IBM z Enterprise Freedom by Design IBM z

IBM z. Enterprise - Freedom by Design IBM z. Enterprise System – What’s New Bringing Hybrid Computing to Organizations of all Sizes with the IBM z. Enterprise 114 (z 114) ZSP 03509 -USEN-00 © 2011 IBM Corporation

Introducing the next steps in the evolution of z. Enterprise §New innovations to improve z. Enterprise at its core §Increase flexibility to deploy and manage enterprise clouds §New z. Enterprise designed for mid-sized clients 2 © 2011 IBM Corporation

What’s New: Delivering innovation and value at all levels Central Processing Complex § New I/O subsystem for improved system connectivity § Security enhancements § Clustering improvements § New IBM z. Enterprise 114 (z 114) for mid-sized businesses 3 z. Enterprise Unified Resource Manager § Delivering APIs to enable management of Unified Resource Manager from external tools 1 z. Enterprise Blade. Center Extension (z. BX) § Introduction of select System x blades into z. BX § Support for Linux & in the future. Windows 1 to broaden application support and integration. 1 All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only. © 2011 IBM Corporation

z. Enterprise technology designed for small and mid-sized businesses The Value Begins At the Heart with the z 114 … Up to z. Enterprise 114 (z 114) Machine Type: 2818 2 Models: M 05 & M 10 § New technology in a new package ► Modular 2 drawer design for lower cost of entry ► Granularity for right-sizing your system Additional Scale for consolidation and growth Improved data center efficiency Same Qualities of Service as the z 196 Hybrid enabled to drive workload expansion and integration ► ► § Improved Platform Economics New Software Curve ► Lower Hardware Maintenance 18% Up to an ADDITIONAL 25% Up to Scales From Up to Lower specialty engine and memory prices ► Upgradeability for investment protection 4 1 Relative 2 The Improvement in CPU intensive workloads via compiler enhancements 2 12% Total capacity improvement 1 26 - 3100 MIPS 130 available capacity settings From 1 -10 configurable cores for client use includes CPs, IFL, z. IIP, z. AAP, and ICFs From 0 -2 IBM provided spare cores ► ► Improvement for traditional z/OS workloads 1 Up to 256 GB RAIM fault tolerant memory Fully Upgradeable from the IBM System z 10 Business Class™ (z 10 BC) & IBM System z 9® Business Class (z 9 BC); and to the z 196 M 15 capacity and performance compares at equal software levels as measured by IBM Large System Performance Reference (LSPR) workloads using z/OS® 1. 11, Results may vary © 2011 IBM Corporation z 114 will exhibit up to 25% increase for CPU intensive workload as provided by multiple C/C++ compiler level improvements when going from z/OS 1. 09 to z/OS 1. 12

Providing investment protection while enabling growth § Continuing to protect your z 9® BC investment with two generation upgrades § Full upgradeability within each server family § Temporary or permanent growth when you need it z 9 EC z 10 BC™ z 10 EC™ z 114 z 196 § z 114 offers two models: ► M 05 and M 10. ► M 05 is upgradeable to M 10 § z 114 (M 10) is upgradeable to the z 196 (M 15 Air cooled only) 5 © 2011 IBM Corporation

z 114 – Under the covers Internal Batteries (optional) Power Supplies 2 x Processor Drawers, Memory & HCAs 2 x Support Elements I/O Drawer Ethernet cables for internal System LAN connecting Flexible Service Processor (FSP) cage controller cards (not shown) PCIe I/O drawers FICON & ESCON® FQC 6 Rear View Front View © 2011 IBM Corporation

Processor / Memory Subsystem Drawers (Model M 05 and M 10) One z 10 BC Drawer Two z 114 Drawers (Model M 10) § System resources split between 2 drawers (Model M 10) § Second CEC drawer (Model 10) for: – Increased specialty engine capability – Increased memory capability – Increased I/O capability • More coupling links than z 10 BC • More I/O features than z 10 BC § Planning Note: Unlike the z 196 Books, add/remove/repair of the CEC drawer is disruptive 7 © 2011 IBM Corporation

Designed and right-sized for existing and future applications requirements IFL z. IIP z. AAP ICF Add’l SAP Std SAP Spare M 05 0 -5 0 -2 2 0 M 10 0 -5 0 -5 0 -10 0 -2 2 2 Larger CP § Complete capacity matrix available on both models. § Granularity levels similar to z 10 BC to facilitate upgrades and incremental growth § Model M 10 provides specialty engine scale out capabilities § Any to any capacity upgrade/downgrade capability within the Model § CBU capability from smallest to largest capacities within the Model Smaller § On/Off Co. D within the Model 8 § Linux only and ICF only servers © 2011 IBM Corporation

Built to support future data center design, modernization and efficiencies § More performance and capacity within the same energy envelope as the z 10 BC § Supports raised floor and non-raised floor configurations § Improved installation flexibility with overhead cabling option § Reduced footprint depth by 9” (22. 8 cm) compared to z 10 BC § Optional high-voltage DC power input 9 © 2011 IBM Corporation

Linux on System z for consolidation to reduce cost § Lower acquisition costs of hardware and software vs. distributed servers – 60% less than Nehalem* § $500 per year per virtual server (TCA)* § Reduce floor space by up to 90% compared to distributed servers* § Reduce labor costs by up to 70% compared to distributed servers Consolidate 40 Oracle server cores onto 3 Linux cores on z 114 10 *NOTE ALL PRICING AND PERFORMANCE DATA IS PRELIMINARY AND FOR GUIDANCE ONLY Distributed server comparison is based on IBM cost modeling of Linux on z. Enterprise vs. alternative distributed servers. Given there are multiple factors in this analysis such as utilization rates, application type, local pricing, etc. , savings may vary by user. © 2011 IBM Corporation

