IBM System i Why IBM System i S3

IBM System i™ Why IBM System i? (S/3, S/3 X, AS/400 e, e. Server i. Series, System i 5………. . ) CA Plex/2 E Worldwide Users Event John Quarantello System i Tools Executive 817 -766 -4035 quarant@us. ibm. com © 2007 IBM Corporation

IBM System i Evolution of the Species Scaleable High Performance Computing Compact Cardless Computing 1969 1975 S/3 96 Col Card S/32 1977 S/34 Advanced Architecture 1980 S/38 1982 1988 S/36 AS/400 2000 i. Series Server Consolidation New Workloads Inexpensive Interactive Computing Distributed Computing © 2007 IBM Corporation 2006/7 System i

IBM System i What’s in a Name? § AS/400 – Introduced in 1988 – Massively successful midrange platform – The “AS” = Application System § e. Server i. Series – AS/400 renamed to i. Series – Part of overall IBM e. Server Platform ► i. Series, z. Series, x. Series & p. Series – Many customers and ISV’s still call it AS/400 § System i – Important member of IBM’s Systems & Technology group – It’s more than “just a server or e. Server” ► Hardware, operating system, middleware, microcode, services, financing, support, etc. ► System i 5 520, 550, 570 & 595 – System i = Family name (AS/400, i. Series and System i 5 are part of family) – System i 5 = System i product using Power 5 hardware – System i 6? - NO § Do “i” Care What You Call It? © 2007 IBM Corporation

IBM System i The IBM Systems family Innovative, proven technology providing platform choice to match unique business needs Blade. Center® Simplify data center complexity. System i™ Install faster, maintain easier. System z™ The flagship for IBM Systems innovation and the heart of a highly secure, resilient and integrated infrastructure. System x™ Innovation comes standard. System Storage™ Connected. Protected. Complete. © 2007 IBM Corporation System p™ Get the power to do more, spend less.

IBM System i The System i Product Line 595 8 -64 way 570 1 -16 way 550 1 -4 way 515/525 1 -2 way Mid-sized to Large Enterprises Small to Mid-sized Enterprises All models also support integration with System x and Blade. Center running Windows and/or Linux © 2007 IBM Corporation

IBM System i What Some Would Have You Believe ü Old technology ü Proprietary ü Nothing but Green Screens ü Not strategic to IBM ü Slowly fading away ü All the System i people are at least 50 years old © 2007 IBM Corporation

IBM System i - The Reality ü Industry Leading Technology ü The most open system on the planet ü Everything from green screen to SOA ü Support for PHP, IP Telephony, RFID, Java, Web. Sphere, Biometrics, XML, My. SQL & more ü Adding new customers and ISVs every year ü Industry leading customer and Business Partner satisfaction ü Well…. . some of us are over 50…. . © 2007 IBM Corporation

IBM System i Perceptions? ? ? Do you consider PC’s and Unix to be old technology? Advances in processor technology Proprietary Operating System Advances in OS technology 64 bit OS & hardware Graphical Interfaces available Debut Date Multiple OS / Same Footprint Intel/Windows X X X Unix X ? X X 1981 X 1950 s System i X X X 1988 X © 2007 IBM Corporation

IBM System i - The Reality ü Over 245, 000 customers currently use more than 400, 000 i. Series, AS/400, or System i in over 100 countries world wide ü 99% of Fortune 100 companies utilize System i servers ü 94% of Fortune 500 companies use System i servers ü 7 out of 10 IBM customers have a System i server installed ü Over 13, 000 System i’s in healthcare industry © 2007 IBM Corporation

IBM System i solutions provide reliable and secure ways to simplify your IT so you can invest the savings in business innovation “Today. . . System i should be viewed as a consolidation platform… When five boxes turn into one, support and maintenance costs go down. The technologist in me does not get really excited by that alone, but the entrepreneur does. “ Ismael Ghalimi, CEO, Intalio © 2007 IBM Corporation

IBM System i Requirements: § Secure § Highly scalable § Strong management tools ► Multiple systems ► Storage resources ► Logical partitions ► Performance § Interoperability § High utilization § Business continuity Large Mid-size Small Business Size & Requirements System i Meets Diverse Requirements: § Secure § Easy to operate § High performance § Self-managing § Reliable & available § Capacity for growth § Solutions portfolio § Versatile Simple, few technical skills Sophisticated, skilled IT staff Technology Infrastructure & Complexity © 2007 IBM Corporation

IBM System i for Small to Mid-sized Companies 515 520 525 550 Processors, Performance Range (CPW) 1, 2 way 1. 9 GHz POWER 5+ 3800 - 7, 100 1, 1 -2 way 1. 9 GHz POWER 5+ 600 - 7, 100 1 -2 way 1. 9 GHz POWER 5+ 3800 - 7, 100 1 -4 way 1. 9 GHz POWER 5+ 3, 800 - 14, 000 i 5/OS Release V 5 R 4 V 5 R 3 & V 5 R 4 Introduced May ‘ 07 © 2007 IBM Corporation

