© 2008 IBM CorporationThis document is for IBM and IBM Business Partner use only. It is not intended for customer distribution or use with customers.

PowerVM and Management Edition for AIX

Erin BurkeVirtualization Offering ManagerIBM Power Systems

2 © 2008 IBM CorporationThis document is for IBM and IBM Business Partner use only. It is not intended for customer distribution or use with customers.

Agenda

PowerVM™ Launch

PowerVM Edition Enhancements (formerly APV)– PowerVM Express Edition

– PowerVM Lx86 support (formerly System p™ AVE)

Management Edition for AIX®

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Power™ Systems launches IBM PowerVMPower™ Systems launches IBM PowerVM

Virtualization OpportunityVirtualization Revenue $1.8B by 2010* Virtualization Vendors

Unifies Power Systems Virtualization Technologies

Consistent naming with other IBM products (i.e. z/VM®)

Generates awareness of IBM’s Leadership Virtualization Technologies

VMWare

HP

Sun

Microsoft®

Oracle

$0.0

$0.5

$1.0

$1.5

$2.0

2006 2007 2008 2009 2010

Worldwide Virtual Machine Software Revenue by Year

Revenue (US$B)

Source: IDC Market Analysis “Worldwide Virtual Machine Software 2006-2010 Forecast”, IDC #203213, September 2006

SWSoft

Citrix

VirtualLogicVirtual Iron

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PowerVM

Unify virtualization branding & technology for AIX, Linux and i5/OS

Exploit 40 years of IBM virtualization leadership

Position as scalable, mission-critical alternative to VMWare

The ENERGY of SIX: the leading virtualization platform for UNIX®, Linux® and i5/OS® customers

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IBM develops hypervisor that would become VM on the mainframe

IBM announces first machines to do physical partitioning

IBM announces LPAR on the mainframe

IBM announces LPAR on POWER™

19671967 19731973 19871987

IBM intro’s POWER Hypervisor ™ for System p and System i™

IBM announces PowerVM

200720072004200419991999

client quote source: Brakes India case study published at http://www.ibm.com/software/success/cssdb.nsf/CS/STRD-76DHWE?OpenDocument&Site=eserverpseries&cty=en_us

“[PowerVM] ensures that we are making the best possible use of hardware resources across our entire environment.”

- T N Rangarajan, VP of IT, Brakes India August 2007

20082008

IBM announces POWER6™, the first UNIX servers with Live Partition Mobility

IBM’s History of Virtualization LeadershipA 40 year tradition culminates with PowerVM

6 © 2008 IBM CorporationThis document is for IBM and IBM Business Partner use only. It is not intended for customer distribution or use with customers.

What is PowerVM?

PowerVM is the new umbrella branding term for Power Systems Virtualization (Logical Partitioning, Micro-Partitioning, POWER Hypervisor, Virtual I/O Server, etc.)

Micro-Partitioning

Subsystems

Workload Partitions

Live Application Mobility

PowerVM Editions feature

Micro-Partitioning™

Virtual I/O Server

Integrated Virtualization Manager

Live Partition Mobility

Lx86 (formerly System p AVE)

Logical Partitioning

Hardware and software that delivers industry-leading virtualization on IBM POWER processor-based processors for UNIX, Linux and i5/OS customers

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PowerVM Naming

Before AfterPower Systems Virtualization PowerVMAdvanced POWER Virtualization (APV) PowerVM Editions

PowerVM Express EditionAPV Standard Edition PowerVM Standard EditionAPV Enterprise Edition PowerVM Enterprise Edition

System p Application Virtual Environment (p AVE)

PowerVM Lx86

Live Partition Mobility PowerVM Live Partition MobilityAIX 6 Workload Partitions Manager™ PowerVM AIX 6 Workload Partitions

ManagerAIX 6 Workload Partitions PowerVM AIX 6 Workload Partitions

NOT EXHAUSTIVE

PowerVM = Power Systems Virtualization. PowerVM Editions = APV

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Announcing IBM PowerVMThe leading virtualization platform for UNIX, Linux and i5/OS clients

Go Green & SavePotentially cut energy costs by up to 65%1 through server consolidation

Manage Growth, Complexity & RiskReduce server sprawl and administration costs while improving availability and application performance2

Realize InnovationPotentially reduce operational costs by up to 72%3 and put your savings into new business opportunities

