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Smarter Computing with System z
1.
Smarter Computing
® with IBM System z Steve Mills Senior VP and Group Executive IBM Software and Systems March 23, 2011
2.
Smarter Computing: System
z Analyst Summit Smarter Planet Solutions Increase Demands on IT 1.2 zettabytes (1.2 trillion GB) Internet connected exist in the “digital universe devices growing 50% YTY growth 42% per year 25% of data is unique; 75% is a copy Between 2000 and 2010 … 32.6M servers worldwide servers grew 6x storage grew 69x 85% idle computer capacity Virtual machines growing 15% of servers run 24/7 without 42% per year being actively used on a daily basis Data centers have doubled their energy use in the past but IT budgets are five years growing less than 18% increase in data center 0.8% per year energy costs projected © 2011 International Business Machines Corporation 2
3.
Smarter Computing: System
z Analyst Summit IT Operating Costs are Out of Control Worldwide IT Spending on Servers, Power, Physical Server Cooling and Management Administration Installed Base Spending (Millions) US$ (B) $250 50 Power and cooling costs 45 $200 Server mgmt and admin costs 40 New Server spending 35 $150 30 25 $100 20 15 $50 10 5 $0 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: IDC © 2011 International Business Machines Corporation 3
4.
Smarter Computing: System
z Analyst Summit Resulting Sprawl Drives Unsustainable Costs Cost to Manage Growth of Inventory Consumes IT Budget © 2011 International Business Machines Corporation 4
5.
Smarter Computing: System
z Analyst Summit Strategies to Reduce Costs and Improve Value Optimize the Overall IT Environment Consolidate Hardware Infrastructure Appl Appl Appl Appl SOA Appl Appl Eliminate Redundant Software and Data Compress Deduplicate Integrate Archive Integrated Service Improve Management Service Delivery Visibility Control Automation Cloud Computing © 2011 International Business Machines Corporation 5
6.
Smarter Computing: System
z Analyst Summit Meeting These Challenges Leading clients are already addressing this IT conundrum through: Smarter Computing Strategies to transform IT to deliver breakthrough economics and value © 2011 International Business Machines Corporation 6
7.
Smarter Computing: System
z Analyst Summit IBM Internal IT Infrastructure Evolution IT Simplification Sprawl Consolidated Service Pooling Integration Public Services Cloud Private V V Cloud V V V V V V V Smarter Computing Key Technologies Comprehensive virtualization Service Oriented Architecture Ensembles and scalable servers End-to-end service management Converged networks Cloud computing services © 2011 International Business Machines Corporation 7
8.
Smarter Computing: System
z Analyst Summit IBM IT Transformation = Cost Savings Consolidated and virtualized over 3,900 server images onto 30 System z mainframes 80% less energy used 1997 Today Host Data 155 7 85% less floor space … Centers a 16,500 sq. ft. reduction Web Hosting 80 5 Centers Cumulative benefit yield of Network 31 1 $ 4.1B over the last 5 yrs Applications 15,000 4,700 © 2011 International Business Machines Corporation 8
9.
Smarter Computing: System
z Analyst Summit Optimize Server Utilization Example of IBM Solution Reduce Server Sprawl Automate Processes Reduce # of Data Centers Automation Consolidate Servers Provisioning Server Virtualization Workload Scheduling Asset Management zEnterprise Hybrid workload consolidation Optimize Service Manage Workloads Delivery Delivers the lowest cost per workload for the widest variety of workloads Workload Optimized Integrated Service Systems – Best Fit Management (ISM) Self-provisioned Cloud Services © 2011 International Business Machines Corporation 9
10.
Smarter Computing: System
z Analyst Summit zEnterprise zEnterprise Unified zEnterprise BladeCenter IBM zEnterprise 196 (z196) Resource Manager Extension (zBX) The Next generation of Centralized management of Integrated IBM POWER7 mainframe technology, heterogeneous resources blades and IBM x86 Blades more performance, more for simplification and High performance scale, more efficient resiliency optimizers and appliances Optimized to host large Unifies management of to accelerate time to insight scale database, resources, extending IBM and reduce cost transaction, and mission System z qualities of critical applications service end-to-end across workloads © 2011 International Business Machines Corporation 10
11.
