IBM e Server z Series Oracle SIG Conference

Agenda § § § Business Demands Today z. Series Update What’s New with z/OS

Today's Environment Business Data Web Servers SSL Appliances Database Servers Security & Directory Servers Routers Switches Application Servers Firewall Servers Caching Appliances DNS Servers File/Print Servers LAN Servers UI Data © 2004 IBM Corporation 3

Changing Business Dynamics Increasing Business Model and Process complexity Increasing Workload Unpredictability Increased Alignment of Costs to Business Results Movement from Internal to External Focused Responsive Variable Resilient © 2004 IBM Corporation 4

As Business Becomes More Integrated IT Needs to be Integrated to Support it Autonomic systems that scale Virtualization Open Middleware and Integrated solutions Investment Flexibility © 2004 IBM Corporation 5

IBM has taken today’s business challenges and built a server around them §All new design with the versatility and power to help integrate your business ƒ Broad range of scalability to handle the accelerating pace of information exchange ƒ Optimized to meet the high performance needs of an on demand business §Defining the standard for multi-dimensional virtualization required to meet the demands of today's dynamic business environment §Investment flexibility for the on demand business §Solutions for integrating your business Introducing the IBM ^™ z. Series™ 990 © 2004 IBM Corporation 6 z 990 ANNCOV 010

Balanced Systems Design z. Series servers designed for end-to-end transaction throughput §To achieve a balanced system, you need ƒ High microprocessor performance ƒ Very Large I/O Bandwidth ƒ High speed connectivity ƒ Very high speed intelligent storage servers ƒ Many paths to your data ƒ Performance Management Software §Balance is important ƒ High performance ƒ Maximum throughput ƒ Avoid bottlenecks ƒ High utilization and low TCO © 2004 IBM Corporation 7 z 990 ANNCOV 020

The IBM e. Server z. Series z 990 Cont…. Technology Breakthrough for the on demand business §z 990 – Broad range of scalability and increased performance ƒ New 1 - 32 way high performance server ƒ Expanded memory options - up to 256 GB ƒ Expanded connectivity options - up to 512 Channels ƒ Expanded I/O Bandwidth - up to 96 GB/sec ƒ New model structure –A 08 - 1 to 8 -way –B 16 - 1 to 16 -way –C 24 - 1 to 24 -way –D 32 - 1 to 32 -way §Up to 2. 9 X total system capacity and up to 60% performance improvement over existing IBM ^ z. Series 900 (z 900) © 2004 IBM Corporation 8 z 990 ANNCOV 030

New Design Technology that Grows with You – on demand §NEW Modular Design ƒ Lower cost of entry ƒ Increased investment flexibility ƒ Nondisruptive growth options §New Building Block ƒ Introducing the Book ƒ All new packaging for: –Microprocessors –Memory –I/O connectors TM ® © 2004 IBM Corporation 9 z 990 ANNCOV 040

High Capacity Server New Levels of Scalability for the Dynamic Demands of the on

Getting Connected Driving the Data for the on demand business ® © 2004 IBM

Flexible Upgradeability Protecting Your Investment in z. Series Technology §Increased upgrade flexibility §Fully upgradeable within z 990 models §Any to any upgrade from z 900 to z 990 (except model 100) §IBM ^ z. Series 800 (z 800) and final generations of 9672 can upgrade to z 990 via the z 900 © 2004 IBM Corporation 12 z 990 ANNCOV 200