Leverage the latest operating systems to exploit the full value of the z 114 z/OS Version 1 Release 13 § The new face of z/OS - the z/OS Management Facility adds new software deployment and disk management tasks and many enhancements that help create a more productive and integrated z/OS experience. § Foundation for modern batch and 'real time' batch applications - updates to shorten batch window, simplify batch programming, and give you more flexibility in deploying batch applications. § Autonomics for improved, early error detection - helps provide early warning of certain system issues before they can impact your business § Performance for new and traditional workloads § Support of new encryption and compliance standards and keys 11 z/VM® and Linux on System z z/VSE® Version 5. 1 § Server and application consolidation on § Introduces 64 -bit virtual addressing to System z using Linux and z/VM is the industry leader in large-scale, costefficient virtual server hosting § z. Enterprise extends the choice of integrated workloads through blades on z. BX § The z 114 lowers the entry cost to get started with the Enterprise Linux Server § Faster cores and a bigger system cache on the z 196 and the z 114 let you do even more with less when running Linux on z/VM § Integrated blades on z. BX will offer added dimension for workload optimization including applications on Windows z/VSE ► Reduces memory constraints ► Allows to exploit more ‘data in memory’ § Continues the z/VSE strategy of protect, integrate, and extend (in short “PIE”) ► Protect existing customer investments in applications and data on z/VSE ► Integrate z/VSE with the rest of IT ► Extend with Linux on System z to build modern integrated solutions § Exploitation of selected z. Enterprise functions and features as well as IBM System Storage options § Includes a So. D on CICS Explorer capabilities for CICS TS for VSE/ESA™ © 2011 IBM Corporation

Operating System Support for z 114 § Currency is key to operating system support and exploitation of future servers § The following are the minimum operating systems planned to run on z 114 Operating System Supported levels z/OS • V 1. 11, 1. 12, 1. 13 or higher • V 1. 10* (requires Lifecycle Extension after September 30, 2011) • V 1. 8 and 1. 9, in Lifecycle Extension • z. BX Ensemble support: z/OS V 1. 10* or higher Linux z/VM z/VSE z/TPF • Red Hat RHEL 5 • Novell SUSE SLES 11 • V 5. 4 • z. BX Ensemble support: V 6. 1 • V 4. 2 • z. BX Ensemble support V 4. 3 or higher • V 1. 1 or higher * z/OS 1. 10 support ends Sept. 30, 2011, and Lifecycle Extension is required after that date. 12 © 2011 IBM Corporation

Connectivity Enhancements New features with big performance boost Within z 1964/z 114 and to z. BX HMC § § § Location to run Unified Resource Manager – including monitoring CPU, energy, workload performance § Host of the ensemble – controlling all functions of the ensemble § Primary with Alternate needed for DR PCIe I/O Infrastructure I/O Drawer and I/O Cage 1 Intraensemble data network (IEDN) Intranode management network (INMN) For Clustering § HCA-3 Infini. Band® Coupling Links – 12 x Infini. Band (improved performance with 12 x IFB 3 protocol) – 1 x Infini. Band (4 ports) § ISC-3 (peer mode only) § IC (define only) § STP – Improved time coordination for z. BX components To the Network § OSA-Express 4 S (PCIe-based) – 10 Gigabit Ethernet LR and SR – 1 Gigabit Ethernet SX and LX § OSA-Express 3 – 1000 BASE-T Ethernet To the Data § FICON Express 8 S (PCIe-based) § ESCON – Up to 240 maximum 13 * I/O cage for z 196 only © 2011 IBM Corporation

Enhancing System z world-class security and business resiliency §Cryptographic enhancements on z. Enterprise ► Cryptography is in the “DNA” of System z hardware with Processor and Coprocessor based encryption capabilities ● Processor Clear Key for bulk encryption – key material visible in storage System z exclusive Protected Key CPACF helps to protect sensitive keys from inadvertent disclosure -- not visible to application or OS ► Crypto Express 3 enhanced to support key ANSI and ISO standards for the banking, finance and payment card industry. ● ► Enhanced display of cryptographic cards and simplified card configuration and management capabilities via the Trusted Key Entry workstation (TKE). ► Simplified master key management with ICSF enhancements providing a single point of administration within an z/OS Sysplex. ► Continued support for the next generation of public key technologies , ECC support is ideal for constrained environments such as mobile devices. ► Crypto Express 3 Coprocessor FIPS 140 -2 Level 4 hardware evaluation. §PR/SM™ designed for EAL 5 certification. §Policy driven flexibility to add capacity to real or virtual processors. §High Availability, Backup and Disaster Recovery solutions ► 14 Leverage z 114 and z 196 as part of the new GDPS®/ active-active continuous availability solution © 2011 IBM Corporation

Parallel Sysplex coexistence of Servers/CFs and coupling connectivity Increased link capabilities z 114 IFB z 9 -to-z 9 NOT supported 12 x IFB, 3 GBps Up to 150 meters 1 x IFB, 5 Gbps 10/100 km 12 x IFB, 6 GBps 150 meters ISC-3, 2 Gbps Up to 100 km z 10 EC and z 10 BC z 9 EC and z 9 BC S 07 IFB, ISC-3 Up to 100 km 12 x IFB 3 6 GBps 150 meters 12 x IFB 6 GBps 150 meters IFB, ISC-3, 1 x IFB, 5 Gbps 10/100 km z 196 IBM eserver™ z. Series® 800, 900, 890 and 990, (z 800, z 900 z 890, z 990) Not supported! 15 Note: ICB-4 s and ETR NOT supported on z 114 or z 196 © 2011 IBM Corporation

