IBM has been innovating in cloud computing technologies for over 45 years. The IBM zEnterprise platform is the industry's only heterogeneous cloud solution, combining cloud characteristics with the leading capabilities of System z for efficiency, manageability, scalability, and security. IBM Cloud Computing on System z is transforming businesses by providing better qualities of service, advanced workload optimization, and efficient resource consolidation.

1. IBM Cloud Computing and System z
Robert Leblanc
Senior Vice President, Middleware Solutions

2. Smarter Computing: System z Analyst Summit
Key Takeaways …
IBM has been in the Cloud Business for over 45 years
Beginning with Mainframe Virtualization, IBM has been innovating on the
technology underpinnings of Cloud
IBM zEnterprise is the industry’s only heterogeneous cloud solution
Combines cloud characteristics with System z’s leading capabilities for efficiency,
manageability, scalability, and security
IBM Cloud Computing on System z is transforming the business
Better qualities of service, advanced workload optimization, and efficient resource
consolidation
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3. Smarter Computing: System z Analyst Summit
IBM’s continued leadership in Cloud is helping clients create and
deliver value in new ways
Client Engagements
Virtualized Standardized Automated
• 2k successful cloud
End to end capabilities engagements in 2010
Business Services
Implementation Managed • 50% of Fortune 10 and Fortune
and Services • •Collaborative business 50 working with IBM on private
Collaborative business
Consulting process design clouds
process design
Services • •Real time analytics
Platform Real time analytics • 80% of Fortune 500 companies
using IBM cloud capabilities
• •Pre-configured workload • Managing >1M virtual machines
Pre-configured workload
patterns worldwide
patterns
Infrastructure • •Dynamic provisioning
Dynamic provisioning • 19M SaaS users
and scheduling
and scheduling
Continuing Leadership
• •Automated Service
Automated Service
Provisioning &&
Provisioning • Recognized as cloud computing
Management leader by analysts
Management
• •Security across data
Security across data • 11 Cloud Labs worldwide
centers
centers
• •Dynamic elasticity
Dynamic elasticity • 200 IBM researchers working on
Cloud security and privacy
Public Hybrid Private
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4. Smarter Computing: System z Analyst Summit
Multi-
IBM has been innovating in the underpinnings Architecture
Rapid
of cloud computing for over 45 years Elasticity
Workloads
Consolidation
Clustering
High Availability
Resource
Broad Pooling
Network
Access
2010
IBM introduces the
2006 zEnterprise System
IBM unveils the
– consisting of the
System z9
world’s fastest and
Enterprise Class
2001 Winnebago and Business
most scalable
Industries helps system, and
Class machines
1994 establish Linux integrating
IBM featuring zAAP,
on the heterogeneous
Announces the IFL and zIIP
mainframe as platforms, to run
System/390 specialty engines
1971 / IBM delivers ideal multi-architecture
Parallel
more than 1,300 mainframe workloads.
1972 Sysplex
April 7: System/370 offering applications
1964 IBM introduces the computers
System/360 as a “new worldwide and
generation of announces
4 electronic computing VM virtualization © 2011 International Business Machines Corporation
4
equipment”

