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Building a foundation for a
high-performance, low cost
private cloud


Author: Gary Barnett
Published: November 2011
All contents © The Bathwick Group Ltd 2011
Building a foundation for a high-performance, low cost private cloud - November 2011




    Contents
    A growing number of organizations are building private clouds ................................................................................3
    Key Messages .............................................................................................................................................................4
    Private vs public cloud ................................................................................................................................................4
        Public cloud ..............................................................................................................................................................4

        Private cloud.............................................................................................................................................................5

        Cloud and the enterprise ............................................................................................................................................8

    Building your own private cloud .................................................................................................................................9
        Introducing the Enterprise Linux Server– cloud in a box.................................................................................................9

        zEnterprise : a strong foundation for ELS .....................................................................................................................9

        Enterprise Linux Server : a Linux cloud in a box ...........................................................................................................10

        The right private cloud infrastructure will deliver the scalability and resilience you need, and enable you to save money ..12

    Conclusion ................................................................................................................................................................13
    About this Paper .......................................................................................................................................................13
    About Bathwick Group .............................................................................................................................................14




| Page 2 | All contents © The Bathwick Group Ltd 2011                                                                                                                www.bathwick.com
Building a foundation for a high-performance, low cost private cloud - November 2011




         A growing number of organizations are building private clouds
         Cloud computing is the next evolution of systems architecture that promises to deliver computing infrastructure
         at lower cost, greater flexibility and significantly higher levels of scalability than ever before. The benefits of
         cloud computing are primarily built on the notion that cloud environments allow you to achieve these results
         by virtualizing the different work-loads that you run, and deploying them within an environment that can
         automatically scale up, or down, as work-load demands change over time.
         Many organizations are looking at public cloud services offered by companies like Amazon and Google, but
         a growing number of organizations are achieving the benefits of public cloud computing by building private
         clouds.
         If you’re interested in any of the following, you ought to read this paper;
               Would you like to use a platform that enables you to reduce the running costs of your web server estate
                by 50%?
               Would you like to use a platform that can enable you to reduce your software license costs by as much
                as 90%?
               Would you like to reduce the time it takes to deploy new servers to minutes rather than hours or days?
               Do you want the flexibility of cloud computing, but can’t move all of your infrastructure and data onto
                public cloud platforms?
              Can you see a point where you run out of physical space in which to run all of the servers that your
                organization needs?


         This paper describes the way a number of
         organizations have used IBM’s high-end server
                                                                             “       Performance, reliability, disaster
                                                                                     recovery, server provisioning and
                                                                                     cost efficiency have all seen dramatic
         and software technology to build private cloud                              improvements—helping BCBSM
         environments that have helped them save                                     deliver better service and better value
         money, improve agility and deliver better quality                           to its members across the state.
         of service, while maintaining control of their                              Ted Mansk, Director of Infrastructure Engineering
         applications and data.                                                      and Databases at BCBSM




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| Page 3 | All contents © The Bathwick Group Ltd 2011                                                                          www.bathwick.com
Building a foundation for a high-performance, low cost private cloud - November 2011




         Key Messages
               Cloud computing represents the future of our computing infrastructure
                Cloud computing represents an approach to managing server infrastructure that is a logical evolution of
                a number of long-standing trends in automation, provisioning and virtualization.

               Private clouds represent a pragmatic alternative to public cloud for many organizations
                Very few organizations can place all of their server infrastructure into the public cloud, many will develop
                private cloud infrastructure in order to achieve many of the benefits of public cloud computing, while
                mitigating some of its drawbacks.

               IBM’s Enterprise Linux Server (ELS) platform offers a compelling alternative to x86/VMWare
                infrastructure for private cloud deployment
                The virtualization and automation capabilities of IBM’s ELS technology are based on 40 years of
                research and development by IBM, and are unmatched in the industry today in terms of reliability and
                performance, and in many cases offer a significant benefit in terms of cost as well.

               If you have over 75 separate Linux server machines it is worth looking at consolidating them onto an
                IBM Enterprise Linux Server
                A single ELS can support over 300 virtual Linux servers (and can potentially host considerably more
                depending on workload). At between 50 and 75 servers the ELS is worth examining from a price
                performance point of view, and for over 100 servers the economics become even more compelling.

         Private vs public cloud
         Cloud computing represents a very natural evolution of a trend that has been underway since the birth of
         distributed computing. At its heart cloud computing is based on the idea that computing resources should be
         managed as a pool, with management tools being used to ensure that the resources in that pool are used in
         the most effective way possible.
         While the headline grabbing stories tend to center on public cloud providers like Amazon, Microsoft and
         Google, a growing number of organizations are making their first move to cloud computing by creating
         internal, private, cloud environments, even if some “orthodox” cloud pundits continue to insist that private
         cloud isn’t really cloud.

         Public cloud
         In the public cloud model the entire physical infrastructure is procured, owned and operated by the cloud
         service provider. They are responsible for the capital expenditure associated with building the infrastructure,
         with the idea being that they make their margin by capitalising on the economies of scale that they can
         achieve and the efficiencies they can derive by pooling many organizations’ computing requirements.




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| Page 4 | All contents © The Bathwick Group Ltd 2011                                                                         www.bathwick.com
Building a foundation for a high-performance, low cost private cloud - November 2011




                                                                                     Public clouds are multi-tenanted environments in
                                                                                     that the physical resources are shared with many
                                                            Org C
                                           Org B                                     different organizations (or tenants). Different cloud
                                                   Org B
                                                                Org C
                                                                                     providers offer different levels of isolation between
                                          Org B                                      tenants, in some cases it is possible to ensure that
                            Org A                                   Org C            your virtual servers will always be physically isolated
                                                        Org C
                                                                                     from other tenants’ virtual servers (effectively
                           Org A
                                                                                     guaranteeing that your workloads will be the only
                                       Org A
                                                                                     ones running on a particular server), but this is
                                                                                     likely to come at significant additional cost.

              Figure 1.            Public cloud                       Data storage is another issue that needs to be
                                                                      considered. Where will you store your organization’s
         data, on your own infrastructure, or on the cloud, or both? Are there regulatory restrictions that govern how,
         and where, you store your organization’s data? Again, some cloud providers offer to address this challenge
         by giving clients assurances about where their data is stored, and how it is secured, but in some industries
         (notably healthcare and financial services) it is still not completely clear to what extent these solutions meet
         the relevant data storage standards and regulations.
         Public cloud infrastructure is extremely well suited to workloads that are subject to very large fluctuations
         in workload demand. One good example is the UK-based television company Channel 4. Channel 4 uses
         Amazon’s EC2 infrastructure to host websites for a number of its key shows. Channel 4’s experience is that
         traffic to a show’s website peaks while the particular show is on air, and then trails off between shows. The
         peak demand can be as much as 300 times typical levels. Channel 4 has managed to achieve cost savings
         of over 90% for these particular applications by making use of the ability to rapidly scale up and then down
         according to fluctuations in demand.
         But, in practice, relatively few organizations have a requirement to be able to scale by a factor of 300 for short
         periods of time, and in Channel 4’s case, the vast majority of the company’s infrastructure remains in-house.
         Organizations that do have specific applications that need very high levels of elasticity can also take a hybrid
         approach, creating an internal cloud for the bulk of their computing requirements and making use of public
         cloud infrastructure for those few applications that require massive levels of scalability.

