Enterprise Cloud System Trusted Cloud Simply Delivered Steven

Enterprise Cloud System Trusted Cloud, Simply Delivered… Steven Dickens Cloud Offering Manager @Steven. Dickens 3 © 2015 IBM Corporation 1 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. Please get final/announced version of this presentation from the Sales Kit before presenting to customers.

Spolier Alert The next few charts will be wordy and will mean that you have to read text, sorry I could not draw pretty pictures to tell this story… © 2015 IBM Corporation 2 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

Hidden Costs of Cloud Computing… From a management perspective, the top cloud computing concerns are: 1. Poor end user experience due to performance bottlenecks (64 percent). 2. The impact of poor performance on brand perception and customer loyalty (51 percent). 3. Loss of revenue due to poor availability, performance, or troubleshooting cloud services (44 percent). 4. Increased costs of resolving problems in a more complex environment (35 percent). 5. Increased effort required to manage vendors and service level agreements (23 percent). http: //www. compuware. com/content/dam/compuware/apm/assets/whitepapers/WPCostof. Cloud. pdf © 2015 IBM Corporation 3 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

The rise of cloud insurance… § Data is not covered by standard property insurance policies § Downtime is not covered by standard business interruption insurance § Most cyber crime attacks are not covered by standard property or crime insurance policies § Third party data is valuable and you can be held liable if you lose it § Retailers face severe penalties if they lose credit card data § Complying with breach notification laws costs time and money § Your reputation is your number one asset, so why not insure it? § Social media usage is at an all-time high and claims are on the rise § Portable devices increases the risk of a loss or theft § It’s not just big businesses being targeted by hackers, but lots of small ones too… http: //www. mspalliance. com/wp/wp-content/uploads/2008/11/Cyber 10 Reasons. pdf http: //www. forbes. com/sites/reuvencohen/2013/04/24/new-cloud-computing-insurance-trys-to-solve-cloud-liability-concerns-for-service-providers/ © 2015 IBM Corporation 4 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

Cost of Data Breach… § On average the cost of a data breach for an organization represented in the study increased from $5. 4 million to $5. 9 million. § The cost per record increased from $188 to $201. We define a record as information that identifies an individual whose information has been compromised in a data breach. § More customers terminated their relationship with the company that had a data breach. § The average abnormal churn rate between 2013 and 2014 increased 15 percent. http: //public. dhe. ibm. com/common/ssi/ecm/en/sel 03017 usen/SEL 03017 USEN. PDF © 2015 IBM Corporation 5 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

AWS Terms and Conditions… Monthly Uptime Percentage” is calculated by subtracting from 100% the percentage of minutes during the month in which Amazon EC 2 or Amazon EBS, as applicable, was in the state of “Region Unavailable. ” Monthly Uptime Percentage measurements exclude downtime resulting directly or indirectly from any Amazon EC 2 SLA Exclusion (defined below). “Region Unavailable” and “Region Unavailability” mean that more than one Availability Zone in which you are running an instance, within the same Region, is “Unavailable” to you. “Unavailable” and “Unavailability” mean: For Amazon EC 2, when all of your running instances have no external connectivity. For Amazon EBS, when all of your attached volumes perform zero read write IO, with pending IO in the queue. A “Service Credit” is a dollar credit, calculated as set forth below, that we may credit back to an eligible account. Service Commitments and Service Credits are calculated as a percentage of the total charges paid by you (excluding onetime payments such as upfront payments made for Reserved Instances) for either Amazon EC 2 or Amazon EBS (whichever was Unavailable, or both if both were Unavailable) in the Region affected for the monthly billing cycle in which the Region Unavailability occurred in accordance with the schedule below. Monthly Uptime Percentage Less than 99. 95% but equal to or greater than 99. 0% Less than 99. 0% Service Credit 10% 30% © 2015 IBM Corporation 6 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

What issues are Clients and MSP/CSP’s trying to solve… Providing Qo. S in a multi-tenant world Handling Usage Peaks Secure Access to Data for Mobile Workforce Delays in Rolling out New Services Offering differentiated services to drive profits Dev Ops and Agile but with Service Switching CAPEX to OPEX Move from Service Credit to Service… Application Downtime Low Server Utilization Noisy Neighbours Power / Space Constraints © 2015 IBM Corporation 7 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

z 13 Capabilities Up to 10 TB Memory on z 13 Improves consolidation ratios GDPS for Linux on z Systems Disaster Recovery solution for mission-critical workloads SMT 2 technology on z 13 Improves performance and throughput of workloads KVM New industry-standard hypervisor (SOD) Increase in # of LPARs on z 13 Improves TCO and Qo. S Cloud Manager w/ Open. Stack V 4. 2 Heterogeneous platform management from System z Private Cloud Hybrid Cloud Elastic Storage for Linux on System z Enables new class of workloads Public Cloud © 2015 IBM Corporation 8 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