Introducing New Hybrid Capabilities To integrate, support and manage an expanding portfolio of operating environments and workloads 16 © 2011 IBM Corporation

New Blades Provide Added Flexibility for Workload Deployment and Integration § Introducing System x Blades in the z. BX – Select IBM Blade. Center HX 5 7873 dual-socket 16 -core blades – Ordered and fulfilled through System x providers and installed into the z. BX by the customer – The z. BX web page will host current blade ordering information: http: //www. ibm. com/common/ssi/cgibin/ssialias? infotype=SA&subtype=WH&appname=STGE_ZS_ZS_USEN&h tmlfid=ZSL 03128 USEN&attachment=ZSL 03128 USEN. PDF – Blades assume System z warranty and maintenance when installed in the z. BX § Unified Resource Manager will install an integrated hypervisor on blades in the z. BX – KVM-based with IBM service and support § Up to 112 Blades supported on z. BX – Ability to mix and match Data. Power XI 50 z, POWER 7 and System x blades in the same chassis for better z. BX utilization – IBM Smart Analytics Optimizer can mix with others in same rack – Number of blades supported varies by type … managed by the z. Enterprise Unified Resource Manager 17 IBM z. Enterprise Blade. Center Extension (z. BX) Machine Type: 2458 Mod 002 Optimizers • IBM Smart Analytics Optimizer • IBM Web. Sphere Data. Power Integration Appliance XI 50 z for z. Enterprise Select IBM Blades • IBM Blade. Center PS 701 Express • IBM Blade. Center HX 5 7873 One to four – 42 u racks – capacity for up to 112 blades • Up to 112 PS 701 Power blades • Up to 28 HX 5 System x blades • Up to 28 Data. Power XI 50 z blades (double-wide) • Up to 56 IBM Smart Analytics Optimizer blades © 2011 IBM Corporation

Extending support to New operating system environments § Support for Linux and in the future Windows 1 environments on select System x blades – – 64 -bit version support only Linux: RHEL 5. 5, SLES 11 SP 1 Additional versions to follow 1 In the future we are planning to support Microsoft® Windows® Server 2008 - Datacenter Edition 1 § Certifications inherited from System x § Operating Systems are customer acquired and installed Manage your mainframe and distributed environment with the same tools, same techniques, same practices § Delivering APIs to enable management of Unified Resource Manager from external tools 1 – Providing API access to Unified Resource Manager functions 18 1 All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only. © 2011 IBM Corporation

Extending z. Enterprise Unified Resource Manager Continuing to add function and management § Operational Controls enhanced with auto-discovery and configuration support for new resources ► SOD: Dynamic discovery and configuration of storage resources by Unified Resource Manager 1 § Extending management functions of Unified Resource Manager with programmatic access ► SOD: New Unified Resource Manager APIs enable discovery, monitoring and management of ensemble resources using external tools 1 ● Open documented interface available for clients – Access using common scripting languages like Perl and Python ● IBM Tivoli® will be taking advantage of the APIs: – SOD: IBM intends to enhance the Tivoli Integrated Service Management for System z portfolio to take advantage of the additional z. Enterprise ensemble monitoring and management information provided by the Unified Resource Manager APIs. ● CA Technologies, Dovetailed Technologies, CSL International and other ISVs are interested in taking advantage of the APIs 1 All 19 statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only. © 2011 IBM Corporation

Putting z. Enterprise System to the Task z/VM Blade Virtualization Future Offering AIX® on POWER 7 Linux on System x or Windows 1 Future Offering z/TPF Linux on System z z/VSE® System z Optimizers Data. Power XI 50 z z/OS Select IBM Blades IBM Smart Analytics Optimizer System z Host with Unified Resource Manager System z Hardware Management Console (HMC) Use the smarter solution to improve your application design System z PR/SM System z HW Resources Blade HW Resources Support Element z. BX Private data network (IEDN) Unified Resource Manager Customer Network 20 1 Private Management Network INMN Private Management Network (information only) Customer Network Private High Speed Data Network IEDN All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only. © 2011 IBM Corporation

New offerings to help deliver smarter computing Designed for Data Managed in a Cloud NEW! IBM Smart Analytics Optimizer V 1. 2 (preview) § Incorporating Netezza technologies to further expand number of queries that benefit from this optimizer model NEW! Cloud and Lifecycle Management for z. Enterprise Tuned to the Task § Cloud benefits through standardization, automation and virtualization of services NEW! Tivoli Integrated Service Management for System z API Support (SOD)* § Enhanced portfolio exploiting new z. Enterprise HMC interfaces 21 * All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only. © 2011 IBM Corporation

Extending the Hybrid model A new entry point for hybrid computing Introducing the IBM z. Enterprise 114, specifically designed for mid-sized businesses Increased flexibility to deploy and manage z. Enterprise New APIs for the Unified Resource Manager 1 enables end-to-end management of services and infrastructure Extending the boundaries of hybrid computing Adding support for System x blades for Linux and in the future Windows* along with Linux on z, AIX®, z/OS, z/VSE®, z/VM®, and z/TPF gives new flexibility for workload deployment 22 ZSP 03510 -USEN-00 * All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only. © 2011 IBM Corporation

