IBM Power Systems Announcement Highlights October 2012 IBM

IBM Power Systems Introducing the new enterprise Power Systems the engine for dynamic efficiency and business analytics – Power Systems have always focused on delivering outstanding performance along with the business needs of application choice, enterprise integration, IT efficiency, and data availability and security – enabling your business to achieve outstanding business performance and compute performance. We describe this as Power is Performance Redefined! – Businesses have consistently chosen Power over competition for more than a decade. Why? Our clients have told us that their applications and databases run best on Power. They’ve voted with their IT investments – in fact, we’ve had 2, 700 competitive migrations to Power since Q 1 2010 – and Power has moved from #4 to #1 in Unix revenue share over the last decade. – With the new POWER 7+ technology, the result of $1. 4 B in R&D, IBM extends this value to help enterprises transform the value they deliver and improve their customer experience through compute intensive & information-centric computing. Today’s announcement is designed to help you meet the new demands of information-centric IT through three key capabilities – 2 dynamic efficiency, business analytics, assured compliance © 2012 IBM Corporation

IBM Power Systems Enterprise class Power key announcements – Cloud § Cloud – Dynamic efficiency Make IT a driver of business growth and deliver superior IT economics with dynamic, scalable resource allocation and rapid response to changes in application and workload requirements New – Power Systems Solution Edition for Cloud enables rapid deployment of a scalable cloud that is optimized for maximum asset utilization – Power. VM Virtualization Performance Advisor (VIOS performance advisor) proactively provides performance optimization recommendations enabling clients to provide higher qualities of service – Elastic Capacity on Demand for Power System Pools gives clients the flexibility and cost of a public cloud with the security and resilience of an enterprise Power Systems data center – Power. VM enhancements deliver improved flexibility by allowing VM granularity to 5% of a core and 20 VMs per core. – Performance improvements for Power. VM Live Partition Mobility enable faster response to changing business needs by improving single VM movement by up 3 X and can concurrently migrate partitions up to 4. 7 X faster than previous releases. Doubling concurrent migrations on a single server from 8 to 16. 3 © 2012 IBM Corporation

IBM Power Systems Enterprise class Power key announcements – Data § Data – Business analytics Provide business insight and deliver services faster with servers optimized for big data, compute intensive applications, and built-in availability New – AIX Solution Editions for Cognos and SPSS enable rapid deployment of business and predictive analytics – Elastic Capacity on Demand for Power System Pools enables sharing of resources across a pool of systems improving availability and ensuring access to resources during planned and unplanned maintenance activities – Power. HA Hyper. Swap offers continuous data access in the event of storage outages, enabling storage maintenance & migration without downtime – POWER 7+ processors & architecture improve on their industry-leading performance delivering 20 -40% more performance, and are ideal for big data and business analytics workloads 4 © 2012 IBM Corporation

IBM Power Systems Enterprise class Power key announcements – Security § Security – Assured compliance Deliver services with higher quality on systems that have zero reported virtualization vulnerabilities with policy based compliance to ensure data security and a compliant environment New – Power. SC along with Trusted Surveyor delivers policy-based security compliance reporting and provides real-time alerts for compliance violations. Real-time alerts can also be sent to advanced security analytics systems such as IBM Q 1 Radar – Hardware assisted encryption delivers faster file encryption for AIX with POWER 7+ reduces the performance overhead normally associated with encryption and decryption 5 © 2012 IBM Corporation

IBM Power Systems © 2012 IBM Corporation

IBM Power Systems Benefits of e. DRAM for POWER 7+ With e. DRAM Without e. DRAM 2. 1 B Transistors 567 mm 2 5. 4 B Transistors 950 mm 2 IBM’s e. DRAM Benefits: § § 7 Greater density: 1/3 the space of 6 T SRAM implementation Less power requirements: 1/5 the standby power Fewer soft errors: Soft Error Rate 250 x lower than SRAM Better Performance © 2012 IBM Corporation

IBM Power Systems POWER 7+ Encryption Accelerator Technology Client Benefits § Crypto Offload Accelerators: o Provide cryptographic engines to relieve the P 7+ processor from the performance intensive cryptographic algorithms of AES, SHA, and RSA. § Can be applied to a broader set of data creating a stronger security ecosystem § POWER 7+ core focused on application performance. § Two primary AIX security applications: 1) Encrypted File Systems protecting your data in storage or on backup media 2) IPsec protecting your data over the network. § High quality random numbers: o Generated with high performance with the RNG offload feature of the P 7+ processor. § Ensures that the high demand for entropy on a heavily loaded systems always yields high quality random numbers. § RNG offload provides entropy snd security is ensured § Processor performance focused on your applications. 8 © 2012 IBM Corporation

IBM Power Systems P 7+ RAS Specific Features § New Power On Reset Engine (PORE) – Enables a processor to be re-initialized while system remains up and running – Directly used to: • Allow for Concurrent Firmware Updates: In cases where a processor initialization register value needs to be changed § L 3 Cache dynamic column repair – New self-healing capability that complements cache line delete – Uses PORE feature to remove a substitute a failing bit-line for a spare during run-time. § New Fabric Bus Dynamic Lane Repair – POWER 7+ has spare bit lanes that can dynamically be repaired (using PORE) • For Busses that connect CEC drawers • Avoids any repair action or outage related to a single bit failure. 9 © 2012 IBM Corporation

