IBM Systems Group

IBM ~ p5 520 IBM ~ p5 550

Milan Patel Offering Manager, pSeries Entry Servers

Agenda

❧Learning Objectives

❧Offering Description – p5-520 1.65GHz (2 way) – p5-550 1.65GHz (2-4way)

❧Selling Scenarios

❧Pricing and Positioning – The Value Paks New – Portfolio Positioning – Market Positioning – Retention Positioning

❧Target Sectors and Applications

❧Speeds and Feeds

Learning Objectives At the conclusion of this material, you should be able to:

❧ Articulate the key messages and value-prop of ~ p5-520, ~ p5-550

❧ Identify the opportunities and target sectors for the ~ p5-520, ~ p5-550

❧ Articulate the enhancements and benefits of the ~ p5-520, ~ p5-550

❧ Explain how Advanced POWER™ virtualization can help to reduce costs and simplify customer environments

Offerings Overview p5-520 and p5-550

IBM ~ p5 520

What is p5-520? ❧ p5-520 is a 2 way entry server that complements the p5-550 in the entry space ❧ p5-520 delivers - – Outstanding performance – Low Management and Operations costs – Deployment Flexibility and Configurability – (Optional) Advanced POWER virtualization for higher asset utilization – Easy to install, integrate and manage

Why p5-520? ❧ A competitive platform to increase IBM presence in the SMB and Distributed applications segment ❧ Grow IBM presence in existing accounts ❧ Gain presence in the Linux entry server segment ❧ The p5-520 will help retain existing pSeries® 615 and 610, and RS/6000® Models 150 and 170 customers

© 2004 IBM Corporation page 5 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group p5-520 Enhancements (over p615) !Performance ƒPOWER5™ vs. POWER4+™ "Outstanding performance "Simultaneous Multi-Threading ">200% better P/P (over p615)1 !Enhanced RAS ƒConcurrent firmware updates !Configurability ƒ2 RIO-2 ports "Up to 34 adapters, 8.2TB of storage ƒDynamic LPARs ƒAdvanced POWER virtualization ƒFine grained Micro-Partitioning™ ƒVirtualized I/O resources "Increase flexibility and asset utilization 1. Based on US List Price and IBM relative performance estimates of similarly configured 4way p630 1.45GHz and p5-550 1.65GHz servers © 2004 IBM Corporation page 6 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group

IBM ~ p5 550

What is p5-550: ! p5-550 is a 2-4 way entry server to complement the p5-520 on the low end and p5-570 in the mid-range ! p5-550 delivers - " Outstanding performance and price/performance " Deployment Flexibility and Scalability " Improved Manageability " (Optional) Advanced POWER virtualization for higher asset utilization

Why p5-550: ! High performance, aggressively priced server to win SMB and LE clients ! Grow IBM presence in existing accounts ! The p5-550 will help retain existing pSeries® 630, 620, 640 and 660, and RS/6000® Model 270 customers

© 2004 IBM Corporation page 7 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group p5-550 Enhancements (over p630) !Performance ƒ POWER5™ vs POWER4™, POWER4+™ "Outstanding performance "Simultaneous Multi-Threading ">200% better P/P (over p630)1 !Enhanced RAS ƒ Concurrent firmware updates !Capacity on Demand ƒProcessor CoD ƒProcessor sparing !Configurability ƒ 4 RIO-2 ports "Up to 61 adapters, 15.2TB of internal storage ƒAdvanced POWER virtualization ƒ Fine grained Micro-Partitioning™ ƒ Virtualized I/O resources "Increase flexibility and asset utilization 1. Based on US List Price and IBM relative performance estimates of similarly configured 4way p630 1.45GHz and p5-550 1.65GHz servers © 2004 IBM Corporation page 8 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group

Selling Scenarios p5-520 and p5-550

! p5-520 delivers 1.98x the performance of HP rx2600 on SPEC OMPM20011

! p5-550 delivers 2.6x the performance of HP rx5670 on SPEC SFS 3.01

Jaw-dropping Performance 2 IBM 2/4-way Leadership benchmarks : HP LINPACK HPC " Leadership p5-550 SPEC OMPM2001 " Leadership p5-520 SPEC SFS 3.0 " Leadership SPECfp2000 " Leadership rx5670 rx2600 SPECint_rate2000 " Leadership SPECfp_rate2000 " Leadership

