact: ISVs Adopting Linux

• 3,800 Linux applications in IBM Global Solutions Directory• Includes Distribution, Retail, Industrial, Health, Finance, Media and

Petroleum• 90% increase since April, 2001

• Eclipse: open-source, integrated foundation for app development• Supported by 150+ ISVs

• Business Partner firms supporting Linux grew from 600 to 4500+• 650+% increase in little over 1 year

• IBM actively recruiting ISVs for SMB• Full PartnerWorld support • Linux Lens • 9 WW IBM Porting Centers for Linux

• Chicago, Waltham, San Mateo in the US• Over 30 IBM Strategic Alliances formed with target ISVs since March 2002

ISVs Adopting Linux








"Gartner recommends that enterprises continue to weigh open source review as a positive factor in the security of software."

Gartner Group, "Microsoft Sends Mixed Signals About Software

Security", May 13, 2002

Fact: Linux is Secure

• The Open Source development process• Darwinian -- structured/disciplined• Exposed vs. hidden

• "World Governments Choosing Linux", AP, 12/1/01• "Chinese, French and German govts ... adopting Linux over MS "• "Security experts ... agree computers are less prone to hacking and

viruses when running open-source software like Linux"• The US National Security Agency embracing Linux

• Investing to develop Linux security enhancements• "...Window's inherent instability and susceptibility to hacks are now

becoming major issues to corporate and government buyers.""Microsoft's Global Insecurity Complex", Business2.0, June 17, 2002








"If your IT organization supports UNIX today, you are well positioned to support Linux. UNIX skilled programmers can easily and quickly develop into Linux programmers."

Harry RobertsSVP and CIO, Boscov's, Inc.

Fact: Linux Skills are Easy to Learn, Widely Taught, Transferable from UNIX

• IBM Linux Scholars Challenge• 1,462 students entered• 664 colleges represented

• IBM Learning Services• 40 courses• www.ibm.com/training/spotlight/linux

• Universities embracing Linux• MIT, UC Berkley, City Univ. of NY, Univ.

of Texas, Loyola College, Univ. of Cincinnati

• National Univ. of Korea, Beijing Univ., Osaka Univ.

A Commitment to Linux across the Entire BusinessLinux @ IBMx

• 1100+ servers WW• Internal Linux Projects:

• www.ibm.com/linux & w3.ibm.com/linux• redundant xSeries Linux servers

• Intranet search engine• xSeries servers; Inktomi search engine

• IGS Internet Vulnerability Security Scanning• 61 xSeries scanning 30k IP addresses/ week

• Performance monitoring• 24 xSeries servers• 75% fewer Linux servers than NT servers for

same workload• IBM Global e-Mail Anti-virus Management

• xSeries scans incoming/outgoing mail for viruses

• 300mm Wafer Manufacturing Equip. Control• Much more reliable than Win2000• 159 xSeries; 300-400 by year end

A Commitment to Linux across the Entire BusinessLinux @ IBM

• Linux Technology Center• "Help make Linux better"• 250+ developers, 21 sites working within the open source community

• Linux Integration Center• Technical consulting, proof of concepts, benchmarks

• Open Source Development Lab• Enabling Linux and Linux-based applications for data center and carrier-

class deployment• Linux Porting Centers• Linux CoC for Finance - NYC

• Assist financial services customers testing and implementing Linux applications

• Linux for Service Providers Lab• Assist telecomm service providers, network equipment providers and ISV's

test and implement Linux solutions• 2,000+ Linux-skilled IGS professionals

• 250+ developers worldwide• 70+ active projects• Significant contributions to 2.4 and upcoming 2.5 kernel:

• Cluster Management• System Management• Network security• Networking• POSIX Threading• Reliability

• Scalability• Scheduler• Security • Serviceability• Internationalization• Journaled Filesystem

• Linux Standards Base• Free Standards Group• Linux

Internationalization• Linux Test Project

• Trusted, valued members of the Linux Community• Open Source Development Lab• Linux ATM Project• Linux Token Ring Project• USAGI (IPV6) Project• GNOME Foundation• KDE League

IBM's Contribution to Linux

• iSeries: • iSeries Linux edition - 820• Reliable / Scalable • Up to 31 Linux Partitions • Integration with OS/400• Resource sharing and management• I/O Flexibility

• zSeries:• zSeries 800 for Linux• Many Linux servers on a

single HW platform (thousands)

• Unmatched scalability• Large applications portfolio • Simplified Systems• Management• Runs in an LPAR • or on z/VM• zSeries - 64 bit & 31-bit• Reduced cost of ownership

