1. © 2009 IBM Corporation System x ® 1 & 2 Socket Servers October 2009 IBM System x eXtreme energy efficiency

2. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 2 Energy costs have grown to half of hardware costs

3. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 3 Expenses for server management and administration are nearly twice the capital expense for server purchases

4. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 4 Both administrative and energy costs continue to grow rapidly

5. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 5  Businesses with larger data centers spend more on power and cooling than on the servers themselves  Companies are struggling with dated equipment, sprawling data centers, increased power requirements, under-utilized servers and shrinking budgets  Many enterprises have older servers that don’t meet today’s business needs and need to be upgraded.  Businesses need to run a more “green” business and be part of a Smarter Planet Critical challenges facing businesses today!

6. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 6 Energy usage is a top concern for datacenter owners  IT energy demand doubling every 9-24 months  6500 US Datacenters consume electricity = state of Utah  100 units of energy generation = 3 units of work for productive IT  IT accounts for 2% of anthropogenic CO2 emissions  eWaste cannot be ignored – 1 billion computers potential scrap by 2010 Source: IDC Predictions 2009 -Enterprise Server Market

7. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 7 Power – the Number One Issue "Even without factoring in the need for additional systems, due to need for faster processors and the reality of higher energy prices/watt, Robert Francis Group believes power will be the number one issue for most large company IT executives to address in the next 2-4 years. Ignoring this issue will NOT be an option. Power consideration must be incorporated into data center planning. This includes close cooperation with facilities management, intelligent reduction of unneeded applications, systems, and infrastructure, and re-evaluating system design with an emphasis on power efficiency as a fundamental design criterion.“ Robert Francis Group, Industry Analyst

8. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 8 IBM’s eXtreme energy efficiency solutions can help!

9. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 9 Server level Cooling Moore’s Law Rack level Cooling Low Voltage Smarter Design Function Density Datacenter Improvement Airflow Increases Virtualization Utilization Current Leakage Power Management Efficient power and cooling are complex issues There is no single fix. IBM leads the industry in delivering technology that can lower your operational costs up to 50% ! IBM has the most comprehensive power and cooling strategy available POWER AND COOLING Gold Efficiency Std. by 80 Plus

10. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 10 eXtreme energy efficiency solution components  IBM Power Configurator  IBM System x3650 M2  Virtualization on VMware and Microsoft Hyper Visor  IBM Active Energy Manager X3650 M2

11. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 11 Power Management with IBM Innovation IBM Power Configurator  Provides power and cooling information based on a server’s specific configuration.  Allows you to compare different x86 platforms to evaluate the power efficiency of each.  Select systems and IT infrastructure that best fit your data center infrastructure before you commit to buying the first server.  Link to the Power Configurator - Click HereHere

12. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 12 The most energy efficient 2-socket 1U and 2U servers: the System x3550 M2 and the System x3650 M2 1 1  In a head-to-head match up of new 2-socket 1U Intel® Xeon servers, the IBM System x3550 M2 delivers 5% better performance per watt than the Dell PowerEdge R610 and 22% better performance per watt than the HP DL360 G6.  For 2-socket 2U Intel® Xeon servers, the IBM System x3650 M2 delivers 6% better performance per watt than the Dell PowerEdge R710 and 9% better performance per watt than the HP DL380 G6.  IBM delivers leadership results for 2-socket x86 rack servers across a range of industry benchmarks.  IBM beats HP's published results in performance per watt, Java and SAP benchmarks. 3 3  IBM beats Dell's published results in performance per watt, Java, SAP and transaction processing benchmarks, offering a strong virtualization option against competitive rack offerings. 33 1 According to the SPEC® (Standard Performance Evaluation Corporation) performance per watt results published June 10, 2009. Results can be found at http://www.spec.org/power_ssj2008/results/power_ssj2008.html (link resides outside of ibm.com)http://www.spec.org/power_ssj2008/results/power_ssj2008.html 2 IBM Engineering Research Study, Feb’09 3 Benchmark results can be found at http://www-03.ibm.com/systems/x/resources/benchmarks/intel/benchmark/http://www-03.ibm.com/systems/x/resources/benchmarks/intel/benchmark/ 4 Based on Intel® data

13. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 13 #1 SPECpower scores CPU & DIMM Temperature Sensing Enhanced VRD Efficiency High Level of Chip Integration SSD (solid state disk) Support Ethernet TOE Dynamic memory throttling Disabling unused devices Intel Xeon P- state and C- state support Native integrated SATA support Highly efficient power supply Energy efficiency features of the System x3650/x3550 M2 Rack Servers

14. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 14 The System x3650 M2 & x3550 M2 Keep your business up and running with IBM leadership x3650 M2 and x3550 M2 (1) IBM Engineering Research Study, Feb.09 Leadership energy efficiency –New Energy Smart Design –Significantly lower power. –Saves over $100/server/year (1) Best in Class RAS –Light Path Diagnostics –Predictive Failure Analysis Enhanced Systems Management –Integrated Management Module –Tools Center –UEFI –IBM Systems Director 6.1 Maximized internal storage – High flexibility with 3 types of hot swap HDDs – 12 SAS/SATA/SSD in x3650 M2 Leadership Benchmarks –SPECpower –SPECjbb –SAP –TPC-E –Equal: VMmark, SPEC_CPU IBM Quality Compelling Value –11-1 consolidation –8.8x performance –3 month payback –Versus legacy uni core servers

15. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 15 Reduce costs through energy efficiency  Energy efficiency innovation in the x3550 M2 and x3650 M2 include:  New, greater than 92 percent efficiency power supplies exceed the CSCI 7/09-6/10, 80 Plus Gold efficiency standard  Up to 60 percent reduction in power when idle and up to 25 percent reduction when fully utilized vs. the previous generation  $100 in energy savings per server per year Significantly reduce TCO with leadership energy efficiency. All new thermal designs New voltage regulators and higher integration on the board simplifies power distribution and reduces distribution loss  Pressure-sensitive altimeter comes standard in the x3550 M2 and x3650 M2  Combined with the IMM, and counter- rotating fans, the x3550 M2 and x3650 M2 get better cooling efficiency with less fans

16. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 16 Virtualize and dramatically reduce Costs with IBM x3650 M2 11 to 1 Consolidation Ratio and Smart Energy Design Maintain workload levels with significantly fewer x3650 M2 servers – at much lower costs! Current Solution A 50 legacy x346 Servers Single-Core processors Web Serving – IBM Websphere Microsoft Windows Microsoft SQL IBM Tivoli Sys Management Recommended Solution B 4 new x3650 M2 Servers Quad-Core processors Web Serving IBM WebSphere Microsoft Windows Microsoft SQL IBM Tivoli Sys Management 3 Month Payback 52% lower TCO $2.6M TCO savings 95% lower power & facilities costs 11 to 1 Consolidation Use the IBM TCO Tool – powered by Alinean – to model your ROI:IBM TCO Tool Input your company’s current server profile and in less than 20 minutes you’ll produce a visual model that demonstrates your expected Return on Investment Sample

17. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 17 IBM Systems Director Active Energy Manager (AEM) v4.1 FeaturesBenefits Report and collect actual power draw No more data center budgeting assumptions Power trendingSystem-level power analysis for better decision making Intelligent power virtualization Automated or user defined power control to help optimize performance/watt CPU control with Intel DBS/ AMD PowerNOW Reduces power draw during low utilization via OS OS independentWorks on all blades and all compatible OS Cost per systemIncluded with virtually all blades

18. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 18 Innovation for Greener IT with IBM Cool Blue Portfolio System designs Leadership compute power per kilowatt BladeCenter Energy efficiency from the ground up  Power Configurator to plan power usage  Systems Director Active Energy Manager v4.1 (Dynamic Power Capping not supported)  Leadership virtualization capabilities  Tivoli Enterprise Management Calibrated Vector Cooling™ Reduces wasteful air movement IBM power supplies Measurement built in Rear Door Heat Exchanger Thermal management innovation Acoustic Door Stop noise pollution Go green and potentially add to your bottom line  Data Center stored cooling solution  How-to guide for energy rebates  Energy-efficiency assessments  Data center thermal analysis and optimization facilities integration

19. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 19 IBM leadership in virtualization:  Plan your savings today – Count the number of servers that could be reduced from your data center in a virtualized environment IBM System x power tools help:  Recognize your ROI potential - Ask for a sample report from the Power Configurator IBM modular server power efficiency:  Talk to your IBM Business Partner about a demonstration of your savings by using the IBM TCO tool Take control of your power now

20. System x 1 & 2 Socket Servers Innovation Comes Standard. Reduce cost. Improve service. Manage risk. © 2009 IBM Corporation 20 THANK YOU!