IBM and Dynamic Infrastructure
Doug Neilson, IBM Systems Group
March 2009
IBM’s Smarter Planet Strategy
“Every human being, company, organization, city,
nation, natural system and man-made system is becoming
interconnected, instrumented and intelligent.
This is leading to new savings and efficiency—but perhaps
as important, new possibilities for progress.”
1
Building a smarter planet
Questions, questions, questions….
“Data is exploding
and it’s in silos”
2
“New business &
process demands ”
I Need Insight
I Need to Work
Smart
How can we take
advantage of the
wealth of information
available in real time
from a multitude of
sources to make
more intelligent
choices?
How can we work
smarter supported
by flexible and
dynamic processes
modeled for the new
way people buy, live
& work.
New
Intelligence
Smart
Work
“My infrastructure is
inflexible and costly”
“Our resources
are limited”
I need to respond
quickly
I Need Efficiency
How do we create an
infrastructure that
drives down cost, is
intelligent and secure,
and is just as dynamic
as today’s business
climate ?
Dynamic
Infrastructure
Let’s discuss each of these in a bit more detail.
How do we drive greater
efficiencies, compete
more effectively, and
respond more quickly by
taking action now on
energy, the
environment, and
sustainability.
Green &
Beyond
Evolving Dynamic Infrastructure
Four major IBM
initiatives
IBM’s smarter
planet vision
Dynamic
Infrastructure
Dynamic
Infrastructure
New
Intelligence
The world has become flatter
and smaller. Now it must
become smarter.
Green &
Beyond
Smart
Work
How do I create an infrastructure
that drives down cost, is
intelligent and secure, and is
just as dynamic as today’s
business climate ?
What does it look like?
 Enables visibility, control, and automation
across all business and IT assets.
 Transforms assets into higher value
services.
 Highly optimized to achieve more with less.
 Addresses the information challenge.
 Leverages flexible sourcing like clouds.
 Manages and mitigates risks.
4
…delivers superior business and IT
services with agility and speed.
Starting with Advanced Technologies…
Z6 Quad-core
Power Systems
Cell Processor
500GHz SiGe Chip
Multi-Chip
Module
Racetrack memory
… Building Innovative Products
Enterprise
X-Architecture
XIV Storage
iDataplex
System z10
Storage
virtualization
Power 6
Roadrunner
Building a smarter planet
IBM Roadrunner, at 1026 Teraflops
 Armonk, NY - 09 Jun 2008: The world’s first “hybrid” supercomputer;
designed to operate at one petaflop
 Roadrunner is the first-of-a-kind design, the Cell Broadband Engine®
will work in conjunction with x86 processors from AMD®.
 Roadrunner connects 6,562 dual-core AMD Opteron® chips with
12,240 Cell chips (on IBM Model QS22 blade servers). The
Roadrunner system has 98 terabytes of memory.
 Roadrunner operates on open-source Linux software from Red Hat.
 Roadrunner’s hybrid format draws power (2.35 megawatts) and
delivers world-leading efficiency – 437 million calculations per watt.
 Cost was about $100 million
IBM iDataplex
Super Computing 2008
Cluster Challenge Winner
Using iDataPlex the Indiana University School of
Informatics and Technische Universität Dresden (TUD)
were awarded first place in the SC08 Cluster Challenge, for
leading-edge, energy-efficient high performance computing
at Super Computing 08!
http://insidehpc.com/2008/12/08/2008-cluster-challenge-results/
Even the Mainframe is a Cloud differentiator
Operational efficiency is key to success!
300
250
Cloud/SaaS providers are profitable
through customer volumes, but the cost
profile may be prohibitive
Power and Cooling Costs
Server Mgt and Admin Costs
New Server Spending
200
150
Operational expense
is one of the core z
strengths
100
50
$0B
The technical challenges of CC play to z strength
The expectation of cloud consumers is significant
and providers need simple consumable ways to
meet technical challenges without driving up server
counts and the operational expense associated with
more servers.