Smarter Computing: System
z Analyst Summit IBM zEnterprise Provides a New Dimension in Cloud Computing Unified management for a Scale out to a trillion The world’s fastest and most smarter system: instructions per second: scalable system: IBM zEnterprise IBM zEnterprise BladeCenter® IBM zEnterprise™ 196 (z196) Unified Resource Manager Extension (zBX) (zManager) Broad Network Resource Pooling Access 1000s of virtualized systems Very large number of end across a heterogeneous user access from multiple resource pool sources including mobile devices Rapid Elasticity Measured Service A new dimension of Meter, monitor, and track Scale. Most efficient workloads for chargebacks platform for Large-scale and capacity expectations Linux consolidation On Demand Self-Service Automate provisioning and service requests reducing provisioning cycles from weeks to minutes © 2011 International Business Machines Corporation 11
12.
Smarter Computing: System
z Analyst Summit A Look Inside the zEnterprise System System z Hardware Management Console (HMC) System z Host Select IBM Blades Optimizers IBM Smart Analytics Optimizer with Unified Resource Manager z/TPF z/VSETM Future Offering Future Offering Linux DataPower 1 Linux on AIX on z/OS Linux on on System x 1 POWER7 System z System z z/VM Blade Virtualization Blade Virtualization System z PR/SM™ z HW Resources Blade HW Resources Support Element zBX Private data network (IEDN) Unified Resource Private Management Network INMN Manager Private High Speed Data Network IEDN Customer Network Customer Network 1 All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only. © 2011 International Business Machines Corporation 12
13.
Smarter Computing: System
z Analyst Summit IBM zEnterprise Lowering TCO of Distributed Workloads Through Optimal Platform Selection Optimize distributed work on zEnterprise with Linux on System z, POWER7 blades and Intel blades with Unified Resource Manager Current data center: Distributed workloads on a variety of Intel servers, connected to a System z Lower cost of acquisition by up to 56%* Reduce cost of ownership by up to 55%* • Based on IBM analysis of a large Financial Services company Datacenter. See details on ibm.com/systems/zenterprise/ • Deployment configurations based on IBM studies and will vary based on workload characteristics. Price calculations based on publicly available US list prices, prices will vary by country. © 2011 International Business Machines Corporation 13
14.
Smarter Computing: System
z Analyst Summit The Cost of Duplicating a 2TB Database Duplicated Enterprise Data WAN 2TB 2TB Cost of storage for send file Cost of storage for receive $12.33/GB x 2048 GB $25,252 Annual Additional file and data mart $61,112 System z Storage Admin Infrastructure Costs $14.92/GB x 2048 GB x 2 copies $12,042 $5.88/GB/yr x 2048 GB Distributed Storage Admin $151,613 $12.99/GB/yr x 2048 GB x 2 copies $53,207 System z CPU cost ETL $2,826 On Premises Network Distributed CPU cost ETL $1.38/GB x 2048 GB $20 $799 $0.0024/GB x 2048 GB x 4 hops $0.39/GB x 2048 GB System z CPU cost FTP $1,188 Off Premises Network Distributed CPU cost FTP $0.58/GB x 2048 GB $1,188 $96 $0.29/GB x 2048 GB x 2 hops $0.05/GB x 2048 GB System z ETL Labor $9 Distributed ETL Labor $9.33/job Cost per Transfer $14.00/job $14 System z FTP Labor $5.88/job $6 $6,146 © 2011 International Business Machines Corporation 14
15.
Smarter Computing: System
z Analyst Summit Annual Costs of Duplicating 3 Data Marts Off Platform Original System z Storage Costs (1 year) Cost of original storage $25,252 2TB Storage administration $12,042 TOTAL $37,294 Enterprise Cost of Duplication WAN (3 marts, once per day, 1 year) Additional z Storage $25,252 2TB Additional Dist Storage $550,011 CPU cost ETL z and Dist $3,969,331 Off premise network $1,406,085 On premise network $1,322,213 Storage admin z $12,042 Storage admin Dist $159,621 2TB Labor ETL $1,046,378 2TB Duplicate Labor FTP $263,725 once per day TOTAL $8,754,659 Original Data Duplicated Data © 2011 International Business Machines Corporation 15
16.
Smarter Computing: System
z Analyst Summit zEnterprise Reduces Network Cost and Complexity 25 heavy Deploy on Intel workloads Best Fit on z Enterprise 240 heavy I/O 235 light Workloads workloads Additional network parts Additional network parts 16 340 308 1 10 10 switches cables adapters switch cables adapters 664 total network parts 21 total network parts $0.2M TCA $0.03M TCA Network configuration is based on IBM internal studies. Prices are in US currency, prices will vary by country © 2011 International Business Machines Corporation 16
17.
