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Published Since 1993 Report #TCG2012002LI February 1, 2012
IBM’s Offering for a Smart, Private Cloud
Sits on a Strong Foundation
Analyst: David Reine
Management Summary
Electrical power – it surrounds us wherever we go. In our homes, we have a seemingly endless sup-
ply of electricity. Every electrical outlet represents another dynamic source of energy to power our many
devices. A new air conditioner – plug it in. A new TV – plug it in. A new microwave oven – plug it in.
Moreover, we are constantly on a quest for more – an Xbox here, a surround sound system there. Of
course, there are limits to the amount of electricity that you can put on any one circuit in your home be-
fore the circuit breaker trips and everything on that circuit stops. That is why we have multiple circuits; it
enables us to plug in even more devices until we reach the limit of energy being supplied to us. Unfortu-
nately, we do not have a dedicated power source for our homes; it is more like a 1940’s telephone party
line: we must share it with all of our neighbors. If all of your neighbors turn on their air conditioners,
TVs, and microwaves at the same time on a hot, sultry summer afternoon, you run the risk of a shortage
of power to your street, possibly resulting in a brownout or blackout. You also run the risk of power fail-
ure from the heavens, as lightning strikes or high winds can put a damper on your power. Moreover, if
someone trips the wrong circuit at Niagara Falls, an entire region can be thrown into darkness. Now, if
you had an emergency generator wired into your house circuit panel, you could continue to run all of your
appliances. If that is a little too expensive, you might install a portable generator to keep your important
resources running, at least for a while.
The availability of a sufficient supply of electricity also is of major concern for every enterprise
data center faced with increasing demands for self-service from an increasingly mobile workforce
and customers. For the data center, that concern is on two levels.
1. The data center staff needs to ensure that they have enough power, or energy, to
run the IT infrastructure and deliver services rapidly.
2. They also have to ensure that the infrastructure itself has enough resources to be
able to power an ever-expanding collection of users: customers, partners, and in-
ternal staff.
The staff must be concerned about the availabil-
ity of sufficient resources: compute power, stor-
age, and networking to support peak loads, not
just an “average” steady-state condition.
Many data centers have sufficient resources
on-hand, but because of poor utilization, they can-
not access them fully. To improve resource utiliza-
tion, and improve the total cost of ownership
(TCO) of the infrastructure, many data centers
have consolidated and virtualized their resources.
IBM’s Offering for a Smart, Private Cloud Sits on a Strong Foundation
THE CLIPPER GROUP
Navigator
TM
Navigating Information Technology Horizons
SM
IN THIS ISSUE
 A Gathering Cloud in the Data Center .. 2
 Private Cloud vs. Public Cloud ............. 3
 IBM’s BladeCenter Foundation for
Cloud ...................................................... 4
 IBM’s SmartCloud Entry Solution......... 7
 Conclusion ............................................. 7
SM
February 1, 2012 The Clipper Group Navigator
TM
Page 2
Copyright © 2012 by The Clipper Group, Inc. Reproduction prohibited without advance written permission. All rights reserved.
For some, this may not be enough! Some data
centers also look “skyward”, not to the heavens,
but to the “clouds”, with cloud computing provid-
ing outsourced resources from public clouds, such
as those established by Amazon and Google,
among many others. Still others, who may be
more concerned about security and meeting
service level agreements (SLAs), look to private
clouds implemented within their own firewall
to have control over security, access control,
high availability (HA), and disaster recovery
(DR).
Large enterprises have an assortment of pri-
vate cloud offerings available to them from any
number of vendors. For the smaller data center,
often at an SMB or SME1
, however, there are
fewer right-sized, right-priced, suitable, yet relia-
ble solutions. When determining the “right”
solution for it, the smaller enterprise must re-
member that the infrastructure inside your
cloud does matter. Downsizing the infrastruc-
ture designed for a larger enterprise is not a good
option; the smaller enterprise must right-size all
of their resources. If the smaller enterprise is
going to put all of its cloud “eggs” into one
basket, they need to be sure of the stability of
the vendor and of the resource set. One of the
solutions with a superior infrastructure, based
upon its own open systems offerings2
, is from
IBM, with its BladeCenter Foundation for Cloud
(BCFC) and its SmartCloud Entry3
solution. To
learn more about BCFC and SmartCloud Entry,
and how it can right-size application and cloud
delivery for the mid-sized data center, please read
on.
1
Often these 100-to-1000 employee firms are called “SMBs”
(Small-to-Medium Businesses) or “SMEs” (Small-to-Medium
Enterprises). These tend to smaller than the largest enterprises
but much bigger than a typical small business. The number of
employees may be an archaic indicator (as it is the volumes of
data and transactions that tend to be the metric of a mid-sized
data center), so don’t take this quantification too exactly.
When we say “smaller enterprise”, we are referring to the
businesses and government agencies that are in this very large
“middle”.
2
Open systems, in this case, refers to servers running an “x86”
architecture, like those built with Intel’s Xeon and AMD’s
Opteron processors.
3
IBM has several SmartCloud offerings, for x86 and for other
platforms. For x86, IBM offers SmartCloud Entry (also
known as IBM Starter Kit for Cloud x86 Edition), which in-
cludes many management tools, such as System Director, in a
common, integrated solution for managing the underlying
virtualized infrastructure. This can be ordered as a complete,
new stack or the necessary components can be added to exist-
ing System x infrastructure.
A Gathering Cloud in the Data Center
All enterprises, but especially the smaller
ones, have learned the bitter lessons of failing to
utilize the resources within their information tech-
nology (IT) infrastructure properly. When you
are getting less than 20% utilization from most of
your server, storage, and networking resources, it
is time to change the IT paradigm within the data
center, and beyond. It is critical for the data cen-
ter to be able to accelerate the business process
and improve time to market, as well as to get
more efficient use of their processing capability –
for delivering applications and data to a growing
collection of users and uses – in order to lower
the TCO for the IT infrastructure. Additionally,
with the amount of data being stored tending to
double every 18-to-24 months, it also is a good
time to increase storage efficiencies. This all
comes down to “right-sizing” IT infrastructure
and making it more usable and easier to man-
age in order to remove complexity. For a more
complete list of the “pain points” affecting the
smaller enterprise, see Exhibit 1, above.
Following the lead of big “cloud delivery”
players such as Amazon and Google, larger en-
terprises are looking for a robust, multi-tenant4
,
virtual infrastructure that can offer faster access to
innovation, and maximum economies of scale.
The same is true for smaller enterprises, although
it can’t be too complicated or costly. Ease of in-
stallation, provisioning, and management are key.
