Cloud Computing and System z

IBM Cloud Computing and System z

Robert LeblancSenior Vice President, Middleware Solutions

2© 2011 International Business Machines Corporation2

Smarter Computing: System z Analyst Summit

Key Takeaways …

IBM has been in the Cloud Business for over 45 yearsBeginning with Mainframe Virtualization, IBM has been innovating on the technology underpinnings of Cloud

IBM zEnterprise is the industry’s only heterogeneous cloud solutionCombines cloud characteristics with System z’s leading capabilities for efficiency, manageability, scalability, and security

IBM Cloud Computing on System z is transforming the business Better qualities of service, advanced workload optimization, and efficient resource consolidation



• Recognized as cloud computing leader by analysts

• 11 Cloud Labs worldwide

• 200 IBM researchers working on Cloud security and privacy

Virtualized Standardized Automated

End to end capabilities

Public Hybrid Private

IBM’s continued leadership in Cloud is helping clients create and deliver value in new ways

• Collaborative business process design

• Real time analytics

• Collaborative business process design

• Real time analytics

• Pre-configured workload patterns

• Dynamic provisioning and scheduling

• Pre-configured workload patterns

• Dynamic provisioning and scheduling

• Automated Service Provisioning & Management

• Security across data centers

• Dynamic elasticity

• Automated Service Provisioning & Management

• Security across data centers

• Dynamic elasticity

Business Services

Platform

Infrastructure

ManagedServices

Implementation and

ConsultingServices

Client Engagements

• 2k successful cloud engagements in 2010

• 50% of Fortune 10 and Fortune 50 working with IBM on private clouds

• 80% of Fortune 500 companies using IBM cloud capabilities

• Managing >1M virtual machines worldwide

• 19M SaaS users

Continuing Leadership



1964April 7:IBM introduces the System/360 as a “new generation of electronic computing equipment”

1971 /1972

IBM delivers more than 1,300 System/370 computers worldwide and announces VM virtualization

1994 IBM Announces the System/390 Parallel Sysplex offering

2001 Winnebago Industries helps establish Linux on the mainframe as ideal mainframe applications

2006 IBM unveils the System z9 Enterprise Class and Business Class machines featuring zAAP, IFL and zIIP specialty engines

2010

IBM has been innovating in the underpinnings of cloud computing for over 45 years

IBM introduces the zEnterprise System – consisting of the world’s fastest and most scalable system, and integrating heterogeneous platforms, to run multi-architecture workloads.

Broad Network Access

Resource Pooling

ClusteringHigh Availability

ConsolidationRapid

Elasticity

Multi-ArchitectureWorkloads



Rapid ElasticityA new dimension of Scale. Most efficient platform for Large-scale Linux consolidation

Broad Network AccessVery large number of end user access from multiple sources including mobile devices

On Demand Self-ServiceAutomate provisioning and service requests reducing provisioning cycles from weeks to minutes

IBM zEnterprise provides a new dimension in Cloud Computing

Unified management for a smarter system:IBM zEnterprise

Unified Resource Manager (zManager)

The world’s fastest and most scalable system:

IBM zEnterprise™ 196 (z196)

Scale out to a trillion instructions per second:

IBM zEnterprise BladeCenter®

Extension (zBX)

Measured ServiceMeter, monitor, and track workloads for chargebacks and capacity expectations

Resource Pooling1000s of virtualized systems across a heterogeneous resource pool



Advanced Workload Optimization Workload optimized placementand integrated management onelastic, scalable infrastructure

IBM zEnterprise and Cloud provides better ….

Efficient Consolidation Large scale consolidation and virtualization to maximize efficiencyof shared resources

Better Qualities of Service

Advanced WorkloadOptimization

Business Services

Platform

Infrastructure

Efficient Consolidation

Better Qualities of ServiceHigher levels of security and availability of services



Scale resources to support different types of workloads

with Linux IFL

Scale resources to support different types of workloads

with Linux IFL

Use less power and floor spaceUse less power and floor space

Consolidate more servers, networks, applications, and data

on a singe Linux and z/VM

Consolidate more servers, networks, applications, and data

on a singe Linux and z/VM

IBM zEnterprise provides large-scale consolidation and virtualization to maximize server utilization

Do more with less

Do more with less

Achieve savings on a greater

scale

Achieve savings on a greater

scale

Manage Growth and ComplexityManage Growth and Complexity

Consolidated dual site IT infrastructure with 2 IBM System z10 EC servers– cut Java workloads by 15% per year

Consolidated dual site IT infrastructure with 2 IBM System z10 EC servers– cut Java workloads by 15% per year

Cut electricity costs by 60% and floor space requirements by 50%

Cut electricity costs by 60% and floor space requirements by 50%

Up to 60% more capacity and up to 33% lower prices for Linux IFL Hardware environments

Up to 60% more capacity and up to 33% lower prices for Linux IFL Hardware environments



• US$15 million cost savings anticipated over three years

• 85-90% server utilization

• 80% reduction in environmental costs

• Web hosting costs lowered by 50 percent

• Migrated to z10 in 45, upgrading hundreds of virtual servers, with 0 application breakage

Nationwide consolidates and virtualizes with Linux on IBM System z

Business Problem: With server proliferation, limited floor space, high cooling and electricity costs, and lengthy server provisioning times, Nationwide was faced with a need to build a multi-million dollar data center

Solution:• Nationwide made a strategic decision to move to a flexible, virtualized IT environment.