5. Smarter Computing: System z Analyst Summit
IBM zEnterprise provides a new dimension in Cloud Computing
Unified management for a Scale out to a trillion
The world’s fastest and most
scalable system: smarter system: instructions per second:
IBM zEnterprise IBM zEnterprise BladeCenter®
IBM zEnterprise™ 196 (z196)
Unified Resource Manager Extension (zBX)
(zManager)
Broad Network Resource Pooling
Access 1000s of virtualized systems
Very large number of end across a heterogeneous
user access from multiple resource pool
sources including mobile
devices
Rapid Elasticity Measured Service
A new dimension of Meter, monitor, and track
Scale. Most efficient workloads for chargebacks
platform for Large-scale and capacity expectations
Linux consolidation
On Demand Self-Service
Automate provisioning and service
requests reducing provisioning cycles
from weeks to minutes
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6. Smarter Computing: System z Analyst Summit
IBM zEnterprise and Cloud provides better ….
Better Qualities of Service
Higher levels of security and
availability of services
Business Services
Better Qualities of Service
Platform
Advanced Workload
Advanced Workload Optimization
Optimization Workload optimized placement
and integrated management on
elastic, scalable infrastructure
Infrastructure
Efficient Consolidation
Efficient Consolidation
Large scale consolidation and
virtualization to maximize efficiency
of shared resources
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7. Smarter Computing: System z Analyst Summit
IBM zEnterprise provides large-scale consolidation and virtualization
to maximize server utilization
Consolidated dual site
IT infrastructure with 2
Consolidate more servers, IBM System z10 EC
Do more with servers– cut Java
networks, applications, and data
less workloads by 15% per
on a singe Linux and z/VM year
Achieve savings Cut electricity costs by
on a greater Use less power and floor space 60% and floor space
requirements by 50%
scale
Up to 60% more
Scale resources to support capacity and up to 33%
Manage Growth
different types of workloads lower prices for Linux
and Complexity
with Linux IFL IFL Hardware
environments
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8. Smarter Computing: System z Analyst Summit
Nationwide consolidates and virtualizes with Linux on IBM System z
Infrastructure
Business Problem:
With server proliferation, limited floor space,
high cooling and electricity costs, and
lengthy server provisioning times,
Nationwide was faced with a need to build a
• US$15 million cost multi-million dollar data center
savings anticipated over
three years
Solution:
• 85-90% server utilization • Nationwide made a strategic decision to
move to a flexible, virtualized IT environment.
• 80% reduction in
environmental costs • Running hundreds of virtual servers on two
IBM System z10 Enterprise class machines
• Web hosting costs
lowered by 50 percent • Virtual server images are deployed in
minutes after a request is submitted using
• Migrated to z10 in 45, Linux on z/VM
upgrading hundreds of
virtual servers, with 0 • Services are monitored and managed
application breakage
• Applications move from zLinux to AIX back
to zLinux depending on requirements
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9. Drive IT
Smarter Computing: System z Analyst Summit Efficiency
Linux on z196 is the Most Efficient Platform for Large-scale
consolidation
Lower acquisition costs of hardware and software vs distributed servers
– 74% less than Nethalem*
Less than $335 per year per virtual server (TCA)*
Reduce floor space by up to 90% compared to distributed servers*
Reduce labor costs by up to 70% compared to distributed servers*
Consolidate 40 Oracle server cores onto 2 Linux cores on zEnterprise
C o n so lid atio n o n S ystem z
$2.0
Millions
39% less than
$1.5 HW m aint
Nehalem
74% less than HW
$1.0
Nehalem SW S&S
$0.5 S W O TC
$0.0
New x86 z10 z196
New X86 z 10 z 196
* Distributed server comparison is based on IBM cost modeling of Linux on zEnterprise vs. alternative
9 distributed servers. Given there are multiple factors in this analysis such as utilization rates, © 2011 International Business Machines Corporation
9 application type, local pricing, etc., savings may vary by user.

10. Smarter Computing: System z Analyst Summit
Clients like Blue Cross Blue Shield of Minnesota are leveraging
Cloud on System z today
Business Problem:
The Microsoft Windows and Intel
processor-based server landscape at Blue
Cross and Blue Shield of Minnesota
• Lead time for server (BCBSM) was inflexible and costly to
provisioning reduced to operate and maintain.
99%
Solution:
• IT deploys new Linux
• IBM consolidated 140 HP Intel-architecture
Virtual Servers for test
servers to a single IBM System z with six
and dev within 20 mins
Integrated Facility for Linux (IFL) engines.
• Not a single incidence of
unplanned downtime or • Key applications now run in SUSE Linux
underperformance Enterprise virtual servers, while IBM DB2
• With Linux on IBM databases run on z/OS on the same physical
System z, BCBSM can machine
achieve near-continuous
availability by reducing “Even without factoring in the maintenance and support costs—which would be
the need for planned considerable for a large estate of physical servers—we found that running a
downtime virtualized Linux environment on System z would be somewhere between 30 and 50
percent less expensive than a distributed architecture.”
— Ted Mansk, Director of Infrastructure Engineering and Databases at BCBSM
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11. Smarter Computing: System z Analyst Summit
Integrated Service Management on IBM zEnterprise provides
automated services to various user groups while equipping IT with
visibility and control over these services
VISIBILITY CONTROL AUTOMATION
One integrated service One integrated policy for
management engine to managing service
manage your entire data availability and data
center protection
One integrated workflow to
optimize service delivery
On average, 81% of cloud payback is driven by savings enabled
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by service management © 2011 International Business Machines Corporation
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12. Smarter Computing: System z Analyst Summit
IBM Tivoli Service Automation Manager, a key component of ISM,
supports Service Lifecycle Management of Cloud workloads on IBM
zEnterprise Deploy Service
Request-driven provisioning
Service Subscription Management agents and best practices
Request a service Application / service on boarding
“Sign“ contract Self-service interface
Manage Service Operation
Visualize all aggregated
information about situations
Offer Service
and affected services
Register services Control operations and
and resources
changes
Add to service Event handling
catalog Automate activities to
execute changes
Include charge-back
Service Creation
Scope of service
SLAs Service Termination
Topologies, best Controlled clean-up
practices management
templates
IBM Tivoli Service Automation Manager
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Supports Linux and z/VM © 2011 International Business Machines Corporation

