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© 2010 IBM Corporation Smarter Systems for a Smarter Planet Moving to the Fast Lane with Workload Optimize Systems Ng Choon Yean Technical Solutions Architect

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© 2010 IBM Corporation

Smarter Systems for a Smarter Planet

Moving to the Fast Lane with Workload

Optimize Systems

Ng Choon Yean

Technical Solutions Architect

© 2010 IBM Corporation

IBM Software for Smarter Systems

2

Digital data is projected to grow tenfold by 2011

Global trading systems are under extreme

stress, handling billions of market data

messages each day

of CIO’s want to improve the way they use and

manage their data

Of digital data growth

will be “unstructured”

and requires significant

effort to “understand”

and analyze

Explosion of

information driving

54% growth in

storage shipments

every year

70% on average is spent

on maintaining current IT

infrastructures versus

adding new capabilities

80%

1.5x70¢ per $1

10xDevices will be

connected to the

internet by 2011

1 trillionGlobal internet traffic volume

expected by 2013

500,000,000GB

25 billion 78%

An explosion of information and the increasing velocity of business create new challenges.

The Way the World Works is Changing. Today’s IT Infrastructure Needs to Evolve to Meet New Needs…

2

© 2010 IBM Corporation

IBM Software for Smarter Systems

3

General PurposeSystems

Hybrid

Throughput-Optimized Systems

SOAInfrastructure

XMLData

Next-genUI

RichMedia

UnstructuredData

SecureComputing

Event-basedSystems

Real-timeAnalytics

SensorInfrastructure

Scale-outInfrastructure

� Emerging applications will require substantial improvements in system characteristics

Handle the increasing volume and velocity of data.

Uncover deep insights hidden across diverse information sources.

Quickly process the rapidly growing number of transactions and interactions.

Workloads that will enable them to

New application requirements are driving future systems

Enterprises Are Facing Increasingly Complex—and Vastly Different— Workloads.

3

© 2010 IBM Corporation

IBM Software for Smarter Systems

4

IBM understands the breadth and complexity of workloads facing enterprises today and we know that there are many pieces to the puzzle—from reliability to speed to scalability and security.

We also understand that a single approach to systems can’t satisfy the specific workload demands of every organization.

The solution lies in optimization

We have to make systems smarter

4

© 2010 IBM Corporation

IBM Software for Smarter Systems

5

� Integrated hardware, software and services

� Optimized for a specific workload

� Proven success in client engagements across multiple industries

� Improved client business execution with better performance and optimized analytic tools

� Lower cost with integrated design and testing, consolidation of workloads, and scalability choices

� Confidence and trust in the technology, services, and relationship

To Meet the Unique Needs of Every Organization, IBM Provides Built-for-Purpose Workload Systems...

5

© 2010 IBM Corporation

IBM Software for Smarter Systems

6

IBM understands that integrated, workload-optimized systems are critical to your enterprise. That’s why we’ve been developing and delivering them for 60 years.

1950’s–1960’s

TPF: Airline Reservation System

S/360: First Binary Compatible computer family

IMS: Transaction & Database System

1990s

IMS, CICS, and DB2 Parallel Sysplex: High-scale Application and Data Serving

DFSMS: Autonomic Storage Management

S/390 PR/SM: Logical Partitioning

“Deep Blue”: Grand Champion level chess

1970’s–1980’s

System 38 and AS/400:Integrated Application and Data Serving

S/370: Online Transaction Processing

MVS/XA + MVS/ESA: Data in Memory

VM/370: Premier Virtual Machine

DB2: Premier Database Server

Early 2000’s

Datapower: (XML & Web services appliance)

SAN Volume Controller:

(Virtualized Storage Management)

“Shark”: (Enterprise Storage Management)

WebSphere Edge Server: (High-scale Web App Serving)

