Managing TCO with SOA: Platform Makes the Difference!

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

2. Total Cost of Ownership: a significant challenge Spending (US$B) Installed Base (M Units) $300 50 Power and cooling costs Server mgmt and admin costs New server spending 45 $250 Opportunity to lower operational costs and improve TCO 40 35 $200 30 $150 25 20 $100 15 10 $50 5 $0 0 1998 1997 2003 2001 2005 2007 2008 2009 2010 1996 2000 1999 2004 2006 2002 Source: IDC, Virtualization 2.0: The Next Phase in Customer Adoption, Doc #204904, Dec 2006

3. 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 WebSphere 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 675M 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.

4. Deploying on System z provides differentiated valueEnabling intelligent IT that works for your business The New IBM System z10 Enterprise Class • Faster: Processors, memory, network • Consolidation of hundreds of applications • 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 • Respond automatically to demand from CICS, IMS, DB2, WebSphere, … • Deploy WebSphere workloads in minutes The power of many . . . . . . the simplicity of ONE 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.

5. Incremental Benefit Paths for System z Workloads  Accuracy/ Control / Reliability Create Dynamic Adaptability • Information integration • Data and app governance • Security hub • Composite apps • Business mash-up • SOA hub  Reliability & Control Extend End-to-End Adapt Dynamically Foundational Transform  Access to Function & Information on System z  Performance / Manageability • Creating new Web apps • Consolidate apps and data • Web 2.0 • Data warehousing • Exposing traditional apps & data for quick and easy access: Service enablement  Performance, cost management, responsiveness

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

7. Business Services Interaction Services Process Services Information Services Management Services DevelopmentServices Enterprise Service Bus Business App Services Access Services Partner Services Apps & Info Assets Infrastructure Services Reuse Entry Point … … Service enabling existing applications DB2 z/OS IMS DB CICS Transaction Server V3.2 for z/OS Create flexible components from existing applications to use in new applications • Extend existing applications to support integrated business processes via standard APIs and protocols • Management of large runtime configurations via modern user interfaces CICS Transaction Server IMS Transaction Manager IMS 10 for z/OS Reuse your existing and new IT investment for SOA • Ease new application development and management • Lower operating costs through z/OS and zAAP engine • New security capabilities for greater control • Improved auditing and accountability DB2 9 for z/OS optimized for SOA Business insight and flexibility with pureXML • WebSphere integration for trusted applications and web serving • Security & SOA governance capabilities

8. WebSphere Application Server V6.1 for z/OS - Powerful combination with new z10 IBM System z10 • 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 V6.1 (Java5) performance on z10 to be 1.5 times faster WebSphere Application Server (WAS) for z/OS V6.1 Differentiation • JinsightLive 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 (zMF)

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

10. When to Deploy New Services on System z Combine the availability, scalability and security of System z with the industry leading Application Server for: • Integration with existing mainframe assets • High performance access to customer information • Server consolidation and simplification • True dynamic scalability for unpredictable workloads • Zero downtime for services that drive the business • Exploitation of Java/J2EE programming skills • 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.

11. University of Florida Industry: Education URL:http://www.ufl.edu/ Easy linkage between time-proven core business processes and new business models resulting in lower TCO “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 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 Web-based UF Student Records System

12. Connectivity Entry Point: Federated ESB – integrated framework to meet your needs WebSphere Enterprise Service Bus 6.1 for z/OS Leverage existing applications on current SOA environment for better reuse • Platform-based ESB built on WebSphere Application Server • Leadership in SOA standards for service composition, mediation and hosting • Enhanced ease of use WebSphere 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 WebSphere DataPower Integration Appliance XI50 3.6.1 Purpose-built hardware for simplified deployment and hardened security • Simplified configuration • Improved WebSphere Service Registry and Repository support • Guaranteed critical message delivery • Integration with DB2 V9 pureXML By 2009, Analysts state multiple ESBs will be required to grow your SOA!