Security
88.5%
Performance
88.1%
Availability
84.8%
Integration within-house IT
84.5%
Not enough ability to customize
83.3%
Worried cloud will cost more
81.1%
Mobility back in-house
80.3%
74.6%
Lack of major vendors
65%
70%
75%
80%
85%
90%
Infrastructure – this is so 1980’s…
Network
Edge/Web
Application
Storage
Data/Transaction
… We can do better now
Network, Edge, Web,
Application
Application, Data, Transaction
Shared Virtual Network
Shared Virtual Storage
The Energy Question…
IT Resources
Data Center
IT Load
55%
Utilisation
Processor
70%
45%
30%
80%
20%
Idle
Power distribution
and Cooling
27 W data center
Used
Power supply, memory,
fans, drives . . .
X1.7
16 W equiv IT power
x3
5 W equiv processor
x5
+1 W equiv. used ressource
• 1W of application computing requires 27W of power
• Insufficient Cooling and Insufficient Power are key data centre issues
• Energy costs consume approximately 10-15% of most IT budgets and rising*
*Source: Springboard research
Can Software make you Greener?
Reduce commuting with online
collaboration and increasing
work from home
Virtualize the infrastructure to
reduce amount of IT staff needed
to maintain servers
Reduce business travel by using
online collaboration
Shift workloads to underutilized
servers to reduce energy and
floor space needs
Reduce use of paper by enabling
business processes to use
eForms and images
Schedule execution of workload
to off-peak hours to use lower
cost energy
Optimize business processes to
reduce energy footprint and
costs of operations
Optimize applications to reduce
needed IT resources and energy
Turn the power down when work
(transactions) slows down
Compress your data to lower
storage and server needs
Optimize HVAC for hot spots to
reduce energy consumption
Consolidate and Virtualize to
eliminate floor space and
compute infrastructure
1400
2000
1800
1600
1400
1200
1000
800
600
400
200
0
1200
Sq M
1000
800
600
400
200
0
500
1000
2000
Kw
Dramatic savings in power, heat and space…
5000
# Servers
… up to 90% saving. With tradable carbon savings
x86 Sq M
z9 Sq M
x86 kW
z9 kW
IBM Dynamic Infrastructure Data Centre Strategy
 Virtualization
 Consolidation
 Business resiliency
and security
 Rapid service
delivery
Traditional
Data Centers
Web 2.0
Data Centers
 Software resiliency
 Pooled shared
environment
 New economics
New Enterprise
Data Centers
 Rapid service delivery
 Aligned with business
goals
IBM’s own smart transformation
IBM IT
Transformation
 From 2002 through 2007, IBM's own IT
investments delivered a cumulative benefit
yield of approximately $4 billion. For every
dollar invested, we saw a
$4 cumulative benefit.
1997
Today
CIOs
128
1
Host data centers
155
7
Web hosting centers
80
5
Network
31
1
15,000
4,700
Applications
Data Center
Efficiencies
Achieved
 Consolidation and virtualization - thousands of servers onto
approximately 30 IBM System z™ mainframes.
 Additional virtualization leveraging System p, System x and
storage across enterprise.
 Substantial savings being achieved in multiple dimensions: energy,
software and system management and support costs.
Project
Big Green
 The virtualized environment will use 80% less energy and 85%
less floor space.
 2X existing capacity, no increase in consumption or impact by
2010.
Cloud-enabled
on demand IT
delivery solution
 Self-service for 3,000 IBM researchers across 8 countries.
 Real time integration of information and business services.
Computing on Demand models
 Dedicated
 Custom Environment – choice of data center,
B
servers, storage, dedicated switch,
WAN/LAN High Availability Network
 Dedicated resources: 1-3 year commitment
 Leased by IBM Global Financing
 Variable
 Utilize CoD Center infrastructure
A
Customer B (night)
C
B
Customer C
Variable
C
C
VPN
Router
Central
Switch
 Virtual clusters dedicated to one client at a
time
 Automated network and server provisioning
 Reserve by the week; “Pay for use”
Customer A (day)
Dynamic
A
Customer D
Variable
D
D
E
Customer E (day)
F
Dynamic
Customer F (night)
 Dynamic
 Utilize CoD Center infrastructure
 Virtual clusters dedicated to one client at a
time
 Automated network and server provisioning
 Reserve by the hour; “Pay for use”
 Ideal for Intraday and post trading workloads
E
F

Compute Node

Storage Nodes + Storage HW

Management Node
IBM Computing on Demand Centres
Massive infrastructure of over 13,000 CPUs, 56 TB of storage
New York
London
Internet
5,500 CPU’s
Tokyo,
150 CPU’s
Dedicated,
Testdrive
7,800 CPU’s
International
Access
US,
Canada, Japan,
Europe
Dedicated
Future Locations ...
