© 2009 IBM Corporation

IBM System z Dynamic Infrastructure Today and in the Future September 23 rd 2009

Johan Charles johan_charles@be.ibm.com IBM System z Platform Manager Benelux IBM Systems and Technology Group

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* Registered trademarks of IBM Corporation

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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.

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IBM* IBM Logo* DB2* Dynamic Infrastructure* GDPS* HyperSwap InfoSphere Parallel Sysplex* RACF*

System z* System z10 Tivoli* z10 z10 BC z/OS* z/VM* z/VSE

© 2009 IBM Corporation

Agenda

  Today’s challenges

  The Dynamic Infrastructure® and the role of System z

  Summary of recent evolutions

  Platform choice

  What’s ahead for System z in the future

As we look to the future, we have to face today’s realities

Today, IT face more challenges and uncertainty than ever before

 An unprecedented global economic downturn

 Existing systems and infrastructures are reaching a breaking point

 New IT models and standards, such as SOA, SaaS and cloud are transforming the way we implement and deliver IT services

All of these factors impact on IT decisions today

5

IT infrastructure is reaching a breaking point.

85% idle In distributed computing environments, up to 85% of computing capacity sits idle.

Consumer product and retail industries lose about $40 billion annually, or 3.5 percent of their sales, due to supply chain inefficiencies.

33% of consumers notified of a security breach will terminate their relationship with the company they perceive as responsible.

33% $40 billion

Explosion of information driving 54% growth in storage shipments every year.

1.5x 70¢ per $1 70% on average is spent on maintaining current IT infrastructures versus adding new capabilities.

By 2011, the world will be 10 times more instrumented then it was in 2006. Internet connected devices will leap from 500M to 1 Trillion.

2005 2006 2007 2008 2009 2010 2011 0

200

400

600

800

1,000

1,200

1,400

1,600

1,800 Ex

abyt

es RFID,

Digital TV, MP3 players,

Digital cameras, Camera phones, VoIP,

Medical imaging, Laptops, smart meters, multi-player games,

Satellite images, GPS, ATMs, Scanners, Sensors, Digital radio, DLP theaters, Telematics ,

Peer - to - peer, Email, Instant messaging, Videoconferencing, CAD/CAM, Toys, Industrial machines, Security systems, Appliances

10x growth in five years

Approximately 70% of the digital universe is created by individuals, but enterprises are responsible for 85% of the security, privacy, reliability, and compliance.

Consider how our world is changing: Our world is becoming more…

INSTRUMENTED

INTERCONNECTED

INTELLIGENT

•  1/3 of the world’s population on the Web by 2011 •  4B mobile subscribers globally at the end of 2008 •  37K cyber attacks in the US in 2007; 158% increase

since 2006

•  30 billion embedded RFID tags by 2010 •  1/2 of all sensors in transportation, facilities

& production equipment are smart sensors

•  15 petabytes of new information generated every day (8x more than the information in all U.S. libraries)

•  64B credit card transactions/annum; up 35%

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

It’s time to start thinking differently about infrastructure.

A dynamic infrastructure addresses today’s challenges and tomorrow’s opportunities.

System z’s core competencies align with a dynamic infrastructure Today

Not only ensuring high availability and quality of existing services, but also

meeting customer expectations for real-time,

dynamic access to innovative new services.

Not just containing operational cost and complexity, but achieving breakthrough

productivity gains through virtualization, optimization, energy stewardship, and

flexible sourcing.

REDUCE COST IMPROVE SERVICE MANAGE RISK

Not only addressing today’s security, resiliency, and

compliance challenges, but also preparing for the new

risks posed by an even more connected and collaborative world.

Reduce cost with System z

  System z delivers industry leading capabilities…

–  Unique virtualization technology for Unparalleled scale of consolidation

–  Extensive automation capabilities across all aspects of IT service provision

–  Continual high utilization through automated prioritization and scheduling of IT tasks

–  Reuse and extend existing mainframe application investments

  …To directly impact the bottom line

  Dramatic reductions in energy and facilities requirements

 Far fewer software licenses

  Reduced total capacity requirement

 Faster deployment of new services with fewer resources

 Reduced labor requirements

  Maximized ROI

SMART IS Saving millions in annual operating costs

Bank of Russia: Reduces payment processing costs by 95 percent, saving US$400 million per year. Server and data center consolidation create further savings on hardware and software licensing, maintenance and electricity, and increased security. Workload for technical staff reduced by 85 percent.

