IBM, Linux and You: Real Experience, Real Solutions . . . for Real Business

John SarsgardVice President, WW Linux SalesIBM Corporation

Market Pressures Business Business EfficiencyEfficiency

Process IntegrationProcess IntegrationCostCostIT Asset UtilizationIT Asset Utilization

OpenOpenMovementMovement

FexibilityFexibilityInnovationInnovationStandardsStandards

TechnologyTechnologySubstitutionSubstitution

CommoditizationCommoditizationBladesBladesVirtualizationVirtualizationClusters & GridsClusters & Grids

Business Business ContinuityContinuity

ReliabilityReliabilityPerformancePerformanceSecuritySecurityDisaster RecoveryDisaster Recovery

on demand Companies

Responsive

Variable

Resilient

Focused

An enterprise whose business processes can respond with speed to any customer demand, market opportunity or external threat.

...an approachable, adaptable, integratedand reliable infrastructure deliveringon demand services for on demand

business operations...

on demand Operating Attributes

Open Integrated

Virtualized Autonomic

What is Linux?UNIX-like operating system

Packaged and shipped by distributors such as Red Hat, SuSE, Turbolinux, ...

UnitedLinux = open industry consortium providing a binary-compatible Linux distribution

What is Open Source?Community develops, debugs, maintains

Generally high quality, high performance software

Superior security - on par with other UNIX, superior to Windows

"Hello everybody... I'm doing a (free) operating system (just a hobby, won't be big and professional...)."

Linus Torvalds, creator of Linux, from the first Internet announcement on August 25, 1991. Even he initially underestimated its potential.

What are Linux and Open Source?

"Bynari Insight Server (on zSeries running Linux) gave us a more cost-effective alternative to Microsoft Exchange..."Dave Ennen, Technical Support Manager -- Winnebago

"It's going to be almost 30 times cheaper to run and maintain" (than Sun systems)Josh Levine, Chief Administrative Officer and President - - e*Trade Technologies

"Consolidating our European systems onto iSeries and xSeries will bring significant cost savings and improved administration." (speaking of Linux application)Tim Evans, IT Manager -- Banco do Brasil

"Linux was our first choice to run these new applications... it is easy to manage and costs less than other operation systems to implement" Mr. Makoto Takayama, Managing Director -- Lawson, Inc.

Linux... Lowers Costs

Linux Solaris0

100

200

300

400

500

600

Tho

usan

ds

Year 1Year 2Year 3

Based on Web deployment experiences of 14 customers

Total Cost Of Ownership

Source - Robert Frances Group - July 2002www-1.ibm.com/linux/RFG-LinuxTCO-vFINAL-Jul2002.pdf

TCO TCO (excludes middleware, (excludes middleware, application, services)application, services) 1) OS Purchase Prices 1) OS Purchase Prices 2) HW Purchase / 2) HW Purchase / MaintenanceMaintenance 3) Upgrade Prices 3) Upgrade Prices 4) Admin costs 4) Admin costs

Linux... It All Started With Cost Benefits

Question: Question: Based on what you have seen or heard so far with Based on what you have seen or heard so far with Linux, how would you rate Linux on the following aspects?Linux, how would you rate Linux on the following aspects?

Note: Includes responses from 500 Linux users

Reliability

Acquisition Costs

Performance

Value of Open Source

Security

TCO

Scalability

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Attributes Rated "Outstanding"

Source:IBM Market

Research 2002

Linux... More than Just Cost

"We need a rugged, reliable technology solution for the time-sensitive, high-volume traffic in our concession stands..."

Todd King, Vice President of Technical Information Services - - Regal Entertainment Group

"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

"...Cars+ actually runs faster on Linux, as well as being more stable. It screams along..."Mr. Newman Emanouel, CFO - - Thrifty Car Rental Australia

"Sendmail running on Linux for S/390 provided improved performance and reliability."Donna Lamberth, Senior Manager for IS - - L.L. Bean

Linux... Reliable, Robust, Fast

Why Does Linux "Work"?UNIX was a pre-write of Linux

Development tools used are becoming industry standards

Supported on 70 different system architectures

Straight forward code design

Source code is freely available

Thousands of interested and talented developers around the globe

A free exchange of design innovations

Quick response to design problems

Brutal design and code reviews

Strategic Issue: Consistent EnvironmentLinux runs on virtually everything

Desktops

Blades

iSeries zSeriespSeries

Sun

xSeries

HP

PDAs

Intel Servers

Gaming

Tivo

Linux

Clusters

Notebooks

Linux Market Broadening

Customers Industry adoption expanding

Workload usage maturing

Governments endorsing Linux

Technology 2-way 8-way

Blade acceleration

"Carrier-grade"

