The smarter planet starts here.

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1 IBM Deutschland Research & Development Welcome to the Boeblingen Lab The smarter planet starts here.

2 Linux on System z Kundenworkshop 22./23. März 2011 Welcome Rolf Schmidt Linux on System z Development, Service & Evaluation 2

3 Linux on IBM System z in 2010 Installed Linux MIPS The momentum continues Shipped IFL volumes increased 34% from YTD 4Q09 to YTD 4Q10 Installed IFL MIPS increased 6% from 3Q10 to 4Q10 Cumulative total IFL Engines Shipped 11,315 32% of System z customers have IFLs installed Linux is 19% of the System z customer install base (MIPS) (YE09 - Linux was 16% of System z customer install base (MIPS) 64% of the Top100 System z clients are running Linux on System z > 3,000 applications are available for Linux on System z* Two Linux partners: Novell SUSE and Red Hat Gold standard in virtualization with z/vm * ISV Enablement data as of YE10

4 IBM zenterprise System - Best-in-class systems & software technologies IBM zenterprise 196 (z196) Optimized to host large-scale database, transaction, and mission-critical applications The most efficient platform for large-scale Linux consolidation Capable of massive scale-up zenterprise Unified Resource Manager Unifies management of resources, extending IBM System z qualities of service end-to-end across workloads Provides platform, hardware and workload management zenterprise BladeCenter Extension (zbx) Selected IBM POWER7 blades and IBM System x Blades* for tens of thousands of AIX and Linux applications High-performance optimizers and appliances to accelerate time to insight and reduce cost Dedicated high-performance private network A System of Systems that unifies IT for predictable service delivery * All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only.

5 Putting Enterprise Workload to the task Use zenterprise System solution to improve your IT infrastructure design The unique values of Linux on z196 Single-server simplicity IBM DB2 z/os Oracle DB IBM DB2 Linux on System z LPARs Oracle E-Business Suite z/vm People Soft Enterprise Linux on System x * Blade Virtualization Siebel Enterprise AIX on POWER7 Blade Virtualization Massive scalability High availability Rock-solid security z196 zbx Private data network (IEDN) Unified Resource Manager These values continue to exist on IBM System z architecture only. The virtualization capabilities of the zbx attached hardware is native to that hardware. * All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only.

6 Using zenterprise for Best Fit Cloud Computing Workload Optimization with Operational Certainty and Efficiency IBM DB2 z/os Integrated Service Management for System z Oracle DB IBM DB2 Linux on System z LPARs Oracle E-Business Suite z/vm People Soft Enterprise Cross-System Software and Applications Linux on System x * Blade Virtualization Platform Management with zenterprise Unified z196 Resource Manager zbx Private data network (IEDN) Unified Resource Manager Siebel Enterprise AIX on POWER7 Blade Virtualization Reduced Cost Business Value: Reduce Cost, Improve Service, Manage Risk Optimized Business Higher Utilization - Shared everything architecture - Superior workload management - Host large and small workloads More Efficient Data Center - Less power and cooling - Less floor space - Fewer parts to monitor Increased Productivity - Efficient, rapid provisioning - Superior life-cycle management - Fast, easy technology refresh Greater Reliability, Availability - Hardware / hypervisor redundancy - Decades of RAS innovation - Capacity and Backup on Demand * All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only.

7 Backup

8 Using zenterprise for Best Fit Cloud Computing Workload Optimization with Operational Certainty and Efficiency Why clouds on larger, scale-up servers? System z Higher Utilization - Shared everything architecture - Superior workload management - Host large and small workloads z/os z/tpf z/vse Linux on System z Linux on System z More Efficient Data Center - Less power and cooling - Less floor space - Fewer parts to monitor System z PR/SM z HW Resources z/vm Increased Productivity - Efficient, rapid provisioning - Superior life-cycle management - Fast, easy technology refresh Greater Reliability, Availability - Hardware / hypervisor redundancy - Decades of RAS innovation - Capacity and Backup on Demand * All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only.

9 Smart Analytics Cloud in the IBM Corporation Our commitment to informed decision making led us to consider private cloud delivery of Cognos via System z, which is the enabling foundation that makes possible more than $20M savings over 5 years. IBM CIO Office What IBM has done is come up with a perfect application for a private cloud. John Webster, CNET, Nov. 18, 2009 Blue Insight: IBM s deployment is the world s largest private cloud computing environment for business intelligence and analytics that will empower IBMers from around the world with information and business insight to make smarter decisions no matter where the data resides IBM Smart Analytics Cloud: a services based solution offering to enable large enterprise clients to build their own private cloud environment with easily consumable business intelligence services, system and software IBM Blue Insight results: Consolidating 20+ multi-product, departmental BI deployments to Cognos 8 BI on System z Realizing value from 60+ data sources across IBM representing more than 1 PB of data Deploying private cloud self service to support 200,000+ named users across our global workforce (120K by mid-year 2010, expanding to 200K by 2011) 56% cost savings per user (grows with volume) $7,775,767 Infrastructure cost savings realized with z10 technology $2,558,525 Business Intelligence Competency Center (BICC) cost savings Elasticity in a shared server model supporting SLAs for diverse tenants; speed to value and reduced capital spend (26 weeks to 2 weeks)

10 Consolidate what? OLTP Web Serving Batch CRM/ERP Application Develop. Data Warehousing Data Analysis /Collaboration Security Networking File & Print Systems Mgmt. Other workload 18% 23% 29% 31% 29% 37% 43% 43% 49% Percentage of survey respondents Source: 4Q2010 IBM Market Intelligence 54% 51% 51% 57% Customers use the Enterprise Linux Server for: Application Serving (OLTP, Web, ERP, etc.) Application Development Data Serving (Warehousing & analytics) Infrastructure Serving (Security, file, print, etc.) Recommended best fit workloads: Business critical applications: WebSphere, SAP, Oracle E-Business Suite, Development & test: e.g. of WebSphere / Java applications Data services: Cognos, DB2, InfoSphere, Oracle, Informix, Builders WebFOCUS & collaboration: Lotus Domino, Lotus Collaboration products, Web 2.0 Network Infrastructure: FTP, NFS, DNS, etc., Business connectors: WebSphere MQSeries, DB2 Connect, CICS Transaction Gateway, Security Services: Firewall, Proxy, etc.