Manage risk with System z

  System z delivers industry leading capabilities…

–  Comprehensive protection against all types of IT security threats

–  Availability protection spanning component failure to full disaster recovery

–  Centralized visibility, management and control to maintain availability

  …To deliver peace of mind

  Industry’s pinnacle in security certification

 Massive throughput of secure transactions

  Automated notification and response to potential future failures

 Protection from scheduled and un-scheduled outages

 Application availability of 99.999%

  Leading portfolio of disaster recovery solutions

SMART IS Protecting your customer... and your brand with no loss of data

Bank of Montreal: Providing a recovery point of zero and a recovery time of 2 hours helps reduce operational risk, increases client trust, improves availability, and meets stringent regulatory compliance requirements

Improve Service with System z

  System z delivers industry leading capabilities…

–  The ideal enterprise hub for dynamic delivery of resources & applications as services

–  Centralized secure data serving for an enterprise wide view of real time data

–  Business-driven service delivery and management

–  Reduced application development time by reusing proven assets

  …To deliver dynamic IT services to the business

  IT services aligned to business processes

 A common view of data across enterprise applications and all access methods

 Rapid and efficient deployment of new IT services and user interfaces

 Centralized management and control of IT services

SMART IS Growing your business confidently in a rapidly changing economy

Transzap: Consolidates to System z to provide the stability and scalability needed to accommodate triple digit volume growth and 100% YTY growth-plan to production. The System z infrastructure securely and rapidly services more than 44,000 users across 4,200 companies with tens of billions in transaction details flowing through the company's systems each year.

System z: The right platform for recession and recovery

  System z capabilities for Recession –  Reduce the cost of supporting existing operations –  Maximize utilization of resources –  Deploy any new resources “just in time” –  Run existing IT operations with fewer staff

  System z capabilities for Recovery –  Rapid deployment of new applications –  Reuse and rebalance IT resources “on the fly” –  Respond rapidly to new business requirements –  Low cost of capacity growth for new workloads

Underpinned by exceptional security and availability

Unequalled investment protection in technology, skills and applications

Before looking into the future let’s get in sync on the recent evolutions

 z10 Pricing Action  IFL prices for System z10 ECs reduced to $75k USD*.  Reduced Memory prices extended to ALL new workload running on System z10 Servers - Now $2250 USD**

 Announcing the new System z Solution Editions:  Legendary Mainframe quality,  priced within 20% of competitive UNIX alternatives***

 SOD for z/VM 6.1  Exclusive to z10 and future generations  New improved Terms and Conditions

 SOD for IBM Systems Analytics Optimizer  New Price performance for data warehousing

 PLUS z10 Technology enhancements  FICON Express 8

 Preview of z/OS V1 Rel. 11 & z/OS Mgt. Facility V1 R11

System z10 enhanced competitiveness: Transforming the economics of new workloads

• *This is for IFLs only, zIIPs and zAAP remain at $125k. Prices will vary by country.

• ** 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

• ***IBM “Stack” Price, designed to be within 20% of equivalent HP-UX Itanium based solutions at typical market discounts

 Data Warehousing

 Security

 WebSphere

 GDPS

 Application Development

 SAP (new lower prices)

 ACI (existing)

 Cloud Services Solution (coming in Q4 2009)

Solution Editions:

How is it different   Integrates IBM Database with high-

performance Data Warehouse query software, based on advanced data in-memory technology.

  Extends System z Qualities of Service of manageability, security, availability to analytic applications

  Combining the best of hardware/software worlds that only IBM can seamlessly accomplish

IBM Smart Analytics Optimizer SOD Unlocking unprecedented value from enterprise data

What is it?   A high performance platform that easily

integrates into existing data warehouses, delivering predictable, order-of-magnitude faster, analytic query response times, while lowering operating costs.