A proper Cloud implementation takes the next
4
A “multi-tenant” infrastructure enables separate and protect-
ed slices of server, storage, and networking that are provi-
sioned to run one or more applications.
Exhibit 1 – Key Smaller
Enterprise IT Pain Points
 Availability – Minimizes downtime, which
affects business revenue.
 Utilization – Eliminates waste in system
resources improving enterprise ROI.
 TCO – A smart private cloud reduces high,
continuing costs such as maintenance, ena-
bling reinvestment in the IT.
 Improved Flexibility – Enables better re-
sponse to changes in production, capacity
planning.
 Simplified Management – Reduces com-
plexity.
 Time to Deployment – Reduces lead-time
to productivity.
February 1, 2012 The Clipper Group Navigator
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Copyright © 2012 by The Clipper Group, Inc. Reproduction prohibited without advance written permission. All rights reserved.
step beyond virtualization. It is about a better
way to allocate and manage virtual server par-
titions and storage.
For example, most enterprises are consolidat-
ing and virtualizing applications for flexibility
and efficiency. They also are gathering and pre-
serving more structured data, such as from data-
bases; semi-structured data, like PDFs, docs, and
spreadsheets; and digital content (objects) as well,
such as videos, photos, music, and surveillance.
For many, these are being sent off “somewhere”
to one or more of these clouds. We are not talk-
ing about thousands of objects, but possibly mil-
lions or even billions, equaling up to many peta-
bytes of information per enterprise. Where can
the data center base their application set? Where
can (and should) the data center store all of this
data?
Most data centers already have taken steps
toward achieving higher efficiency, i.e., seeking
utilization rates of at least 50%, with hopes for
75%, across all of their IT resources. To achieve
these higher efficiencies, the typical data cen-
ter has proceeded down the two-lane highway
of consolidation and virtualization. For many
smaller enterprises, getting there hasn’t been
that easy (or that successful), and for good rea-
son. The complexities and costs have been
high and they lacked enough data center skills
to put together all of the pieces.
In recent years, many IT organizations have
seen a new architectural “hope” rising before
them: Cloud Infrastructure. Building upon the
benefits of consolidation and virtualization, good
cloud infrastructure can simplify resource de-
ployment and utilization even further, providing a
home for some or all of the burgeoning data
growth and/or a place to develop, test, and run
some of an enterprise’s many applications. Done
properly, good cloud infrastructure can enable
the staff to build more efficient enterprise pro-
cesses and, possibly, also help to lower the total
cost of ownership (TCO) of the IT infrastruc-
ture, as well. The challenge, of course, is doing
it properly.
Cloud Spotting
The answer tends to involve at least two
steps.
 First, there needs to be an easy way to provi-
sion and deliver virtual machines (VMs),
which are appropriately-sized server slices or
shares, in which applications are run). The
same is true for the storage and networking
bandwidth associated with the VMs and the
applications.
 Second, the ease and self-provisioning of the
cloud infrastructure needs be baked into the
new delivery vehicle.
These are related, of course.
Some enterprises have chosen the path of out-
sourcing to a public cloud (one shared with many
others), while others either desire or have de-
ployed a private cloud, to gain the benefits of the
public cloud while also improving security, ac-
cess control, availability of services, flexibility in
provisioning, and, in general, higher qualities of
service for deploying IT resources.5
In addition, the enterprise also needs to attain
a higher level of scalability from their infrastruc-
ture. You must plan for growth in services de-
manded, numbers of users and frequency of use,
more complex and involved application work-
loads, with more interaction with operational and
archival data. Having a solution that provides for
high availability and disaster recovery also is im-
portant to many, especially for mission-critical
applications and data. Cloud infrastructure
presents a good vehicle for accomplishing the-
se higher quality-of-service goals, as well.
Private Cloud vs. Public Cloud
Cloud providers, both public and private (i.e.,
in-house), usually need to deliver both application
services and information rapidly to constantly
growing demands from users. They need to de-
liver these efficiently and flexibly, in order to
lower the TCO and make the cloud an economic
success, while still providing all of the IT re-
sources when and where they are needed. Good
cloud infrastructure allows enterprises to
manage their applications services and data as
a resource, and to provision and deliver these
as clouded resources. Unfortunately, this is
something that is hard for many smaller en-
terprises to do with their available data center
staff.
The opportunities are many for solving IT
problems with public cloud solutions. Unfortu-
nately, many of the low-cost public cloud provid-
ers do not offer the range of service levels and
security required by most enterprises, and usually
contracted via SLAs. The bottom line is that pub-
5
See the issue of dated January 25, 2012, enti-
tled Moving to a Private Cloud? Infrastructure Matters,
available at http://www.clipper.com/research/TCG20120xx.pdf.
In that bulletin, we discussed the importance of infrastructure
in delivering the services levels required by a private cloud.
February 1, 2012 The Clipper Group Navigator
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Copyright © 2012 by The Clipper Group, Inc. Reproduction prohibited without advance written permission. All rights reserved.
lic clouds usually do not deliver the SLAs that are
needed for mission- and business-critical applica-
tions and data. Enterprises must look to their
own private cloud(s) to avoid the storm caused
by outages and security failures, and to satisfy
these requirements. Smaller enterprises need
most of these, as well, just on a smaller scale
and with less complexity.
An enterprise’s private cloud can exist within
the walls of the enterprise (physically in one
place) or can be extended across several-to-many
locations (including multiple data centers, a data
center and many branch offices, etc.). The key
point here is that the private cloud almost always
sits behind the enterprise’s secure firewall, which
may encompass more than one location. This
often is done not just to be cloud-like but also to
bring the applications and data closer to its users,
in a secure and protected manner.
Many enterprises desiring a private cloud
want to share the cloud resources between the
enterprise data center and regional branch offices,
typically requiring access to more and more en-
terprise data. In a private cloud, services must be
constantly, and securely, available.
Because a public cloud is sharable, cloud ser-
vices and storage must have a charge back mech-
anism for the enterprises using it. A private
cloud, on the other hand, may not need to charge
resource time back to the various internal depart-
ments.6
It’s About Having The Right Infrastructure
With the right hardware infrastructure, a
cloud should really lower your TCO and improve
your return on investment (ROI) for that infra-
structure. However, many smaller enterprises
that recognize the advantages of a cloud fear
the complexities involved. They seek a simpler
solution that will reduce complexity and risk,
while still providing better resource utilization.
Some vendors providing cloud infrastructure have
taken this message to heart and developed man-
agement tools that will provide ease-of-use to the
IT staff, especially to the staff in the smaller en-
terprise that may not have the time or expertise
required to deploy and manage a private cloud
manually. This is why help often is needed for
smaller enterprises.
