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José Castaño Director: z Software Technical sales SPEAKER NOTES

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1 IBM z Systems: Empowering Digital Business Innovation through Mobile, Analytics, Cloud and Security
José Castaño Director: z Software Technical sales SPEAKER NOTES What defines a mainframe When we hear “mainframe,” there are some fundamental truths and beliefs that immediately come to all of our minds. a) Transactions – it’s estimated that 55% of the world’s commercial transactions run through the mainframe today. b) Data serving – I’ve seen statistics estimating that upwards of 70% of all commercial data is originated on and managed by the mainframe. c) Trusted and secure computing – transaction integrity, always available, highest levels of security. d) Almost limitless scale. e) Superior economics and efficiency at scale – the same energy footprint for past four generations of z Systems while quadrupling (fact check this one) MIPs capacity. Lowest cost per transaction and per virtual machine. These are indisputable values of a mainframe and they are the reason the mainframe is the data and transaction hub for the global economy.

2 The market is moving, forcing businesses to transform
Explosion in transaction growth driven by mobility and the Internet of Things Analytics is moving to real time to capture new opportunities at the point of impact Hybrid cloud is the new standard for delivering service, agility, trust and efficiency The market is moving, forcing businesses to transform The technology forces of cloud, analytics, and mobile are causing havoc on traditional data centers. There is a marked shift from the somewhat stable and predictable workload of the Internet era to a highly unpredictable "Internet of things" that accumulates data from new and varied sources at greater volume and velocity. In this environment the end user has the power and they are expecting a rapid rollout of new services that are customized to their unique needs, thus providing them with the ultimate in client experience. At the heart of these new infrastructures is data and the ability to efficiently transact with it. A data-centric infrastructure must always be available for a 24x7x365 business, have flawless data integrity, and be secured from misuse. It needs to have integrated capabilities that can provide new mobile capabilities with real time analytics delivered by a secure cloud infrastructure.

3 The new imperatives for digital business
Availability Response Time Personalization 24x7x365 application availability Users expect <1 second app utility 80% of Marketers send the same content to all subscribers Trust Integration Scale As Julie Ask noted, mobile device users are seeking more than just apps – they crave compelling experiences that help them get things done quickly, safely and efficiently. After helping clients successfully deploy more than 6000 mobile solutions worldwide, IBM has identified five critical factors that make those ‘Mobile Moments’ possible. Availability – Mobile users appreciate apps that are ready for action 24 x 7 x 365 Performance – Mobile users demand responsiveness and snappy answers Trust – Mobile users want to have the confidence that data is secured end-to-end Integration – Mobile users prefer apps that show insight and deliver all the information they need Scale – Mobile users demand all of the above – even when millions of them are online at the same time Mobile driven transaction growth to average 35% annually through 2017 40% have gone to a competitor’s site after a bad mobile experience 57% will abandon a site if they wait 3 seconds+ for a page to load Mobile is changing the way we interact: 40% -- of the workforce will be mobile by 2015 26 times -- the amount global data usage will increase between 2010 and 2015 38% -- yearly increase in revenue from people using mobile devices to purchase items Mobile is changing the way we work: 2/3 of the workforce will own a smartphone 200 Million Mobile workers will use at least one business-focused app this year 81% of employed adults use at least one personally-owned mobile device for business Mobile is changing the way hackers steal information: 70% -- of consumers aren’t confident enterprises are adequately protecting personal data 8.9b -- annual cost of crime 100% -- of top 100 paid apps in Android market have been hacked. 70% lack confidence in data security 91% of new customer-facing apps access mainframe 35% mobile transaction growth annually 3

4 Delivers trusts and confidence 56,5820 transactions per second
IBM z Systems enable clients to create new possibilities to drive progress through CAMSS Cloud Social Security Analytics Mobile Offers personalized services to support 10M new customers through mobile.2 Analyze and process 3M medical claims per week saving $65M for patients and their health plans Creating a cloud for Africa’s offline 85% to bring burgeoning markets online.. Exploits social analytics to ensure service continuity for delivery of $1B in value every six minutes 1 2 Creating a conduit into Africa for its 85% offline Delivers trusts and confidence 56,5820 transactions per second