[1] Based on IBM Study. The virtualized system count and energy savings were derived from several factors: A performance factor of 2.79X was applied to the virtualization scenario based on SPEC® results source: www.spec.org. System p 570 (16-core, 8 chips, 2 cores per chip, 4.7 GHz) SPECint_rate2006: 466, as of 8/20/2007; HP Integrity rx7640 (16-core, 8 chips, 2 chips per core, 1.6 GHz) SPECint_rate2006: 167 as of 8/20/2007. A virtualization factor of 3X was applied to the virtualization scenario using utilizations derived from studies conducted by Alinean available at http://www-935.ibm.com/services/us/cio/optimize/opt_wp_ibm_systemp.pdf. A factor of 2X was used to represent the ability to install two 16-core System p 570 systems in a single rack. Power consumption figures of 5600 W for the IBM System p570 and 2128 W for the HP rx7640 were based on the maximum rates published by IBM and HP, respectively. The HP document with the rx7640 power requirement is “QuickSpecs HP Integrity rx7640 Server” dated August, 2007. I t can be found at http://h18000.www1.hp.com/products/quickspecs/12470_div/12470_div.pdf. Air conditioning power requirement estimated at 50% of system power requirement. Energy cost of $.0928 per kWh is based on 2007 YTD US Average Retail price to commercial customers per US DOE at http://www.eia.doe.gov/cneaf/electricity/epm/table5_6_b.html as of 8/20/2007. Datacenter floor space cost was estimated as of 8/20/2007 based on Alinean, Inc.’s ROI Analyst software. The reduction in floor space, power, cooling and software costs depends on the specific customer, environment, application requirements, and the consolidation potential. Actual numbers of virtualized systems supported will depend on workload levels for each replaced system.[2] Numerous case studies for clients who have achieved these results are available at http://www.ibm.com/software/success/cssdb.nsf/advancedsearchVW?SearchView&Query=(Virtualization)+AND+[WebSiteProfileListTX]=eserverpseries&site=eserverpseries&frompage=ts&Start=1&Count=30&cty=en_us [3] “Impact of IBM System p Server Virtualization,” Transforming the IT Value Equation with POWER6 Architecture. International Technology Group, 05/2007. Study methodology: Companies in financial services, manufacturing and retail with $15 Billion+ revenues focusing on UNIX® large enterprise environments with multiple, broad-ranging applications. Study compared the cost of the company's workloads running on multiple vendor servers and employing minimal virtualization to the cost of the company's workloads running on System p 570 (POWER6 processor-based) as well as POWER5+ processor-based servers - all using Advanced POWER Virtualization [APV]. APV is standard on System p5 590 and 595. Other System p servers have the option to add APV except the System p5 185. This cost analysis was performed for financial services, manufacturing and retail example environments with an overall average savings of up to 72% in TCO savings by virtualizing and consolidating on the System p servers. Total Cost of Ownership may not be reduced in each consolidation case. TCO depends on the specific client environment, the existing environments and staff, and the consolidation potential.

9 © 2008 IBM CorporationThis document is for IBM and IBM Business Partner use only. It is not intended for customer distribution or use with customers.

PowerVM Editions

Express Standard Enterprise

Servers Supported p520, p550

JS21, JS22,System p,System i

JS22 System i*, System p*

Maximum LPARs 3 / Server 10 / Core 10 / CoreManagement IVM IVM, HMC IVM, HMCVirtual I/O Server

Lx86

Shared Dedicated Capacity (POWER6 & JS22)Multiple Shared Processor Pools

System i*,System p*

System i*,System p*

Live Partition Mobility

PowerVM Editions

Delivering Advanced Virtualization for UNIX, Linux and i5/OS clients

What’s New?

Try out virtualization with the low-cost PowerVM Express Edition

Run x86 Linux applications on POWER with Lx86

VIOS support for i5/OS V6R1

Multiple Shared Processor Pools are supported by POWER6 and HMC managed environmentsLive Partition Mobility works with AIX V5.3 and above and Linux on POWER* POWER6 processor-based servers only

10 © 2008 IBM CorporationThis document is for IBM and IBM Business Partner use only. It is not intended for customer distribution or use with customers.

PowerVM Express EditionTry out PowerVM for only $40 / Core!*

Create up to three partitions on the IBM p520 or p550

Run x86 Linux applications on POWER

Easily partition and dynamically move resources with the click of a button

Point and click upgrade to PowerVM Standard or Enterprise Edition

NEW!NEW!

*US prices are current as of 1/29/08 and subject to change without notice. Manufacturer’s suggested retail price, dealer prices may vary.

11 © 2008 IBM CorporationThis document is for IBM and IBM Business Partner use only. It is not intended for customer distribution or use with customers.

Run most existing 32-bit x86 Linux applications1 with no application changes

Included with the purchase of PowerVM Editions Operating

systemcall mapping

Dynamic binary

translation

x86 Linux Applications

Linux on POWER

(1) PowerVM Lx86 (formerly System p Application Virtual Environment or System p AVE) runs most x86 Linux applications, but System p AVE cannot run applications that:Directly access hardware (for example, 3D graphics adapters); Require nonstandard kernel module access or use kernel modules not provided by the Linux on POWER operating system distribution; Do not use only the Intel IA-32 instruction set architecture as defined by the 1997 Intel Architecture Software Developer's Manual consisting of Basic Architecture (Order Number 243190), Instruction Set Reference Manual (Order Number 243191) and the System Programming Guide (Order Number 243192) ll dated 1997; Are Linux/x86 specific system administration or configuration tools; Require x86 real-mode.Visit ibm.com/systems/p/linux/qual.html for detailed qualifications.

PowerVM Lx86Run x86 Linux applications on Power Systems

12 © 2008 IBM CorporationThis document is for IBM and IBM Business Partner use only. It is not intended for customer distribution or use with customers.

Upgrade Paths for PowerVM Editions

PowerVM Express Edition

PowerVM Standard Edition

PowerVM Enterprise Edition

Upgrade Pricing

Special bid upgrade for license and SWMA (delta in prices)

Clean license upgrade in plan for April*

Upgrade Installation

No disruption to environment

No software to install

Enter Hypervisor key to unlock function

* All IBM statements of direction represent goals and objectives only. Plans subject to change without notice.

Painless upgrades with the click of a button

13 © 2008 IBM CorporationThis document is for IBM and IBM Business Partner use only. It is not intended for customer distribution or use with customers.

Deliverable Content

PowerVM Book of 100 Customer References

Looking for virtualization customer references? Check them all out in one .pdf

PowerVM TCO Tool (Alinean) Simple, Web-based client ROI Power Systems virtualization tool. Will be posted on external Website

Competitive Sales Presentation Highlights competitive advantages of PowerVM

Coming soon on System Sales and PartnerInfo!

Sales Enablement OfferingsNew tools designed to help you sell

14 © 2008 IBM CorporationThis document is for IBM and IBM Business Partner use only. It is not intended for customer distribution or use with customers.

Management Edition for AIX

15 © 2008 IBM CorporationThis document is for IBM and IBM Business Partner use only. It is not intended for customer distribution or use with customers.

Why Management Edition for AIX?A bundled solution to address exploding systems management costs

Spending(US$B)

$0

$50

$100

$150

$200

$250

$300

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Installed Base(M Units)

Spending(US$B)

New server spendingServer mgmt and admin costs x4Power and cooling costs x8

0

5

10

15

20

25

30

35

40

45

50

0

5

10

15

20

25

30

35

40

45

50

Source: IDC, Virtualization 2.0: The Next Phase in Customer Adoption, Doc #204904, Dec 2006

16 © 2008 IBM CorporationThis document is for IBM and IBM Business Partner use only. It is not intended for customer distribution or use with customers.

What is Management Edition for AIX?

Tivoli® Application Dependency Discovery Manager

Discovers the System p COMPONENTS in a Data Center Environment

CENTRALIZES and VISUALIZES the CONFIGURATION of the components

Discovers the RELATIONSHIP ofthe System p components

DISCOVERS AND TRACKS THEConfiguration CHANGES

IBM Tivoli MonitoringMONITORS the HEALTH and AVAILABILITY of the System p virtualized environment

– support for CECs, LPARs, VIOS and HMCs

Historical DATA COLLECTION for improved TROUBLESHOOTING, capacity planning & service level reporting

Out-of-the-box REPORTING provides the ability to identify resource BOTTLENECKS

IBM Usage and Accounting Mgr - Virtualization Edition for System p

Provides the ability to MEASURE, ANALYZE and REPORT system UTILIZATION on System p virtualized servers Helps gather the data needed to determine the cost of an IT service or applicationHelps to justify IT resource and expenses

Tivoli Enterprise Portal

A single integrated systems management interface for discovery, monitoring, and usage accounting

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New System p PID (5765-AME) created and sold by System p rep/BP via AASGAs on February 29 with support for AIX V5.3.7

SOD issued for support of AIX V6.1 by 5/29Priced on a “per processor” basisIncludes one year no-charge SWMA