Dedicated, Variable, Dynamic, Testdrive
based on client needs
Evolution of Cloud Computing
2007
2000
1990
1980
Grid Computing
 Solving large problems
with parallel computing
 Made mainstream by
Globus Alliance
Utility Computing
 Offering computing
resources as a metered
service
 Introduced in late
1990s
Software as a Service
 Network-based
subscriptions to
applications
 Gained momentum in
2001
Cloud Computing
 Anytime, anywhere
access to IT
resources delivered
dynamically as a
service.
Why Cloud Computing…Different Perspectives
IT Analysts:
IT Customers:
- Flexible pricing / business
models
- On demand provisioning
- Unlimited scaling
- Secure infrastructure
- Flexible
Common Attributes of Clouds
Elastic scaling
Rapid provisioning
Advanced virtualization
Flexible pricing
- Variable pricing
- No long term
commitments
- Hosted, on dem.
provisioning
- Massive, elastic scaling
- Standard Internet
technology
- Abstracted infrastructure
- Service-oriented
Market:
- Pay by consumption
- Lower costs
- On demand provisioning
- Grid and SaaS
combination
- Massive scaling
- Efficient infrastructure
- Simple and easy
Source: IBM Corporate Strategy analysis of MI, PR, AR and VCG compilations
Financial Analysts:
- Utility pricing
- Hosted, a-a-s provisioning
- Parallel, on demand
processing
- Scalable
- Virtualized, efficient
infrastructure
- Flexible
Business Interest is shifting…
~10% of cloud spend is on servers; flat from ‘08 – ’12 with market growing at ~27% CAGR*
$ in billions
$400
$350
Near term, a large portion (~$50B) of new IT
spending will be on cloud computing
SMB - cloud
IT Growth
ME - cloud
$300
LE - cloud
$250
SMB - transition
In a decade, the majority
- transition
of IT ME
opportunity
will be in
the cloud
$200
LE - transition
$150
SMB - traditional
$100
ME - traditional
Traditional IT market will
LE - traditional
be compressed
$50
$0
2008
2011
2014
2017
Merrill Lynch has ‘guesstimated’ apps and platform cloud computing to be a
$95 billion annual opportunity within the next five years.
Sources: IBM Market Intelligence; “The Cloud Wars: $100+ Billion at Stake”, Merrill Lynch, May 2008
*IDC, October 2008
IBM Cloud Computing Centres
Dublin, Ireland
Seattle, WA
Seoul, S Korea
Beijing, China
San Jose, CA
US, East Coast
Middle
East
Bangalore, India
São Paulo, Brazil
Active
Planned
South Africa
Tokyo, Japan
Wuxi, China
Hanoi, Vietnam
Business benefits of Cloud
Agents
Support
Community
End Users
People
Services
Crowdsourcing
Retail Banking
Trade & SC Finance
Single Euro Payments
Mobile Banking
Front Office Optimization
Business
Services
Customer Care
Int. Risk Mgmt.
Industry Frameworks & Information Foundation
Experience
Management.
User Manager
CiC Design Space
Mashup Server
Service/Software
Catalogs
Open SOA Foundation (WS Framework, Service Bus)
Fulfillment
Assurance
Billing
Service Cloud Business & Operations Support
Dynamic Provisioning
Process & Policy Mgmt.
Problem & Change Mgmt.
B2B Partnerships
Application
Services
Platform
Services
Payments
Distributed Cloud Computing Services
Infrastructure
Services
Data Mgmt.
Virtualization
Provisioning
Workload Mgmt
SLA & Capacity
Security
Monitoring
A dynamic infrastructure is a journey…
…these interrelated initiatives can provide the
DNA needed to thrive in a smarter planet.
24
IBM business know-how
IBM Business Partners,
Systems Integrators (SIs)
and Independent software
vendors (ISVs)
Industry Innovation
Centers
Global Engineering
Solutions
Global Technology Services
(GTS),
Global Business
Services (GBS), and
Technical Services
IBM Global Financing
IBM Software Group
. . . our innovation can help enable your innovation.