z/OS 1. 4 Overview § § § § Supporting new z. Series z 990 server technologies Ø 30 logical partitions; Two Logical Channel Subsystems Self-optimizing Ø Improved dynamic balancing of batch workloads across sysplex with Workload Manager (WLM) Ø More granular optimization of Web. Sphere transactions with WLM Security Ø Improved SSL performance – up to 60% improvement over z/OS 1. 2 Ø Enhanced LDAP technology Availability Ø Enabled for 24 x 7 for CICS/VSAM by allowing concurrent batch (DFSMStvs – optional feature) Ø Console message infrastructure enhancements (optional feature) Simplification Ø Easier setup of z/OS functions with enhancements to msys for Setup framework Ø Simplified management of UNIX® System Services (USS) identities Ø Improved usability & performance for z. FS and SMB File/Print Server Ø Look. At provides easy access to z/OS messages via Web e-business networking: Increased scale with IPv 6 support z/OS Service can be shipped via the Internet with Shopz. Series General availability: 9/03 End of ordering: 9/04 End of service: 3/07 © 2004 IBM Corporation 13 z. OSSUM 080

z/OS 1. 5 Overview § Introducing Multilevel Security Ø Single z/OS image for hosting users and applications with different security levels § More security enhancements Ø Performance and manageability enhancements to Public Key Infrastructure (PKI) support Ø Enhanced Intrusion Detection Services § Self-optimizing Ø Simplified WLM control for Web. Sphere § Performance Ø Performance enhancements for DFSORT® using 64 -bit virtual storage § e-business Ø Simplified enterprise wide management of print jobs and printers with Infoprint® Central, a new front-end for Info. Print § Availability Ø Console message architecture improved for higher availability in multi-system environments § Simplification Ø Enhanced internet access to z/OS library with Library Center for z/OS Ø Simplify the customization of RMF™, FTP and ISPF using msys for Setup General availability: 3/03 End of ordering: 9/04 End of service: 3/07 © 2004 IBM Corporation 14 z. OSSUM 090

IBM Mainframe Virtualization Technology Evolution Over 35 Years of Relentless Innovation and refinement • Constantly refined to support modern business requirements • Exploit hardware technology for economical growth • Integrated Facility for Linux, Hiper. Sockets™, Logical Partitioning • Maximize staff productivity • Productivity tools, REXX, Performance Toolkit z. Series – Comprehensive and sophisticated suite of virtualization function © 2004 IBM Corporation 15

z. Series Multi-Dimensional Virtualization: A Complete “Scale out” Solution – “Virtualization is Built In, Not Added On” On demand scale out solutions are composed of multiple distinct and complete dimensions of function: • Application Support Dimension / open, stable • Enterprise applications • Application infrastructure • Robust, stable operating system • Hypervisor Dimension / powerful, flexible • Server maintenance tools • Server operation continuity • Resource control / accounting • Inter-server communication • Hypervisor sharing / virtualization • Hypervisor control program • Hardware Dimension / robust, reliable foundation • Inter-partition communication • Processor resource / peripheral sharing • Logical Partitioning • Hardware optimization for virtual server dispatching • Reliable, Available, Scalable, Secure Hardware © 2004 IBM Corporation 16

New Opportunities to Consolidate Footprints Reducing Your Overall Cost of Ownership §Prior to z 990 this was not possible if: ƒ You needed more than 15 LPARs ƒ You needed more than 256 channels ƒ You needed more capacity than a z 900 -216 ƒ Now with z 990 all of these are now possible §PLUS it is easier than ever before P R D 1 P R D 2 P R D 3 P R D 4 P R D 5 P R D 6 P C F 1 Z V M 1 L N X 1 P R D 7 D E V 1 P R D 8 P C F 2 P R D 9 T S T 1 Z V M 2 L N X 1 120 Channels 170 Channels z 900 -210 z 900 -2 C 8 P R D 1 P R D 2 P R D 3 LCSS 0 P R D 4 P R D 5 P R D 6 P C F 1 Z V M 1 L N X 1 120 Channels D E V 1 P R D 7 P R D 8 P R D 9 P C F 2 T S T 1 Z V M 2 170 Channels L N X 1 LCSS 1 z 990 © 2004 IBM Corporation 17 z 990 ANNCOV 160

