1. © 2008 IBM Corporation June 10, 2008 1 IT Industry Analyst Briefing Part 1 – June 10, 2008 Project Big Green II Expanding the Scope Steven Sams and Chris O’Connor

2. © 2008 IBM Corporation June 10, 2008 2 Agenda  Dramatic Advances for Green Data Centers Steve Sams, VP, Global Site and Facilities Services, IBM Global Technology Services Chris O’Connor, VP, Tivoli Strategy and Market Management IBM Software Group –New offerings across five focus areas –Breakthrough in deployment options –New energy management capabilities  Questions

3. © 2008 IBM Corporation June 10, 2008 3 Key Messages  Energy efficiency is a global issue with significant impact today — and will have an even greater impact in the future  Data center design must change – technology and business growth uncertainty and rising costs drive the need for a new approach  Energy efficiency is a key metric to evaluate overall IT operational efficiency  Immediate financial return can be realized by optimizing around energy efficiency in current data centers, while planning for the future

4. © 2008 IBM Corporation June 10, 2008 4 Client Results Source: Data from subset of IBM engagements with over 2000 clients where savings have been quantified. “Average achievable energy savings greater than 40%” “Data Center Energy Efficiency assessment shows average pay back < 2 years” “Average utilization rates increased 2X to 4X” “$1 energy savings drives another $6-8 operational savings on average” “Efficiency projects ranged from 2,000 sq. ft. to 180,000+ sq. ft.” “Achieved data compression rates of 83%” “40 scalable modular data centers installed; each deployed within 8-12 weeks” “12 MMT assessments drove potential 13 million kWH annual savings”

5. © 2008 IBM Corporation June 10, 2008 5 Diagnose Build Cool Virtualize Measure & Manage IBM Project Big Green Project Big Green –Portfolio Enhancements 2008 New Services: Get the facts  Mobile Measurement Tool formalized as product and delivery capacity tripled New Offering: Software and Services  WebSphere Virtual Enterprise  TS7530 Tape Virtualization  SAN Volume Controller 4.3  Diligent data de-duplication solution  VMware server virtualization services  POWER VM New Offering: Rear Door Heat Exchanger Enhancements  Leverage innovative cooling solutions to lower airflow requirements New Offering: Energy Management  Tivoli Monitoring for Green Energy & Active Energy Management Software  Tivoli Maximo Enterprise Asset Management  Optim Data Growth Solution for Siebel v2.6  solidDB 6.1 Cache for DB2 and IDS  New partner community New Services and Solutions: Build or upgrade to an energy efficient data center  IBM Data Center Family TM  Enterprise Modular Data Center  Portable Modular Data Center  High Density Zone  Mainframe z10  AEM and z/VM  POWER 520/550 Express  POWER 570/575/595  Modular 3850 M2  iDataPlex  DS8000

6. © 2008 IBM Corporation June 10, 2008 6 Data centers are at a tipping point, driven by energy costs and usage Increased Compute Demand  Server growth 6x, Storage growth 69x this decade 1  By 2011, blades will represent 26% of all server shipments 2 Changing cost dynamics  Data centers energy use doubling every 5 years 3  New data center construction costs are increasing - $30 to $50M for a 20K square foot data center  Operating costs = 3x capital costs over 20 years Data center lifecycle mismatch  78% of data centers are > 7 years old 4  Technology densities are growing 20x this decade 5  33% of managers expect data centers to last 30 years 6 Meet Business & IT Growth Reduce capital and operating costs for data centers Reduce risk by providing more available and predictable data center operations 1.IBM and Consultant Studies 2.IDC Worldwide Blade Server 2008-2011 Forecast, February 2008, IDC #210229 3.Koomey, February 2007. 4. Gartner Survey Suggests Extensive Data center Expansion plans on the Horizon, G00154962, mike Chuba, February 200 5. ASHRAE (find source) 6. IDC The datacenter evolution: Technologies, Designs, People and Green, Michele Bailey, 2008

7. © 2008 IBM Corporation June 10, 2008 7 IBM’s global experience in data center design More than 100 implementations of custom and standardized design in the past 2-3 years

8. © 2008 IBM Corporation June 10, 2008 8 Data centers will have to grow 16x in 20 years if energy usage continues to double every 5 years. A new approach is needed.

9. © 2008 IBM Corporation June 10, 2008 9 Energy consuming physical infrastructure accounts for 60% of the capital costs to build a new data center Need to optimize on energy costs rather than floor space, which is less than 10% of the cost

10. © 2008 IBM Corporation June 10, 2008 10 Energy costs are 50% of the facilities lifetime operational costs Operating costs are 3x the capital costs, highlighting the need to focus on energy efficiency

11. © 2008 IBM Corporation June 10, 2008 11 IBM’s Data Center Family provides a comprehensive set of capabilities to address your issues today  Turnkey data center for 500-2,500 sq ft  Rapid deployment in 8-12 weeks  20% less cost than traditional data centers  15-30% improved energy efficiency  Standardized design in 5K modules up to 20K  Level 3+ design for availability  Leadership energy efficiency – 66% DCiE  25% faster deployment than custom approach  Open architecture involving market leading vendors  Fully functional data center with multi-vendor support  Portable - easy to relocate  Targeted for temporary and remote data centers  Rapidly deploy in 12-14 weeks  Level 3 design; Leadership energy efficiency: 77% DCiE  “Plug and play” infrastructure to support high density servers in existing data centers  Non-disruptive implementation  35% lower cost than retrofitting an existing data center Scalable modular data center Enterprise modular data center Portable modular data center High density zone

