Welcome to the waitless world Power Systems 2015

Welcome to the waitless world Power Systems 2015 4 Q Announce overview Surányi József Power Systems Technical Sales jsuranyi@hu. ibm. com

Welcome to the waitless world New LC Systems © 2015 IBM Corporation 2

Welcome to the waitless world Expanding to serve a broader Linux market Scale-Out Scale-up Offering OS capability Positioning in the Linux portfolio E 880 E 870 E 850 Equally run AIX, IBM i and Linux with IFLs Enterprise systems Leadership Performance and Reliability Utilization Guarantee (Power. VM – 70%/80%) Flexible, dynamic Capacity on Demand & Enterprise Pools S 824 S 822 S 814 Equally Run AIX, IBM i and Linux Scale out Systems Utilization Guarantee (Power. VM – 65%) High performance, availability and resiliency L line S 824 L S 822 L S 812 L LC line S 812 LC S 822 LC © 2015 IBM Corporation Linux Only Scale out Linux Systems Price/Performance Leadership vs. X 86 Power. VM, KVM Linux Only Cluster-optimized Linux Systems Lowest cost Power System KVM 3

POWER S 822 LC( 8335 -GCA ) Welcome to the waitless world What’s new / key features • 2 -socket 2 U form with 16 -core 3. 32 GHz or 20–core 2. 92 GHz POWER 8 processor configurations. • Memory capacity form 32 GB to 1 TB. All memory will be industry standard DDR 3 technology. • 5 PCIe Gen 3 slots, four of them will be CAPI enabled. • OPAL Baremetal or Power. KVM • OS support : Ubuntu or RHEL LE Customer benefits • As expansion of linux portfolio, S 822 LC is a compute rich design delivering superior throughput and performance for high value Linux workloads such as LAMP, BDA, or industry applications • Low acquisition cost through system optimization (industry standard memory, limited configurations, limited I/O and expansion, industry standard warranty) • Application performance gains and higher application throughput (CPU performance, multithreading for throughput ) • The S 822 LC server is co-designed by Open. POWER Foundation members IBM and Wistron Corporation © 2015 IBM Corporation Target Customers: For customer • That are Managed Service Providers (MSPs/CSPs) • With compute heavy Linux workloads that need improved performance and throughput compared to existing x 86 servers • That need the low cost and choice of an open source management stack • With Linux applications that have resiliency capabilities for system failover on critical workloads Announce: GA: 10/05/2015 10/30/2015 Red. Hat – Nov 20 4

Power System S 822 LC Commercial Computing • Processor – 2 x 8 -core 3. 32 GHz or – 2 x 10 -core 2. 92 GHz • Memory Welcome to the waitless world • O/S Capable – RHEL 7 LE, – Ubuntu 14. 04 • Hypervisor Capable – Total 32 DDR 3 DIMM slots ( 16/per socket) – OPAL Baremetal or Power. KVM – 4, 8, 16, 32 GB DIMM @ 1333 MHz • Power Supply offering 32 GB to 1 TB capacity – N+1 redundant hot swap, concurrent maintenance cooling – 230 GB/s bandwidth max – 2 x 200 VAC 1300 W bulk Power Supply • Storage – Power redundant enable – 2 x. SFF 1 TB 7200 RPM SATA HDD or • Native I/O 480 GB/960 GB SSD – 1 front USB 2. 0, 1 rear USB 3. 0, VGA port • PCIe Gen 3 Slots – System Management 1 GE (1 rear) (IPMI 2. 0) – 1 x. PCIe x 8 G 3 LP slot, CAPI enabled • Warranty – 1 x. PCIe x 16 G 3 LP slot, CAPI enabled – 3 years 9 x 5 – 1 x. PCIe x 8 G 3 LP slot – 100% CRU – 2 x. PCIe x 16 G 3 FHHL slot, supports optional K 80 GPU (cap at 225 W) © 2015 IBM Corporation 5