6
The point here is that it takes more than a little sophistication
to do charge back in a meaningful way.
IBM’s BladeCenter Foundation for
Cloud
One of those vendors is IBM, especially with
its development of SmartCloud configurations to
sit on top of its BladeCenter Foundation for
Cloud (BCFC) offerings. BCFC is comprehen-
sive virtualization solution designed to deliver
consolidation and virtualization, in order to
improve the availability, efficiency, and utiliza-
tion of IT resources. This is the foundation on
which “the cloud” sits. The cloud is a subscrip-
tion (allocation, provisioning, delivery, and man-
agement overlay) that rides on the consolidated
and virtualized resources that lies beneath it.
(More on this later.) Together, they stand as one
solution, but one part (SmartCloud Entry) sits
atop the other (BCFC). (See the rightmost stack
in Exhibit 2, at the top of the next page.)
BCFC comes as a comprehensive, converged
platform with “out-of-the-box” manageability via
an included IBM System Director, to reduce com-
plexity and infrastructure costs through standardi-
zation. It enables a fast, complete virtualized
platform installation, designed to deploy a high-
performance, reliable, scalable data center re-
source easily. As a result, the enterprise can ex-
perience a short time-to-value with a lowered IT
cost. It reduces both the complexity and risk of
deployment while enabling improved networking.
BCFC enables the IT staff to change the para-
digm of data center operations.7
With the IBM BladeCenter H8
chassis and
IBM BladeCenter HS22V x86 blades at its core,
BCFC can virtualize all of the enterprise applica-
tions. With the included IBM DS3524 disk ar-
ray9
, BCFC can deliver high-performance, cost-
optimized storage with high bandwidth. In addi-
tion, BCFC comes with converged FCoE (Fibre
Channel over Ethernet) networking for 10GbE
and 8Gb Fibre Channel communications, with a
variety of options from BNT, Emulex, and
QLogic. IBM also can provide all of the profes-
sional services required for a smooth start-up.
7
See The Clipper Group Navigator entitled IBM Simpli-
fies the Enterprise Data Center with Flexibility, Performance
and Convergence, dated March 1, 2011, at
http://www.clipper.com/research/TCG2011010.pdf.
8
See The Clipper Group Navigator entitled IBM In-
creases Blade Performance, Lowers Cost – Eliminating the
Fight, Enabling the Switch(es), dated January 29, 2007, at
http://www.clipper.com/research/TCG2007010.pdf.
9
See The Clipper Group Navigator entitled Delivering
Enterprise Features for the Mid-Range – IBM Introduces
DS3500 with TPC MRE, dated June 7, 2010, at
http://www.clipper.com/research/TCG2010027.pdf.
February 1, 2012 The Clipper Group Navigator
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Copyright © 2012 by The Clipper Group, Inc. Reproduction prohibited without advance written permission. All rights reserved.
The richness of IBM’s System x offerings
is a great solution for the larger enterprise
with the human IT resources to customize the
stack. But what about the smaller enterprise?
How does it acquire the right stack for consoli-
dation and virtualization?
For the smaller enterprise, IBM has intro-
duced the IBM SmartCloud Entry for the sim-
plified deployment of an affordable, feature
rich cloud. (This is the upper part of the stack
represented in Exhibit 2, above, which is labeled
“Self Service & Automation” and shown in pur-
ple.) It complements and completes IBM’s
BCFC, and delivers an easy-to-use, feature-rich
cloud environment. Thus, BCFC provides a
fully integrated foundation to transform the
data center at smaller enterprises. If you al-
ready have the BCFC (the lower part of the stack)
then you can add the SmartCloud Entry software
to complete your cloud delivery solution. For
those who do not have the BCFC, the entire con-
solidation, virtualization, and cloud environment
solution can be ordered as a single, affordable
stack, in a range of sizes targeted at smaller enter-
prises. (See the three BCFC sizings in Exhibit 3,
at the top of the next page.)
System x and BladeCenter Inside BCFC
With IBM System x10
and IBM BladeCenter
with x86 systems as a base, combined with IBM’s
DS3500 storage arrays11
, IBM provides the
smaller enterprise with the kind of robust systems
that are required for cloud computing. As stated
earlier, infrastructure does matter (a lot) in the
deployment and delivery of a consolidated and
virtualized environment for the smaller enterprise
(or branch office). IBM’s BCFC environment
provides a superior environment with a com-
prehensive, converged solution that combines
network, servers, storage, management, and
services required to evolve into the next level, a
robust, virtualized cloud environment. While
remaining an open (x86) system, IBM’s System x
provides these extra capabilities to the data cen-
ter.12
10
See The Clipper Group Navigator entitled IBM In-
troduces More-Efficient x86 Servers - Improving, Virtualiza-
tion, Energy, Lowering TCO dated March 26, 2010, at
http://www.clipper.com/research/TCG2010010.pdf.
11
See The Clipper Group Navigator Delivering
Enterprise Features for the Mid-Range – IBM Introduces
DS3500 with TPC MRE dated June 7, 2010, at
http://www.clipper.com/research/TCG2010027.pdf.
12
See The Clipper Group Navigator entitled IBM x86
Processor Infrastructure – Creating an Enterprise-
Class x86 Server dated March 9, 2010, at
http://www.clipper.com/research/TCG2010009.pdf.
Exhibit 2 —
IBM’s SmartCloud Entry Extends IBM BladeCenter Foundation for Cloud
Source: IBM
February 1, 2012 The Clipper Group Navigator
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Copyright © 2012 by The Clipper Group, Inc. Reproduction prohibited without advance written permission. All rights reserved.
 IBM X-Architecture technology (eX5) – eX5
has a number of features to boost performance
and minimize licensing costs; among them, de-
coupling memory from the processor and ena-
bling the enterprise to add memory, and VMs,
as needed without having to add more proces-
sors.
 Max5 – Max5 is an innovative technology that
enables a Gen 5 System x server to connect to
an external 1U memory chassis. It enables
System x to decouple server memory from sys-
tem processors and allows the server to opti-
mize performance with up to two times the
memory capacity of competing servers.
 FlexNode Capability – providing unprecedent-
ed flexibility to the data center, enabling it to
transform a single four-socket eX5 system dy-
namically into two distinct two-socket systems,
and also reverse the process, dynamically. This
enables the data center to optimize changing
application performance needs.
 Light Path Diagnostics and Predictive Failure
Analysis – helping the IT staff to avoid inter-
ruptions on mission-critical workloads.
 eXFlash SSD technology – eXFlash provides
maximum internal storage performance for
System x Gen 5 servers with solid-state disk
technology and a new high-speed controller,
replacing IOPS-limiting hard disk drives
(HDDs).