FICON Express8 exclusively for System z10

  FICON Express8 10KM LX and FICON Express8 SX

– Link data rate of 8 gigabits per second (Gbps) with autonegotiation to 2 or 4 Gbps

  Performance improvements when transferring small blocks of fixed size data (4k blocks) – Optimizations for online transaction processing (OLTP) workloads

Order entry, inventory tracking, hotel reservations – DB2, VSAM, PDSE, and zFS

  Performance improvements for large sequential I/O operations – Helps reduce the duration of backup/copy operations

  Consolidation of existing FICON Express, FICON Express2, and FICON Express4 channels onto fewer FICON Express8 channels

– With enhanced performance

PRIZM from Optica Technologies Incorporated   An appliance designed for a smooth transition from ESCON to FICON

  Converts native FICON (FC) protocol to native ESCON (CNC) protocol –  Existing ESCON devices can connect to FICON channels

  A 2u high, rack-mountable system –  Converts 1 or 2 FICON channels into 4, 8 or 12 ESCON channels

  Easy to configure and install

  Attach to a broad array of ESCON (and Bus & Tag) devices

  Offered through GTS IBM Site and Facilities Services (SPL-7) –  Offering ID #6948-J57 IBM Facilities Cabling Services - fiber transport system - ESCON® to

FICON® migration

However, all platforms will claim these attributes, so what makes a platform fit for purpose?

Intel

UNIX

Time Horizon

ISV Support

Nonfunctional Requirements

(Availability Scalability, Security, etc)

Power, cooling, floor space constraints

Strategic Direction and Standards

TCO Model Skills

Politics

Platform Architecture

Technology Adoption Level

Deployment Model

Problem Size

System z

Platform choice – Fit for purpose Many factors influence a platform selection, making it difficult to present a simple selection matrix.

Some factors are specific to each business, others are common to all and can be generalized

19

2. I/O Bound – e.g. high I/O content applications

9. Protocol Serving – e.g. static HTTP, firewall, etc.

3. Mixed Low – e.g. multiple, data-intense applications or skewed OLTP, MQ

1. Data Intensive – large working set and/or high I/O content applications

4. Mixed High – e.g. multiple, cpu-intense simple applications

8. Skewless OTLP – e.g. simple and predictable transaction processing

7. Java Heavy – e.g. cpu intensive java applications

6. Java Light – e.g. data intensive java applications

5. Database – e.g. Oracle DBMS or dynamic HTTP server

10. CPU Intensive – e.g. numerically intensive, etc.

Optimal for System z

Optimal for other platforms

Workload performance varies by application and can be best served by different platforms or the right mix of multiple platforms.

Application Performance Characteristics – what fits on which platform?

So, what is the right platform for a dynamic infrastructure?

Golden Rule: A Dynamic infrastructure is heterogeneous

  A “one size fits all solution” will be sub-optimized

  Optimized infrastructures –  multiple technologies –  best “fit for purpose” –  Appropriate cost and service

  Technology requirements –  Highly virtualized –  Integrated management –  End to End control of

applications

  Cloud computing is a model for a Dynamic Infrastructure

  The next generation System z is an intersection point of:

–  The leading enterprise computing platform –  Cloud services –  Capabilities for a dynamic infrastructure

Dynamic Infrastructure

Cloud System z

zFuture

System z dramatically improves composition of today’s data center Relating IT Resources to Business Objectives…

  Reducing: –  Complexity and fragility –  Management (labor) costs –  Power/cooling costs

  Increasing –  Flexibility and responsiveness –  Quality of service –  Asset Utilization –  Security

In the future, System z will further extend its value in the data center   Enhance function to further simplify, consolidate, and reduce the costs of managing the IT

infrastructure

  Extend management capabilities to heterogeneous architectures

  e.g. workload, resource, energy, and hardware management

  Extend processing capabilities to serve a broader set of enterprise workloads

  Continue to strengthen the core capabilities of the z platform

SSL/XML Appliances

Application Servers

Application & Data Servers

Web Servers

System z

Processor performance and future scalability

System z continues to evolve and grow  Performance increase with additional engines

