1. Cloud computing for System z

2. BUSINESS & IT ALIGNMENT
Cloud-onomics…
CLOUD COMPUTING =
Reduced
Cost
….leverages virtualization, standardization and automation to free up operational budget for new investment
VIRTUALIZATION +
ENERGY EFFICIENCY
STANDARDIZATION
AUTOMATION
In today’s economy, many businesses are faced with the challenge of “taking cost out” of their infrastructure while continuing to deliver new , innovative business services - basically they need to “do more with less”
There are two primary levers to achieve cost optimization – operating expense and capital expense, and for many businesses its not just a question of lowering costs its also important to strike the right balance between Op-ex and Cap-Ex
On the horizontal axis, you have virtualization, or the ability to pool the IT resources to reduce capital expense of hardware, software and facilities.
On the vertical axis, is standardization…with common software stacks , operational policies, and improved service management. The farther you can drive standardize the more you reduce operating expense – like labor and downtime – which is far and away the fastest growing piece of the IT spend.
The more standardization you are able to achieve within your infrastructure, the greater the economies of your operating expenses become. Similarly, the more you leverage virtualization within your IT infrastructure, the greater the economies of your capital expenditures will be. So addressing both standardization and virtualization is key to reduce infrastructure costs, while still meeting the dynamic needs of the business.
The need to achieving cost optimization has also provided fertile ground for Cloud Computing. The cloud paradigm is an attempt to improve service delivery by applying engineering discipline and economies of scale in an Internet inspired architecture.
Cloud computing can be an important new option in helping businesses optimize the IT expense equation while maintaining fast, high quality service delivery.
NOTE: If asked to discuss public vs. private clouds:
- A private cloud drives efficiency, while retaining control and greater customization.
- Public clouds today are for processes deemed more easily standardized and a lower security risk.
There some functions that already exhibit a high degree of standardization, that are more easily moved to a public cloud – things like search, e-commerce, and discreet business processes like sales force management. + + + = =
AGILITY
BUSINESS & IT ALIGNMENT
SERVICE
FLEXIBILITY
INDUSTRY STANDARDS
OPTIMIZED
BUSINESS
…allowing you to optimize new investments for direct business benefits 2

3. Cloud Computing Delivery Models
Flexible Delivery Models
Public …
Access by Service provider owned and managed.
subscription.
Delivers select set of standardized business process, application and/or infrastructure services on a flexible price per use basis.
Private …
Privately owned and managed.
Access limited to client and its partner network.
Drives efficiency, standardization and best practices while retaining greater customization and control
Cloud Services
Cloud Computing
Model
Hybrid …
Access to client, partner network, and third party resources
.…Standardization, capital preservation, flexibility and time to deploy
.… Customization, efficiency, availability, resiliency, security and privacy
ORGANIZATION CULTURE GOVERNANCE
...service sourcing and service value 3

4. An Architectural Overview for Cloud Computing
Service
Creation & Deployment
Service Request & Operations
IT Infrastructure & Application
Provider
Virtual Image
Management
End User
Requests
& Operators
Service Catalog,
Component Library
Datacenter Infrastructure
Cloud Administrator
Access Services
Design
& Build
Image Library
(Store) …
Deployment
Service Management
Service Catalog
Request UI
Operational UI
Service Oriented Architecture
Information Architecture
Standards Based Interfaces
Operational
Lifecycle
of Images
Standards Based Interfaces
Virtualized Infrastructure 4

5. An Architectural Model for Cloud Computing
Service
Creation & Deployment
Service Request & Operations
IT Infrastructure & Application
Provider
Virtual Image
Management
End User
Requests
& Operators
User Request Management/Self Service Portal
Security: Identity, Integrity, Isolation, Compliance
Usage Accounting
License Mgmt.
Image Lifecycle Mgmt.
Provisioning
Performance Mgmt.
Availability/Backup/ Restore
Service Lifecycle Management
Service Management
Design
& Build
Image Library
(Store)
Optimized Middleware
(image deployment, integrated security, workload mgmt., high-availability)
Service Oriented Architecture
Information Architecture …
Deployment
Service Catalog
Request UI
Operational UI
Virtual Resources & Aggregations
SMP Servers
Network Hardware
Storage Servers
System Resources
System z
Storage
Virtualized Infrastructure
Server Virt.
Storage Virt.
Network Virt.
Operational
Lifecycle
of Images 5