IBM Power Systems Benefit of POWER 7+ HW Accelerator POWER 7 Act Mem Exp CPU Time Work of compress / decompress POWER 7+ Act Mem Exp CPU Time Work of compress / decompress • Less CPU for the same amount of memory expansion CPU TIME • Can then run more partitions or work per partition • If fewer cores needed, may result in lower software licensing Work of managing pages Work done with software • OR more memory expansion for the same amount of processor • Better able to relieve memory shortages and improve performance • May be able to do more work Work done by hardware accelerator 10 © 2012 IBM Corporation

IBM Power Systems Active Memory Expansion – Client Deployment Steps Same for POWER 7+ as for POWER 7 servers 3 Planning Tool (AMEPAT) 60 -Day Trial (no charge) Deploy into Production One-time, temporarily enablement Config LPAR based on planning tool Use AIX tools to monitor Act Mem Exp environment Tune based on actual results C. D. A. Permanently enable Active Memory Expansion B. C. Deploy workload into production Continue to monitor workload using AIX performance tools Actual Results Memory Expansion Performance Estimated Results Memory Expansion 11 A. B. App. Performance Part of AIX 6. 1 TL 4 Calculates data compressibility & estimates CPU overhead due to Active Memory Expansion Provides initial recommendations CPU Utilization C. 2 CPU Utilization A. B. 1 Memory Expansion Time © 2012 IBM Corporation

IBM Power Systems IBM Power 770 with POWER 7+ processors Enhancing the industry’s most popular mid-range server with better performance, availability and efficiency § IBM extends performance leadership with POWER 7 – P 7+ drives per core performance with faster clock speeds – (20% performance improvement for most workloads) – P 7+ increases L 3 cache by 2. 5 X compared to P 7 – P 7+ improves memory compression by adding hardware assist – P 7+ improves AIX file encryption by adding hardware assist – P 7+ delivers twice the Single Precision Floating Point performance – GX buses deliver even more I/O bandwidth § New RAS features improve system availability – Self-healing capability for L 3 Cache functions – ECC support on systems fabric bus – Processor can be re-initialized while remaining up & running • Concurrent firmware updates will be more prevalent § Virtualized efficiency continues to improve – – – New power gating techniques reduce energy consumption Minimum partition size reduced to 1/20 th of a processor core Increased number of concurrent partition migrations Dynamic Platform Optimizer optimizes virtualization environment Continued Modular Scalability POWER 6 & 7 Upgrades Flexible Capacity on Demand Faster Live Partition Mobility Enhanced Power. VM Improved Energy Efficiency Increased system performance © 2012 IBM Corporation

IBM Power Systems What’s new with the Power 770 Category Today’s Power 770 New Power 770 Benefit Processor • POWER 7 45 nm • POWER 7+ 32 nm Faster performance L 3 cache • 4 MB per core • 10 MB per core Faster performance Configurations • 64 cores @ 3. 3 GHz • 48 cores @ 3. 7 GHz • 64 cores @ 3. 8 GHz • 48 cores @ 4. 2 GHz Faster performance Hardware accelerators • Software compression • Software encryption • Memory compression • AIX file system encryption Faster performance Other processor features • Random number generator • Enhanced GX system buses • Enhanced Single Precision Floating Point performance Better availability RAS • Self-healing capability for L 3 Cache functions • Dynamic processor fabric bus repair • Processor re-initialization Energy • Enhanced energy power gating More energy efficient • 20 VMs per core • 16 concurrent LPMs More efficient for virtualization • Dynamic Platform Optimizer More efficient for virtualization Less complex to manage • Easier Co. D enablement keys Less complex to manage Virtualization Software Co. D • 10 VMs per core • 4 concurrent LPMs © 2012 IBM Corporation

IBM Power Systems What’s new with the Power 780 Category Today’s Power 780 New Power 780 Benefit Processor • POWER 7 45 nm • POWER 7+ 32 nm Faster performance L 3 Cache • 4 MB per core • 10 MB per core Faster performance Configurations • • 96 cores @ 3. 44 GHz 64 core @ 3. 92 GHz • • 128 cores @ 3. 72 GHz 64 cores @ 4. 42 GHz Faster performance Hardware Accelerators • • Memory Compression AIX file system encryption Faster performance Other Processor Features • • Random number generator Enhanced GX system buses Enhanced single precision Floating Point performance Faster performance RAS • Better availability • Multi-system pooling of compute resources Dynamic processor fabric bus repair • Enhanced energy power gating More energy efficient • • 20 VMs per Core 16 Concurrent LPMs More efficient for virtualization Software • Dynamic Platform Optimizer More efficient for virtualization Less complex to manage COD • Initial quantity of On/Off COD processor and memory days included Flexible COD enablement keys Greater flexibility Energy Virtualization • • 10 VMs per Core 4 Concurrent LPMs • © 2012 IBM Corporation 14