• xSeries• xSeries 343 for Telco• X-architecture innovation• OS freedom of choice• Affordable, Scalable, Reliable • Appliances• xSeries 335, 305 Xeon rack-

optimized servers • Clusters (1300,1350):

• Integration and testing of IBM & OEM

• Speed to market• xSeries rack optimized servers

• pSeries:• Native Linux 32-bit & 64-bit • Linux Virtual Servers on server

p690 and server p670• Linux affinity on AIX 5L• I/O Bandwidth and RAS• Multiplatform flexibility

IBM Family Supports Linux

The Technology That OutperformsIBM Blade Center

• Performance Density• 2X density of existing 1U rack solutions• Latest, highest performance Intel processors • Comprehensive set of storage alternatives

• Affordable Availability• Unprecedented redundancy• No single point of failure = 24x7 availability

• Network Integration• Integrated Ethernet Switch = increased density • Simple management of switches with Common Director interfaces

• Modular Scalability• Ideal platform for "Scale Out" enterprise applications • Power/packaging/cooling designed with room to grow• Infiniband ready = investment protection

• Solutions available across all product linesScalable

Modular

Flexible

Standards based

Reliable

Transaction Integration

• Open is the world's new direction

• Eclipse: An open tool platform contributed by IBM to an independent open source organization

Leverage Information

Leverage Collaboration

Systems Management

• Solutions at lowest TCO

• DB2 for Linux currently up to 50% off

IBM Middleware is Ready Today!

Training

• 5 languages; 20 countries• All eServers• Web-based and classroom• Cluster workshops - New!

Web Hosting• xSeries• zSeries Linux• e-Sourcing

• Clusters• Support Line• x1350 Installations• OEM Procurement• Hardware Setup• Software Installation

•Middleware Enablement

• DB2• WAS• MQSeries• ISV's• QuickStarts

•Workload Consolidation• File/Print, Webserving• Bynari, Sendmail coming '02• Linux Solution for e-business• Application Porting• Solaris to Linux Migration

•Technical Support• Support Line• Account advocate• Advanced Support• All eServers including clusters• 24/7

Managed Operations GridGrid Computing WorkshopConsultingDesign/ArchitectureDeployment

IBM Services for Linux

Helping you stay ahead of the competitionAssessment

Education

Enablement and testing

Deployment

Evolution and growth

Start the journey now . . . and reap these benefits

The IBM Managed HostingApplication Enablement Program

• Offers a step-by-step, structured approach, helping reduce risk and shorten time to market

• Extends your market reach, thanks to lower customer deployment costs• Gives you access to new business models• Offers flexible compensation methods to help meet your needs• Includes go-to-market planning and support• Allows you to leverage the IBM brand in your service delivery and

marketing activities

IBM PartnerWorld Program

IBM Leadership Edge for Linux

Solutions Edge for

Linux

Enablementi/zSeries Test DrivesxSP PrimePorting centersServerProvendeveloperWorks

MarketingStart Now SolutionsProvenIBM ^ Solutions Connection

Global Solutions Dir.

• Enablement:• Sales & Technical Training

• Trained over 1,500 partners

• 50% increase since January 2002

• Partners driving 25% of IBM Linux Sales

• Partners participating with IBM at Linux & industry events

• New server Integrated Platform for e-business designed for partners

Ready, Set, Linux and

Go!

Leaders for Linux

EnablementSupport & educationCertifications / incentivesStart Now SolutionsLinux Lens

MarketingLinux events &roadshowsCampaign DesignerBP Connections

MarketingSales force linkageSales acceleratorsCo-marketing incentivesEvent participation

Industry specificBrand-specificIBM sponsored

Partner Linux Programs: Sustained Leadership

Our key go to market Linux Business Partners

PlatinumBlue

Leaders for Linux

Web Presentation

Servers

Web Application

Servers

Directory and

Security Servers

TransactionServers

DataServers

N e

t w

o r

k

Storage

Integrated Platform• Fully integrated Linux-based platform

for Java applications and Web Services

• IBM pre-architected, tested and optimized for popular e-business workloads (based on IBM patterns for e-business)

• Dramatically reduced time to solution

• IBM engineered security and reliability

• An IBM StartNow solution

• Initial support from ISVs includes eOneGroup, Selectica, Marcole

• Linux Distribution - SuSE

IBM Integrated Platform for e-business

Solution Components• WebSphere Application Server• DB2 (optional)• Security & Directory software• Firewalls• xSeries servers (other series in future)• Available through select IBM partners

www.ibm.com/servers/eserver/linux/integrated/

Customer Reference

e-business with Linux Just Got Easier...