What is Linux on z. Series? § A native z. Series operating environment Ø Pure Linux, an ASCII environment • • • Exploits IBM z. Series hardware Linux for S/390 - 32 -bit Linux for z. Series - 64 -bit Ø Not a unique version of Linux § z. Series application sourcing strategy Ø The IBM commitment to z/OS is not affected by this Linux strategy Ø z. Series customers are offered additional opportunities to leverage their investments through Linux Ø New doors are opening for z. Series customers to bring Linuxcentric workloads to the platform © 2004 IBM Corporation 18

z. Series and Linux Address key business issues and competitive pressure Financial Pressures Accelerate Time To Market § § § § Reduce physical plant size Reduce licensing fees Leverage Open Source applications/tools Reduce number of servers Maximize staff productivity Security and Operational Resiliency § § Linux - Reputation for Openness, Security, Stability IBM e. Server™ z. Series® Ø Ø Autonomic initiatives Virtualization Linux for rapid application deployment Wide range of applications, tools, and enablers Increase Revenues § § Rapid response to customer demand = increased market share Leverage existing applications and data to increase customer loyalty Deploy New Capabilities § § Operate your data center as a utility Leverage UNIX®/Linux skill base Simplify Infrastructure Complexity § § § Deploy servers in seconds through virtualization Reduce maintenance complexity share data and programming Integrate existing data and programs quickly and economically © 2004 IBM Corporation 19

OSS/Linux strengths support key customer needs § Business needs Ø Address current budget challenges Ø Enhance security and privacy Ø Improve collaboration of people and organizations Ø Shorten cycle time of business and IT projects Ø Prepare to address uncertain future needs Ø Manage costs and reduce risks over time § OSS/Linux strengths Ø Low acquisition and lifecycle costs Ø Open source permits independent validation Ø Open standards enable interoperation Ø Application availability and scalability Ø OSS model relies on user energy to direct evolution Ø Platform stability and lack of “software monoculture” Vendor and platform independence © 2004 IBM Corporation 20

IBM alliances with Linux distribution partners § Red Hat Ø Red Hat Enterprise Linux 3 www. redhat. com/software/rhel § SUSE Ø SUSE Linux Enterprise Server 8 www. suse. com/us/business/products/server/sles § Cross-platform support of the IBM e. Server family for either Red Hat or SUSE § Customers can obtain remote technical support from IBM for Red Hat or SUSE © 2004 IBM Corporation 21

Fact: Linux is architected for security, Open Source development enhances it § The Open Source development process Ø Darwinian – structured/disciplined Ø Exposed vs. hidden § The US National Security Agency Ø www. nsa. gov/selinux § Linux security web site Ø www. linuxsecurity. com "Security through obscurity is the motto of yesterday, the slogan of today is security through transparency. " Margareta Wold § Common criteria certification Ø SUSE Linux Enterprise Server 8 certified at EAL 3 Ø Red Hat Enterprise Linux 3 undergoing evaluation at EAL 2 © 2004 IBM Corporation 22

Recommendations § § Familiarize yourself with Linux View Linux as a valid alternative for IT systems Incorporate open source software development into IT strategies Look at Linux to see how it can: Ø Lower costs Ø Increase reliability and security Ø Improve service © 2004 IBM Corporation 23

Ideal Mainframe Implementations SAN Scale Out Virtual Blades Z 990 Mainframe Scale Up Mainframe § Unpredictable and highly Transaction Scale Out spikes. Data variable workload Reference Blade. Center Backup Data § Low utilization infrastructure applications Clusters § Collaboration Infrastructure Serving Servers SSL Appliances transaction processing § I/O Intensive Java § Rapid provisioning and re Linux Application Servers -provisioning Terminal E-Commerce Grid Serving Applications § Close to Data Corporate. Proximity Deep Computing Infrastructure § High performance File/Print Servers Security & Directory Services File/Print Servers DNS Servers Database Servers Application Servers Web Servers Transaction Servers workloads § Large database serving § High resiliency and security Web Services © 2004 IBM Corporation 24