IBM Power Systems Enhancing the Power 795 Power System Pool Enhanced Co. D Integrated Bus & I/O adapter 16 TB Memory 20 LPAR/core FW Release 795 Initial Elastic Co. D (On/Off ) Processor / Memory days included with all new 795 s • New 64 GB DIMM support will enable the Power 795 to utilize up to 16 TB of memory • New hybrid I/O adapters that deliver Gen 2 I/O connections directly out of the processor book, reducing the need for I/O drawers and expansion racks for I/O intensive application environments • No-charge Elastic Co. D (On/Off) processor and memory days included with all new Power 795 configurations • Power. VM will enable up an 20 LPARs per core to increase granularity in support of Cloud deployments • A Power System Pool of enterprise Power servers will leverage Co. D enhancements to extend aspects of Power Flex to a broader range of clients and simplify delivery – including enabling clients to manage allocation of their virtual processor and memory resources across a pool to maintain availability, balance workload and increase resource utilization © 2012 IBM Corporation 15

IBM Power Systems Elastic Co. D (On/Off) now built into every high-end Power server § All new Power 780+ / 795 s include Elastic Co. D processor and memory days for no-charge – – Fifteen (15) processor days for every processor ordered (active or inactive) Two hundred & forty (240) GBs of Elastic Co. D Memory days for every processor ordered Only available at time of initial ship or model upgrade MES Elastic Co. D processor and memory days will be kept as a credit by IBM § Usage of Elastic Co. D resources No restrictions apply to how clients use the Elastic Co. D resources TCo. D contract must be signed prior to receiving TCo. D Enablement code is ordered via an MES Reports of usage of Elastic Co. D resources will be sent to IBM on monthly basis Usage will be debited to clients account on a quarterly basis and a report will be sent providing the Elastic Co. D account status – Normal billing occurs when all the client’s Elastic Co. D Processor and memory days credits are exhausted – Example: – – – Purchased - Power 795 or 780 w/128 cores Receive – 1, 920 (15 days x 128 cores) processors days Receive – 30, 720 GB (15 x 240 GBs) memory days 16 © 2012 IBM Corporation

IBM Power Systems Co. D Enhancement: 90 -Day Enablement § 90 -Day Elastic Temporary Enablement keys …. – For 770/780 “D” models and for 795 (new or existing) x 90 – One key for processors (#EP 9 T), one key for memory (#EM 9 T) – No-charge to enable …… will pay later if temporarily activate resource – MES order only. Can not be ordered with initial server order. – Firmware 7. 6 is pre-req – For all processor cores or memory not permanently activated for 90 days • Implemented as 90 times the number of processors or 90 times the GB memory which are not permanently activated. – Earlier models enable a fixed number of processor-days/memory-days (different number for memory or processors). If usage high, fixed number has the logistical hassle of running low at an inconvenient time and potentially needing to emergency reorder – New 90 -day approach more simple and enables a quantity which will last at least 90 days. (and may last a lot more …up to a calendar year… if Elastic Co. D usage is modest. ) • You could also choose to order every 90 days (no-charge) to guarantee you never ran out if logistically you prefer 17 © 2012 IBM Corporation

IBM Power Systems Introducing Power System Pools for Power 780 and 795 Easily deliver compute resources to where they are required in order to achieve the highest levels of flexibility and business resiliency • New option to create pools of high end Power Systems servers that allows sharing of processor and memory resources in support of planned maintenance events • Available on Power 795 and 780 with POWER 7+ based processors • Simplified Elastic Capacity on Demand enablement delivers utility-like compute capacity on a much larger scale • Elastic Capacity on Demand resources may be purchased and billed for a pool • Aggregate days across the pool • Purchase pre-paid credit days for the pool © 2012 IBM Corporation 18

IBM Power Systems Workload Optimization § Workloads and system are becoming more complex – – Mix of single threaded and multithreaded applications Workload consolidation and interdependencies Increased number of cores and threads Workload mobility introduces added complexity and fragments resources § Deep technology knowledge needed to manage these issues § Expectations are that systems should just “work” New approaches to system performance are needed that address both operating system and server optimization § Dynamic Platform Optimizer – Both are design to reduce the complexity and time required for clients to manage and tune their systems – DPO optimizes processor and memory affinity in virtualized consolidated environments • Available as a feature of the new Power 770 & 780 (Firmware, not software) 19 © 2012 IBM Corporation