OS/390 WLM: Simplifying Service Level Agreements

Linux for S/390: Highly Scalable and Available Open Platform

BladeCenter & Scaleable EXA

2008

Cognos Now!: Operational BI

2010

IBM Information Archive: Information Lifecycle

Management

IBM SONAS: Tiered Storage

Watson: Jeopardy Challenge

Power 7

2009

Lotus Foundations: Office productivity tools and Services

IBM Smart Analytics System: Business Intelligence

and Data Warehousing

IBM Cloudburst: Cloud Computing Deployment

and Management

DB2 pureScale on PowerHA: Scalable Database Management

Guardium: Database Security Management

In Workload Systems, IBM is the Partner to Trust…

6

© 2010 IBM Corporation

IBM Software for Smarter Systems

7

IBM fully refreshed systems product line in 2010

February March July October zEnterprise

Highly virtualized, inherently resilient, secure environment and industry’s first multi-architecture platform

Power Systems

Deep integration and optimization at every level for 5X performance and 7X energy efficiency with Power7

System x

System level innovation for x86 computing through 5th generation of Enterprise X-Architecture

System Storage

Extensive block, file and tape capabilities for smart movement and management of data

© 2010 IBM Corporation

IBM Software for Smarter Systems

8

1Q09

+102

2Q09

+245

3Q09

+233

4Q09

+289

1Q10

+288

2Q10

+397

3Q10

+393

+4,500take-outs

since 2006

� More than 4,500 competitive displacements to IBM servers and storage since establishing Migration Factory in 2006

� Vast majority are from Oracle/Sun and HP to IBM, including 532 from Oracle/Sun and 481 from HP so far in 2010

We gained ground with competitive take-outs

© 2010 IBM Corporation

IBM Software for Smarter Systems

9

Expanded our base with significant strength in growth markets

New Workloads New Clients

� 54% mainframe MIPS growth in 3Q10 – highest in six years

� Smart Analytics workload revenue for STG YTD 2010 increased over our first year total, with strongest growth from Power Systems and Storage

� Enterprise-class capabilities of eX5 driving ~50% growth in x86 workload virtualization

� 37 new-to-System z clients so far this year, surpassing all of 2009

� Shipped 3,000th XIV Storage System in September; more than 70% into new accounts

� Nearly 800 migrations to Power Systems YTD 2010, already exceeding FY 2009 total by 200

� Microelectronics OEM up 28% in 3Q10 from networking and wireless communication infrastructure

Growth Markets

� Growth markets have contributed 29% of STG revenue in 2010

� BRIC countries have accounted for 14% of this revenue, growing 27% YTD

� IT infrastructure expansion in banking, telecommunications, transportation and energy in the growth markets grew 25% for STG in 3Q10

© 2010 IBM Corporation

IBM Software for Smarter Systems

10

Strategy reflects major changes in the role of I/T

The explosion of data, transactions and increasing need for real-time analytics and security is driving changes in the way . . .

SYSTEMS

ARE DESIGNED

Vertically integrated and optimized for performance, scale and efficiency

DATA IS MANAGED

AND ANALYZED

Trusted information management capabilities that unlock insight from data regardless of volume, variety and velocity

I/T IS DELIVERED

AND CONSUMED

New delivery models that leverage Integrated Service Management for greater flexibility, time to value and new capabilities

Hybrid

Private/

Internal

Public/Externa

l The Cloud

Off Premises / Third PartyOn Premises / Internal

ManageWorkloads

AutomateProcesses

OptimizeDelivery

Consolidate

Resources

AgilityNetwork

Storage

Server

© 2010 IBM Corporation

IBM Software for Smarter Systems

1111

Virtualization without Limits

� Drive over 90% utilization

� Dynamically scale per demand

Dynamic Energy Optimization

� 70-90% energy cost reduction

� EnergyScale™ technologies

Resiliency without Downtime

� Roadmap to continuous availability

� High availability systems & scaling

Management with Automation

� VMControl to manage virtualization

� Automation to reduce task time

Workload-Optimizing Systems

AIX - the future of UNIX

Total integration with i

Scalable Linux ready for x86 consolidation

Smarter Hardware: Value of Power Systems

+

© 2010 IBM Corporation

IBM Software for Smarter Systems

12

IBM’s Ten-Year March to UNIX LeadershipThe largest shift of customer spending in UNIX history