5 Mobile is unleashing the 24x7 consumer, and opening up new markets
Banking and Financial Services Deposit a check, move money, check balances instantaneously, track portfolio, get alerts, receive quotes, execute trades Travel and Transportation Insurers Check flights, book reservations, choose seat assignments, check-in and streamline car rental process, hotel reservations File claims, provide quotes, compare prices, enroll, view policies, capture data to develop new offerings Becoming a mobile enterprise is about re-imagining your business around constantly connected customers and employees. Mobile devices have transcended from being a consumer only device, to one that is empowering enterprise workforce to execute their day to day activities anytime anywhere. Mobile devices are now beginning to become an essential component of enterprises in all industries as they try to improve internal processes, reach out to customers more effectively, reduce costs and increase sales Mobile is the universal sensor. It is with most of us 100% of the time and is the primary means we use to interact with our employers, our customers, our family and our friends. These interactions inherently become transactions. Whether shopping, purchasing, searching for or providing information, collaborating or seeking service, mobile enabled people and objects are seeking not simply to connect, but to complete tasks when, where and how they wish. But market data shows many times the mobile experience does not meet expectations in how we wish to interact. Thus, the mobile experience must transcend any single device to accommodate multiple screens and touch points and attention to detail on design and usability is paramount. As consumers interact they are creating vast streams of data that, with the right analytics, can teach us things about their behavior and their preferences that we could not learn in any other way enabling us to optimize the mobile experience. Data generated doesn’t just come from devices like phones and tablets. The ability to tag things, sense things, power things and shrink things has extended mobility beyond people to nearly every other type of object on the planet. As we have said since the start of smarter planet things are becoming more instrumented, interconnected and intelligent than ever before, and mobile is right at the center of that story and will fundamentally change the way the world works. And data is not just helpful in B2C use cases … but also B2E internally for mobile enterprises to leverage mobile internally to drive up productivity, drive down costs, and ensure corporate security throughout. Automotive Retailers Enable mobile sensors for diagnostics and safety Deliver personalized offers for cross sell, up-sell and establishing customer loyalty through mobile

6 IBM z13 – The premier data and transaction server for the mobile generation
17 to 37% lower cost per transaction 2.5B transactions per day 36% faster response time Performance, scale, intelligent I/O, and security enhancements to support transaction growth in the mobile world z/OS Connect provides consolidated REST APIs for all z/OS transactions Seamlessly channel z/OS transactions to mobile devices with MobileFirst Platform IBM MobileFirst Platform for iOS specifically for iOS mobile apps Enable end to end security from mobile device to mainframe with z/OS, RACF® and MobileFirst products 141 cores and 40%* more capacity in a single system 2X* performance improvement with crypto coprocessors for more secure transactions 10 TB* memory plus 2X increase in cache size 320 separate channels dedicated just to driving I/O throughput 16 Gbps FICON links for faster throughput GDPS helps customers avoid outages both planned, and unplanned due to single component failures or whole site failures. GDPS/PPRC is capable of providing: Near continuous disk availability Highly automated D/R solution Recovery Time Objective less than an hour Recovery Point Objective of zero Protection against localized area disasters The GDPS virtual appliance is a fully integrated Continuous Availability and Disaster Recovery solution for Linux on z Systems. It is a self-contained and pre-configured virtual machine image that contains an operating environment (little or no z/OS skills required), GDPS/PPRC, Tivoli Netview and Systems Automation, an appliance management layer, and APIs / UIs for customization, administration, and operation tailored to the appliance function. The virtual appliance can improve both consumability and time-to-value for customers The z/OS and Tivoli products are available only for GDPS Virtual Appliance use only Infrastructure definitely matters for enterprise mobility. With a more than half of the world’s corporate data and transactions already touching a mainframe, unlocking a secure, mobile path to this data can transform the way organizations conduct business and engage with customers. With more memory and faster processing power than any other mainframe system, the z13 can easily support new mobile transaction volumes, consistently delivering less than a second response time across millions of transactions a day. The z13 can analyze data itself—unlike previous systems where data had to be moved from the mainframe to other computing systems to perform analytics, which slowed down response time and introduced security risks. z13 is also more secure—new cryptographic capabilities help ensure data privacy and the integrity of mobile transactions. IBM performance testing has shown that when similar mobile solutions are deployed on z13 and commodity x86-based servers, the mainframe platform demonstrates clearly superior throughput and response times, as well as reductions in cost per transaction of at least 17% (depending on the number of active users). Disclaimer – Estimate for systems compared based on three year total cost of ownership * Compared to zEC12 * Compared to zEC12