Thank you! ibm. com/systems/z 23 © 2011 IBM Corporation

IBM z. Enterprise 114 (z 114) and z 196 GA 2 Key Dates for Hardware § Planned Availability Dates: – September 09, 2011 – Driver 93 • IBM z. Enterprise 14 Models M 05 and M 10 new builds • Field installed features and conversions that are delivered solely through a modification to the machine's Licensed Internal Code (LIC): • LIC only upgrades for any PU type and memory • LIC for CBU and On/Off Capacity upgrade for installed z 114 s • z 114 Capacity Setting downgrades • IBM System z 9® Business Class (z 9® BC) upgrades to z 114 • IBM System z 10™ Business Class (z 10 BC™) upgrades to z 114 • NEW z 196 s at GA 2 level • MES for new function/features for installed z 196 s • TKE Support for LIC 7. 1 – September 26, 2011 • Unified Resource manager functions: • Manage suite (#0019) enhancements • Automate/Advanced Management Firmware Suite (#0020) enhancements • Manage Firmware System x Blade (#0042) • Advanced Management Firmware System x Blade (#0046) – October 21, 2011 • Add a z. BX as an MES to the installed z 114 – December 31, 2011 • z 114 Model M 05 to M 10 upgrades • Feature adds (memory, I/O, RPQs and z. BX features) 24 * All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only. © 2011 IBM Corporation

z. Enterprise 114 Functions and Features (GA Driver 93 – September, 2011) Two hardware models Up to 10 processors configurable as CPs, z. AAPs, z. IIPs, IFLs, ICFs, or optional SAPs Up to 26 subcapacity settings across a maximum of 5 CPs Up to 256 GB of Redundant Array of Independent Memory (RAIM) for System Dedicated Spares on the Model M 10 Increased capacity processors Out of order instruction execution z 114 Doubled Coupling CHPIDs to 128 New 32 slot PCIe Based I/O Drawer Increased granularity of I/O adapters New form factor I/O adapters i. e FICON® Express 8 S and OSA-Expres 4 S Improved PSIFB Coupling Link Improved processor cache design Physical Coupling Links increased to 72 New and additional instructions Optional High Voltage DC power On Demand enhancements CFCC Level 17 enhancements Cryptographic enhancements 25 Doubled Hiper. Sockets™ to 32 Optional overhead I/O cable exit NRF Support with either top exit or bottom exit I/O and power 6 and 8 GBps interconnects z. BX Model 002 with ISAOPT, POWER 7, Data. Power and IBM System x Blades STP enhancements Platform Management from HMC Blue items denote common features between z 114 and z 196 © 2011 IBM Corporation

z. Enterprise z. BX Functions and Features One hardware model Advance Management Module z. BX is controlled by one specific z 196 or z 114 Up to 4 Racks (B, C, D and E) 1000 BASE-T and 10 Gb. E TORs z. BX Up to 112 Blades 2 Blade. Centers Chassis per rack IBM Smart Analytics Optimizer Non-acoustics doors standard POWER 7 Blades Optional Rear Door Heat Exchanger IBM System x Blades* Optional Rear acoustic door Redundant Power, Cooling and Management Modules 10 Gb. E and 1000 BASE-T Network modules 8 Gb FC modules IBM Web. Sphere Data. Power Integration Appliance XI 50 for z. Enterprise HMCs required for Unified Resource Manager Additional z. BX owned HMC required if System maintained by Third Party *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. 26 © 2011 IBM Corporation

z 114 Overview 27 § Machine Type – 2818 § 2 Models – M 05 and M 10 – Single frame, air cooled – Non-raised floor option available – Overhead Cabling and DC Power Options § Processor Units (PUs) – 7 PU cores per processor drawer (One for M 05 and two for M 10) – Up to 2 SAPs per system, standard – 2 spares designated for Model M 10 – Dependant on the H/W model - up to 5 or 10 PU cores available for characterization • Central Processors (CPs), Integrated Facility for Linux (IFLs), Internal Coupling Facility (ICFs), System z Application Assist Processors (z. AAPs), System z Integrated Information Processor (z. IIP), optional - additional System Assist Processors (SAPs) • 130 capacity settings § Memory – Up to 256 GB for System including HSA • System minimum = 8 GB (Model M 05), 16 GB (Model M 10) • 8 GB HSA separately managed • RAIM standard • Maximum for customer use 248 GB (Model M 10) • Increments of 8 or 32 GB § I/O – Support for non-PCIe Channel Cards – Introduction of PCIe channel subsystem – Up to 64 PCIe Channel Cards – Up to 2 Logical Channel Subsystems (LCSSs) § STP - optional (No ETR) © 2011 IBM Corporation

z. BX Overview § Machine Type/Model 2458 -002 – One Model with 5 configurations for IBM Smart Analytics Optimizer § Racks – Up to 4 (B, C, D and E) 2458 -002 § § Fibre Channel Disk Storage 28 *All § – 42 U Enterprise, (36 u height reduction option) – 4 maximum, 2 chassis/rack – 2 -4 power line cords/rack – Non-acoustic doors as standard – Optional Rear Acoustic Door – Optional Rear Door Heat Exchanger (conditioned water required) Chassis – Up to 2 per rack – 9 U Blade. Center – Redundant Power, cooling and management modules – Network Modules – I/O Modules Blades (Maximum 112 in 4 racks) – IBM Smart Analytics Optimizer Blades (0 to 7 to 56) – Can not mix other Blades in the same Chassis – Customer supplied POWER 7 Blades (0 to 112) – Customer supplied IBM System x Blades* (0 to 28) – IBM Web. Sphere Data. Power Integration Appliance XI 50 for z. Enterprise, M/T 2462 -4 BX (up to 28 – double width) – Non-IBM Smart Analytics Optimizer Blades can be mixed in the same chassis Management Firmware – Unified Resource Manager Top of Rack (TOR) Switches - 4 – 1000 BASE-T intranode management network (INMN) – 10 Gb. E intraensemble data network (IEDN) I/O – 8 Gb Fibre Channel (FC) connected to customer supplied disks – IBM Smart Analytics Optimizer uses DS 5020 disks – DS 5020 s not shared with Customer supplied Blades statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only. © 2011 IBM Corporation

