Oscar Jimenez System X & PureSystems Technical Sales Manager Be Ready for SDE, Cloud and Big Data Era

© 2014 IBM Corporation 2 Even grandmothers have Smartphones and Twitter accounts Of LOB and IT leaders -- 70% are planning big data implementations or already leveraging them Of LOB and IT leaders -- 80% are building new apps for cloud Spending on market analytics is up by 60% 90% of all data on planet Earth is > 2 years old INFRASTRUCTURE MATTERS There are 1billion+ Facebook users

© 2014 IBM Corporation 3 Yesterday’s infrastructure can’t meet tomorrow’s needs Infrastructure matters more than ever IT infrastructure must provide enhanced efficiency, agility, and economics Big Data and Analytics $200 billion expected client spend on big data implementations MOBILE SOCIAL CLOUD

© 2014 IBM Corporation 4 Infrastructure choice matters because it positions you for success IT infrastructure decisions affect everything— from database and business analytics to cloud and virtualization The right decisions can help you:  Improve the economics, performance, and efficiency of all IT services via cloud  Drive business transformation via big data and analytics

© 2014 IBM Corporation 5 IBM is announcing 8 solutions that will continue IBM’s support of key initiative around cloud, Big Data, and technical computing  IBM System x Solution for SAP HANA on X6  IBM System x Solution for Microsoft SQL Data Warehouse on X6  IBM System x Solution for Microsoft Hyper-V on X6  IBM System x Solution for VMware vCloud Suite on X6  IBM System x Solution for SAP Business Suite on X6  IBM System x Solution for SAP HANA and VMware vSphere on X6  IBM System x Solution for DB2 with BLU Acceleration on X6  IBM System x Reliability Solution for Stratus everRun Enterprise

© 2014 IBM Corporation 6 IBM System x Solution for SAP HANA and VMware vSphere on X6 New SAP model definition with virtualization support for HANA New Reference Architecture with HANA models certified for Virtualized configurations with VMWare. Key FeaturesCustomer Benefits Support for SAP HANA virtualized with VMWare and Intel Ivy Bridge Joint partnership & leadership for virtualized mission critical applications Attack top barriers preventing the growth of virtualization (Performance & RAS) See the benefits of virtualization while also leveraging the speed of SAP HANA on IBM hardware that provides top end x86 RAS SAP certified HANA configurations from the recognized industry leaders Get faster time to value with preconfigured server models optimally designed by IBM and validated by SAP

© 2014 IBM Corporation 7 IBM System x Solution for DB2 with BLU Acceleration on X6 Accelerating insight, improving resiliency and maintaining flexibility Reference Architecture with a combination of DB2 BLU Acceleration and x3850 X6 offer revolutionary performance enhancements for database customers Key FeaturesCustomer Benefits Speed of thought analytics with patented BLU Acceleration >100x performance with DB & X6 over 10.1 on EP 4S X6 high availability, and disaster recovery capabilities paired with always available transactions with disaster protected reliability Expanded RAS capability Increased Data reliability and system availability Enhanced compatibility with Oracle Database applications makes it even easier to run them with minimal change Investment protection for Oracle databases Leverage existing skills of current IT resources DB2 with BLU Acceleration dynamically moves data from storage removing database tuning, indexes and aggregates Improve storage efficiency and lower storage space requirements creating compression rates of 10x that of un- compressed tables

© 2014 IBM Corporation 8 IBM System x Solution for Microsoft SQL Data Warehouse on X6 Enabling enhanced performance and availability for business critical applications Accelerate your data warehouse roadmap with pre-tested hardware configurations optimized and validated for Microsoft SQL Server 2012 Key FeaturesCustomer Benefits Accelerate your data warehouse roadmap with pretested hardware configurations Get faster time to value saving months of configuration, setup, testing, and tuning 6TB of Memory, 300% increase 60 Cores, 50% increase Targeted query workloads patterned for large sequential data sets Better performance out of the box with less effort 200% higher database throughput = 40% lower application costs Include enhancement with IBM eXFlash Memory Channel Storage in 3Q14 IOPS increase, yet latency is not negatively impacted highly-scalable form factor that provides greater performance and granular capacity growth Continued unique GPFS scale out, high availability, and disaster recovery capabilities Expanded RAS capability Increased Data reliability and system availability

© 2014 IBM Corporation 9 IBM System x Solution for Microsoft Hyper-V on X6 Enabling enhanced performance and availability for business critical applications Easy to implement virtualization solution delivers high performance, failover reliability, and increased agility Key FeaturesCustomer Benefits Accelerate virtualization implementation with pretested hardware configurations Get faster time to value saving time on configuration, setup, testing, and tuning Streamlined infrastructure planning due to predefined capacity and integrated management for virtual machines and infrastructure deployment Deploy faster lowering costs and saving resources High degree of service availability through automated load balancing and extended X6 RAS capabilities Reduced risk of downtime Lower total cost of ownership Include enhancement with IBM eXFlash Memory Channel Storage in 3Q14 Support several times more virtual machines per server without service degradation Highly-scalable form factor that provides greater performance and granular capacity growth