IBM Power Systems Operating Systems § IBM AIX operating system: § AIX Version 7. 1 TL 02 AIX Version 7. 1 Tl 01 SP 6, or later (planned availability December 19, 2012) AIX Version 7. 1 TL 00 SP 8, or later (planned availability December 19, 2012) AIX Version 6. 1 TL 08, or later AIX Version 6. 1 TL 07 SP 6, or later (planned availability December 19, 2012) AIX Version 6. 1 TL 06 SP 10, or later (planned availability December 19, 2012) § AIX 5. 3 TL 12 Statement of Direction § IBM i operating system IBM i 7. 1 TR 5, or later; required if the primary OS is IBM i 6. 1 with machine code 6. 1. 1, or later – All I/O must be virtual (I/O provided through either IBM i 7. 1 or VIOS) – Can not be ordered as the primary OS with feature number 0566 § If installing Linux: Red Hat Enterprise Linux 6. 3 for POWER, or later Red Hat Enterprise Linux 5. 7 for POWER, or later SUSE Linux Enterprise Server 11 Service Pack 2, or later, with current maintenance updates available from SUSE to enable all planned functionality § If installing VIOS: VIOS 2. 2. 2. 0 VIOS 2. 2. 1. 5 (planned availability December 19, 2012) 20 © 2012 IBM Corporation

IBM Power Systems 4 Q 2012 I/O Announcements Enhanced EXP 30 Ultra SSD I/O Drawer POWER 7+ 770/780 support, additional RAS, downstream HDD, higher performance Power 795 -- new Gen 2 I/O options Highly compact, cost effective, high function GX adapters (future SRIOV support) 16 Gb Fibre Channel & 10 Gb Fibre Channel over Ethernet (FCo. E) (future SRIOV support) New PCIe Gen 2 Adapters for PCIe Gen 2 Slots 2 -port 16 Gb Fibre Channel - First 16 Gb adapter for Power (future SRIOV support) 4 -port 10 Gb FCo. E - Twice the ports of existing Gen 1 FCo. E adapter (future SRIOV support) IBM i enhanced to support additional I/O Lower priced Async adapter RDX support - high performance, low cost entry tape alternative USB or SATA attachment support Statement of Direction for EXP 30 Ultra SSD I/O Drawer support 900/856 GB 10 k rpm HDD - 50% more disk capacity in the same space Slim Rack for POWER 7 rack models - more efficient floor space use Expanded Ro. CE Adapter support - supported on more models, with more OS support and with more function HMC support of Power Blades - delivering on SDMC transition plans © 2012 IBM Corporation

IBM Power Systems Power 795 & PCIe Gen 2 Function Two new PCIe Gen 2 GX++ adapters • • 16 Gb Fibre Channel 10 Gb FCo. E/CN Plugs directly into GX++ slot on the processor card Innovative, highly compact packaging • Combines GX adapter + GX cables + PCIe I/O drawer + PCIe adapter into just one new 2 -port GX adapter Can save money, space, energy/cooling, maintenance • 2 -ports of high performance capability • Access to full bandwidth of GX++ bus (up to 20 GB/s peak) Max 3 adapters per processor book • • 22 Can be in any of the 4 GX slots Can mix and match Gen 1 and Gen 2 in same processor book © 2012 IBM Corporation

IBM Power Systems I/O Differences between C and D models § No difference in system unit I/O … same PCIe Gen 2 slots, multifunction card, and integrated SAS controller, BUT …. 1. No SCSI disk support on D models. Was supported on C. 770/780 selection consideration for clients planning to use old SCSI 3. 5 -inch disk on new server (probably IBM i clients if any). SCSI disk would be found in #5786 EXP 24 I/O drawer and run by SCSI PCI-X adapter with cache (see SOD from April 2012). SCSI tape/optical remains supported. 2. New EXP 30 Ultra SSD I/O Drawer (#EDR 1) announced for 770/780 D models under AIX. . #EDR 1 has great performance and wonderful footprint density. 3. Native IBM i I/O support using IBM i 7. 1, but no native IBM i 6. 1 support of I/O on POWER 7+. IBM i 6. 1 can be client partition and be provided I/O linkages through either IBM i 7. 1 or VIOS. Note communications adapters #2893/2894 or cryptographic adapters can’t be virtualized. 4. Max quantity of disk drives higher for D models vs C models …. 3024 vs 1344. number of SSD also increased, but not as dramatically. 23 Max © 2012 IBM Corporation

IBM Power Systems POWER 7+ System Model Upgrades – You can get there! Upgrades from POWER 6, POWER 6+ & POWER 7 780 9117 -MHC POWER 7 780 9117 -MHB Power 780 9117 -MMD POWER 6 570 POWER 6 upgrades to POWER 7+ POWER 6+ upgrades to POWER 7+ POWER 7 upgrades to POWER 7+ 9117 -MMA POWER 7 770 9117 -MMC POWER 7 770 9117 -MMB Power 770 9117 -MMD POWER 6 570 9117 -MMA © 2012 IBM Corporation

IBM Power Systems POWER 7+ continues to deliver more Performance per Watt >5 X increase in performance per watt over POWER 6+ >10 X increase in performance per watt since POWER 5+ r. Perf per KWatt >10 years of changing the server landscape POWER 4™ p 670 1. 1 GHz KWatts: 6. 71 POWER 4+™ p 670 1. 5 GHz KWatts: 6. 71 POWER 5™ p 5 -570 1. 65 GHz KWatts: 5. 2 POWER 5+™ p 570 1. 9 GHz KWatts: 5. 2 POWER 6™ Power 570 4. 7 GHz KWatts: 5. 6 POWER 6+™ Power 570 4. 2 GHz KWatts: 5. 6 POWER 7™ Power 780 3. 8 GHz KWatts: 6. 9 POWER 7+™ Power 780 4. 4 GHz KWatts: 7. 7 © 2012 IBM Corporation