To these System x capabilities, IBM adds se-
curity and governance, platform optimization, a
single management interface for servers, storage,
and networking, and image management to im-
prove service delivery. IBM improves data center
flexibility by supporting multiple hypervisors,
VMware and PowerVM13
today, with Hyper-V
and KVM to follow.
VMware is managed through the IBM Virtu-
alization Manager, which is an extension to IBM
System Director. Virtualization Manager inte-
grates with and complements VMware Virtual-
Center. This simplifies management of VMware-
based virtual server environments. It enables the
administrator to discover, visualize, and manage
both physical and virtual systems from a single
console. The benefits of Virtualization Manager
are highlighted in Exhibit 4, at the top of the next
page.
With all of these capabilities, BCFC consti-
tutes the necessary foundation for modern-day
computing (i.e., application and data delivery), all
13
There is a SmartCloud Entry solution for Power Systems;
however, this bulletin focuses on IBM’s x86-based Smart-
Cloud Entry offerings.
Exhibit 3 — How IBM BladeCenter Foundation Scales
Source: IBM
February 1, 2012 The Clipper Group Navigator
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Copyright © 2012 by The Clipper Group, Inc. Reproduction prohibited without advance written permission. All rights reserved.
in a complete and neat package. Remember that
a good foundation is the necessary first step.
IBM’s SmartCloud Entry Solution
The feature-rich BCFC stack enables IBM
to deliver an integrated foundation upon
which to add SmartCloud Entry (for easy-to-
use cloud provisioning and management).
This allows the smaller enterprise to deploy a
private cloud with standard cloud services for
metering, billing, scheduling, and service or-
chestration in a multi-tenant environment. It
addresses the pain points of the smaller, less so-
phisticated data center (as shown in Exhibit 1, on
page 2), creating a shared environment that sim-
plifies the management of data center resources
through a self-service portal.
SmartCloud Entry delivers leadership per-
formance, easy-to-use scalability, and extreme
reliability, all while reducing complexity with a
simplified management capability. All of these
features are prerequisites for a successful cloud
deployment in an environment demanding good
response and availability. IBM’s SmartCloud
Entry is a high-value solution for the smaller
enterprise, providing a lot more IT for a lot
less money (than building it from the pieces or
buying it from another vendor), resulting in a
lower TCO. By employing standard compo-
nents, IBM can configure an entry-level BCFC
system with four compute blades for about
$180K, at list (as shown in Exhibit 3, on page 5),
not including the SmartCloud Entry Software
Stack; this may be different for each configura-
tion. However, the SmartCloud Entry stack
should only add about $1900 to each server. A
medium-sized configuration with 14 compute
blades goes for about $410K, at list, while a larg-
er configuration with 28 capacity blades costs
around $840K, at list.
Conclusion
In deploying a cloud, the smaller enterprise
needs to assure itself that that it has more than just
pieces needed for success, it needs a complete
stack, like the one shown in Exhibit 2, on page 5.
It needs a simplified, integrated solution that pro-
vides virtualization, self-service, metering, image
control, high performance, reliability, and scala-
bility, along with self-service functionality for all
in the user community and ease of management,
in order to minimize the amount of administrator
involvement required. Even more importantly,
the IT staff needs a stable hardware infrastructure
to ensure the reliability that will be expected from
their user community. With IBM’s BCFC, you
have the pieces and the framework for non-
disruptive growth. By adding SmartCloud
Entry, the smaller enterprise gets just that (a
smart cloud solution for the smaller enter-
prise), without having to buy too much (i.e., a
solution scaled for a larger enterprise).
With a complete stack that includes IBM’s
System x servers, DS3500 storage arrays, and a
variety of certified, trusted network switches and
controllers, the smaller enterprise data center gets
more than just another loaded rack. SmartCloud
Entry adds just the right amount of cloud provi-
sioning and management for the smaller enter-
prise. It makes virtualization easier.
In addition, IBM BladeCenter systems have a
proven virtualization and cloud solution infra-
structure, including IBM Cloud Software and
VMware Director. If needed, IBM’s professional
services are available to ensure that the cloud de-
ployment is fast, efficient, and successful. IBM is
helping to change the economics of business in-
frastructure.
If you are looking to deploy a cloud for the
first time, IBM can provide all of the services that
a smaller enterprise needs with their SmartCloud
Entry. Don’t forget, infrastructure really does
matter! Take a close look at
what’s under the hood (in the
stack of the BCFC and Smart-
Cloud Entry) and be sure to
read the operators manual (be-
cause the cloud is about getting
to where you want to go with-
out too much trouble)! IBM
seems to have done this well.
Check it out! SM
Exhibit 4 — Benefits of
IBM Virtualization Manager
 Provides a single console to manage both
physical and virtual systems;
 Easy to install and use;
 Proactive virtual machine (VM) migration
based upon predictive alerting to help
avoid downtime;
 Drives VMware’s VMotion, using physical
hardware status information;
 Helps increase serviceability by migrating
VMs to a standby server during a service
window.
Source: IBM
February 1, 2012 The Clipper Group Navigator
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Copyright © 2012 by The Clipper Group, Inc. Reproduction prohibited without advance written permission. All rights reserved.
About The Clipper Group, Inc.
The Clipper Group, Inc., now in its twentieth year, is an independent publishing and con-
sulting firm specializing in acquisition decisions and strategic advice regarding complex, en-
terprise-class information technologies. Our team of industry professionals averages more
than 25 years of real-world experience. A team of staff consultants augments our capabilities,
with significant experience across a broad spectrum of applications and environments.
 The Clipper Group can be reached at 781-235-0085 and found on the web at
www.clipper.com.
About the Author
David Reine is a Senior Contributing Analyst for The Clipper Group. Mr. Reine spe-
cializes in enterprise servers, storage, and software, strategic business solutions, and trends in
open systems architectures. In 2002, he joined The Clipper Group after three decades in serv-
er and storage product marketing and program management for Groupe Bull, Zenith Data
Systems, and Honeywell Information Systems. Mr. Reine earned a Bachelor of Arts degree
from Tufts University, and an MBA from Northeastern University.
 Reach David Reine via e-mail at dave.reine@clipper.com or at 781-235-0085 Ext. 123.
(Please dial “123” when you hear the automated attendant.)