Smarter Computing: System
z Analyst Summit SAP Applications Cost 20% Less on zEnterprise 20 front-end SAP 38 SPARC T3-1B applications on older Blades in SUN Rack SPARC T2+ servers 608 cores total T3-1B z196 20 Upgrade to $1.2M Workloads new 3yr TCA SPARC T3 HW+SW 20% Less 20 z196 23 POWER7 SPARC T5440 32 core servers Blades in zBX 538,120 total SAPs 184 cores total zBX z196 640 cores total $3.4M POWER $0.97M Blades in 3yr TCA zBX HW+SW © 2011 International Business Machines Corporation 17
18.
Smarter Computing: System
z Analyst Summit Running Web Front End Workloads Cost 58% Less Competitive 28 front-end Application Server applications on older 57 SPARC T3-1B SPARC T2+ servers Blades in SUN Racks 2 HP DL380 Servers (for ESB) T3-1B DL380 z196 28 Workloads 936 cores total Upgrade to $11.7M each driving new 3yr TCA 1,975 tps SPARC T3 HW+SW 58% Less 28 z196 SPARC T5440 WebSphere 32 core servers Application Server 2 HP DL380 Servers 28 POWER7 Blades zBX z196 (for ESB) 2 DataPower X150z $23.7M in zBX POWER $4.9M Blades in 3yr TCA 224 cores total zBX HW+SW 18 © 2011 International Business Machines Corporation
19.
Smarter Computing: System
z Analyst Summit Linux on z196 is the Most Efficient Platform for Large-scale Consolidation Lower acquisition costs of hardware and software vs. distributed servers – 74% less than Nehalem* Less than $335 per year per virtual server (TCA)* Reduce floor space by up to 90% compared to distributed servers* Reduce labor costs by up to 70% compared to distributed servers Consolidate 40 Oracle server cores onto 2 Linux cores on zEnterprise Consolidation on System z $2.0 US$ Millions $1.5 39% less than Nehalem $1.0 Hardware Maintenance 74% less than Hardware $0.5 Nehalem Software Service & Support Software OTC $0.0 New X86 z10 z196 * Distributed server comparison is based on IBM cost modeling of Linux on zEnterprise vs. alternative © 2011 International Business Machines Corporation distributed servers. Given there are multiple factors in this analysis such as utilization rates, application 19 type, local pricing, etc., savings may vary by user.
20.
Smarter Computing: System
z Analyst Summit zEnterprise Broadest Architectural Support for Private Clouds Fit-for-Purpose z/OS Linux on AIX on Power Appliance Linux on System z Blades Blades System x Strategy Blades* Workload Workload Workload Workload Workload Assign workloads to the environment Linux that best satisfies Image requirements z/OS z/VM AIX Linux Integrated Service zEnterprise z196 zEnterprise BladeCenter Management Extension (xBX) Visibility Control Automation Achieves overall lowest cost per workload © 2011 International Business Machines Corporation 20
21.
Smarter Computing: System
z Analyst Summit Public versus Private Cloud Which Option Costs Less for Delivering Mixed Workloads? Light Intel Public workloads 400 Workloads Cloud Heavy Unix workloads 42 Workloads Private Cloud Light workloads with heavy I/O 408 Workloads 850 workloads zEnterprise © 2011 International Business Machines Corporation 21
22.
Smarter Computing: System
z Analyst Summit Compare Server Cost of Acquisition 400 42 408 Workloads Workloads Workloads Deployed on Public Cloud Best Fit on zEnterprise Public Private Cloud Cloud 84% 850 Less Compute Instances zEnterprise $48.5M TCA (3years) 32 IFL’s, 7 Intel Blades, 13 POWER Blades 192 cores Server configurations are based on consolidation ratios derived from IBM internal studies. Prices are in US currency, prices will vary by country $7.5M TCA (3years) 22 © 2011 International Business Machines Corporation
23.
Smarter Computing: System
z Analyst Summit Compare Labor Cost for Three Years 400 42 408 Workloads Workloads Workloads Deployed on Public Cloud Best Fit on zEnterprise Public Private Cloud Cloud 18% Less 18,115 labor hours / year 8.71 administrators 11,806 labor hours / year $4.17M 5.67 administrators 3 years@ $160K per year Configuration based on IBM internal studies. Labor model based on customer provided data from IBM studies. Labor rates will vary by country $3.44M* *Includes acquisition costs for zManager and Tivoli 3 years@ $160K per year 23 © 2011 International Business Machines Corporation
24.