• Running hundreds of virtual servers on two IBM System z10 Enterprise class machines

• Virtual server images are deployed in minutes after a request is submitted using Linux on z/VM

• Services are monitored and managed

• Applications move from zLinux to AIX back to zLinux depending on requirements

Infrastructure



C onsolidation on System z

$0.0

$0.5

$1.0

$1.5

$2.0

New X86 z10 z196

Mill

ions

HW m aintHWSW S&SSW OTC

Lower acquisition costs of hardware and software vs distributed servers– 74% less than Nethalem*

Less than $335 per year per virtual server (TCA)*Reduce floor space by up to 90% compared to distributed servers*Reduce labor costs by up to 70% compared to distributed servers*

Linux on z196 is the Most Efficient Platform for Large-scale consolidation

74% less thanNehalem

39% less than Nehalem

* Distributed server comparison is based on IBM cost modeling of Linux on zEnterprise vs. alternative distributed servers. Given there are multiple factors in this analysis such as utilization rates, application type, local pricing, etc., savings may vary by user.

New x86 z10 z196

Consolidate 40 Oracle server cores onto 2 Linux cores on zEnterpConsolidate 40 Oracle server cores onto 2 Linux cores on zEnterprise rise

Drive IT Efficiency



• Lead time for server provisioning reduced to 99%

• IT deploys new Linux Virtual Servers for test and dev within 20 mins

• Not a single incidence of unplanned downtime or underperformance

• With Linux on IBM System z, BCBSM can achieve near-continuous availability by reducing the need for planned downtime

Clients like Blue Cross Blue Shield of Minnesota are leveraging Cloud on System z today

Business Problem: The Microsoft Windows and Intel processor-based server landscape at Blue Cross and Blue Shield of Minnesota (BCBSM) was inflexible and costly to operate and maintain.

“Even without factoring in the maintenance and support costs—which would be considerable for a large estate of physical servers—we found that running a virtualized Linux environment on System z would be somewhere between 30 and 50 percent less expensive than a distributed architecture.”

— Ted Mansk, Director of Infrastructure Engineering and Databases at BCBSM

Solution:• IBM consolidated 140 HP Intel-architecture servers to a single IBM System z with six Integrated Facility for Linux (IFL) engines.

• Key applications now run in SUSE Linux Enterprise virtual servers, while IBM DB2 databases run on z/OS on the same physical machine



Integrated Service Management on IBM zEnterprise provides automated services to various user groups while equipping IT with visibility and control over these services

On average, 81% of cloud payback is driven by savings enabled by service management

VISIBILITY CONTROL AUTOMATION

One integrated policy for managing service availability and data protection

One integrated service management engine to manage your entire data center

One integrated workflow to optimize service delivery



IBM Tivoli Service Automation ManagerSupports Linux and z/VM

Service SubscriptionRequest a service“Sign“ contract

Offer ServiceRegister services and resourcesAdd to service catalog

Service CreationScope of serviceSLAsTopologies, best practices management templates

Deploy ServiceRequest-driven provisioningManagement agents and best practicesApplication / service on boardingSelf-service interface

Manage Service OperationVisualize all aggregated information about situations and affected servicesControl operations and changesEvent handlingAutomate activities to execute changesInclude charge-back

Service TerminationControlled clean-up

IBM Tivoli Service Automation Manager, a key component of ISM, supports Service Lifecycle Management of Cloud workloads on IBM zEnterprise



Unified Resource Manager simplifies workload management across multiple application environments

Hypervisors Energy

Networks VirtualServers

Operations Performance

Gain significant time to market with reduced deployment times

Reduce labor costs by 70%

Reduce development costs by 20%

Reduce network complexity by 98% when compared with distributed data center distributed data center

Reduce energy costs by 80%

Reduce floor space by 90%

80x performance increase over distributed systems

60% faster performance per core over z10

Manage 10x the number of VMs than VMWare

Manage up to 100K virtual servers



z/OS z/OS z/VM z/VM

BusinessApps

DataServing

LinuxVirtualServers

LinuxVirtualServers

Shared Everything Infrastructure(CPU, Memory, Network, Adapters, Crypto, Devices)