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IBM's SmartCloud Entry Solution Provides a Scalable Private Cloud Foundation for SMBs

  • 1. The Clipper Group, Inc. - Technology Acquisition Consultants  Internet Publisher One Forest Green Road  Rye, New Hampshire 03870  U.S.A.  781-235-0085  781-235-5454 FAX Visit Clipper at www.clipper.com  Send comments to editor@clipper.com Published Since 1993 Report #TCG2012002LI February 1, 2012 IBM’s Offering for a Smart, Private Cloud Sits on a Strong Foundation Analyst: David Reine Management Summary Electrical power – it surrounds us wherever we go. In our homes, we have a seemingly endless sup- ply of electricity. Every electrical outlet represents another dynamic source of energy to power our many devices. A new air conditioner – plug it in. A new TV – plug it in. A new microwave oven – plug it in. Moreover, we are constantly on a quest for more – an Xbox here, a surround sound system there. Of course, there are limits to the amount of electricity that you can put on any one circuit in your home be- fore the circuit breaker trips and everything on that circuit stops. That is why we have multiple circuits; it enables us to plug in even more devices until we reach the limit of energy being supplied to us. Unfortu- nately, we do not have a dedicated power source for our homes; it is more like a 1940’s telephone party line: we must share it with all of our neighbors. If all of your neighbors turn on their air conditioners, TVs, and microwaves at the same time on a hot, sultry summer afternoon, you run the risk of a shortage of power to your street, possibly resulting in a brownout or blackout. You also run the risk of power fail- ure from the heavens, as lightning strikes or high winds can put a damper on your power. Moreover, if someone trips the wrong circuit at Niagara Falls, an entire region can be thrown into darkness. Now, if you had an emergency generator wired into your house circuit panel, you could continue to run all of your appliances. If that is a little too expensive, you might install a portable generator to keep your important resources running, at least for a while. The availability of a sufficient supply of electricity also is of major concern for every enterprise data center faced with increasing demands for self-service from an increasingly mobile workforce and customers. For the data center, that concern is on two levels. 1. The data center staff needs to ensure that they have enough power, or energy, to run the IT infrastructure and deliver services rapidly. 2. They also have to ensure that the infrastructure itself has enough resources to be able to power an ever-expanding collection of users: customers, partners, and in- ternal staff. The staff must be concerned about the availabil- ity of sufficient resources: compute power, stor- age, and networking to support peak loads, not just an “average” steady-state condition. Many data centers have sufficient resources on-hand, but because of poor utilization, they can- not access them fully. To improve resource utiliza- tion, and improve the total cost of ownership (TCO) of the infrastructure, many data centers have consolidated and virtualized their resources. IBM’s Offering for a Smart, Private Cloud Sits on a Strong Foundation THE CLIPPER GROUP Navigator TM Navigating Information Technology Horizons SM IN THIS ISSUE  A Gathering Cloud in the Data Center .. 2  Private Cloud vs. Public Cloud ............. 3  IBM’s BladeCenter Foundation for Cloud ...................................................... 4  IBM’s SmartCloud Entry Solution......... 7  Conclusion ............................................. 7 SM
  • 2. February 1, 2012 The Clipper Group Navigator TM Page 2 Copyright © 2012 by The Clipper Group, Inc. Reproduction prohibited without advance written permission. All rights reserved. For some, this may not be enough! Some data centers also look “skyward”, not to the heavens, but to the “clouds”, with cloud computing provid- ing outsourced resources from public clouds, such as those established by Amazon and Google, among many others. Still others, who may be more concerned about security and meeting service level agreements (SLAs), look to private clouds implemented within their own firewall to have control over security, access control, high availability (HA), and disaster recovery (DR). Large enterprises have an assortment of pri- vate cloud offerings available to them from any number of vendors. For the smaller data center, often at an SMB or SME1 , however, there are fewer right-sized, right-priced, suitable, yet relia- ble solutions. When determining the “right” solution for it, the smaller enterprise must re- member that the infrastructure inside your cloud does matter. Downsizing the infrastruc- ture designed for a larger enterprise is not a good option; the smaller enterprise must right-size all of their resources. If the smaller enterprise is going to put all of its cloud “eggs” into one basket, they need to be sure of the stability of the vendor and of the resource set. One of the solutions with a superior infrastructure, based upon its own open systems offerings2 , is from IBM, with its BladeCenter Foundation for Cloud (BCFC) and its SmartCloud Entry3 solution. To learn more about BCFC and SmartCloud Entry, and how it can right-size application and cloud delivery for the mid-sized data center, please read on. 1 Often these 100-to-1000 employee firms are called “SMBs” (Small-to-Medium Businesses) or “SMEs” (Small-to-Medium Enterprises). These tend to smaller than the largest enterprises but much bigger than a typical small business. The number of employees may be an archaic indicator (as it is the volumes of data and transactions that tend to be the metric of a mid-sized data center), so don’t take this quantification too exactly. When we say “smaller enterprise”, we are referring to the businesses and government agencies that are in this very large “middle”. 2 Open systems, in this case, refers to servers running an “x86” architecture, like those built with Intel’s Xeon and AMD’s Opteron processors. 3 IBM has several SmartCloud offerings, for x86 and for other platforms. For x86, IBM offers SmartCloud Entry (also known as IBM Starter Kit for Cloud x86 Edition), which in- cludes many management tools, such as System Director, in a common, integrated solution for managing the underlying virtualized infrastructure. This can be ordered as a complete, new stack or the necessary components can be added to exist- ing System x infrastructure. A Gathering Cloud in the Data Center All enterprises, but especially the smaller ones, have learned the bitter lessons of failing to utilize the resources within their information tech- nology (IT) infrastructure properly. When you are getting less than 20% utilization from most of your server, storage, and networking resources, it is time to change the IT paradigm within the data center, and beyond. It is critical for the data cen- ter to be able to accelerate the business process and improve time to market, as well as to get more efficient use of their processing capability – for delivering applications and data to a growing collection of users and uses – in order to lower the TCO for the IT infrastructure. Additionally, with the amount of data being stored tending to double every 18-to-24 months, it also is a good time to increase storage efficiencies. This all comes down to “right-sizing” IT infrastructure and making it more usable and easier to man- age in order to remove complexity. For a more complete list of the “pain points” affecting the smaller enterprise, see Exhibit 1, above. Following the lead of big “cloud delivery” players such as Amazon and Google, larger en- terprises are looking for a robust, multi-tenant4 , virtual infrastructure that can offer faster access to innovation, and maximum economies of scale. The same is true for smaller enterprises, although it can’t be too complicated or costly. Ease of in- stallation, provisioning, and management are key. A proper Cloud implementation takes the next 4 A “multi-tenant” infrastructure enables separate and protect- ed slices of server, storage, and networking that are provi- sioned to run one or more applications. Exhibit 1 – Key Smaller Enterprise IT Pain Points  Availability – Minimizes downtime, which affects business revenue.  Utilization – Eliminates waste in system resources improving enterprise ROI.  TCO – A smart private cloud reduces high, continuing costs such as maintenance, ena- bling reinvestment in the IT.  Improved Flexibility – Enables better re- sponse to changes in production, capacity planning.  Simplified Management – Reduces com- plexity.  Time to Deployment – Reduces lead-time to productivity.
