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Linux, an AlternativeSteve KangLinux SW Leader, Software GroupAisa Pacific

IBM Software Group

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Agenda

The Market Trend

Linux and On Demand

IBM SW and Linux

IBM Linux SW Solutions

Linux, an Alternative

IBM Software Group

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Agenda

The Market Trend

IBM Software Group

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Linux Inc. January 31, 2005 – Where Linux is Going

Linux has become the strongest rival that Microsoft has ever faced.Servers: Today 24% In 2007 33%Compared with 59% for Windows – essentially keeping Microsoft at its current market share for the next three years and squeezing its profit margins.Desktop: Today 3% In 2007 6%Total market for Linux: 2004 $11B In 2008 $35BData: IDC Linux Inc., Business Week, January 31, 2005

64% of Customers Plan to Move a Portion of Their OS to Linux Source: The Yankee Group and Sunbelt Software, Inc. 2004

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Migration To Linux

Forrester, 3/16/04, 'Open Source Moves Into The Mainstream', Ted Schadler,

Network Computing Magazine e-Poll, n=1,028, OS "Replaced" on Deployment

47.8%

1.5%

3.0%

9.0%

38.8%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

NEW

AIX

HP

SOLARIS

WINDOWS

Prev

ious

OS

% of Linux Deployments "Replacement for" OS stated

Network Computing, 2/5/04, ‘Linux Inside‘ Cover Story, e-poll, n=1,028

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Linux is Becoming the Platform of Choice

Source: The Yankee Group and Sunbelt Software, Inc. 2004

64% of Customers Plan to Move a Portion of Their OS to Linux

•25% plan to migrate from Windows to Linux

•21% plan to add Linux Servers

•11% plan to replace Windows Servers totally

64% plan to move

36% have no plans to move

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New Focus Area Chasm

Linux Desktop

On demand & Value Network

Solutions

Workload Consolidation

Infrastructure Solutions

Early Market

Mainstream

Industry Applications

Clusters/Blades

Linux Adoption Across Market

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Linux Evolution

GovernmentInfrastructure Scientific/HPCTelco (ISP Access)

Price/PerformanceLower TCOSimplified Systems ManagementImproved Time to Market

Implementation ServicesAverage Lower Billable $/hrShorter Implementation projects

GovernmentInfrastructure Scientific/HPCTelco (ISP Access)Retail (POS)Finance (risk management)Banking (portfolio analysis)

Price/PerformanceLower TCOSimplified Systems ManagementImproved Time to Market

Implementation ServicesSystems Integration Services

GovernmentInfrastructure Scientific/HPCTelco (ISP Access)Retail (POS)Finance (risk management)Banking (portfolio analysis)Travel (reservations)Media and EntertainmentDigital content creationAerospace (analysis applications)

Price/PerformanceLower TCOSimplified Systems ManagementImproved Time to MarketHigh ReliabilityOpen platform/foundationRapid ImplementationReusability/flexibility

•Implementation Services•Systems Integration Services•Application Architecture Services

GovernmentInfrastructure Scientific/HPCTelco (ISP Access)Retail (POS)Finance (risk management)Banking (portfolio analysis)Travel (reservations)Media and EntertainmentDigital content creationAerospace (analysis applications)Insurance (actuarial)Finance (tracing)Travel (kiosks)

Price PerformanceLower TCOSimplified Systems ManagementImproved Time to MarketHigh ReliabilityOpen platform/foundationRapid ImplementationReusability/FlexibilityBetter Levels of ServiceIncreased IT utilization

Implementation ServicesSystems IntegrationApplication ArchitectureBusiness Innovation Services

Edge Infrastructure

Static WebInfrastructure

ApplicationServing

Enterprise On Demand Computing

Industries

EconomicValue

Services

Typical Applications

E-mail ServersDHCPScientific HPC

ApacheWebsphereWebLogicOracle

e-business applications(CRM, SCM, ERP)

Enterprise IntegrationPartner IntegrationDynamic Business Models

Present FutureSource: The Linux Services Opportunity, May 2003

IBM Software Group

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Agenda

Linux and On Demand

IBM Software Group

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Buying, not browsing...working, not surfing...

Integrate Internally

Access Publish Transact Integrate Externally

Access Enterprise Integration On Demand

Optimize operations...