12. © 2008 IBM Corporation June 10, 2008 12 Enterprise Modular Data Center allows for flexibility in capital and operational costs to address unpredictable IT requirements  Defer up to 40% capital costs until capacity required  Defer up to 50% operational costs as capacity is required  50% energy savings compared to existing data center Align capital and operational cost to IT needs  5-10% upfront investment enables 3x density growth  Up to 12x power and cooling capacity growth Meet unpredictable business and IT growth  Provide expansion without downtime to operations  Improve facilities management through standardized operating environment Provide available and predictable operations Growth Design to an “open architecture”  Components from industry leading vendors  Provides opportunities for OEM innovation ChillerGenerator M/E 2x 3x Up to 4x Horizontal Vertical

13. © 2008 IBM Corporation June 10, 2008 13 GTS Server Consolidation and Virtualization Service Significant savings from x86 to mainframe implementations  Cost savings: Based on IBM’s experience*, the following represents the typical savings that organizations may realize: Hardware costs reduced 33-70 % Maintenance costs reduced up to 50 % Support costs reduced by as much as 33 % Floor space and facility costs reduced 33-50 %  Servers account for 50-75% of the data center’s total floor space  Server sprawl is a challenge, resulting in high maintenance and support costs  Server utilization only 5-15% on average Before Consolidation/Virtualization  Servers typically account for only 20-50% of the data center’s total floor space  Consolidation ratios from 6:1 to 20:1  Typical TCO savings from 30-70%  Server utilization rates up to 80% After Consolidation/Virtualization  IBM GTS can help clients... Realize ROI in as little as six months Reduce TCO by 30 percent to 70 percent Increase server utilization rates of up to 80 percent—in contrast to the more typical 5 percent to 15 percent Realize consolidation ratios ranging from 8:1 to 30:1 Lower power and cooling costs by 10% to 30% * Results will vary widely based on several factors including # of servers and work load types.

14. © 2008 IBM Corporation June 10, 2008 14 VMware Server Virtualization Services Help Clients Build a Solid Foundation for Optimized x86 Environments Description: IBM Server Optimization and Integration Services – VMware server virtualization can help clients build a solid foundation to an x86- processor based environment. Potential benefits:  Reduce hardware requirements by a 6:1 ratio or better  Reduce hardware and operating costs by as much as 50% and time to provision new servers by up to 70%  Reduce energy costs by 10-40%.  Save more than $3,000 per year for every server workload virtualized Source: IBM Analysis, 2008

15. © 2008 IBM Corporation June 10, 2008 15 Enhanced Storage Virtualization  TS7530 Tape Virtualization New configuration and added functionality to existing and new TS7500 virtualization customers Curb storage growth in data centers to “go green”  SAN Volume Controller 4.3 New Space-Efficient Virtual Disk ('thin provisioning') and Space-Efficient FlashCopy ('snapshot') functions New Virtual Disk Mirroring contribute to making data centers more "green" IBM has shipped over 12,000 SVC engines running in more than 4,000 SVC systems worldwide  Case studies show that an environment that appropriately blends in the use of tape for archiving and retention can reduce storage energy costs by as much as 10X  Deduplication case studies show energy costs reductions, for the required physical storage capacity requirements, reduced by 25x Energy Efficiency and Storage

16. © 2008 IBM Corporation June 10, 2008 16 Introducing Tivoli Monitoring for Green Energy Now all your IT compute data plus all your facilities metrics in one spot  Visualize the power consumption and thermal signatures of data center resources  Alert operators and facility managers before servers reach critical energy and temperature thresholds  Automate and control server energy usage to optimal levels, including triggers to third-party partners

17. © 2008 IBM Corporation June 10, 2008 17  Optimize the energy utilization of assets and extend asset life based on energy utilization via Tivoli Maximo Enterprise Asset Management  Visualize thermal dynamics of the data center and identify problem areas  Alert source for facility and DC “operators” of upcoming energy problems  Enable workflows that allow role-based automation of asset lifecycles Introducing Tivoli Maximo Enterprise Asset Management Spatial Optimize assets by your energy usage

18. © 2008 IBM Corporation June 10, 2008 18 Tivoli Green Management (Monitor, Measure and Manage) IT Assets 3 rd Party Servers and Storage Tivoli Software IBM ® Systems Director and Active Energy Manager Facility Infrastructure Assets Data Center Infrastructure Assets New IBM Tivoli Monitoring Green Energy Adapters New IBM Tivoli Asset Management spatial visualization NEW: Broad base of Partners Enable Data Center and Facility Energy Management

19. © 2008 IBM Corporation June 10, 2008 19 IBM Service Management’s Green Data Center Using green data to accelerate infrastructure value to your business services Intelligent Chargeback Green Business Services Optimize Assets by Energy Usage NEW! Tivoli Monitoring For Green Energy Energy Aware Provisioning

20. © 2008 IBM Corporation June 10, 2008 20 Enabling a Holistic Approach to Green Agendas Helps set, achieve, measure and verify green goals Infrastructure Service Management Workloads People Facilities Systems and DC equipment

21. © 2008 IBM Corporation June 10, 2008 21 For more information  IBM Project Big Green Analyst Briefing – Part 2: Beyond the Data Center – Enabling Green Agendas Monday, June 16, 11:30 a.m. - 12:15 p.m. EDT (16:30 - 17:15 UK, 17:30 - 18:15 CEST) To enroll, reply to Silvia Galgano at sgalgano@us.ibm.com or call 1-914-765-6183  About our technology partners and our collaboration APC analyst briefing, webcast and teleconference Monday, June 23, 11 a.m. - 12 p.m. EDT Contact: Lori Giuttari, lori.giuttari@apcc.com 401-789-5735, ext. 3660lori.giuttari@apcc.com

22. © 2008 IBM Corporation June 10, 2008 22 IT Industry Analyst Briefing Part 1 – June 10, 2008 Project Big Green II Expanding the Scope Steven Sams and Chris O’Connor

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