IBM Power Systems Virtualize, Consolidate, Save Still on POWER 5? You can dramatically reduce your energy usage, floor space, software license costs, maintenance costs AND increase your performance and capacity POWER 7 770+ • 18 cores @ 4. 2 GHz • 60% utilization 30% effective capacity increase Reduce energy usage by 90% Save ~$600 k over 3 years in maint. Save >$1 M in database license Two POWER 5 590 systems • 64 cores @ 2. 1 GHz • 30% utilization Power 780 • POWER 7 technology POWER 7 770+ • 64 cores @ 3. 8 GHz • 18 cores @ 4. 2 GHz 6, 400 watts • 60% • utilization 80 virtualization 50% • effective capacity increase • 40% more performance Reduce energy usage by 84% Save • ~$250 K over 3 yearsmonths in maint. Payback ~ 12 -15 Four POWER 5 570 systems • 64 cores @ 1. 9 GHz • 30% utilization And still have room to consolidate x 86 workloads! 26 Save >$1 M in database license IBM CONFIDENTIAL * Based on US list price at announce © 2012 IBM Corporation

IBM Power Systems Software & Solutions © 2012 IBM Corporation

IBM Power Systems IBM Power. VM v 2. 2. 2 Power. VM provides the industrial-strength virtualization solution for IBM Power Systems which deliver superior economics by consolidating virtualized workloads. § What’s New – Up to 20 VMs per Core Support – Shared Storage Pools Improvements • (16 nodes, rolling maintenance) – 3 X Live Partition Mobility Performance Improvement – VIOS Performance Advisor § Features / Business Value – – 20 VMs per core / increased flexibility SSP Improvements / better scalability & flexibility LPM Performance Improvements / increased flexibility VIOS Performance Advisor / proactively monitors VIO Server § Client Benefits – Reduce IT costs by consolidating diverse workloads – Optimize utilization of IT resources to improve service and boost ROI – Scale virtualized workloads without performance penalties – Eliminate scheduled downtime by using live mobility between servers Power. VM Express Edition Single VIOS 2 VMs per Server Power. VM Standard Edition Shared Processor Pools Shared Storage Pools Thin Provisioning Suspend/Resume Power. VM Enterprise Edition Live Partition Mobility Active Memory Sharing Learn More: http: //www-03. ibm. com/systems/power/software/virtualization/index. html 28 © 2012 IBM Corporation

IBM Power Systems New!! VIOS Performance Advisor CPU Section Snapshot Proactive VIOS Health Check Provides Advise on how to Tune the VIO Server Before Problems Occur Shipped with Power. VM 2. 2. 2 Reports are viewed with a web browser Can be use as a historical measure of performance © 2012 IBM Corporation

IBM Power Systems Power. VM – Shared Storage Pools Extending Storage Virtualization Beyond a Single System New Enhancements v 2. 2. 2 Storage Pool • Support for 16 Nodes which increases scalability • IPv 6 and VLAN tagging(IEEE 802. 1 Q) support for inter node communication. This gives clients more options for deployment • Cluster reliability and availability improvements • Improved storage utilization statistics and reporting • Support for rolling maintenance upgrades which avoids outages. SSP – clustered storage virtualization § Next generation v. SCSI § Storage pool spans multiple VIOS’s and servers § Enabler for federated management § Location transparency Base capabilities Supports SAN , IBM and non-IBM Storage 30 © 2012 IBM Corporation

IBM Power Systems Power. VM Editions are tailored to client needs § Power. VM Express Edition – Evaluations, pilots, Po. Cs – Single-server projects § Power. VM Standard Edition – Production deployments – Server consolidation § Power. VM Enterprise Edition – Multi-server deployments – Cloud infrastructure Power. VM Editions Express Standard Enterprise 2 per server 20 per core** (up to 1000) Virtual I/O Server NPIV Suspend/Resume Shared Processor Pools Thin Provisioning Concurrent VMs Live Partition Mobility Active Memory Sharing Shared Storage Pools Enhancements VIOS Performance Advisor Q 4 2012 Live Partition Mobility Encryption automation Features Linked Clones , **Live Partition Mobility Performance Improvements **FW 7. 6 Prereq © 2012 IBM Corporation

IBM Power Systems IBM Power. SC v 1. 1 Power. SC provides a security and compliance solution to protect data centers virtualized with Power. VM enabling higher quality services. § What’s New – Power. SC Trusted Surveyor – Support for HIPAA Compliance Automation Profile – Real-time Compliance Monitoring Power. SC Express Edition Security Compliance Automation HIPAA Compliance Profile Real-Time Compliance § Features / Business Value – Trusted Logging / Compliance and Audit – Trusted Boot / Security compliance – Trusted Network Connect and Patch Management / Security compliance – Trusted Surveyor / Monitors Network Security Compliance – Security Compliance Automation / Reduces labor to comply – Real-time Compliance Monitoring / Improves violation detection Power. SC Standard Edition Security Compliance Automation Trusted Boot Trusted Logging Trusted Network Connect § Client Benefits – Simplifies management and measurement of security and compliance – Reduces cost of security and compliance – Improves the audit capability to satisfy reporting requirements – Provides assurance that virtual networks are matching security policies – Reduces cost of compliance to HIPAA standard – Improves detection and reporting of security exposures Power. SC Trusted Surveyor Learn More: http: //www-03. ibm. com/systems/power/software/security/ 32 © 2012 IBM Corporation

