IBM z Enterprise EC 12 z EC 12

IBM System z Evolution of hybrid computing with IBM System z IBM z. Enterprise® 196 (z 196) First ever multiplatform computer – mainframe and distributed with single management July 2010 Nov 2010 Data. Power® XI 50 z within the IBM z. Enterprise Blade. Center® Extension (z. BX) Mar 2011 Availability of z. BX with IBM POWER 7® blades and IBM Smart Analytics Optimizer 2 Availability of Linux® on IBM System x® on HX 5 blades in the z. BX Jul 2011 Announce IBM z. Enterprise 114 Sep 2011 Oct 2011 IDAA – evolution of IBM Smart Analytics Optimizer – coming out of the z. BX and into Netezza technology Availability of Microsoft® Windows® on System x blades in z. BX and APIs Dec 2011 Aug 2012 IBM z. Enterprise EC 12 (z. EC 12) Next generation of hybrid computing © 2012 IBM Corporation

IBM System z z. EC 12 Overview 3 • Machine Type – 2827 • 5 Models – H 20, H 43, H 66, H 89 and HA 1 • Processor Units (PUs) – 27 (30 for HA 1) PU cores per book – Up to 16 SAPs per system, standard – 2 spares designated per system – Dependent on the H/W model - up to 20, 43, 66, 89, 101 PU cores available for characterization • Central Processors (CPs), Internal Coupling Facility (ICFs), Integrated Facility for Linux (IFLs), System z Application Assist Processors (z. AAPs), System z Integrated Information Processor (z. IIP), optional - additional System Assist Processors (SAPs) – Sub-capacity available for up to 20 CPs • 3 sub-capacity points • Memory – RAIM Memory design – System Minimum of 32 GB – Up to 768 GB per book – Up to 3 TB for System and up to 1 TB per LPAR • 32 GB Fixed HSA, standard • 32/64/96/112/128/240/256 GB increments - Flash Express • I/O – 6 GB/s I/O Interconnects – carry forward only – Up to 48 PCIe interconnects per System @ 8 GB/s each – Up to 4 Logical Channel Subsystems (LCSSs) – Up to 3 Sub-channel sets per LCSS • STP - optional (No ETR) © 2012 IBM Corporation

IBM System z z. EC 12 Continues the CMOS Mainframe Heritage Begun in 1994 5. 5 GHz 5. 2 GHz 6000 4. 4 GHz 5000 MHz/GHz 4000 3000 2000 1. 7 GHz 1. 2 GHz 770 MHz 1000 0 4 2000 z 900 2003 z 990 2005 z 9 EC 2008 z 10 EC 2010 z 196 2012 z. EC 12 189 nm SOI 16 Cores Full 64 -bit z/Architecture 130 nm SOI 32 Cores Superscalar Modular SMP 90 nm SOI 54 Cores System level scaling 65 nm SOI 64 Cores High-freq core 3 -level cache 45 nm SOI 80 Cores OOO core e. DRAM cache RAIM memory z. BX integration 32 nm SOI 101 Cores OOO and e. DRAM cache improvements PCIe Flash Architectural extensions for scaling © 2012 IBM Corporation

IBM System z z. EC 12 – Overall Attribute Highlights (compared to z 196) • 50% more cores in a CP chip – Up to 5. 7% faster core running frequency – Up to 25% capacity improvement over z 196 uni-processor • Bigger caches and shorter latency – Total L 2 per core is 33% bigger – Total on-chip shared L 3 is 100% bigger – Unique private L 2 designed to reduce L 1 miss latency by up to 45% • 3 rd Generation High Frequency, 2 nd Generation Out of Order Design – Numerous pipeline improvements based on z 10 and z 196 designs – # of instructions in flight is increased by 25% • New 2 nd level Branch Prediction Table for enterprise scale program footprint – 3. 5 x more branches • Dedicated Co-processor per core with improved performance and additional capability – New hardware support for Unicode UTF 8<>UTF 16 bulk conversions • Multiple innovative architectural extensions for software exploitation 5 © 2012 IBM Corporation

