1. © 2010 IBM Corporation zEnterprise and System z Software Graham Spittle - Chief Technology Officer and Vice President, Software Group Europe July 22, 2010

2. © 2010 IBM Corporation Smarter Systems for a Smarter Planet 2 Trademarks Notes: Performance is in Internal Throughput Rate (ITR) ratio based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput that any user will experience will vary depending upon considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve throughput improvements equivalent to the performance ratios stated here. IBM hardware products are manufactured from new parts, or new and serviceable used parts. Regardless, our warranty terms apply. All customer examples cited or described in this presentation are presented as illustrations of the manner in which some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions. This publication was produced in the United States. IBM may not offer the products, services or features discussed in this document in other countries, and the information may be subject to change without notice. Consult your local IBM business contact for information on the product or services available in your area. All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. Information about non-IBM products is obtained from the manufacturers of those products or their published announcements. IBM has not tested those products and cannot confirm the performance, compatibility, or any other claims related to non-IBM products. Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products. Prices subject to change without notice. Contact your IBM representative or Business Partner for the most current pricing in your geography. * Registered trademarks of IBM Corporation The following are trademarks or registered trademarks of other companies. * All other products may be trademarks or registered trademarks of their respective companies. Adobe, the Adobe logo, PostScript, and the PostScript logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States, and/or other countries. Cell Broadband Engine is a trademark of Sony Computer Entertainment, Inc. in the United States, other countries, or both and is used under license there from. Java and all Java-based trademarks are trademarks of Sun Microsystems, Inc. in the United States, other countries, or both. Microsoft, Windows, Windows NT, and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries, or both. InfiniBand is a trademark and service mark of the InfiniBand Trade Association. Intel, Intel logo, Intel Inside, Intel Inside logo, Intel Centrino, Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, Itanium, and Pentium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. UNIX is a registered trademark of The Open Group in the United States and other countries. Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both. ITIL is a registered trademark, and a registered community trademark of the Office of Government Commerce, and is registered in the U.S. Patent and Trademark Office. IT Infrastructure Library is a registered trademark of the Central Computer and Telecommunications Agency, which is now part of the Office of Government Commerce. The following are trademarks of the International Business Machines Corporation in the United States and/or other countries. IBM* IBM (logo)* ibm.com* AIX* CICS* Cognos* DataPower* DB2* Domino* FICON* Filenet* IMS InfoSphere Lotus* NetView* OMEGAMON* Optim POWER* RACF* Rational* System z* System z10 Tivoli* WebSphere* zEnterprise z/OS* z/VM*

3. © 2010 IBM Corporation Smarter Systems for a Smarter Planet 3 Something meaningful is happening in the world The digital and physical infrastructures of the world are converging, and we are infusing intelligence into the way the world works. Smarter Systems require … … Smarter Software … Smarter Hardware © 2010 IBM Corporation

4. Smarter Systems for a Smarter Planet 4 System z software exploits the strengths of zEnterprise Continue to expand the System z ecosystem, as of 1H 2010:  1,650 unique ISVs have enabled more than 6,300 applications on the System z platform  4,000 applications are enabled on z/OS ®  3,000+ Linux applications are supported on System z 150 new and enhanced IBM software products since IBM Systemz10™ Capitalize on Traditional IBM System z ® Strengths  Batch and Transaction processing, Messaging, Quality of Service, Data Serving  Optimize to the evolving System z Hardware design point Extend Value Proposition to New and Mixed Workloads  Systematic re-engineering of the software stack  Integrate with Modern Application Development Environments  Deliver extensive Data Management services  Leverage the wave of workload consolidation; Linux ® on System z  Simplify System z – make it easier to install and manage for better TCO Deliver Value through IBM Software  SOA for reuse of Web services  Unified application development  Cross platform resource and service management  Advanced integrated business analytics © 2010 IBM Corporation

5. Smarter Systems for a Smarter Planet 5 Expanding System z software to enable innovation and growth  Continued investment to optimize key software for z/OS environment  Advanced business intelligence solutions leveraging blade and memory processors  Integrated service management for operational effectiveness  Unified development tool set for multi-platform environments  Continued compiler optimizations exploiting the latest technology  Optimized security and compliance capabilities  Expanded integration of Linux on System z with collaborative tools 80%30%46% cut in CICS administration time performance improvement with new C/C++ Compiler less time to complete z/OS maintenance tasks when using RDz vs. ISPF Up to 5

