Managing TCO with SOA Platform Makes the Difference

Managing TCO with SOA: Platform Makes the Difference! Sreenath Chary IBM Systems Group-System z Business Unit Executive

Total Cost of Ownership: a significant challenge Spending (US$B) $300 Installed Base (M Units) 50 Power and cooling costs Server mgmt and admin costs New server spending $250 45 40 35 $200 30 $150 25 20 $100 Opportunity to lower operational costs and improve TCO 15 10 $50 5 $0 20 10 20 09 20 08 20 07 20 06 20 05 20 04 20 03 20 02 20 01 20 00 19 99 19 98 19 97 19 96 0 Source: IDC, Virtualization 2. 0: The Next Phase in Customer Adoption, Doc #204904, Dec 2006 2

Enterprise Transactions are on System z … Platform Makes a Difference 8 of every 10 of the largest retail banks in the US, Germany, Japan, and Australia use CICS for their core banking 90% of the World's 100 largest corporations run their businesses on Web. Sphere Application Server 18 of top 20 Fortune 500 customers use WMQ CICS is IBM's premier Transaction processor in 90% of the Fortune 500 customers Government customer processing in excess of 675 M messages a day on a single WMQ network IDC estimates that $1 Trillion is tied up in applications, processing 30 Billion transactions a day, for a value of $1 Trillion a day. 3

Deploying on System z provides differentiated value Enabling intelligent IT that works for your business The New IBM System z 10 Enterprise Class § Faster: Processors, memory, network § Consolidation of hundreds of applications The power of many. . . § Rapid access to corporate data § Messaging speeds to support SOA § Better price / performance of specialty engines § Just in Time capacity and management § Adapt faster to SOA workload variations . . . the simplicity of ONE § Respond automatically to demand from CICS, IMS, DB 2, Web. Sphere, … § Deploy Web. Sphere workloads in minutes Server Leadership: 40+ years in the making! Mainframe utilization rates often exceed 80%, and are designed to handle sustained peak workload utilization of 100% without service level degradation. 4

Incremental Benefit Paths for System z Workloads Reliability & Control Accuracy/ Control / Reliability Create Dynamic Adaptability § Information integration § Data and app governance § Security hub § Composite apps § Business mash-up § SOA hub Foundational Extend End-to-End Access to Function & Information on System z § Exposing traditional apps & data for quick and easy access: Service enablement Transform Adapt Dynamically Performance / Manageability § Creating new Web apps § Consolidate apps and data § Web 2. 0 § Data warehousing Performance, cost management, responsiveness 5

SOA Entry Points are a great way to build for change For rapid business return Foundational Extend End to end Focused, proven, high-ROI projects focused on a single application or business unit Transform Adapt Dynamically Scenarios to get started with SOA Entry Points 6

Reuse Entry Point … … Service enabling existing applications DB 2 z/OS IMS DB CICS Transaction Server V 3. 2 for z/OS IMS 10 for z/OS Process Services Information Services Enterprise Service Bus Partner Services Business App Services Access Services Management Services Interaction Services Apps & Info Assets § Extend existing applications to support integrated business processes via standard APIs and protocols § Management of large runtime configurations via modern user interfaces Development Services Create flexible components from existing applications to use in new applications Business Services Infrastructure Services CICS Transaction Server IMS Transaction Manager Reuse your existing and new IT investment for SOA § Ease new application development and management § Lower operating costs through z/OS and z. AAP engine § New security capabilities for greater control § Improved auditing and accountability DB 2 9 for z/OS optimized for SOA Business insight and flexibility with pure. XML § Web. Sphere integration for trusted applications and web serving § Security & SOA governance capabilities 7

Web. Sphere Application Server V 6. 1 for z/OS - Powerful combination with new z 10 IBM System z 10 § Hardware features to handle tough workloads – Increased CPU power (64 CPUs/image) – Very large real memory (1 TB) – Increased I/O and network bandwidth – Hyper Dispatch § Improves Security – Advanced Encryption Standard (AES) using 256 bit key Estimate WAS V 6. 1 (Java 5) performance on z 10 to be 1. 5 times faster Web. Sphere Application Server (WAS) for z/OS V 6. 1 Differentiation § Jinsight. Live for IBM System z – Dynamic, lightweight Java profiler and visualizer – Handles tens of millions of events to determine performance bottlenecks § WAS capability to enable the New Face of z/OS § Embedded WAS on z/OS to support SSRE – Base for z Management Facility (z. MF) 8