IBM System z z. EC 12 PU core design • Derived from z 196 core – – – Enhancing z 196 Out of Order (Oo. O) execution design Improved pipeline balance / reduced bottlenecks Enhanced branch prediction latency and I-fetch throughput Numerous small / local improvements to improve execution bandwidth and throughput Can decode up to 3 instructions per cycle and initiate the execution of up to 7 instructions per cycle • Main Highlights – New 2 nd-level cache design • Distinct cache structures for instructions and operand L 2 • 33% larger (1 MB each) and with improved latency on L 1 misses – New 2 nd-level branch prediction array • Improve capacity (24 K branches) for large footprint enterprise workloads – Crypto / compression Co-processor per core • Faster improved startup latency • Improved Co. P cache handling with effective miss latency reduction • Support for Unicode UTF 8<>UTF 16 conversions (CU 12/CU 21 bulk improvements) – Low-level power optimization at various design levels • Enable higher frequency within similar physical power constraints • Power capping features for DCA N-mode – Support new architectural features, such as • Transactional execution (TX) • Run-time instrumentation (RI) • EDAT-2 6 © 2012 IBM Corporation

IBM System z Processor chip optimized for software performance Exploited by Java, PL/I, compilers, DB 2, more • Our leadership in microprocessor design supports a boost in performance for all workloads – Second generation out of order design – Multi-level branch prediction supports complex workloads • Larger caches to optimize data serving environments – Almost 2 x on chip and 2 x additional on book Excellent Results: Up to 45% Improvement for Java workloads 1 Up to 27% Improvement in CPU intensive int & float C/C++ applications 1 Up to 30% Improvement in throughput for DB 2 for z/OS operational analytics 2 More than 30% Improvement in throughput for SAP workloads 1 • New hardware functions optimized for software performance – Transactional Execution Facility for parallelism and scalability – Runtime Instrumentation Facility is intended to help reduce Java overhead – 2 GB page frames are intended to offer performance improvements for DB 2 buffer pools and Java heaps – Up to 30% improvement in IMS throughput due to faster CPU and cache, compilers, and more 1 – New IBM Enterprise PL/I compiler is planned to exploit and get a performance boost from decimal format conversions facility 1 Based 2 on preliminary internal measurements and projections Aa measured by the IBM 9700 Solution Integration Center. The measured operational BI workload consists of 56 concurrent users executing a fixed set of 160, 860 Cognos reports. Compared DB 2 v 10 workload running on IBM's z 196 w/10 processors to a z. EC 12 w/10 processors 7 © 2012 IBM Corporation

IBM System z Cache Topology – z 196 vs. z. EC 12 Comparison 4 L 4 Caches 192 MB Shared e. DRAM L 4 384 MB Shared e. DRAM L 4 24 MB Shr e. DRAM L 3 L 2 L 1 L 2 L 1 L 2 L 1 L 2 L 1 6 L 3 s, 36 L 1 / L 2 s 48 MB Shr e. DRAM L 3 L 2 L 1: 64 KI + 128 KD 8 w DL 1, 4 w IL 1 256 B line size L 1: 64 KI + 96 KD 8 w DL 1, 4 w IL 1 256 B line size L 2 Private 1. 5 MB Inclusive of L 1 s 12 w Set Associative 256 B cache line size L 2 L 3 Shared 24 MB Inclusive of L 2 s 12 w Set Associative 256 B cache line size Private 1 MB Inclusive of DL 1 Private 1 MB Inclusive of IL 1 8 w Set Associative 256 B cache line size L 3 Shared 48 MB Inclusive of L 2 s 12 w Set Associative 256 B cache line size L 4 192 MB Inclusive 24 w Set Associative 256 B cache line size L 4 384 MB Inclusive 24 w Set Associative 256 B cache line size z 196 8 48 MB Shr e. DRAM L 3 24 MB Shr e. DRAM L 3 6 L 3 s, 24 L 1 / L 2 s L 2 L 1 z. EC 12 © 2012 IBM Corporation