• Scales up … over 52,000 MIPS in a single footprint

• Scales out … 80 configurable cores

• Scales within … specialty engines, cryptographic processors, hypervisors

• Perfect fit for large scale consolidation supporting up to 50 distributed servers on a single core

• 60% more Linux workloads at a 35% lower price delivering a virtual Linux server for under $1 / day

IBM zEnterprise196 is the fastest, most scalable enterprise server for Cloud Computing supporting optimized workloads

Business Services



vv

v v500 Intel Nehalem Servers(8 cores each, non-virtualized)

228 Intel Nehalem Servers usingVMware(8 cores each)

875 Intel Xeon Servers using VMware(8 cores each)

Let’s look at a typical deployment environment in a large Data Center10,000 Workloads require…

500 heavy workloads

2,500 heavy I/O workloads

7,000 light workloads

Platform

7zBX racks for x blades

9zBX racks forPower blades

5zEnterprise 196s

Best fit assignments

1603 Virtualized Intel Servers vs…

Optimized workloads for improved scalability



• E-Commerce sales are up 17% for 1H

• In November 2010, JD Williams experienced its heaviest 2 day online shopping experience with no performance degradation

• Reduced MIPs by 20% due to shift in workloads to assist processors

JD Williams improves shopping experience and sees revenue gain by efficiently managing different workloads

Business Problem: JD Williams needed provide a better shopping experience, making changes to various websites without interruption. They also needed fast delivery of different workloads including images and videos to sustain and drive online shopping growth.

Solution:• JD Williams is using z196 for image and video serving.

• System was optimized to handle Linux, Java, WebSphere, and Cognos workloads

• Starting with 4 zAAPs, 1 zIIP, 4 IFLs with flexibility to add more specialty processors later

• Simplified back up and recovery on 1 server



SecurityExtending System z Security to

a Private network across heterogeneous resources

Virtualization1000s of virtualized systems across a heterogeneous resource pool

ScalabilityA new dimension of scaleInfrastructure capable of a Trillion Instructions per second

Efficiency1/4 network, 1/25th floor space, 1/20 energy, 1/5 administration

AvailabilityResiliency management

and fewer points of failure

IBM zEnterprise provides cross-platform Quality of Service for Cloud Applications

Up to 70% insecurity audit savings

Up to 52% lower security admin costs

Fewer points of breach than pure UNIX or x86



• Serve more than 69,000 users across 6,800 companies ·

• Provides higher levels of uptime for their customers

• Offers peace of mind through 24x7 world-class hardware support

• “We intend to deliver a 99.9% application uptime guarantee to our customer base, thanks to the availability characteristics of System z”

Transzap delivering strong business continuity, security and cost efficiencies

Business Problem:As a small business with tens of billions of dollars in client transactions flowing through their systems each year, Transzap needed an economical, reliable platform to provide clients with high availability and security to their SaaS application while enabling the capacity to accommodate growth within their software as a service business model.

Solution:• Transzap consolidated on an IBM System z platform to provide the stability and scalability needed to accommodate triple digit volume growth.

• Transzap migrated to System z and virtualized its critical applications on Linux®on System z, a platform that supports Transzap's environments.

“We have to be able to look our customer in the eye and assure him or her that our quality of service will be as good or better than the quality of service that can be provided to the organization from their own IT infrastructure”

--- Peter Flanagan, CEO of Transzap, Inc



Higher Utilization• Up to 100% CPU utilization• “Shared everything” architecture• Host thousands of mixed workloads

More Efficient Data Center• Less power and cooling• Less floor space• Fewer parts to manage

Increased Productivity• Efficient, rapid provisioning• Superior workload management • Fewer parts to manage

Greater Reliability, Availability• Built-in hardware redundancy• Decades of RAS innovation• Capacity and Backup on Demand

The difference between those that say “Mainframe”, and those that say “Cloud”, is the year they were born!

IBM zEnterprise is designed to handle heterogeneous architectures driving significant benefits



Thank you!ibm.com/smartercomputing



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The customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer.

Information concerning non-IBM products was obtained from a supplier of these products, published announcement material, or other publicly available sources and does not constitute an endorsement of such products by IBM. Sources for non-IBM list prices and performance numbers are taken from publicly available information, including vendor announcements and vendor worldwide homepages. IBM has not tested these products and cannot confirm the accuracy of performance, capability, or any other claims related to non-IBM products. Questions on the capability of non-IBM products should be addressed to the supplier of those products.

All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.

Some information addresses anticipated future capabilities. Such information is not intended as a definitive statement of a commitment to specific levels of performance, function or delivery schedules with respect to any future products. Such commitments are only made in IBM product announcements. The information is presented here to communicate IBM's current investment and development activities as a good faith effort to help with our customers' future planning.

Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance 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 or performance improvements equivalent to the ratios stated here.

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Cloud Computing and System z

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