Worldwide Customers Decide for z. Series OMV Linux on z. Series is a solution that gives us availability, reliability and scalability and at the same time is cost-effective and economic to run. ” (Walter Rotter, IT-Manager, OMV) Deutsche Telekom AG “IBM was convincing right from the start. Both the benchmark and the ensuing implementation and transfer of the data were carried out in the most professional and reliable manner. Just eight months after the benchmark we were able to start with production. We are confident that with IBM and S/390 we have made the right decision. ” Eberspächer “With SAP you can have a brilliantly simple system – if everything runs on a server like the z. Series. ” (Theo Krämer, Head – Eberspächer Computer Centre) (Frank A. Hoffmann, Leiter BC HRS, Deutsche Telekom AG) Gerling “We have only had very good experiences with IBM z. Series and are very pleased with the stability, the performance and the support of IBM. ” (Paul Berndorff, Director, SAP Competence Center at Gerling) Alenia Aeronautica Reliability is the key issue for us. So we chose to run SAP in a pure z. Series environment, because it is quite simply the most reliable platform of all. ” (Vito Cammarota, IT Architecture and Application Manager, Allenia) KMD “The overall objective for the operation of any SAP R/3 system is to ensure high quality operations. We are confident that the best way to achieve this is using the IBM e. Server as technology platform. ” (Thomas Falk Mogensen, Vice President of Process and Technology Development, KMD Mainframe IT Services) © 2004 IBM Corporation 25

IBM ^™ z. Series™ 990 §All new design with the versatility and power to help integrate your business §Defining the standard for multi-dimensional virtualization required to meet the demands of today's dynamic business environment §Investment flexibility for the on demand business §Solutions for integrating your business Autonomic systems that scale Virtualization Open Middleware and Integrated solutions Investment Flexibility Built for the on demand era © 2004 IBM Corporation 26 z 990 ANNCOV 010

Thank you. rainsdon@us. ibm. com Alan J Rainsdon Marketing & Business Development IBM Systems

Trademarks The following are trademarks of the International Business Machines Corporation in the United States and/or other countries. CICS* DB 2* Domino e-business on demand Enterprise Storage Server ESCON* FICON Flash. Copy* GDPS* Hiper. Sockets IBM* IBM logo* IBM e. Server IMS OS/390* Parallel Sysplex* PR/SM VSE/ESA Web. Sphere* z/OS z/VM z. Series * Registered trademarks of IBM Corporation The following are trademarks or registered trademarks of other companies. Java and all Java-related trademarks and logos are trademarks of Sun Microsystems, Inc. , in the United States and other countries UNIX is a registered trademark of The Open Group in the United States and other countries. Microsoft, Windows and Windows NT are registered trademarks of Microsoft Corporation. SET and Secure Electronic Transaction are trademarks owned by SET Secure Electronic Transaction LLC. * All other products may be trademarks or registered trademarks of their respective companies. Notes: Performance is in Internal Throughput Rate (ITR) ratio based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput that any user will experience will vary depending upon considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve throughput improvements equivalent to the performance ratios stated here. IBM hardware products are manufactured from new parts, or new and serviceable used parts. Regardless, our warranty terms apply. All customer examples cited or described in this presentation are presented as illustrations of the manner in which some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions. This publication was produced in the United States. IBM may not offer the products, services or features discussed in this document in other countries, and the information may be subject to change without notice. Consult your local IBM business contact for information on the product or services available in your area. All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. Information about non-IBM products is obtained from the manufacturers of those products or their published announcements. IBM has not tested those products and cannot confirm the performance, compatibility, or any other claims related to non-IBM products. Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products. Prices subject to change without notice. Contact your IBM representative or Business Partner for the most current pricing in your geography. © 2004 IBM Corporation 28 z 990 ANNCOVTM 1