z 114 Functional Comparison to z 10 BC Processor / Memory Virtualization and Alternative Processors § Uniprocessor Perf. § System Capacity § Processor Design § Models § Processing Units (PUs) § Granular Capacity § Memory § Fixed HSA § Virtualization § z. Enterprise Blade. Center Extension (z. BX) Connectivity § Hiper. Sockets § FICON for SANs § Total channels § Internal I/O Bandwidth § Enhanced I/O structure § Coupling § Cryptography On Demand / RAS Environmentals § LAN Connectivity § Capacity Provisioning Mgr § RAS Focus § Just in Time deployment of Capacity § Enhanced I/O structure § Monitoring § Up to 1. 18 performance improvement over z 10 BC uniprocessor* § Up to 1. 12 times system capacity performance improvement over z 10 BC § 3. 8 GHz processor chip for z 114 vs. 3. 5 GHz for z 10 BC § z 114 has 2 and z 10 BC has 1 model § z 114 has the same number of PUs as z 10 BC i. e. 10. M 10 has 2 dedicated spares § z 114 has the same number of capacity settings as z 10 BC i. e. 130 § z 114 has the same number of System memory as z 10 BC i. e. 256 GB § z 114 has the same fixed 8 GB HSA as the z 10 BC § z. Enterprise Unified Resource Manager has “workload awareness” where workloads consist of § § virtual images across the hybrid. This awareness allows Unified Resource Manager to optimize resources according to business policies established for a workload. z. Enterprise System is a truly integrated hardware platform that is able to span and intelligently manage workloads across mainframe and distributed technologies – including POWER 7 and IBM System x Blades 2 Optimizers that are supported are IBM Smart Analytics Optimizer and IBM Web. Sphere Data. Power Integration Appliance XI 50 for z. Enterprise § Doubled the number of Hipersockets to 32 § High Performance FICON for z (z. HPF) enhancements § New and improved family of FICON Express 8 S features for z 114 – Up to 160 channels § z 114 can support up to 368 channels (2 x I/O Drawers and 2 x PCIe Drawer) § z 114 has industry standard 8 GBps PCIe interconnect Vs. z 10 BC using 6 GBps Infini. Band interconnects § PCIe I/O Drawer § Improved coupling with host channel adapters using the 8 GBps interconnects § Improved AES 192 and 256 and stronger hash algorithm with Secure Hash Algorithm (SHA-512) § New family of OSA-Express 4 S features for z 114 § z 114 & z/OS (1. 9) for policy based advice and automation § z 114 can help eliminate preplanning required to avoid scheduled outages § Capacity on Demand offerings CBU and On/Off Co. D plus new Capacity for Planned Events are resident on z 114 § z 114 has ‘hot-pluggable’ I/O drawers § z 114 displays energy efficiency on SAD screens § Utilizes IBM Systems Director Active Energy Manager for Linux on System z for trend calculations and management of other servers that participate 29 * LSPR mixed workload average running z/OS 1. 9 - z 10 BC Z 01 versus z 9 BC Z 01 ** This is a comparison of the z 10 EC 10 -way and the z 9 BC 7 -way and is based on LSPR mixed workload average running z/OS 1. 9 © 2011 IBM Corporation

The Evolution of System z Building on a strong track record of technology innovation with specialty engines DB Compression, SORT, Encryption Transparent for applications 2010 2006 2004 2001 1997 Internal Coupling Facility (ICF) 30 Integrated Facility for Linux (IFL) System z 9 Application Assist Processor (z. AAP) Eligible workloads: Java and XML IBM System z 10 Integrated Information Processor (IBM z. IIP) Optimizers, Accelerators, Hybrid processing Eligible workloads: IPSec encryption, Hiper. Sockets™, XML, ISV, some DB 2, z/OS Global Mirror, IBM GBS Scalable Architecture for Financial Reporting © 2011 IBM Corporation

IBM z. Enterprise System B A IBM z. Enterprise 114 (z 114) C D E IBM z. Enterprise Blade. Center Extension (z. BX) IBM z. Enterprise Unified Resource Manager 31 © 2011 IBM Corporation

z 114 Sub-capacity Processor Granularity § The z 114 has 26 CP capacity levels (26 x 5 = 130) – Up to 5 CPs at any capacity level • All CPs must be the same capacity level § The one for one entitlement to purchase one z. AAP and/or one z. IIP for each CP purchased is the same for CPs of any speed. – All specialty engines run at full speed – Processor Unit Value for IFL = 100 Number of z 114 CPs Base Ratio z 10 BC 1 CP 2 CPs 3 CPs 4 CPs z 10 BC Z 01 z 10 BC Z 02 z 10 BC Z 03 z 10 BC Z 04 to z 114 1. 18 1. 16 1. 14 1. 13 5 CPs z 10 BC Z 05 1. 12 5 -way 3139 PCIs 1 -Way 2 -Way 5 -Way 4 -Way 3 -Way 1 -way (sub-capacity 26 PCIs) PCI – Processor Capacity Index 32 Cap es acit y le vel 1 -way 782 PCIs #E in ng FULL size Specialty Engine © 2011 IBM Corporation

z 114 – IBM Leadership Technology At the Core § 3. 8 GHz Superscalar Processor Chip boosts hardware price/performance – 100 new instructions – improvements for CPU intensive, Java™, and C++ applications New on-chip cache structure to help optimize data serving environment – Out-of-order execution sequence gives significant performance boost for compute intensive applications – Significant improvement for floating point workloads – § Data compression and cryptographic processors § § 33 right on the chip Over 18 percent performance improvement per core and 12% improvement in total system scalability over the z 10 BC. Compiler related enhancements help drive gains of up to 25% improvement in throughput for CPU/Numeric intensive workloads. © 2011 IBM Corporation

