IBM LinuxCon Presentation Aug2010: What does Linux mean to the CIO in 2010?

Cross-IBM Linux Strategy

Efficiency? Lower Cost? Innovation?
What does Linux mean to the CIO in 2010?

LinuxCon North America - August 11, 2010
Jean Staten Healy
Director, Worldwide Linux Strategy
IBM

© 2010 IBM Corporation

About a decade ago, Linux became a question in the minds of CIOs

The Internet boom was a sign of changing
priorities for information technology

Connectivity was changing everything, and
the speed of innovation rapidly increased

Open source software, particularly Linux,
changed the ‘rules of the game’

The trajectory of Linux became an
important question for the CIO (and IBM)
Source: http://images.businessweek.com/ss/07/02/0209_guerrilla/source/9.htm

2 © 2010 IBM Corporation

Over time, Linux earned its place in the data center

Linux continues to
Next Generation
enable new ways of Workloads
doing business
Business-Critical • Leadership focus
Workloads
• Accelerated
Application and • Competitive focus adoption
Data Serving
• Extensive use for • Workloads drive
Edge and Web • Commercial DB, BI, ERP,
Infrastructure focus platform decision
CRM
• Community focus
• Open elements of • Cloud / flexible
• Cornerstone of IT allocation models
• Internet enabled IT industry join strategies
community
• Fully established
• Worldwide • Steady adoption
• Enterprise Linux for business-
Volunteers through downturn
adoption grows critical use

1991 – 2004 2005 – 2006 2007 – 2009 2010+


A decade of Linux at IBM
Formation of the Linux Division and the Linux Technology Center

Prior to 1999, the role of Linux in the enterprise was emerging
 Universities, research institutions evaluate parallel Linux clusters, seismic/life sciences
 Role of Linux in enterprise data center, commercial marketplace still much in question
 IBM Corporate study on role of Linux as high volume platform for internet applications,
application development, and early supercomputing workloads

Feb/Mar 1999
Established alliances with primary distributions

Jan 20, 2000 - IBM announces comprehensive Linux initiative
Embrace Linux across all IBM product lines; STG, SWG, GTS
Work in partnership with Linux developer community
Establish an IBM-wide organization to coordinate Linux activities across company

IBM’s $1B Linux bet created momentum for Linux in the enterprise data center…

Collaboration and innovation with Linux by IBM

IBM supports and is active in the leading
communities that comprise the Linux ecosystem

Make Linux better
OIN
Enable IBM products
Extend to new areas
Partner w/ customers
Linux as dev tool
Make Linux better
Enable IBM products
Extend to new areas

Make Linux better Partner w/ customers

Enable IBM products
Extend to new areas
Make Linux better
Enable IBM products
IBM Linux Technology Center adapts dev priorities
Make Linux better as Linux matures & IBM customer’s needs change

Virtualization, Consolidation, and Cloud: CIOs simplify and optimize

 Flexibly allocate consolidated resources to
optimize consumption
– Match the workload to the platform capabilities
– Linux runs on all IBM-supported hypervisors
– Cross-platform IBM Software support enables
flexibility in platform deployment decisions

 Extend the value of simplification
– IBM Systems Director can help simplify management
of the platform interface
– VMcontrol can enable simplification through
heterogeneous virtualization management
– Linux can simplify OS skill requirements

 Operating system of the cloud
– Utility computing matches computing needs with the
amount of resources purchased
– Developer skills drive deployment decisions
– Availability of Linux skills continues to grow
http://ibm.com/software/success/cssdb.nsf/CS/ARBN-7Z6KV9
http://ibm.com/software/success/cssdb.nsf/CS/DLAS-7YTS8V
http://ibm.com/press/us/en/pressrelease/26642.wss
http://ibm.com/press/us/en/pressrelease/24482.wss

Linux for data-intensive workloads: Improving performance for CIOs

 Linux has steadily increased as the operating
system for data-intensive workloads
– Linux is well suited and proven for HPC
– Business intelligence and analytics have a strong
affinity with HPC

 Constant innovation in high-throughput and
high-predictability drives Linux leadership
– IBM actively drives Linux performance
– Using Linux for real-time applications enables reuse
of general purpose skill sets

 Data-intensive workloads span multiple tiers of
the datacenter
– SoFS, SoNAS are built on Linux and Samba
– WebSphere Real-Time complements Real-Time Linux
distributions for deterministic applications
– WebSphere MQ LLM enables low-latency messaging http://www.ncsa.illinois.edu/News/10/0322Linuxselected.html
http://ibm.com/software/success/cssdb.nsf/CS/STRD-7XUFD3
http://www-03.ibm.com/press/us/en/pressrelease/21033.wss
http://ibm.com/software/success/cssdb.nsf/CS/STRD-7J3DG2


Linux on the Desktop: Providing choice, reducing customer costs

 The ability to work from multiple devices is
reshaping the workplace by letting workers
define their own productive spaces

 Linux enables reduced cost end-user work
environment choices
– Choice enables cost-saving opportunities
– Linux-based alternatives to Microsoft can help save on
desktop and server licensing
– Consistency across platforms enables a range of Linux
adoption scenarios

 Virtual Linux desktop solutions can provide
cost savings beyond licenses
– Reduce desk-side and help desk support costs
– Instant client updates, rapid problem resolution
– Simplified application deployment and backup
– Significantly reduced threat of data loss through
component failure or theft http://www-01.ibm.com/software/success/cssdb.nsf/CS/CCLE-7ZQRE3
http://www.lotusonredhat.com/RH_CSS_CaseStudy.pdf


Linux for the Midmarket: Reducing complexity, positioning for growth

 Appliances can help small and medium sized
clients manage applications like devices
– Linux appliances can help reduce the cost of
deploying, managing, and supporting applications
– IBM Lotus Foundations, built upon Linux, provides
functionality that does not require a distinct IT staff

 Medium-sized business need to position
themselves for growth
– Moving from “Get it going” to “Keep it growing”
…before it’s too late
– Enterprise-quality offerings built on Linux can enable
scalability without sacrificing flexibility

 Public cloud deployment models can ease the
burden on critical IT resources
– Enable skilled (and limited) IT resources to focus on RealConnections.nl
value-add, not managing infrastructure
– Scale up or down according to need

http://www-01.ibm.com/software/success/cssdb.nsf/CS/CCLE-7TC2FZ


Linux marketplace momentum continues…
2008-2013 CAGRs

 WW Software CAGRs led by
– Application software: 27.4%
• Includes ERP, CRM, Supply chain
management, manufacturing
applications, and engineering
application software
– Application dev/deploy sfwr: 20.5%
• Includes database, middleware, dev
tools, dev life-cycle products, app
deployment software, application
serving, transaction/middleware & data
analysis software
– Systems infrastructure sfwr: 21.3%
• Includes Systems mgmt, virtualization
software, storage, security
 WW Linux and open source-related services
CAGR: 17.6%
– Systems integration, software deployment &
support, outsourcing, education, training
and consulting

10 Source: IDC, “Linux Ecosystem Update" October 2009 © 2010 IBM Corporation

The CIO’s situation is a lot different from the past….or is it?

The global financial crisis changed business
priorities – and the IT that supports it

The business landscape is evolving, and IT
must evolve with it

Technology has enabled solutions that
weren't feasible in the last downturn

Fast-developing communities drive
constant technology change


The role of the CIO is evolving…
IBM Global Chief Information Officer Study 2009
• Interviewed over 2,500 CIOs worldwide
• Various size organizations in 78 countries and 19 industries
• Today’s CIOs spend an impressive 55% of their time on
activities that spur innovation, including:
• Buy-in for innovative plans, implementing new
technologies, managing non-technology bus. issues
• Remaining 45% is spent on essential, more traditional CIO
tasks related to managing on-going technology
environment, including:
• Reducing IT costs, mitigating enterprise risks, and
leveraging automation to lower costs

Successful CIOs blend three pairs of roles:

• An Insightful Visionary and an Able
Pragmatist
• A Savvy Value Creator and a Relentless
Cost Cutter
• A Collaborative Business Leader and an
Inspiring IT Manager

12 Source: http://www-935.ibm.com/services/us/cio/ © 2010 IBM Corporation

The role of Linux is evolving…

Linux continues to offer tremendous value
•Low acquisition costs/overall lower TCO
•Flexibility/extensive hardware platform choice
•ISV Support
•Security
•Skill set transfer
•Vendor diversity

However, many customers & ISVs are now
choosing Linux for strategic reasons first!

“Linux has become a
strategic data center
operating system (OS)
choice, not only for cost
savings purposes.”

13 Source: Gartner, User Survey Analysis, April 2009 © 2010 IBM Corporation

The role of information technology is evolving…

INSTRUMENTED
Measure, sense and see the exact condition
of everything

INTERCONNECTED
People, systems and objects communicate
and interact in entirely new ways

INTELLIGENT
Respond to changes quickly and accurately,
with better results


The progress to date is inspiring…

Smarter cities like Dubuque, which
will be enabled by a Linux-based
cloud and analytics from IBM

Smarter medicine: Astellas
Pharma reduces drug discovery
with Linux clusters from System x

Smarter oil and gas exploration
with Shell, simulating more and
speculating less

Smarter traffic: Management of Roadway
Police of St. Petersburg process more
data with Linux and System z
http://www-01.ibm.com/software/success/cssdb.nsf/CS/STRD-82HFBP
http://www-01.ibm.com/software/success/cssdb.nsf/CS/JSTS-7NRRHY

Yet the reality can seem daunting…

Many system integrations are required to
make “anything” smarter

Much computing power is needed to
discover “new treatments for cancer”

Massive amounts of data from “smart
power meters” must be read per hour

Very large numbers of images must be
captured, stored, managed and linked to
“billing and collection systems” in real time


Especially in light of tomorrow’s challenges

41% of data center managers will not have enough
power for their datacenters in one to two years

Processor power doubles every 18 months,

but 85% of it is idle

80% of digital data is unstructured, requiring
more effort to form useful conclusions


The role of Linux in the Cloud at IBM…

 Workload optimization
– Match the workload to the capability of the infrastructure

 Integrated service management
– Reduce operational costs, gain efficiency, enhance security

 Deployment choices
– Choose the model that makes sense: public, hybrid, or private

 Dongying Municipal Government of China
– Enabling economic transformation with a Linux-based private cloud


IBM provides complete Linux solutions: top-to-bottom, end-to-end

IBM Services, Support, and Financing

Information WebSphere® Tivoli® Lotus® Rational®
Management

IBM Systems Software

IBM System x IBM Power Systems IBM System z

IBM Systems Storage


2011 and beyond: Linux helps IBM continue to innovate
What is the “Watson” Project?
 IBM will compete in a human vs.
machine contest on “Jeopardy”
quiz show with Linux on Power
• “Question Answering” (QA) is
technology’s next grand challenge
• IBM is building a computing system
codenamed “Watson” that can
understand complex questions and
answer with enough precision and
speed to compete with humans

 This is more difficult than chess playing (Deep Blue)
 The game covers a broad range of topics: history, literature, politics, science, etc.
 It requires natural language understanding, analyzing subtle meaning, irony, riddles,
and other complexities at which humans excel and computers traditionally do not.
(For example, Washington: a President or a state?)
 It requires massively parallel analytical capabilities

Overview: http://www.youtube.com/watch?v=FC3IryWr4c8

What does Linux mean to the CIO today and tomorrow?

Efficiency matters
Linux
Provides tremendous value
Lower cost matters Has become strategic
Will continue to evolve to meet
Innovation matters the future

© Steve Ginn
Used with permission

www.ibm.com/linux

Trademarks and Presentation Notes/Disclaimers

 The following are trademarks or registered trademarks of the International Business Machines Corporation in the United States and/or other
countries. For a complete list of IBM Trademarks, see www.ibm.com/legal/copytrade.shtml: eServer, System p, System z, System x, System p5,
System i5, AIX, BladeCenter
 The following are trademarks or registered trademarks of other companies:
 Java and all Java based trademarks and logos are trademarks of Sun Microsystems, Inc., in the United States and other countries or both
 Microsoft, Windows,Windows NT and the Windows logo are registered trademarks of Microsoft Corporation in the United States, other countries, or
both.
 Linux is a trademark of Linus Torvalds in the United States, other countries, or both.
 Linux penguin image courtesy of Larry Ewing (lewing@isc.tamu.edu) and The GIMP
 Other company, product, or service names may be trademarks or service marks of others.
 Any statements about support or other commitments may be changed or cancelled at any time without notice. All statements regarding IBM's future
direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only Information is provided “AS IS”
without warranty of any kind.
 This publication was produced in the United States. IBM may not offer the products, services or features discussed in this document in other
countries, and the information may be subject to change without notice. Consult your local IBM business contact for information on the product or
services available in your area.
 Information about non-IBM products is obtained from the manufacturers of those products or their published announcements. IBM has not tested
those products and cannot confirm the performance, compatibility, or any other claims related to non-IBM products. Questions on the capabilities of
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 The information could include technical inaccuracies or typographical errors. Changes are periodically made to the information herein; these
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QUESTIONS?


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24 * All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represents goals and objectives only. © 2010 IBM Corporation

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