13. Smarter Computing: System z Analyst Summit
Unified Resource Manager simplifies workload management
across multiple application environments
Reduce energy
costs by 80%
Gain significant
time to market with
Reduce floor space
reduced
by 90%
deployment times Hypervisors Energy
80x performance
Reduce labor increase over
Operations Performance
costs by 70% distributed systems
Reduce Networks Virtual
60% faster
Servers
development performance per core
costs by 20% over z10
Reduce network Manage 10x the number
complexity by 98% when of VMs than VMWare
compared with distributed
data center distributed Manage up to 100K virtual
data center servers
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14. Smarter Computing: System z Analyst Summit
Business Services
IBM zEnterprise196 is the fastest, most scalable enterprise server
for Cloud Computing supporting optimized workloads
• Scales up … over 52,000 MIPS in a
single footprint
• Scales out … 80 configurable cores
• Scales within … specialty engines, Linux Linux
Business Data
cryptographic processors, hypervisors Virtual Virtual
Apps Serving
Servers Servers
• Perfect fit for large scale consolidation z/OS z/OS z/VM z/VM
supporting up to 50 distributed servers
on a single core
Shared Everything Infrastructure
(CPU, Memory, Network, Adapters, Crypto, Devices)
• 60% more Linux workloads at a 35%
lower price delivering a virtual Linux
server for under $1 / day
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15. Smarter Computing: System z Analyst Summit
Let’s look at a typical deployment environment in a large Data Center
Platform
10,000 Workloads require…
1603 Virtualized Intel Servers vs…
875 Intel Xeon 500 Intel Nehalem 228 Intel Nehalem
7,000 light Servers using Servers Servers using
workloads VMware v v
(8 cores each, VMware
(8 cores each) non-virtualized) (8 cores each)
500 heavy
workloads
7 9 5
zBX racks for v
zBX racks for v
zEnterprise 196s
x blades Power blades
2,500 heavy I/O
workloads
Best fit
assignments
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Optimized workloads forBusiness Machines Corporation
© 2011 International
improved
15
scalability

16. Smarter Computing: System z Analyst Summit
JD Williams improves shopping experience and sees revenue
gain by efficiently managing different workloads
Business Problem:
JD Williams needed provide a better shopping
experience, making changes to various
websites without interruption. They also needed
fast delivery of different workloads including
images and videos to sustain and drive online
• E-Commerce sales are shopping growth.
up 17% for 1H
• In November 2010, JD Solution:
Williams experienced its • JD Williams is using z196 for image and video
heaviest 2 day online serving.
shopping experience with
no performance • System was optimized to handle Linux, Java,
degradation WebSphere, and Cognos workloads
• Reduced MIPs by 20% • Starting with 4 zAAPs, 1 zIIP, 4 IFLs with
due to shift in workloads flexibility to add more specialty processors later
to assist processors
• Simplified back up and recovery on 1 server
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17. Smarter Computing: System z Analyst Summit
IBM zEnterprise provides cross-platform Quality of Service for
Cloud Applications
Security Virtualization
Extending System z Security to 1000s of virtualized systems
a Private network across across a heterogeneous
heterogeneous resources resource pool
Availability Efficiency
Resiliency management 1/4 network, 1/25th floor space,
and fewer points of failure 1/20 energy, 1/5 administration
Scalability
A new dimension of scale
Infrastructure capable of a Trillion Instructions per second
Up to 70% in Up to 52% lower Fewer points of breach
security audit savings security admin costs than pure UNIX or x86
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18. Smarter Computing: System z Analyst Summit
Transzap delivering strong business continuity, security and cost
efficiencies
Business Problem:
As a small business with tens of billions of
dollars in client transactions flowing through
• Serve more than 69,000 their systems each year, Transzap needed
users across 6,800 an economical, reliable platform to provide
companies · clients with high availability and security to
their SaaS application while enabling the
capacity to accommodate growth within their
• Provides higher levels of software as a service business model.
uptime for their customers
Solution:
• Transzap consolidated on an IBM System z
• Offers peace of mind platform to provide the stability and
through 24x7 world-class scalability needed to accommodate triple
hardware support digit volume growth.
• Transzap migrated to System z and
• “We intend to deliver a
virtualized its critical applications on Linux®
99.9% application uptime
on System z, a platform that supports
guarantee to our customer
Transzap's environments.
base, thanks to the
availability characteristics
“We have to be able to look our customer in the eye and assure him or her that our
of System z”
quality of service will be as good or better than the quality of service that can be
provided to the organization from their own IT infrastructure”
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18 --- Peter Flanagan, CEO of Transzap, Inc © 2011 International Business Machines Corporation

19. Smarter Computing: System z Analyst Summit
The difference between those that say “Mainframe”, and those that
say “Cloud”, is the year they were born!
IBM zEnterprise is designed to handle heterogeneous architectures
driving significant benefits
Higher Utilization More Efficient Data Center
• Up to 100% CPU utilization • Less power and cooling
• “Shared everything” architecture • Less floor space
• Host thousands of mixed workloads • Fewer parts to manage
Increased Productivity Greater Reliability, Availability
• Efficient, rapid provisioning • Built-in hardware redundancy
• Superior workload management • Decades of RAS innovation
• Fewer parts to manage • Capacity and Backup on Demand
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20. Smarter Computing: System z Analyst Summit
Thank you!
ibm.com/smartercomputing
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21. Smarter Computing: System z Analyst Summit
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