The Value of Cloud Computing on z Systems

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The Value of Cloud Computing on z Systems Presenter Guidance: Contents, programs, target markets. DELETE BEFORE PRESENTING § This presentation contains charts that apply to The Value of Cloud Computing on z Systems course and can be used to share information with IBM clients who are unfamiliar with the features and benefits of using z Systems as their platform for cloud computing. § Be sure to tailor the presentation to your client’s situation; that is, if the client is using backlevel versions of only three of the products covered in this presentation, then show the client only the introductory section about the value of staying current, followed by only the three back-level products that your client is using. § Select Edit – Delete Slide on the MS Power. Point menu bar to remove this slide before presenting the slide show. 2 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Agenda § What is all the excitement about cloud computing? § How are IBM’s customers adopting cloud computing? § What makes z Systems the ideal platform for cloud computing? § What solutions support cloud computing on z Systems? § How do I develop a cloud strategy for my organization? § Where do I go to learn more? 3 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Market Forces at Work Three key market forces are causing a re-evaluation of business technology: Expectations § Escalating customer, employee, and partner expectations around self-service, personalization, access to real-time information, and service innovation Demands § An exponential increase in data, users, speed requirements, and the number and variety of connected devices Competition § The imperative to deliver higher value products and services more rapidly than ever before in order to remain competitive in a crowded, global market 5 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Cloud Computing Basics § Computing has changed greatly over the last 20 years. We have moved from storing files, images, data, and even programs on the computer to the Internet. § Our personal e-mail is likely to be accessible from the web rather than on our hard drives. Instead of watching a video stored on a DVD, we can view thousands of videos and television programs directly over the Internet from providers such as You. Tube, Netflix, and Hulu. § If you do your taxes online, all your tax data is stored online, available when you need it to file your taxes next year. § Myriads of options are now available 24/7 on the Internet, from online bank accounts to Facebook. § These new options or services fall within the concept of cloud computing. 6 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Cloud Appeal IT and business are attracted to the cloud for different reasons. § Too often, the cloud’s vast potential is unmet because cloud is being used primarily to make IT easier, cheaper and faster. IT is drawn to the cloud’s cost, efficiency, and control. § Consolidation, data center efficiency, and lower costs are just the start. Business is drawn to the cloud’s self-service experience and new service capabilities. § Sixty percent of CIOs plan to use the cloud—up from 33% two years ago. Fifty-five percent of business executives believe the cloud enables business transformation and leaner, faster, more agile processes. Cloud is not just about rethinking IT; it is also about reinventing the business. 7 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Moving Your Business to the Cloud Improved security and compliance control posture § Embrace new business Improve speed and dexterity § Speed the delivery of new offerings and services by creating new models of self-service and deployment. opportunities while maintaining control and mitigating risk. Deliver IT without boundaries § Implement new systems and management processes that simplify access to information in order to deliver better business outcomes. 8 Create new business value § Empower internal and external communities to define and create new offerings and services. © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Cloud Types Public Cloud Amazon, Salesforce. com, IBM Blueworks Live. TM! Private Cloud Behind the firewall for internal and partner use. Private clouds are suitable for many workloads including core business workloads. Variations include: managed private cloud, hosted private cloud Hybrid Cloud A cloud with both public and private characteristics, this can be an integrated public and private cloud or community cloud 10 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Client initiatives are emerging for successfully beginning and progressing the cloud across a broad spectrum of opportunities. Iaa. S: Cut IT expense and complexity through a cloud-enabled data center Shift the role of IT to a center of strategic business value by moving beyond virtualization to cloud service delivery 13 Paa. S: Accelerate time to market with cloud platform services Leverage the cloud with certainty and choice, through secure and scalable cloud application services Saa. S, BPaa. S: Gain immediate access with business solutions on cloud Accelerate business impact with immediate access to industry-tailored cloud solutions Innovate business models by becoming a cloud service provider Activate and scale a broad, global ecosystem of partners enabling a new industry of cloud service providers © 2015 IBM Corporation

