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Recent PVU and Sub-capacity (Virtualization) Announcements Overview

Recent PVU and Sub-capacity (Virtualization) Announcements Overview. April, 2009. Agenda. Background PVU announcement New Intel Xeon processor technology (Nehalem) Sub-capacity (virtualization) licensing announcement Sub-capacity offering enhancements Letter to customers

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Recent PVU and Sub-capacity (Virtualization) Announcements Overview

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  1. Recent PVU and Sub-capacity (Virtualization) Announcements Overview April, 2009

  2. Agenda • Background • PVU announcement • New Intel Xeon processor technology (Nehalem) • Sub-capacity (virtualization) licensing announcement • Sub-capacity offering enhancements • Letter to customers • Competitive software licensing update

  3. Background: Today’s Server Market Environment • x86 Multi-core Processor Technology moves from dual to quad-core • Chip vendors adding more cores on one chip/socket (quad-core chips) • Most x86 servers will have 8-cores in 2009 (2 chips/sockets x quad-core chips) • Intel x86 per core performance increasing significantly beginning in April 2009 • Customers adoption of Server Virtualization growing rapidly • Desire to improve traditionally low server utilization (5-10% for x86, 15-20% for RISC) • Smart technology dynamically allocates processor resources to software • Customers routinely refresh server hardware every 3-4 years Customers can use virtualization to restrict capacity so they pay for only what need

  4. By season: must buy them all • By game: purchase only games you want Why license to the core? • IBM has consistently defined a processor as a core • Many other vendors changed their definition following the introduction of multi-core x86 chips in 2005 • Why license to the core instead of some other HW metric? • More granular and flexible, allowing customers to minimize their SW costs • Aligns physical licensing with the virtual CPUs within virtualization • An analogy: would you prefer to always buy sports tickets by individual game or for the whole season or event?

  5. Clarify the word “Processor” in your vocabulary • “Processor” has many meanings in the industry today • Can be core, chip or socket • This leads to a great deal of confusion • You must ask how many cores are on the server when “processor” is used • IBM SW defines processor as a core • We only accept that definition • We do not use another vendor’s or a customer’s own definition • Since it is confusing, don’t use the word “processor” by itself • Instead, use the term “core” or “processor core” • Or, use the term “chip” or “processor chip” if that is what is being referred to The key question is: how many cores are on the server?

  6. PVU announcement: Intel’s new “Nehalem” chip • What is Intel’s new “Nehalem” processor chip? • Next generation Intel Xeon multi-core processor chips for servers • Will become the standard Intel processor: • Available now in Dual- and Quad-core versions • Hexa and Octi-core versions expected in 2010-11 • Announced by Intel on March 30, 2009 • Uses the Xeon brand name, just like previous Intel x86 server chips • Available now for 1 and 2 socket servers • Expected to be available on 4 socket servers in 2010 • Significant performance improvements • Fewer processor cores required for equivalent workload • PVU licensing: requires 70 PVUs per core

  7. Likely 2009 Server Replacement Scenario Example for a 2 socket server: Performance per core PVUs per core Price / Performance Price per unit of throughput cut inhalf! 40% higher PVUs per core Almost 200%more performanceper core “Nehalem” Old Xeon Dual-core (1H06) Old Xeon Dual-core (1H06) New Xeon Quad-core (1H09) New Xeon Quad-core (1H09) 50 PVUs per core Old Xeon 70 PVUs per core New Xeon At 70 PVUs per core, significant P/P improvement

  8. Processor Model Numbers used to determine PVU requirement • 70 PVUs per core for Intel Xeon Nehalem processor technology • 35xx series (3500 to 3599) • 55xx series (5500 to 5599) • 50 PVUs per core for previous generation Intel Xeon • 34xx series and prior (3000 to 3499) • 54xx series and prior (5000 to 5499) • All existing AMD Opteron multi-core processor technologies • Refer to the PVU table for model number requirements (excerpt below) • See final page for links to complete PVU table, and Processor Model Number Discovery Guide

  9. Significant performance improvements...fewer cores required • Software value for software products priced on Processor Value Units (PVUs) is based on processor capacity available • The price scales to the software value received • New Intel processor chips pack more cores per chip and more processing capacity per core • Replacing old for new 2 socket servers will double cores • With capacity planning, many customers will see a reduction in the number of PVU software licenses required on Intel Nehalem • Customers can use IBM sub-capacity (Virtualization) licensing to limit processing capacity available • Customers require fewer cores to run a constant workload Software Value is Based on Processor Capacity Available

  10. Sub-capacity Announcement: Enhancements • Nearly all PVU-based products now eligible for sub-capacity licensing • Only those that won’t run in a virtual machine are ineligible • Elimination of two part number structure (full cap vs. sub-cap) • The existing full-cap part numbers will now apply to both full-cap and sub-cap • Customers’ existing PVU license entitlements can be used for full-cap or sub-cap. • Customers’ S&S entitlements will be converted at next S&S renewal after July 1 • To use these products in sub-capacity mode, customer must still agree to the sub-cap terms per the Sub-Capacity Attachment to the PA Agreement • Benefits of this change: • Offers a complete IBM SW PVU portfolio for customers who are virtualizing • Simplifies license ordering/tracking for both customers and IBM • Eliminates the need for conversions of existing licenses when deploying sub-capacity environment