         Private cloud
         The private delivery model for cloud involves an organization building its own internal cloud. The organization,
         or the organization’s partner in the context of an outsourced arrangement, buys the hardware, installs and
         operates it. The organization puts in place the virtualization, provisioning and management software and
         carries all of the costs associated with procurement, datacenter, power, cooling and management.




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| Page 5 | All contents © The Bathwick Group Ltd 2011                                                                                www.bathwick.com
Building a foundation for a high-performance, low cost private cloud - November 2011




         While this approach does place some limits on the extent to which
         you can scale up in a short period of time, organizations can still
                                                                                                       Spare       Spare       Spare
         obtain many of the benefits of public cloud computing within a
         private environment.
                                                                                                      Server      Server       Spare
         There are still significant potential cost savings to be achieved by
         implementing a private cloud, for example, and it is possible to                             Server      Server       Server

         achieve a very high level of virtualization as a result of developing
                                                                                                      Server      Server       Server
         a private cloud infrastructure, if you choose the right platform on
         which to base your private cloud.

                                                                                                Figure 2.      Private cloud




             Case Study - Blue Cross and Blue Shield of Minnesota (BCBSM)
             Blue Cross and Blue Shield of Minnesota (BCBSM) is the largest health plan provider in the state, with more than
             2 million clients. After conducting a detailed evaluation, the organization decided to consolidate 140 Intel-based
             servers onto a single IBM zEnterprise server with the ELS Linux processors, called Integrated Facility for Linux, or
             IFL’s. The key outcomes of the project were;
                30-50% projected cost savings over five years compared with a distributed Intel-based environment
                99% reduction in the time it takes to provision new servers
                97% reduction in the time it takes to perform a full disaster recovery

             In common with many organizations, BCBSM had come to the conclusion that its existing Microsoft Windows and
             Intel processor-based landscape was becoming increasingly inflexible and costly to operate and maintain.

             “Since Microsoft releases patches for Windows about once a month, we needed to invest a sizeable amount of time
             to keep the operating systems current. This caused downtime for the business as well. We decided to investigate
             some other options and see if we could find a cost-effective solution that would avoid these issues.” Ted Mansk,
             Director of Infrastructure Engineering and Databases at BCBSM.

             BCBSM was already running one zEnterprise server to host its DB2 database system, but had never considered
             consolidating its distributed work-loads onto the platform. After an extensive evaluation process, which involved
             talking to other organizations to learn from their experiences, BCBSM decided to activate just six new Integrated
             Facility for Linux (IFL) processors to its existing System z server.

             “Performance, reliability, disaster recovery, server provisioning and cost efficiency have all seen dramatic
             improvements—helping BCBSM deliver better service and better value to its members across the state.” Ted
             Mansk, Director of Infrastructure Engineering and Databases at BCBSM
             Having taken the decision, the project was given an extremely short timescale. BCBSM had two months in which to
             complete the consolidation of 140 physical servers onto a single machine. In partnership with IBM the consolidation
             was completed within the timescale, ensuring that key projects were able to proceed according to plan.
                                                                                                                                    Cont.




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| Page 6 | All contents © The Bathwick Group Ltd 2011                                                                                   www.bathwick.com
Building a foundation for a high-performance, low cost private cloud - November 2011




             For BCBSM the benefits are not limited to cost savings. The increased flexibility of the platform, and the greater
             overall reliability of the solution, while harder to quantify in terms of money, makes a significant difference to
             the business.
             “We’ve received some really positive feedback from the business. Users really appreciate the fact that when
             they need something, we can now get to work on it at once, instead of having to wait weeks for new hardware
             to arrive. Equally, because the System z platform is so much more reliable than our previous infrastructure, we
             no longer get any complaints about performance and availability issues.” Ted Mansk, Director of Infrastructure
             Engineering and Databases at BCBSM



         Organizations can still benefit from the standardisation of server images, and can still take advantage of some
         elasticity within the constraints of their total investment in capacity. It is also possible to make use of capacity
         on demand, in which additional capacity is shipped with the platform that customers can turn on, and off,
         when necessary.
         It’s also worth remembering, in the context of the differences between Public and Private cloud, that massive
         levels of elasticity may not be a priority for your organization when it comes to the availability of computing
         resources.
         Private clouds also have some distinct advantages over the public cloud. The most often cited benefit is
         security. While it is certainly technically possible to use public cloud infrastructure in a highly secure fashion,
         it is still the case that when you use public cloud infrastructure you are handing your applications and data
         over to a third-party, and that it will be deployed to an environment that is, by definition, accessible via the
         internet. Whatever the technical solution, this still represents an additional level of exposure to risk that
         some organizations are unwilling, or unable (sometimes for regulatory reasons), to accept.


             Organisational Boundary




                             Domain of concern for management, security and reliability

            Figure 3.        Public cloud extends your management, security and reliability concerns beyond the traditional borders of your organization




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| Page 7 | All contents © The Bathwick Group Ltd 2011                                                                                              www.bathwick.com
Building a foundation for a high-performance, low cost private cloud - November 2011




             Case Study - Yi Lian Zhong Information Technology (YLZ), China
             Yi Lian Zhong Information Technology (YLZ) is a leading provider of information services in China focusing on the
             delivery of social services to citizens.
             YLZ is expanding its existing services available in Fujian Province to seven more Chinese provinces, using IBM’s
             zEnterprise hardware as the foundation for a citizen livelihood service information network that will serve a
             population of 300 million. YLZ selected System z for its reliability, security and cost effectiveness. Specifically, the
             mainframe’s ability to scale easily will help YLZ manage the unpredictable nature of transaction peaks and valleys
             without incurring additional costs.
             The new cloud platform will connect a number of networks of urban and rural residents, government departments,
             social service providers, medical institutions, corporate and public organizations, and vocational schools. The
             project is aimed to help meet the government’s 12th five-year-plan focused on developing programs to improve
             the citizen’s overall well-being.
             Kiosks will be installed across selected communities at civic centers, hospitals, banks, and shopping malls.
             Participants will be able to swipe their social insurance identity cards, which are already connected to banks, to
             access the additional services offered by various government departments.



         Cloud and the enterprise
         There are undoubtedly cases where public cloud is well suited to enterprise computing, particularly where the demand
         for elasticity is very significant. IBM and others already offer cloud-based development environments for example, which
         allow development teams to quickly ramp up (or down) as their needs change.
         On the other hand Public cloud is less suited to complex applications where some of the processing or data can’t be run in
         the cloud. Imagine you have an ERP system running on your own infrastructure, and you want to deploy a web application
         that is available to your customers. It is likely that you won’t be able to simply deploy your ERP application in the cloud,
                                                                           so that will have to remain on your infrastructure.
          Public Cloud
                                                                           If you deploy the web components of the solution in a
                                                                           public cloud environment, you will have to manage the link
                                                                           between the cloud-based application and your ERP system.
                                                                           While it is possible to do this, and you can do this securely
                                                                           by creating a VPN that reaches beyond your infrastructure
                                                                           into the cloud environment, there is a real likelihood that
                                Network Latency
                                                                           you’ll encounter significant performance headaches as
                                                                           transactions have to cross from the cloud environment,
                                                                           over the network, and into your infrastructure.
          Private Cloud
                                                                           If you are able derive the same benefits of scalability,
                                                                           ease of management, and automation by deploying cloud
                                                                           technology on your own infrastructure, you can avoid
                                                                           the problems that network latency creates – or at least
                                                                           you’ll be in a much better position to manage them, as the
                                                                           whole application will be running on your network.

