Linux on IBM z Systems and the new

Contents Market insight driving change What’s new with Linux on the new IBM z 14™ (z 14) Pervasive encryption enablement, innovation for analytics & Java and improved IT economics The strengths of Linux on z Systems (IBM Z) Operational efficiency incl. co-location advantages, qualities of service (RAS), security & pervasive encryption and economic benefits Solutions with Linux on z Systems IBM Z / ZSP 04347 -USEN-13 / July 17, 2017 / © 2017 IBM Corporation 2

17 -year Journey of Innovation and Technology 2017: § IBM z 14 § z/VM Subcapacity 2016: § KVM 1. 1. 2 § IBM Wave 1. 2 SP 6 § z/VM 6. 4 2015: § KVM for IBM z § IBM Wave upd. § IBM z. Aware for Linux § IBM Linux. ONE™ 2014: • Docker Enterprise Edition • Blockchain • DBaa. S reference • Open source architecture ecosystem ext. • Spectrum Scale 4. 2. 3. 1 § IBM Wave • DB 2 BLU § Open. Stack • GDPS® Virtual Appliance First release 2001: 2000: Red Hat Linux SUSE Linux 1999: Linux on S/390® 2001: 2000: Hiper. Sockets™ Integrated Facility for Linux (IFL) 1999: IBM 2000: Linux Tech DB 2®, Center Web. Sphere® 2002: major ISVs: SAP, Oracle 9 i IBM Z / ZSP 04347 -USEN-13 / July 17, 2017 / © 2017 IBM Corporation 3 • Financial Transaction Mgr • Open source ecosystem § RHEL 7. 3 § KVM support in 2009: § SLES 12 SP 2 SUSE and ™ (GPFS ™) • Spectrum Scale § z/VM v 6 § Ubuntu 16. 04 Ubuntu • Oracle 12 c § Enterprise Linux Server § RHEL § SLES § RHEL 7. 2 2007: § Ubuntu 17. 04 § SLES 12 SP 1 IBM Big Green -------------2013: Consolidation 3900 to 30 SMT >3000 Applications SIMD in kernel 10 Gb PCI / Ro. CE 2006: 1000 Appl. , 300 ISVs Crypto enhance. 3

The pace of digital transformation continues to accelerate Creating extraordinary opportunities Digital adoption is creating new forces Digital economy depends on trust Cognitive, Io. T & Blockchain all delivered through the cloud Relationships are being redefined across the value chain Trust is the foundation of new digital relationships IBM Z / ZSP 04695 / July 17, 2017 / © 2017 IBM Corporation 4

IBM z 14 – Creating leadership for digital trust pervasive encryption for piece of § Designed with mind that data and privacy is always protected § Designed with improvements in speed, efficiency and access serve up data to build services and new offerings and to perform analytics and insight on the data because this is where it resides improvements to both open and industry standard § Designed to be to bridge the skills gap and make the infrastructure easier to manage IBM Z / ZSP 04347 -USEN-13 / July 17, 2017 / © 2017 IBM Corporation 5

Introducing the IBM z 14 § Processor Units (PUs) – 41 (49 for M 05) PU cores per CPC drawer ~1832 MIPS/core – 33, 69, 105, 141 or 170 PU cores available for characterization – Up to 23 SAPs per system, standard plus SAPs are SMT – 2 spares designated per system – 85 LPARs – Sub-capacity available for up to 33 CPs – 3 sub-capacity points – Enhanced performance for compression and crypto coprocessor § Memory – RAIM Memory design – System Min of 256 GB - up to 8 TB / drawer - 192 GB Fixed HSA – Up to 32 TB for System and up to 16 TB per LPAR (OS dependent) ─ IBM Virtual Flash Memory (replaces Flash Express) § I/O IBM z 14 Machine Type: 3906 Models: M 01, M 02, M 03, M 04, M 05 Model Customer PUs Max Memory M 05 170 32 TB M 04 141 32 TB M 03 105 24 TB M 02 69 16 TB M 01 33 8 TB 1 – New PCIe Gen 3 IBM z. Hyper. Link™ technology – Last high end server to support Infini. Band® Coupling Features – 16 GBps PCIe Gen 3 I/O Interconnects IBM Z / ZSP 04693 -USEN-00 / July 17, 2017 / © 2017 IBM Corporation 1 Provides the minimum physical memory required to hold base purchase memory plus 192 GB HSA 6