Customers

Business Partners

Suppliers

Employees

Exploiting Linux for Competitive AdvantageIBM is Ready to Help You:

• ...get educated

• ...assess what's happening in your company

• ...develop your strategy

• ...pick and implement a pilot

• Information:

• www.ibm.com/linux

• Contact:

• [email protected]

Summary

• Linux market is maturing• customer-proven implementations• dramatic increase in applications

• infrastructure to business aps

• Linux value proposition is strong• significant $ savings• enhanced reliability • greater flexibility

• IBM has the most comprehensive portfolio of SMB offerings and best support for Linux

• IBM is an excellent partner for ISVs

Moving fast, having fun

Real World Solutions for your Business

Linux for SMB

Carol J. HollimanLinux Business Area Leader, Global [email protected]

Linux for SMBSolving Real Business Problems

What does Linux Bring to iSeriesƒ Applications

ebusiness infrastructureNew generation of web-based applicationsProvides flexibility and choice of environmentEase delivery of open source components

ƒ Resources and SkillsLeverage virtual world-wide development teamBroad skill base to deliver iSeries solutionsLeverage other IBM investments in Linux

What does iSeries Bring to Linuxƒ Ability to consolidate multiple Linux serversƒ A reliable, scalable server to run Linuxƒ Support for Multiple Linux Partitionsƒ Resource sharing and management ƒ Integration with OS/400

Linux and iSeries

Linux on iSeries Advantages

• Server Consolidation• OS/400, Linux, and Windows 2000 Server• Support for up to 31 Linux partitions

• Resource Sharing• Partitioning• Shared Processors, Dynamic Movement• Virtual I/O: Disk, LAN, Tape, CD-ROM

• Minimal Hardware Requirements for a Linux Environment• Part of a processor, memory• Virtual I/O: Disk, LAN, Tape, CD-ROM

• Reliable Server• Leading single server availability• Unique virtual disk support provides excellent test/development environment

• Storage Area Network facilities• Full OS/400 system backup provides disaster recovery for Linux virtual disks • Linux backup saves daily Linux files changes direct to iSeries tape device

• OS/400 Integration

The open-source server

Packaged set of hardware and software products for workload consolidation.

• Designed to be used with a Linux Operating system purchased from one of the three participating vendors, Red Hat, SuSE or Turbolinux.

• iSeries Model 820 with one, two, or four processors

• Up to 32GB memory - 8TB disk

• Supports up to 15 Linux partitions.

• Wizard for simple Linux installation and LPAR setup

Buy a new Linux Edition 820ƒ Eligible configuration - end user receives rebateƒ $11,600 - $40,000ƒ SuSe, TurboLinux or RedHatƒ Invoice purchase date on or after 3/26/02ƒ Can be combined with other offeringsƒ Announcement letter: 502-054

IBM eServer iSeries Wins "Best of Show"LinuxWorld

San Francisco, CA August 28-30

iSeries Linux Edition (820) - Offering

zOL020

zSeries Offering for Linux

• Build server for server consolidation• Support flexible business growth

• One to four enabled Linux processors• Protect IT investment

• Open standards provide adaptability, flexibility, versatility• Offer virtualization capability to run 20 to many hundreds of Linux images• Deliver high performance, scalability, availability, security and connectivity

• Incorporate advanced zSeries architecture• HiperSockets - speed up the communication of the virtual Linux images• Hardware Assisted Cryptography - enhances the security• z/VM™ Virtualization Technology - enables server consolidation

• Reduce Total Cost of Ownership• Reduce complexity through consolidation of UNIX, Windows and Linux

applications to Linux on zSeries• Provide attractive package price, terms, and conditions

zSeries Offeringfor Linux

IGS

Maintenance& Support

IGF

IBM^

z/VM

zOL030

Packaged Offering zSeries Technology

• zSeries Hardware• z800 Model 0LF• 1 to 4 Integrated Facility for Linux engines• Memory pre-configured to match enabled processor configuration• Includes FICON™ and OSA Connectivity

• zSeries Virtualization Technology• z/VM Version 4

• zSeries Maintenance• 3 years hardware warranty and maintenance• 3 years z/VM Subscription and Support License

• TOTAL Solution Financing - optional• Financing options available from IBM® Global Finance

• IBM Global Services - optional, such as:• IBM Support Line Software Services for Linux• IGS Linux Rapid Deployment Solution

Description

•A unique workshop to help you evaluate Linux and Open Source options in your business

•You will walk away with a customized, high-level Linux strategy created just for you that links business and IT goals

•Most industries and companies of any size

Benefits

•Map existing business initiatives to Linux technology solutions

•Prioritize business value and technical feasibility of implementing Linux

•Create a Linux high-level strategy and action plan

Business and IT gain integrated strategy for implementing Linux and Open Source

Linux Strategy Workshop

Documents

Linux is Ready for Business