         Figure 4.         Network latency across the internet can harm application performance




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| Page 8 | All contents © The Bathwick Group Ltd 2011                                                                           www.bathwick.com
Building a foundation for a high-performance, low cost private cloud - November 2011




         Building your own private cloud
         Many pundits will say that the only way to build a private cloud is to deploy a virtualization technology, like
         VMware, and install a number of x86 blades that will provide the processing horsepower for your cloud.
         But there is an alternative to the conventional belief that scale-out is the way to deliver cloud computing, it
         is based on a technology platform that has benefitted from five decades of research and development and
         which continues to evolve as a platform that supports multiple operating systems, and provides the most
         reliable and secure computing platform in the world; it is based on IBM’s ELS technology.

         Introducing the Enterprise Linux Server– cloud in a box
         At its foundation, the Enterprise Linux Server (ELS) is an IBM zEnterprise server that ships with the hardware
         and software necessary to create, and manage, a private cloud of Linux servers supporting industry standard
         Linux distributions (SuSE and RedHat). The system takes advantage of the server’s built-in support for
         virtualization, combined with IBM’s Tivoli Service Automation Manager, which provides the management and
         provisioning framework for the machine.

         zEnterprise : a strong foundation for ELS
         The zEnterprise system enables clients to combine IBM’s multiple processor architectures into one integrated
         pool of virtual resources, all managed under a single management framework. The zEnterprise system is
         comprised of three key elements: 1) the core server that comes in two flavours (z196 with 80 cores and z114
         with 10 cores), 2) The zBX which provides integration with IBM blade and accelerator technology, and 3) the
         Unified Resource Manager (zManager) which is firmware that integrates and manages the system as a unified
         set of virtual resources. The release of the core z196 represents a technology milestone for IBM, and the
         industry as a whole.
         The platform boasts the fastest CPU in the world, running at 5.2GHz, and introduces some completely new
         capabilities, most notably the introduction of RAIM (Redundant Array of Independent Memory) which offers
         the same support for reliability for RAM as RAID does for disk storage.
         The most significant feature
         of this release, however, is the                             Single Management Domain
         integration the platform offers
         between mainframe and non-                                     zEnterprise                       zBX

         mainframe      hardware.      The                                                  Private
                                                                                         Management
         zEnterprise can be attached to                                                  Network (1Gb)                   BladeCenter
                                                             HMC                                                          Enclosures
         a BladeCenter Extension or zBX,                                                                                (for up to 112
                                                                                          Private Data                  pSeries or X86
         which makes it possible to couple                                               Network (10Gb)
                                                                                                                            blades)

         up to 112 Power and System x
         blades to the mainframe and
         manage all of the elements as
         a single integrated set of virtual                        Figure 5.     zEnterprise and zBX

         resources.



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| Page 9 | All contents © The Bathwick Group Ltd 2011                                                                           www.bathwick.com
Building a foundation for a high-performance, low cost private cloud - November 2011




         The zBX is connected to the zEnterprise machine via two private network connections: a 10Gb ethernet
         connection is as a private data network that connects all of the blades with the z196 or z114 processors, and
         a second management network (running at 1Gb/s) is used by the machine’s management software to control
         the different hardware devices within the system.
         The zBX can also host IBM’s Datapower and DB2 Analytics Accelerator (IDAA) appliances. This support for
         appliances is an important step and IBM plans to support further appliances in the future.
         Appliances are designed to deliver specific additional functionality in order to help improve application
         performance. For example, the IBM DB2 Analytics Accelerator enables the intelligent and automated routing
         of SQL queries that are compute intensive to an in-memory datamart that can deliver improved query
         response time by orders of magnitude (ranging from 10x – 1000x in improved response time depending on
         the query).
         The zBX, and its contained devices are built with levels of hardware redundancy comparable to the zEnterprise
         itself, so key components like power supplies, power distribution units, network switches and fans are all
         designed to support mission critical applications that require a common set of business policies and SLA’s
         across heterogeneous architectures.
         The zBX provides two key benefits:
         First, it provides a very high performance link between the zEnterprise applications, services, and the blade
         applications that use them, by effectively giving the blades a private 10Gb/s network connection directly
         into the server, latency and data transfer rates are dramatically reduced. The use of this private network
         along with its corresponding management network allows for a dramatic reduction in the use of the external
         firewalls, and hence drives further simplification of the environment.
         Second, it provides a single point of monitoring and management. It is not unusual for systems administrators
         to have to run several monitoring tools at once in order to oversee the end-to-end functioning of a multi-
         tiered web application. The provision of a single integrated management framework will make it much easier
         to monitor, and administer, large or complex applications and is likely to reduce the number of configuration/
         management errors that occur. This alone is significant, as we estimate that over 65% of all application outages
         are the result of administration/configuration errors rather than hardware failures.
         This integration of multiple architectures and appliances is achieved and managed by the zEnterprise Unified
         Resource Manager (zManager), which oversees the provisioning and management of this federated set of
         computing resources under a common set of business and governance policies.

         Enterprise Linux Server : a Linux cloud in a box
         The Enterprise Linux Server (ELS) is made up of an IBM zEnterprise server that ships with the hardware and
         software necessary to create and manage a private cloud of Linux servers. The system takes advantage of the
         server’s built-in support for virtualization, combined with IBM’s Tivoli Service Automation Manager, which
         provides the management and provisioning framework for the machine.




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| Page 10 | All contents © The Bathwick Group Ltd 2011                                                                         www.bathwick.com
Building a foundation for a high-performance, low cost private cloud - November 2011




         The key features of the ELS are that it is built on mature technology, and makes extensive use of IBM’s software
         portfolio (Tivoli, Rational, Systems Director) to provide all of the core infrastructure that you need in order to
         deploy an internal cloud – all within a single hardware footprint.
         The system allows users to define their own standard images, based on either RedHat or SuSe linux, that
         can dramatically reduce the time it takes to deploy new servers. This approach can have a significant impact
         on hardware and software costs (IBM clients have seen savings of up to 90% in software costs as a result
         of consolidating onto the ELS) as well as reducing the cost and time associated with systems management.
         Another by-product of using standardised images is the reduction in faults arising from configuration errors
         (which in some environments can account for the vast majority of application failures).
         The key advantages of using ELS as a cloud platform for consolidating Linux workloads are;

         Much faster provisioning than either physical or virtualized environments
         When compared to physical environments the comparison is one of minutes compared to hours, days, or
         even weeks.

         Much faster inter-server communication
         Network communication between servers running on the platform takes place over an internal virtual
         network, operating at bus speed, rather than the speed of the network. This has a major impact on application
         performance, especially where you have a number of application servers accessing a common database.