z 114 continues the CMOS Mainframe heritage 4000 3. 5 GHz 3. 8 GHz 3500 3000 1. 4 GHz MHz 2500 2000 625 MHz 1500 139 MHz 1000 1. 0 GHz 413 MHz 500 0 1997 1999 2002 2004 2006 2008 2011 Multiprise® Multiprise 3000 z 890 z 9 BC z 10 BC z 114 2000 § Multiprise 2000 – 1 st full-custom Mid § z 800 - Full 64 -bit z/Architecture® -range CMOS S/390 § z 890 - Superscalar CISC pipeline § Multiprise 3000 – Internal disk, IFL § z 9 BC - System level scaling introduced on midrange 34 § z 10 BC - Architectural extensions §Higher frequency CPU § z 114 – Additional Architectural extensions and new cache structure © 2011 IBM Corporation

System Comparisons System I/O Bandwidth 128 GB/Sec 72 GB/Sec 21. 6 GB/Sec 16 GB/Sec Memory 256 GB/Sec 170 64 GB 32 GB 344 474 PCI for 1 -Way 782 673 z 114 4 -Way z 10 BC 5 -Way z 9 BC Notes: 1. Capacity shown is for CPs only 2. z 9, z 10 and z 114 have additional PUs which can be used as Speciality Engines 35 Engines 5 -Way z 890 z 800 © 2011 IBM Corporation

IBM System z Business Class Configuration Comparisons (1 of 3) z 9 BC R 07 Uniprocessor Performance z/OS Capacity 470 MIPS 26 -172 MIPS Total System Memory 193 -1748 MIPS 64 GB z 10 BC E 10 z 114 M 05 z 114 M 10 673 MIPS 782 MIPS 26 -2760 MIPS 26 - 3139 MIPS 256 GB 128 GB 256 GB Configurable Engines 7 7 10 5 10 Dedicated Spares 0 0 2 Configurable CPs 1 -3 0 -4 0 -5 LPARS/LCSS 15/1 30/2 16 32 Hiper. Sockets 16 I/O Cages/Drawers 1 1 Up to 4 I/O slots per Cage/Drawers 16 28 8 8/32(2) FICON® Channels 64 112 128(3) OSA Ports (10 Gb. E/1 Gb. E) 16/32 24/48 48/96 ESCON® Channels 240 420 480 240(4) 2. 7 GB/sec 6. 0 GB/sec 16/48/0 12/48/12 6. 0 GB/sec 8. 0 GB/sec 0(5)/48/8 -16(6) 0(5)/48/16 - 32(7) STI (z 9), IFB (z 10) Bandwidth PCIe (z 114 BC) Bandwidth ICB-4/ISC-3/PSIFB Up to 3(1) z. IIP/z. AAP Maximum Qty 3 3 5 2 5 IFL Maximum Qty 6 7 10 5 10 Capacity Settings 20 53 130 130 Upgradeable 36 z 9 BC S 07 Upgrade to z 10 and z 114 Upgrade to z 114 See next chart for foot notes Upgrade From M 10 to z 196 (M 15, Air cooled only) © 2011 IBM Corporation

Notes for Configuration comparisons chart (2 of 3) (1) Up to 3 channel drawers standard, a combination of I/O drawers and PCIe I/O drawers as defined. Up to 4 I/O drawers via RPQ M 05 (2) (3) (4) (5) (6) (7) 37 M 10 I/O Drawer PCIe I/O Drawer 0 0 0 1 0 2 1 0 1 1 1 2 2 0 2 1 3 0 4 0 3 rd and 4 th I/O drawers are offered through via an RPQ 8 card slots per I/O drawer, 32 per PCIe I/O drawer FICON count is based on 2 PCIe I/O drawers or 4 I/O drawers Limit of 240 ESCON channels is consistent with Statement of Direction Limit of 0 ICB-4 links is consistent with Statements of Direction 8 ports of 12 x, 16 ports of 1 x PSIFB links available on model M 05 based on 4 HCA capabilities 16 ports of 12 x, 32 ports 1 x PSIFB links available on model M 10 based on 8 HCA capabilities © 2011 IBM Corporation

IBM System z Config Comparisons, z 114 vs. z 196 Model M 15 (3 of 3) z 114 Model M 05 z 196 Model M 15 Uniprocessor Performance 782 MIPS 1200 MIPS z/OS Capacity 26 - 3139 MIPS 240 – 13, 660 MIPS Total System Memory 120 GB 248 GB 704 GB Configurable Engines 5 10 15 Configurable CPs 0 -5 0 - 15 LPARS/LCSS 30/2 60/3 Hiper. Sockets 32 32 I/O Cages/Drawers Up to 3(1) 3/6 I/O slots per Cage/Drawers 8/32(2) 28/8 FICON Channels 128(3) 256 OSA Ports (10 Gb. E/1 Gb. E) 48/96 ESCON Channels 240(4) 240 STI (z 9), IFB (z 10) Bandwidth PCIe (z. Next BC) Bandwidth 6. 0 GB/sec 8. 0 GB/sec ICB-4/ISC-3/PSIFB 0(5)/48/8 -16(6) 0(5)/48/16 - 32(7) 0(5)/48/16 - 32 z. IIP/z. AAP Maximum Qty 2 5 7 IFL Maximum Qty 5 10 15 Capacity Settings 130 60 Upgradeable 38 z 114 Model M 10 Upgrade from M 10 to z 196 (M 15, Air cooled only) z 196 M 32, M 49, M 66, M 80 Air and Water Cooled See previous chart for foot notes © 2011 IBM Corporation