Lowering start-up costs Addressing Price/Performance For New Web. Sphere Projects on z/OS z. SW License Old Starting Point Capacity Based Pricing Alternative Starting Point Utilization + Capacity Based Pricing Receive Sub-LPAR pricing for new entry workload. Getting Started Sub-capacity Pricing for z/OS IPLA Software ü Enables customers to start small projects on z/OS ü Improves alignment between software use and software charges ü Greater flexibility with software licensing ü Add hardware capacity and without necessarily increasing software charges ü Achieve better price/performance. Application Workload Size 9

When to Deploy New Services on System z Combine the availability, scalability and security of System z with the industry leading Application Server for: ü Integration with existing mainframe assets ü High performance access to customer information ü Server consolidation and simplification ü True dynamic scalability for unpredictable workloads ü Zero downtime for services that drive the business ü Exploitation of Java/J 2 EE programming skills ü Lowest TCO for the lifetime of the application Hardware, operating system, and middleware working together to bring true 99. 999% application availability to your business critical services. 10

University of Florida Industry: Education URL: http: //www. ufl. edu/ “The CICS Web Services Assistant supports rapid deployment of CICS TS applications to provide and request services. The streamlined process requires a minimum of effort. ” –Steve Ware, System Coordinator, Computing & Networking Services, University of Florida Easy linkage between time-proven core business processes and new business models resulting in lower TCO CHALLENGE § Develop administrative framework for packaged student health program SOLUTION § SOA with Enterprise Service Bus to connect siloed applications without hand-coding individual API calls BENEFITS § § Lower TCO than other campus implementations Sub-second responses on Web Faster implementation compared to other platforms Seamless integration with existing, locally written CICS Webbased UF Student Records System 11

Connectivity Entry Point: Federated ESB – integrated framework to meet your needs Web. Sphere Enterprise Service Bus 6. 1 for z/OS Leverage existing applications on current SOA environment for better reuse § Platform-based ESB built on Web. Sphere Application Server § Leadership in SOA standards for service composition, mediation and hosting § Enhanced ease of use Web. Sphere Data. Power Integration Appliance XI 50 3. 6. 1 Purpose-built hardware for simplified deployment and hardened security § Simplified configuration § Improved Web. Sphere Service Registry and Repository support § Guaranteed critical message delivery § Integration with DB 2 V 9 pure. XML Web. Sphere Message Broker 6. 1 for z/OS Platform independent ESB for heterogeneous environments § Improved developer experience for more flexible and robust business solutions § Faster processing and validation § Integrated Adapter and transformation enhancements § Enhanced administration By 2009, Analysts state multiple ESBs will be required to grow your SOA! 12

SOA Connectivity: Enhancing Our Portfolio Accelerate SOA integration Web. Sphere Adapters 6. 1 CICS Transaction Gateway 7. 1 Accelerate time to value, and simplify the integration of applications in a SOA § Web. Sphere Adapters now available for Web. Sphere Application Server z. OS 6. 1 § Improve connectivity for application reuse with new Adapter Nodes for Web. Sphere Message Broker V 6. 1 Secure, scalable and flexible SOA access to CICS applications Web. Sphere Transformation Extender V 8. 2 § Leverages CICS TS V 3. 2 - the flagship SOA release of CICS TS § Support your enterprise wide management with enhanced systems monitoring Accelerates time to value and simplifies standards compliance § Linux for System Z § New Eclipse std Design Studio § New Edition for Integration Servers supports ESB and BPM § New ACORD Pack for Insurance § New NACHA Pack for e. Payments 13