POWER S 822 LC( 8335 -GTA ) Welcome to the waitless world What’s new / key features • 2 -socket 2 U form with 16 -core 3. 62 GHz or 20–core 3. 25 GHz POWER 8 processor configurations. • Memory capacity form 128 GB to 1 TB. All memory will be industry standard DDR 3 technology. • 3 PCIe Gen 3 slots, two of them will be CAPI enabled. • Bundle two NVIDIA K 80 GPU (NVIDIA CUDA 7. 5 is required for the GPU) • OPAL Baremetal • OS support : Ubuntu or RHEL LE Customer benefits • The quickest time to results (high performance) • Application performance gains and higher application throughput (CPU performance, multithreading for throughput) • Solutions built to industry standards and incorporating Open. POWER Foundation community innovation • Modular design to scale from single racks to hundreds of racks and optimized for simplicity in ordering • A strong innovation roadmap for GPUs © 2015 IBM Corporation Target Industries: • Oil and Gas – upstream (seismic processing, reservoir simulation) • Financial Services – high speed trading, risk analysis • Government Labs – defense, intelligence, energy, general research (materials, chemistry, astrophysics), high energy physics – CORAL • Life Sciences – limited value from GPUs – genomics, transitional medicine Announce: GA: 10/05/2015 10/30/2015 Red. Hat – Nov 20 6

Welcome to the waitless world Power System S 822 LC High Performance Computing • Processor – 2 x 8 -core 3. 62 GHz or – 2 x 10 -core 3. 25 GHz • Memory –Total 32 DDR 3 DIMM slots ( 16/per socket) – 4, 8, 16, 32, GB DIMM @ 1333 MHz –-> 128 GB/256 GB/512 GB/ 1 TB capacity – 230 GB/s bandwidth max • Storage – 2 x. SFF 1 TB 7200 RPM SATA HDD or 480 GB/960 GB SSD • PCIe Gen 3 Slots • O/S Capable – RHEL 7 LE –Ubuntu 14. 04 • Hypervisor Capable – OPAL Baremetal • RAS – - N+1 redundant hot swap, concurrent maintenance cooling – - 2 x 200 VAC 1300 W bulk Power Supply – - Non redundant • Native I/O – 1 front USB 2. 0, 1 rear USB 3. 0, VGA port – 1 x. PCIe x 8 G 3 LP slot, CAPI enabled –System Management 1 GE (1 rear) (IPMI 2. 0) – 1 x. PCIe x 16 G 3 LP slot, CAPI enabled l Warranty – 1 x. PCIe x 8 G 3 LP slot – 3 years 9 x 5 – 2 x. PCIe x 16 G 3 FHHL slot with NVIDIA K 80 GPU 300 W – 100% CRU © 2015 IBM Corporation 7

Welcome to the waitless world S 822 LC Pre-Defined Configuration offerings • Eligible Business Partners (preferred), Digital Market and IBM direct sales • Config in dark grey (3 columns from right) are eligible through Digital Market ( web ) • Memory, Disks, I/O adapters/etc. through MES orders after initial orders S 822 LC 8335 GCA identify FC Config 20 C 256 GB #EHL 1 #EHL 2 #EHL 3 #EHL 4 2*8 C 2*10 C Processors 3. 32 GHz(#EP 00) 2. 92 GHz(#EP 01) 2*EM 52(64 GB)= 4*EM 52(64 GB)= Memory None 128 GB 256 GB 2*1 TB SATA 2*1 TB Disks None (#ELD 0) SATA(#ELD 0) RAID controller None No No 1*4 -port 1*2 -port Ethernet None 1 Gb(#5260) 10 Gb(#EN 0 T) Fibre Channel None No No Power Supply 2*#EB 2 V Power Cord 2*#Varies Rail Kit 1*#EJTY #EC 40 OPAL Power. KVM 3. 1 or Hypervisor #EC 16 OPAL Bare #EC 16 OPAL metal Bare metal Software Preload None #5000 option RHEL, Ubuntu or OS customer choice © 2015 IBM Corporation Config 16 C Config 20 C Config 16 C 128 GB Config 20 C 1 TB #EHL 5 2*10 C 2. 92 GHz(#EP 01) 8*EM 53(128 GB)= 1 TB 2*1 TB SATA(#ELD 0) No 1*2 -port 10 Gb(#EN 0 T) 1*2 -port (#EL 43) 2*#EB 2 V 2*#Varies 1*#EJTY #EC 40 OPAL Power. KVM 3. 1 or #EC 16 OPAL Bare metal #5000 option RHEL, Ubuntu or customer choice No predefined configs available for the S 822 LC high performance computing, it will go through the traditional way of ordering.