12

15%

20%

25%

30%

35%

40%

45%

Q20

0Q

300

Q40

0Q

101

Q20

1Q

301

Q40

1Q

102

Q20

2Q

302

Q40

2Q

103

Q20

3Q

303

Q40

3Q

104

Q20

4Q

304

Q40

4Q

105

Q20

5Q

305

Q40

5Q

106

Q20

6Q

306

Q40

6Q

107

Q20

7Q

307

Q40

7Q

108

Q20

8Q

308

Q40

8Q

109

Q20

9Q

309

Q40

9Q

110

Q21

0Q

310

HP Sun/Oracle IBM

Source: IDC Server Tracker, Dec 2010

UNIX Server Rolling Four Quarter Average Revenue Share

POWER6Live Partition Live Partition

MobilityMobilityPOWER5

MicroMicro--PartitioningPartitioning

POWER5Shared Processor PoolsShared Processor Pools

POWER6PowerVMPowerVM Lx86Lx86

dot.combubbleburst

global economic recession

POWER7Shared Storage PoolsShared Storage Pools

POWER6Active Memory Active Memory

SharingSharing

POWER4Dynamic Dynamic LPARsLPARs

© 2010 IBM Corporation

IBM Software for Smarter Systems

13

Power your Planet with IBM POWER7 Systems

Compared to POWER6 Systems, the industry leader, POWER7 has:

POWER7 is …. Breakthrough

performance, virtualization

without limits, intelligence

systems software … all at the

same price

Workload Optimizing Systems

Virtualization without Limits

Resiliency without Downtime

Dynamic Energy Optimization

Management with Automation

Integrated Value

the performance

2xthe energy

efficiency

4xthe price

1xHP Integrity Superdome

64-core systems into a

single IBM Power 780

8 to 1

© 2010 IBM Corporation

IBM Software for Smarter Systems

14

40% better utilizationUp to 40% better system utilization with the latest compilers, exploiting POWER7 architecture

IBM POWER7 and IBM Software Optimization Delivering greater value across the portfolio

DatabaseWeb and

Collaborative Applications

Analytics

Smarter

Systems

20-30% improvementsin application quality and development productivity with Rational software delivery platform4

17K applicationsavailable which support the POWER7 platforms4

73% better performance using a single JVM of WebSphere on POWER7 vs. competitive application server on Nehalem2

40% lower costLotus Domino on POWER7 supporting 40,000 users vs. Microsoft Exchange on Nehalem 3

Up to 40%More efficient through better systems management 5

86% lower costfor DB2 on IBM Power 780 than Oracle on Sun 6

2 IBM CPO Internal Study3 Exchange on Nehalem configuration from HP’s sizing tool. HP Sizer for Microsoft Exchange Server 2010 at

http://h20338.www2.hp.com/ActiveAnswers/us/en/sizers/microsoft-exchange-server-2010.html4 Based on IBM customer study, “Making a Business Case for IBM Rational Developer for i” http://www-949.ibm.com/software/rational/cafe/docs/DOC-33695 As much as 40% improved throughput vs. Power6 for the identify duplicates process One example of performance improvement, TSM 6.2 6 CPO Study - DB2 on POWER7 Delivers The Most Efficient TPC-C Result EVER!7 Based on compiler optimization of POWER7 – results are from internal study using Linpack; System utilization improvement depends on the application and result may

vary

7

© 2010 IBM Corporation

IBM Software for Smarter Systems

15

Optimized System Innovations with Breakthrough Software

� Clients immediately benefit from – Faster time to value

– Better price performance

– Lower total cost of ownership

� Applications benefit from IBM Software on

POWER7– No redesign of application required

– No rewriting of business queries

– Faster calculations with greater precision

– Near-Linear DB2 and WAS scalability

DB2 and WebSphere Application Server automatically exploitsPOWER7 Processor and Systems Architecture