Performance of z 14 allows pervasive encryption § Encryption with no impact to SLAs, delivered via the improved on- processor cryptography (CPACF) and the new Crypto Express 6 S ‒ All encryption functions within the Linux kernel and the open. SSL, open. Cryptoki and GSKIT libraries* will benefit and transparently deliver the performance to the applications and middleware § Enhanced security with “protected key” encryption* for data at-rest § Create true unique cryptographic data using the new true random number generator* with CPACF * IBM Z / ZSP 04347 -USEN-13 / July 17, 2017 / © 2017 IBM Corporation 7 x faster encryption of data in flight and at rest with CPACF 2 x performance boost on Crypto Express 6 S Secure Java workload performance by up to 30% Secure the cloud by encrypting APIs 2 -3 x faster than x 86 is working with the Linux distribution partners to get the functionality included in Linux for z Systems (IBM Z) 7

Innovation for analytics and Java with z 14 for Linux § A comprehensive portfolio of cognitive and analytics solutions Java on IBM Z performs § More memory enables more in-memory workloads and in-line analytics for delivering richer transactional experiences § Performance, networking and efficiencies running Linux side-by-side with z/OS Scale out to 1. 5 x faster 2 million than on x 86 Docker containers on single z 14 § Massive scale up of JVMs with higher capacity IFLs, pause-less garbage collection* and 50+ new instructions* co-designed and exploited by Java® * IBM Z / ZSP 04347 -USEN-13 / July 17, 2017 / © 2017 IBM Corporation Run 1, 344 concurrent databases per day in a single z 14 is working with the Linux distribution partners to get the functionality included in Linux for z Systems (IBM Z) 8

Improved IT economics with z 14 for Linux § Next generation SMT for improved virtualization performance § 170 IFLs provide efficiency at scale and improve price/performance SMT improves performance § Redesigned cache architecture up to 25% vs non-SMT § More memory to support large VM consolidations, provide a higher ceiling for vertical scale and to support data-in-memory applications § FICON Express 16 S+ gives boost to help absorb large application and transaction spikes driven by unpredictable analytic / mobile workloads § IBM Dynamic Partition Manager with simplified hardware configuration and provisioning tools enables greater time to value 3 X more 1. 5 x more on chip cache 1 memory with up to 32 TB 1 Up to 3 X increase in speed using FICON Express 16 S+2 1 Compared to z 13 The actual throughput or performance 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. 2 IBM Z / ZSP 04347 -USEN-13 / July 17, 2017 / © 2017 IBM Corporation 9

Designed for Data Serving I/O options that protect, access, share Pervasive Encryption New Crypto Express 6 S Enhanced Speed of CPACF New TKE 9. 0 New Firmware tamper detection on HMC New Payment Card Industry (PCI) HSM IBM Z / ZSP 04693 -USEN-00 / July 17, 2017 / © 2017 IBM Corporation Manage and Access Data Accessing the Web New FICON Express 16 S+ New 32 TB RAIM memory New 10 Gb. E Ro. CE Express 2 New OSAExpress 6 S Hiper. Socket 10

Designed for competitive advantage The Strengths Operational efficiency incl. co-location advantages Simplicity, high performance and same arrangements for administration Qualities of service (RAS) Security Designed to avoid failures and near-continuous availability and DR solutions Pervasive encryption enablement, RACF for z/VM and EAL 5+ certification IBM Z / ZSP 04347 -USEN-13 / July 17, 2017 / © 2017 IBM Corporation incl. pervasive encryption Economic benefits Life-cycle management cost can be considerably less vs x 86 or public clouds 11

Solutions on Linux on IBM z Systems (IBM Z) Linux on z Systems can run all kind of solutions. The comprehensive ecosystem is based on solutions from IBM, ISVs and open source. Best fit solutions are found in the areas of: § Cognitive and analytics solutions § Database solutions § Data management solutions Cognitive and solutions on IBM Z provides a modern, costcompetitive infrastructure with offerings ready for analytics and big data initiatives across all of your data sources § Integration and messaging solutions Integrated systems and applications deliver a differentiated customer experience § Content management solutions Enterprise Content Management puts business content to work and allows organizations to realize new value § Dev. Ops and application development Virtualized, integrated solutions for application development leverage IBM Z servers and Linux for agile and innovative next gen apps IBM Z / ZSP 04347 -USEN-13 / July 17, 2017 / © 2017 IBM Corporation § Blockchain solution Takes advantage of the cryptography, security and reliability of IBM Z § Mobile and Web serving solutions Sync existing IBM Z apps and queries via API connectivity to next gen apps, mobile and cloud environments § Security and availability solutions A full range of security features - z 14 enables pervasive encryption and applications are available from IBM, vendors and open source § Open software solutions The growing ecosystem of open source software on IBM Z helps on the innovation and quality of service of next gen apps § Vendor software solutions IBM Business Partners and independent software vendors (ISV) offer a broad range of software and solutions, incl. SAP and Oracle 12