IBM System z z. EC 12 Processor Unit allocation/usage Model Books/ PUs CPs IFLs u. IFLs z. AAPs z. IIPs ICFs Std SAPs Optional SAPs Std. Spares Rsvd. PUs H 20 1/27 0 -20 0 -19 0 -10 0 -20 4 0 -4 2 1 H 43 2/54 0 -43 0 -42 0 -21 0 -43 8 0 -8 2 1 H 66 3/81 0 -66 0 -65 0 -33 0 -66 12 0 -12 2 1 H 89 4/108 0 -89 0 -88 0 -44 0 -89 16 0 -16 2 1 HA 1 4/120 0 -101 0 -100 0 -50 0 -101 16 0 -16 2 1 • z. EC 12 Models H 20 to H 89 use books with 27 core MCMs; Model HA 1 has 4 books with 30 core MCMs -Each MCM uses PU chips with a combination of 4, 5 and 6 active cores • Maximum number of logical ICFs or logical CPs supported in a CF LPAR is 16 • Reserved PU not available for customer purchase • Concurrent Book Add is available to upgrade from model H 20 to model H 89 Notes: 1. At least one CP, IFL, or ICF must be purchased in every machine 2. One z. AAP and one z. IIP may be purchased for each CP purchased even if CP capacity is “banked” 3. “u. IFL” stands for Unassigned IFL 9 © 2012 IBM Corporation

IBM System z z. BX – A Uniquely Configured Extension of the z. Enterprise • z. BX Model 003 supported by z. EC 12 – Investment protection – Model 002 upgrades to Model 003 z. BX Machine Type: 2458 Model: 003 • No need to make changes to applications and application certifications are inherited from blades • Managed by Unified Resource Manager – Management of resources as defined by your business goals and objectives – Integrated network for better security, control and faster time to value PS 701 blades (112 max) Up to 112 HX 5 (7873) blades (56 max) Data. Power XI 50 z (28 max) 1 -4 Racks based on number of installed blades One z. BX per z. EC 12 – Programmable interfaces (APIs) to connect with system management tools for total management capabilities - IBM Tivoli Monitoring (ITM) has been enhanced to use the APIs Optional Acoustic Doors Optional Rear Door Heat Exchanger Upgradeable from z. BX Model 002 10 © 2012 IBM Corporation

IBM System z Continuing to build a multi-platform roadmap for the future Strengthening the story • IBM Intends to deliver new Systems Director capability through Unified Resource Manager APIs 1 – Ability to discover, inventory, and visualize z. BX resources under the Systems Director umbrella – Image management provided for blades with in a z. BX to support provisioning of new virtual servers – Energy Management of the z. BX to lower energy consumption and costs – Power capping on System x and Power blades and power savings for Power blades • In the future, System z will continue to expand in the hybrid computing area 1 • IBM intends to deliver workload-aware optimization for System x blades through function in Unified Resource Manager 1 • IBM intends to deliver automated multi-site recovery for z. BX hardware components based upon Geographically Dispersed Parallel Sysplex™ GDPS® technologies. 1 1 All statements regarding IBM future direction and intent are subject to change or withdrawal without notice and represents goals and objectives only. 11 11 © 2012 IBM Corporation

IBM System z Flexible Connectivity on z. EC 12 Improving bandwidth, granularity and options for connections For Clustering Heterogeneous environments HMC • HCA-3 Infini. Band® Coupling Links • z. BX • New IBM z. Aware partition managed from HMC • Location to run Unified Resource Manager – – 12 x Infini. Band – 1 x Infini. Band (4 ports) improved scalability • ISC-3 (peer mode only) 1 • STP – Intraensemble data network (IEDN) – Intranode management network (INMN) – Increased 10 Gb Ethernet connectivity within z. BX • To Pure. Systems – Improved broadband security – 10 Gb Ethernet including monitoring CPU, energy, workload performance • Host of the ensemble – controlling all functions of the ensemble • Primary with Alternate needed for DR Within z. EC 12 • PCIe I/O Infrastructure • I/O Drawer and I/O Cage • Flash Express HMC To the Data • FICON® Express 8 S (PCIe-based) – SX and 10 KM LX • FICON Express 81 To the Network • FICON Express 41 – SX and 10 km LX • Enhanced channel subsystem • OSA-Express 4 S PCIe based) – 10 Gb Ethernet LR and SR – 1 Gb Ethernet SX and LX – 1000 BASE-T Ethernet • OSA-Express 31 – 10 Gb Ethernet – 1000 BASE-T Ethernet – SX and 10 KM LX 1 Carry 12 forward only © 2012 IBM Corporation