© 2010 IBM Corporation

IBM Software for Smarter Systems

16

Breakthrough IBM Software for Virtualization and Consolidation

IBM Software automatically exploitsPOWER7’s PowerVM Virtualization Software

Clients immediately benefit from• Consolidated workloads and systems in the data center • Reduced power, heat, and people management costs

IBM Software benefits from POWER7• Automatic and Optimized Workload management • Reduction of memory footprint• Exploitation of Active Memory Sharing• End-to-end Application and Resource Management• Enablement of Cloud ready software

© 2010 IBM Corporation

IBM Software for Smarter Systems

17

Data Management: Simplify SAP Infrastructure And Reduce Costs

1

7

SA

P U

sers

Sun T5440SPARC

Power 750 Sun X4640Opteron

Fujitsu 1800ENehalem-EX

Power 780 Sun M9000SPARC

Sun M9000SPARC

• IBM Power 780 certification number not available at press time and can be found at sap.com/benchmark . IBM Power System 780, 8p / 64–c / 256–t, POWER7, 3.8 GHz, 1024 GB memory, 37,000 SD users, dialog resp.: 0.98s, line items/hour: 4,043,670, Dialog steps/hour: 12,131,000, SAPS: 202,180, DB time (dialog/ update):0.013s / 0.031s, CPU utilization: 99%, OS: AIX 6.1, DB2 9.7; All results are 2-tier, SAP EHP 4 for SAP ERP 6.0 (Unicode) and valid as of 4/1/2010.

• Source: http://www.sap.com/solutions/benchmark/sd2tier.epx - See Power 780 benchmark details for more information

37,000SAP users on SAP SD 2 Tier Power 780

with DB2

#1#1

#1#1

Overall

4-socket

4 sockets 8 sockets 32 sockets 64 sockets

0

10,000

20,000

30,000

40,000

© 2010 IBM Corporation

IBM Software for Smarter Systems

18

* This is not an exhaustive list and only intended to provide an overview. You can find more information about SAP on DB2 in SDN.

DB2 Integrated HA DB2 Automatic Maintenance

DB2 Compression Online Table Reorg

SAP on DB2 virtual tables DBA Cockpit

DB2 Database Partitioning Feature DB2 Workload Management

� SAP on DB2 is a fully integrated product

� One-stop support offering

� Aligned maintenance cycles

SAP on DB2 on Power - Key Technology Differentiators

18

© 2010 IBM Corporation

IBM Software for Smarter Systems

19

More SD users on

IBM DB2 and Power 750

than Oracle Database on Sun T5440

SAP and DB2 on Power 750

(1) IBM SAP 2-Tier SD result of 15,600 SD (Sales & Distribution) users (Average dialog response time: 0.98 second), running DB2 9.7 on AIX 6.1 and SAP enhancement package 4 for SAP ERP 6.0 on the IBM Power System 750 with 4 POWER7 3.55 GHz processor chips (32 cores, 128 threads) and 256 GB main memory, certification Number: 2010004. For more details, see http://www.sap.com/benchmark.

(2) Sun Microsystems SAP 2-Tier SD result of 4,720 SD (Sales & Distribution) users (Average dialog response time: 0.97 second), running Oracle 10g on Solaris 10 and SAP enhancement package 4 for SAP ERP 6.0 (Unicode) on the SPARC Enterprise T5440 with 4 UltraSPARC T2 Plus 1.6 GHz processor chips (32 cores, 256 threads) and 256 GB main memory, certification Number: 2009026. For more details, see http://www.sap.com/benchmark.