Smarter Computing: System
z Analyst Summit Fit-for-Purpose Private Cloud on zEnterprise Dramatic Reduction in Costs $242K Three Year Cost per 79% lower Workload / Image overall TCO (US$) Public cloud Private cloud with zEnterprise $72.4K $79.4K $44.6K $9.2K $15.3K Light Intel Heavy UNIX Workloads with Workloads Workloads Heavy I/O Source: IBM internal study. zEnterprise configurations needed to support the three workload types were derived from IBM benchmarks. Public cloud sizing needed to support the three workload types was calculated based on compute capacity of public cloud services. 3 yr TCO for public cloud calculated using web-based calculator made available by the service provider. 3 yr TCO for zEnterprise includes hardware acquisition, maintenance, software acquisition, S&S and labor. US pricing, prices will vary by country. © 2011 International Business Machines Corporation 24
25.
Smarter Computing: System
z Analyst Summit Accurate Cost Allocations Show a True Picture of Costs and Aid Investment Decisions - an example: Best practice allocation should use actual distributed and mainframe costs In this example, the mainframe allocation decreased from 71% to 40% Typical Allocation – Best Practice Allocation – Management Estimates Actual Costs Distributed % Mainframe % Distributed % Mainframe % Power Cost 0 0 $15,084 100 $11,917 79 $3,167 21 Labor Cost 0 0 $350,000 100 $210,000 60 $140,000 40 Floor space 0 0 $11,620 100 $6,300 54 $5,320 46 Software OTC $120,240 60 $102,472 40 $216,194 97 $6518 3 depreciation Software S&S $168,783 50 $168,783 50 $181,242 54 $156,325 46 and MLC Hardware OTC $103,691 25 $311,074 75 $184,435 44 $230,330 56 depreciation Hardware $20,276 25 $60,829 75 $37,151 46 $43,953 54 Maintenance Network 0 0 $4,758 100 $ 4,758 100 $0 0 Total $412,990 29 $1,024,620 71 $851,997 60 $585,613 40 Based on IBM analysis of customer data. Individual customer results will vary. Total $1,437,610 Total $1,437,610 © 2011 International Business Machines Corporation 25
26.
Smarter Computing: System
z Analyst Summit BlueCross BlueShield of Minnesota Consolidated 140 HP Intel- architecture servers to a single IBM System z with six Integrated Facility for Linux (IFL) engines Key applications run in SUSE Linux Enterprise servers, while IBM DB2 databases run on z/OS on the “Even without factoring in the maintenance same physical machine and support costs - which would be considerable for a large estate of physical Lead time for server provisioning servers - we found that running a virtualized reduced by 99% Linux environment on System z would be somewhere between 30 and 50 percent New Linux Virtual Servers less expensive than a distributed deployed for test and development architecture.” within 20 minutes - Ted Mansk, IT Director, BCBSM © 2011 International Business Machines Corporation 26
27.
Smarter Computing: System
z Analyst Summit Nationwide Insurance By consolidating workloads onto its System z mainframes’ virtualized infrastructure, Nationwide replaced hundreds of stand-alone servers running several different operating systems $ 15M cost savings over three years 85% – 90% server utilization 80% reduction in environmental costs © 2011 International Business Machines Corporation 27
28.
Smarter Computing: System
z Analyst Summit Bank of New Zealand Consolidated 200 Sun servers down to 1 IBM System z10 running Red Hat Enterprise Linux Reduced data center footprint by 30%, heat output by 33%, and power consumption by close to 40% Only one administrator needed per 200 virtual servers New environments are deployed in minutes, not days © 2011 International Business Machines Corporation 28
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Smarter Computing: System
z Analyst Summit Baldor Electric Company When Baldor acquired a major competitor, it needed to integrate hundreds of servers into its existing infrastructure Baldor consolidated to SAP Business Suite applications, hosted on 70 virtual machines running Linux on an IBM z10 EC server and migrated data to an IBM System Storage DS8100 platform Eliminated hundreds of servers Cut energy costs by 60% Cut IT costs by 50% © 2011 International Business Machines Corporation 29
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Smarter Computing: System
z Analyst Summit Smarter Computing ….. Use of hardware and software technologies to increase operational efficiencies and optimize workload performance while reducing Total Cost of Ownership Doing More for Less © 2011 International Business Machines Corporation 30
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