         Consolidated management
         A single management interface allows you to manage both native and virtualized workloads, with the zBX
         add-on to the zEnterprise server, this management interface also relates to the different blades (be they
         Linux, Unix, Windows or Appliances) running within the zBX.

         Mainframe –class reliability/availability features
         In a distributed environment reliability and availability are achieved by setting up redundant servers, network
         and storage infrastructure. On both zEnterprise and the ELS these reliability features are built into the machine
         itself. The platform doubles up on key infrastructure components (such as network hardware) and makes use
         of built-in reliability features like RAIM to provide an extremely high level of fault tolerance.

         Much higher densities of virtual machines per processor core
         This has a very significant impact on software costs, particularly where software is licensed per processor core)
         and is the driving factor behind the savings in license fees (of up to 90% in the context of Oracle consolidation)
         that a number of organizations have achieved.
         Best x86 practice currently limits the number of virtual machines per core to around 3 and recommends that
         server utilization should never exceed 50%, so if you were consolidating 100 Linux servers you’d still be looking
         at purchasing 10 relatively high-end blades or server machines. These factors limit the effectiveness of x86-
         based virtualization in comparison with zEnterprise or ELS servers where the target utilization is typically well
         over 70% and the number of virtual machines regularly exceeds 30 per processor core.




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| Page 11 | All contents © The Bathwick Group Ltd 2011                                                                         www.bathwick.com
Building a foundation for a high-performance, low cost private cloud - November 2011




         The right private cloud infrastructure will deliver the scalability and resilience you need, and
         enable you to save money
         A number of organizations have chosen IBM’s enterprise server technology to form the basis of their own private cloud.
         One example is Transzap. Transzap is a SaaS provider that offers a software suite called Oildex that provides Internet-
         based ePayable, digital data, and expenditure analysis solutions in the energy industry. Today, it serves more than 6,000
         companies/clients and 170,000 registered users. Clients include all of the major oil companies, hundreds of independent
         oil and gas producers, the world’s largest banks, and tens of thousands of royalty and working interest owners.
         As a service provider, Transzap has to be able to offer the highest levels of availability to its customers, and be confident
         that it can scale its operations smoothly as the company grows. The company had begun to encounter reliability issues



         “
                                                                          with its existing x86 distributed infrastructure. After
                                                                          two significant disruptions in service, Transzap took the
                   At Tranzap we don’t have a very                        decision to look for an infrastructure solution that would
                   large staff, it’s clear that this platform             enable them to support current, and future, demand at
                   will help us to avoid hiring people
                                                                          levels of availability that its customers expect.
                    that we would have otherwise had
                    to hire as our business grows.                                   One of the options that the company looked at was
                                                                                     IBM’s zEnterprise platform, Transzap worked with IBM
                    We’re going to be able to deliver
                    on the guarantees we make to our                                 to conduct a formal total cost of ownership study and
                    customers, in fact were going to be                              concluded that a migration to System z would deliver
                    able to improve on them and get a                                high levels of reliability and availability while also saving
                    competitive edge on our competition.                             the organization money, notably on hardware costs and
                                                                                     Oracle license fees.
                    Peter Flanagan, President, Tranzap



             Case Study – Atos
             Atos is a major international IT services provider, employing 50,000 professionals in 40 countries. The company
             offers integrated design, build and operate solutions to large multi-national clients in targeted industry sectors,
             and has annual revenues of around £5.8 billion. An important part of Atos’ UK business is managed services –
             from basic server hosting through to full lifecycle management for both hardware and applications.
             “We have been using IFL processors for several years now and, in our opinion, the platform has proved itself as
             an ideal enterprise Linux platform.” Colin Clews, Technologies Manager, Atos
             Atos recently developed a new Linux-based application that would help rail transport companies deliver travel
             information to staff and passengers via their mobile phones, and wanted to deliver it as a shared service for
             several major rail companies. The company also wanted to enhance its service to customers in the insurance
             industry by upgrading from MQSeries Integrator (MQSI) middleware to a new IBM WebSphere Message Broker
             solution, which would provide support for Web Services integration for a number of core insurance applications.
             “The IFL engines in the new ELS not only run Linux environments approximately twice as fast as the previous
             generation – they also offer around 40% more capacity, enabling us to expand our Linux footprint without
             increasing our costs. With the ELS, we can run hundreds of environments within a single physical footprint, and
             easily deliver the 24x7 availability that our customers demand.”
             “With a traditional distributed approach, even using the latest virtualization-enabled x86 processors, you end up
             with a lot of unreliable boxes to manage.” Colin Clews, Technologies Manager, Atos
                                                                                                                                       Cont.




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| Page 12 | All contents © The Bathwick Group Ltd 2011                                                                                    www.bathwick.com
Building a foundation for a high-performance, low cost private cloud - November 2011




             Running the mobile application under Linux on the ELS proved so successful that Atos also decided to deploy
             the WebSphere Message Broker solution in a similar environment. The company has invested in a second IFL to
             handle this new workload.
             To provide disaster recovery for their environment, the production ELS machine is mirrored to a smaller server
             at a secondary data center. The backup server features IBM Capacity Backup Upgrade (CBU), which enables its
             capacity to be dramatically increased if and when it is required to take over the production workload from the
             production server. With CBU, this spare capacity attracts no maintenance or software licensing costs until it is
             actually activated.
             Linux on ELS is also helping Atos develop an on-demand computing model for its customers, enabling them to
             pay for computing power on a transactional basis.
              “We can provision new Linux servers very rapidly, and measure capacity usage very precisely. If customers
             need more power, we can just turn it on almost instantly, and bill them accordingly.” Colin Clews, Technologies
             Manager, Atos




         Conclusion
         The world of computing infrastructure is changing and, in the course of that evolution, many of the truths that we have
         taken for granted for some time are set to be challenged. The perception that the future belongs to x86 blades with
         VMWare and horizontal scaling is one of those widely held beliefs that will face a significant challenge, from above with
         technologies like IBM zEnterprise and the Enterprise Linux server and from below with micro technologies like ARM-
         based processors.
         When it comes to a scale-up alternative, a choice has emerged and a number of organizations have elected to take
         that choice. While the creation of a private cloud based on IBM’s high-end server technology may not be right for you,
         you should at least be watching this space, and also plan to stay informed, as the economics of computing go through
         another shift that will place the impact of the emergence of client-server computing in the 1990’s into the shade.

         About this Paper
         This paper was sponsored by IBM, however the views contained within it are those of Bathwick Group. We value our
         independence, and it is our policy never to write papers for clients unless we are permitted to retain full editorial
         control.
         All of the case studies referenced in this paper have been verified both by IBM and Bathwick Group, and where necessary
         we have interviewed the clients concerned.
         If you have any questions regarding the content of this paper, please feel free to contact its author, Gary Barnett by
         emailing him at gary@bathwick.com.




                                                                            | 13 |
| Page 13 | All contents © The Bathwick Group Ltd 2011                                                                         www.bathwick.com
Building a foundation for a high-performance, low cost private cloud - November 2011




About Bathwick Group
Bathwick Group has three divisions: research and consulting, powerful survey and marketing software, and a strategic think
tank.