IBM System i for Mid-sized to Large Enterprises 550 570 595 Processors, Performance Range (CPW) 1 -4 way 1. 9 GHz POWER 5+ 3, 800 - 14, 000 2 -16 way 2. 2 GHz POWER 5+ 8, 400 - 58, 500 1 -16 way 4. 7 GHz POWER 6 5, 500 – 76, 900 8 -64 way 2. 3 GHz POWER 5+ 31, 500 - 216, 000 i 5/OS Release V 5 R 3 & V 5 R 4 V 5 R 3 & V 5 R 4 Introduced July ‘ 07 © 2007 IBM Corporation

IBM System i The POWER 6™ Chip § 64 bit, dual core processor § Up to 4. 7 GHz § 790 million transistors § 8 MB on-chip L 2 cache § 300 GB/sec processor bandwidth § Energy efficient § Built using IBM’s state-of-the-art 65 nanometer process Computing power delivered with stunning energy efficiency. Unique features designed to support high availability. Processing power at the top of many critical industry benchmarks. © 2007 IBM Corporation

IBM System i Driving New Levels of System i Performance +31% +72% Performance improvements

IBM System i Why i? § Thousands of business solutions § i 5/OS – integration yields simplification and lower costs § System i architecture – easy to secure and responsive to change § Versatility © 2007 IBM Corporation

IBM System i Priorities 2008 -09 i 5/OS functionality New technologies 2007 Price to

IBM System i IP Telephony Simplicity & Integration § 3 Com IP Telephony – based on the SIP standard for easy integration with – IBM Collaboration Applications – Robust Solutions from IBM Partners § Telephony on IBM System i – Single, Secure, Reliable Platform for IP Telephony plus Business Applications – Reduces Total Cost of Ownership – Enhances Business Process Integration & Application Integration – Provides Operational Efficiency and Productivity – Strengthens Customer Interaction © 2007 IBM Corporation SIP Business & Collaboration Applications

IBM System i Nortel - IBM System i Unified Communications § Nortel and IBM team to deliver a simple and cost-effective Unified Communications solution for small and mid-sized businesses § Unified Communications – a complete solution on a single system – System i core business applications – Lotus Sametime unified communications & collaboration – Nortel’s suite of Vo. IP and multimedia technologies § Complemented by a portfolio of SIP clients § 4 Q 07 target availability Press Release: http: //www 2. nortel. com/go/news_detail. jsp? cat_id=-8055&oid=100223658&locale=en-US © 2007 IBM Corporation

IBM System i & the PHP Marketplace § PHP – An easy to use, open source, platform independent web scripting language with over 4. 5 M developers – The Internet’s leading scripting language deployed in ~20 M Internet domains* – Thousands of PHP applications available § System i & Zend – April 2006 announced a multi-year agreement to deliver selected Zend PHP products and solutions for i 5/OS® – Thousands have downloaded Zend Core for i 5/OS * Source: http: //www. php. net/usage. php http: //www. ibm. com/systems/i/software/php © 2007 IBM Corporation

IBM System i My. SQL for i 5/OS § My. SQL is … – the leading open source database with over 11 million installations – the most popular database to use with PHP applications § Now offering My. SQL database on i 5/OS § Future: Integrate My. SQL with DB 2 for i 5/OS – DB 2 for i 5/OS to become a certified My. SQL storage engine – Implement online and transactional My. SQL applications while storing data in DB 2 © 2007 IBM Corporation

IBM System i & i 5/OS – Integrated by Design Traditional Systems System i i 5/OS Directory Backup & Recovery ns nicatio u Comm Online Transaction Processing • Higher-level functions exposed to users and applications based on SLIC services • Graphical user interface • Vast range of high-level language functions (C/C++, RPG, COBOL) Technology Independent Machine Interface System Licensed Internal Code • Process control • Resource management • Integrated SQL-compliant database • Security enforcement • Network communications • File systems • Storage management • Java Virtual Machine (JVM) • Other primitives Security Relational Database Java Sys Man tems agem ent Operating System Hardware & Microcode 64 -bit POWER 5+ © 2007 IBM Corporation

IBM System i There’s Real Value in Integration System i § Higher reliability i 5/OS § Simplicity • Higher-level functions exposed to users and applications based on SLIC services • Graphical user interface • Vast range of high-level language functions (C/C++, RPG, COBOL) § Optimization § Automation § Security - less effort, less cost Technology Independent Machine Interface § Ease of operations § Lower overall TCO System Licensed Internal Code • Process control • Resource management • Integrated SQL-compliant database • Security enforcement • Network communications • File systems • Storage management • Java Virtual Machine (JVM) • Other primitives 64 -bit POWER 5+ © 2007 IBM Corporation

IBM System i Integration yields higher reliability Other servers: System i: Disk I/O Cards Rack System Unit Panels Tape System i Assembled Factory tested Preloaded i 5/OS Disk . . . plus software layers Operating system Relational database Transaction monitor Security Systems management Internet functionality Relational database Internet functionality Security Systems Management Transaction monitor Hardware & operating software built, integrated and tested by IBM Rochester © 2007 IBM Corporation