2.6 Kernel due 1H 2004 (16-way)

Client functionality

Market Increased industry focus

Standardization increasing

Growing ISV support

Analysts endorsement strengthening

IBM's Perspective on Linux Deployment

Database server-highCommercial ClustersERP, CRM, SCMVertical Industry Applications

Database server-loweCommerceSuper Computing ClustersSW DevelopmentWeb HostingBranch Automation

Database server-loweCommerceSuper Computing ClustersSW DevelopmentWeb HostingBranch AutomationInfrastructure

Maturing

Leading Edge

FirewallPrint/FileWeb Servere-mail

FirewallPrint/FileWeb Servere-mail

FirewallPrint/FileWeb Servere-mail

Linux is Gaining Enterprise Acceptance

2002 2003 2004 2005 2006-10%

0%

10%

20%

30%

40%

50%

LinuxWindows

Other

IDC Server Market ForecasterSeptember 2002

Server Shipments by OSYtY Unit Growth

2003 Linux 2003 Linux surpasses Unix surpasses Unix

in server in server shipmentsshipments

Linux Linux CAGR CAGR 35%35%

Oct 9, 2002: Reuters.ComTowerGroup - Linux gaining ground fast in North American Securities Firms.

Press Shows Enterprise Acceptance

Oct, 15, 2002: InternetNews.Com IBM Take Linux to the Movies

May 30, 2002: USA TodayLinux getting widespread support from Government

Oct 30, 2002: Associated Press Linux, Finding Niche in Automotive Industry

Oct 11, 2002: Forbes.comLinux Goes Shopping

Oct 21, 2002: NewForgeWall Street Leans toward Linux

Financial/Insurance Services Communications

Distribution/Retail Industrial

Education/Government/Health

IBM Customers Running Linux

Application Focus Areas

Financial / Insurance ServicesRisk managementBranch bankingPayments

IndustrialUpstream petroleumComputer Aided EngineeringElectronic Design Automation

CommunicationsWeb & e-commerce infrastructureCarrier Grade LinuxDigital content creation

Distribution / RetailPoint of SaleKiosk and store operationsData Mining

Education / Government / Lifesciences

GRID computingLifesciences bioinformaticsHigher education

Comprehensive IBM Linux Investments

Porting & PrototypingPorting & PrototypingLinux Integration CenterLinux Integration Center

Technical consulting, proof of Technical consulting, proof of concepts, benchmarksconcepts, benchmarks

Linux Porting CentersLinux Porting Centers

Linux CoC for FinanceLinux CoC for FinanceNYC, LondonNYC, London

Linux for Service Providers LabLinux for Service Providers LabGlobal e-business Solutions CenterGlobal e-business Solutions Center

Enterprise LinuxEnterprise LinuxLinux Technology CenterLinux Technology Center

"Help make Linux better""Help make Linux better"Open Source Development LabOpen Source Development Lab

Enabling Linux and Linux-based Enabling Linux and Linux-based applications for data center and applications for data center and carrier-class deploymentcarrier-class deployment

Application DevelopmentApplication DevelopmentEclipseEclipse

Open source IDE frameworkOpen source IDE framework

WebSphere StudioWebSphere StudioSpeedstartSpeedstart

developerWorksdeveloperWorksLinux hubs in US, KoreaLinux hubs in US, Korea

Comprehensive Product EnablementComprehensive Product EnablementIGS ServicesIGS Serviceson demand Linux serviceson demand Linux services

eServer PlatformseServer PlatformsIBM MiddlewareIBM Middleware

Member of the Linux Community

IBM well accepted by the Linux community250+ Developers worldwide

70+ active Open Source projects

80% of IBM's contributions are accepted

IBM engineers leading enterprise Linux focusDeeply involved in Linux kernel development

Motivated community to focus on addressing scalability and threading issues

Defect support for a set of core Linux packages

Led formation of Linux Test Project to validate reliability, robustness, and stability of Linux distributions

Key participant and contributor to "Carrier Grade Linux" project

Experiences with the OSS Community Open source developers and traditional software developers have the same goals

Quality, high-performance, serviceable software that solves real customer problems

Developers trained on proprietary SW can successfully become effective OS developers (hundreds of proof points)

Linux community is enthusiastic about making Linux a mission-critical OS and supporting the necessary Enterprise features

Scalability, security, reliability, serviceability, performance, availability, manageability, standards, ...