7 Analytics run on SoR system for optimal performance
IBM z Systems bridge Systems of Record with Systems of Engagement for optimized service delivery MobileFirst Platform (on-prem) MobileFirst Platforms run either on-prem (using Linux on z Systems) or in the cloud (via Bluemix) CICS IMS MobileFirst Platform (cloud) z/OS Connect Analytics WebSphere By deploying the analytics (systems of insight) on the same platform as the data (systems of record), mobile solutions can be deployed more cost-effectively and with greater security. IBM has made System z subsystems (CICS, IMS, DB2) “mobile-friendly” with the release of CICS Mobile Feature Pack IMS Mobile Feature Pack DB2 JSON and NoSQL support z/OS Connect In 2014, IBM also introduced Mobile Workload pricing for System z clients DB2 Analytics run on SoR system for optimal performance and security Serving mobile data directly from z/OS is 40% less expensive than exporting to a system of engagement

8 Speeding transportation with a mobile ticket application
#IBMz Speeding transportation with a mobile ticket application Processing a surging tide of mobile payments quickly and securely Providing the highest level of protection for classified communications

9 The Mainframe Mobile App Throwdown is back for 2015!
Mobilize your mainframe in our fun app-building contest for z Systems clients & business partners! FAST Prototype an app in days or weeks, not months – try something new! FUN Learn and get tips from our epic IBM zMobile experts FREEBIES Prizes include passes to Edge 2015 & mobile design help The Mainframe Mobile App Throwdown is back for 2015. Register at ibm.biz/mmathrowdown. Entries must be submitted by April 12th Get access to IBM zMobile experts and getting started product information for building mobile apps. No need to submit code. Just create a mobile app prototype and submit slides describing your entry and short video of the app in action. Client and BP winners will be announced at Edge2015 (May , in Las Vegas), and will receive IBM design time. Eligible clients can also win passes to Edge 2015. Register now at ibm.biz/mmathrowdown and submit your app by April 12th

10 “Other customers who purchased this product also purchased…”
As mobile becomes more pervasive, analytics can drive true differentiation in engagement “Thank you for your request, please find below your account balance as at close of business…” “Other customers who purchased this product also purchased…” “Here is a voucher for a new product we think you will like which is located in the next aisle in the store…” Postal Web Mobile One-off custom queries - response in hours / days based on historical analysis Product association - response in near real time based on historical analysis Personalized offer based on situational awareness - response and analysis in real time Analytics provides new opportunities to extract the most value out of every interaction and transaction Catalog / postal Web Mobile 80s / 90s 2000s 2015 Analytics provides new opportunities to extract the most value out of every interaction and transaction 10

11 Data is the newest resource for competitive advantage
$13 for every dollar spent 7.6% boost $226 billion to customer lifetime value for firms using engagement analytics nucleus estimate of analytics payback; 1.2 X more than 3 years ago estimated fraud loss to healthcare every year Analytics is critical to the business. It is proven to have significant impact on business results. , May 2014; Nucleus Research September Report O204 National Health Care Anti-Fraud Association, October 2011 Source: Aberdeen Group