POWER S 812 LC( 8348 -21 C ) Welcome to the waitless world What’s new / key features • 2 U form factor with single socket , 8 -core 3. 32 GHz or 10–core 2. 92 GHz POWER 8 configurations. • Memory capacity of 1 TB. All memory will be industry standard DDR 3 technology. Offered at 4 GB, 8 GB, 16 GB and 32 GB DIMM sizes. • 4 PCIe Gen 3 slots, two of them will be CAPI enabled. • Up to 14 disk drives ( either 3. 5” LFF 1 TB, 6 TB or 8 TB SATA drive or 1. 8” SATA 960 GB SSD) • OPAL Baremetal or Power. KVM with OS support : Ubuntu or RHEL Customer benefits • As expansion of linux portfolio, S 812 LC is a storage rich design that provides superior throughput and performance for high value Linux workloads especially in Hadoop as well as LAMP, BDA, or industry applications. • Low acquisition cost through system optimization (industry standard memory, pre-defined configurations, industry standard warranty) • Application performance gains and higher application throughput (CPU performance, multithreading for throughput, better I/O with CAPI) • Design optimized for data cluster deployments leveraging Open. POWER member Tyan. This design prototype been used in Softlayer. © 2015 IBM Corporation Target Customers: For customer • Managed Service Providers (MSPs/CSPs) • With Linux workloads that need improved performance and throughput compared to existing x 86 servers • That need the low cost and choice of an open source management stack • With Linux applications that have resiliency capabilities for system failover on critical workloads Announce: GA: 10/05/2015 10/30/2015 9 Red. Hat , 14 drive, HW RAID - Dec 4

Power System S 812 LC • Processor – 1 x 8 -core 3. 32 GHz or – 1 x 10 -core 2. 92 GHz • Memory –Total 32 DDR 3 DIMM slots – 4, 8, 16, 32 GB DIMM @ 1333 MHz Minimum 128 GB* up to 1 TB capacity – 115 GB/s bandwidth max • Storage – 2 x LFF internal rear access and 12 x LFF drives bay -> 1 TB, 6 TB, 8 TB 7200 RPM SATA HDD Hot swap drives or 960 GB SATA SSD • PCIe Gen 3 Slots - 1 x. PCIe x 8 G 3 LP Full length slot, CAPI enabled - 1 x. PCIe x 16 G 3 LP Full length slot , CAPI enabled - 1 x. PCIe x 8 G 3 LP Full length slot - 1 x. PCIe x 8 G 3 LP Half Length slot © 2015 IBM Corporation *with exception of Predefine config Welcome to the waitless world • O/S Capable – RHEL 7 LE, – Ubuntu 14. 04 • Hypervisor Capable – OPAL baremetal , Power. KVM • Power Supply - (1+1) 100~240 VAC Redundant Hot swap PS • Native I/O – 3 USB 3. 0 (1 front, 2 rear) – VGA port (Keyboard-Mouse support via USB) – 1 x rear USB 1. 1 used for manual BIOS recoveries • Management Intelligent Platform Management Interface (IPMI 2. 0) • Warranty 3 years 9 x 5 100% CRU 10

Welcome to the waitless world S 812 LC Pre-Defined Configuration offerings • Eligible Business Partners (preferred), Digital Market and IBM direct sales • Config in dark grey (three columns from the right) are eligible through Digital Market ( web ) • Memory, Disks, I/O adapters/etc. through MES orders after initial orders © 2015 IBM Corporation

Power System S 812 LC pricing comparison ($US)Welcome to the waitless world S 812 LC pricing is anchored to competition on better price/performance Server list price -3 -year warranty $11, 496 $13, 730 $20, 615 $2, 968 $2, 986 Total List Price $14, 464 $16, 698 $23, 583 TCA Street Price* $11, 571 $14, 045 $18, 866 475 642 708 $24. 36 $21. 88 $26. 65 Linux OS list price SPECint_Rate Price/Perf Server model HP Proliant DL 180 IBM Power S 812 LC IBM Power S 812 L Processor / cores Haswell 10 -core 2. 6 GHz processors 10 -core 2. 9 GHz POWER 8 10 -core 3. 4 GHz POWER 8 Configuration 256 GB memory, 2 x 1 TB HDD *IBM SS 21 LC : HW 15% off, SW 20% off © 2015 IBM Corporation HP, IBM S 812 L : HW and SW 20% off Same memory, HDD, Same memory, HDD This document is for IBM and IBM Business Partner use only. It is not intended for client distribution or use with clients 12