6. © 2010 IBM Corporation Smarter Systems for a Smarter Planet 6 Improve business performance with insights from real-time analysis  Integrated, high performance analytics solution that off-loads analytic queries to an optimizer engine with data compression and in-memory, columnar processing –Quickly and cost effectively capitalize on analytics across the enterprise  New statistical predictive modeling and development tools for Linux on System z –Avoid fraudulent activity and increase insights to optimize decisions  DB2 ® 10 Beta innovations deliver improved performance and reduced CPU use e.g., 10x concurrent users, Direct row access, and Time travel queries –Deliver faster results and reduce costs NEW! Smart Analytics System 9600 NEW! Smart Analytics Optimizer NEW! SPSS Predictive Analytics for System z BETA! DB2 10 BETA! InfoSphere ™ MDM Server 9 for z/OS BETA! Cognos ® 8 BI for z/OS PLUS InfoSphere, Filenet ®, and Optim ™ software © 2010 IBM Corporation

7. Smarter Systems for a Smarter Planet 7 Drive enterprise operations effectiveness and efficiency through Integrated Service Management  New offering extends full transaction visibility across z/OS, Linux and AIX ® blades –Identify performance issues, diagnose root cause from industry unique single user interface  Introducing new solution that provides full usage visibility –Featuring high speed scanning of SMF records and custom application tagging captures detailed inventory and usage information  Extreme virtualization enabled by IBM zEnterprise ™ and structured management –Unique capabilities to automate workload scheduling and availability policies in sequence with knowledge of dependencies across heterogeneous applications and workloads  Virtualization, standardization and automation (cloud) NEW! Tivoli ® Application Management for z Enterprise NEW! Tivoli Asset and Financial Management for z Enterprise NEW! Tivoli Application Resilience for z Enterprise Tivoli Business Service Manager Tivoli OMEGAMON ® Family

8. © 2010 IBM Corporation Smarter Systems for a Smarter Planet 8 zEnterprise Unified Resource Manager ● Workload-based resource allocation & provisioning for zEnterprise ● Physical & Virtual Resource Management ● Goal Oriented Management of zEnterprise resources (Availability, Performance, Energy, Security) ● Faster transaction processing with reduced network latency ● Operational Controls for Hardware/Firmware ● Service & Support for Hardware/Firmware ● Hardware configuration management Tivoli & Integrated Service Management Visibility, Control and Automation for Applications, Transactions, Databases, all Datacenter Resources  Integrated Operational Dashboards to monitor and manage service impacting events  Key Performance Indicators (KPI) applied to Business Services for impact analysis  Heterogeneous data in ONE  Business Service Modeling for planning  Contextual Correlation to reduce Mean time to repair (MTTR)  Establish and automate service level agreement (SLA) tracking Extending zEnterprise Unified Resource Manager with Integrated Service Management Hypervisors Energy Networks Performance Virtual Servers Operations

9. © 2010 IBM Corporation Smarter Systems for a Smarter Planet 9 Simplify multi-platform application development and deployment NEW! Rational ® Developer for System z Unit Test NEW! z/OS XL C/C++ NEW! Enterprise PL/I for z/OS NEW! Eclipse EGL Development Tools project Rational Team Concert for System z and POWER ® Rational Developer for System z and POWER Rational Asset Analyzer IBM Rational Enterprise Modernization solutions  Multi-platform development and team collaboration for zEnterprise through an integrated and collaborative software delivery platform –Improve developer productivity, team efficiency, skills transfer and speed delivery of traditional and modern workloads across all zEnterprise operating environments  New rapid development and testing of z/OS applications with RDz UT, offering a more affordable development and test environment on x86 Linux –Frees up development MIPS for production capacity  New zEnterprise compilers speed application performance by exploiting new zEnterprise hardware instructions with C/C++ and PL/I compilers –Faster performance for new and existing applications

10. © 2010 IBM Corporation Smarter Systems for a Smarter Planet 10 Separate tools for each platform Eclipse-based IDE with modern GUI for application development CICS and IMS ™ development across platforms Platform dependent tools Multi-platform tools z/OS Linux AIX z/VM ®  Liberate developers to rapidly prototype new applications  Develop and test System z applications anywhere, anytime  Free up mainframe development MIPS for production capacity  Eliminate costly delays by reducing dependencies on operations staff z/OS z/VM AIX Linux Multi-platform Development and Deployment on zEnterprise Easily extending workloads across all platforms

11. © 2010 IBM Corporation Smarter Systems for a Smarter Planet 11 Increase business agility for better business outcomes NEW! CICS Transaction Server Feature Pack for Dynamic Scripting NEW! CICS Deployment Assistance for z/OS ENHANCED! WebSphere ® Business Monitor for z/OS NEW! IMS 11, IMS Enterprise Suite 1.1 SOA Connectivity and Integration, ILOG BRMS, WebSphere Application Server, DataPower ® Appliances  New deployment assistant for z/OS offers comprehensive reporting and improved change management control facilities for CICS –Optimizes cost of ownership of the System z platform  Extending innovative application development to System z with dynamic scripting including PHP, AJAX, REST and other Web 2.0 technologies –Increases productivity of CICS and IMS ™ Application and System developers  Business activity monitoring with user-friendly and customizable dashboards now including events native to the mainframe platform –Improves business performance with real-time insights  Fast integration and simplified access to transactions and data using standard Java, XML, and Web service technologies –Extends the use of IMS to Java and Web 2.0 applications Cut development times for CICS application to days vs. weeks