© 2014 IBM Corporation 10 IBM System x Solution for VMware vCloud Suite on X6 Proven configuration, pre-tested and orderable Combining highly reliable IBM System x servers with VMware virtualization/Cloud SW for building an effective private cloud. Key FeaturesCustomer Benefits Pre-configured private cloudProven configuration, defined and tested Management and installation Easier to order, setup & use Less IT administration & overhead Faster time to value Hardware platform: trusted, efficient System x servers Outstanding reliability and uptime: 98% of System x servers had fewer than 4 hours of downtime in 2013, beating HP, Dell, and Oracle 1 Key value differentiatorsValidate technical architectures Demonstrate System x provides the best platform for VMware vCloud Suite SW Orderable configuration IBM and VMware part numbers identified

© 2014 IBM Corporation 11 Geared for Big Data, High Uptime, & Speed  Data mirroring across two identical servers for continuous uptime  Reference Architecture on System x rack servers  Key verticals: Finance, Healthcare, Building Automation, Manufacturing, Retail Purpose Built for Big Data  Up to 14 x 3.5” drives and 56 TB industry-leading storage for big data and storage-rich applications  Energy efficient features for energy cost savings ̶ Platinum Plus power supplies, wide ambient operating temperature range  High performance: Intel Xeon E v2 processor, up to MHz ̶ Up to 12 cores per CPU, 30 MB cache Big Data DatabaseCloud System x3630 M4, x3530 M4 Enhanced Enhanced with Intel E v2 processors for up to 21% increased performance 1 & 25% more cores for faster business decisions x3630 M4x3530 M4 Anc:1/16/14 GA:2/12/14 Anc:1/16/14 GA:3/14 IBM System x Reliability Solution for Stratus everRun Enterprise Industry-leading downtime prevention software from Stratus on resilient System x platforms – IBM exclusive Anc:1/16/14 IBM System x3650 M4 BD Server Big Data storage server. Optimal blend of performance, uptime, and ample low-cost storage in 2U 2-socket form factor. Cost-Effective Storage-Rich Server Compact 2S 1U Rack Server with Room to Grow Web Serving/ Video

© 2014 IBM Corporation 12 Business Requirements are Driving the Need for Software Defined Environments Simpler Faster Lower cost Organizations are adopting Software Defined Environments to: Accelerate business execution Enable agile response to dynamic business needs Lower IT costs to fund innovative solutions Automated workload orchestration and real-time IT optimization Policy Enforcement Analytics Patterns Manual

© 2014 IBM Corporation 13 Software Defined Environments provide the next generation of infrastructure automation for real-time response Software Defined Environment  Virtualized, integrated & programmable infrastructure  Elastically scalable resources available on-demand  Intelligent resource scheduling  Infrastructure that captures workload requirements and deployment best practices  Policy-based automation across infrastructure  Analytics to optimize the environment in real-time Resource Smart ComputeStorageNetwork Application Aware DefinitionPatternsAnalytics Resource Smart dynamically allocates infrastructure based on policies Application Aware understands the unique workload requirements

© 2014 IBM Corporation 14 IBM Software Defined Environment Vision Next Generation Automation for Cloud Open platform to automate use of on premise and on Cloud resources – compute, storage and networking Analytics driven optimization of Software Defined resources - to best meet business needs defined with the application Built on open APIs, tools and technologies to maximize client value, skills availability and easy reuse across the Hybrid Cloud environment Pattern and policy based orchestration of workload and infrastructure - to optimize performance and efficiency

© 2014 IBM Corporation 15 Customer pain points with OpenStack adoption How to place workloads for optimal QoS? How to migrate VMs as conditions change? How to reduce power consumption? Guarantee capacity for planned workloads? How share resources among competing tenants? How to optimally use software licenses? Improve automation to reduce administration effort? Two key limitations:  Static allocation decisions  Deals with initial placement only – no ongoing optimization

© 2014 IBM Corporation 16 The need for smarter scheduling Static, simple scheduling leads to sub-optimal allocation: Some hypervisors under-utilized  Waste of resources  Over-provisioned infrastructure  Excess power, cooling & facilities  Requires administrator attention  Risk of human error and further issues Hypervisor idle capacity Hypervisor Other hypervisors over-loaded  Poor application performance  Application outages / downtime  Increased support costs  Requires administrator attention  Risk of human error and further issues

© 2014 IBM Corporation 17 What is IBM Platform Resource Scheduler?  Provides dynamic resource management for IBM OpenStack clouds  Higher quality of service  Improved application performance  More flexible resource selection  Automated management  Reduce Infrastructure costs  Intelligent placement – automated, on-going resource optimization  Optional add-on product sold with IBM SmartCloud Entry, IBM SmartCloud Orchestrator, PowerVC, and future SDE offerings  Full compatibility with the Nova APIs and fits seamlessly into OpenStack environments

© 2014 IBM Corporation 18 IBM Software Defined Networking IBM offerings for building Virtual Networks based on Overlay technology on top of clients existing networks IBM SDN VE, VMware Edition – Announce 2Q 2013 –Dec. Update to support VMware v5.5 –Jan. Update management console to use unified SDN Controller management console IBM SDN VE, KVM Edition – Announce Jan 2014 –Provides IBM with more of an Open Linux Approach IBM designed Controller for building and managing OpenFlow networks IBM SDN VE, OpenFlow Edition – Announce Jan 2014 –Provides Logical Layer 2 and Layer 3 networks –Flow replication and redirection for network monitoring

© 2014 IBM Corporation 19 Infrastructure Solutions Summary To improve the economics, performance and efficiency of all IT Services To Drive Business Transformation Big Data Cloud Infrastructure Matters Platform Resource Scheduler