Implementing a Dynamic Infrastructure

The Value of IBM System z® and the Road Ahead

The following charts cover IBM's future direction and intent and are subject to change or withdrawal

without notice, and represent goals and objectives only.

Rick Sewell rsewell@au1.ibm.com

Trademarks

29th July, 2009 2

The following are trademarks of the International Business Machines Corporation in the United States and/or other countries.

The following are trademarks or registered trademarks of other companies.

* Registered trademarks of IBM Corporation

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Java and all Java-based trademarks are trademarks of Sun Microsystems, Inc. in the United States, other countries, or both.

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Intel, Intel logo, Intel Inside, Intel Inside logo, Intel Centrino, Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, Itanium, and Pentium are trademarks or registered trademarks of Intel Corporation

or its subsidiaries in the United States and other countries.

UNIX is a registered trademark of The Open Group in the United States and other countries.

Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both.

ITIL is a registered trademark, and a registered community trademark of the Office of Government Commerce, and is registered in the U.S. Patent and Trademark Office.

IT Infrastructure Library is a registered trademark of the Central Computer and Telecommunications Agency, which is now part of the Office of Government Commerce.

IBM*

IBM Logo*

DB2*

Dynamic Infrastructure*

GDPS*

HyperSwap

InfoSphere

Parallel Sysplex*

Power Systems*

RACF*

System x*

System z*

System z10

Tivoli*

z10

z10 BC

z/OS*

z/VM*

z/VSE

zSeries

Agenda� Industry challenges

� Managing future scale

� Managing future complexity

� The role of IBM System z® in the Dynamic Infrastructure

� Today

� Future

� Tivoli in an IBM System z® Dynamic Infrastructure

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IMPROVE SERVICE

REDUCE COST

MANAGE RISK

Industry Challenges

� Vertical processor performance plateau

� Power wall

� Clock speed wall

� Memory wall

� Linkage/management of disparate technologies to support end-to-end business processes

� Islands of computing

� Proliferation of footprints

� Management costs

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Coping with physical limits

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� The industry is hitting fundamental

physical limits:

� Size

� Speed of electromagnetic

propagation

� Heat transfer rates

� Large CPU speed increases are a

thing of the past, across the

industry

� Capacity increases will increasingly

come from higher n-way, more

multithreading, and NUMA

optimisation

� Demand for lower latency will

drive co-location of hybrid

transaction processing elements

“In terms of size [of

transistor] you can see that

we're approaching the size

of atoms which is a

fundamental barrier, ….”

Gordon Moore, April 2005** Techworld, Operating Systems and Servers News,

13 April 2005

Single CPU Speed n-way capacity

I/O rate

Bandwidth

The IT model is shifting … real-time event-driven workloads, richer

content, and modular technologies alter the composition of systems and

how systems are deployed and managed

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� Platform Virtualisation Capabilities are improving the efficiency of single purpose workload images

� Platform management software for Virtualisation is emerging aimed at reducing cost and complexity and providing transparent quality of service to software hosted in the virtual image of today’s compute-intensive applications

� Application software and middleware is becoming more platform agnostic

� Real-time, event-driven processing is driving the opportunity for specialised acceleration & offload engines

� Multi-core/thread x86 designs are becoming key drivers for system performance

DS Servers

LAN Servers

SSL/XMLAppliances

CachingAppliances

RoutersSwitches

FirewallServers

Security/Directory Servers

Application Servers

File/Print Servers

Application & Data Servers

Web Servers

System z

The composition of today’s data centre introduces challenges in

managing the delivery of critical business services to intended cost and

service objectives

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� Complexity and fragility

� Increased management (labour) costs

� Increased power/cooling costs

� Reduced flexibility and responsiveness

� Quality of service issues

� Under-utilised capacity

� Inability to relate the management IT resources to business objectives

Opportunity

� IBM System z® and its evolution to a well managed, integrated, hybrid platform provides an opportunity to

deliver enhanced function, and to further simplify, consolidate and reduce the costs of managing IT

infrastructure

� The ability to integrate, virtualise and coherently manage the multiple and varied processing elements of a

deployed business service, in accordance with stated business objectives, is the focus of this set of extensions

to the IBM System z® platform.

SSL/XMLAppliances

Application Servers

Application & Data Servers

Web

Servers

System z

Emerging applications . . . with hybrid transactions

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Future objectives include complete application integration in an optimal fashion

Special purpose

systems and

accelerators

General Purpose

Enterprise

systems

Evolving & Emerging Workload Components

Both General and Special Purpose capabilities needed because of increasing transaction variability

Integration will be critical

Networking

Optimised for a

specific set of

applications or

components

Optimised for

a broad set of

applications

or components

Traditional

Workload

Components

XMLJava

Analytics Data

Protection

SOA

Sensors

Events

Search

Digital Media

. . .

Encryption

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IBM System z® strategy

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� Further simplify, consolidate and reduce the costs of an IT

infrastructure

� Integrate, virtualise and coherently manage the multiple and varied

elements of business applications

� Scale up and leverage System z strengths in data serving

Innovate to address the IT infrastructure challenges of today

and the future

� Invest for continued leadership in IBM System z®:

performance, Virtualisation, enterprise security, enterprise

business continuity

� Extend IBM System z® best of breed capabilities to a broader

set of workloads

� Deploy optimised technologies for specific applications or

components

Extend strengths of IBM System z®

• Recruit new solutions and solution providers and

integrators

• Expand skills and capabilities across the globe

Expand the ecosystem and support core applications that

our clients want

IBM System z® innovations for a dynamic infrastructure

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… IBM System z® delivers extreme business value through industry leading security,

availability, scalability, Virtualisation and management capabilities

IBM System z®

IMPROVE SERVICE

� Dynamic, policy based, and automated SOA

infrastructure

� Adapt and respond quickly to changing

business imperatives

REDUCE COST

� Industry-leading Virtualisation, energy

efficiency, and scale

MANAGE RISK

� Secures your business, reduces risk, builds

trust and confidence

� Superior qualities of service allows clients

to run their businesses reliably

IMPROVE SERVICE

REDUCE COST

MANAGE RISK

Virtualisation

Energy

Efficiency

Asset

Management

Information

Infrastructure

Business

Resiliency

Security

IBM System z® Processor performance

and future scalability

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The business capabilities from leveraging the “z” dimension

• Performance increase with enhanced engine capacity

– Specialty Engines technology dividend

� Sub-capacity engine sizes available for smaller

configurations

� z/OS image size will grow with Hardware

� Performance objectives for equivalent n-way

configurations:

– Traditional workload = 1.3x predecessor

– New workload = 1.7x predecessor

z990

z9

Co

nfi

gu

rab

le E

ng

ine

s z10

z900

IFL

Crypto zAAP zIIP Accelerators

zFuture

Compute Intensive

Decimal FP

Capacity

Federated capacity from hybrid technologies

zFuture: The next great leap in virtualisation

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CP-67

VM/370VM/SP

VM/HPO

VM/XA

VM/ESA

z/VM

S/370

N-way64 MB real

31-bit

ESA

64-bit

SIE instruction

Multi-Image Facility

PR/SM

HiperSockets

Virtual Switch

Hypervisor Control Program

Second-level guests and beyond

IFL

Resource Capping

CMS

VM Assist microcode

Performance Toolkit

zSeries®

43xx

308x

9672

S/360

3090

303x

9x21 G2 - G6

System z9

zIIP

1960s 1970s 1980s 1990s 2000s

ICF

Logical Partitioning

Timesharing

Linux for System z

� Virtualisation was pioneered and perfected on IBM mainframes

� IBM System z® continues to set the gold standard in virtualisation

� All other servers lag in virtualisation capabilities

� zFuture will deliver integrated virtualisation to a heterogeneous

system configuration System z10®zFuture

Large-scale memory

over commitmentAdvanced Paging

Subsystem

Multiple Logical

Channel Subsystems

Integrated

Management

Element

Dynamic

Memory

Upgrade

Programmable

Operator

HiperDispatch

Virtual Machine

Mobility

OSA Port

Isolation

Virtual Disks

in Storage

Hypervisor

Clustering

zAAP

On/Off CoD

HiperSockets

virtual networking

throughout zFuture

Workload

Management

Ensemble

Management

z/VM 6.1 Statements of Direction – July 2009

� z/VM Single System Image: IBM intends to provide capabilities that permit multiple z/VM systems to

collaborate in order to provide a single system image. This is planned to

allow all z/VM member systems to be managed, serviced, and

administered as one system across which workloads can be deployed.

The single system image is intended to share resources among all

member systems.

� z/VM Live Guest Relocation: IBM intends to further strengthen single system image support by

providing live guest relocation. This is planned to provide the capability

to move a running Linux virtual machine from one single system image

member system to another. This is intended to further enhance

workload management across a set of z/VM systems and to help clients

avoid planned outages for virtual servers.

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IBM’s smarter

planet vision

Four major

IBM initiatives

New

Intelligence

Smart

Work

Dynamic

Infrastructure

Green &

Beyond

The world has become

flatter and smaller. Now it

must become smarter.

delivers superior

business and IT services

with agility and speed

Dynamic

Infrastructure

IMPROVE SERVICE

REDUCE COST

MANAGE RISK

Today – Simplifying Infrastructure

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IBM® Tivoli® Provisioning Manager

IBM® Tivoli® Intelligent Orchestrator

IBM Systems Director

• Active Energy Manager

• Service and Support Manager (Electronic Service Agent)

IBM® Tivoli® Monitoring

Tivoli® Availability Process Manager

IBM® Tivoli® Dynamic Workload Broker

IBM Dynamic Infrastructure for mySAP Business Suite

Examples of

Existing IBM Intellectual Property & Products

The road ahead for Dynamic Infrastructure with IBM System z®

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Our goal is to extend mainframe qualities to a heterogeneous

Dynamic Infrastructure to Support Critical Applications

� End-to-End Systems Management

� Policy based Automation Across the Applications

Stack

� Mainframe Security

� Application Resiliency

� Consolidated Disaster Recovery

� Improved Economies of Scale and Efficiency

VIRTUALISATIONENERGY

EFFICIENCYSTANDARDISATION AUTOMATION =+ ++

Extending IBM System z® management

and QOS to non-z technologies

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� A single management and policy framework across web serving, transaction, and

database to lower the cost of enterprise computing

� Mainframe QoS characteristics will be extended to acceleration appliances and

application servers to manage risk

� The dynamic resource management of the mainframe is extended to all devices

within a multi-tier architecture to improve service

Accelerators and

Application Serving Blades

Integrated Systems

Management Firmware

IBM System z® Hybrid Future

IBM System z®

Mainframe

+ +Enterprise

Data

Email Workgroup

COPY

CRM ERP

OLTP

Web

serving

Security

Scientific/E

ngineering

Systems

Management

IBM System z® ensemble

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IBM System z® Hybrid Future

IBM System z®

Mainframe Accelerators

Application Serving Blades

� Extend and accelerate IBM System z® solutions

� Lower cost per transaction while improving application response time for CPU intensive applications

� Logical device integration between IBM System z®

resources and application serving commodity devices

� Providing competitive price-performance and improved QoS for applications with a close affinity to mainframe data

++

Integrated Systems

Management firmware

� Integrate, monitor, and

manage multi-OS

resources as a single,

logical virtualised

system

� Single WLM, Security,

and System

Management interface

across all resources

Enterprise

Data

Email Workgroup

COPY

CRM ERP

OLTP

Web

serving

Security

Scientific/E

ngineering

Systems

Management

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Service Lifecycle Management

Image

Library

Assemble Solution

DB

store

DB

app

Business logic

Service Management

� Hardware Configuration and

Operational Control

� Pooling and Virtualisation of

server, storage, network)

� Platform Task Automation

� Autonomic resource

management

� Virtual Image Management

� Energy Management

� Performance Monitoring and

Management

� Availability Monitoring and

Management

� Accelerator “Firmware”

Configuration

� Virtual Network Configuration

and Security

Ensemble

Management

Ensemble Management Interfaces

Ensemble Management

Storage Ensemble

Tooling

IBM System z® Ensemble

Hypervisors

Server Ensembles

IBM Power Systems® Ensemble

Hypervisors

Server Ensembles

IBM System x® Ensemble

Hypervisors

Server Ensembles

Deployment, Image

Mgmt

� Determine the optimal

placement of service

workloads

� Deployment of composite

services, applications, images

� Service Composition

� Determine required

infrastructure resource

configuration and

capacity

Deployment

Planning

� Business System

Dashboards

� Service Monitoring

and Reporting

Visualise,

MonitorConfiguration, Security

& Policy

� Creation of Service

Availability, Performance,

Security, Energy

Management Policies

System Ensembles Masking the underlying hardware with virtualisation

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Mobility

Homogenous

System Ensembles

Optimised for ….

• Availability

• Performance

• Energy

Mobility

Heterogeneous

System Ensembles

Optimised for ….

• Availability

• Performance

• Energy

Mobility

Hybrid

System Ensembles

Optimised for ….

• Availability

• Performance

• Energy

Simplifying ensemble management with

IBM System z® Integrated Dynamic Infrastructure

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IBM® Tivoli® Provisioning Manager

IBM® Tivoli® Intelligent Orchestrator

IBM Systems Director

• Active Energy Manager

• Service and Support Manager (Electronic Service Agent)

IBM® Tivoli® Monitoring

Tivoli® Availability Process Manager

IBM® Tivoli® Dynamic Workload Broker

IBM Dynamic Infrastructure for mySAP Business Suite

IBM® Tivoli® Provisioning Manager

IBM® Tivoli® Intelligent Orchestrator

IBM Systems Director

• Active Energy Manager

• Service and Support Manager (Electronic Service Agent)

IBM® Tivoli® Monitoring

Tivoli® Availability Process Manager

IBM® Tivoli® Dynamic Workload Broker

IBM Dynamic Infrastructure for mySAP Business Suite

Integrated infrastructure-wide solutionSignificant added value from platform

Why the future state?

QoS by tight integration of hardware/firmware

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Tightly integrated virtualisation and management

Each communication• consumes resources on

processors• injects delays• disrupts cache and running

programs• Has to transit many

independent components

Extremely low latency communications which:• consume no resources on processors• do not inject delays nor disrupts cache and

running programs• Independent messaging protocol to maintain

responsiveness• Reduced components to fail

Benefits: Better performance, higher availability, reduced management costs

The Economic Value of Rapid Response TimeAhrvind J. Thadani 1982

When a computer and its users interact at a pace that ensures that neither has to wait on the other, productivity soars, the cost of the work done on the computer tumbles, employees get more satisfaction from their work, and its quality tends to improve. Few online computer systems are this well balanced; few executives are aware that such a balance is economically and technically feasible.

In fact, at one time it was thought that a relatively slow response, up to two seconds, was acceptable because the person was thinking about the next task. Research on rapid response time now indicates that this earlier theory is not borne out by the facts: productivity increases in more than direct proportion to a decrease in response time.

The Mainframe Charter: Continuing the Commitment

• Innovation

• Value

• Community

• Generation to generation price / performance gains

• Unique value of specialty engines

• Ability to reduce energy costs by up to 80%

• Breakthrough performance

• Massive Scale and capacity

• Investment Protection

• Just-in-time Capacity

• Unprecedented resiliency and security

• Academic Initiative includes >600 colleges and more than 50,000 students

• Linux on System z matures with >2,900 applications

• Total applications now > 6,000 from > 1,600 ISVs

• Comprehensive middleware

• IBM Destination z, hub of the community

2009:

Continuing the commitment

2003:Mainframe charter announced

Value Delivered:

MIPs growth of >20% CAGR fuelled by

Innovation that matters:

System z10™

A Vibrant Community:

• 7 New Solution Editions

• Lower HW pricing for Linux

• zFutures Roadmap

• IBM Hiring “Next generation”

• New ISVs

� Building on the popularity of the Solution Edition for SAP

� Special package pricing for our most popular solutions

� z10 HW (standalone footprint or isolated LPAR)

� Prepaid HW maintenance

� Comprehensive middleware stack (including S&S)

� Services and Storage (as needed)

� Legendary Mainframe quality:

� Unparalleled quality, security, availability and scale

� Integration of applications with corporate data

� Industry leading virtualization, management and resource

provisioning

� Unparalleled Investment protection

� Competitive acquisition prices, leadership TCO

Unmatched Value, Competitively Priced

�Data Warehousing

�SAP

�ACI

�WebSphere®

�Security

�GDPS®

�Application Development

Announcing the new System z Solution Editions:Legendary Mainframe quality, security, availability, and scale…..

priced to be competitive with UNIX alternatives

Deploying departmental/regional data marts/servers to support different views/users, duplicates data (often repeatedly) resulting inneedless costs and management issues.

Solution Edition for Data WarehousingThe platform of choice for Business Intelligence

Dividing an SAP database to handle application data, increases infrastructure costs and management concerns.

Solution Edition for SAPThe platform of choice for SAP applications

Example of Solution Edition Competitive Dynamics

�IFL prices for System z10 EC™reduced to $75k USD*.

�Reduced Memory prices extended to ALL new workload running on System z10 Servers -Now $2,250 USD per GB**

�Lower costs of migration when combined with zRewards

Now better Economics for Linux workloads:New prices lower the cost of acquisition

*Price are stated in US currency and may vary by country. This is for IFLs only, zIIPs and zAAP remain at $125k. Specialty engines do not include Internal Coupling Facilities (ICFs).

** New workloads defined consistent with zNALC terms and conditions and also include all Linux workloads. Prices will vary by country. Limited to 16GB per qualifying new processor.

Save up to 39% with System z before energy, admin, and

floor space considerations

3 Year Total Cost of Acquisition

Oracle DB Workload

Sun SPARC M8000 56 Core 12 z10 EC IFLs

HW SW SW Support HW Maintenance