13. SOA Connectivity: Enhancing Our Portfolio Accelerate SOA integration • WebSphere • Adapters 6.1 Accelerate time to value, and simplify the integration of applications in a SOA • WebSphere Adapters now available for WebSphere Application Server zOS 6.1 • Improve connectivity for application reuse with new Adapter Nodes for WebSphere Message Broker V6.1 CICS Transaction Gateway 7.1 Secure, scalable and flexible SOA access to CICS applications • Leverages CICS TS V3.2 - the flagship SOA release of CICS TS • Support your enterprise wide management with enhanced systems monitoring • WebSphere Transformation Extender V8.2 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 ePayments

14. 15 Years Web 2.0 Java Message Service (JMS) Multi-Language Message Service MQ Interface IBM WebSphere MQ V7 Publish Subscribe Web 2.0 AJAX Applications and Data HTTP GET WebSphere MQ V7 HTTP POST HTTP DELETE IBM WebSphere MQ V7 • WebSphere MQ V7 • 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 WebSphere MQ clients for increased throughput resilience and availability • WebSphere MQ V7 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%* * Preliminary results observed on pre-release level code. For the latest performance information please click on Performance Reports at www.ibm.com/webspheremq/support

15. When to use System z as the Hub for your ESB ESB requirements System z benefits for ESBs • Virtualization • High resource utilization • Massive consolidation and simplification • Enterprise workload management • Workload isolation and security • 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 co-locating with z/OS data • Customer PoC example - Average CPU time reduced by over77% • Efficient growth • Pay for what you use, add capacity and applications quickly and automatically • Integration: • Complex transactions and roll back • Monitor end-to-end transactions in complex configurations • Allocate resources according to business goals • Provide single point of control • Meet security & regulatory requirements • Business criticality: • QoS & 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

16. Ball State University Industry: Education URL:http://cms.bsu.edu/ Ball State University bridges disparate systems and solves key administrative issue with IBM SOA solution. “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 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

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

18. Existing System z CustomersStreamline and Automate Existing Processes Customer Presales Activation and Fulfillment Account Application 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

19. 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.” Bruce Silver, Bruce Silver Associates – The 2006 BPMS Report An SOA environment that provides: • Process Automation & Execution • Human Task Management • Application Integration • Built on SOA

20. SOA Process: Enhancing Our PortfolioA discipline enhanced by flexible architecture • WebSphere Integration Developer V6.1 Eclipse-based tool for building SOA-based BPM and integration solutions • Enables rapid assembly of business solutions by wiring reusable service components • WebSphere Business Modeler V6.1 Visualize, understand, and document your business processes • Document processes to better understand your business • Discover potential areas for process improvement and latent value in processes • WebSphere Business Monitor V6.1 Comprehensive business activity monitoring of your business performance • End-to-end visibility of business performance through dashboards • Advanced analytics for decision making • WebSphere Process Server for z/OS V6.1 Accelerate time to value, and simplify the integration of applications in a SOA • Improve connectivity for application reuse • WebSphere Adapters now available on z/OS 6.1

21. Business Services Interaction Services Process Services Information Services Management Services DevelopmentServices Enterprise Service Bus Business App Services Access Services Partner Services Apps & Info Assets Infrastructure Services WebSphere Business Services FabricEnd-to-End Platform for Industry SOA Solutions WebSphere Business Service Fabric V6.1 End-to-end SOA platform for composite business services • Extends WebSphere Process Server for z/OS and WebSphere Integration Developer WebSphere Business Services Fabric

22. When to Use System z for Process Serving Personal Loan Request (New WASz Application) • Efficiency • Integration • Automation • Reliability • Workload Management • Security • Availability • Performance System z–The choreographer for an SOA DB2 Get Customer Information (Existing CICS application) Internet Credit Rating (External Bureau) Approval (Human Task) Not Approved Approved Additional Services (CRM System) Reply (Human or Electronic)

23. Customer Example: Telecon Industry: 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 WebSphere 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

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

25. Process Integrity Takes SOA to the Next LevelSupporting 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

26. Process Integrity for System z • WebSphere MQ for z/OS, WebSphere Message Broker for z/OS, WAS for z/OS, WESB for z/OS, WebSphere Process Server for z/OS, and WebSphere 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 DB2 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

27. Operational silos Multiple tiers Inflexible with increasing cost Growing complexity Storage SAN System z Mainframe System p Data Transaction Data Backup Data Reference Data BladeCenter Java Linux Grid Enterprise Trust Authority Transaction Servers Secure Database Vault Utility Infrastructure Application Servers Deep Computing Application Servers Web Servers E-Commerce Applications Web Services Business Data Utility Consolidation (eg. File/Print server) UNIX Collaboration Servers File/Print Servers SSL Appliances Terminal Serving Mainframe PCs Web Servers Database Servers SSL Appliances Security & Directory Servers Routers Switches Application Servers UNIX PCs Firewall Servers DNS Servers Caching Appliances File/Print Servers LAN Servers UI Data Infrastructure Simplification … … a Critical Success Factor for SOA Today’s Environment, Simplified • 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

28. 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

29. Questions & Answers