3.3x

Results as of 4/02/2010

15,600

4,720

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

IBM DB2 on

Power 750

Oracle Database

on Sun T5440

SD

Users(1)

SD Users(2)

32 cores

POWER7

32 cores

UltraSPARC

T2+

SAP Sales and DistributionERP 6.0 EHP4 2-Tier

performance

Core-for-Core, IBM Power and DB2 Run 3.3x More Users

SAP on DB2 on Power – support for more users…

19

© 2010 IBM Corporation

IBM Software for Smarter Systems

20

37,000

32,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

IBM DB2 on

Power 780

Oracle Database

on Sun M9000

The number cores required for

IBM DB2 and Power 780

than Oracle Database on Sun M9000

SAP and DB2 on Power 780

IBM Power 780 certification number not available at press time and can be found at sap.com/benchmark . IBM Power System 780, 8p / 64–c / 256–t, POWER7, 3.8 GHz, 1024 GB memory, 37,000 SD users, dialog resp.: 0.98s, line items/hour: 4,043,670, Dialog steps/hour: 12,131,000, SAPS: 202,180, DB time (dialog/ update):0.013s / 0.031s, CPU utilization: 99%, OS: AIX 6.1, DB2 9.7; SUN M9000, 64p / 256-c / 512–t, 1156 GB memory, 32,000 SD users, SPARC64 VII, 2.88 GHz, Solaris 10, Oracle 10g , cert# 2009046; All results are 2-tier, SAP EHP 4 for SAP ERP 6.0 (Unicode) and valid as of 4/2/2010.

1/4th

SAP Sales and Distribution

ERP 6.0 EHP4 2-Tier performance

Results as of 4/02/2010

SD

Users(1)

SD

Users(2)

64 cores

POWER7

256 cores

SPARC64

VII

Core-for-Core, IBM DB2 and Power Need ¼ the Cores

SAP on DB2 on Power – fewer cores required….

20

© 2010 IBM Corporation

IBM Software for Smarter Systems

21

DB2 on Power Compression Benefits

� Storage Usage – database about 55% to 68% smaller

� CPU Usage - Avg SAP Response time ~ 20% faster

� RAM Usage – Physical database RAM virtually~ 50% larger

� Backup Usage – backup size down upto 85% and backup time reduced upto 65%

� Batch performance – Upto10x faster

21

© 2010 IBM Corporation

IBM Software for Smarter Systems

22

Challenge:

Improve performance, scalability, and efficiency for their SAP environment

Solution:

Tightly integrated IBM hardware and software. Implemented “Easy button”configuration for SAP

Benefits:

� Predicted savings in the next five years of US $750,000

� 40% reduction in database size

� Better performance – up to 65% faster

� Reduced IT staff workload

Solution components:

� DB2

� Power Systems

“By choosing to implement DB2 compression right away, we have reduced the database size by around 40 per cent. This gives us faster backup and reduced storage costs, and makes the SAP technical upgrades easier and quicker.” -Andrew Juarez SAP Lead Basis, Coca Cola Bottling Company Consolidated

Smarter Transactions: Coca Cola Bottling Company Consolidated

22

© 2010 IBM Corporation

IBM Software for Smarter Systems

23

Data Management: DB2 pureScale Scales Efficiently And Transparently

DB2 pureScale characteristics as shown in IBM published results from internal tests

DB2 pureScale

Near Linear Scalability

1

2

3

4

5

6

7

8

9

10

11

12

1 2 3 4 5 6 7 8 9 10 11 12Data Base Nodes in Cluster

Eff

ecti

ve N

od

es

Perfect LinearPerformance

EffectiveNodes

1.98

3.90

7.54

10.33

1.98

3.90

7.54

10.33

Productive Resources

Wasted Resources

Application Transparency

� No application updates necessary

� No extra testing or tuning required

� Self managing clusters

Unlimited Capacity

• Add capacity without interruption

• Pay for capacity only when needed

• Flexible licensing for peak loads

Continuous Availability � Protection from infrastructure outages� Availability for un/planned outages � Node recovery within 15 seconds