IBM Power Systems Power. SC – Trusted Surveyor New Offering!! Challenge: Demonstrate compliance to network segregation policies. Where are my virtual systems? are they secure and isolated properly. Power. SC solution: Compare current state of VM virtual network segregation to defined desired policy. Reports on configuration drift. How Power. SC Trusted Surveyor works: • Discovers the virtual infrastructure via the HMC • Builds a realization model which is compared to the saved state or policy • Displays a map showing items that have changed and are out of compliance • Logical model can be exported into flat file for documentation and can be consumed by other tools. 33 • Provides visibility to show segregation of virtual networks to prove compliance • Lower Admin costs by automating compliance reporting • Independent audit and governance of virtualized infrastructure • Ensure consistent and safe configuration changes © 2012 IBM Corporation

IBM Power Systems Power. SC Offerings Security and Compliance Options § Power. SC Express – Basic compliance automation for AIX (formerly IBM Compliance Expert) § Power. SC Standard – Security and compliance for virtual & cloud environments § Power. SC Trusted Surveyor – Virtual network segregation compliance monitoring Power. SC Editions Security and Compliance Automation New HIPAA Profile Real time Compliance Monitoring Trusted Logging Trusted Boot ** Express Standard Trusted Network Connect and Patch Management Trusted Firewall ** Requires e. FW 7. 4 or higher 34 34 © 2012 IBM Corporation

IBM Power Systems IBM System Director Updates GA Date: December 14, 2012 Systems Director 6. 3. 2 & VMControl 2. 4. 2 Power Systems Enhancement Benefit System pool support for IBM i Improve management of IBM i workloads using VMControl system pools automation and control VM deployment using linked clones Accelerate deployment of VMs Shared Storage Pool Support Improve management of Power. VM shared storage pools Scalability Improvements for large configurations Better performance for large managed configurations Remember to offer the new IBM Implementation Services for IBM Systems Director VMControl Enterprise Edition • Accelerate your implementation with reduced risk © 2012 IBM Corporation

IBM Power Systems Power. HA 7. 1 Two-Site Solutions § Power. HA System. Mirror Enterprise Edition – Two distinct options for multi-site deployments – Each option provide configurations optimized for customer requirements Repository Disk § Stretched Cluster – Exploits multicast communications Two-Site Stretched Cluster – Triple redundant heartbeat – Campus/Metro deployments § Linked Cluster – Enables two sites with independent networks (campus or cross country) Two-Site Linked Cluster – Suitable for campus, metro and cross country deployments * 36 Future capability © 2012 IBM Corporation

IBM Power Systems Power. HA Enterprise Edition Hyper. Swap § Multi-Site Power. HA cluster with continuous storage availability § Non-disruptive - applications keep running in the event of a storage outage Application Power. HA Hyper. Swap Cluster § Storage maintenance without downtime Metro Mirror § Storage migration without downtime 37 Primary DS 8 K Secondary DS 8 K © 2012 IBM Corporation

IBM Power Systems IBM Director interface for Power. HA System. Mirror V 7 § Included with Power. HA System. Mirror V 7 § Masks complexity § Central management § Real-time status § Smart Assist integration § Deployment wizards 38 © 2012 IBM Corporation

IBM Power Systems Software – October Content § AIX 7. 1 TL 2, 6. 1 TL 8 – P 7+ Hardware Support – Scaled Throughput by Aggressive SMT 4 exploitation – AIX 7 WPAR Enhancements • LPAR to WPAR migration tool • Java JVM shared memory between WPARs – IPV 6 support • IPV 6 for NFSV 3 • WPARs IPV 6 for WPAR specific routing – Memory • Enhanced multiple page size support – 16 MB pages – AIX EE content update § Linux – Big Data Analytics • New releases of IBM Power. Linux Solutions for Info. Sphere Big. Insights and Info. Sphere Streams – IBM Installation Toolkit V 6. 0 – IBM Software Developer Toolkit for Power. Linux V 1. 2 39 © 2012 IBM Corporation

IBM Power Systems AIX Enterprise Edition AIX EE provides the capability to monitor, secure and enhance the optimization and performance of the leading industry UNIX platform § What’s new: – AIX EE has been enhanced to provide the Power infrastructure with better security and compliance capabilities, better tools to exploit the Power hardware and software infrastructure and the ability to easily and quickly implement a Power private cloud computing infrastructure. § Features / Business Value: – Addition of the following software products • Power. SC • Smart. Cloud Entry § Client Benefits: – Simplifies management and measurement of security and compliance – Reduces cost of security and compliance – Improves quality of services and delivers self-service solutions that help the business grow and reduce costs – Improves Power platform performance for DB applications © 2012 IBM Corporation