Welcome to the waitless world Power S 812 LC – Designed for Data: Act Faster and Make Better Decisions Optimized price-performance for the unique needs of Spark S 812 LC delivers optimized Spark price-performance based on 10 Spark. Bench benchmarks – 94% more Spark workloads in the same rack space versus Intel Xeon E 5 -2690 v 3 systems Relative Performance 2. 5 • 1 1 0. 5 POWER 8 x 86 IBM S 812 LC 10 c/80 t HP DL 380 E 5 -2690 v 3 24 c/48 t 2. 5 Relative Performance per $ o 2. 3 X BETTER performance per dollar spent 1. 94 1. 5 0 o 1. 94 X BETTER performance per system (10 core S 812 LC vs 24 core DL 380) – Complete the same Spark workloads for less than ½ the cost of Intel Xeon E 5 -2690 v 3 systems 2 All results are based on IBM Internal Testing of 10 Spark. Bench benchmarks consisting of SQL RDD Relation, Twitter, Pageview Streaming, Page. Rank, Logistic Regression, SVD++, Triangle. Count, SVM, MF, SQL Hive • IBM Power System S 812 LC 10 cores / 80 threads, POWER 8; 2. 9 GHz, 256 GB memory, Ubuntu 15. 04, Spark 1. 4, Open. JDK 1. 8 • Intel Xeon HP DL 380; 24 cores / 48 threads, E 5 -2690 v 3; 2. 3 GHz , 256 GB memory. Ubuntu 15. 04, Spark 1. 4, Open. JDK 1. 8 © 2015 IBM Corporation • Pricing is based on list prices of HP DL 380 and estimated prices of IBM Power S 82 LC 2 2. 3 1. 5 1 1 0. 5 0 POWER 8 x 86 IBM S 812 LC 10 c/80 t HP DL 380 E 5 -2690 v 3 24 c/48 t

Welcome to the waitless world AIX 7. 2 © 2015 IBM Corporation 14

Welcome to the waitless world AIX Release Life Cycle View 2013 2014 2015 2016 2017 2018 AIX Next GA 4 Q 2019 2020 TL 1 TL 0 AIX 7. 2 GA 12/2015 TL 1 TL 0 P 8 Entry SP SP AIX 7. 1 GA 09/2010 TL 3 AIX 6. 1 GA 11/2007 TL 9 TL 2 2021 2022 2023 TL 2 TL 3 TL 4 TL 5 EOS 4 Q 27 P 8 High End SP P 8 Midrange TL 4 TL 5 EOM 4/16 EOS 4/17 EOM 4/2021 EOS 4/22 EOL 4/20 Marketed and serviced Fee-based service extension Technology Level (TL) Serviced only Web support only Last TL EOL 4/25 IBM Confidential SP Service Pack New AIX level ships every four years New Technology Levels (TL) initially ship yearly for new AIX releases, then transition to a TL every two years © 2015 IBM Corporation 2024

Welcome to the waitless world AIX 7. 2 Key message – AIX continues the path of innovation on a robust roadmap. Key focus areas for this release are reduced planned downtime, workload optimization with Flash technology, and improvements in performance, reliability and security. What’s new / key features • New!! Live Update for Interim Fixes • New!! Sever based Flash caching • New!! 40 GB Ro. CE for Oracle RAC performance • New!! v. NIC Adapters used for SRIOV adapters We want to listen to input and adoption challenges directly from you • Let us know your client’s needs or concerns so we can partner with you in being more agile Offering Manager Contact: Vandana Kumar vkumar@us. ibm. com © 2015 IBM Corporation

Welcome to the waitless world IBM i © 2015 IBM Corporation 17

Welcome to the waitless world IBM i Roadmap 2008 2009 6. 1 2010 7. 1 6. 1. 1 2011 2012 2013 ……… 2014 2015 … … 7. 2 i next 7. 1 TRs IBM i 7. 1 TR 11 & IBM i 7. 2 TR 3 ** All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. © 2015 IBM Corporation i next+1 … … …

Power S 822 & IBM i Welcome to the waitless world IBM i 7. 2 TR 3 or IBM i 7. 1 TR 11 Special terms/conditions • • Only P 10 software tier (P 20 used on 2 -socket S 824) S 822 with or without Pure. Power Maximum of 2 cores per partition -- multiple partitions per server supported All IBM i I/O virtualized through VIOS. No non-VIOS I/O. s tart t s por ct p u s O nfig not 5 o c ev, No 10 • • • No Async/Bisync PCIe adapters (can use IBM i 7. 2 with OEM LAN-attached box for Async including Fax/400) No Crypto cards If using disk/SSD in system unit or EXP 24 S I/O drawer for IBM i it must use 4 k byte sectors, not 5 xx byte sectors • CBU feature #0444 not announced Oct 2015 Plus normal 2 U limitations of smaller physical server vs 4 U server -- smaller memory, fewer PCIe slots, fewer PCIe I/O drawers, subset of PCIe I/O card as full-high cards won’t fit including any PCIe SAS adapters with write cache. Minimum code levels required: IBM i 7. 2 TR 3 or IBM i 7. 1 TR 11, VIOS 2. 2. 3. 52, FW 840, if using HMC then HMC 840 © 2015 IBM Corporation 19