IBM Web. Sphere MQ V 7 15 rs Yea Web. Sphere MQ V 7 Web 2. 0 § Universal Messaging Backbone for SOA and Web 2. 0 § Enabling reliable connectivity from z/OS to virtually any other commercial IT system § Web 2. 0 support to help create richer user experience § Uses real business data from z/OS applications § Enhanced Web. Sphere MQ clients for increased throughput resilience and availability Web. Sphere MQ V 7 Performance Enhancements § Enhanced publish-and-subscribe performance – z/OS: New publish-and-Subscribe support § Enhanced JMS performance – z/OS: Increasing JMS listener throughput by up to 220%* Java Message Multi-Language MQ Interface Service (JMS) Message Service IBM Web. Sphere MQ V 7 Publish Subscribe Web 2. 0 AJAX HTTP GET HTTP POST Applications and Data Web. Sphere MQ V 7 HTTP DELETE * Preliminary results observed on pre-release level code. For the latest performance information please click on Performance Reports at www. ibm. com/webspheremq/support 14

When to use System z as the Hub for your ESB requirements § Integration: System z benefits for ESBs § Virtualization – Complex transactions and roll back – High resource utilization – Monitor end-to-end transactions in complex configurations – Massive consolidation and simplification – Allocate resources according to business goals – Workload isolation and security – Provide single point of control – Meet security & regulatory requirements § Business criticality: – Qo. S & security are high-priority factors – Need to handle unpredictable workloads – Business services are reused by an increasing number of critical applications § Performance: – Key applications and data reside on System z § Growth: – Quickly add new services and capacity with no disruption to apps or users – Enterprise workload management § Handles business critical workloads – Up to 99. 999% availability – Recover whole systems across distances – Dynamic workload balancing – Simplification of security management § Performance – ESB performance improvements when colocating with z/OS data – Customer Po. C example - Average CPU time reduced by over 77% § Efficient growth – Pay for what you use, add capacity and applications quickly and automatically 15

Ball State University Industry: Education URL: http: //cms. bsu. edu/ “SOA has been such a gift to us. It enables us to embrace a new technology that provides services at a level that we couldn’t even imagine before. ” –Dr. O’Neal Smitherman Ball State University bridges disparate systems and solves key administrative issue with IBM SOA solution. CHALLENGE § Coordinate 40 name and address systems to streamline administrative processes and ensure information integrity for users SOLUTION § SOA with Enterprise Service Bus to connect siloed applications without hand-coding individual API calls BENEFITS § Ability to develop and implement services in an SOA environment for resolving name and address discrepancies in 10 months, as opposed to several years for hand-coding individual application connections § Confidence that IBM solution can lead to wider use of SOA to further streamline administrative business processes § Services created here can be reused in later SOA efforts 16

Business Process Management Enabled by SOA BPM covers the entire lifecycle of your new business process 1. Design, Model and Simulate 2. Automate and Change Rapidly End-to-End Process 3. Monitor, Analyze and Optimize 17

Existing System z Customers Streamline and Automate Existing Processes Customer Presales Account Application Activation and Fulfillment Verification and Regulatory Compliance Take individual steps… Credit Check …assemble and automate instead of re-writing! Customer Presales Account Application Verification and Regulatory Compliance Credit Check Activation and Fulfillment 18

Process Choreography on an SOA-Enabled Platform “IBM is the first and so far the only infrastructure software supplier to offer a complete BPMS supporting the end-to-end lifecycle from analytical modeling to performance management and optimization – based entirely on service oriented architecture. ” An SOA environment that provides: § Process Automation & Execution § Human Task Management § Application Integration § Built on SOA Bruce Silver, Bruce Silver Associates – The 2006 BPMS Report 19

SOA Process: Enhancing Our Portfolio A discipline enhanced by flexible architecture Web. Sphere Integration Developer V 6. 1 Eclipse-based tool for building SOA-based BPM and integration solutions § Enables rapid assembly of business solutions by wiring reusable service components Web. Sphere Process Server for z/OS V 6. 1 Accelerate time to value, and simplify the integration of applications in a SOA § Improve connectivity for application reuse § Web. Sphere Adapters now available on z/OS 6. 1 Web. Sphere Business Modeler V 6. 1 Web. Sphere Business Monitor V 6. 1 Visualize, understand, and document your business processes Comprehensive business activity monitoring of your business performance § Document processes to better understand your business § Discover potential areas for process improvement and latent value in processes § End-to-end visibility of business performance through dashboards § Advanced analytics for decision making 20