  11. Sub-capacity Announcement: Enhancements • Expansion of eligible virtualization technologies • Citrix Xen Server virtualization • Red Hat Enterprise Linux (Xen) virtualization • Microsoft Hyper-V virtualization • VMware Server 2.0 • Operating System commands and BIOS settings • Above technologies will be supported in ILMT during 2H 2010 • Re-confirm ILMT support during 3Q 2009 for VMware • Re-confirm eligibility & ILMT support during 3Q 2009 for PowerVM • Benefits of this change: • Allows customers to expand the use of sub-capacity licensing to more workloads • Increased flexibility to use the most appropriate virtualization technology • IBM has the best licensing support for virtualization in the industry!

  12. Sub-Capacity Licensing Summary • Sub-capacity Licensing Requirements • Agree to the terms of the Sub-capacity Attachment • Use Eligible Sub-capacity Products (nearly all now eligible) • Use Eligible Virtualization Technologies (see below) • Use the IBM License Metric Tool (ILMT) and maintain Audit Reports • Eligible Virtualization Technologies • IBM PowerVM (AIX / i5os): LPAR, DLPAR, Shared Proc Pools, Micro-Partitioning • IBM System z (with Linux): LPAR, zVM • Sun / Fujitsu (Solaris): Dynamic System Domains, Containers/Zones inside DSD • HP Integrity (HPUX): nPar, vPar & Integrity VM • x86 Intel / AMD (Linux and Windows): • Citrix Xen Server virtualization • Red Hat Enterprise Linux (Xen) virtualization • Microsoft Hyper-V virtualization • VMware virtualization • Operating System commands and BIOS settings to limit processor core capacity

  13. Customer notification letters beginning April 7 • Letter will contain: • Highlights of recent sub-cap offering enhancements • Expanded list of Eligible Products • More Eligible Virtualization Technologies • Simplified Tracking and Reporting • Official notice from IBM of new Sub-cap Attachment (Z125-7174-02), which is effective for all PA customers on or before August 1, 2009 • Points customers to official IBM websites for PVU and sub-capacity licensing, including PVU Table Direct link: http://www-01.ibm.com/software/lotus/passportadvantage/customer_notification_letter_subcap_licensing_enhancements_07_Apr_09.html

  14. Recent Oracle licensing changes make their structure even more like PVUs than before • Increased licensing requirements for IBM POWER6 and z processors • Appears to be retroactive • Requires processor model numbers to determine x86 licensing

  15. Impact of Oracle’s recent licensing change For a 4 core Power Systems p570 (POWER6) server * Suggested retail prices (SRP) as of March 31, 2009

  16. VMware VM with WebLogic Server Ent, Ed. on 2 vCPUs VMware VM with WAS ND on 2 vCPUs VMware VM without WAS on 6 vCPUs VMware VM without WebLogic Server Ent. Ed. on 6 vCPUs WAS Network Deployment is licensed for 2 vCPUs WebLogic Server Ent. Ed. is licensed for 8 vCPUs Advantage IBM IBM sub-capacity is much broader than Oracles • Oracle does not allow soft partitioning • Does not allow VMware or other virtualization on x86 (except for Oracle own VM) • You pay for all virtual CPUs (vCPUs) on the box, vs. vCPUs assigned to the Virtual Machine (VM) • With IBM you only pay for vCPUs that are assigned to the VM

  17. Summary • PVUs • Rating for new Intel Xeon (Nehalem) provides significant improvements in SW price performance • Sub-capacity • Support expands to nearly all PVU-based products • Single part number reduces complexity • Support for additional virtualization technologies • IBM licensing supports the most virtualization technologies • Customers must still agree to the sub-cap terms per the Sub-Capacity Attachment to the PA Agreement • Including the use of ILMT

  18. Seller Resources: • PVU internal website portal: http://w3-103.ibm.com/software/xl/portal/viewcontent?type=doc&srcID=XT&docID=P216209A21004Q75 • Sub-Capacity Licensing internal website portal: http://w3-103.ibm.com/software/xl/portal/viewcontent?type=doc&srcID=XT&docID=Z693913I54286V29 • IBM License Metric Tool (ILMT) customer presentation • http://w3-103.ibm.com/software/xl/portal/viewcontent?type=doc&srcID=T9&docID=D809594U66137V33

  19. Customer Resources: • PVU external website portal: http://www-01.ibm.com/software/lotus/passportadvantage/pvu_licensing_for_customers.html • Sub-Capacity Licensing external website portal: http://www-01.ibm.com/software/lotus/passportadvantage/subcaplicensing.html • IBM License Metric Tool (ILMT) information: • http://www-01.ibm.com/software/lotus/passportadvantage/ibmlicensemetrictool.html

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