  • 3. February 1, 2012 The Clipper Group Navigator TM Page 3 Copyright © 2012 by The Clipper Group, Inc. Reproduction prohibited without advance written permission. All rights reserved. step beyond virtualization. It is about a better way to allocate and manage virtual server par- titions and storage. For example, most enterprises are consolidat- ing and virtualizing applications for flexibility and efficiency. They also are gathering and pre- serving more structured data, such as from data- bases; semi-structured data, like PDFs, docs, and spreadsheets; and digital content (objects) as well, such as videos, photos, music, and surveillance. For many, these are being sent off “somewhere” to one or more of these clouds. We are not talk- ing about thousands of objects, but possibly mil- lions or even billions, equaling up to many peta- bytes of information per enterprise. Where can the data center base their application set? Where can (and should) the data center store all of this data? Most data centers already have taken steps toward achieving higher efficiency, i.e., seeking utilization rates of at least 50%, with hopes for 75%, across all of their IT resources. To achieve these higher efficiencies, the typical data cen- ter has proceeded down the two-lane highway of consolidation and virtualization. For many smaller enterprises, getting there hasn’t been that easy (or that successful), and for good rea- son. The complexities and costs have been high and they lacked enough data center skills to put together all of the pieces. In recent years, many IT organizations have seen a new architectural “hope” rising before them: Cloud Infrastructure. Building upon the benefits of consolidation and virtualization, good cloud infrastructure can simplify resource de- ployment and utilization even further, providing a home for some or all of the burgeoning data growth and/or a place to develop, test, and run some of an enterprise’s many applications. Done properly, good cloud infrastructure can enable the staff to build more efficient enterprise pro- cesses and, possibly, also help to lower the total cost of ownership (TCO) of the IT infrastruc- ture, as well. The challenge, of course, is doing it properly. Cloud Spotting The answer tends to involve at least two steps.  First, there needs to be an easy way to provi- sion and deliver virtual machines (VMs), which are appropriately-sized server slices or shares, in which applications are run). The same is true for the storage and networking bandwidth associated with the VMs and the applications.  Second, the ease and self-provisioning of the cloud infrastructure needs be baked into the new delivery vehicle. These are related, of course. Some enterprises have chosen the path of out- sourcing to a public cloud (one shared with many others), while others either desire or have de- ployed a private cloud, to gain the benefits of the public cloud while also improving security, ac- cess control, availability of services, flexibility in provisioning, and, in general, higher qualities of service for deploying IT resources.5 In addition, the enterprise also needs to attain a higher level of scalability from their infrastruc- ture. You must plan for growth in services de- manded, numbers of users and frequency of use, more complex and involved application work- loads, with more interaction with operational and archival data. Having a solution that provides for high availability and disaster recovery also is im- portant to many, especially for mission-critical applications and data. Cloud infrastructure presents a good vehicle for accomplishing the- se higher quality-of-service goals, as well. Private Cloud vs. Public Cloud Cloud providers, both public and private (i.e., in-house), usually need to deliver both application services and information rapidly to constantly growing demands from users. They need to de- liver these efficiently and flexibly, in order to lower the TCO and make the cloud an economic success, while still providing all of the IT re- sources when and where they are needed. Good cloud infrastructure allows enterprises to manage their applications services and data as a resource, and to provision and deliver these as clouded resources. Unfortunately, this is something that is hard for many smaller en- terprises to do with their available data center staff. The opportunities are many for solving IT problems with public cloud solutions. Unfortu- nately, many of the low-cost public cloud provid- ers do not offer the range of service levels and security required by most enterprises, and usually contracted via SLAs. The bottom line is that pub- 5 See the issue of dated January 25, 2012, enti- tled Moving to a Private Cloud? Infrastructure Matters, available at http://www.clipper.com/research/TCG20120xx.pdf. In that bulletin, we discussed the importance of infrastructure in delivering the services levels required by a private cloud.
  • 4. February 1, 2012 The Clipper Group Navigator TM Page 4 Copyright © 2012 by The Clipper Group, Inc. Reproduction prohibited without advance written permission. All rights reserved. lic clouds usually do not deliver the SLAs that are needed for mission- and business-critical applica- tions and data. Enterprises must look to their own private cloud(s) to avoid the storm caused by outages and security failures, and to satisfy these requirements. Smaller enterprises need most of these, as well, just on a smaller scale and with less complexity. An enterprise’s private cloud can exist within the walls of the enterprise (physically in one place) or can be extended across several-to-many locations (including multiple data centers, a data center and many branch offices, etc.). The key point here is that the private cloud almost always sits behind the enterprise’s secure firewall, which may encompass more than one location. This often is done not just to be cloud-like but also to bring the applications and data closer to its users, in a secure and protected manner. Many enterprises desiring a private cloud want to share the cloud resources between the enterprise data center and regional branch offices, typically requiring access to more and more en- terprise data. In a private cloud, services must be constantly, and securely, available. Because a public cloud is sharable, cloud ser- vices and storage must have a charge back mech- anism for the enterprises using it. A private cloud, on the other hand, may not need to charge resource time back to the various internal depart- ments.6 It’s About Having The Right Infrastructure With the right hardware infrastructure, a cloud should really lower your TCO and improve your return on investment (ROI) for that infra- structure. However, many smaller enterprises that recognize the advantages of a cloud fear the complexities involved. They seek a simpler solution that will reduce complexity and risk, while still providing better resource utilization. Some vendors providing cloud infrastructure have taken this message to heart and developed man- agement tools that will provide ease-of-use to the IT staff, especially to the staff in the smaller en- terprise that may not have the time or expertise required to deploy and manage a private cloud manually. This is why help often is needed for smaller enterprises. 6 The point here is that it takes more than a little sophistication to do charge back in a meaningful way. IBM’s BladeCenter Foundation for Cloud One of those vendors is IBM, especially with its development of SmartCloud configurations to sit on top of its BladeCenter Foundation for Cloud (BCFC) offerings. BCFC is comprehen- sive virtualization solution designed to deliver consolidation and virtualization, in order to improve the availability, efficiency, and utiliza- tion of IT resources. This is the foundation on which “the cloud” sits. The cloud is a subscrip- tion (allocation, provisioning, delivery, and man- agement overlay) that rides on the consolidated and virtualized resources that lies beneath it. (More on this later.) Together, they stand as one solution, but one part (SmartCloud Entry) sits atop the other (BCFC). (See the rightmost stack in Exhibit 2, at the top of the next page.) BCFC comes as a comprehensive, converged platform with “out-of-the-box” manageability via an included IBM System Director, to reduce com- plexity and infrastructure costs through standardi- zation. It enables a fast, complete virtualized platform installation, designed to deploy a high- performance, reliable, scalable data center re- source easily. As a result, the enterprise can ex- perience a short time-to-value with a lowered IT cost. It reduces both the complexity and risk of deployment while enabling improved networking. BCFC enables the IT staff to change the para- digm of data center operations.7 With the IBM BladeCenter H8 chassis and IBM BladeCenter HS22V x86 blades at its core, BCFC can virtualize all of the enterprise applica- tions. With the included IBM DS3524 disk ar- ray9 , BCFC can deliver high-performance, cost- optimized storage with high bandwidth. In addi- tion, BCFC comes with converged FCoE (Fibre Channel over Ethernet) networking for 10GbE and 8Gb Fibre Channel communications, with a variety of options from BNT, Emulex, and QLogic. IBM also can provide all of the profes- sional services required for a smooth start-up. 7 See The Clipper Group Navigator entitled IBM Simpli- fies the Enterprise Data Center with Flexibility, Performance and Convergence, dated March 1, 2011, at http://www.clipper.com/research/TCG2011010.pdf. 8 See The Clipper Group Navigator entitled IBM In- creases Blade Performance, Lowers Cost – Eliminating the Fight, Enabling the Switch(es), dated January 29, 2007, at http://www.clipper.com/research/TCG2007010.pdf. 9 See The Clipper Group Navigator entitled Delivering Enterprise Features for the Mid-Range – IBM Introduces DS3500 with TPC MRE, dated June 7, 2010, at http://www.clipper.com/research/TCG2010027.pdf.