BATHWICK: RESEARCH AND CONSULTING
Research and consulting in four core practice areas:
       IT industry Customer analysis and unique marketing programmes for vendors targeting mid-market and enterprise
        markets; strategic planning and go-to-market execution support
       Enterprise IT Strategic support for enterprise IT leaders; productivity and infrastructure agility benchmarking and best
        practice
       Sustainability Benchmarking and planning support for organisations wishing to embed sustainable practices and mitigate
        strategic risks. Future threat and opportunity identification
       Innovation Rapid collaborative engagement services combining your key people with external experts to expedite
        solutions to major corporate challenges. IP protection frameworks

STORRM SOFTWARE
An enterprise-wide data collation, analysis and distribution platform
A flexible multi-language software platform for surveys, benchmarks and assessments, market intelligence, lead generation
and nurturing, sales enablement, marketing collateral distribution and control, offline surveys, games and multiple intelligence
applications.

THINKAGAIN
A global collaborative research network
ThinkAgain brings together business and political leaders with
investors, academics, and leading thinkers to generate new
insights into business performance, geo-political and
sustainability issues.       Membership is by invitation
only.




Document number: BG-INF-W-00083UK-EN-01

All contents © The Bathwick Group Ltd 2011

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Building a foundation for a high-performance, low cost private cloud