Web. Sphere Business Services Fabric End-to-End Platform for Industry SOA Solutions Web. Sphere Business Service Fabric V 6. 1 Web. Sphere Business Services Fabric End-to-end SOA platform for composite business services Interaction Services Process Services Information Services Partner Services Business App Services Access Services Apps & Info Assets Enterprise Service Bus Management Services Business Services Development Services § Extends Web. Sphere Process Server for z/OS and Web. Sphere Integration Developer Infrastructure Services 21

When to Use System z for Process Serving Personal Loan Request (New WASz Application) System z–The choreographer for an SOA Get Customer Information (Existing CICS application) § Efficiency § Integration § Automation § Reliability § Workload Management § Security § Availability § Performance Internet DB 2 Credit Rating (External Bureau) Approval (Human Task) Not Approved Additional Services (CRM System) Reply (Human or Electronic) 22

Industry: Telecon Customer Example: Telecon Accelerate the integration of mission-critical systems to improve operations and customer service CHALLENGE § Eliminate overlapping redundant systems and data § Need for flexible systems to meet business needs § Improve operations and customer service SOLUTION § The WSRR and Web. Sphere Process Server were deployed to improve relationship management and sales systems BENEFITS § Convenient way to catalog their services § Notifications to service supervisors, owners and subscribers § Governance of the lifecycle of services 23

Simpler than ever to use SOA Entry Points Proven configurations, best practices, and step by step guides SOA Sandbox on developer. Works SOA Configurations Examples and best practices provide low risk, practical, hands-on path to understanding Full version software trials ‘Try online’ hosted environments Tutorials Solutions for common SOA use cases helps reduce deployment time System z Configurations for SOA Leveraging Legacy and Packaged Applications SOA Security and Management Configuration guides Solution Guides Demos Tested platforms Architectural Guidance 24

Process Integrity Takes SOA to the Next Level Supporting Integrity of Transactions, Interactions & Information Process Integrity is the ability to conduct reliable business activity Transactions Must Execute Consistently with Ability to Recover as Required Users Must Be Provided with Up-to-date, Secure Access to Information and Content Information Must be Reliable, Complete and Manageable 25

Process Integrity for System z – Web. Sphere MQ for z/OS, Web. Sphere Message Broker for z/OS, WAS for z/OS, WESB for z/OS, Web. Sphere Process Server for z/OS, and Web. Sphere Business Services Fabric – Fully ARM-enabled – Workload Management – Goal-oriented resource allocation – Workload scaling, workload isolation – Takes full advantage of Parallel Sysplex for with MQ Shared Queues – Sophisticated heterogeneous transaction coordination – Supports DB 2 data sharing, CICS EXCI support and Resource Recovery System (RRS) global transaction coordination – RACF for integrated security – Reporting and Chargeback § Reduced points of failure § Faster processing § Fast End-to-end recovery 26

Infrastructure Simplification … … a Critical Success Factor for SOA SAN § Operational silos § Multiple tiers § Inflexible with increasing cost § Growing complexity System p Blade. Center Business Data Mainframe PCs Web Servers Routers Switches Firewall Servers Caching Appliances Data System z Mainframe Transaction Data Backup Reference Data UNIX SSL Appliances Storage Database Servers Security & Directory Servers Application Servers UNIX DNS Servers UI Data Utility Infrastructure Application Deep Servers Computing E-Commerce Web Services Applications Collaboration File/Print Servers SSL Appliances Servers Terminal Serving Java Linux Grid Enterprise Trust Authority Transaction Secure Servers Database Vault Application Web Servers Utility Consolidation (eg. File/Print server) Today’s Environment, Simplified PCs File/Print Servers LAN Servers § Scale up and scale out to manage costs through better utilization of IT assets § Standardize, automate, and integrate business processes, information, and underlying IT Infrastructure § Select the resources providing the values to best meet on demand business requirements 27

TCO Is Better on System z … … IBM Distributed Consolidation to System z Performed TCO and consolidation assessment on IBM portfolio Analysis considers today’s environment vs. “to be” environment; savings is net after hardware and migration investments Identified substantial savings opportunity Annual Energy Usage reduced by 80% Total floor space reduced by 85% 28 28

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