Tested Platforms Jul 21, 2017 Note: The information is regularly updated, see actual information at Tested Platforms (*) IBM is working with the Linux partner to support selected levels of the distribution on z 14. RHEL 6 support is planned to be based on a service update of RHEL 6. 9 SLES 11 support is planned to be based on a service update of SLES 11 SP 4 Ubuntu 16. 04 support is planned to be based on a service update of Ubuntu 16. 04. 01 Note: the required patch levels and additional details will be provided soon. View webpage for additional footnotes. IBM Z / ZSP 04347 -USEN-12 / July 17, 2017 / © 2017 IBM Corporation 13

Integrated System Design for z 14 I/O and coprocessors bring RAS, cost savings and added compute power to workloads Up to 170 cores on a CPC Up to 23 cores for offload system processing Plus up to 320 POWER® cores: I/O and Coprocessors Plus up to 322 RAS cores 23 SAPs 1 IFP New on z 14 – SAPs now SMT • Share up to 170 processors with up to 85 LPARS • Configure the processors as 320 I/O RAS cores 2 Spares CPs, IFLs, z. IIPs, or ICFs IBM Z / ZSP 04693 -USEN-00 / July 17, 2017 / © 2017 IBM Corporation 14

Linux on z Systems (IBM Z) Together it benefits from IBM Z Blockchain Security Business integration Data Mgmt, DBaa. S Container Cognitive & Machine learning Spectrum Scale GDPS IBM Z / ZSP 04347 -USEN-13 / July 17, 2017 / © 2017 IBM Corporation ISVs Dev. Ops Mobile Web serving IT Mgmt 15

Trademarks The following are trademarks of the International Business Machines Corporation in the United States and/or other countries. DB 2* GDPS* GPFS* Hiper. Sockets IBM* Ibm. com IBM (logo)* IBM Z IMS Linux. ONE PR/SM RACF* S/390* Spectrum Scale* Web. Sphere* z 13 s z 14 z/OS* z Systems* z/VSE* z/VM* * Registered trademarks of IBM Corporation 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. IT Infrastructure Library is a Registered Trade Mark of AXELOS Limited. ITIL is a Registered Trade Mark of AXELOS Limited. Linear Tape-Open, LTO, the LTO Logo, Ultrium, and the Ultrium logo are trademarks of HP, IBM Corp. and Quantum in the U. S. and other countries. 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. Linux is a registered trademark of Linus Torvalds 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. Open. Stack is a trademark of Open. Stack LLC. The Open. Stack trademark policy is available on the Open. Stack website. Java and all Java-based trademarks and logos are trademarks or registered trademarks of Oracle and/or its affiliates. Cell Broadband Engine is a trademark of Sony Computer Entertainment, Inc. in the United States, other countries, or both and is used under license therefrom. UNIX is a registered trademark of The Open Group in the United States and other countries. VMware, the VMware logo, VMware Cloud Foundation Service, VMware v. Center Server, and VMware v. Sphere are registered trademarks or trademarks of VMware, Inc. or its subsidiaries in the United States and/or other jurisdictions. Other product and service names might be trademarks of IBM or other 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. This information provides only general descriptions of the types and portions of workloads that are eligible for execution on Specialty Engines (e. g, z. IIPs, z. AAPs, and IFLs) ("SEs"). IBM authorizes customers to use IBM SE only to execute the processing of Eligible Workloads of specific Programs expressly authorized by IBM as specified in the “Authorized Use Table for IBM Machines” provided at www. ibm. com/systems/support/machine_warranties/machine_code/aut. html (“AUT”). No other workload processing is authorized for execution on an SE. IBM offers SE at a lower price than General Processors/Central Processors because customers are authorized to use SEs only to process certain types and/or amounts of workloads as specified by IBM in the AUT. IBM Z / ZSP 04347 -USEN-13 / July 17, 2017 / © 2017 IBM Corporation 16

