Cloud computing for System z

BUSINESS & IT ALIGNMENT Cloud-onomics… CLOUD COMPUTING = Reduced Cost ….leverages virtualization, standardization and automation to free up operational budget for new investment VIRTUALIZATION + ENERGY EFFICIENCY STANDARDIZATION AUTOMATION In today’s economy, many businesses are faced with the challenge of “taking cost out” of their infrastructure while continuing to deliver new , innovative business services - basically they need to “do more with less” There are two primary levers to achieve cost optimization – operating expense and capital expense, and for many businesses its not just a question of lowering costs its also important to strike the right balance between Op-ex and Cap-Ex On the horizontal axis, you have virtualization, or the ability to pool the IT resources to reduce capital expense of hardware, software and facilities. On the vertical axis, is standardization…with common software stacks , operational policies, and improved service management. The farther you can drive standardize the more you reduce operating expense – like labor and downtime – which is far and away the fastest growing piece of the IT spend. The more standardization you are able to achieve within your infrastructure, the greater the economies of your operating expenses become. Similarly, the more you leverage virtualization within your IT infrastructure, the greater the economies of your capital expenditures will be. So addressing both standardization and virtualization is key to reduce infrastructure costs, while still meeting the dynamic needs of the business. The need to achieving cost optimization has also provided fertile ground for Cloud Computing. The cloud paradigm is an attempt to improve service delivery by applying engineering discipline and economies of scale in an Internet inspired architecture. Cloud computing can be an important new option in helping businesses optimize the IT expense equation while maintaining fast, high quality service delivery. NOTE: If asked to discuss public vs. private clouds: - A private cloud drives efficiency, while retaining control and greater customization. - Public clouds today are for processes deemed more easily standardized and a lower security risk. There some functions that already exhibit a high degree of standardization, that are more easily moved to a public cloud – things like search, e-commerce, and discreet business processes like sales force management. + + + = = AGILITY BUSINESS & IT ALIGNMENT SERVICE FLEXIBILITY INDUSTRY STANDARDS OPTIMIZED BUSINESS …allowing you to optimize new investments for direct business benefits 2

Cloud Computing Delivery Models Flexible Delivery Models Public … Access by Service provider owned and managed. subscription. Delivers select set of standardized business process, application and/or infrastructure services on a flexible price per use basis. Private … Privately owned and managed. Access limited to client and its partner network. Drives efficiency, standardization and best practices while retaining greater customization and control Cloud Services Cloud Computing Model Hybrid … Access to client, partner network, and third party resources .…Standardization, capital preservation, flexibility and time to deploy .… Customization, efficiency, availability, resiliency, security and privacy ORGANIZATION CULTURE GOVERNANCE ...service sourcing and service value 3

An Architectural Overview for Cloud Computing Service Creation & Deployment Service Request & Operations IT Infrastructure & Application Provider Virtual Image Management End User Requests & Operators Service Catalog, Component Library Datacenter Infrastructure Cloud Administrator Access Services Design & Build Image Library (Store) … Deployment Service Management Service Catalog Request UI Operational UI Service Oriented Architecture Information Architecture Standards Based Interfaces Operational Lifecycle of Images Standards Based Interfaces Virtualized Infrastructure 4

An Architectural Model for Cloud Computing Service Creation & Deployment Service Request & Operations IT Infrastructure & Application Provider Virtual Image Management End User Requests & Operators User Request Management/Self Service Portal Security: Identity, Integrity, Isolation, Compliance Usage Accounting License Mgmt. Image Lifecycle Mgmt. Provisioning Performance Mgmt. Availability/Backup/ Restore Service Lifecycle Management Service Management Design & Build Image Library (Store) Optimized Middleware (image deployment, integrated security, workload mgmt., high-availability) Service Oriented Architecture Information Architecture … Deployment Service Catalog Request UI Operational UI Virtual Resources & Aggregations SMP Servers Network Hardware Storage Servers System Resources System z Storage Virtualized Infrastructure Server Virt. Storage Virt. Network Virt. Operational Lifecycle of Images 5

The layers of IT-as-a-Service Collaboration CRM/ERP/HR Business Processes Industry Applications Software as a Service Middleware Web 2.0 Application Runtime Java Runtime High Volume Transactions Database Development Tooling Platform as a Service Servers Networking Data Center Fabric Storage Shared virtualized, dynamic provisioning Infrastructure as a Service

The Mainframe Cloud agenda Focus on Strengths Extend the Data Serving and Massive Virtualization Strategy of System z to embrace Cloud Computing Take advantage of System z efficiencies As the industry drives the focus from capital to operational costs, the opportunity to grow the presence of the mainframe is clear Extend the mainframe strategy Use the traditional strengths of System z to offer a differentiated IBM Cloud offering to our enterprise customers and transparently to the broader community.

InfoSphere Information Server System z Data Cloud allows customers to bring BI services with less cost and higher qualities of availability and security. Business Services Portal What is a Data Cloud? Centralize BI using Cognos on z/Linux Take Data from anywhere: structured, unstructured, applications, mainframe, or distributed Deliver consumer driven services to a broad set of users / lines of business Automate delivery of services Why z for data clouds? Save costs with operational efficiencies of z and virtualization Deliver qualities of service: availability, security, recoverability Allow for elastic growth in tenants and data Prevent unforeseen operations costs that occurs with a patchwork IT investment pattern Understand Cleanse Transform DB2 Warehouse for z/OS TSAM zLinux InfoSphere Information Server Deliver Central repository for data .. For multi-users/ line of businesses Cloud of analytical applications that can be provisioned dynamically as users and new users are identified and authorized Leverage the data centric strengths of z: allows for multi-tenant data support, Sysplex enablement and massive consolidation at the application layer