  • 1. Building a foundation for a high-performance, low cost private cloud Author: Gary Barnett Published: November 2011 All contents © The Bathwick Group Ltd 2011
  • 2. Building a foundation for a high-performance, low cost private cloud - November 2011 Contents A growing number of organizations are building private clouds ................................................................................3 Key Messages .............................................................................................................................................................4 Private vs public cloud ................................................................................................................................................4 Public cloud ..............................................................................................................................................................4 Private cloud.............................................................................................................................................................5 Cloud and the enterprise ............................................................................................................................................8 Building your own private cloud .................................................................................................................................9 Introducing the Enterprise Linux Server– cloud in a box.................................................................................................9 zEnterprise : a strong foundation for ELS .....................................................................................................................9 Enterprise Linux Server : a Linux cloud in a box ...........................................................................................................10 The right private cloud infrastructure will deliver the scalability and resilience you need, and enable you to save money ..12 Conclusion ................................................................................................................................................................13 About this Paper .......................................................................................................................................................13 About Bathwick Group .............................................................................................................................................14 | Page 2 | All contents © The Bathwick Group Ltd 2011 www.bathwick.com
  • 3. Building a foundation for a high-performance, low cost private cloud - November 2011 A growing number of organizations are building private clouds Cloud computing is the next evolution of systems architecture that promises to deliver computing infrastructure at lower cost, greater flexibility and significantly higher levels of scalability than ever before. The benefits of cloud computing are primarily built on the notion that cloud environments allow you to achieve these results by virtualizing the different work-loads that you run, and deploying them within an environment that can automatically scale up, or down, as work-load demands change over time. Many organizations are looking at public cloud services offered by companies like Amazon and Google, but a growing number of organizations are achieving the benefits of public cloud computing by building private clouds. If you’re interested in any of the following, you ought to read this paper;  Would you like to use a platform that enables you to reduce the running costs of your web server estate by 50%?  Would you like to use a platform that can enable you to reduce your software license costs by as much as 90%?  Would you like to reduce the time it takes to deploy new servers to minutes rather than hours or days?  Do you want the flexibility of cloud computing, but can’t move all of your infrastructure and data onto public cloud platforms?  Can you see a point where you run out of physical space in which to run all of the servers that your organization needs? This paper describes the way a number of organizations have used IBM’s high-end server “ Performance, reliability, disaster recovery, server provisioning and cost efficiency have all seen dramatic and software technology to build private cloud improvements—helping BCBSM environments that have helped them save deliver better service and better value money, improve agility and deliver better quality to its members across the state. of service, while maintaining control of their Ted Mansk, Director of Infrastructure Engineering applications and data. and Databases at BCBSM |3| | Page 3 | All contents © The Bathwick Group Ltd 2011 www.bathwick.com
  • 4. Building a foundation for a high-performance, low cost private cloud - November 2011 Key Messages  Cloud computing represents the future of our computing infrastructure Cloud computing represents an approach to managing server infrastructure that is a logical evolution of a number of long-standing trends in automation, provisioning and virtualization.  Private clouds represent a pragmatic alternative to public cloud for many organizations Very few organizations can place all of their server infrastructure into the public cloud, many will develop private cloud infrastructure in order to achieve many of the benefits of public cloud computing, while mitigating some of its drawbacks.  IBM’s Enterprise Linux Server (ELS) platform offers a compelling alternative to x86/VMWare infrastructure for private cloud deployment The virtualization and automation capabilities of IBM’s ELS technology are based on 40 years of research and development by IBM, and are unmatched in the industry today in terms of reliability and performance, and in many cases offer a significant benefit in terms of cost as well.  If you have over 75 separate Linux server machines it is worth looking at consolidating them onto an IBM Enterprise Linux Server A single ELS can support over 300 virtual Linux servers (and can potentially host considerably more depending on workload). At between 50 and 75 servers the ELS is worth examining from a price performance point of view, and for over 100 servers the economics become even more compelling. Private vs public cloud Cloud computing represents a very natural evolution of a trend that has been underway since the birth of distributed computing. At its heart cloud computing is based on the idea that computing resources should be managed as a pool, with management tools being used to ensure that the resources in that pool are used in the most effective way possible. While the headline grabbing stories tend to center on public cloud providers like Amazon, Microsoft and Google, a growing number of organizations are making their first move to cloud computing by creating internal, private, cloud environments, even if some “orthodox” cloud pundits continue to insist that private cloud isn’t really cloud. Public cloud In the public cloud model the entire physical infrastructure is procured, owned and operated by the cloud service provider. They are responsible for the capital expenditure associated with building the infrastructure, with the idea being that they make their margin by capitalising on the economies of scale that they can achieve and the efficiencies they can derive by pooling many organizations’ computing requirements. |4| | Page 4 | All contents © The Bathwick Group Ltd 2011 www.bathwick.com
  • 5. Building a foundation for a high-performance, low cost private cloud - November 2011 Public clouds are multi-tenanted environments in that the physical resources are shared with many Org C Org B different organizations (or tenants). Different cloud Org B Org C providers offer different levels of isolation between Org B tenants, in some cases it is possible to ensure that Org A Org C your virtual servers will always be physically isolated Org C from other tenants’ virtual servers (effectively Org A guaranteeing that your workloads will be the only Org A ones running on a particular server), but this is likely to come at significant additional cost. Figure 1. Public cloud Data storage is another issue that needs to be considered. Where will you store your organization’s data, on your own infrastructure, or on the cloud, or both? Are there regulatory restrictions that govern how, and where, you store your organization’s data? Again, some cloud providers offer to address this challenge by giving clients assurances about where their data is stored, and how it is secured, but in some industries (notably healthcare and financial services) it is still not completely clear to what extent these solutions meet the relevant data storage standards and regulations. Public cloud infrastructure is extremely well suited to workloads that are subject to very large fluctuations in workload demand. One good example is the UK-based television company Channel 4. Channel 4 uses Amazon’s EC2 infrastructure to host websites for a number of its key shows. Channel 4’s experience is that traffic to a show’s website peaks while the particular show is on air, and then trails off between shows. The peak demand can be as much as 300 times typical levels. Channel 4 has managed to achieve cost savings of over 90% for these particular applications by making use of the ability to rapidly scale up and then down according to fluctuations in demand. But, in practice, relatively few organizations have a requirement to be able to scale by a factor of 300 for short periods of time, and in Channel 4’s case, the vast majority of the company’s infrastructure remains in-house. Organizations that do have specific applications that need very high levels of elasticity can also take a hybrid approach, creating an internal cloud for the bulk of their computing requirements and making use of public cloud infrastructure for those few applications that require massive levels of scalability. Private cloud The private delivery model for cloud involves an organization building its own internal cloud. The organization, or the organization’s partner in the context of an outsourced arrangement, buys the hardware, installs and operates it. The organization puts in place the virtualization, provisioning and management software and carries all of the costs associated with procurement, datacenter, power, cooling and management. |5| | Page 5 | All contents © The Bathwick Group Ltd 2011 www.bathwick.com
  • 6. Building a foundation for a high-performance, low cost private cloud - November 2011 While this approach does place some limits on the extent to which you can scale up in a short period of time, organizations can still Spare Spare Spare obtain many of the benefits of public cloud computing within a private environment. Server Server Spare There are still significant potential cost savings to be achieved by implementing a private cloud, for example, and it is possible to Server Server Server achieve a very high level of virtualization as a result of developing Server Server Server a private cloud infrastructure, if you choose the right platform on which to base your private cloud. Figure 2. Private cloud Case Study - Blue Cross and Blue Shield of Minnesota (BCBSM) Blue Cross and Blue Shield of Minnesota (BCBSM) is the largest health plan provider in the state, with more than 2 million clients. After conducting a detailed evaluation, the organization decided to consolidate 140 Intel-based servers onto a single IBM zEnterprise server with the ELS Linux processors, called Integrated Facility for Linux, or IFL’s. The key outcomes of the project were;  30-50% projected cost savings over five years compared with a distributed Intel-based environment  99% reduction in the time it takes to provision new servers  97% reduction in the time it takes to perform a full disaster recovery In common with many organizations, BCBSM had come to the conclusion that its existing Microsoft Windows and Intel processor-based landscape was becoming increasingly inflexible and costly to operate and maintain. “Since Microsoft releases patches for Windows about once a month, we needed to invest a sizeable amount of time to keep the operating systems current. This caused downtime for the business as well. We decided to investigate some other options and see if we could find a cost-effective solution that would avoid these issues.” Ted Mansk, Director of Infrastructure Engineering and Databases at BCBSM. BCBSM was already running one zEnterprise server to host its DB2 database system, but had never considered consolidating its distributed work-loads onto the platform. After an extensive evaluation process, which involved talking to other organizations to learn from their experiences, BCBSM decided to activate just six new Integrated Facility for Linux (IFL) processors to its existing System z server. “Performance, reliability, disaster recovery, server provisioning and cost efficiency have all seen dramatic improvements—helping BCBSM deliver better service and better value to its members across the state.” Ted Mansk, Director of Infrastructure Engineering and Databases at BCBSM Having taken the decision, the project was given an extremely short timescale. BCBSM had two months in which to complete the consolidation of 140 physical servers onto a single machine. In partnership with IBM the consolidation was completed within the timescale, ensuring that key projects were able to proceed according to plan. Cont. |6| | Page 6 | All contents © The Bathwick Group Ltd 2011 www.bathwick.com