IBM is an accepted peer and partner in the Linux development community

The OS community includes all of us

IBM Level 1-2-3 Linux SupportOpen Source Involvement Benefits Our Customers

LTC and IGS teams have experts in every key Linux subsystem and can respond to any problem

IBM works directly with the code owners to integrate fixes into the base quickly and efficiently

Produce fixProduce fix

Defect foundDefect found

Logged into IBM bugzillaLogged into IBM bugzilla

Send to CustomerSend to Customer

Open Source Maintainer Open Source Maintainer accepts fix into next releaseaccepts fix into next release

Linux Distribution Partner Linux Distribution Partner accepts fix into next releaseaccepts fix into next release

Close bugzilla report Close bugzilla report

1100+ Production Servers WW

Internal Linux Projects:

www.ibm.com/linux & w3.ibm.com/linuxredundant xSeries Linux servers

Intranet search enginexSeries servers; Inktomi search engine

IGS Internet Vulnerability Security Scanning61 xSeries scanning 30k IP addresses/ week

Performance monitoring24 xSeries servers75% fewer Linux servers than NT servers for same workload

IBM Global e-Mail Anti-virus ManagementxSeries scans incoming/outgoing mail for viruses

300mm Wafer Manufacturing Equip. ControlMuch more reliable than Win2000159 xSeries; 300-400 by year end

IBM Uses LinuxTransforming IBM's IT infrastructure - $10M+ in Savings

Linux ReliableGlobalized

ScalableModular & Flexible

Platform independentStandards-based

Messagingand

E-mail

E-learningand

Advanced Collaboration

RelationalDatabase

Information on Demand

OnlineTransaction

Systems

Leading Platform for Integrated

e-business

IntegratedEnterprise

Management

Business Impact

Management

SoftwareDevelopment

Platform

AcceleratedProject

Deployment

IBM Software Delivering Business Capabilities via Leadership Brands

iSeries Small or medium businessFully integrated solution (hardware, software, networking)Infrastructure consolidationEasy administration / operation

zSeriesI/O intensive applicationApplication needs "mainframe features"Large number of parallel servers (horizontal)Most advanced workload management

xSeriesLeading low- to mid-range price/performanceCluster scalabilityLinux and Windows environments

pSeries64-bit performance (e.g. floating point, large memory)Single server multiple applicationsLinux and AIX configurations

BladeCenterScale out and clustered solutionsShared infrastructure with no single point of failureFlexible architecture supports range of servers - Intel, PowerPCIntegrated management

Linux Virtual Serviceson demand capacityFast deploymentNo capital expensePay for what you use

IBM

Linux... Ready for the Enterprise

Linux...is Secure

Clusters very well

has high Availability

is easily Managed

Deployments are accelerating

Industry-specific implementations are growing

ISV applications are rapidly increasing

Summary: IBM's Linux ValueMaking IBM Your Best Choice for Linux

End-to-endLinux-enabled

HW, SW & Services

Enterprise Customer Support

Comprehensive Investments to Advance Linux

IBM, Linux and You: Real Experience, Real Solutions . . . for Real Business

John SarsgardVice President, WW Linux SalesIBM Corporation

Trademarks

The following are trademarks of the International Business Machines Corporation in the United States and/or other countries. For a complete list of IBM Trademarks, see www.ibm.com/legal copytrade.shtml

AS/400 DB2 E-business logo ESCON eServer FICON IBM IBM Logo iSeries MVS OS/390 pSeries RS/6000 S/390 VM/ESA VSE/ESA Websphere xSeries z/OS zSeries zVM

The following are trademarks or registered trademarks of other companies

Lotus, Notes, and Domino are trademarks or registered trademarks of Lotus Development CorporationLinux is a registered trademark of Linus TorvaldsJava and all Java-related trademarks and logos are trademarks of Sun Microsystems, Inc., in the United States and other countriesUNIX is a registered trademark of The Open Group in the United States and other countries.Microsoft, Windows and Windows NT are registered trademarks of Microsoft Corporation.SET and Secure Electronic Transaction are trademarks owned by SET Secure Electronic Transaction LLC.Intel is a registered trademark of Intel Corporation* All other products may be trademarks or registered trademarks of their respective companies.

Notes:Performance is in Internal Throughput Rate (ITR) ratio based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput that any user will experience will vary depending upon considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve throughput improvements equivalent to the performance ratios stated here.

IBM hardware products are manufactured from new parts, or new and serviceable used parts. Regardless, our warranty terms apply.

All customer examples cited or described in this presentation are presented as illustrations of the manner in which some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions.

This publication was produced in the United States. IBM may not offer the products, services or features discussed in this document in other countries, and the information may be subject to change without notice. Consult your local IBM business contact for information on the product or services available in your area.

All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.

Information about non-IBM products is obtained from the manufacturers of those products or their published announcements. IBM has not tested those products and cannot confirm the performance, compatibility, or any other claims related to non-IBM products. Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products.

Prices subject to change without notice. Contact your IBM representative or Business Partner for the most current pricing in your geography.