System z Public Sector Cloud delivers a robust and secure open source solution for efficiently reaching massive volumes of users. Why z for the Public Sector Cloud? Leverages limited IT pool most effectively Operationally efficient with broadest reach Highly virtualized with LPAR isolation and shared everything infrastructure Supports an open source environment Runs mixed workloads effectively What is a Public Sector Cloud? Education, healthcare or government services that can be hosted by university, corporate & government entities Partnership with open source & low cost application vendors in the public sector space Designed for effective use of the available resources – skills, power, etc. for maximum impact Gov’t Services Education Services Value add security services Healthcare Services Automation, Metering, Billing LAMP stack or IBM MW z/VM OSS workload examples: Consumer & business services: Virtual Linux desktops Education services: Education ERP for financials, student administration and research Learning Management System for remote course mgmt, collaboration, and content Government services: Disaster recovery finding missing people, managing aid, managing volunteers, tracking camps effectively between Government groups, civil society and victims OSS Healthcare services: Open Medical Record System for standardized medical informatics OSS OSS OSS OSS

A summary of client insights from engagements What we’ve learned… Cloud is a strategic C-Suite discussion Clients focused on how cloud solves business problems (and in today’s economy) in a self-funding manner Center discussion on business drivers, how our solution solves their issues, ROI, and lessons learned IBM has brand permission to assert leadership Clients want clear view of architectural vision, security, notion of an enterprise cloud, range of capability and expertise of IBM Competitors are encouraging clients to “push” IBM How to questions - How will you deploy applications on Amazon Cloud? Azure Platform? Strategy questions – Does IBM have hosted cloud capability similar to Amazon? What is your ecosystem? Case Studies and References – Where else has this been done? 10

IBM Research Computing Cloud (RC2) A living lab to advance Research strategies Provides self service “on demand” delivery solution for research computing resources Research Compute Cloud (RC2) Zero touch support for the full life cycle of service delivery Order creation Approval process E-mail notification Automated provisioning Monitoring India Zurich Watson A System z cloud in the Tokyo Research Lab is being integrated into RC2 (April) 11

Financial Services Company builds a zTest cloud Business Problem Solution Overview Phased pilot, with first phase completed in Q408. Use TSAM as the cloud management solution (incl. service management) in a pilot. Manage the deployment of distributed WAS ND instances on zLinux, z/VM, DASD. Implement and prove a set of scenarios: Instantiation of a distributed WAS ND cluster running on zLinux. Increase capacity of a WAS ND cluster service instance. Delete a WAS ND cluster service instance. Tangible results from Pilot: Simplified – Requires less interaction with developers to get a new WAS ND Cluster. Faster time-to-market for developed apps. 100% consistent deployment of environment Complex IT environments, lacking automation. This results in long lead times for requests, and high cost for deploying and managing environment. Little standardisation of configuration leading to quality issues and additional maintenance overhead. Want to improve audit results and IT compliance for development and test. Need to improve capacity without increasing cost Lessons Learned “Don’t eat the elephant in one go!” Set scope around a process not around a function – focus on the people and the skills to drive rapid implementation. This is transformative and crosses organizational boundaries. Executive sponsor support is vital. 12 12

Mainframes for SW As a Service Leading SaaS provider of ePayable, digital data, and spend analysis solutions 44,000+ users 4,200 companies $80 B in transaction detail, processed • Available • Secure • Elastic Traditional Lintel shop Challenge to scale, manage, secure Complex configurations Linear costs for growth New z9 Business Class shop 100% YTY growth-plan to production Flexible capacity on demand Centrally managed & secured Manageable cost of incremental growth Oildex the leading provider of e-payable “The IBM z9 provides the stability and scalability needed to accommodate Transzap’s triple digit volume growth in a SaaS environment.” – Peter Flanagan, President IBM Cloud Computing 13

SUSE Linux from Novell

Novell® and IBM Partnership Highlights SUSE® Linux Enterprise runs on all IBM hardware platforms IBM and SUSE Linux Enterprise co-developed Linux for Power Systems and System z IBM/Novell co-developed IBM Retail Environment on SUSE Linux Enterprise (IRES)‏ Dedicated Alliance Teams at Novell and IBM Novell is Strategic IBM Alliance Partner since December 2005 IBM support-line on SUSE Linux Enterprise SUSE Linux Enterprise Server is on IBM's Passport Advantage (PPA) Program 15

SUSE® Linux Enterprise Server for System z Built for Demanding Conditions Over 1,000 certified applications available SUSE Linux Enterprise Server for System z includes over 180 features requested by IBM SUSE Linux Enterprise Server is recognized as a leading platform for mission-critical computing: Higher reliability than Windows, Red Hat and Solaris; according to Yankee Group #1 in the SAP-on-Linux market (75% share)‏ #1 in the mainframe Linux market (80% share)‏ #1 in High Performance Computing (6 of the top 10)‏ Another key advantage of Enterprise Linux Servers from Novell is that it is built for and proven in the most mission-critical computing environments. It offers extreme reliability Higher reliability than Solaris, Windows and Red Hat according to an extensive Yankee Group customer survey (January 2008)‏ It delivers outstanding performance and scalability Runs 6 of the world’s top 10 supercomputers, and scales up well on 32-64 core machines It is #1 for SAP on Linux Recommended by SAP and #1 among SAP customers It is also #1 for mainframe Linux Strong partnership with IBM and #1 among System z customers It is trusted by customers for their most important systems Ensures the safety of thousands of passengers as it powers the German Air Traffic Control’s radar processing systems 16

For more information, please contact me at: Thank you! For more information, please contact me at: agreggo@us.ibm.com