IBM Power Systems Solution Edition for Cloud New! Pre-built, pre-installed consolidated entry cloud system § Built on Power Systems 770+ for the highest reliability, scalability and serviceability Announce – 10/3 GA – 11/9 § Gets clients up and running and proving the value of cloud delivery quickly and easily § Leverages Power Systems virtualization foundation for superior utilization, availability and security § “One-button” e. Config ordering § No risk set up with Lab Services included Consolidated 41 Optimized Power 770 Rack Configurations 32 – 128 cores 7 – 72 TB V 7000 Storage 1 and 10 GB switch IBM FC Networking Switch IBM Smart. Cloud Entry + prerequisites Set-up Services Enterprise QOS © 2012 IBM Corporation

Announces: Oct 9 IBM Power Systems IBM Smart. Cloud Entry for Power Systems v 2. 4 – Power (includes Smart. Cloud Entry for Power Systems bundle) An entry private cloud offering that is simple to deploy and easy to use What’s new: § IBM Smart. Cloud Entry 2. 4 now provides heterogeneous cloud management across System X and Power environments, including IBM i § Improved usability, time to value & operational efficiency § Easily orderable Smart. Cloud Entry for Power bundle provides the Smart. Cloud Entry software bundled with the Systems Director pre-requisites in an easily orderable and discounted offering Features / Business Value: § Automated management, provisioning and optimization of physical/virtual servers and system pools ensure that your cloud resources are automatically provisioned for optimal utilization § Self-service portal and standardized service catalog leverage all the features of your Power Cloud infrastructure to enable automated delivery of requested services without IT intervention § Improve performance and scalability by optimizing IT assets based on workload; ensure the ideal elasticity of your cloud § Enterprise Qo. S virtualization capability with higher performance, more scalability and enterprise security provides the best foundation for your cloud § High availability solutions for ensuring mission critical applications running in the cloud are always available § Improved operational efficiency with seamless cloud management across System x and Power system platforms Client Benefits: § Do more with less—reduce capital expenditures and operational expenses § Reduce risk—ensure the right levels of security and resiliency across all business data and processes § Deliver higher quality services—improve quality of services and deliver self-service solutions that help the business grow and reduce costs § Provide breakthrough agility—increase IT's ability to quickly deliver new services to capitalize on opportunities while reducing costs and managing risk Learn More: Power Systems Cloud Solutions: http: //www-03. ibm. com/systems/power/solutions/cloud/index. html 42 © 2012 IBM Corporation

IBM Power Systems IBM i 7. 1 Technology Refresh 5 § What’s new: – DB 2 for i enhancements – – – Navigator for i web based interface BRMS Enterprise functionality added DB 2 Web. Query mobility functions Smart. Cloud Entry Refresh of selected SWG products § Features / Business Value: – Increasing ease of use and functionality of IBM i – Enhanced performance, usability and security for client data in DB 2 – Features of the latest versions of IBM Web. Sphere Application Server, Web. Sphere Commerce and IBM Guardium products – Easily acquire and implement cloud solutions with Smart. Cloud Entry § Client Benefits: – – – Enhanced Security protects sensitive business data; addressing industry certifications Ease of system management task with Navigator for i BRMS automation and management using new Enterprise functions Smart. Cloud Entry allows clients to launch cloud environments as easily as possible Refreshing of SWG products for IBM i provides enhanced functionality and optimization © 2012 IBM Corporation

IBM Power Systems October Announcements : Power Analytics • AIX Solution Edition for Cognos BI (phase 2) - One-button ordering of Cognos Business Intelligence on Power (AAS ordering) Web tier and data tier software included and pre-installed, pre-configured AIX Solution Edition processor activation and AIX license Discounts Targeted customer: SMB Announce September 11 th, GA September 22 nd • AIX Solution Edition for SPSS C&DS and Modeler - SPSS C&DS and Modeler for Predictive Analytics AIX Solution Edition processor activation and AIX license Discounts Targeted customer: SMB Announce October 3 rd, GA October 25 th • IBM Pure. Data System for Operational Analytics - Power 730/740, V 7000, 2 X data performance. Improvements on higher data node density, higher storage capacity, built-in data redundancy, built-in high availability and very high system scalability. - Targeted customer: SMB to Enterprise - Announce October 9 th, GA October 31 st • 44 Withdrawal IBM Smart Analytics System 7710 and 7700 - Announce October 9 th, GA October 31 st © 2012 IBM Corporation

IBM Power Systems IBM Power. Linux Big Data Solution for Info. Sphere Streams § What’s new: – Workload Optimization for IBM Power. Linux Big Data Solution for Info. Sphere Streams § Features / Business Value: – Workload Optimization, including tuning and performance guides as well as deployment recommendations § Client Benefits: – Supports customers deploying IBM Power. Linux Big Data Solution for Info. Sphere Streams and enables them to tune performance for their workloads – Enterprises can perform complex real-time analytics on data-in-motion in real-time as it flows into the organization – Power. Linux provides a high value, secure, reliable and scalable platform for Streams Workloads at x 86 competitive pricing – Access to value-add items like SDK, IBM Installation Toolkit, Simplified Setup Tool, Preload, Power. Linux Community Learn More: http: //www. ibm. com/systems/power/software/linux/powerlinux/ 45 © 2012 IBM Corporation

