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IBM Project Big Green

Pat Toole General Manager IBM zEnterprise. IBM Project Big Green. The data center continues to face major challenges. Server sprawl & management complexities. High energy consumption. Security & availability exposures. Rising software licensing costs.

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IBM Project Big Green

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  1. Pat Toole General Manager IBM zEnterprise IBM Project Big Green

  2. The data center continues to face major challenges Server sprawl & management complexities High energy consumption Security & availability exposures Risingsoftware licensing costs Increasing transaction volatility High energy consumption

  3. V V V V IT Infrastructure Evolution: the optimization challenge Sprawl Integration Consolidation Pooling Public Cloud Private Cloud Services A smarter infrastructure IT Simplification • Non-standard hosting offerings • Insufficient guidance on application placement & services • Applications duplication • Idle processing & capacity • Standard offering catalog • Application and Server Inventory • IT services management and Control • Cloud Infrastructure • DC consolidation/virtualization

  4. Driving ITtransformation at IBM… Changes in world markets • Focus on open technologies and high value solutions for the digital age and beyond • Deliver innovation and integration to clients • Become the premier Globally Integrated Enterprise Changes ininformationtechnology Changes in client needs 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2012 Gerstner era 1993 - 2002 Palmisano era 2003 - 2011 Rometty era 2012+

  5. IBM Project Big Green Creation of the Green Data Center Unlock newIT efficiencies to make more resources available to fund investments & growth Consolidate and optimize to dramatically reduce total cost of ownership (TCO) Improve efficiency of migrations while reducing requirementfor migration Enhance protection against new security risk

  6. Strategic Growth Sites Strategic Special Purpose Strategic Special Purpose – DR site IBM Project Big Green 155 Data Center consolidation to optimize hosting resources throughout the world Reduce energy demands, software and systems support costs Enable virtualization capability Consolidation of 15,000+ Servers worldwide

  7. IBM Project Big Green How we did it • Analyzed each platform to determine the right default platform • Analyzed each workload to determine best fit platform • Consolidated workloads and systems utilizing zEnterprise and Linux for best cost efficiency • Created centralized and integrated management system • Leveraged Cloud to share resources, rapid scaling & self-service

  8. Why IBM zEnterprise and Linux? zEnterprise and Linux = the ideal enterprise private cloud Centralized management with thousands of virtualized servers in one system Integrationof workloads with built-insecurity, availability & disaster recovery Opportunities for cost reduction through consolidation of distributed workloads (Software licensing, floor space, energy consumption) Analytics on zEnterprise has provided more than $20M savingsandhas provided over $300 millionof business value over 5 years

  9. TCO Comparison for Similar Distributed Workload vs: System z Linux resultsin 60-75% Cross Cost Savings / 5 years Why IBM zEnterprise and Linux?

  10. Why IBM zEnterprise and Linux? z + Linux redefinesIT economics $132 $48

  11. z Delivers IT efficiency and innovations for clients • 80 percent reduction in environmental costs including power, cooling and floor space Saved $46 million through consolidation Avoids USD $1.5 million per year in energy costs • private cloud on IBM System z enables speed, reliability and efficiency of services it offers to Sicoob members Avoidedmulti-million dollar data center expansion • Unmatched scalability with 24X more scale than x86 and up to 100,000 virtual servers

  12. IBM Project Big Green The Impact Average migration: 200 days, $43K per server to 90 days, $12K per server Retired servers (server subset): 25% of servers to 42% of servers $1.75B IT savings since 2005 80% energy cost savings and 85% floor space reduction 16,000 applications to 3800

  13. Strategic Growth Sites Strategic Special Purpose Strategic Special Purpose – DR site IBM Project Big Green Consolidated 155 datacenters to 3 Strategic Growth datacenters 10,000+ servers consolidated since 2008

  14. Driving environmental savings Total servers consolidated to date over 10,000+ Servers consolidated 2012 alone 1,700 Energy savings >30k MWh per year Reduction in floor space 103,000 square feet Recognized as Industry Leader Awarded $1.6M in energy efficiencyincentives for its work in the states of New York and Colorado

  15. Reduction of TCO Highest TCO savings with Linux on zEnterprise >70% Average utilization increased from <10% to 60% (greater than 90% on z) Average reduction in TCO of 70% Total cost take-out across 6,500 migrations is ~ $50M Total cumulative savings project to date ~$100M IT savings since 2008 Highest average TCO savings achieved with migrations from UNIX to Linux on z~Nearly $10,000 per server per year

  16. Optimized workload deployment Average utilization of System z production servers is >70% System z delivers the highest ROIandbiggest reduction in TCO of any target platform - 60% of total cumulative savings Migrations to System z reduce labor requirements by 50%, freeing up resources for new services

  17. Pacing towards to the Enterprise Hosting Services ENTERPRISE HOSTING SERVICES (2013-2015) • Global Hosting Options (GHO): a base hardware / operating system service (not an offering) providing virtualized AIX capacity on System p – never full deployed as a global service 1990’s – 2012 – Offerings focused on technology • Web • SAP • Domino • MVS • Global Storage Architecture (GSA) : official offering for all shared file system, Storage Area Network, and backup/TSM needs. GSA-file provides basic HTTP application capabilities. • Common Development & Test (CDT) : offering for test/development needs associated with GWA, expanded to included AHE in 2004 (located in Toronto). • Innovation Hosting Environment (IHE) : IBM CIO subsidized (free) hosting for early adopter / proof-of-technology efforts/applications. Not run or hosted by IGA or ITD. 2010 2007 • Out-of-profile (OOP) – not an offering, label applied to “everything else” .ie CHS, Events, SWE, DHE, DST, etc • Simplified Service Catalog – Service Packages, Flexible self service options • Hardening Core Infrastructure Services, data centre and resources consolidation 2005 2006 • Entry Level Hosting (ELH): India based hosting for in country focused simple appsbased on AHE/GHO architectures 2004 • Application Hosting Environment (AHE) : and end-to-end hosting offering for web applications - originally built as future base “on demand” offering, intended to sunset GWA • zLinux (aka GHOz): a base hardware/operating system service providing the “distributed” Linux operating system on “mainframe” / System z hardware 2001 • SAP : offering for all SAP application service needs 1997 • Global Web Architecture(GWA) :original hosting offering for web applications – being sunset/replaced by AHE 1996 1995 • Global Notes Architecture(GNA): hosting offering for pure notes client applications 1990 • Host Z(OS/Z VM): offering for all pure “host”/mainframe needs

  18. Leverage IBM experience and capabilities to accelerate value and innovation Reduce TCO to decrease cost of new and existing IT operations Reduceenergy, software and system support costs Speed deployment of resources for accelerated and efficient service delivery Leverage IBM migration methods and experience to reduce cost and complexity of workload migrations

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