–  50% more CEC capacity vs. z10  Sub-capacity engines available for smaller

configs  z/OS image size will grow with Hardware

  Performance objectives for equivalent n-ways

–  Traditional workload = 1.3x –  New workload = 1.6x with compiler

changes

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

z990

z9

Con

figur

able

Eng

ines

z10

z900

IFL Crypto zAAP zIIP Accelerators

zFuture

Compute Intensive Decimal FP

Capacity

System z Energy Efficiency Roadmap

2008 z10 Advanced power & thermal trending via Active Energy Manager

Improved power-savings mode for unused and idle processors

2007 z9 Power Calculator

Mainframe Gas Gauge

Energy Efficiency Credits/Certificates

Published typical energy numbers

Future HV DC input power

Water Cooled Option

Enhanced Power Savings for processors & IO chips

Add reporting of humidity and heat load to water vs. air

Query Max Potential Power

Static Power Saving mode

Platform Manager advanced energy management

Hybrid technologies extend available capacity

The business capabilities from leveraging the “z” dimension  Hybrid technologies increase overall capacity under control of system z  Deploy optimized solutions across z/OS, specialty engines and Blades  System z management extended across end-to-end applications

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

z990

z9

Con

figur

able

Eng

ines

z10

z900

IFL Crypto zAAP zIIP Accelerators

zFuture

Compute Intensive Decimal FP

Capacity

Federated capacity from hybrid technologies

zFuture: The next leap in virtualization

CP-67 VM/370

VM/SP VM/HPO

VM/XA VM/ESA

z/VM®

S/370™

N-way 64 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

  Virtualization was pioneered and perfected on IBM mainframes

  System z continues to set the gold standard in virtualization

  All other servers lag in virtualization capabilities

  zFuture will deliver integrated virtualization to a heterogeneous system configuration!

System z10 zFuture

Large-scale memory over commitment

Advanced Paging Subsystem

Multiple Logical Channel Subsystems

Integrated Management

Partition

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

System z roadmap: A natural evolution, and …… a Virtualization Revolution

Expanding the specialty engine concept to enable more applications   Integrated / networked attached resources to optimization for

cost, performance and quality of service   Take advantage of innovative new technologies

Next Generation: Integrated Virtual Server Management   Integrated Platform Management across diverse platforms

from a single control point to lower cost and improve service   Workload management of enterprise applications across

virtual servers to improve quality of service

Application specialty engines   Dedicated processors for key environments (eg: Linux, JAVA)   Improved price / performance for new workloads   Very low cost of large scale consolidation

34

System z will pioneer next generation of Virtualization In the future, System z will improve price/performance and enable thousands of new applications to benefit from System z Qualities of Service by integrating heterogeneous technologies in a highly Virtualized system.

  Tightly integrated heterogeneous systems

  Consolidated disaster recovery

  Simplified policy and management domains across the multi-tier architectures

  End-to-end management view of distributed application components

  Improved economies of scale and efficiency

Service Levels to Match Your Business Needs Increased flexibility for your multi-tier, multi-architecture strategy

Lower Scalability, Security, Dynamic Workload Management Higher

Low TCA Distributed

Systems

Integrated Application Serving Blades

Linux-on-z/VM

z/OS

  Expanded ISV support for enterprise applications

  Targeted for applications that interact with mainframe data and transactions

  Provisioned and managed by System z

  Extreme consolidation of servers and networking

  Superior levels of virtual server provisioning, monitoring and workload management

  Extreme scalability and performance for transaction processing and data serving

  High availability and cross-system scalability with Parallel Sysplex and GDPS

  Leading policy-based capacity provisioning and workload management

  Pervasive, high-performance security support

Low TCO

  Industry-best virtual I/O bandwidth and reliability

  Fewer components and reduced complexity

  System z qualities of dynamic resource management and capacity-on-demand

  Seamless integration with z/OS backup and disaster recovery solutions

  Silo managed islands of computing

  Less dynamic   Minimal resource

sharing

zFuture Integrated End-to

End Computing

The Next Generation System z: Delivering Exceptional Business Value to help our clients….

Compete: Accelerate Insight & Results   Accelerate critical transactions and queries   Gain insights from critical operational data with

real time analytics

Respond: Increase Business Agility, Security, and Resiliency   Automated policy based platform management for the

entire application stack   Simplified infrastructure speeds change and recovery

Save: Lower capital and operating expenses   Heterogeneous simplification and virtualization reduces

hardware, software, and operational costs   Mainframe class utilization reduces datacenter energy usage   Enjoy the mainframe experience at a fraction of the cost for

thousands of applications, without any software changes