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© 2006 IBM Corporation

Innovate to growOpen Source Strategy Implementation and Benefits

Len SantaluciaIBM Americas Linux Impact [email protected]


© 2006 IBM Corporation2

Agenda

Innovation and Competitive Advantage

Open Source Strategy Implementation and Consideration

Linux and Open Source Trends and News



products

services

business processes

business models

management and culture

policy and society

35%CEOs/Leaders

24%Functional

Mgrs

14%Division

Mgrs

27%No Owner

CEOs’ View:Primary Responsibility for

Innovation Leadership

It’s time to innovateIBM Global CEO Study 2006

• New technologies• New ways of conceptualizing

business• New kinds of partnerships• Global possibilities, regardless

of size and location

• Unmatched expertise• Most advanced systems and Full range of services• Standards-based software• More decisions made closer to the clients• Simplified processes and Global integration• Most complete view and understanding of

innovation

For Client….. For IBM…..



Differentiation Standardization

Leadership

New Innovation Model

The Industry is Seeking a New Equilibrium

Mixed Source

Collaborative Innovation: A more efficient community based approach for creating, maintaining, and enhancing implementations of open Standards.

Open StandardsProliferationPrivate/Open Standards

Growth & Competitive Advantage



IBM’s Open Source Goals

1. Innovation: Harness and fuel the energy and innovation of open source communities

3. Enhancement: Capture, focus and translate open source innovation into value for our customers

2. Contribution: Become a strategic player in open source communities, both as a contributor and consumer of technology

4. Growth: Leverage open source to gain new users, enter new markets, and expand business opportunities

Community Innovation

Contribute

Enhance

Supp

ort Integrate

Embed Layer Extend

Participate .. Donate ...Sponsor..

Linux Runs Across

All IBM ServerPlatforms

500+Middleware

Products Enabled Over 7000

ServicesProfessionals

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IBM contributes to 150+ OSS projects

More than 1000 developers involved in OSS projects IBM leads 80+ OSS projects

1999 / 2000IBM forms Linux Technology Center

Leads Apache projects Xerces (XML4J), Xalan, SOAP

Creates OSI-approved IBM Public License

Strategic participation in Mozilla

IBM becomes founding member of OSDL

2001

Linux contributions to networking, serviceability, performance

Mods to Apache 2.0 HTTP server

Founder of Eclipse.org –contributing Platform

Common Public License approved – used by Eclipse

Creates internal bazaar using OSS methodology

2002

Linux contributions to scalability (8-way+), reliability (stress testing, defect mgmt, doc)

Leads Apache Web Services projects WSIF and WSIL

Leads Eclipse projects GEF (editing), EMF (modeling), XSD (XML Schema)

IBM contributes eServer support for Globus Toolkit 2x

2003

IBM and SuSE achieve EAL2+ Common Criteria security cert

Leads Apache projects Pluto (Portlet API) and WSRP4J (Remote Portal)

Leads Eclipse projects Hyades (testing), Visual Editor, AspectJ, Equinox rich client

Globus Toolkit 3 contributions for OGSA, OGSI

2004-2006

IBM and Novell/SuSE achieve EAL4+ and COE compliance

Eclipse becomes independent org –IBM contributes UML2, Web Tools, Voice Tools

Globus Toolkit 4 is WS-I compliant

Pledged 500 Patents to Open Source

Partner with Zend PHP

IBM enhances Apache partnership- Contributes Derby database- Helps Derby graduate from

incubation- Contributes voice recognition- Supports Geronimo J2EE project- Acquires Gluecode for skills

Firefox accessibility contribution

Aperi project founding member

Open AJAX initiative

IBM contributions to Open Source go back 7+ years



IBM’s Open Source Leadership and Products and Services

Aperi project

Software Development

DatabaseServers

Client Collaboration

Software

Globus Alliance and

IBM Grid Offering

Power.org and

Blade.org

TotalStorage

Management

Open Source

Services

IBM Systems and Software

IBM Systems

IBM GTS and GBS

IBM TotalStorage

Web Application

Servers



Key IT Questions and Open Source

How can IT help our business succeed ?•Solve our problems today •Grow in the future•Integrate across and outside the company •Respond quickly to opportunities and threats

How can we improve our IT infrastructure ?•Better – more reliable, more secure•Faster – better price/performance•Lower cost – more efficient, lower TCO•More flexible – easier to integrate

Should we use Open Source Software?•When / Where / How ?•Build/Buy vs Build/Buy/Share?•Open Source / Commercial / Mixture ?•Who from / Who supports / Who integrates ?•How much will it cost / TCO / ROI ?