12 Analytics implementations have grown in complexity
Significant complexity Separated data warehouses Analytics latency Transactional data is not readily available Lack of synchronization Data is not easily aggregated and fresh Data duplication Multiple copies of the same data Excessive costs Of moving data around Let’s look at a rather disturbing picture taken during an IBM customer workshop. This is a customer’s real IT infrastructure. Databases, core systems, decision points…the very definition of significant complexity. And this is not complexity by design, this is just the evolution of a computing infrastructure that was never designed for near real-time analytics. Most customers do their operational analytics separate from their transactional systems, which introduces latency. When the data is taken off the system of record, different groups will see snapshots of data that are not fresh and there is no guarantee on consistency in data synchronization. Multiple copies of the data needs to be supported and you can see when you add all of these issues, excessive costs, including personnel costs, is the only results possible. This is the typical challenges that most clients are dealing with. 12

13 … So a new deployment strategy is needed
Bring the analytics to where the data and transactions originate for greatest value Deliver real-time insights at the point of impact Manage data lifecycle and governance Eliminate redundancy and avoid ETL Transactions Analytics Real-time “integration of analytics and transaction processing” increases customer value with every interaction What’s new with z Systems Over the last several years, IBM has built a comprehensive and complete analytics solution on z Systems. Clients can now take advantage of their enterprise data where the transactions originate. The DB2 Analytics Accelerator complements the DB2 for z/OS industry-leading transactional processing capabilities, providing a specialized access path for data intensive queries. This enables real and near real-time analytics processing which executes transparently to applications and users. DB2 Analytics Accelerator operates as an integral part of DB2 for z/OS and z Systems. The DB2 Analytics Accelerator will evolve to support new and innovative use cases, such as in-database transformation and advanced predictive analytics. These enhancements will enable faster and more sophisticated reporting and allow for deep analytics application integration. This will drive the ability for sophisticated analytics on the z Systems platform. In the end, this allows the ability to deliver right time insight based on real-time data.   Many DB2 z/OS customers are already benefiting from the IBM DB2 Analytics Accelerator. For zSystems customers who run DB2 on Linux for z System, we now offer DB2 with BLU Acceleration. And today’s announcement of up to 10 TB of RAM in the new z13 is the perfect complement to BLU. Hadoop is usually the go-to technology for exploratory data analytics, but since much of this data contains sensitive information it’s often necessary to keep that data within the secure zone of the mainframe. We’ve made our flagship Hadoop product, InfoSphere BigInsights, available on z Systems. And to simplify the population of Hadoop clusters, we introduced a new product, the InfoSphere z Systems Connector for Hadoop. Our iLOG CPLEX product for solving complex mathematical problems, already available on z/OS, has been modified to take advantage of the Single Instruction Multiple Data (SIMD) support announced today for the z13. DB2 Analytics Accelerator / SPSS Modeler CPLEX SIMD Exploitation BLU Acceleration InfoSphere BigInsights z Systems Connector for Hadoop 72% 55% say greatest value will come from analyzing transactional data of enterprise applications need mainframe to complete transactions

14 IBM z13 – An integrated transaction and analytics system for right time insights at the point of impact Reduce cost, move Oracle workloads to DB2 in-memory computing IBM DB2 Analytics Accelerator for z/OS and DB2 BLU for Linux further accelerates queries for faster insight SIMD delivers accelerated analytics processing for mathematical optimization zEDC reduces data transfer time and storage cost by up to 75% 16 Gbps FICON links reduce latency for workloads such as DB2 zIIPs help to lower the cost of ownership helping to help connect, manage, extend, and protect data Optimize decisions, solve complex problems faster Garner new insight, use Hadoop analytics on TX and log data The z13 is: 141 cores and 40%* more capacity in a single system 2X* performance improvement with crypto coprocessors for more secure transactions 10 TB* memory plus 2X increase in cache size 320 separate channels dedicated just to driving I/O throughput 16 Gbps FICON links for faster throughput * Compared to a zEC12 Designed for mobile: Performance, scale, intelligent I/O, and security enhancements to support transaction growth in the mobile world z/OS Connect provides consolidated REST APIs for all z/OS transactions Seamlessly channel z/OS transactions to mobile devices with MobileFirst Platform IBM MobileFirst Platform for iOS specifically for iOS mobile apps Enable end to end security from mobile device to mainframe with z/OS, RACF® and MobileFirst products Act faster, analyze and score transactions as they happen