IBM Power Systems Power. Linux Big Data Solution for Info. Sphere Big. Insights § What’s new: – Workload Optimization for IBM Power. Linux Big Data Solution for Info. Sphere Big. Insights § Features / Business Value: – Workload Optimization, including tuning and performance guides as well as deployment recommendations – IBM Power. Linux™ Big Data Solution for Info. Sphere Big. Insights is a hardware stack optimized for Big. Insights workloads § Client Benefits: – Supports customers deploying IBM Power. Linux Big Data Solution for Info. Sphere Big. Insights and enables them to tune performance for their workloads – Power. Linux provides a high value, secure, reliable platform for Big. Insights workloads at x 86 competitive pricing – Big. Insights workloads are ideal for Power. Linux because IBM’s Java Virtual Machine is specifically optimized for the Power 7 architecture. This means the software and hardware stack can be tuned for better performance and results. Learn More: http: //www. ibm. com/systems/power/software/linux/powerlinux/ 46 © 2012 IBM Corporation

IBM Power Systems IBM Systems Director and VMControl for IBM Power. Linux Simple, affordable solution for system and virtualization management § What’s new: – Provides additional support of Linux releases with new server support for RHEL 6. 3 and SLES 11 SP 2 – Simplifies the management of multiple VMs (across multiple servers) as a single entity with VMControl system pools § Features / Business Value: – Provides single system and virtualization management tool for IBM Power. Linux servers as well as other platforms and hypervisors – Reduces hypervisor deployment and management complexity – Reduces management complexity of managing virtual resources – Improves resource utilization, workload and infrastructure performance § Client Benefits: – Increases IT productivity, responsiveness, and service – Single, simplified management solution for multiple platforms and hypervisors – Improves service and SLA’s – Reduces complexity, time, and cost – Competitively priced to comparable x 86 solutions Learn More: http: //www. ibm. com/systems/power/software/linux/powerlinux/ 47 © 2012 IBM Corporation

IBM Power Systems New! IBM Installation Toolkit V 5. 3 Simplifies and reduces installation time for Power. Linux systems § What’s new: – Support for IBM Power. Linux 7 R 1 rack server – Accessibility enhancements, simplifications to first-boot and enhancements to Look & Feel of tool § Features / Business Value: – Simplifies Linux installation experience on Power systems – Accelerates time to value § Client Benefits: – Reduces installation and configuration time of Linux and open source infrastructure services on Power. Linux systems – Simplifies ‘out of box’ experience for new Linux users, or Linux x 86 users Learn More: http: //www. ibm. com/developerworks/power/library/l-power-installation-toolkit/index. html 48 © 2012 IBM Corporation

IBM Power Systems IBM Installation Toolkit V 5. 3 Key Functions § Easy Linux Installation on Power Systems § Access to the latest firmware and IBM value-add software § Easy management of your computing environment 49 Client Benefits Wizard makes installation and configuration quick and easy. Works with new and existing configurations. Can run installations with remote control. Both DVD and network-based installations are supported. Easy-to-use interface for updating system firmware, as well as access to the latest system firmware. This single comprehensive source for all Power. Linux software provides access to IBM Reliability, Availability, and Serviceability (RAS) tools Bootable rescue DVD for system diagnostics or maintenance on previously installed operating systems. Access to the latest Power. Linux documentation, including an application to easily create and manage network repositories containing Linux and IBM valueadded packages. . © 2012 IBM Corporation

IBM Power Systems Oct 3 Announce Content GA Dates 2012 Oct 3 : Announcement Oct 19 General availability of • POWER 7+ 770/780 • (SWGA) AIX 7. 1 TL 2, AIX 6. 1 TL 8, IBM i 7. 1 TR 5 • Linux RHEL 6. 3, SLES 11 SP 2 • EXP 30 Ultra SSD I/O Drawer, Ro. CE adapter, 900/856 GB HDD, RDX docking stations, Nov 9 Second software GA • (e. GA/p. GA) AIX 7. 1 TL 2, AIX 6. 1 TL 8, IBM i 7. 1 TR 5 • IBM i 6. 1. 1 support of POWER 7+ 770/780 • e. FW 7. 6 • Power. VM 2. 2. 2 (POWER 7+ only) Nov 16 General availability of • • Model upgrades into POWER 7+ 770/780 Power 795 GX++ PCIe Gen 2 adapters New rack doors Elastic Co. D 2013 planned Content • SOD for AIX 5. 3 support for POWER 7+ 770/780 • CHARM on new “D” model 770/780 February 14, 2013 Dec 19 • Other AIX 71. and 6. 1 TL levels and VIOS 2. 2. 1. 5 supporting POWER 7+ 770/780 50 © 2012 IBM Corporation