IBM System z Introducing Flash Express Time to Read Data measured in System z Instructions • Flash Express is intended to improve System z availability – Slash latency delays from paging • Flash Memory is much faster than spinning disk • Flash Memory is much slower than main memory • Flash Memory takes less power than either • z. EC 12 offers optional Flash Express memory cards – Supported in PCIe I/O drawer with other PCIe I/O cards – Installed in pairs for availability – No HCD/IOCP definitions required More Latency – Make your start of day processing faster – Designed to eliminate delays from SVC Dump processing Real Memory: (256 B line) ~100 Instructions Flash Memory (4 K page) ~100 K Instructions • Assign Flash Memory to partitions like main memory – Assignment is by memory amount, not by feature – Each partition’s Flash Memory is isolated like main memory – Dynamically increase the partition maximum amount of Flash – Dynamically configure Flash Memory into and out of the partition 13 External Disk (4 K page) ~5, 000 K Instructions © 2012 IBM Corporation

IBM System z Relative Access Times for different technologies Access time CPU Cache < 20 ns Random Access Memory (RAM) < 200 ns Flash Express Solid State Drive (SSD) Storage Spinning Disk Drive WORM, Tape Library 14 5 -20 micro sec. 1 -3 ms < 10 ms seconds © 2012 IBM Corporation

IBM System z Capacity Planning in a nutshell MIPs tables GHz ? MSUs ratings Hiper. Dispatch Don’t use “one number” capacity comparisons! Work with IBM technical support for capacity planning! Customers can now use z. PCR The IBM Processor Capacity Reference (z. PCR) is a free tool available for download that can be used to size your System z processors. 15 © 2012 IBM Corporation

IBM System z z. EC 12 Vs z 196 Vs z 10 EC Vs z 9 EC capacity comparison • • z 9 EC up to 54 -way: PCI 193 – 18, 505 z 10 EC up to 64 -way: PCI 214 – 31, 826 z 196 up to 80 -way: PCI 240 – 52, 286 z. EC 12 up to 101 -way: PCI 240 – over 78, 426 Note: For z. EC 12, z/OS V 1. 13 LSPR numbers quoted; z/OS 1. 11 for others z. EC 12 z 196 z 10 EC z 9 EC 16 © 2012 IBM Corporation

IBM System z Performance Drivers with z. EC 12 • Hardware – Memory subsystem • Focus on keeping data "closer" to the processor unit • Larger L 2 cache • Double size of both chip-level and book-level shared caches – Processor • • • Improved Out-Of-Order execution Better branch prediction – added BTB 2 (Branch Target Buffer) Add another execution unit pair Improved grouping of instructions (pipeline) Up to 6 processor units per chip – Up to 101 configurable processor units – 3 sub-capacity settings • Hiper. Dispatch – Exploits new chip configuration • Variability among workloads – Moving from z 196 to z. EC 12 expected to be less than last few migrations • Fairly balanced improvements to both processor and memory subsystem – Moving from z 10 and earlier machines expected to be similar to moves to z 196 17 © 2012 IBM Corporation

IBM System z z. EC 12 supports two different internal I/O infrastructures • Infini. Band I/O infrastructure first introduced on the z 10 – Infini. Band fanouts supporting the 6 GB/s Infini. Band I/O interconnect – Infini. Band I/O card domain multiplexers with Redundant I/O interconnect in: • The 14 U, 28 -slot, 7 -domain I/O cage (carry forward only) • The 5 U, 8 -slot, 2 -domain I/O drawer (carry forward only) – Selected legacy I/O feature cards • Carry forward for System MES only • PCI Express Generation 2 (PCIe Gen 2) I/O infrastructure introduced with z 196 and z 114 – – – PCIe fanouts supporting the 8 GB/s PCIe I/O interconnect PCIe switches with Redundant I/O interconnect for I/O domains in a 7 U, 32 -slot, 4 -domain I/O drawer FICON Express 8 S and OSA-Express 4 S (Gb. E and 10 Gb. E) features New Flash Express, OSA-Express 4 S 1000 BASE-T and Crypto Express 4 S features PCIe I/O drawers for New Builds, Migration Offerings and System z Exchange Programs • New Build z. EC 12 supports PCIe I/O Drawers ONLY – Maximum 5 drawers • Upgrades from z 196 and z 10 EC will allow carry forward of: – I/O Cage (Maximum 1) – I/O Drawer (Maximum 2) – PCIe I/O Drawer (from z 196 only) 18 © 2012 IBM Corporation