15 Moving data off of z Systems is costly
To move 1TB of data daily off z Systems can cost over $10M over 4 years x86 ETL z13 Analytical Data Analytical Data Estimated 4 year cost summary ETL System costs = $9,864,412 Labor costs = $393,927 Total = $10,258,339 ETL ETL Analytical Data Estimating single node of Pre-Integrated Competitor V4 Eighth Unit performance from an x86 server (running Xeon 2.4GHz E processors) with same number of cores (12). Note 3:.This is based on an IBM internal study designed to replicate a typical IBM customer workload usage in the marketplace. Test involved measuring in a controlled laboratory environment elapsed time for system and administrator to extract, send and receive 130GB file from z13 to an x86 server running with 12 x Xeon 2.4GHz E processors. Prices, where applicable, are based on US prices as of 12/31/2014 for both IBM and competitor. Estimated amortized cost from 4 Year Total Cost of Acquisition (TCA) that includes all HW, SW (OS, DB and tools) and 4 years of service & support. For Labor costs, used annual burdened rate of $159,600 for IT Administrator for z Systems and x86. Results may not be typical and will vary based on actual workload, configuration, applications, queries and other variables in a production environment. Users of this document should verify the applicable data for their specific environment. Assuming 4 cores on z13 running at 85% utilization and 12 cores on x86 servers run at 15% utilization, transfer will burn MIPS and use 30 x86 cores per day Analytical Data

16 IBM z13 beats the competition head to head in analytic performance
17x performance 13x price performance Standalone Pre-Integrated Competitor V4 IBM z Systems Analytics 9700 DB2 v11 z/OS Eight Unit z13 IBM DB2 Analytics Accelerator (N ) $514 Per Report per Hour (3yr TCA at no discount) $40 Per Report per Hour (3yr TCA at no discount) Note 1: Based on IBM sponsored and internal tests comparing IBM zEnterprise Analytics System 9700 with a comparably priced, comparably tuned competitor Eighth Unit configuration (version available as of 12/31/2014), executing a materially identical 10 TB BIDAY “Fixed Execution” workload in a controlled laboratory environment. Test conducted with BIDAY “Fixed Execution” workload measures elapsed time for executing 161,166 concurrent reports using 80 concurrent users. Intermediate and complex reports are automatically redirected to IBM DB2 Analytics Accelerator for z/OS (powered by N hardware or Mako). Price comparison based on a 3YR Total Cost of Acquisition (TCA) using U.S. prices current as of December 31, 2014, including hardware, software, and maintenance. Compared prices exclude applicable taxes, and are subject to change without notice. Competitor configuration: Eighth Unit including competitor recommended software options and features. IBM configuration: z13 platform with 1CP and 3 zIIPs with 128GB memory and DB2 Analytics Accelerator Full Rack (N ) with 7 S-blades (140 Intel E5-2680v2 2.8GHz cores and 128 GB RAM), 2 Hosts (1 active – 1 passive) with 20 Intel E5-4650v2 2.4GHz cores each and 12 disk enclosures, each with GB SAS drives . Results may not be typical and will vary based on actual workload, configuration, applications, queries and other variables in a production environment. Users of this document should verify the applicable data for their specific environment. Workload Time 1,810 mins Reports per Hour (RpH) 5,343 Competitor Eight Unit (HW + SW + Storage) $ 2,745,041 Workload Time 105 mins Reports per Hour (RpH) 92,095 z13 (1 GP + 3 zIIP + HW + SW + Storage) + Accelerator V4.1 $ 3,652,131