12. © 2010 IBM Corporation Smarter Systems for a Smarter Planet 12 Manage risk, security, and compliance  New capability to report and analyze security events associated with Linux on System z so enterprises can now consolidate and integrate their audit and compliance reporting to include new OMEGAMON, TKLM, Linux on System z and other security relevant events –Allows enterprises to prioritize vulnerabilities and remediate threats by providing a closed loop integration within the security management products  New capability to easily enroll and manage federated user access for zEnterprise and Linux on System z so external users can exploit self-service capabilities to enroll federated userids and utilize RACF ® identities to securely access the mainframe services –Improves visibility with complaint access and reduces help desk support for federated users and services deployments NEW! Tivoli Security for zEnterprise NEW! Tivoli zSecure Manager for RACF z/VM NEW! Tivoli Federated Identity Manager for z/OS Tivoli Security Management for z/OS, Tivoli zSecure suite Tivoli Identity and Access Assurance

13. © 2010 IBM Corporation Smarter Systems for a Smarter Planet 13 Empower people, boost productivity and collaborate  End-to-end Enterprise Content Management (ECM) integration in Team Places with enterprise grade reliability on Linux on zEnterprise –Work with managed and accessible business content for faster project completion  ECM management providing imaging, digital asset management, Web content management and content integration on a multi-tier architecture –Meet regulatory compliance requirements  24x7 presence, chat and online meetings supported on Linux on zEnterprise – Reduce costs and speed decision-making with real-time collaboration  Expanded support of client platforms and mobile devices –Empower distributed teams and mobile employees with a unified communications and collaboration platform NEW! Lotus ® Quickr 8.5 for WebSphere Portal NEW! Lotus Sametime 8.5.1* Lotus Connections, Lotus Notes ® and Domino ®, WebSphere Portal Other ECM solutions - IBM FileNet and IBM Content Manager solutions Connect and scale 150K+ employees, customers, and partners worldwide 24x7 * Planned capability. IBM plans are subject to change

14. © 2010 IBM Corporation Smarter Systems for a Smarter Planet 14 Comprehensive IBM Software leveraging the strengths of zEnterprise Strong information management platform built for business workloads Visibility, control, security, and automation from System z across your business Application infrastructure, connectivity and dynamic business processes Application Development Tools and Software Delivery Platform Productivity and Collaboration DB2, IMS, FileNet, InfoSphere Warehouse, InfoSphere MDM Server, Cognos, SPSS, Optim IBM Service Management on System z, TSAM, System Automation and NetView ® for z/OS, TWSz, OMEGAMON WAS, CICS, BPM, WMQ, ESB, DataPower, ILOG, Lombardi Compilers (C/C++, PL/I, COBOL), RDz, RTCz Portal, Connections, Notes Domino, Sametime  NEW! Smart Analytics System 9600  NEW! Smart Analytics Optimizer  NEW! SPSS Predictive Analytics for System z  NEW! IMS 11, IMS Enterprise Suite 1.1  BETA! DB2 10  BETA! InfoSphere MDM Server 9 for z/OS  BETA! Cognos 8 BI for z/OS  NEW! Tivoli Security for zEnterprise  NEW! Tivoli Access Manager Family  NEW! Tivoli zSecure Manager for RACF z/VM  NEW! Tivoli Application Management for zEnterprise  NEW! Tivoli Application Resilience for zEnterprise  NEW! Tivoli Asset and Financial Management for zEnterprise  NEW! WebSphere Application Server Feature Pack for Dynamic Scripting  NEW! CICS Deployment Assistance for z/OS  ENHANCED! Business Monitor for z/OS  NEW! Rational Developer for System z Unit Test  NEW! z/OS XL C/C++  NEW! Enterprise PL/I for z/OS  NEW! Eclipse EGL Development Tools project  NEW! Lotus Quickr 8.5 for WebSphere Portal  NEW! Lotus Sametime 8.5.1 © 2010 IBM Corporation IBM Software

15. © 2010 IBM Corporation Smarter Systems for a Smarter Planet 15 IBM System z Software Seamlessly integrated with zEnterprise for optimal cost savings and performance  Scales without complexity and delivers business process aligned infrastructure in a heterogeneous environment  Provides real-time advance analytics  Unifies multiplatform development and team collaboration to work as a single, integrated service delivery platform  Exploits the advantages of integrated service management  Extends the value of Linux on System z with collaborative tools We are delivering a new generation of integrated hardware and software © 2010 IBM Corporation