6. The layers of IT-as-a-Service
Collaboration
CRM/ERP/HR
Business
Processes
Industry
Applications
Software as a Service
Middleware
Web 2.0 Application
Runtime
Java
Runtime
High Volume
Transactions
Database
Development
Tooling
Platform as a Service
Servers
Networking
Data Center
Fabric
Storage
Shared virtualized, dynamic provisioning
Infrastructure as a Service

7. The Mainframe Cloud agenda
Focus on Strengths
Extend the Data Serving and Massive Virtualization Strategy of System z to embrace Cloud Computing
Take advantage of System z efficiencies
As the industry drives the focus from capital to operational costs, the opportunity to grow the presence of the mainframe is clear
Extend the mainframe strategy
Use the traditional strengths of System z to offer a differentiated IBM Cloud offering to our enterprise customers and transparently to the broader community.

8. InfoSphere Information Server
System z Data Cloud allows customers to bring BI services with less cost and higher qualities of availability and security.
Business Services Portal
What is a Data Cloud?
Centralize BI using Cognos on z/Linux
Take Data from anywhere: structured, unstructured, applications, mainframe, or distributed
Deliver consumer driven services to a broad set of users / lines of business
Automate delivery of services
Why z for data clouds?
Save costs with operational efficiencies of z and virtualization
Deliver qualities of service: availability, security, recoverability
Allow for elastic growth in tenants and data
Prevent unforeseen operations costs that occurs with a patchwork IT investment pattern
Understand
Cleanse
Transform
DB2 Warehouse for z/OS
TSAM
zLinux
InfoSphere Information Server
Deliver
Central repository for data .. For multi-users/ line of businesses
Cloud of analytical applications that can be provisioned dynamically as users and new users are identified and authorized
Leverage the data centric strengths of z: allows for multi-tenant data support, Sysplex enablement and massive consolidation at the application layer

9. System z Public Sector Cloud delivers a robust and secure open source solution for efficiently reaching massive volumes of users.
Why z for the Public Sector Cloud?
Leverages limited IT pool most effectively
Operationally efficient with broadest reach
Highly virtualized with LPAR isolation and shared everything infrastructure
Supports an open source environment
Runs mixed workloads effectively
What is a Public Sector Cloud?
Education, healthcare or government services that can be hosted by university, corporate & government entities
Partnership with open source & low cost application vendors in the public sector space
Designed for effective use of the available resources – skills, power, etc. for maximum impact
Gov’t Services
Education Services
Value add security services
Healthcare Services
Automation, Metering, Billing
LAMP stack or
IBM MW
z/VM
OSS workload examples:
Consumer & business services:
Virtual Linux desktops
Education services:
Education ERP for financials, student administration and research
Learning Management System for remote course mgmt, collaboration, and content
Government services:
Disaster recovery finding missing people, managing aid, managing volunteers, tracking camps effectively between Government groups, civil society and victims
OSS
Healthcare services:
Open Medical Record System for standardized medical informatics
OSS
OSS
OSS
OSS

10. A summary of client insights from engagements
What we’ve learned…
Cloud is a strategic C-Suite discussion
Clients focused on how cloud solves business problems (and in today’s economy) in a self-funding manner
Center discussion on business drivers, how our solution solves their issues, ROI, and lessons learned
IBM has brand permission to assert leadership
Clients want clear view of architectural vision, security, notion of an enterprise cloud, range of capability and expertise of IBM
Competitors are encouraging clients to “push” IBM
How to questions - How will you deploy applications on Amazon Cloud? Azure Platform?
Strategy questions – Does IBM have hosted cloud capability similar to Amazon? What is your ecosystem?
Case Studies and References – Where else has this been done? 10

