© 2014 ibm corporation ibm confidential – this material is for educational purpose only and is...

© 2014 IBM CorporationIBM Confidential – This material is for educational purpose only and is NOT customer ready. Please get final/announced version of this presentation from the Sales Kit before presenting to customers.

© 2015 IBM Corporation 1



Embargoed until Wed, Jan. 14

Spolier Alert

The next few charts will be wordy and will mean that you have to read text, sorry I could not draw pretty

pictures to tell this story…




Hidden Costs of Cloud Computing…

From a management perspective, the top cloud computing concerns are:

1.Poor end user experience due to performance bottlenecks (64 percent).

2.The impact of poor performance on brand perception and customer loyalty (51 percent).

3.Loss of revenue due to poor availability, performance, or troubleshooting cloud services (44 percent).

4.Increased costs of resolving problems in a more complex environment (35 percent).

5.Increased effort required to manage vendors and service level agreements (23 percent).

http://www.compuware.com/content/dam/compuware/apm/assets/whitepapers/WPCostofCloud.pdf




The rise of cloud insurance… Data is not covered by standard property insurance policies

Downtime is not covered by standard business interruption insurance

Most cyber crime attacks are not covered by standard property or crime insurance policies

Third party data is valuable and you can be held liable if you lose it

Retailers face severe penalties if they lose credit card data

Complying with breach notification laws costs time and money

Your reputation is your number one asset, so why not insure it?

Social media usage is at an all-time high and claims are on the rise

Portable devices increases the risk of a loss or theft

It’s not just big businesses being targeted by hackers, but lots of small ones too…

http://www.mspalliance.com/wp/wp-content/uploads/2008/11/Cyber10Reasons.pdf

http://www.forbes.com/sites/reuvencohen/2013/04/24/new-cloud-computing-insurance-trys-to-solve-cloud-liability-concerns-for-service-providers/




Cost of Data Breach…

On average the cost of a data breach for an organization represented in the study increased from $5.4 million to $5.9 million.

The cost per record increased from $188 to $201. We define a record as information that identifies an individual whose information has been compromised in a data breach.

More customers terminated their relationship with the company that had a data breach.

The average abnormal churn rate between 2013 and 2014 increased 15 percent.

http://public.dhe.ibm.com/common/ssi/ecm/en/sel03017usen/SEL03017USEN.PDF




AWS Terms and Conditions…Monthly Uptime Percentage” is calculated by subtracting from 100% the percentage of minutes during the month in which Amazon EC2 or Amazon EBS, as applicable, was in the state of “Region Unavailable.” Monthly Uptime Percentage measurements exclude downtime resulting directly or indirectly from any Amazon EC2 SLA Exclusion (defined below).

“Region Unavailable” and “Region Unavailability” mean that more than one Availability Zone in which you are running an instance, within the same Region, is “Unavailable” to you.

“Unavailable” and “Unavailability” mean:For Amazon EC2, when all of your running instances have no external connectivity.For Amazon EBS, when all of your attached volumes perform zero read write IO, with pending IO in the queue. A “Service Credit” is a dollar credit, calculated as set forth below, that we may credit back to an eligible account.

Service Commitments and Service CreditsService Credits are calculated as a percentage of the total charges paid by you (excluding one-time payments such as upfront payments made for Reserved Instances) for either Amazon EC2 or Amazon EBS (whichever was Unavailable, or both if both were Unavailable) in the Region affected for the monthly billing cycle in which the Region Unavailability occurred in accordance with the schedule below.

Monthly Uptime Percentage Service Credit PercentageLess than 99.95% but equal to or greater than 99.0% 10%Less than 99.0% 30%




Providing QoS in a multi-tenant worldProviding QoS in a multi-tenant world

Handling Usage PeaksHandling Usage Peaks

Offering differentiated services to drive profitsOffering differentiated services to drive profits

Switching CAPEX to OPEXSwitching CAPEX to OPEX

Low Server UtilizationLow Server Utilization

Secure Access to Data for Mobile WorkforceSecure Access to Data for Mobile Workforce

Delays in Rolling out New ServicesDelays in Rolling out New Services

Dev Ops and Agile but with Service

Dev Ops and Agile but with Service

Application DowntimeApplication Downtime

Power / Space ConstraintsPower / Space Constraints

Move from Service Credit to Service…Move from Service Credit to Service…

What issues are Clients and MSP/CSP’s trying to solve…

Noisy NeighboursNoisy Neighbours




Hybrid Cloud Private Cloud Public Cloud

Up to 10 TB Memory on z13Improves consolidation ratios

SMT2 technology on z13Improves performance and

throughput of workloads

GDPS for Linux on z SystemsDisaster Recovery solution for

mission-critical workloads

KVM New industry-standard

hypervisor (SOD)

Increase in # of LPARs on z13Improves TCO and QoS

Cloud Manager w/ OpenStack V4.2Heterogeneous platform management

from System z

Elastic Storage for Linux on System zEnables new class of workloads

z13 Capabilities



Performance delivered through multiple dimensions• 40% more total capacity

• 2X performance boost for cryptographic coprocessors

• 2X increase in channel speed

• 2X increase in I/O bandwidth

• 3X increase in memory

• 2X increase in cache

• Lower cloud cost

• Faster decision making with data-in-memory

• Faster data sharing between systems

• Less exposure to regulatory penalties

• Faster fraud detection

• More scale for mobile transactions

Hardware/ software

integration leads to richer optimization




85LPARs

Enterprise Grade Linux

GDPS Virtual Appliance*

IBM zAware

Unprecedented Linux Performance

10TB Memory

Exploitation of SMT

Enabling Open Source Services

Open DB, Tooling, and Management Support

IBM GPFS

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

2x Faster I/O


Z13 the platform for Enterprise Grade Linux

*



Up to 141 cores on a CPC

Up to 27 cores for offload

system processing

Plus up to 640 POWER cores:

I/O and Coprocessors

Balanced System DesignI/O and coprocessors bring added compute power to workloads

• Share up to 141 processors with up to 85 LPARS

• Configure the processors as CPs, IFLs, zIIPs, or ICFs

24 SAPs2 Spares1 IFP




Customer ChallengeDiversity leads to costManual processTime to deploy

Customer ChallengeOperating in Silo’sNo central point of controlLow server utilization

Customer ChallengeShorter test cyclesReduced provisioning timeReduced license management

IBM WaveSingle point of managementSimple user interfaceSpeed of deployment

Cloud Manager for OpenStackOpen standards supportWorks with existing toolsConsistent delivery model

IBM Cloud OrchestratorEnd-to-end process managementWorkload level deploymentPublic/Private Cloud management

VIRTUALIZATIONVIRTUALIZATION

AUTOMATIONAUTOMATION

STANDARDIZATION STANDARDIZATION

SELF SERVICESELF SERVICE

WORKLOAD PATTERN

DEPLOYMENT

WORKLOAD PATTERN

DEPLOYMENT

IBM tools for every stage of the cloud journey



z13: Redesigned for Efficient and Trusted Cloud

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

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

Up to 8,000 virtual servers per

system, more than 50 per core

Open virtualization with new

KVM support (SOD)*

z13 brings faster processing and higher throughput of secure

transactions (2X more throughput on crypto coprocessor)

Business continuity and IT

analytics with enterprise grade Linux solution

Open support extended with OpenStack, PostgreSQL, Node.JS, and KVM (SOD)

Enterprise-grade Linux provides the foundation for public, private, and hybrid cloud

Patterns for Linux on z Systems to quickly build out complex cloud workload instances

Improved overall system performance leads to a lower TCO compared to public cloud deployments and deployments on x86 architectures

Enabling next generation cloud applications with IBM Bluemix on z Systems





Mainframes account for 68%

of production workloads, but only 6% of IT

spend

68 for 6 32 and 60

Superior cloud services at up to 32% lower cost

than x86 and up to 60% less than

public cloud alternatives

35 and 3x

Mainframe organizations

demonstrate an average of 35% lower IT Cost of Goods; and computational growth

roughly 3x more economically efficient

Z13 TCO by the numbers…




Z13 TCO by the numbers…

$17.6M (3yr TCO)

$10.3M (3yr TCO)

$7.0M (3yr TCO)

PublicCloud

Cloud on z(z13)

Private Cloud(x86)

219instances

32IFLs

264x86 cores

32% less than x86 cloud60% less than public cloud

Performance comparison based on IBM Internal tests comparing IBM z13 cloud with one comparably configured private x86 cloud and one comparably configured public cloud running an aggregation of light, medium and heavy workloads designed to replicate typical IBM customer workload usage in the marketplace. System configurations are based on equivalence ratios derived from IBM internal studies and are as follows: Public Cloud configuration: total of 219 instances (128 for light workloads, 64 for medium workloads and 27 for heavy workloads); x86 Cloud configuration: total of eleven x86 systems each with 24 Intel E7-8857 v2 3.0GHz cores, 512GB memory, and 7x400GB SSDs; z13 Cloud configuration: total of 32 IFLs, 3806GB memory, and Storwize v7000 with 47x400GB SSDs. Price comparison estimates based on a 3YR Total Cost of Ownership (TCO) using publicly available U.S. prices (including a 20% discount for middleware) current as of January 1, 2015. Public Cloud TCO estimate includes costs (US East Region) of infrastructure (instances, data out, storage, support, free tier/reserved tier discounts), middleware and labor. z13 and x86 TCO estimates include costs of infrastructure (system, memory, storage, virtualization, OS, cloud management), middleware, power, floor space and labor. Results may vary based on actual workloads, system configurations, customer applications, queries and other variables in a production environment and may produce different results. Users of this document should verify the applicable data for their specific environment.

