1. ® IBM Software © IBM Corporation IBM Internal Use Only--Not to be shared outside the company until July 25, 2006 Processor Value Unit Licensing for Middleware Evolving the Structure to Provide a Foundation for the Future Processor Value Unit - Technology Education

2. IBM Software Internal Use Only--Not to be shared outside the company until July 25, 2006 2 Technology Education Agenda  What is a Processor  What is an nWay  Processor Performance  Historical  Strategies  Disparity  Processor Vendors are moving to Multi-core  Summary

3. IBM Software Internal Use Only--Not to be shared outside the company until July 25, 2006 3 Processor Definition is Important in Middleware Licensing Single-core Chip Processor Core Chip Socket 1 Dual-core Chip Processor Core Chip Socket 12 IBM defines processor = core As do most Middleware Vendors…eg. Oracle and BEA However, some Hardware Vendors... Intel, AMD, and Sun define processor = chip  Single-core chips have 1 core per chip  Dual-core chips have 2 cores per chip  Quad-core chips have 4 cores per chip Multi-core chips

4. IBM Software Internal Use Only--Not to be shared outside the company until July 25, 2006 4  IBM System p & i, and HP 9000 call this an 8Way  Sun and all Intel/AMD vendors including IBM System x (xSeries) call this a 4Way All Hardware Vendors call this a 4Way Server 4Way Server 4Way or 8Way? 1 2 43 1 2 3 4 7 8 5 6  4 Processor Cores  4 Single-core Chips The Definition of nWay Differs by Hardware Vendor  8 Processor Cores  4 Dual-core Chips

5. IBM Software Internal Use Only--Not to be shared outside the company until July 25, 2006 5 All Middleware Vendors say this Server has 4 Processors Server 4Way Server 4Way or 8Way? 1 2 43 Most Middleware Vendors say this Server has 8 Processors 1 2 3 4 7 8 5 6  4 Processor Cores  4 Single-core Chips Most Middleware Vendors Count Processor Cores  8 Processor Cores  4 Dual-core Chips

6. IBM Software Internal Use Only--Not to be shared outside the company until July 25, 2006 6 Processor Cores Are Not All Created Equal Today  Historically, a constant workload required fewer processor cores over time  Some processor cores increased performance faster than others  Today, the number of processor cores required for a given workload varies by processor technology 1 Core Constant Workload 1 Core 4 Proc Year 1 1 Core Year 3 Year 5 2 Proc 1 Proc 1 Core Same Workload 1 Core

7. IBM Software Internal Use Only--Not to be shared outside the company until July 25, 2006 7 Processor Core Performance Disparity Expected to Grow Core Performance Time One Processor Core Improve Core Strategy Multi-core Strategy Core Disparity Increasing processor core performance disparity means traditional per processor licensing is not sustainable  The performance gap is growing between processor core technologies as a result of diverging strategies  Core performance improvement  Flat core performance, but increase cores per chip

8. IBM Software Internal Use Only--Not to be shared outside the company until July 25, 2006 8 Processor Vendors Are Moving to Multi-core Processor TechnologyPre-20052005 2006-7 Projected IBM PowerDual-core HP PA RISCDual-core Sun UltraSparcDual-coreOcti-core Intel and AMD x86Dual-coreQuad-core Intel (HP) Itanium (IA-64)Dual-core Fujitsu Sparc64Dual-core  IBM Power introduced dual-core chips in 2001  Octi-core chips introduced by Sun in 2005  Most x86 servers sold in 2006 will have dual-core chips A sustainable licensing structure that addresses the processor performance disparity on these multi-core chips is required

9. IBM Software Internal Use Only--Not to be shared outside the company until July 25, 2006 9 Summary  Processor definition is important in middleware licensing  IBM SWG defines a processor = core  Number of nWays and processors NOT always the same  Processor Core performance disparity is expected to grow  Not all processor cores are created equal today  Two Strategies to Improve Chip Performance  All vendors moving to Multi-core chips  A sustainable licensing structure to address this processor performance disparity is required  Therefore IBM is announcing the Processor Value Unit licensing structure effective July 25, 2006

10. IBM Software Internal Use Only--Not to be shared outside the company until July 25, 2006 10 Backup

11. IBM Software Internal Use Only--Not to be shared outside the company until July 25, 2006 11 Reference Material  See the Processor Value Unit Licensing Announcement for Passport Advantage Middleware effective July 25, 2006 for more details. This, and other education material, will be available on the Passport Advantage web site *Passport Advantage web site  Questions should be directed through the normal software support structure. If they are unable to answer a question, they will have access to the Processor Value Unit Licensing project office. * http://w3-103.ibm.com/software/xl/portal/viewcontent?type=doc&srcID=XT&docID=W108544T29242L86