  • 7. Building a foundation for a high-performance, low cost private cloud - November 2011 For BCBSM the benefits are not limited to cost savings. The increased flexibility of the platform, and the greater overall reliability of the solution, while harder to quantify in terms of money, makes a significant difference to the business. “We’ve received some really positive feedback from the business. Users really appreciate the fact that when they need something, we can now get to work on it at once, instead of having to wait weeks for new hardware to arrive. Equally, because the System z platform is so much more reliable than our previous infrastructure, we no longer get any complaints about performance and availability issues.” Ted Mansk, Director of Infrastructure Engineering and Databases at BCBSM Organizations can still benefit from the standardisation of server images, and can still take advantage of some elasticity within the constraints of their total investment in capacity. It is also possible to make use of capacity on demand, in which additional capacity is shipped with the platform that customers can turn on, and off, when necessary. It’s also worth remembering, in the context of the differences between Public and Private cloud, that massive levels of elasticity may not be a priority for your organization when it comes to the availability of computing resources. Private clouds also have some distinct advantages over the public cloud. The most often cited benefit is security. While it is certainly technically possible to use public cloud infrastructure in a highly secure fashion, it is still the case that when you use public cloud infrastructure you are handing your applications and data over to a third-party, and that it will be deployed to an environment that is, by definition, accessible via the internet. Whatever the technical solution, this still represents an additional level of exposure to risk that some organizations are unwilling, or unable (sometimes for regulatory reasons), to accept. Organisational Boundary Domain of concern for management, security and reliability Figure 3. Public cloud extends your management, security and reliability concerns beyond the traditional borders of your organization |7| | Page 7 | All contents © The Bathwick Group Ltd 2011 www.bathwick.com
  • 8. Building a foundation for a high-performance, low cost private cloud - November 2011 Case Study - Yi Lian Zhong Information Technology (YLZ), China Yi Lian Zhong Information Technology (YLZ) is a leading provider of information services in China focusing on the delivery of social services to citizens. YLZ is expanding its existing services available in Fujian Province to seven more Chinese provinces, using IBM’s zEnterprise hardware as the foundation for a citizen livelihood service information network that will serve a population of 300 million. YLZ selected System z for its reliability, security and cost effectiveness. Specifically, the mainframe’s ability to scale easily will help YLZ manage the unpredictable nature of transaction peaks and valleys without incurring additional costs. The new cloud platform will connect a number of networks of urban and rural residents, government departments, social service providers, medical institutions, corporate and public organizations, and vocational schools. The project is aimed to help meet the government’s 12th five-year-plan focused on developing programs to improve the citizen’s overall well-being. Kiosks will be installed across selected communities at civic centers, hospitals, banks, and shopping malls. Participants will be able to swipe their social insurance identity cards, which are already connected to banks, to access the additional services offered by various government departments. Cloud and the enterprise There are undoubtedly cases where public cloud is well suited to enterprise computing, particularly where the demand for elasticity is very significant. IBM and others already offer cloud-based development environments for example, which allow development teams to quickly ramp up (or down) as their needs change. On the other hand Public cloud is less suited to complex applications where some of the processing or data can’t be run in the cloud. Imagine you have an ERP system running on your own infrastructure, and you want to deploy a web application that is available to your customers. It is likely that you won’t be able to simply deploy your ERP application in the cloud, so that will have to remain on your infrastructure. Public Cloud If you deploy the web components of the solution in a public cloud environment, you will have to manage the link between the cloud-based application and your ERP system. While it is possible to do this, and you can do this securely by creating a VPN that reaches beyond your infrastructure into the cloud environment, there is a real likelihood that Network Latency you’ll encounter significant performance headaches as transactions have to cross from the cloud environment, over the network, and into your infrastructure. Private Cloud If you are able derive the same benefits of scalability, ease of management, and automation by deploying cloud technology on your own infrastructure, you can avoid the problems that network latency creates – or at least you’ll be in a much better position to manage them, as the whole application will be running on your network. Figure 4. Network latency across the internet can harm application performance |8| | Page 8 | All contents © The Bathwick Group Ltd 2011 www.bathwick.com
  • 9. Building a foundation for a high-performance, low cost private cloud - November 2011 Building your own private cloud Many pundits will say that the only way to build a private cloud is to deploy a virtualization technology, like VMware, and install a number of x86 blades that will provide the processing horsepower for your cloud. But there is an alternative to the conventional belief that scale-out is the way to deliver cloud computing, it is based on a technology platform that has benefitted from five decades of research and development and which continues to evolve as a platform that supports multiple operating systems, and provides the most reliable and secure computing platform in the world; it is based on IBM’s ELS technology. Introducing the Enterprise Linux Server– cloud in a box At its foundation, the Enterprise Linux Server (ELS) is an IBM zEnterprise server that ships with the hardware and software necessary to create, and manage, a private cloud of Linux servers supporting industry standard Linux distributions (SuSE and RedHat). The system takes advantage of the server’s built-in support for virtualization, combined with IBM’s Tivoli Service Automation Manager, which provides the management and provisioning framework for the machine. zEnterprise : a strong foundation for ELS The zEnterprise system enables clients to combine IBM’s multiple processor architectures into one integrated pool of virtual resources, all managed under a single management framework. The zEnterprise system is comprised of three key elements: 1) the core server that comes in two flavours (z196 with 80 cores and z114 with 10 cores), 2) The zBX which provides integration with IBM blade and accelerator technology, and 3) the Unified Resource Manager (zManager) which is firmware that integrates and manages the system as a unified set of virtual resources. The release of the core z196 represents a technology milestone for IBM, and the industry as a whole. The platform boasts the fastest CPU in the world, running at 5.2GHz, and introduces some completely new capabilities, most notably the introduction of RAIM (Redundant Array of Independent Memory) which offers the same support for reliability for RAM as RAID does for disk storage. The most significant feature of this release, however, is the Single Management Domain integration the platform offers between mainframe and non- zEnterprise zBX mainframe hardware. The Private Management zEnterprise can be attached to Network (1Gb) BladeCenter HMC Enclosures a BladeCenter Extension or zBX, (for up to 112 Private Data pSeries or X86 which makes it possible to couple Network (10Gb) blades) up to 112 Power and System x blades to the mainframe and manage all of the elements as a single integrated set of virtual Figure 5. zEnterprise and zBX resources. |9| | Page 9 | All contents © The Bathwick Group Ltd 2011 www.bathwick.com
  • 10. Building a foundation for a high-performance, low cost private cloud - November 2011 The zBX is connected to the zEnterprise machine via two private network connections: a 10Gb ethernet connection is as a private data network that connects all of the blades with the z196 or z114 processors, and a second management network (running at 1Gb/s) is used by the machine’s management software to control the different hardware devices within the system. The zBX can also host IBM’s Datapower and DB2 Analytics Accelerator (IDAA) appliances. This support for appliances is an important step and IBM plans to support further appliances in the future. Appliances are designed to deliver specific additional functionality in order to help improve application performance. For example, the IBM DB2 Analytics Accelerator enables the intelligent and automated routing of SQL queries that are compute intensive to an in-memory datamart that can deliver improved query response time by orders of magnitude (ranging from 10x – 1000x in improved response time depending on the query). The zBX, and its contained devices are built with levels of hardware redundancy comparable to the zEnterprise itself, so key components like power supplies, power distribution units, network switches and fans are all designed to support mission critical applications that require a common set of business policies and SLA’s across heterogeneous architectures. The zBX provides two key benefits: First, it provides a very high performance link between the zEnterprise applications, services, and the blade applications that use them, by effectively giving the blades a private 10Gb/s network connection directly into the server, latency and data transfer rates are dramatically reduced. The use of this private network along with its corresponding management network allows for a dramatic reduction in the use of the external firewalls, and hence drives further simplification of the environment. Second, it provides a single point of monitoring and management. It is not unusual for systems administrators to have to run several monitoring tools at once in order to oversee the end-to-end functioning of a multi- tiered web application. The provision of a single integrated management framework will make it much easier to monitor, and administer, large or complex applications and is likely to reduce the number of configuration/ management errors that occur. This alone is significant, as we estimate that over 65% of all application outages are the result of administration/configuration errors rather than hardware failures. This integration of multiple architectures and appliances is achieved and managed by the zEnterprise Unified Resource Manager (zManager), which oversees the provisioning and management of this federated set of computing resources under a common set of business and governance policies. Enterprise Linux Server : a Linux cloud in a box The Enterprise Linux Server (ELS) is made up of an IBM zEnterprise server that ships with the hardware and software necessary to create and manage a private cloud of Linux servers. The system takes advantage of the server’s built-in support for virtualization, combined with IBM’s Tivoli Service Automation Manager, which provides the management and provisioning framework for the machine. | 10 | | Page 10 | All contents © The Bathwick Group Ltd 2011 www.bathwick.com