The Value of Cloud Computing on z Systems IBM is working with clients in each initiative to help them achieve real business value. Cloud-Enabled Data Center Major U. S. financial services company • $3 M in savings • 13 x faster deployment • 6– 12 month ROI 14 Cloud Platform Services Citi Brought a 45 -day wait for server resources down to 20 minutes with self-service request, automated provisioning, and internal chargeback Business Solutions on the Cloud Service Provider True Value Transformed the management of its supply chain across 5, 000 hardware stores in 54 countries Reduced lead time by 56% Reduced back orders by 85% Quang. Trung Software City Ho Chi Minh City’s laa. S and hosting facility serving Vietnam’s largest software development center © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Finding the Most Cost-Effective Option Blue Cross Blue Shield of Minnesota Advantages of virtualization First, the lead time for server provisioning has been reduced by more than 99%. When the business requires a new test or development environment, the IT team can deploy a new Linux® virtual server within 20 minutes. There is no longer any need to source a new physical server, wait for delivery, then install and configure it—a process which could take six to eight weeks. Availability and disaster recovery In fact, since the new infrastructure went into production, BCBSM has not experienced a single incidence of unplanned downtime or underperformance. Equally, the company’s disaster recovery capability has been improved dramatically by the new solution. “Even without factoring in the maintenance and support costs—which would be considerable for a large estate of physical servers—we found that running a virtualized Linux environment on z Systems would be somewhere between 30 and 50 percent less expensive than a distributed architecture, ” says Ted Mansk, Director of Infrastructure Engineering and Databases at BCBSM Realizing the cost savings Finally, BCBSM expects the new infrastructure to deliver cost savings over and above the predicted TCO savings in the initial cost-benefit analysis. 15 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Transzap Boosts Software-as-a-Service Uptime with IBM z Systems Transzap offers its customers a comprehensive suite of financial software tools. As a small business with tens of billions of dollars in client transactions flowing through their systems each year, Transzap needed an economical, reliable platform to provide clients with high availability, while enabling the capacity to accommodate growth within their software-as-a-service business model. Transzap decided to consolidate on an IBM z Systems platform to provide the stability and scalability needed to accommodate triple- digit volume growth, enabling them to focus on the business of software innovation. Transzap migrated to z Systems and virtualized its critical applications on Linux on z Systems, a platform that supports Transzap's dynamic Java® and Oracle environments. “We intend to deliver a 99. 9% application uptime guarantee to our customer base, thanks to the availability characteristics of z Systems. ” — Peter Flanagan, CEO, Transzap, Inc. Benefits: § Helps Transzap serve more than 69, 000 users across 6, 800 companies § Provides higher levels of uptime for their customers § Offers peace of mind through 24 x 7 world-class hardware support 16 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems IBM’s Real-World Experience with Cloud Computing 10, 000 successful private cloud engagements in 2010. 5. 5 M daily transactions processed through IBM Cloud. “IBM has one of the most comprehensive cloud portfolios, with the cloud integrated throughout its many lines of business. Moreover, IBM’s consulting arm has put them in touch with numerous early adopters and special use cases— all of which helps the company stay ahead of competitors. ” – Jeff Vance, Datamation 17 40, 000 IBM cloud experts are helping clients transform with cloud and drive growth 80% of Fortune 500 companies are using IBM cloud capabilities. © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Advantages to Deploying Clouds on Larger, Scale-up Servers Higher Utilization § Up to 100% CPU utilization § “Shared everything” architecture § Host thousands of mixed workloads § Less power and cooling § Less floor space § Fewer parts to manage Increased Productivity Greater Reliability, Availability § Efficient, rapid provisioning § Superior workload management § Fewer parts to manage 19 More Efficient Data Center § Built-in hardware redundancy § Decades of RAS innovation § Capacity and Backup on Demand © 2015 IBM Corporation

The Value of Cloud Computing on z Systems has had cloud computing capability and has been supplying business flexibility for years. z Systems supplies all components necessary to deliver the cloud today Workload Management Manage cloud infrastructure capacity requirements consistent with business policies Transaction Processing Support integration of cloud with mission-critical OLTP applications Availability and Provisioning Automation for deploying Virtual Machines and recovery applications including DR Security and Compliance z Systems Security provides fine-grained controls with hardware encryption and isolation Auditing and Metrics Scalability Scale vertically with z. OS® and LPAR and horizontally with z. Linux and z. VM® coupled with Workload Manager 20 Workload-based accounting and metering to support capacity planning and chargeback to LOB © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Private Cloud Advantage Source: IBM internal study. z. Enterprise configurations needed to support the three workload types were derived from IBM benchmarks. Public cloud sizing needed to support three workload types was calculated based on a compute capacity of public cloud services. Three-year TCO for public cloud was based on pricing information available by the service provider. Three-year TCO for z. Enterprise included hardware acquisition, maintenance, software acquisition, Service and Support, and labor. US pricing varied by country. © 2015 IBM Corporation 21