123 workloads(219 VMs)

32 MediumWorkloads(64 VMs)

27 Heavy I/OWorkloads(27 VMs)

64 Light Workloads(128 VMs)




Cloud on z13 gives the lowest cost

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

Public Cloud x86 Cloud Cloud on z13

Case Study: 123 Workloads (219 VMs)

Labor, Power &SpaceMiddleware

Infrastructure

System configurations are based on equivalence ratios derived from IBM internal studies. Prices used are published US prices as of 1/1/2015 for both IBM and competitors. Public cloud case includes costs of infrastructure (instances, data out, storage, support, free tier/reserved tier discounts), middleware and labor. z13 and x86

cases include costs of infrastructure (system, memory, storage, virtualization, OS, cloud mgmt), middleware, power, floor space and labor..




Cloud Type

PublicMulti-tenant environment

where compute resources are purchased in desired

increments

PrivateInternally owned, deployed

and controlled compute resources

HybridUses a mix of private,

dedicated IT resources in conjunction with public

infrastructure

IBM z SystemsIBM z Systems

Linux on System z and z/OS as the

foundation of the most secure,

scalable private cloud infrastructure

Linux on System z and z/OS as the

foundation of the most secure,

scalable private cloud infrastructure

Enabling MSPs/CSPs to deliver differentiated

mainframe-based service offerings

Enabling MSPs/CSPs to deliver differentiated

mainframe-based service offerings

Leveraging BlueMix and interoperability with SoftLayer, AWS

and other public cloud offerings

Leveraging BlueMix and interoperability with SoftLayer, AWS

and other public cloud offerings

Linux on System z and z/OS as the foundation

of the most secure, scalable private cloud

infrastructure

Linux on System z and z/OS as the foundation

of the most secure, scalable private cloud

infrastructure

z13 the perfect platform for public, private and hybrid…



zEC12, zBC12 and z13 compute in any config

Standard Linux Environment• Red Hat/SUSE

• 3000+ Applications

IBM Deployment Expertise done in the factory with on-site personalisation

Factory Integrated Factory Integrated Delivered in ½ time of other Delivered in ½ time of other Integrated Systems*Integrated Systems*Pre-tested, pre-configured..Pre-tested, pre-configured..

Scale up to 8000 VMsScale up to 8000 VMsIndustry Leading AvailabilityIndustry Leading AvailabilityEAL 5 securityEAL 5 security

Fully Automated Cloud Orchestration &

Monitoring

• 18

Storwize V7000 or DS8870 in any config

Cloud OrchestratorOmegamon for z/VMTSMOperations ManagerBackup ManagerIBM Wave

Enterprise Cloud System…




Enterprise Cloud System

Converged Infrastructure-as-a-Service solution, providing a highly available, secure, cloud platform based on System z technology

Pre-configured and integrated system – Includes Processor, Disk, Hypervisor, Cloud

Management Software and Services

– Pre-installed cloud management software that leverages open source such OpenStack and Linux to deliver orchestration, provisioning and monitoring

– Integration performed at IBM’s Customized Solution Center and onsite by STG Lab-Based Services

Flexible configurations– No fixed sizes - flexibility on hardware configurations

allow customers to choose the right amount of resources for their workload

– Sample configurations will be provided to Sales Team as guidance and comparison

Memory

IFLs

I/O and Network

LinuxGuests

LinuxGuests

LinuxGuests

Virtualization Management

LPARLPAR LPARLPAR LPARLPAR

LinuxGuests

LPARLPAR




What is included in Enterprise Cloud SystemStorageEnterprise Linux Server

Software

Services

Z SystemsBC12

Z SystemsBC12

oror

z/VM with following priced features:- Directory Maintenance - Resource Access Control Facility- Performance Toolkit- Single System Image

IBM Wave for z/VM OMEGAMON XE on z/VM and Linux Tivoli Storage Manager Extended Edition Cloud Manager with OpenStack Operations Manager for z/VM Backup and Restore Manager for z/VM RHEL or SLES Linux for System z

z/VM with following priced features:- Directory Maintenance - Resource Access Control Facility- Performance Toolkit- Single System Image

IBM Wave for z/VM OMEGAMON XE on z/VM and Linux Tivoli Storage Manager Extended Edition Cloud Manager with OpenStack Operations Manager for z/VM Backup and Restore Manager for z/VM RHEL or SLES Linux for System z

DS8870DS8870

oror

z SystemsEC12

z SystemsEC12

Integration Services - Performed by WW Customized Solutions

Center in Poughkeepsie, NY- Will integrate server and storage devices and

pre-install software prior to shipment to the customer

On-Site Personalization Services- Performed by STG Lab Based Services to

complete SW installation and personalize Enterprise Cloud System for the customer

Integration Services - Performed by WW Customized Solutions

Center in Poughkeepsie, NY- Will integrate server and storage devices and

pre-install software prior to shipment to the customer

On-Site Personalization Services- Performed by STG Lab Based Services to

complete SW installation and personalize Enterprise Cloud System for the customer

Storwize V7000

Storwize V7000

oror

Z Systemsz13

Z Systemsz13




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ありがとうございます Japanese 谢谢

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AVB…

© 2014 ibm corporation ibm confidential – this material is for educational purpose only and is...

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