Welcome to the waitless world Business Solutions Made Easy: IBM i 7. 2 TR 3 Headliners: Analytics & DB 2 • Web. Query Analytics • Enhancements and Performance Improvements • Access Client Solutions – Performance Centre & SQL Enhancements Security & Social • Latest version of Guardium Mobile & Solution Enablement • Remove the 80 column restriction for RPG • PHP toolkit 2. 0 • New IBM i SQL Services improve systems management and application development • GNU Compiler Collection © 2015 IBM Corporation Availability & Virtualization • BRMS modernizes automatic storage tiering Hardware Enablement • Support S 822 and Pure. Power • Multipath Support for Tape • Easier transition to different media types, DUPOPT of IPL-capable media • LTO 7 tape technology support • HDD RAID array start time reduction • VLAN tag support for network boot and install • Support Hyper. Swap function of the IBM SAN Volume Controller and Storwize • Support for IBM i virtualization configurations with Little Endian Linux client partitions

Welcome to the waitless world Virtualization © 2015 IBM Corporation 21

Welcome to the waitless world Power. VM v 2. 2. 4 Virtualization without Limits ü Reduces IT infrastructure costs Consolidate diverse workloads save operational costs ü Improves service levels Virtualized resources can be applied dynamically to workloads as needed ü Manages risk Unrivaled flexibility enables rapid response to business change minimizing risk Announce – 10/5/2015 GA – 12/4/2015 • New!! Power. VM Nova. Link Architecture ü Direct Open. Stack Enablement ü Shared Storage Pool Enhancements ü Mobility for SRIOV Adapters ü Simplified Management © 2015 IBM Corporation − Allows direct Open. Stack connection to Power. VM host − Improves Cloud scalability and Open. Stack Community adoption of Power. VM drivers • v. NIC Adapters – Enables VM Mobility for VMs with SRIOV Adapters and improved performance • Live Partition Mobility Improvements – Better NPIV Validation, Improved performance, Allow LPM when one VIOS has failed, Improved Resiliency, Target vswitch can now be selected • Shared Storage Pools Improvements – New Storage Tiers within a storage pool. Up to 10 Tiers provide better control for performance and segregation of data – Ability to Grow a Virtual Disk

Power. KVM v 3. 1 Welcome to the waitless world Open Virtualization Choice for Linux-only Scale-out Servers ü Optimize Linux Workload Consolidation and scale out of workloads at a lower cost of ownership ü Maintain flexibility and agility by exploiting Open Source Community ü Leverage traditional Linux admin skills on Power Systems to administer virtualization ü Use open source tools like Open. Stack to manage virtualization Announce – 10/5/2015 GA – 11/20/2015 • ü Reduces IT Infrastructure costs ü Optimize Linux workload consolidation at a lower cost ü Simplify your virtualization management using open source tools 23 © 2015 IBM Corporation • • • Power. KVM Host Now runs in Little Endian Mode − Enablement for eco system - simpler porting of host software SRIOV NIC Adapter Support − Virtual Function(VF) PCI Pass through to Guest VMs − Virtual Function(VF) Hot plug support for Guest VMs − Full Enhanced Error Handling support for SRIOV devices v. CPU and Memory „Hot-plug” Support Dynamic Micro-Threading – Automatically adjusts Micro-Threading for workload • Support for new Linux Scale-out S 812 LC and S 822 LC Servers • New Linux Distro release guest VM support − RHEL 7. 2(BE & LE) + Service Pack refresh for RHEL 6, SLES 11, SLES 12, Ubuntu 15

Welcome to the waitless world Power. VC v 1. 3 ü ü ü Automates VM provisioning and best practices Improve resource utilization to reduce capital expense and power consumption Increase agility and execution to quickly respond to changing business requirements Increase IT productivity and responsiveness Manage scalability without adding complexity Announce – 10/5/2015 GA – 12/11/2015 • Advanced Policy-based Management - Dynamic Resource Optimizer(DRO) üImproved Policy-based Management for Dynamic Optimization üNew storage management capabilities üExploitation of Power. VM Nova. Link to improve Cloud Scaling – New policy control that actively balances workloads and resources for a pool of systems based on CPU usage – Balances workloads by either moving workloads with Live Partition Mobility or by using Mobile Capacity on Demand(COD) to move cores to a workload with no movement of the workload • New Storage Capabilities – Support for DS 8 K NPIV and v. SCSI storage, – Support for up to 27 SAN fabrics • Scaling Improvements – Support for Managing Power. VM hosts using Nova. Link facility • Support for Power. VM Multiple Shared Processor Pools during initial placing and migration of VMs © 2015 IBM Corporation