The Value of Cloud Computing on z Systems IBM Cloud Manager with Open. Stack helps organizations implement a private infrastructure as a service (Iaa. S) based on Open. Stack, backed by IBM enterpriseclass service and support. IBM Cloud Manager with Open. Stack V 4. 1 is an innovative, cost-effective approach for organizations and service providers that also includes basic security, automation, metering, and integrated platform management. It is designed to: § Lower administrative overhead through simplified cloud administration with an intuitive interface § Improve operations productivity with an easy, self-service user interface § Reduce management costs and improve responsiveness to changing business needs by standardization of virtual machines and images § Improve utilization of infrastructure by enabling consolidation and automation of highly optimized IBM systems and software IBM Cloud Manager with Open. Stack delivers 100% of the core Open. Stack APIs that help to eliminate vendor lock-in, and can deploy across public, private, and hybrid Open. Stack-based clouds. IBM Cloud Manager with Open. Stack will be available on a trial basis. 23 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems IBM Infrastructure Suite for z/VM and Linux on z Systems Organizations that have expanded their business using virtualization technology with Linux on z Systems now have one solution that provides them with multiple tools to monitor, operate, automate, and backup and recover their entire z/VM and Linux on z Systems environment. Product components include: § OMEGAMON XE on z/VM and Linux § Operations Manager for z/VM § IBM Wave § Backup and Restore Manager for z/VM § IBM Tivoli Storage Manager Extended Edition Benefits include: § Easy-to-use, content rich interface that is simple and free of operational complexity. § Improved productivity with rapid cloning and provisioning of Linux guests on IBM z/VM. § Simplified administration with flexible reporting. § Easier administration with detailed performance monitoring, including customized views and historical data 24 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems IBM Cloud Orchestrator The ability to support user-driven services requests and orchestrated resource deployment is pivotal to an optimized infrastructure and can provide tremendous cost savings § IBM Cloud Orchestrator is a comprehensive open cloud management platform that automates the delivery of cloud services. Its advanced cloud capabilities include: – Automating the management of virtual environments – Building dynamic service delivery models. – Integrating business policies and systems in a customized cloud service through workflow integration § IBM Cloud Orchestrator is a comprehensive service delivery platform that can help: – Drive down costs – Increase speed to deliver business services 25 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Extreme Cloud Administrative Toolkit The Extreme Cloud Administrator Toolkit (x. CAT) is included as part of z/VM 6. 3. It allows customers to set up and administer a rudimentary cloud environment on z/VM only, without purchasing any other cloud management software. x. CAT provides the following features: § Easy-to-use tool to manage, provision, and monitor physical and virtual machines on IBM z Systems § It is a scalable, open source toolkit that includes: – Provisioning and de-provisioning of virtual guest environments – Monitor physical and virtual resources – Provide network, storage, and image management § x. CAT has four different interfaces: – REST (Representational State Transfer) APIs – Browser-based Graphical User Interface – Command Line Interface (CLI) – XML 26 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems IBM Wave for z/VM helps dramatically simplify administration and management of z/VM and virtual Linux servers, freeing staff to focus on other business-critical tasks. § IBM Wave integrates seamlessly with z/VM and Linux environments § Display and manage virtual servers and resources from a single graphical interface. § Helps with rapid cloning and provisioning of virtual Linux servers and resources on z/VM. § Dramatically reduces the learning curve to manage and control z/VM and virtual Linux servers. § Reduces administration time § Helps identify, expose, and aggregate resources clearly § Facilitating an easier transition to private cloud. 27 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Cloud Security To optimize enterprise security, there must be a high level of planning and assessment to identify risks across key business areas. This security framework includes people, processes, data, and technology throughout the entire business continuum. IBM Security solutions provide comprehensive, end-to-end, integrated security capabilities on mainframes, enabling enterprises to consolidate their security management and leverage the mainframe as their enterprise security hub. § The following IBM solutions are applicable in a mainframe cloud computing environment: – IBM Resource Access Control Facility (RACF) – IBM Security z. Secure suite. – IBM Security Federated Identity Manager for Linux on z Systems. – IBM Security Identity Manager for Linux on z Systems – IBM Security Access Manager for e-business (for Linux on z Systems) – IBM Security Key Lifecycle Manager for z/OS – IBM Info. Sphere Guardium Database Activity Monitor – IBM Proventia® Server Intrusion Prevention System for Linux on z Systems 28 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Smarter Cities® on the Cloud Acting effectively in today’s world involves rapidly assimilating information from many sources, making decisions quickly, and acting in a maximally efficient manner. IBM Intelligent Operations Center § Integrates disparate and older systems into one engine that can simplify inputs § Provides a complete overview of the enterprise or city services § Ensures that the correct people are alerted to anything out of the ordinary, extreme, or important § Provides the ability to launch workflows and situation management, text people when they must know something § Provide real-time situational analysis and tracking as day-today issues are addressed § Data is analyzed, processed, and stored 29 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Cloud Test Drive IBM offers a z Systems Cloud Portal—the IBM Linux on z Systems Cloud Test Drive—that enables clients to experience a cloud on z Systems from anywhere in the world via the Internet. The IBM Linux on z Systems Cloud Test Drive video See for yourself how effectively Linux is deploying an Iaa. S solution. You will see what it is like to be both a user and an administrator with a z Systems cloud. (You will need to be connected to the internet to view this video. ) 33 © 2015 IBM Corporation

The Value of Cloud Computing on z Systems Trademarks § IBM, the IBM logo, and ibm. com are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U. S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the web at "Copyright and trademark information" at www. ibm. com/legal/copytrade. shtml. § Intel is a registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. § Java and all Java-based trademarks and logos are trademarks or registered trademarks of Oracle and/or its affiliates. § Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both. § Microsoft and Power. Point are trademarks of Microsoft Corporation in the United States, other countries, or both. § UNIX is a registered trademark of The Open Group in the United States and other countries. § Other product and service names might be trademarks of IBM or other companies. © 2015 IBM Corporation