z. Enterprise 114 Models M 05 and M 10 § M/T 2818 – Model M 05 – Air cooled – Single Frame – Non-raised floor option available – 30 LPARs § M/T 2818 – Model M 10 – Air cooled – Single Frame – Non-raised floor option available – 30 LPARs § Processor Units (PUs) – New processor drawer design (1 CPC Drawer) – 7 per system • 2 SAPs standard • Up to 5 CPs • Up to 5 specialty engines • Up to 2 z. IIPs/z. AAPs • 0 spares when fully configured § Processor Units (PUs) – New processor drawer design (2 CPC Drawers) – 14 per system • 2 SAPs standard • Up to 5 CPs • Up to 10 specialty engines • Up to 5 z. IIPs/z. AAPs • 2 dedicated spares § When Model M 10 (requires the 2 nd processor drawer)? – > 5 Customer PUs – > 120 GB memory – > 4 Fanouts for additional I/O connectivity – especially PSIFB links • Depends - numbers vary for drawers, I/O features and PSIFB links 39 © 2011 IBM Corporation

z 114 M 05 Memory Features 4 GB DIMMs 8 GB DIMMs 16 GB DIMMs Feature Size 8 32 64 16 40 72 24 48 80 56 88 96 104 112 120 Physical memory upgrades are a DISRUPTIVE 40 © 2011 IBM Corporation

z 114 M 10 Memory Features DWR 1/DRW 2 4 GB/4 GB 4 GB/8 GB 8 GB/4 GB 8 GB/8 GB 4 GB/16 GB/4 GB 8 GB/16 GB/8 GB 16 GB/16 GB Feature Size Feature Size 16 64 96 152 184 216 24 72 104 32 80 112 40 88 120 248 48 56 Physical memory upgrades are a DISRUPTIVE 41 © 2011 IBM Corporation

z. Enterprise 114 I/O Connectivity Offered As Maximum # of features Maximum channels Increments per feature Purchase increments NB 16 240 channels 1 - 15 active 4 channels FICON Express 8 S NB 64 128 channels 2 channels FICON Express 8 CF* 16 64 channels FICON Express 4 CF 16 64 channels FICON Express 4 -2 C CF* 16 32 channels NB 12 48 links 4 links 1 link OSA-Express 4 S NB 48 96 ports 1 (10 Gb. E) / 2 ports 1 feature OSA-Express 3 1000 BASE-T NB 16 64 ports 1 feature OSA-Express 3 10 Gb. E, Gb. E CF* 16 64 ports 2 (10 Gb. E) / 4 ports 1 feature OSA-Express 3 -2 P CF 16 32 ports 1 feature OSA-Express 2** CF 16 32 ports 1 feature Crypto Express 3 NB 8 16 PCIe adapters 2 features** Crypto Express 3 -1 P NB 8 8 PCIE adapters 1 PCIe adapter 2 features** Features ESCON FICON ISC-3 OSA-Express Crypto * Can be carried forward or ordered on MES using RPQ 8 P 2534 ** OSA-Express 2 10 Gb. E LR is not supported as a carry forward *** Two features initially, one thereafter NB = New Build CF = Carry Forward 42 © 2011 IBM Corporation

z 196 GA 2 I/O Connectivity Offered As Maximum # of features Maximum channels Increments per feature Purchase increments NB 16 240 channels 1 - 15 active 4 channels FICON Express 8 S NB 160 320 channels 2 channels FICON Express 8 CF* 72 288 channels 4 channels FICON Express 4 CF 72 288 channels 4 channels NB 12 48 links 4 links 1 link OSA-Express 4 S NB 48 96 ports 1 (10 Gb. E) / 2 ports 1 feature OSA-Express 3 1000 BASE-T NB 24 96 ports 4 ports 1 feature OSA-Express 3 10 Gb. E, Gb. E CF* 24 96 ports 2 (10 Gb. E) / 4 ports 1 feature OSA-Express 2 CF** 24 48 ports 2 ports 1 feature NB 8 16 PCIe adapters 2 features *** Features 161 ESCON FICON ISC-3 OSA-Express Crypto Express 3 * Can be carried forward or ordered on MES with RPQ 8 P 2534 ** OSA-Express 2 10 Gb. E LR is not supported as a carry forward *** Two features initially, one thereafter NB = New Build CF = Carry Forward 43 * 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. © 2011 IBM Corporation

FICON performance on System z I/O driver benchmark I/Os per second 4 k block size Channel 100% utilized z H P F FICON Express 4 and FICON Express 4 Express 2 and FICON Express 2 ESCON I/O driver benchmark Mega. Bytes per second Full-duplex Large sequential read/write mix FICON Express 4 4 Gbps z 10 z 9 44 z 10 77% increase FICON Express 8 S FICON Express 8 z 196 z 10 z 196 z 114 z H P F FICON Express 4 4 Gbps FICON Express 8 S FICON Express 8 z 10 z H P F FICON Express 8 8 Gbps z 196 z 10 z 196 zz 114 H P F FICON Express 8 S 8 Gbps 108% increase FICON Express 8 S 8 Gbps z 196 z 114 © 2011 IBM Corporation

FCP performance on System z I/Os per second Read/writes/mix 4 k block size, channel 100% utilized FE 4 4 Gbps z 9 FE 4 4 Gbps z 10 FE 8 8 Gbps z 196 FE 8 S 8 Gbps 10% increase z 196 z 114 Mega. Bytes per second (full-duplex) Large sequential Read/write mix FE 4 4 Gbps z 10 45 FE 8 8 Gbps FE 8 S 8 Gbps 108% increase z 196 z 10 z 196 z 114 © 2011 IBM Corporation