IBM System z z. EC 12 GA 1 Features Supported – I/O Cage, I/O Drawer, PCIe I/O Drawer Supported features • Features – PCIe I/O drawer – Crypto Express 4 S – Flash Express – FICON Express 8 S • SX and LX – OSA-Express 4 S • 10 Gb. E LR and SR 32 I/O slots • Gb. E SX, LX • 1000 BASE-T • Features – I/O cage and I/O drawer (Carry Forward ONLY on System MES – Maximum of 44 features - no ADDs) – Not Supported: ESCON, older FICON, FICON Express 4 LX 4 km, OSA-Express 2, PSC – Crypto Express 3 – FICON Express 8 – FICON Express 4 10 km LX and SX – ISC-3 – OSA-Express 3 • 10 Gb. E, 1000 BASE-T 19 28 slot I/O cage 8 slot I/O drawer © 2012 IBM Corporation

IBM System z Channel Sub-System Enhancements for z. EC 12 • z. EC 12 channel subsystem enhanced with new channel path selection algorithms designed to provide improved throughput and I/O service times when abnormal conditions occur • Abnormal conditions include the following: – – – – Multi-system work load spikes Multi-system resource contention in the SAN or at the CU ports SAN congestion Destination port congestion Firmware failures in the SAN, channel extenders, DWDMs, control units Hardware failures - link speeds did not initialize correctly Cabling Errors Dynamic changes in fabric routes • When conditions cause an imbalance in performance (I/O latency/throughput), channel subsystem will bias the path selection away from poorer performing paths toward the well performing paths • Accomplished by exploiting in-band I/O instrumentation and metrics of System z FICON and z. HPF protocols and new intelligent algorithms in the channel subsystem 20 © 2012 IBM Corporation

IBM System z Crypto Express 4 S • Three configuration options for the PCIe adapter • One PCIe adapter per feature – Initial order – two features • • FIPS 140 -2 Level 4 Installed in the PCIe I/O drawer Up to 16 features per server Prerequisite: CPACF (FC 3863) – Only one configuration option can be chosen at any given time – Switching between configuration modes erases all card secrets • Exception: Switching from CCA to accelerator or vice versa • Accelerator – For SSL acceleration – Clear key RSA operations • Enhanced: Secure IBM CCA coprocessor (default) – Optional: TKE workstation (FC 0841) for security-rich, flexible key entry or remote key management • New: IBM Enterprise PKCS #11 (EP 11) coprocessor – Designed for extended evaluations to meet public sector requirements • Both FIPS and Common Criteria certifications – Required: TKE workstation (FC 0841) for management of the Crypto Express 4 S when defined as an EP 11 coprocessor – Supported on Crypto Express 4 S only 21 © 2012 IBM Corporation

IBM System z overall RAS Strategy …. . Continuing our RAS focus helps avoid outages Sources of Outages Pre z 9 -Hrs/Year/Syst- Prior Servers Impact of Outage Unscheduled Outages Scheduled Outages Planned Outages Preplanning requirements Power & Thermal Management 22 z 10 EC z 196 z. EC 12 ü ü ü ü ü In cr z 9 EC ea se d Fo cu s ov er tim e • Improved Silicon Reliability • Improved Mechanical Component Reliability © 2012 IBM Corporation

IBM System z IBM z. Aware – IBM System z Advanced Workload Analysis Reporter • Monitors z/OS OPERLOG messages including all z/OS console messages, ISV and application generated messages • Can monitor across a sysplex Expert Knowled ge • Samples every 2 minutes • Reports on 10 -minute time slices • Uses 90 -day baseline created from SYSLOG IBM z. Aware • Detects anomalies monitoring systems miss: – Messages may be suppressed or rare – Messages may indicate a trend Integrate d • Reports unique messages and a “score” Machin e Learnin g Intuitiv e • Color-coded, browser-based (IE 8, Firefox) • XML Output consumable through published API, can drive ISV products Vertical bar shows the number of unique messages in a 10 minute interval Finds Anomalies that would be Hard to Detect Trends Abnormalities Unusual situations Scoring of messages color coded from common (blue) to rare (orange) 23 © 2012 IBM Corporation