Be pragmaticRun a proof of concept or pilot to test out viability

Make decisions based on both business and technical factors

Establish policies for working with Open Source softwareEducate company teams about OSS before they work with it

Implement a management system to review, approve, and track the use of OSS inside the company, and contributions of company software assets to external OSS projects

Review Open Source Licensing - establish a process within your company to help developers understand the terms of the OSS licenses and the procedures required to comply with them

Evaluate Community and Maturity of Open Source before committingOpen, robust communities and broad industry support are important

Sustainable business models are criticalHealthy ecosystem of ISVs and Business Partners is required

Evaluate Open Source and Commercial software options Recognize the need for “buy/build/share” vs “build or buy” decision driven by business value

Most customers are using a mixture of open source and private sourceDon’t build a separate strategy – interoperability / migration considerations are important

Balance up-front costs against recurring costs

Insist on Open StandardsIncreases flexibility and responsiveness

Integrating Open Source into your IT strategy



E*TRADE leveraged open source to save millions of dollars annually

ENVIRONMENTApplications Stack (Production/Development)

based on Open Source Technologies and Infrastructure

IBM System x™ 330, 335, and 345 ServersIBM DB2™Red Hat Linux and Novell’s SuSE LinuxApache Web ServerJakarta Tomcat Servlet EngineTuxedo ServersGCC, Maven etc.Web Services (SOA) implementation using Java and C

KEY BENEFITSAnnual savings of millions of dollarsIncreased flexibility and scalability

The financial services firm's open-source journey began in 2001, when it replaced several of its Sun Microsystems Solaris-based servers with IBM x86 Linux-based systems.

E-Trade saved millions of dollars annually in the process, and hasextended its open-source interests to middleware and even the use of the community development process as a model for its own internal development.



IBM is positioned to deliver high value services to our clients on the full spectrum of Open Source Software lifecycle, either directly or thru supported communities

How IBM can help you implement Open Source Strategy

Open Innovation Workshop Selection of most appropriate OSS components (application and/or middleware) based on Value analysis

Open Development“Method”enhanced to use include selective Open Source software use

Open SupportDesign and alternative support options

Open Strategy WorkshopAssessment, policy and plans for Clients use of Open Source Open Pilot

Use of Open Source Software and validating business returns

Mixed StackInstantiation of selected business patterns with OSS components

Open MigrationFrom Private Source software to Open Source software or Open Source software to robust, scalable IBM and other middleware

Maintain / SupportOr Outsource

Strategy & Planning

PackageSelection

Solution Implement’n /

Integration

Application

Development



Linux and Open Source Trends and News………..



IBM Virtualization EngineTM PlatformEnterprise Workload Management, Usage and Accounting

Resource Management, Discovery and Mapping

IBM leverage virtualization experience with Open Source

۞ Reduced TCO ۞Increased Flexibility and Performance ۞Shared Infrastructure ۞Scalability

NetworksStorageServer

System X and BladeCenter

Open Movement into Virtualization

Private Source Virtualization

Device EmulationRobust VC

Trusted VMT

ProprietaryVirtualization

Partner w/XenSourceto support Linux+Xen

MicrosoftVirtual Server

IBM ProductsSupported

VMWareIBM Partner

System p, z and i, Storage Network & Non-IBM systems

Open StandardIBM Advanced Power Virtualization, z/VM,

San Volume ControllerVLAN, VIO

IBMAdvanced

Virtualization

Open SourceParavirtualization

Tight OS IntegrationEmbraced by Novell,

and Red Hat

XenIBM’s Contribution

to Open Source Community



IBM and Business Partner – Open Source Solutions

Industry Standard

Open Source

Open Standards

Open Source

Industry Standard

Open Source

Open Source

ISL Web Application and Database

ISL Open File and Print

Windows Integration Agent

Centeris Likewise

IBM System x™ Servers

SUSE® Linux Enterprise Server 9

DB2® Express-C

Websphere® Application Server Community Edition

Integrated Stack for Linux (ISL) – Open File and Print

Integrating Linux and Windows environment with Centeris and Novell for simplifying File and Print server management under Linux for Windows administrators

Customers get 1 Year license from Centeris at NO LICENSE CHARGE

Integrated Stack for Linux (ISL) –Web Application and Database

IBM’s System x, WebSphere, and DB2 groups have joined together to create the world’s most compelling, PRELOADED,NO LICENSE CHARGEbundle of enterprise software on System x

The ISL for web/app and database comes preloaded and configured with SLES on System x and runs WAS CE and DB2 Express-C out of the box!