11. IBM Research Computing Cloud (RC2) A living lab to advance Research strategies
Provides self service “on demand” delivery solution for research computing resources
Research Compute Cloud (RC2)
Zero touch support for the full life cycle of service delivery
Order creation
Approval process
notification
Automated provisioning
Monitoring
India
Zurich
Watson
A System z cloud in the Tokyo Research Lab is being integrated into RC2 (April) 11

12. Financial Services Company builds a zTest cloud
Business Problem
Solution Overview
Phased pilot, with first phase completed in Q408.
Use TSAM as the cloud management solution (incl. service management) in a pilot.
Manage the deployment of distributed WAS ND instances on zLinux, z/VM, DASD.
Implement and prove a set of scenarios:
Instantiation of a distributed WAS ND cluster running on zLinux.
Increase capacity of a WAS ND cluster service instance.
Delete a WAS ND cluster service instance.
Tangible results from Pilot:
Simplified – Requires less interaction with developers to get a new WAS ND Cluster.
Faster time-to-market for developed apps.
100% consistent deployment of environment
Complex IT environments, lacking automation. This results in long lead times for requests, and high cost for deploying and managing environment.
Little standardisation of configuration leading to quality issues and additional maintenance overhead. Want to improve audit results and IT compliance for development and test.
Need to improve capacity without increasing cost
Lessons Learned
“Don’t eat the elephant in one go!”
Set scope around a process not around a function – focus on the people and the skills to drive rapid implementation.
This is transformative and crosses organizational boundaries. Executive sponsor support is vital. 12 12

13. Mainframes for SW As a Service
Leading SaaS provider of ePayable, digital data, and spend analysis solutions
44,000+ users
4,200 companies
$80 B in transaction detail, processed
• Available • Secure • Elastic
Traditional Lintel shop
Challenge to scale, manage, secure
Complex configurations
Linear costs for growth
New z9 Business Class shop
100% YTY growth-plan to production
Flexible capacity on demand
Centrally managed & secured
Manageable cost of incremental growth
Oildex the leading provider of e-payable
“The IBM z9 provides the stability and scalability needed to accommodate Transzap’s triple digit volume growth in a SaaS environment.”
– Peter Flanagan, President
IBM Cloud Computing 13

14. SUSE Linux from Novell

15. Novell® and IBM Partnership Highlights
SUSE® Linux Enterprise runs on all IBM hardware platforms
IBM and SUSE Linux Enterprise co-developed Linux for Power Systems and System z
IBM/Novell co-developed IBM Retail Environment on SUSE Linux Enterprise (IRES)‏
Dedicated Alliance Teams at Novell and IBM
Novell is Strategic IBM Alliance Partner since December 2005
IBM support-line on SUSE Linux Enterprise
SUSE Linux Enterprise Server is on IBM's Passport Advantage (PPA) Program 15

16. SUSE® Linux Enterprise Server for System z Built for Demanding Conditions
Over 1,000 certified applications available
SUSE Linux Enterprise Server for System z includes over 180 features requested by IBM
SUSE Linux Enterprise Server is recognized as a leading platform for mission-critical computing:
Higher reliability than Windows, Red Hat and Solaris; according to Yankee Group
#1 in the SAP-on-Linux market (75% share)‏
#1 in the mainframe Linux market (80% share)‏
#1 in High Performance Computing (6 of the top 10)‏
Another key advantage of Enterprise Linux Servers from Novell is that it is built for and proven in the most mission-critical computing environments.
It offers extreme reliability
Higher reliability than Solaris, Windows and Red Hat according to an extensive Yankee Group customer survey (January 2008)‏
It delivers outstanding performance and scalability
Runs 6 of the world’s top 10 supercomputers, and scales up well on core machines
It is #1 for SAP on Linux
Recommended by SAP and #1 among SAP customers
It is also #1 for mainframe Linux
Strong partnership with IBM and #1 among System z customers
It is trusted by customers for their most important systems
Ensures the safety of thousands of passengers as it powers the German Air Traffic Control’s radar processing systems 16

17. For more information, please contact me at:
Thank you!
For more information, please contact me at: