Building Innovative Industry Solutions for System z

Smarter Computing: System z Analyst Summit

Building Innovative Industry Solutions
for System z

Jim Corgel, IBM General Manager, ISV and Developer Relations
Jacqueline D. Woods, Vice President, Global Industry and Solutions Marketing, STG
Luis H. Rodriguez, Director, IBM Innovation Centers

3/23/2011

1


We are entering a new era of computing

30 billion 300 million 15 petabytes
The number of RFID tags The number of smart The amount of information
in 2010, up from 1.3 billion meters to be deployed – being generated daily –
in 2004 sending and receiving data 80% unstructured -- with
– by 2015 44x more in the next
decade

80 exabytes 10 trillion
The storage capacity to be The computations per
shipped in 2015, up from second by 2015, up from
2.4 exabytes in 2005 10 million in 2005

2


Smarter Computing can free up needed capital to
invest in new infrastructure and Smarter Planet
solutions
Traditional approach
tm ent
in ves
r re-
tial fo
te n
Total IT cost

Po Smarter Computing

Reduce:
Server acquisition cost by up to 56%
Database costs by 68%
Floor space by up to 90%
Power consumption by 80%
Total cost per workload 55%
0
Capability and capacity
Server configurations are based on consolidation ratios derived from IBM internal studies.
Server configuration based on IBM internal studies. Calculations for Intel servers based on
published power ratings and industry standard rates. Results may vary based on customer
3 workload profiles/characteristics. Prices are in US currency, prices will vary by country.


Topics we will discuss

 Industry application focus

 New workloads and ROI

 Support for System z ecosystem

4


Technology is fueling innovation across industries

Neonatal Law Telecom Fraud
Care Enforcement Prevention

Retail Traffic Manufacturing Banking
Control

5


IBM zEnterprise System is uniquely positioned to
handle workloads on a smarter planet

Transactional  Lowest cost per unit of work
Workloads for large scale workloads

Business Analytics
 Hybrid Computing
Workloads
 Revolutionary cost reductions
for smaller scale workloads
Business Application
Workloads
 Data center simplification
Web and  Improve quality of service
Collaboration
Workloads

6


System z costs less industry by industry

Retail Financial Services
25% lower IT cost per retail store 48% less IT spend for deposits
59% less IT cost per square foot 65% less cost per teller transaction

Healthcare provider Utilities
24% lower IT cost per hospital bed 25% lower IT cost per mega watt hour
62% lower IT cost per patient day
Airlines
Healthcare payer 20% lower IT cost per airline passenger
46% lower IT cost per member
Automotive
Insurance 26% lower IT cost per new vehicle
40% lower IT cost per policy
56% lower IT cost per agent Oil and Gas
23% lower IT cost per barrel of oil
7 Source: Howard Rubin


Clients are leveraging System z to deliver new
innovations

Trenitalia Trustmark Garanti Technology

 Enables multi-channel  Extends key banking  Supports a growing
ticket and reservation applications to a browser- customer base while
capabilities across web, based environment delivering fast, reliable
mobile and ticketing banking services 24 hours
 Leverages original
agencies day
investment in reliable,
 Delivers travel options in business-tested applications  Uses central shared
real-time based upon the  Provides customers up-to- services to reduce costs
customer’s preferences the-minute account and enables investment in
information and handles new customer acquisition
 Reduces time-to-market by
most banking needs online.  Tripled IT capacity with the
enabling sales and
marketing staff to introduce  Enables high volume same number of systems
new offers and services transactions on a stable and management staff.
themselves reliable platform

8


Industry frameworks are the foundation of IBM’s
industry solutions
An Industry Framework is a solution platform that combines market leading technical
capabilities with pre-built solution accelerators, best practices, and implementation
patterns -- delivering speed flexibility and choice while reducing cost and risk!

Banking Industry Framework example: Industry Framework benefits:

Speed solution design
Industry-specific assets

Customer Core Banking Reduce risk
Care and Transformation Reusable implementation patterns and
Insight
support for industry standards

Flexibility
Choice of business applications, technology,
and services from IBM and IBM Business
Payments
Partners
Integrated
and
Risk Management
Securities Return on investments (ROI)
Build a differentiated industry capability and
business value – one project at a time
9


System z is a key capability within IBM’s Industry
Frameworks
Banking Industry Framework example
The core banking transformation domain
allows you to modernize and renovate the
legacy applications that support core banking
functions while aligning with the changing
needs of the business

Customer
The payments and securities domain helps
Core Banking
Care and Transformation
you progressively transform your payments
Insight operations to become more flexible and
efficient

The integrated risk management domain
supports taking a holistic approach to
managing financial risk, financial crimes,
Payments
operational and IT risk, and compliance
Integrated
and
Risk Management
Securities
The customer care and insight domain helps
you build a foundation for creating a single
view of the customer and enabling more
effective and efficient sales and service

10


Frameworks
Insurance Industry Framework example
The core insurance transformation domain
supports solutions that will transform insurers'
core capabilities to increase efficiency and
effectiveness of business and drive intelligent
growth

Customer The distribution domain Supports solutions
Core Insurance
Care and for insured / agents -driven web portal that
Transformation
Insight
enables greater sales effectiveness and
supporting better multi-channel coordination

The integrated risk management domain
Supports solutions for meeting regulatory
compliance needs as well as reducing risks –
cost effectively
Integrated
Distribution
Risk Management
The customer care and insight domain
supports solutions to enable a 360 degree
view of the customer & predicting customer
behavior patterns to drive profitability and
wallet share

11


Frameworks
Travel and Transportation
Industry Framework example The reservation system modernization
domain allows you align with current standards
and deliver new services.

Safety, Reservation The multi-channel sales and service domain
Security and System
Surveillance Modernization helps you provide a seamless passenger
experience across all channels and
touchpoints

The asset optimization domain helps you
Operations Multi-channel manage capital assets across their revenue
Control Sales and
Systems Service
producing lifecycle

The operations control systems domain
helps you build a foundation for creating a
Asset Optimization single view of the customer and enabling more
effective and efficient sales and service

The reservation system modernization
domain allows you to improve operational
effectiveness and reduce environmental
12 impact


1300+ ISVs are deploying applications on System z
— and the number of applications on System z is growing

1,200 New & Upgraded Applications on System z in 2010
 More than 150 new applications enabled
•
 120+ new ISV partners on the platform

7,000+ applications supported on z/OS & Linux for System z
 Over 4,000 z/OS applications
– 2,500+ on z/OS 1.9 and later
 More than 3,000 Linux on System z applications

13


Partners show results on System z
Solution: WebFOCUS
A comprehensive, cross-industry platform that provides business
intelligence, performance management, data integrity & advanced
analytics

Solution: Exceed
Comprehensive software for the property and casualty/general
insurance industry. Exceed helps large insurers reduce costs, improve
service and react quickly to market changes.

Solution:Cúram
A public sector / government solution that encompasses and integrates
human services, labor, health, social security, and military & veterans
agencies

Solution: OPS Center
A Homeland Security / Emergency Response solution for managing
collaborative processes such as organizing, training, monitoring and
information sharing, among diverse organizations.

14


Developers are collaborating around System z

developerWorks counted 16,000
unique visitors per month across
communities with System z-related
artifacts in 2010
• IBM’s premier information and
collaboration site for Linux
• Over 200+ technical resources on
system z - technical articles, wikis,
blogs and more
• 4,600 downloads, an increase of
more than 20% from previous year

First My developerWorks
http://www.ibm.com/developerworks/ App for iPhone launched

15


“Chiphopper” helps developers port their solutions
to Linux on System z
IBM Systems Application Advantage for Linux
From Port To Port To
 No charge access to remote IBM
Systems with Linux - Red Hat & Suse Application
Application
Application

 Technical assistance during the port
Linux Linux Linux
 18 months System Assurance
Statement from IBM

 Ready for IBM Systems with Linux
mark for marketing x86 & x86-64
Systems
IBM Power Systems IBM System z

 Chiphopper has enabled 278 ISVs to create or update 1330
applications for IBM Systems with Linux
 Chiphopper assisted 32 ISV’s with 105 applications in 2010
 42 for POWER Systems
 63 for System z
www.ibm.com/isv/go/chiphopper
16


New programs are helping IBM Partners
accelerate industry and cloud transformation
IBM Industry Solutions
Specialty
ISVs and Innovation Partners

IBM Software Value Plus
IBM Software Value Plus Industry Authorization
Resellers and Systems Integrators
Security Authorization
Resellers and Systems Integrators
“The combined strength of
Avnet and IBM's focus on
IBM Cloud Computing industry-specific solutions
Specialty gives our partners a distinct
Five types of cloud partners
advantage to better meet
customer requirements
IBM Cloud Computing while accelerating their
Authorization success in high-growth
Resellers
markets.”
Tony Madden
IBM Cloud Service Avnet Technology Solutions
Provider Platform
Communications Service Providers
17


Ensuring the future smarter planet workforce
The IBM Academic Initiative helps educate millions of students

 814 schools in 61 countries participate in the System z Academic Initiative
 “Master the Mainframe” contest has reached 33,000 students, 4,000 schools, 17 countries
 IBM System z Mastery Test is offered at no cost to students globally in 2010
 Access to IBM Enterprise System and resources available globally for universities, colleges
 “Watson Watch” parties held in 58 U.S. universities during Jeopardy! challenge

www.ibm.com/academicinitiative

18


Introducing SystemzJobs.com

The IBM System z Job Board at SystemzJobs.com is a new resource to connect IBM
System z clients, partners, and businesses with students learning the mainframe and
professionals seeking System z job opportunities.

Sponsored by the IBM Academic Initiative and System z
 Free, secure, and easy to use
 Specialized audience of mainframe educated students and experienced professionals
 Global pool of mainframe talent
http://www.ibm.com/university/systemz

19


Our 39 worldwide IBM Innovation Centers help
Business Partners, IT professionals, and Academia
expand their network and expertise
Where innovation happens
Skills Technical
Development Enablement
 Education on key IBM  Support for building,
capabilities porting, and testing
 Access to IBM hardware applications
 Industry Framework
Validations

Collaboration Go to Market

 Entrepreneur / Venture Firm  Support for expanding to
IIC in Ho Chi Minh City, Vietnam networking events new countries
 Connect to Win events  Partner demand generation
 Academia / Partner seminars
20 networking events


Trademarks and disclaimers
Intel, Intel logo, Intel Inside, Intel Inside logo, Intel Centrino, Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, 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, Windows NT, and the Windows logo are trademarks of Microsoft Corporation in the United States, other
countries, or both. IT Infrastructure Library is a registered trademark of the Central Computer and Telecommunications Agency which is now part of the Office of Government Commerce. ITIL is a registered trademark, and a registered
community trademark of the Office of Government Commerce, and is registered in the U.S. Patent and Trademark Office. UNIX is a registered trademark of The Open Group 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. Other company, product, or service names may be trademarks or service marks of others. Information is provided "AS IS" without warranty of any
kind.

The customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer.

Information concerning non-IBM products was obtained from a supplier of these products, published announcement material, or other publicly available sources and does not constitute an endorsement of such products by IBM. Sources for
non-IBM list prices and performance numbers are taken from publicly available information, including vendor announcements and vendor worldwide homepages. IBM has not tested these products and cannot confirm the accuracy of
performance, capability, or any other claims related to non-IBM products. Questions on the capability of non-IBM products should be addressed to the supplier of those products.

All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.

Some information addresses anticipated future capabilities. Such information is not intended as a definitive statement of a commitment to specific levels of performance, function or delivery schedules with respect to any future products. Such
commitments are only made in IBM product announcements. The information is presented here to communicate IBM's current investment and development activities as a good faith effort to help with our customers' future planning.

Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. 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. Therefore, no assurance can be given that an individual user will achieve throughput or performance
improvements equivalent to the ratios stated here.

Prices are suggested U.S. list prices and are subject to change without notice. Starting price may not include a hard drive, operating system or other features. Contact your IBM representative or Business Partner for the most current pricing in
your geography.

Photographs shown may be engineering prototypes. Changes may be incorporated in production models.

© IBM Corporation 2011. All rights reserved.
References in this document to IBM products or services do not imply that IBM intends to make them available in every country.

Trademarks of International Business Machines Corporation in the United States, other countries, or both can be found on the World Wide Web at http://www.ibm.com/legal/copytrade.shtml.

22 © 2011 International Business Machines Corporation
22

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