  • 11. Building a foundation for a high-performance, low cost private cloud - November 2011 The key features of the ELS are that it is built on mature technology, and makes extensive use of IBM’s software portfolio (Tivoli, Rational, Systems Director) to provide all of the core infrastructure that you need in order to deploy an internal cloud – all within a single hardware footprint. The system allows users to define their own standard images, based on either RedHat or SuSe linux, that can dramatically reduce the time it takes to deploy new servers. This approach can have a significant impact on hardware and software costs (IBM clients have seen savings of up to 90% in software costs as a result of consolidating onto the ELS) as well as reducing the cost and time associated with systems management. Another by-product of using standardised images is the reduction in faults arising from configuration errors (which in some environments can account for the vast majority of application failures). The key advantages of using ELS as a cloud platform for consolidating Linux workloads are; Much faster provisioning than either physical or virtualized environments When compared to physical environments the comparison is one of minutes compared to hours, days, or even weeks. Much faster inter-server communication Network communication between servers running on the platform takes place over an internal virtual network, operating at bus speed, rather than the speed of the network. This has a major impact on application performance, especially where you have a number of application servers accessing a common database. Consolidated management A single management interface allows you to manage both native and virtualized workloads, with the zBX add-on to the zEnterprise server, this management interface also relates to the different blades (be they Linux, Unix, Windows or Appliances) running within the zBX. Mainframe –class reliability/availability features In a distributed environment reliability and availability are achieved by setting up redundant servers, network and storage infrastructure. On both zEnterprise and the ELS these reliability features are built into the machine itself. The platform doubles up on key infrastructure components (such as network hardware) and makes use of built-in reliability features like RAIM to provide an extremely high level of fault tolerance. Much higher densities of virtual machines per processor core This has a very significant impact on software costs, particularly where software is licensed per processor core) and is the driving factor behind the savings in license fees (of up to 90% in the context of Oracle consolidation) that a number of organizations have achieved. Best x86 practice currently limits the number of virtual machines per core to around 3 and recommends that server utilization should never exceed 50%, so if you were consolidating 100 Linux servers you’d still be looking at purchasing 10 relatively high-end blades or server machines. These factors limit the effectiveness of x86- based virtualization in comparison with zEnterprise or ELS servers where the target utilization is typically well over 70% and the number of virtual machines regularly exceeds 30 per processor core. | 11 | | Page 11 | All contents © The Bathwick Group Ltd 2011 www.bathwick.com
  • 12. Building a foundation for a high-performance, low cost private cloud - November 2011 The right private cloud infrastructure will deliver the scalability and resilience you need, and enable you to save money A number of organizations have chosen IBM’s enterprise server technology to form the basis of their own private cloud. One example is Transzap. Transzap is a SaaS provider that offers a software suite called Oildex that provides Internet- based ePayable, digital data, and expenditure analysis solutions in the energy industry. Today, it serves more than 6,000 companies/clients and 170,000 registered users. Clients include all of the major oil companies, hundreds of independent oil and gas producers, the world’s largest banks, and tens of thousands of royalty and working interest owners. As a service provider, Transzap has to be able to offer the highest levels of availability to its customers, and be confident that it can scale its operations smoothly as the company grows. The company had begun to encounter reliability issues “ with its existing x86 distributed infrastructure. After two significant disruptions in service, Transzap took the At Tranzap we don’t have a very decision to look for an infrastructure solution that would large staff, it’s clear that this platform enable them to support current, and future, demand at will help us to avoid hiring people levels of availability that its customers expect. that we would have otherwise had to hire as our business grows. One of the options that the company looked at was IBM’s zEnterprise platform, Transzap worked with IBM We’re going to be able to deliver on the guarantees we make to our to conduct a formal total cost of ownership study and customers, in fact were going to be concluded that a migration to System z would deliver able to improve on them and get a high levels of reliability and availability while also saving competitive edge on our competition. the organization money, notably on hardware costs and Oracle license fees. Peter Flanagan, President, Tranzap Case Study – Atos Atos is a major international IT services provider, employing 50,000 professionals in 40 countries. The company offers integrated design, build and operate solutions to large multi-national clients in targeted industry sectors, and has annual revenues of around £5.8 billion. An important part of Atos’ UK business is managed services – from basic server hosting through to full lifecycle management for both hardware and applications. “We have been using IFL processors for several years now and, in our opinion, the platform has proved itself as an ideal enterprise Linux platform.” Colin Clews, Technologies Manager, Atos Atos recently developed a new Linux-based application that would help rail transport companies deliver travel information to staff and passengers via their mobile phones, and wanted to deliver it as a shared service for several major rail companies. The company also wanted to enhance its service to customers in the insurance industry by upgrading from MQSeries Integrator (MQSI) middleware to a new IBM WebSphere Message Broker solution, which would provide support for Web Services integration for a number of core insurance applications. “The IFL engines in the new ELS not only run Linux environments approximately twice as fast as the previous generation – they also offer around 40% more capacity, enabling us to expand our Linux footprint without increasing our costs. With the ELS, we can run hundreds of environments within a single physical footprint, and easily deliver the 24x7 availability that our customers demand.” “With a traditional distributed approach, even using the latest virtualization-enabled x86 processors, you end up with a lot of unreliable boxes to manage.” Colin Clews, Technologies Manager, Atos Cont. | 12 | | Page 12 | All contents © The Bathwick Group Ltd 2011 www.bathwick.com
  • 13. Building a foundation for a high-performance, low cost private cloud - November 2011 Running the mobile application under Linux on the ELS proved so successful that Atos also decided to deploy the WebSphere Message Broker solution in a similar environment. The company has invested in a second IFL to handle this new workload. To provide disaster recovery for their environment, the production ELS machine is mirrored to a smaller server at a secondary data center. The backup server features IBM Capacity Backup Upgrade (CBU), which enables its capacity to be dramatically increased if and when it is required to take over the production workload from the production server. With CBU, this spare capacity attracts no maintenance or software licensing costs until it is actually activated. Linux on ELS is also helping Atos develop an on-demand computing model for its customers, enabling them to pay for computing power on a transactional basis. “We can provision new Linux servers very rapidly, and measure capacity usage very precisely. If customers need more power, we can just turn it on almost instantly, and bill them accordingly.” Colin Clews, Technologies Manager, Atos Conclusion The world of computing infrastructure is changing and, in the course of that evolution, many of the truths that we have taken for granted for some time are set to be challenged. The perception that the future belongs to x86 blades with VMWare and horizontal scaling is one of those widely held beliefs that will face a significant challenge, from above with technologies like IBM zEnterprise and the Enterprise Linux server and from below with micro technologies like ARM- based processors. When it comes to a scale-up alternative, a choice has emerged and a number of organizations have elected to take that choice. While the creation of a private cloud based on IBM’s high-end server technology may not be right for you, you should at least be watching this space, and also plan to stay informed, as the economics of computing go through another shift that will place the impact of the emergence of client-server computing in the 1990’s into the shade. About this Paper This paper was sponsored by IBM, however the views contained within it are those of Bathwick Group. We value our independence, and it is our policy never to write papers for clients unless we are permitted to retain full editorial control. All of the case studies referenced in this paper have been verified both by IBM and Bathwick Group, and where necessary we have interviewed the clients concerned. If you have any questions regarding the content of this paper, please feel free to contact its author, Gary Barnett by emailing him at gary@bathwick.com. | 13 | | Page 13 | All contents © The Bathwick Group Ltd 2011 www.bathwick.com
  • 14. Building a foundation for a high-performance, low cost private cloud - November 2011 About Bathwick Group Bathwick Group has three divisions: research and consulting, powerful survey and marketing software, and a strategic think tank. BATHWICK: RESEARCH AND CONSULTING Research and consulting in four core practice areas:  IT industry Customer analysis and unique marketing programmes for vendors targeting mid-market and enterprise markets; strategic planning and go-to-market execution support  Enterprise IT Strategic support for enterprise IT leaders; productivity and infrastructure agility benchmarking and best practice  Sustainability Benchmarking and planning support for organisations wishing to embed sustainable practices and mitigate strategic risks. Future threat and opportunity identification  Innovation Rapid collaborative engagement services combining your key people with external experts to expedite solutions to major corporate challenges. IP protection frameworks STORRM SOFTWARE An enterprise-wide data collation, analysis and distribution platform A flexible multi-language software platform for surveys, benchmarks and assessments, market intelligence, lead generation and nurturing, sales enablement, marketing collateral distribution and control, offline surveys, games and multiple intelligence applications. THINKAGAIN A global collaborative research network ThinkAgain brings together business and political leaders with investors, academics, and leading thinkers to generate new insights into business performance, geo-political and sustainability issues. Membership is by invitation only. Document number: BG-INF-W-00083UK-EN-01 All contents © The Bathwick Group Ltd 2011