Responsive

Variable

Focused

Resilient

Connect to the Internet...

e-business on demand: Technology Roadmap

IBM Software Group

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The Benefits of On Demand

IntegrationImprove Employee ProductivityStreamline Processes

VirtualizationOptimize Your IT InvestmentsRespond to Unpredictable Change

AutonomicImprove ResiliencyImprove Security

Simplify IntegrationOptimize Value NetFacilitate Innovation

Open Standards

IBM Software Group

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Open Standards … Enabling Transformation

Freedom of choice (avoid vendor lock-in)

Consistency and productivity (proven to work)

Skill availability (widely taught and practiced)

Expert driven (best industry practices)

Simplify (don't reinvent the wheel)

Lower costs, faster deployment

Facilitates Interoperability and Change

Integration across mission / business systemsHTML XML LINUX J2EE Open

SourceWeb

Services BPEL Eclipse Grid

IPV6 RFID WS-I

IBM Software Group

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Why Linux???Attributes of Linux and Open Standards

Flexibilityone O/S image = X-platform integration avoids vendor lock-in strategies

Securitymodular security (UNIX-like)peer review > fast “fix” resolutiongreater security controls > “policy-based”

Scalabilitystable, scalable 32/64-bit solutions (2.4 & 2.6 kernels)– scale-out HPC, scale-up (p or zSeries)

Reliabilitypeer review, modular architecture

Total Cost of Ownershipextended h/w lifespan, infrastructure optimization, lower systems administration

Citizens

Busine

ssG2BG2G

G2CG2EEmploye

es

Government

Citizens

Busine

ssG2BG2G

G2CG2EEmploye

es

Government

WSWS--II

Open Platform

W3CW3C

Open ToolsOpen

Standards Development

Open Industry

Participation Emerging Standards:Open Grid Services Architecture

IBM is #1 commercial investor in Linux

Linux Windows AIX Solaris HPLinux Windows AIX Solaris HP--UX OS/400 z/OSUX OS/400 z/OS

Open Standards Adoption

Open Interchange

Open Networks

Open Data

Open OS

WSWS--II

Open Platform

W3CW3C

Open ToolsOpen

Standards Development

Open Industry

Participation Emerging Standards:Open Grid Services Architecture

IBM is #1 commercial investor in Linux

Linux Windows AIX Solaris HPLinux Windows AIX Solaris HP--UX OS/400 z/OSUX OS/400 z/OS

Open Standards Adoption

Open Interchange

Open Networks

Open Data

Open OS

IBM Software Group

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What Can Linux Do For Business?

Unix Environment?Reduce Hardware CostImprove Platform FlexibilityLeverages Existing Unix Skills

Windows Environment?Reduce Licensing CostsImprove Reliability & SecurityRemove Vendor Lock-in

Heterogeneous EnvironmentsPlatform for Your Business Transformation Simplifies Integration

Today - Benefits of Unix on Your Choice of Hardware Tomorrow – “Will Run on Hardware That Hasn’t Been Invented

Yet”

Overall Value!

IBM Software Group

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Agenda

Linux and IBM SW

IBM Software Group

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IBM SW and Linux

HumanInteraction &Collaboration

MiddlewareEnvironment

Transactionsand

Messaging

InformationManagement

Systems

Mgmt & Security

SoftwareDevelopmen

t

Tivoli LotusDB2WebSphereRational

Build Run Manage Use

> 25

0 P

rodu

cts

xSeries pSeries iSeries zSeries

Pla

tform

Cho

ice

We don’t “sell” Linux…we sell IBM Middleware on Linux!

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IBM Software Strategy

Linux Unix Windows OS/400 z/OS

Servers Storage

ProcessesProcesses

SystemsEnvironment

RationalRational

ApplicationsApplications

MiddlewareEnvironmentMiddlewareEnvironment

SystemsMgmt & Security

SystemsMgmt & Security

Transactionsand

Messaging

Transactionsand

Messaging

InformationManagementInformation

ManagementHuman

Interaction &Collaboration

HumanInteraction &Collaboration

SoftwareDevelopment

SoftwareDevelopment

LPS CRPLPS CRP

IBM Software Group

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IBM SoftwareCapabilitiesWebSphere

Application

pSeriesOpenPowerSUN, HP

zSeries iSeries xSeries(IA32/64/EM64TAMD32/64)

Applications

J2EE, Open Stds

IBM Middleware

WinTel Model

Intel (IA32/64/EM64T AMD32/64) Hardware

Windows

Applications

Common Language Runtime

.Net

UNIX z/OS OS/400Windows

The Tale of Two Models . . .