Welcome to the waitless world RS-IOV, v. NIC © 2015 IBM Corporation 25

SR-IOV Virtualization Enhanced . Welcome to the waitless world Virtual Ethernet (mid 2015) • Multiple copies of data • Many-to-one relationship between virtual adapters and physical adapter • Qo. S based on VLAN tag PCP bits (i. e. 8 traffic classes) • Using SR-IOV adds Qo. S to VIOS under SEA, but loses the significant SR-IOV hardware performance efficiency © 2015 IBM Corporation v. NIC (4 Q 2015) – Power VM 2. 2. 4 & FW 840 and latest OS levels • Adds advanced function – Live Partition Mobility • Improves performance • Eliminates data copies: Data flows between client partition memory and adapter • Optimized control flow, no overhead from the v. Switch or SEA • Multiple queue support • Improves Efficiency • Lower CPU and Memory usage (no data copy) • Leverages adapter offload capabilities • LPAR to LPAR communication • Deterministic Qo. S • One-to-one relationship between v. NIC client adapter and SR-IOV logical port • Extends logical port Qo. S 26

Oct 2015 SR-IOV Hardware Detail . Welcome to the waitless world LPAR VIOS In specific SR-IOV capable PCIe slots Pre-req for June 2015 SR-IOV enhancements – – Any E 870/E 880 system node slot 2 Slots of a 6 -slot Fan-out Module 4 Slots of a Power S 814 (1 S 4 U) or S 812 L (1 S 2 U) 8 Slots of a S 824 or S 824 L (2 -socket, 4 U) with both sockets populated. If only one socket populated, then is 4 slots. – 7 Slots of a S 822 or S 822 L (2 -socket, 2 U) with both sockets populated. If only one socket populated, then 4 slots – Any Power E 850 slot – – – – Pre-req for Oct 2015 SR-IOV enhancements – AIX 7. 1 TL 4 or later or AIX 7. 2 or later – IBM i 7. 1 TR 11 or later or 7. 2 TR 3 or later – Linux not announced Oct 2015 – VIOS 2. 2. 4, or later – Firmware level 8. 4, or later HMC or v. HMC required for SR-IOV Low profile multi-OS Full high multi-OS Low profile Linux only Full high -Linux only PCIe 2 4 -port (10 Gb. E+1 Gb. E) SR Optical fiber #EN 0 J * PCIe 2 4 -port (10 Gb. E+1 Gb. E) copper twinax #EN 0 L * #EN 0 H #EL 38 #EL 56 #EN 0 K #EL 3 C PCIe 2 4 -port (10 Gb. E+1 Gb. E) LR Optical fiber #EL 57 #EN 0 N #EN 0 M n/a PCIe 3 4 -port 10 Gb. E SR optical fiber ** #EN 16 #EN 15 n/a PCIe 3 4 -port 10 Gb. E copper twinax ** #EN 18 #EN 17 n/a Specific PCIe adapters support SR-IOV © 2015 IBM Corporation AIX 6. 1 TL 9 SP 5 and APAR IV 68443, or later AIX 7. 1 TL 3 SP 5 and APAR IV 68444, or later IBM i 7. 1 TR 10, or later or IBM i 7. 2 TR 2, or later Red Hat Enterprise Linux 6. 6, or later or 7. 1 Little Endian or later SUSE Linux Enterprise Server 11 SP 3, or later or 12 or later Ubuntu 15. 04, or later or 14. 04. 4 or later VIOS 2. 2. 3. 51, or later Firmware level 8. 3 or later * Not truly low profile. Adapter is available in Power E 870/E 880 system node, but not in 2 U server ** SR-IOV announced Feb 2015 for Power E 870/E 880 system node. Now available in other POWER 8 servers. 27

Welcome to the waitless world HMC, v. HMC © 2015 IBM Corporation 28

New HMC Options § Refreshed rack-mounted HMC – For POWER 6 and later servers – 7042 -CR 9 --- follow-on to CR 8 § New HMC virtual appliance (v. HMC) – For POWER 6, POWER 7, POWER 8 servers – Same functionality as traditional HMC (version 8) – Runs as virtual machine on x 86 server Welcome to the waitless world Options for attachment to a server One or two HMCs © 2015 IBM Corporation One v. HMC and one HMC One or two v. HMCs 29