IBM System z A closer look inside IBM z. Aware View IBM z. Aware results z/OSMF Control IBM z. Aware -specific knobs via GUI IBM z. Aware GUI rn e tom IBM z. Aware Host Partition us C EC 12/z 196/z 114 Host 2 z. EC 12 Host 1 ork w t e z/OS operlog LOGGER Data Transport z/OS operlog LOGGER Data Transport z/OS Web Server Analytics Results Persistent Storage Models File System Data Retrieval LPAR u PT I Manage IBM z. Aware Firmware partition (similar to CF) nn el Hiper. Sockets OSA (for data from other servers) LPAR Hiper. Sockets OSA (for data from other servers) IBM z. Aware occupies an LPAR, which will reduce the number of LPARs available for customer use Note: z/OS 1. 13 plus PTFs or higher for monitored client 24 © 2012 IBM Corporation

IBM System z Critical Questions Answered by IBM z. Aware • When a problem occurs – Which z/OS image is behaving abnormally • Lots of unique messages • High score generated by unusual message ids or an unusual patterns of message ids – When did the z/OS image start to behave abnormally – For a selected 10 minute interval either the current 10 minute interval or intervals in the past • What message ids are unusual • Are messages issued in context within expected messages pattern • Is a component emitting unusual message ids • How often did the message id occur • Within the 10 minute interval when did the message id start t occur – Did the z/OS image produce the same messages for the corresponding interval in the past • After a change has been made – Are new unusual messages being issued during periods immediately following changes like • New software levels (operating system, middleware , applications) • Updated system settings / system configurations – Are more messages issued than expected • When looking for the cause of a random, intermittent problem – Are new unusual messages being issued during periods before the problem is reported or during the periods when the problem is being reported – Are more messages issued then expected – Are messages issued out of context • Yesterday, last week, last month, … 25 EC 12 TLLB 25 © 2012 IBM Corporation

IBM System z Synergy with z. EC 12 operating systems Linux on System z z/OS § Java exploitation of Transactional Execution for increased parallelism and scalability § Enhanced security support for digital signatures § Faster problem determination with IBM z. Aware for improved availability § Improve availability and performance with Flash Express § 2 GB page support § Simpler Specialty Engine (z. IIP) exploitation § z/OS v 1. 13 exploitation of new hardware § Plus over 4, 100 applications enabled on z/OS® § Improved consolidation ratio through new capacity performance § Improved I/O performance using High Performance FICON (z. HPF) § Application and Linux optimization enabled by full exploitation of z. Architecture extensions § Optimized system setup via Linux health checker § FCP end-to-end data integrity checking for applications and storage subsystems § Plus over 3, 000 applications on System z z/TPF § Support for 86 CPUs § Hardware exploitation for performance improvements z/VM § z/VM® Compatibility support § Guest exploitation support for new encryption technology § Improved I/O performance using High Performance FICON (z. HPF) for guest exploitation z/VSE § 64 -bit addressing with z/VSE® V 5. 1 § Strong interoperability with Linux on System z § New CICS functionality (CICS Explorer) § AND with blades on the z. BX there are even more options with applications on AIX, Linux on System x or Microsoft Windows 26 © 2012 IBM Corporation

IBM System z Operating System Support for z. EC 12 • Currency is key to operating system support and exploitation of future servers • The following releases of operating systems are supported on z. EC 12 (refer to PSP buckets for any required maintenance): Operating System Supported levels z/OS • z/OS V 1 R 13 with PTFs (Exploitation) • z/OS V 1 R 12 with PTFs (Exploitation) • z/OS V 1 R 11 with PTFS (Toleration, Lifecycle extension required after 09/12) • z/OS V 1 R 10 (Toleration, Lifecycle Extension Required) • Planned with the following distributions: • SUSE SLES 10 and SLES 11 • Red Hat RHEL 5 and RHEL 6 • z/VM 5. 4, 6. 1, and 6. 2 will support z. EC 12 with PTFs Linux on System z z/VM z/VSE z/TPF • z/VSE compatibility with PTFs, support for: • z/VSE 4. 3 • z/VSE 5. 1 • V 1. 1 Support for p Blades in z. BX Model 003 – AIX 5. 3 Technology Level 12 or higher, AIX 6. 1 Technology Level 5 or higher, AIX 7. . All with Power. VM™ Enterprise Edition • Support for Linux and Windows* environments on select System x blades in z. BX Model 003 – 64 bit version support only – Red Hat RHEL 5. 5 and higher, 6. 0 and higher and SLES 10 (SP 4), 11 SP 1 and higher – Microsoft Windows Server 2008 R 2 and Microsoft Windows Server 2008 (SP 2) (Datacenter Edition recommended) 27 © 2012 IBM Corporation

IBM System z z/OS Support Changes • Shifted z/OS to a 2 year release cycle • Version 2. 1 targeted to deliver in 2 H 2013 – – – – Release delivery cycle planned to be every 2 years, in second half of year Will continue to deliver key hardware support and updates between releases Maintain N-2 release migration (accommodate a 2 - or 4 -year migration cycle) 5 -year Support with optional fee based service extension to accommodate migration z/OSMF on the same release and service cycle Minimum supported HW levels (z 9 server or later, and 3990 -3 controller or later) R 12 Support extended to 4 years, R 13 Support extended to 5 years; bridges v 2 migrations 2008 R 1. 10 R 1. 11 R 1. 12 R 1. 13 v 2. 1 v next 2 v next 3 2009 2010 2011 3 Year Support 2012 2013 2014 Life Cycle Ext. 3 Year Support 2015 2017 2018 2019 2020 2021 2022 Extended Service Life Cycle Ext. 3 Year Support 2016 +1 Support 3 Year Support Extended Service LCE + 2 Support Extended Service 5 Year Support Exten Announced via Statement Of Direction on April 11, 2012 28 © 2012 IBM Corporation

IBM System z Statements of Direction • The IBM z. Enterprise EC 12 will be the last high-end server to support connections to an STP Mixed CTN. This includes the Sysplex Timer® (9037). After z. EC 12, servers that require time synchronization, such as to support a base or Parallel Sysplex®, will require Server Time Protocol (STP), and all servers in that network must be configured in STP-only mode. • Removal of support for Ethernet half-duplex operation and 10 Mbps link data rate : The OSAExpress 4 S 1000 BASE-T Ethernet feature is planned to be the last copper Ethernet feature to support halfduplex operation and a 10 Mbps link data rate. The IBM z. Enterprise EC 12 servers are planned to be the last IBM System z servers to support half-duplex operation and a 10 Mbps link data rate for copper Ethernet environments. Any future 1000 BASE-T Ethernet feature will support full-duplex operation and autonegotiation to 100 or 1000 Mbps exclusively. • Removal of ISC-3 support on System z: The IBM z. Enterprise EC 12 is planned to be the last high-end System z server to offer support of the Inter. System Channel-3 (ISC-3) for Parallel Sysplex environments at extended distances. ISC-3 will not be supported on future high-end System z servers as carry forward on an upgrade. Previously we announced that the IBM z. Enterprise 196 (z 196) and IBM z. Enterprise 114 (z 114) servers were the last to offer ordering of ISC-3. Enterprises should continue migrating from ISC-3 features (FC 0217, FC 0218, FC 0219) to 12 x Infini. Band (FC 0171 - HCA 3 -O fanout) or 1 x Infini. Band (FC 0170 HCA 3 -O LR fanout) coupling links. • Removal of OSA-Express 3 support on System z: The IBM z. Enterprise EC 12 is planned to be the last high -end System z server to offer support of the Open System Adapter-Express 3 (OSA-Express 3 #3362, #3363, #3367, #3370, #3371) family of features. OSA-Express 3 will not be supported on future high-end System z servers as carry forward on an upgrade. Enterprises should continue migrating from the OSA-Express 3 features to the OSA-Express 4 S features (FC 0404, FC 0405, FC 0406, FC 0407, FC 0408). All statements regarding IBM's plans, directions, and intent are subject to change or withdrawal without notice. Any reliance on these Statements of General Direction is at the relying party's sole risk and will not create liability or obligation for IBM. 29 © 2012 IBM Corporation

IBM System z Statements of Direction … • Removal of support for connections to an STP Mixed CTN: The IBM z. Enterprise EC 12 will be the last highend server to support connections to an STP Mixed CTN. This includes the Sysplex Timer® (9037). After z. EC 12, servers that require time synchronization, such as to support a base or Parallel Sysplex®, will require Server Time Protocol (STP), and all servers in that network must be configured in STP-only mode. • Removal of Crypto Express 3 support on System z: The IBM z. Enterprise EC 12 is planned to be the last highend System z server to offer support of the Crypto Express 3 feature (FC 0864). Crypto Express 3 will not be supported on future high-end System z servers as carry forward on an upgrade. Enterprises should begin migrating from the Crypto Express 3 feature to the Crypto Express 4 S feature (FC 0865). • IBM Java exploitation of IBM z. Enterprise EC 12 functions: IBM plans for future maintenance roll-ups of IBM 31 -bit and 64 -bit SDK 7 for z/OS Java(TM) Technology Edition, Version 7 (5655 -W 43 and 5655 -W 44) (IBM SDK 7 for z/OS Java), to provide exploitation of new IBM z. Enterprise EC 12 features, including: Flash Express and pageable large pages, Transactional Execution Facility, Miscellaneous-Instruction-Extension Facility, and 2 GB pages. In addition, IBM SDK 7 for z/OS Java is available for use by IBM middleware products running Java, such as IBM IMS 12 (5635 -A 03), IBM DB 2 10 for z/OS (5605 -DB 2), and the Liberty profile of IBM Web. Sphere Application Server for z/OS v 8. 5 (5655 -W 65); and is planned for use by a future release of CICS Transaction Server for z/OS. • IBM System z Integrated Information Processor (z. IIP) and IBM System z Application Assist Processor (z. AAP) Simplification: IBM z. Enterprise EC 12 is planned to be the last high-end System z server to offer support for z. AAP specialty engine processors. IBM intends to continue support for running z. AAP workloads on z. IIP processors ("z. AAP on z. IIP"). This is intended to help simplify capacity planning and performance management, while still supporting all the currently eligible workloads. In addition, IBM plans to provide a PTF for APAR OA 38829 on z/OS V 1. 12 and V 1. 13 in September 2012 to remove the restriction that prevents z. AAP-eligible workloads from running on z. IIP processors when a z. AAP is installed on the server. This is intended only to help facilitate migration and testing of z. AAP workloads on z. IIP processors All statements regarding IBM's plans, directions, and intent are subject to change or withdrawal without notice. Any reliance on these Statements of General Direction is at the relying party's sole risk and will not create liability or obligation for IBM. 30 © 2012 IBM Corporation

IBM System z Statements of Direction … • IBM plans to provide new capability within the Tivoli Integrated Service Management family of products designed to leverage analytics information from IBM z. Aware, and to provide alert and event notification. • CPU Management for System x blades: IBM intends to deliver workload-aware optimization for IBM System x Blades in the z. BX. This allows virtual CPU capacity to be adjusted automatically across virtual servers within a hypervisor, helping to insure that System x resources in the z. BX are executing to the defined SLAs. • Automated Multi-site Recovery: IBM intends to deliver automated multi-site recovery for z. BX hardware components based upon GDPS technologies. These capabilities will help facilitate the management of planned and unplanned outages across IBM z. Enterprise EC 12. • IBM Systems Director Standard Edition for Linux on System z: IBM intends to deliver new functionality in IBM Systems Director Standard Edition for Linux on System z to support IBM's z. BX. Such planned new capabilities will be designed to provide virtual image management and enhanced energy management functions for the Power Systems and System x blades. • DB 2 continues to deliver extremely high availability, security, and resiliency with its deep integration with z/OS on System z servers. Beyond the existing DB 2 support for z. EC 12 DB 2 plans further enhancements designed to improve performance in two ways: 1) using pageable large (1 MB) pages and Flash Express and 2) enabling support of 2 GB pages. • IBM intends to update CICS Transaction Server for z/OS , providing new application, platform and policy capabilities that can help clients build private clouds from new and existing CICS applications. This capability is intended to assist CICS clients deploy new and updated CICS applications faster, more easily, and with greater levels of confidence. For more information, please refer to Software Announcement dated August 21, 2012, All statements regarding IBM's plans, directions, and intent are subject to change or withdrawal without notice. Any reliance on these Statements of General Direction is at the relying party's sole risk and will not create liability or obligation for IBM. 31 © 2012 IBM Corporation

IBM System z IBM z. Enterprise EC 12 in an information-centric world Operational analytics to enable business opportunities • Most sophisticated data warehousing and analytics solutions with the fastest query performance in the market • Leverage your data to build competitive advantage Trusted resilience for unmatched security and reliability • Most secure system with 99. 999% reliability • Unified platform for rapid development of secure applications end-to-end Efficiency at scale • Most efficient and fastest system for missioncritical workloads • Increased efficiency will free up IT resources to focus on new services to drive growth • Hybrid architecture enables rapid cloud deployment 32 © 2012 IBM Corporation