  • 5. February 1, 2012 The Clipper Group Navigator TM Page 5 Copyright © 2012 by The Clipper Group, Inc. Reproduction prohibited without advance written permission. All rights reserved. The richness of IBM’s System x offerings is a great solution for the larger enterprise with the human IT resources to customize the stack. But what about the smaller enterprise? How does it acquire the right stack for consoli- dation and virtualization? For the smaller enterprise, IBM has intro- duced the IBM SmartCloud Entry for the sim- plified deployment of an affordable, feature rich cloud. (This is the upper part of the stack represented in Exhibit 2, above, which is labeled “Self Service & Automation” and shown in pur- ple.) It complements and completes IBM’s BCFC, and delivers an easy-to-use, feature-rich cloud environment. Thus, BCFC provides a fully integrated foundation to transform the data center at smaller enterprises. If you al- ready have the BCFC (the lower part of the stack) then you can add the SmartCloud Entry software to complete your cloud delivery solution. For those who do not have the BCFC, the entire con- solidation, virtualization, and cloud environment solution can be ordered as a single, affordable stack, in a range of sizes targeted at smaller enter- prises. (See the three BCFC sizings in Exhibit 3, at the top of the next page.) System x and BladeCenter Inside BCFC With IBM System x10 and IBM BladeCenter with x86 systems as a base, combined with IBM’s DS3500 storage arrays11 , IBM provides the smaller enterprise with the kind of robust systems that are required for cloud computing. As stated earlier, infrastructure does matter (a lot) in the deployment and delivery of a consolidated and virtualized environment for the smaller enterprise (or branch office). IBM’s BCFC environment provides a superior environment with a com- prehensive, converged solution that combines network, servers, storage, management, and services required to evolve into the next level, a robust, virtualized cloud environment. While remaining an open (x86) system, IBM’s System x provides these extra capabilities to the data cen- ter.12 10 See The Clipper Group Navigator entitled IBM In- troduces More-Efficient x86 Servers - Improving, Virtualiza- tion, Energy, Lowering TCO dated March 26, 2010, at http://www.clipper.com/research/TCG2010010.pdf. 11 See The Clipper Group Navigator Delivering Enterprise Features for the Mid-Range – IBM Introduces DS3500 with TPC MRE dated June 7, 2010, at http://www.clipper.com/research/TCG2010027.pdf. 12 See The Clipper Group Navigator entitled IBM x86 Processor Infrastructure – Creating an Enterprise- Class x86 Server dated March 9, 2010, at http://www.clipper.com/research/TCG2010009.pdf. Exhibit 2 — IBM’s SmartCloud Entry Extends IBM BladeCenter Foundation for Cloud Source: IBM
  • 6. February 1, 2012 The Clipper Group Navigator TM Page 6 Copyright © 2012 by The Clipper Group, Inc. Reproduction prohibited without advance written permission. All rights reserved.  IBM X-Architecture technology (eX5) – eX5 has a number of features to boost performance and minimize licensing costs; among them, de- coupling memory from the processor and ena- bling the enterprise to add memory, and VMs, as needed without having to add more proces- sors.  Max5 – Max5 is an innovative technology that enables a Gen 5 System x server to connect to an external 1U memory chassis. It enables System x to decouple server memory from sys- tem processors and allows the server to opti- mize performance with up to two times the memory capacity of competing servers.  FlexNode Capability – providing unprecedent- ed flexibility to the data center, enabling it to transform a single four-socket eX5 system dy- namically into two distinct two-socket systems, and also reverse the process, dynamically. This enables the data center to optimize changing application performance needs.  Light Path Diagnostics and Predictive Failure Analysis – helping the IT staff to avoid inter- ruptions on mission-critical workloads.  eXFlash SSD technology – eXFlash provides maximum internal storage performance for System x Gen 5 servers with solid-state disk technology and a new high-speed controller, replacing IOPS-limiting hard disk drives (HDDs). To these System x capabilities, IBM adds se- curity and governance, platform optimization, a single management interface for servers, storage, and networking, and image management to im- prove service delivery. IBM improves data center flexibility by supporting multiple hypervisors, VMware and PowerVM13 today, with Hyper-V and KVM to follow. VMware is managed through the IBM Virtu- alization Manager, which is an extension to IBM System Director. Virtualization Manager inte- grates with and complements VMware Virtual- Center. This simplifies management of VMware- based virtual server environments. It enables the administrator to discover, visualize, and manage both physical and virtual systems from a single console. The benefits of Virtualization Manager are highlighted in Exhibit 4, at the top of the next page. With all of these capabilities, BCFC consti- tutes the necessary foundation for modern-day computing (i.e., application and data delivery), all 13 There is a SmartCloud Entry solution for Power Systems; however, this bulletin focuses on IBM’s x86-based Smart- Cloud Entry offerings. Exhibit 3 — How IBM BladeCenter Foundation Scales Source: IBM
  • 7. February 1, 2012 The Clipper Group Navigator TM Page 7 Copyright © 2012 by The Clipper Group, Inc. Reproduction prohibited without advance written permission. All rights reserved. in a complete and neat package. Remember that a good foundation is the necessary first step. IBM’s SmartCloud Entry Solution The feature-rich BCFC stack enables IBM to deliver an integrated foundation upon which to add SmartCloud Entry (for easy-to- use cloud provisioning and management). This allows the smaller enterprise to deploy a private cloud with standard cloud services for metering, billing, scheduling, and service or- chestration in a multi-tenant environment. It addresses the pain points of the smaller, less so- phisticated data center (as shown in Exhibit 1, on page 2), creating a shared environment that sim- plifies the management of data center resources through a self-service portal. SmartCloud Entry delivers leadership per- formance, easy-to-use scalability, and extreme reliability, all while reducing complexity with a simplified management capability. All of these features are prerequisites for a successful cloud deployment in an environment demanding good response and availability. IBM’s SmartCloud Entry is a high-value solution for the smaller enterprise, providing a lot more IT for a lot less money (than