IBM's comprehensive

software licensing and Software Maintenance

(product upgrades and technical

support) program available for large & SMB enterprise

customers



IBM and Business Partner – Open Source Solutions

IBM, AMD and Red Hat join to bring IT Infrastructure Solutions to clients to lower TCO and increase flexibility, security and scalability

IBM, Red Hat, NEP, OEM and Telecom ISVs collaborate to create Open Source Platform alternative to Proprietary Telecommunications Infrastructure

Highly Secure Business and Infrastructure Solutions based on “Trusted Linux” for Government and FS Sector

AMD/IBM/Red Hat IT Infrastructure Strategy Seminars

SELinux - Next Generation Security for Enabling Government Transformation: IBM and Tresys partnered to develop SELinux policies for UK CSIA



Linux® Utilities for IBM System z™ can help provide more choices for z/OS®

Help meet infrastructure demands

with Linux-based technology

More choices for infrastructure simplification

More choices for integrated workload and applications

More choices for security

More choices for ISV support

More choices for skill vitality

Linux Utilities for IBM System zSecurityStoneGateTM firewall for “network in a box“ protection webApp.secureTM for Web application securityIBM Tivoli Access Manager WebSEAL for single sign-onSystems ManagementIBM OMEGAMON z/OS Management Console to manage z/OS resources with Tivoli Enterprise Portal Server on System zNetworkingIBM Communication Controller for Linux to run existing NCP software

New platform feature to create a virtual x86 Linux environment, which will dynamically execute x86 Linux instructions by mapping system calls on a POWER system and caching them to optimize performance.

Clients should be able to easily install and run a wide range of x86 Linux applications on System p5™ and BladeCenter JS20 and JS21 servers that are using a Linux operating system.

This feature may help ISVs expand their addressable market to Linux on POWER servers at minimal to no cost by allowing them to run theirexisting x86 Linux applications in a POWER environment.

IBM expanding the capabilities ofPOWER5™ and POWER5+™ systems

IBM intends to expand the capabilities of IBM POWER5™ and POWER5+™ processor-based IBM System p™ servers and PowerPC ™processor-based blade servers to install and run x86 Linux applications.

Clients can benefit from the controland management that System z offers, by integrating ‘commodity’Workloads – utilities – with z/OS Workloads onto the mainframe



SimplicityProvides immediate value while reducing risk

ScalabilityModular flexibility with balanced

performance, stability/fault tolerance and high availability

Price/PerformanceCompetitive price/performance with IBM

System server and storage components (e326m and DS4800)

OpenBased on the Open standards

(Linux, XML, SQL)

A fully integrated Linux data warehouse solution featuring DB2 Data Warehouse Edition (DWE) and IBM Systems and Storage

Innovative Solutions Built on Linux:DB2 Data Warehouse Balanced Configuration Unit (BCU) For Linux

Server

Storage

Database

Database DB2 DWE v9.1 (Base or Enterprise Edition)Data Partitioning FeatureQuery Patroller

OS SuSE Linux Enterprise Server 9 + IBM SupportLine contract

Server IBM eServer™ 326m 4-way (2 dual-core AMD Opteron™ processors)

Storage IBM TotalStorage DS4800

Services/Support

DB2 Lab ServicesIGS Information WarehouseIBM Solution support

Additional Component Options

High Availability (HA) configurations



For businesses who need timely answers to vital business questions BI Accelerator helps deliver

– Near real-time visibility into business operations

– Relevant insights to every information worker

– Rapid innovation with disposable analytic data

IBM Systems solution for BI Accelerator from SAPA scalable appliance helping provide near real-time analytics

BI Accelerator Solution Components

BI accelerator from SAP*Novell SUSE Linux ES 9 IBM GPFS

IBM Services

IBM BladeCenterHS20

IBM TotalStorage DS4700

Integrated IBM System Cluster 1350 Offering

“Choosing the IBM Systems Solution for BI Accelerator technology ensures that Bayer Business Services has a high-performance, cost-effective solution that is highly scaleable, and one that offers room for future growth.” -

Peter Kossmann, Bayer Business Services

* Requires a usage license from SAPNovell SUSE Linux

any SAP BI supported

DB & OS



Innovate with System i Solutions

Delivering PHP for i5/OS System i™ and IP Telephony

Zend Core and Zend Studio for i5/OS

offer a complete, all-in-one PHP development and production environment fully-integrated with the innovative i5/OS platform

combine certified PHP with the most trusted IDE for easy and flexible modern Web application development. For developers on the i5/OS platform,

are the most productive and cost-effective route to rapid Web enablement and the integration of Web Services supporting SOA"PHP support on i5/OS should offer us more freedom of choice in Web development, along with protecting our current investments and assets. It has a very low learning curve and the adoption rate is really high."-- Mike Pavlak, Director of Information Services, Tripp Lite

3Com® IP Telephony Suite for System i™

Lower your traditional telephony costs and enhance productivity with IP Telephony

Implement a complete IP telephony solution on one easy-to-manage system using the System i™management tools you already know

Extend the System i™ benefits of simplicity, integration, vertical growth and security to IP Telephony

3Com announcing the first-ever solution of its kind on System i, you can join more than 28,000 pure IP telephony customers of all sizes that 3Com has served since 1998. In support of open standards, the3Com IP Telephony application will be available on System i5 andselect iSeries models on the Linux operating system.