17 Delivers most timely, accurate data for improved customer satisfaction
#IBMz Increased retail sales revenue through point-of-sale suggest-sell insight The issue is that the topology you find on most IT floors reveals a highly fragmented infrastructure. With z Systems estimated to hold 70-80% or more of the world’s transactional data – the real-time data – but that data is then copied off-platform for reporting and analysis, usually multiple times because every department wants its own copy. It’s this fragmentation that prevents most clients from moving forward with their growth and optimization objectives.   z Systems clients who caught this disconnect between business needs and IT architecture early on are showing tremendous business results from the integration of analytics directly into their mainframe systems. For example, Petrol Petrol is a current client that has also been doing early testing of new Analytics functionality that is in the works related to in-database transformation and in-transaction modeling. They are very excited with the possibilities on the horizon that will drive even more benefits around analytics   Business Challenge: How to improve customer service and satisfaction in order to drive greater revenue Technical Challenge: Existing analytic processes were unable to manage the analysis of historic and transaction data from Petrol’s retail stores, service stations and home oil/gas businesses Solution: Implemented IBM DB2 Analytics Accelerator to support high performance queries and IBM SPSS to make real time, point of sale product recommendations Swiss Mobiliar   Business Challenge How to maximize profitability as its business grows Technical Challenge Running its growing transaction processing and analytics workloads side by side without increasing compute requirements Solution Deploy IBM DB2 Analytics Accelerator for z/OS bringing together transactional processing and analytics workloads in a cost-effective solution   Banca Carige Business Challenge How to maximize value from big data in order to improve product development and customer relationships Technical Challenge Unable to quickly extract actionable insights from big data and identify market opportunities in order to adapt or expand its offering to meet customer demand Solution Created a secure analytics platform, to extract true business value from their big data for better business decisions about everything from product development to special offers to promotions Delivers most timely, accurate data for improved customer satisfaction Reduced time from months to weeks to develop and release new marketing campaigns

18 Cloud is becoming pervasive as the engine of new service delivery for the digital era
Approximately 70% of enterprises will pursue hybrid cloud by 20152 Cloud deployment has grown 92% since 20121 85% of new SW is being built for the Cloud4 57% of companies are using cloud to drive competitive and cost advantage3 The use of Cloud-based technology is now ubiquitous in businesses of all sizes. In fact, it’s been said that Cloud is simply the new way of saying IT Infrastructure. As companies increasing look to the Cloud for more than just its potential economic and business agility benefits, the need for a clearly defined Cloud strategy becomes critical. The market is beginning to bifurcate into haves and have nots when it comes to Cloud strategy. Those that develop and execute a clearly defined Cloud strategy are enjoying not only competitive and cost advantages, but are pulling away from those without one in the form of almost 2x the revenue growth and nearly 2.5x higher gross profit. These numbers make clear that it is a business imperative to engage the Cloud in a thoughtful, strategic way. Customers with a clearly defined Cloud strategy enjoy almost 2x the revenue growth and nearly 2.5x higher gross profit than peers5 Source: 1 “Raising the game, The IBM Business Tech Trends Study,” “Private Cloud Matures, Hybrid Cloud is Next,” Gartner G , Sept 6, 2013 3, 4, 5 IBM Global Cloud Study “Under Cloud Cover”

19 IBM z Systems provide the infrastructure to support all dimensions of cloud service delivery
Private Cloud z/OS and Linux on System z as the foundation of the most secure, scalable private cloud infrastructure Hybrid Cloud Leveraging BlueMix and interoperability with SoftLayer, AWS and other public cloud offerings Public Cloud Enabling MSPs/CSPs to deliver differentiated mainframe-based service offerings Elastic, virtually limitless expansion Shared everything design for extreme utilization Secure isolation of Virtual Servers Built on open industry standards Efficient and agile delivery model