7042 -CR 9 HMC Details § § For POWER 6 and later servers 7042 -CR 9 --- follow-on to 7042 -CR 8 Normal technology refresh Similar price to CR 8 § Refreshed rack-mounted HMC – 2. 4 GHz Intel Xeon Processor – 16 GB to 192 GB memory (#EM 20 16 GB feature code) Most clients expected to use 16 GB or 32 GB for HMC – One or optionally two 500 GB SATA disk drives – – – – § § © 2015 IBM Corporation Welcome to the waitless world Second drive allows RAID 1 mirroring protection (recommended/defaulted) Support any two of the eight physical hot-plug SFF bays (max 2 supported) DVD-RAM Four integrated Ethernet ports Six USB ports One PCIe slot One or two power supplies (two recommended for hot-plug redundancy) 1 U (1 EIA) Like CR 8, does not offer an internal or external modem (or support one) HMC code level 8. 4. 0 or later 1 U (1 EA) rails included with CR 9 (no separate feature code) 30

HMC Virtual Appliance Details . Welcome to the waitless world © 2015 IBM Corporation § IBM Virtual HMC Complete Software offering – License plus software maintenance – PID – 5765 -HMV – Approximately $3 k price including 1 year SW maint § Virtual HMC Runs – On x 86 Hardware (provided by client) – Under KVM or VMware virtualization (provided by client) § New v. HMC Complete Software offering – Activation engine – provides configuration on first boot – Accept License, locale, network, SSH, NTP § § § Manages any POWER 6 or later Power servers Version 8 HMC firmware Can be used with or without hardware HMCs 31

Welcome to the waitless world Solutions © 2015 IBM Corporation 32

Welcome to the waitless world Why your customer cares about SAP HANA on Power SAP has made HANA a strategic consideration for all customers • • Innovation and investment will be focused on HANA platform SAP customers must have a HANA plan HANA likes high performance hardware • • In-memory database needs high quality memory and large memory spaces Runs best in single node (Business Suite not even supported scale-out) POWER 8 has 3 major strengths • • • RAS characteristics to support mission critical SAP applications Higher throughput per core to deliver faster business results Superior virtualization and management features to drive flexibility and utilization © 2015 IBM Corporation

Welcome to the waitless world Power Analytics Solutions Overview for 2 H 15 = items not yet closed With Little Endian & Spark IBM Data Engine for Hadoop Big. Insights 4. 1 Red. Hat V 7. 1 Little Endian in 3 Q. Low cost starter config based on Habanero with superior price/performance in 4 Q 15 Big Data and Analytics With Little Endian & Spark IBM Data Engine for Analytics Big. Insights 4. 1 Red. Hat V 7. 1 Little Endian (IBM Open Platform preload available on 9/18 and Analyst and Big. Insights Data Scientist preload available on 9/25). 40 GB Infiniband integrated Mellanox switches, Big. SQL and Spark leadership benchmarks and price performance leadership 3 Q and 4 Q 15 Update IBM Data Engine for No. SQL Ecosystem expansion to include Neo 4 J, Cassandra and Mongo. DB, Ubuntu version 15. 10 with CAPI API’s open for customers & partners, RHEL 7. 1 support , update one button configurator 4 Q 15 Update Pure. Data for Operational Analytics Available on POWER 8 in 2 Q 15 with interoperability between POWER 8 data nodes for POWER 7 installed systems (GA 9/25/15) All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. © 2015 IBM Corporation IBM Confidential 34

Welcome to the waitless world Power Systems Cloud Solutions Overview for 2 H 15 New VMware v. Realize Automation for Power. VM & Power KVM Provision and manage Power and System z virtual machines through Open. Stack with VMware v. Realize Automation. Generally available in 4 Q release of v. Realize Automation, available via Services prior to launch. GA is 4 Q 15. Cloud POWER 8 Bare Metal as a Service in Soft. Layer New Small, Medium, Large configs, rapid provisioning (30 mins), with full Soft. Layer IMS Support, monthly rental with competitive pricing based on price/performance, free 30 Day Voucher program for POCs, special discount pricing for early adopters, Ubuntu 14. 04 LTS 4 Q 15 IBM Power Systems Solution Edition for Cloud Update Added support for E 880 4 Q 15 to pre-built, pre-configured Reference Configuration for enterprise Power Cloud. Pure. Application System now on POWER 8 Update A new Pure. Application System model based on the IBM Pure. Power System architecture with the latest POWER 8 processors. (Announced 8/11/15) © 2015 IBM Corporation All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. 35