Open Client InnovationIBM Lotus Notes 7.0.1 for Linux

Industry's first integrated collaboration software to support Linux ClientNext release of Notes – “Hannover” will support Open Document Formats

Open Document Format XML specification for content & format

ISO Standard – based on Open StandardsFreedom of choice for document storing, retrieval, and interoperabilityIBM Workplace Managed Client v2.6 office productivity editors support ODF file format.

IBM Lotus Sametime 7.5 for LinuxIndustry's first business-grade IM to support integrated VOIP on Linux Client and based on Eclipse Technology – providing extensibility It’s Your Information …

Make the Choice to Ensure It Stays That WayOpen Client Community

Desktop improvements, HW thin client optionsOSDL – DTL (Printing, Wireless, Power Management, File Systems, Multi Media, ISVs, LSB), Accessibility

IBM WebSphere Everyplace DeploymentEclipse based client middleware Server managed client Foundation for all IBM Client Technology Products –including “Hannover” and Lotus Sametime 7.5

IBM Managed Workplace ClientSupports Lotus Notes for Linux IBM Productivity Tools – Presentation, Spreadsheet, Documents, Project PlannerProvides Rich Client support for Workplace Messaging, Workplace Documents, Activity Explorer



Service Oriented Architecture (SOA)

Data

ServiceFlow

ExistingApplications

NewService Logic

B2BInteractions

Portal ServiceSOAP

Service Request(e.g. J2EE, .NET)

Data

ServiceFlow

ExistingApplications

NewService Logic

B2BInteractions

Portal ServiceSOAP

Service Request(e.g. J2EE, .NET)

A Framework for Incorporating Web Services Across and Between Enterprises

SOLUTION: (SOA on Linux)- IBM SurePOS 300 - IBM WebSphere - IBM DB2 information management software - IBM eServer xSeries™servers - IBM Business Consulting Services- SuSE Linux

BENEFITS:Faster checkout and

increased responsiveness to customer needs

Increased employee productivity and efficiency

Reduced TCO



LinuxTechnology

Center

LinuxServices

Open Source Development Lab

Linux Whitepapers

and Redbooks

ibm.com/linux

Technical SupportWW Competence Centers

Products

WorldwidePorting Centers

Linux EnabledBusiness Partners

Linux Sales Specialists

LinuxIntegration

Center

Use Linux internally

IBM - Linux and Open Source Ecosystem



Your products?Your services?Your financial strength?Your customer base?Your supply chain?Your management systems?Your business model?Your history?Your brand?Your expertise?



Trademarks and Presentation Notes/Disclaimers

The following are trademarks or registered 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: eServer, System p, System z, System x, System p5, System i5, AIX, BladeCenterThe following are trademarks or registered trademarks of other companies:Java and all Java based trademarks and logos are trademarks of Sun Microsystems, Inc., in the United States and other countries or bothMicrosoft, Windows,Windows NT and the Windows logo are registered trademarks of Microsoft Corporation in the United States, other countries, or both.Linux is a trademark of Linus Torvalds in the United States, other countries, or both.Other company, product, or service names may be trademarks or service marks of others.Any statements about support or other commitments may be changed or cancelled at any time without notice. All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only Information is provided “AS IS” without warranty of any kind.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.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.The information could include technical inaccuracies or typographical errors. Changes are periodically made to the information herein; these changes will be incorporated in new editions of the publication. IBM may make improvements and/or changes in the product(s) and/or the program(s) described in this publication at any time without notice.Any references in this information to non-IBM Web sites are provided for convenience only and do not in any manner serve as an endorsement of those Web sites. The materials at those Web sites are not part of the materials for this IBM product and use of those Web sites is at your own risk.IBM may have patents or pending patent applications covering subject matter in this document. The furnishing of this document does not give you any license to these patents. Send license inquires, in writing, to IBM Director of Licensing, IBM Corporation, New Castle Drive, Armonk, NY 10504-1785 USA.IBM makes no representation or warranty regarding third-party products or services including those designated as ServerProven, ClusterProven or BladeCenter Interoperability Program products. Support for these third-party (non-IBM) products is provided by non-IBM Manufacturers.