IBM Microsoft

Linux

only one is an “on demand” world

IBM Software Group

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Agenda

IBM Linux SW solutions

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Hardware Processor / Virtualization – Intel, POWER, zSeries, Clusters, Grids...

Linux

Applications – Custom, Packaged

Software Build

WebSphere Studio

Web Application Server

WebSphere Application Server

Collaboration / Email

Lotus Domino

Lotus Domino Web Access

Integration

WebSphere Portal

Lotus Workplace Family

eCommerce

WebSphere Commerce

Content

DB2 Content Manager

Integration

DB2 Information Integrator

DB2 Connect

Software Design

Rational ClearCase

SDP

Systems Management

Tivoli

- Orchestration

- System Autom’n

- Enterprise Cons

- Access Manager

- Monitoring

- Config Manager

-Storage Manager

Integration

WebSphere Business Integration .

WebSphere MQ

Industry

Web-Sphere Branch Transfor-mation

Directory

IBM Directory

DEVELOPMENT DEPLOYMENT INTEGRATION MANAGEMENT

Database

DB2 UDB

DB2 Integrated Cluster Environment

Informix IDSJava

JRE/JVM 1.3, 1.4

Email

Lotus Workplace

IBM Middleware on Linux

IBMIBM Has More LinuxHas More Linux--Related Offerings Than Any Other VendorRelated Offerings Than Any Other Vendor

IBM Software Group

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IBM Focus in GovernmentHyper-growth Areas

DefenseSocial ServicesSecurityIT Infrastructure

IBM’s Strategic Growth Initiatives in GovernmentIBM Strategic Growth Areas

Linux, GRID, Virtualization andDeep Computing

Open StandardsReliability/SecurityScalability…Flexibility

Hundreds of Potential Focus AreasISV Solution Platforms, Supercomputing, Network Infrastructure,

Workload Consolidation, Data Consolidation, Agency Collaboration

Infrastructure Optimization

Government Access

Public Safety and Security

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Large web portal migration39 Solaris servers supporting web environment

web serving; web application serving; data centerestimated 31 ‘units of capacity’; average utilization 13%; peak utilization 29%

Migrate to 39 xSeries servers running Linux estimated 64 ‘units of capacity’ (2x current Solaris environment)

TCO Summary74% lower ‘gross’ costs over 3 year period

new xSeries purchase replacing Solaris significantly less CPU licenses neededsubstantial reduction in floor space

Savings are sufficient to cover anticipated costs of “moderate” migration effort and maintain project viability

Solaris x-Linux0

2

4

6

8

10

12

3-ye

ar IT

Exp

ense

(M$)

OtherPeopleSoftwareHardware

TCO Example: Access Portal (US)

IBM Software Group

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IBM’s Branch Transformation Solution§Software: Bank Branch Infrastructure

WebSphere, Tivoli, Lotus, DB2, RationalAll major platforms, especially LinuxPortals for ProductivitySoftware Partner applications

§Hardware: Optimized for branch deploymentScalable, capacity on demandThinkVantage PCsSelf Healing, Low Cost of ManagementNetwork

§Services: Consult, Implement, Out SourceStrategy, DesignRollout and ManagementNetwork ServicesOn Demand Services

Multi-Channel Solutions

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Linux Branch Transformation Wins

• 3500 branch clients500 branch servers (xSeries)7 enterprise servers (pSeries)

• RedHat Linux on servers and clients• IBM Bank Branch Transformation

ToolkitIBM WebSphere Application ServerIBM WebSphere MQIBM DB2IBM Tivoli Monitoring

• Replacing 4700 banking solution“If we are a bank, we should be able to show our customers that we stand for security, and

Linux is the right solution for us to use..”CIO Ramon Sales, BPI

"With this new system, our objective is to serve customers on all channels with the

same ease of use, habits and cost.". Ernesto Paolillo, General Mgr.