Performance delivered through multiple dimensions • • • Hardware/ software integration leads to richer optimization 40% more total capacity 2 X performance boost for cryptographic coprocessors 2 X increase in channel speed 2 X increase in I/O bandwidth 3 X increase in memory 2 X increase in cache • Lower cloud cost • Faster fraud detection • More scale for mobile transactions • Faster data sharing between systems • Less exposure to regulatory penalties • Faster decision making with data-in-memory © 2015 IBM Corporation 9 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

Z 13 the platform for Enterprise Grade Linux GDPS Virtual IBM GPFS Appliance* z. Aware Unprecedented Linux Performance 10 TB Memory Exploitation of SMT 85 LPARs 2 x Faster I/O Enabling Open Source Services Open DB, Tooling, and Management Support * * All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. © 2015 IBM Corporation 10 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

Balanced System Design I/O and coprocessors bring added compute power to workloads Up to 141 cores on a CPC Up to 27 cores for offload system processing Plus up to 640 POWER cores: I/O and Coprocessors 24 SAPs 2 Spares 1 IFP • Share up to 141 processors with up to 85 LPARS • Configure the processors as CPs, IFLs, z. IIPs, or ICFs © 2015 IBM Corporation 11 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. Please get final/announced version of this presentation from the Sales Kit before presenting to customers.

IBM tools for every stage of the cloud journey Customer Challenge Diversity leads to cost Manual process Time to deploy Customer Challenge Operating in Silo’s No central point of control Low server utilization WORKLOAD PATTERN DEPLOYMENT SELF SERVICE AUTOMATION STANDARDIZATION VIRTUALIZATION Customer Challenge Shorter test cycles Reduced provisioning time Reduced license management IBM Cloud Orchestrator End-to-end process management Workload level deployment Public/Private Cloud management Cloud Manager for Open. Stack Open standards support Works with existing tools Consistent delivery model IBM Wave Single point of management Simple user interface Speed of deployment © 2015 IBM Corporation 12 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

z 13: Redesigned for Efficient and Trusted Cloud Up to 8, 000 virtual servers per system, more than 50 per core Open virtualization with new KVM support (SOD)* z 13 brings faster processing and higher throughput of secure transactions (2 X more throughput on crypto coprocessor) Business continuity and IT analytics with enterprise grade Linux solution Open support extended with Open. Stack, Postgre. SQL, Node. JS, and KVM (SOD) 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 x 86 architectures Enabling next generation cloud applications with IBM Bluemix on z Systems * All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. © 2015 IBM Corporation 13 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

Z 13 TCO by the numbers… 68 for 6 Mainframes account for 68% of production workloads, but only 6% of IT spend 32 and 60 35 and 3 x Mainframe organizations demonstrate an average of 35% lower IT Cost of Goods; and computational growth roughly 3 x more economically efficient Superior cloud services at up to 32% lower cost than x 86 and up to 60% less than public cloud alternatives © 2015 IBM Corporation 14 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

Z 13 TCO by the numbers… 64 Light Workloads (128 VMs) 32 Medium Workloads (64 VMs) 219 instances Public Cloud $17. 6 M (3 yr TCO) Private Cloud (x 86) 264 x 86 cores $10. 3 M (3 yr TCO) 27 Heavy I/O Workloads (27 VMs) 123 workloads (219 VMs) Performance comparison based on IBM Internal tests comparing IBM z 13 cloud with one comparably configured private x 86 cloud and one comparably configured public cloud running an aggregation of light, medium and heavy workloads designed to replicate typical IBM customer workload usage in the marketplace. System configurations are based on equivalence ratios derived from IBM internal studies and are as follows: Public Cloud configuration: total of 219 instances (128 for light workloads, 64 for medium workloads and 27 for heavy workloads); x 86 Cloud configuration: total of eleven x 86 systems each with 24 Intel E 7 -8857 v 2 3. 0 GHz cores, 512 GB memory, and 7 x 400 GB SSDs; z 13 Cloud configuration: total of 32 IFLs, 3806 GB memory, and Storwize v 7000 with 47 x 400 GB SSDs. Price comparison estimates based on a 3 YR Total Cost of Ownership (TCO) using publicly available U. S. prices (including a 20% discount for middleware) current as of January 1, 2015. Public Cloud TCO estimate includes costs (US East Region) of infrastructure (instances, data out, storage, support, free tier/reserved tier discounts), middleware and labor. z 13 and x 86 TCO estimates include costs of infrastructure (system, memory, storage, virtualization, OS, cloud management), middleware, power, floor space and labor. Results may vary based on actual workloads, system configurations, customer applications, queries and other variables in a production environment and may produce different results. Users of this document should verify the applicable data for their specific environment. Cloud on z (z 13) 32 IFLs $7. 0 M (3 yr TCO) 32% less than x 86 cloud 60% less than public cloud © 2015 IBM Corporation 15 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