IBM System i Integration yields simplicity PC Servers: Multiple workloads, multiple servers More… § Staff § Licenses § Complexity § Money Less… § Manageable § Efficient § Flexible § ROI System i: Multiple workloads, one server Linux § More effective use of people and IT resources § More manageable and responsive to change § Faster deployment and ROI © 2007 IBM Corporation

IBM System i Academic Initiative § Systems and software available to schools – Remote access to System i HUB – Special educational discounts on System i solutions – Software included at no charge § Faculty Education – Annual Summer School events – Scholarships to educational events – Variety of educational offerings ► Web-based 100 s of colleges and universities in 25 countries teach System i concepts and skills content ► Classroom offerings ► Regional events § Curriculum – Course modules – IBM educational material ibm. com/systems/i/academicinitiative © 2007 IBM Corporation

IBM System i Simplify your Infrastructure with System i § Reduce complexity and costs Pool resources and manage multiple OS environments on a single server § Handle constant changes Automatically respond to changes in processor demand with logical partitioning § Save time and money Simplify management of IT resources with I/O virtualization § Increase business agility Expand with broad application portfolio § Deliver business continuity Protect consolidated resources © 2007 IBM Corporation

IBM System i IDC: The ROI of Infrastructure Simplification System i customer case studies of Windows & Linux server consolidation – Average ROI of 258%, payback in less than 6 months – Application availability improved by 99% – Server support costs reduced by more than 50% – Time to perform standard operations reduced by 68% – User support reduced by 28% – Desktop support cut by nearly 50% Source IDC White Paper September 2005: Infrastructure Simplification and the ROI of Consolidating Windows, Linux, and AIX 5 L Applications on IBM e. Server i. Series Systems © 2007 IBM Corporation

IBM System i Integration yields security – less effort, less cost Other server environments System i & i 5/OS Policies Auditing Management tools Users Applications Operating System Database Data files Data objects Program objects Virus files Program Operating System Database Hardware SSL/TLS VPN Exit points Hardware § No single implementation covers everything § Susceptible to viruses and tampering § Can be difficult and costly to secure § Single, consistent, system-wide security § Architecture promotes security and integrity § Easier, less costly to secure © 2007 IBM Corporation

IBM System i Distinguishing Cost from Value System i e-commerce Supply Chain Mgmt ERP To be valued by the business, bring value to the business! Business Intelligence the business value line Systems integration Systems management Database administration cost Mail Collaboration benefit Cust Relationship Mgmt Resource management Windows Server Network management Security Performance tuning © 2007 IBM Corporation UNIX, Linux

IBM System i ITG Report – Value Proposition for System i “very reliable” “very stable” “extremely high availability” “highly dependable” “rock-solid reliability” “extremely reliable” “ 99. 999% uptime” “completely reliable” “virtually 100% uptime” “highly available” “continuous availability” The ability of the System i to deliver high levels of reliability and availability was the most highly valued strength of this platform Source: Cost/Benefit Case for JD Edwards Enterprise. One Deployment in Midsize Businesses; International Technology Group, May 2007 © 2007 IBM Corporation

IBM System i A Product of Continuous Innovation System i Model Life 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 = 48 bit CISC © 2007 IBM Corporation = 64 bit RISC

IBM System i Versatility = On Demand Operating Environment § Align information technology with business priorities § Enable business flexibility and responsiveness § Reduce cost § Improve asset utilization § Address new business opportunities Integration / Virtualization / Automation © 2007 IBM Corporation

IBM System i Infrastructure Consolidation Reduces Costs “Consolidating our UNIX applications on AIX 5 L along with i 5/OS, and Domino, in multiple partitions on a single server has delivered IT infrastructure cost savings of 40%. The e. Server i 5 offers flexibility, performance, and scalability options to match our aggressive business plan for growth. This is the vision that the industry has been looking for!" Ken Andre CIO Greif © 2007 IBM Corporation Greif is a world leader in industrial packaging products and services. With over 175 operating locations in more than 40 countries, Greif is positioned to serve local, national or multinational customers where they do business.

IBM System i A Sample Configuration LOB Applications & Domino IP Telephony Samba File Server AIX Application i 520 2 -way (6000 CPW) System x x 346 with IXA 4 LPARs System i 6 Operating Systems 7 Environments 1 BOX Marketing Application HMC © 2007 IBM Corporation Citrix Linux Firewall Blade. Center Blades with i. SCSI

IBM System i Summary - Why i? § Fostering growth and innovation in solutions § There’s real value in integration – Higher reliability – Simplicity – Optimization – Automation – Security – Ease of operations – Lower overall TCO § The architecture securely paves the way for technology leadership without disrupting your business § Versatility to respond to opportunities and grow your business ibm. com/systems/i © 2007 IBM Corporation