Welcome to the waitless world Withdrawals © 2015 IBM Corporation 36

Withdrawal from Marketing Welcome to the waitless world Announcement letter dated 29 Sept 2015 – Server and Pure. Flex model announcements • • – © 2015 IBM Corporation Effective 19 February 2016 • • • IBM 8246 -L 2 T Power. Linux 7 R 2 Server IBM 7893 -92 X Flex System Enterprise Chassis IBM 7955 -01 M Flex System Manager IBM 8956 -15 X Flex System x 240 Compute Node IBM 7895 -43 X Flex System p 460 Compute Node Effective 20 May 2016 • • • IBM 8246 -L 1 T Power. Linux 7 R 1 Server IBM 8231 -E 1 D Power 710 Express Server IBM 8202 -E 4 D Power 720 Express Server Related features associated with the above 37

Withdrawal from Marketing Withdraw 30 Nov 2015 * Withdraw 19 Feb 2016 ** Power 780+ Withdraw 20 May 2016 ** * announced 24 Feb 2015 ** announced 29 Sept 2015 Power 710+/730+ Power 720+/740+ Power. Linux 7 R 1+ / 7 R 2+ Welcome to the waitless world Power 795 Power 770+ Power 750+ / 760+ Power. Linux 7 R 4+ P 460+ IBM Pure. Flex System p 260+ x 240 © 2015 IBM Corporation 38

Welcome to the waitless world Additional Education © 2015 IBM Corporation 39

Additional Education – – – – 4 Q 2015 Power Announce Overview (ltu 50767) Power Solutions Overview for 2 H 2015 (ltu 50995) IBM Data Engine for Analytics (ltu 50996) Predictive Analytics (SPSS) (ltu 50992) Power Cloud Solutions Offerings (ltu 50997) SAP HANA (ltu 50998) Intelligent Infrastructure: Power Systems S 812 LC and S 822 LC (ltu 50768) IBM Power Systems S 822 LC for High Performance Computing (ltu 51000) Enterprise Server and Pools Update (ltu 50770) Pure. Power Converged Infrastructure (ltu 50771) AIX 7. 2 (ltu 50772) IBM i (ltu 50991) Power. HA System Mirror 7. 2 for AIX (ltu 50993) Power Systems Virtualization and Management (ltu 50994) IBM Elastic Storage Server Update (ltu 50769) – Intelligent Infrastructure – New POWER 8 LC Servers (ltu 51076) – Technical hardware deepdive (ltu 51077) © 2015 IBM Corporation Welcome to the waitless world IBM IBM IBM IBM BP BP BP BP IBM BP BP 40

Welcome to the waitless world Special notices This document was developed for IBM offerings in the United States as of the date of publication. IBM may not make these offerings available in other countries, and the information is subject to change without notice. Consult your local IBM business contact for information on the IBM offerings available in your area. Information in this document concerning non-IBM products was obtained from the suppliers of these products or other public sources. Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products. IBM may have patents or pending patent applications covering subject matter in this document. The furnishing of this document does not give you any license to these patents. Send license inquires, in writing, to IBM Director of Licensing, IBM Corporation, New Castle Drive, Armonk, NY 10504 -1785 USA. All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. The information contained in this document has not been submitted to any formal IBM test and is provided "AS IS" with no warranties or guarantees either expressed or implied. All examples cited or described in this document are presented as illustrations of the manner in which some IBM products can be used and the results that may be achieved. Actual environmental costs and performance characteristics will vary depending on individual client configurations and conditions. IBM Global Financing offerings are provided through IBM Credit Corporation in the United States and other IBM subsidiaries and divisions worldwide to qualified commercial and government clients. Rates are based on a client's credit rating, financing terms, offering type, equipment type and options, and may vary by country. Other restrictions may apply. Rates and offerings are subject to change, extension or withdrawal without notice. IBM is not responsible for printing errors in this document that result in pricing or information inaccuracies. All prices shown are IBM's United States suggested list prices and are subject to change without notice; reseller prices may vary. IBM hardware products are manufactured from new parts, or new and serviceable used parts. Regardless, our warranty terms apply. Any performance data contained in this document was determined in a controlled environment. Actual results may vary significantly and are dependent on many factors including system hardware configuration and software design and configuration. Some measurements quoted in this document may have been made on development-level systems. There is no guarantee these measurements will be the same on generally-available systems. Some measurements quoted in this document may have been estimated through extrapolation. Users of this document should verify the applicable data for their specific environment. Revised September 26, 2006 © 2015 IBM Corporation 41 41

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