© 2010 IBM Corporation

IBM Software for Smarter Systems

24

Application Infrastructure: Simplify Web Facing Application Deployment

Source: IBM CPO internal studies

1 JVM

AIX TL4

64 bit

16 threads

1 JVM

Solaris

64 bit

16 threads

3920Transactions/sec

IBM Power 7508 cores

Sun T51408 cores

570Transactions/sec

IBM WebSphere Application Server 7

Competitive application server

6.8xMore work

© 2010 IBM Corporation

IBM Software for Smarter Systems

25

Connectivity & Integration: Build Message Backbones With Huge Capacity

IBM Message Broker v7

7 Execution Groups

MQ Server 7.0.1

AIX v6.1 64 bit

Microsoft Biztalk 2009

12 Host Instances

SQL Server 2008

MQ Server 7.0.1

Windows 32bit

IBM

Power 750 3.0 GHz

8 cores

MessageWorkload

MessageWorkload 409

Messages/sec

Workload is mix of in/out, routing, transformation, transformation and routing messages

21,808 Messages/sec

Nehalem EP8 cores

53 times faster

Projecting from Power 570 8 cores 4.7GHz toPower 750 8 core 3.0GHz using rPerfs

© 2010 IBM Corporation

IBM Software for Smarter Systems

26

Enterprise Content Management Innovation for POWER7Enterprise Content Management: IBM FileNet and IBM Content Manager

60%lower cost for document

ingestion and retrieval vs

Filenet on POWER5

1 The performance results reported represent test data models and workloads run in an isolated laboratory on specific operating environments and system configurations. Actual performance in real customer environments with production workloads may vary significantly, and will depend on the unique circumstances of each customer's configuration and workload.

ECM for POWER7 delivers maximum performance and help organizations make quick, smart, cost-effective decisions at the moments that matter most

Optimize processes that rely on content to improve efficiency and customer interactionsManage essential content anywhere to reduce IT costs while enabling collaborationEnable knowledge workers with ECM in their favorite desktop clientsStandardize for content access anywhere & deliver trusted content for AppsView NOT print for high volume print output and e-presentment

1

Trusted Content Insights

Advanced Case Management

Information Lifecycle

Governance

Essential

ECM

Automation

Optimization

© 2010 IBM Corporation

IBM Software for Smarter Systems

27

Manage IT and non-IT Assets with Tivoli & POWER7Business Service Management: Leveraging the improved performance of POWER7

IBM Service Management on POWER7Manage IT and non-IT assets to deliver next generation services

• Deploy & optimize• Monitor and manage• Protect applications & data• Secure and track resources

End-to-end service view crosses organizational boundaries

Deliver higher quality service to customers and business partners at a lower cost

Respond rapidly to change, mitigate risk and support new business opportunities through greater agility

Integrated management for POWER7 to sustain an optimized and virtualized IT environment

Up to 40% improved throughput vs. POWER6 for Tivoli Storage Manager data de-duplication1

1 As much as 40% improved throughput vs. Power6 for the identify duplicates process One example of performance improvement, TSM 6.2

40%

© 2010 IBM Corporation

IBM Software for Smarter Systems

28

Workload Optimized Systems on Power

1st pre-integrated analytics system

Discover insights, predict outcomes, act fasterSmart Analytics

System 7700

Foundation to simplify development

Rapid delivery; pre-loaded with three sizing optionsRational Power

Appliance

Foundation for transactional workloads

Reduce floor space by up to 50%IBM pureScale

Application System

1st pre-packaged cloud environment

Improved time-to-value, reduce complexity & risk

IBM CloudBurst

(SOD)

1st smart grid appliance

Save up to 60% on implementation costseMeter Grid

Appliance

August 2010 Announcements

© 2010 IBM Corporation

IBM Software for Smarter Systems

29

IBM Software on POWER7, delivering…

� Faster time to value

� Better price performance

� Lower total cost of ownership

For more information: Learn More: www.ibm.com/software/info/swforpowerContact your IBM Software Client Leader Representative

© 2010 IBM Corporation

IBM Software for Smarter Systems

30

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