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Operational efficiency § Simplicity with up to thousands Linux workloads in parallel on a single IBM Z server – ’Data center-in-a-box’ § High administrator productivity based on: – Dynamic resource/workload management – Non-disruptive horizontally and vertically growth inside IBM Z – High degree of resource sharing resulting in high resource utilization “As we move more systems to our mainframe, we continue to simplify and streamline our IT landscape and reduce support calls, freeing up IT teams to focus on more innovative work. ” —Toby C. Wolf, Vice President, Group Manager— Mainframe Operations Services, ZB, National Association – On demand growth, simply adding cores, I/O adapters, memory, devices and network – Intuitive tooling and open APIs – Less efforts for less IT equipment IBM Z / ZSP 04347 -USEN-13 / July 17, 2017 / © 2017 IBM Corporation 18

Co-location advantages § High performant internal communication – High throughput based on efficient data serving with minimal latency – Internal communication means less network traffic handling and reduced risk “Physically, we now have just one SWIFT message handling system, but logically, it is divided into distinct virtual environments. And by running the solution within IFLs, connected with the data within z/OS, we can take advantage of highly costeffective licensing options. ” § Analytics on real-time data – Processing next-to the data —Andreas Goerlich, Senior Operations Manager SWIFT, s IT Solutions Austria § High operational efficiency with centralized management – Same arrangements for administration, security, backup and disaster recovery, etc. – Optimized resource sharing and utilization § Co-location of ‘systems of record’ and ‘systems of engagement’ provides performance and efficiency benefits* IBM Z / ZSP 04347 -USEN-13 / July 17, 2017 / © 2017 IBM Corporation * “Ladies and Gentlemen — Start Your Linux on z Engines!”, © 20 19

Qualities of service (RAS) § IBM Z allows for 99. 999% uptime and a mean time to failure that is around decades – Up to 0% unplanned downtime due to hardware failures – Component reliability and redundancy, spare cores for failover – IBM Z provides error prevention, detection, correction and recovery – Redundant array of independent memory § All-encompassing near-continuous availability and disaster recovery solutions available – IBM GDPS, IBM z. Aware function, IBM Spectrum Scale § Priority workloads do not degrade on IBM Z when lower priority workloads are added 1 IBM Z / ZSP 04347 -USEN-13 / July 17, 2017 / © 2017 IBM Corporation “Our clients require round-theclock availability to provide reliable services to their private and corporate customers. Minimizing downtime in an event of disaster is crucial to avoid disruptions—and losses—in today’s fast-paced environment. ” —Bernd Bohne, Department Head, Central Systems Technology, Sparda-Datenverarbeitung e. G 1 “Understanding Mainframe Economics”, © 2014, IBM Re 20

Security incl. pervasive encryption “Hosting the solution on IBM Z allows us to reap the benefits of the exceptional levels of security offered by the mainframe. Utilizing tools such as RACF, we can strictly control access to data, recognizing and logging any unauthorized attempts to gain access to our systems. ” § EAL 5+ hardware security certification, IBM Z is world’s only commercial servers with EAL 5+ § Hardware accelerated encryption on every core, in addition to Crypto Express 6 S card – Pervasive encryption enablement with z 14 – z/VM v 6. 4 provides encryption support to enable the exploitation by Linux guests § Linux expects enhanced security with ‘protected key’ encryption* for data at-rest —Andreas Goerlich, Senior Operations Manager SWIFT, s IT Solutions Austria § RACF® for z/VM provides security systems, incl. access control and auditing functionality § Improved security with smaller network infrastructure for fewer points of attack * IBM Z / ZSP 04347 -USEN-13 / July 17, 2017 / © 2017 IBM Corporation IBM is working with the Linux distribution partners to get the functionality included in distributions for 21

Economic benefits § Life-cycle management costs on IBM Z can be considerably less – Centralized operation – Proofed security and business continuity solutions – High workload density/server capacity allows for low cost per workload – Non-disruptive resource enhancements – Fewer software acquisition and licenses – Low floor space and energy requirements “Building a virtualized server farm with Linux on IBM z 13 s™ provides us with a scalable and cost-effective solution for the long term. Indeed, we will achieve a much lower total cost of ownership than ever before. ” —Geir Erland Fladby, System Administrator, Vitec Auto. Data – Less IT equipment means savings in maintenance § 47% lower overall cost of operations over five years than distributed environments* IBM Z / ZSP 04347 -USEN-13 / July 17, 2017 / © 2017 IBM Corporation * “The Business Value of the Connected Mainframe for Digital Transformation”, 22