20 IBM z13 – The most efficient and trusted cloud system, transforming the economics and agility of IT
Open support extended with OpenStack®, PostgreSQL, Node.JS, and KVM* 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 Intelligent Print Manager on ELS by Ubiquitech Up to 8,000 virtual servers per system, more than 50 per core Open virtualization with new KVM support * 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 The z13 is: IBM DB2 Analytics Accelerator further accelerates queries for faster insight SIMD delivers analytics processing for mathematical optimization zEDC reduces data transfer time and storage cost by up to 75% 16 Gbps FICON links reduce latency for workloads such as DB2 zIIPs help to lower the cost of ownership helping to help connect, manage, extend, and protect data Designed for analytics: Mega-memory and new opportunities for memory computing New machine architecture boosts complex mathematical model performance Use Hadoop to explore z Systems within the secure zone of the mainframe Evolving support for new and innovative use cases, such as in-database transformation and advanced predictive analytics * All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. 20

21 z13 Delivers Cloud Economics Without the Risk
#IBMz z13 Delivers Cloud Economics Without the Risk 32 and 60 32% and 60% lower cost 18,000,000 10,000,000 8,000,000 Superior cloud services at up to 32% lower cost than x86 and up to 60% less than public cloud alternatives Clean up Public Cloud x86 Cloud Cloud on z13 Infrastructure Middleware Labor, power & space

22 Build a vault around your crown jewels with System z
In the complex world of digital business, Security and Availability are now a board level discussion The indirect cost of security breaches and downtime can far outweigh the direct costs Build a vault around your crown jewels with System z 70% Of security executives have cloud and mobile concerns1 614% Mobile malware growth in just one year2 $5.65M Average cost of a security breach in the US3 $7.9K Average cost of one minute of downtime4 Data Transactions Users The evidence of this is clear for us all to see. When we talk to security executives they have grave concerns, especially in the areas of mobile and cloud, two of the fastest growing areas that impact IT. Mobile is the new battleground for the security industry. Malware has increased over 600 percent in a year. Devices are becoming both the target of attacks and the access point for attacks on business systems. And when things go wrong they do so on a grand scale. The average cost of a security breach in the US id over five and a half million dollars, the cost of downtime is nor nearly eight thousand dollars per minute and substantially higher in some industries. Today more than ever, businesses need systems infrastructures that can help protect them from these impacts. Source: IBM CISO Survey Juniper Mobile Threat Report 3 IBM client examples 4

23 Mitigating business risk in today’s digital world
Security and resiliency built into every level of System z Highest level of security for isolation of cloud workloads with EAL5+ Encryption of data at rest, in flight, and in use Enterprise Key Management across mainframe and distributed IT Analytics to spot potential failures and capacity needs before they occur 99.999% design point for application availability Zero second recovery point objective across thousands of miles Applications Middleware Database Hypervisor Operating System Storage Communications Reference: Reference: Security is arguably the most important part of your enterprise. After all, without it, your business can’t be successful. System z offers you end to end security, access controls, compliance and auditing from the your mobile device through the system of record into your Cloud environment and can secure the customer data you are accessing all over secured communications on your network. System z provides cost effective options for encrypting and securing transactions by offering high speed, secure encryption with the cryptographic coprocessors and on chip crypto operations. Clients can manage risk and assure compliance with a comprehensive suite of products to assist with user authorization, auditing and reporting. As clients look to deploy mission critical workloads into public and private clouds, System Z offers an industry leading EAL5+ certification, giving MSPs the assurance that public and private clouds environments remain isolated, or air gaped, in a multi-tenanted environment and data that between LPARs cannot be compromised. High-end security is a primary requirement for the current and next generation of Mainframes and we continue bring rich new technologies to System z to support emerging business opportunities in Analytics, Mobile, Social, and Cloud that depend on a secure infrastructure. Hardware based encryption Centralized enterprise key management Comprehensive auditing and reporting Securely isolation of workloads in cloud environments Intrusion detection and access control Integrated identity management and fraud solutions Memory Processor

24 z13: a new system designed for mobile, analytics
and trusted cloud #IBMz So that is a quick overview of the ground-breaking z13, the premier data and transaction system for the mobile generation, an engine for in-transaction analytics and for cloud economics at scale without the risk. Let’s now look into how z Systems plays in each of these areas in more detail starting with mobile…… With the highest speeds, the most diverse workloads, and simply the best security on the planet

25 Thank You


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