building it from the pieces or buying it from another vendor), resulting in a lower TCO. By employing standard compo- nents, IBM can configure an entry-level BCFC system with four compute blades for about $180K, at list (as shown in Exhibit 3, on page 5), not including the SmartCloud Entry Software Stack; this may be different for each configura- tion. However, the SmartCloud Entry stack should only add about $1900 to each server. A medium-sized configuration with 14 compute blades goes for about $410K, at list, while a larg- er configuration with 28 capacity blades costs around $840K, at list. Conclusion In deploying a cloud, the smaller enterprise needs to assure itself that that it has more than just pieces needed for success, it needs a complete stack, like the one shown in Exhibit 2, on page 5. It needs a simplified, integrated solution that pro- vides virtualization, self-service, metering, image control, high performance, reliability, and scala- bility, along with self-service functionality for all in the user community and ease of management, in order to minimize the amount of administrator involvement required. Even more importantly, the IT staff needs a stable hardware infrastructure to ensure the reliability that will be expected from their user community. With IBM’s BCFC, you have the pieces and the framework for non- disruptive growth. By adding SmartCloud Entry, the smaller enterprise gets just that (a smart cloud solution for the smaller enter- prise), without having to buy too much (i.e., a solution scaled for a larger enterprise). With a complete stack that includes IBM’s System x servers, DS3500 storage arrays, and a variety of certified, trusted network switches and controllers, the smaller enterprise data center gets more than just another loaded rack. SmartCloud Entry adds just the right amount of cloud provi- sioning and management for the smaller enter- prise. It makes virtualization easier. In addition, IBM BladeCenter systems have a proven virtualization and cloud solution infra- structure, including IBM Cloud Software and VMware Director. If needed, IBM’s professional services are available to ensure that the cloud de- ployment is fast, efficient, and successful. IBM is helping to change the economics of business in- frastructure. If you are looking to deploy a cloud for the first time, IBM can provide all of the services that a smaller enterprise needs with their SmartCloud Entry. Don’t forget, infrastructure really does matter! Take a close look at what’s under the hood (in the stack of the BCFC and Smart- Cloud Entry) and be sure to read the operators manual (be- cause the cloud is about getting to where you want to go with- out too much trouble)! IBM seems to have done this well. Check it out! SM Exhibit 4 — Benefits of IBM Virtualization Manager  Provides a single console to manage both physical and virtual systems;  Easy to install and use;  Proactive virtual machine (VM) migration based upon predictive alerting to help avoid downtime;  Drives VMware’s VMotion, using physical hardware status information;  Helps increase serviceability by migrating VMs to a standby server during a service window. Source: IBM
  • 8. February 1, 2012 The Clipper Group Navigator TM Page 8 Copyright © 2012 by The Clipper Group, Inc. Reproduction prohibited without advance written permission. All rights reserved. About The Clipper Group, Inc. The Clipper Group, Inc., now in its twentieth year, is an independent publishing and con- sulting firm specializing in acquisition decisions and strategic advice regarding complex, en- terprise-class information technologies. Our team of industry professionals averages more than 25 years of real-world experience. A team of staff consultants augments our capabilities, with significant experience across a broad spectrum of applications and environments.  The Clipper Group can be reached at 781-235-0085 and found on the web at www.clipper.com. About the Author David Reine is a Senior Contributing Analyst for The Clipper Group. Mr. Reine spe- cializes in enterprise servers, storage, and software, strategic business solutions, and trends in open systems architectures. In 2002, he joined The Clipper Group after three decades in serv- er and storage product marketing and program management for Groupe Bull, Zenith Data Systems, and Honeywell Information Systems. Mr. Reine earned a Bachelor of Arts degree from Tufts University, and an MBA from Northeastern University.  Reach David Reine via e-mail at dave.reine@clipper.com or at 781-235-0085 Ext. 123. (Please dial “123” when you hear the automated attendant.) Regarding Trademarks and Service Marks , , , , , , and “clipper.com” are trademarks of The Clipper Group, Inc., and the clipper ship drawings, “Navigating Information Technology Horizons”, and “teraproductivity” are ser- vice marks of The Clipper Group, Inc. The Clipper Group, Inc., reserves all rights regarding its trademarks and service marks. All other trademarks, etc., belong to their respective own- ers. Disclosures Officers and/or employees of The Clipper Group may own as individuals, directly or indirect- ly, shares in one or more companies discussed in this bulletin. Company policy prohibits any officer or employee from holding more than one percent of the outstanding shares of any company covered by The Clipper Group. The Clipper Group, Inc., has no such equity hold- ings. After publication of a bulletin on clipper.com, The Clipper Group offers all vendors and users the opportunity to license its publications for a fee, since linking to Clipper’s web pages, post- ing of Clipper documents on other’s websites, and printing of hard-copy reprints is not al- lowed without payment of related fee(s). Less than half of our publications are licensed in this way. In addition, analysts regularly receive briefings from many vendors. Occasionally, Clipper analysts’ travel and/or lodging expenses and/or conference fees have been subsidized by a vendor, in order to participate in briefings. The Clipper Group does not charge any pro- fessional fees to participate in these information-gathering events. In addition, some vendors sometime provide binders, USB drives containing presentations, and other conference-related paraphernalia to Clipper’s analysts. Regarding the Information in this Issue The Clipper Group believes the information included in this report to be accurate. Data has been received from a variety of sources, which we believe to be reliable, including manufac- turers, distributors, or users of the products discussed herein. The Clipper Group, Inc., cannot be held responsible for any consequential damages resulting from the application of infor- mation or opinions contained in this report. BLL03039-USEN-00