OSA-Express 4 S 10 Gb. E performance (laboratory) Inbound Streams – 1492 Byte MTUs 80% increase OSA-E 3 Mixed Streams – 1492 Byte MTUs 40% increase OSA-E 4 S Inbound Streams – 8000 Byte MTUs OSA-E 3 OSA-E 4 S Mixed Streams – 8000 Byte MTUs 70% increase Notes: § AWM on z/OS § z/OS is doing checksum § 1 megabyte per second (MBps) is 1, 048, 576 bytes per second MBps represents payload throughput (does not count packet and frame headers) 46 OSA-E 3 OSA-E 4 S OSA-E 3 Maximum transmission units (MTUs) OSA-E 4 S © 2011 IBM Corporation

z 114 Overhead I/O Cabling Option § Top Exit cabling is designed to provide an additional option and increased flexibility to help increase air flow in a raised-floor environment – For I/O cabling only (ESCON, FICON and Ethernet). – Not used for power cables – Increases width of System by 15. 2 cm (6 inches) – Overhead cabling feature adds 43. 13 Kg (95 lbs) to the frame weight I/O Cabling Raceways 47 © 2011 IBM Corporation

z 114 Floor and Cabling Configurations options Preferred in Non-Raised Floor environments Power Cords Overhead Cable Tray System I/O Cables 1 2 3 I/O and Power Under The Floor Top Exit Power and I/O Under The Floor RF Tailgate 5 Top Exit I/O And Top Exit Power Floor Type Independent 4 Power and I/O Bottom, but Above The Floor NRF Tailgate Bottom cover Floor Independent (Raised or Non-Raised) Non-Raised Floor 48 © 2011 IBM Corporation

Bringing the benefits of hybrid computing to more clients Introducing the IBM z. Enterprise 114 (z 114) § Priced, packaged and performance for the mid-sized enterprise § $75 k entry point for z. Enterprise 114* § Extreme granularity to best fit existing and new workloads § Built to support future data center design, modernization and efficiencies § Investment protection with upgradeability from z 9 BC and z 10 BC™ and to z 196 M 15 49 *Price in USD, price will vary by country Bringing the strengths and capabilities of the IBM z. Enterprise in a package designed for mid-sized businesses © 2011 IBM Corporation

New offerings to help deliver smarter computing Designed for Data Managed in a Cloud NEW! IBM Smart Analytics Optimizer V 1. 2 (preview) § Incorporating Netezza technologies to further expand number of queries that benefit from this optimizer model NEW! Cloud and Lifecycle Management for z. Enterprise Tuned to the Task § Cloud benefits through standardization, automation and virtualization of services NEW! Tivoli Integrated Service Management for System z API Support (SOD)* § Enhanced portfolio exploiting new z. Enterprise HMC interfaces 50 * All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only. © 2011 IBM Corporation

Delivering and supporting new workloads with IBM Software for System z 51 51 Multi-Platform Development and Transaction Processing Accelerate agility with intelligent application development and management Virtualization and Optimization Consolidation to reduce cost, complexity and help align IT resources Business Process Management Agile processes and decisions to optimize business performance Cloud Computing Cloud Applications to Elevate your Business Performance Risk Management Reduces application downtime to help lower costs and improve productivity Data Warehousing Integrating and transforming data to ensure trusted information for the business © 2011 IBM Corporation

Further enhancements for System z § z/OS® V 1. 13: ► ► ► Foundation for modern batch, function to help shorten batch window, simplify batch programming, and give you more flexibility in deploying batch applications. Autonomics for improved, early error detection - helps provide early warning of certain system issues before they can impact your business Performance for new and traditional workloads § z/OS Management Facility V 1. 13: ► New software deployment and disk management tasks, and many enhancements that help create a more productive and integrated z/OS experience § ISAS 9600 – for z 114 ► 52 Extending the benefit of advanced insight to clients off all sizes with An entry-level, costeffective Business Intelligence and Analytics environment © 2011 IBM Corporation

Trademarks The following are trademarks of the International Business Machines Corporation in the United States and/or other countries. AIX* Blade. Center* CICS* Data. Power* DB 2* DFSMS DS 8000* ESCON* FICON* GDPS* Hiper. Sockets IBM* IBM e. Server IBM (logo)* IMS Parallel Sysplex* POWER* POWER 7* PR/SM System x* System z 9* System z 10 Business Class VSE/ESA Web. Sphere* XIV* z 9* z 10 BC z 10 EC z. Enterprise z/OS* z. Series* z/VM* z/VSE* * Registered trademarks of IBM Corporation The following are trademarks or registered trademarks of other companies. Adobe, the Adobe logo, Post. Script, and the Post. Script logo are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States, and/or other countries. Cell Broadband Engine is a trademark of Sony Computer Entertainment, Inc. in the United States, other countries, or both and is used under license there from. Java and all Java-based trademarks are trademarks of Sun Microsystems, Inc. in the United States, other countries, or both. Microsoft, Windows NT, and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries, or both. Infini. Band is a trademark and service mark of the Infini. Band Trade Association. Intel, Intel logo, Intel Inside logo, Intel Centrino logo, Celeron, Intel Xeon, Intel Speed. Step, Itanium, and Pentium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. UNIX is a registered trademark of The Open Group in the United States and other countries. Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both. ITIL is a registered trademark, and a registered community trademark of the Office of Government Commerce, and is registered in the U. S. Patent and Trademark Office. IT Infrastructure Library is a registered trademark of the Central Computer and Telecommunications Agency, which is now part of the Office of Government Commerce. * 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. 53 © 2011 IBM Corporation