System p rep/BP gets sales commission credit for shipments on new serversOnly System p rep/BP can sell ME for AIX on new server shipmentsSystem p install base is available to the Tivoli sales rep/BP

Tivoli Sales SupportKey Contacts

WW Tivoli Sales Enablement Peter Greulich/Austin/IBMWW Tivoli Technical Sales Enablement Scott Drummond/San Jose/IBMWW Tivoli System p Relationship Mgr Bill Casey/Austin/IBM

Sales / Marketing ToolsME for AIX Best Practices “Red Paper” – available by 2/29ME for AIX Client Presentation – available on 1/29ME for AIX Demo – available by 2/29ME for AIX Webcast – available by 2/7ME for AIX Quick Start Service Offering – available by 2/29

How do I Sell Management Edition for AIX?It’s a PID in AAS. Yes, it counts towards your quota

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ME for AIX Service Offering

Offering Name IBM QuickStart Services for Management Edition for AIX

Description This Services Offering will help you achieve your System p management objectives quickly, understand IBM ME for AIX and realize rapid time to value by deploying the product in a pre- production environment. This proven approach, using best practices, is a jump start for your staff to gain the skills needed to move to the next phase of deployment.

• Basic limited ITM 6.2 environment with base O/S monitoring for System p servers• Discover components with an lTADDM Domain Server• Collect and process AIX usage and accounting information with ITUAM

Duration 10 days

Offerings Collateral

Marketing FlyerSOW TemplatePerform Guide

Sales Contacts For information regarding purchase of Tivoli Services, please contact your regional representative:http://www-306.ibm.com/software/tivoli/services/consulting/contacts.html

Offerings Contact

For information regarding Tivoli Services offerings, please contact:Urs Schwarzenbach

Additional Resources

Services Offerings on external website: http://www.ibm.com/software/tivoli/services/consultingEducation Offerings on external website: http://www.ibm.com/software/tivoli/education

Clients new to Tivoli? Consider a service offering

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Summary

PowerVM is the new umbrella name for Power Systems Virtualization. It includes elements such as micropartitioning, logical partitioning, Virtual I/O, hypervisor, etc.

PowerVM Editions is the new name for Advanced POWER Virtualization

PowerVM Lx86 is the new name for System p AVE. It is included with all versions of PowerVM Editions

PowerVM Express Edition is a starter version of PowerVM that includes support for up to three partitions per server and shared I/O. It is available on p520 and p550

Management Edition for AIX is a bundled Tivoli offering available in AAS and customized for management of IBM System p

20 © 2008 IBM CorporationThis document is for IBM and IBM Business Partner use only. It is not intended for customer distribution or use with customers.

Revised January 9, 2003

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This document was developed for IBM offerings in the United States as of the date of publication. IBM may not make these offerings available in other countries, and the information is subject to change without notice. Consult your local IBM business contact for information on the IBM offerings available in your area.Information in this document concerning non-IBM products was obtained from the suppliers of these products or other public sources. Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products.IBM may have patents or pending patent applications covering subject matter in this document. The furnishing of this document does not give you any license to these patents. Send license inquires, in writing, to IBM Director of Licensing, IBM Corporation, New Castle Drive, Armonk, NY 10504-1785 USA. All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. The information contained in this document has not been submitted to any formal IBM test and is provided "AS IS" with no warranties or guarantees either expressed or implied.All examples cited or described in this document are presented as illustrations of the manner in which some IBM products can be used and the results that may be achieved. Actual environmental costs and performance characteristics will vary depending on individual client configurations and conditions.IBM Global Financing offerings are provided through IBM Credit Corporation in the United States and other IBM subsidiaries and divisions worldwide to qualified commercial and government clients. Rates are based on a client's credit rating, financing terms, offering type, equipment type and options, and may vary by country. Other restrictions may apply. Rates and offerings are subject to change, extension or withdrawal without notice.IBM is not responsible for printing errors in this document that result in pricing or information inaccuracies.All prices shown are IBM's United States suggested list prices and are subject to change without notice; reseller prices may vary.IBM hardware products are manufactured from new parts, or new and serviceable used parts. Regardless, our warranty terms apply.Any performance data contained in this document was determined in a controlled environment. Actual results may vary significantly and are dependent on many factors including system hardware configuration and software design and configuration. Some measurements quoted in this document may have been made on development-level systems. There is no guarantee these measurements will be the same on generally- available systems. Some measurements quoted in this document may have been estimated through extrapolation. Users of this document should verify the applicable data for their specific environment.

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Special Notices

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Special Notices (Cont.)