Cloud on z 13 gives the lowest cost System configurations are based on equivalence ratios derived from IBM internal studies. Prices used are published US prices as of 1/1/2015 for both IBM and competitors. Public cloud case includes costs of infrastructure (instances, data out, storage, support, free tier/reserved tier discounts), middleware and labor. z 13 and x 86 cases include costs of infrastructure (system, memory, storage, virtualization, OS, cloud mgmt), middleware, power, floor space and labor. . © 2015 IBM Corporation 16 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

z 13 the perfect platform for public, private and hybrid… IBM z Systems Cloud Type Public Multi-tenant environment where compute resources are purchased in desired increments Private Internally owned, deployed and controlled compute resources Hybrid Uses a mix of private, dedicated IT resources in conjunction with public infrastructure Enabling MSPs/CSPs to deliver differentiated mainframe-based service offerings Linux onon System z and Linux System z z/OS asz/OS the foundation and as the of the most secure, foundation of the scalable mostprivate secure, cloud infrastructure scalable private cloud infrastructure Leveraging Blue. Mix and interoperability with Soft. Layer, AWS and other public cloud offerings © 2015 IBM Corporation 17 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

Enterprise Cloud System… Standard Linux Environment • Red Hat/SUSE • 3000+ Applications Fully Automated Cloud Orchestration & Monitoring IBM Deployment Expertise done in the factory with on -site personalisation Factory Integrated Delivered in ½ time of other Integrated Systems* Pre-tested, pre-configured. . • 1 8 z. EC 12, z. BC 12 and z 13 compute in any config Storwize V 7000 or DS 8870 in any config Cloud Orchestrator Omegamon for z/VM TSM Operations Manager Backup Manager IBM Wave Scale up to 8000 VMs Industry Leading Availability EAL 5 security © 2015 IBM Corporation 18 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. Please get final/announced version of this presentation from the Sales Kit before presenting to customers.

Enterprise Cloud System Converged Infrastructure-as-a-Service solution, providing a highly available, secure, cloud platform based on System z technology § Pre-configured and integrated system – Includes Processor, Disk, Hypervisor, Cloud Management Software and Services – Pre-installed cloud management software that leverages open source such Open. Stack and Linux to deliver orchestration, provisioning and monitoring – Integration performed at IBM’s Customized Solution Center and onsite by STG Lab-Based Services § Flexible configurations – No fixed sizes - flexibility on hardware configurations allow customers to choose the right amount of resources for their workload – Sample configurations will be provided to Sales Team as guidance and comparison Linux Guests Virtualization Management LPAR I/O and Network IFLs Memory © 2015 IBM Corporation 19 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

What is included in Enterprise Cloud System Enterprise Linux Server Storage or or or Storwize V 7000 Z Systems z 13 z Systems EC 12 DS 8870 Z Systems BC 12 Services Software § z/VM with following priced features: - Directory Maintenance - Resource Access Control Facility - Performance Toolkit - Single System Image § IBM Wave for z/VM § OMEGAMON XE on z/VM and Linux § Tivoli Storage Manager Extended Edition § Cloud Manager with Open. Stack § Operations Manager for z/VM § Backup and Restore Manager for z/VM § RHEL or SLES Linux for System z § Integration Services - Performed by WW Customized Solutions Center in Poughkeepsie, NY - Will integrate server and storage devices and pre-install software prior to shipment to the customer § On-Site Personalization Services - Performed by STG Lab Based Services to complete SW installation and personalize Enterprise Cloud System for the customer © 2015 IBM Corporation 20 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

Dank u Merci Dutch ﺷﻜﺮ Спаcибо French Danke German ������� Arabic Hindi Obrigado Brazilian Portuguese ありがとうございます Japanese ����� Grazie Italian Tamil ������ Thai go raibh maith agat Trugarez Russian Breton תודה רבה Thank You Hebrew děkuji Gracias Spanish Czech Teşekkür ederim Turkish 감사합니다 Korean �� Dankon Chinese Esperanto Tak Danish Tack så mycket Swedish Gaelic © 2015 IBM Corporation 21 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the

AVB… © 2015 IBM Corporation 22 © 2014 IBM Corporation IBM Confidential – This material is for educational purpose only and is NOT customer ready. until Wed, Jan. 14 Sales Kit before presenting to customers. Please get final/announced version of this. Embargoed presentation from the