• 600 branches with 5000 Linux Clients Linux enterprise servers (zSeries)

• SuSE Linux on servers and clients• IBM WebSphere Application Server

IBM Lotus DominoIBM Tivoli Systems Management

• Replacing OS/2 solution with multi-channel J2EE thin client solution

IBM Software Group

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IBM Retail Environment for SuSE Linux (IRES)High level Architecture

Retail Specific Features

VisualStore

SUSE Linux Retail Solution (SLRS)

SUSE Linux Distribution (SLES 8)

IBM Middleware for Retail Outlets

360Commerce Triversity Retek PCMS

Group

POS drivers, etc.

Applications

S d Cli t I

IBM Software Group

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Other Focus IBM Linux SW for Solutions DB2 Integrated Cluster Environment (DB2 ICE)

DB2 OmnifindOpen Your Windows

MS Exchange 5.5 to Domino on Linux MigrationNT Migration to Linux

Tivoli Access Manager for Operating SystemsProvides additional security on top of strength of Linux security

Lotus Workplace Client/WSERational Deverloper PackageOpenPower Infrastructure SW Package plus 50+ ISVs SAP DB2 For Linux

IBM Software Group

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Agenda

Linux, The Alternative

IBM Software Group

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Why

Linux is flexibleLinux is secureLinux is reliable

Linux can reduce Total Cost of Ownership

Linux is an excellent path to On Demand

Total Cost of Ownership

Flexibility and Choice

Reliability .

Security .

Unixmigrations

Windowsmigrations

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Where to go to find out more . . .IBM Linux Homepage: Software / Hardware / Services, Customer References, Alliances, Partners, ISVs, Open Source Contributionshttp://www.ibm.com/linux

IBM Software on Linuxhttp://www.ibm.com/software/linux

Comprehensive free technical resource for the developer communityhttp://www.ibm.com/developerWorks/linux

IBM Linux Applicationshttp://www-3.ibm.com/software/is/mp/linux/software/

IBM Software for Linux Availabilityftp://ftp.software.ibm.com/software/linux/IBMSoftwareOnLinux.pdf

IBM Linux Customer Referenceshttp://w3.linux.ibm.com/linux/spotlight/index.shtml

IBM Linux Customer Referenceshttp://lic.austin.ibm.com/Whitepapers/linuxmatrix.html

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Japanese

Hebrew

Thank YouEnglish

MerciFrench

Russian

DankeGerman

GrazieItalian

GraciasSpanish

ObrigadoPortuguese

Arabic

Simplified Chinese

Traditional Chinese

Hindi

Tamil

Korean

Thai

The EndThe End

IBM Software Group

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Linux is flexible

Linux frees the o/s decision from the hardware decisionEnables portability of applications across systemsRemoves lock-in to one hardware platform or vendorFuture opportunity to take advantage of new technologies

Linux is supported by (nearly) all the major IT vendorsLinux is not owned by any one company

Linux is developed through the open source processDiverse collaborative community of developers and testers

IBM Software Group

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Linux is secureLinux is developed through the open source process

Peer review tends to spot security design exposures earlier

Linux is well architected for securityBuilt for the Internet eraPluggable security model with “root user” conceptFewer security patches need to be applied

Linux is achieving increasing levels of EAL certificationCommon Criteria EAL 3+ Certification

IBM Software Group

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Linux is reliableLinux kernel developers have achieved their position through natural selection

Code quality is improved by peer reviewKey designers appointed through “meritocracy”

Linux is well architected for reliabilityBuilds on good practices from UNIX and the marketplaceModular approach Kernel and user modeResult is many less hard crashes and re-boots

IBM Software Group

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Linux can reduce Total Cost of Ownership

Linux enables choice and better value in hardwareUNIX on Sun, HP -> Linux on xSeries, OpenPowerServer Farms -> Linux on zSeries, iSeries, pSeries

Linux reduces the cost of systems administrationImproved reliability and security increase the span of sysadminsLinux skills coming onto the market from the universities

Linux can reduce the cost of operating system licensesNo lock-in to 18-month upgrades (as with MS Licensing 6)

IBM Software Group

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Linux is an excellent path to On Demand

IntegrationLinux can run alongside the existing operating systemLinux enables the same application to run on different platforms

Infrastructure ManagementLinux supports one-to-many virtualization - VM, LPARsLinux supports many-to-one virtualization - Clusters, GridsLinux delivers a robust, remotely-manageable distributed platform