Source: www.spec.org HP http://performance.netlib.org/performance/ht IBM ml/PDSreports.html All results are as of 07/13/04 SPEC OMPM2001 SPECsfs IBM SPEC results submitted to SPEC as of 7/13/04. SPEC OMP results must be listed as “estimated” until approved by SPEC. 1. Comparison based on 2 way for p5-520 and 4 way for p-550. 2. Comparison based on 2 & 4 way results

© 2004 IBM Corporation page 10 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group Scenario: Regional Finance company ! A leasing and financing institute is experiencing a surge in its debt financing, mortgage credit, and leasing business. ! It expects to grow by 20% the following year ! Client needs to ensure that its IT infrastructure does not become the bottleneck. They want to – increase their processing capacity – consolidate their IT infrastructure – improve IT productivity and reduce operational costs ! Current System: 5 Sun 280R @ 1.2GHz servers in two locations. !Client wants to maintain redundancy over 2 sites

Capacity Requirements: Capacity Required Estimated OLTP perf.* 13062

Source: * OLTP Relative Performance estimate from IDEAS International as of 07-01-2004. Not intended as a fully definitive or precise server performance measure. Please contact IDEAS International for further details on how this estimate should and should not be used. Estimated OLTP performance estimate copyright IDEAS International Ltd. © 2004 IBM Corporation page 11 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group Client Alternatives

Capacity Required Estimated OLTP perf.* 13062

Alternatives from IBM, HP and Sun: System Configurations # Nodes HP rx2600 3N- 2 way –1.4GHz 3 Relative Perf.* 16800 HP rp3410 4N- 2 way- 0.8GHz 4 Relative Perf.* 17040 Sun V440 4N- 4 ways – 1.062GHz 4 Relative Perf.* 13628 IBM p5-520 2N- 2 way – 1.65GHz 2 Relative Perf.** 16446

Source: * OLTP Relative Performance estimate from IDEAS International as of 07-01-2004. Not intended as a fully definitive or precise server performance measure. Please contact IDEAS International for further details on how this estimate should and should not be used. Estimated OLTP performance estimate copyright IDEAS International Ltd. ** - IBM rPerf estimate. © 2004 IBM Corporation page 12 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group Cost of Acquisition Comparison

US List HW$ SW$ Total Prices

HP rx2600 $34,398 $8,250 $42,648 HP rp3410 $43,520 $3,040 $46,560 Sun V440 $65,580 $0 $65,580 IBM p5-520 $27,656 $4,240 $31,896

!p5-520 based solution costs less than 50% of the Sun Solution and delivers saving of over $33000 in HW & OS costs1 !p5-520 based solution costs over $10,700 less than HP Solution1

!With the performance of a POWER5 based p5-520, Sun V440 client manages only 2 servers vs. 3 to 4 servers HP rp3410 HP rx2600 competitors IBM p5-520 Total Price # of Nodes !Savings based on the customer requirements for capacity and growth outlined in the customer scenario. HP and Sun pricing data from IDEAS International on 07-01-2004 SW prices are for the OS only Configurations do not include I/O adapters and other miscellaneous features needed to run the software © 2004 IBM Corporation page 13 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group

p5-520 and p5-550 Feature - Performance

! Business Value ! Low HW costs (smaller configurations)1 ! Low OS costs (fewer # of processors)2 ! Low Operations costs (fewer # of systems to deploy) ! Low Management costs (fewer # of systems to manage)

! Improved performance of the p5 servers may result in Clients requiring smaller HW configurations, which potentially lower HW costs ! AIX license is priced on a per CPU basis © 2004 IBM Corporation page 14 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group Scenario: A Small Retailer (SMB) ! A small retailer is starting to see an increase in its business – expected growth rate ~40% annually ! Client needs a reliable and scalable solution – that can scale with the business – that minimizes upfront costs and – that provides low TCA over the 3 year planning period ! Client has limited IT staff and wants to add no more than 2 servers to the infrastructure. ! Client evaluates system capacity using relative performance from Ideas International data they get from the vendors.

Capacity Requirements: Year 1 Year 2 Year 3 Estimated OLTP perf.* 8200 11480 16072

Source: * OLTP Relative Performance estimate from IDEAS International as of 07-01-2004. Not intended as a fully definitive or precise server performance measure. Please contact IDEAS International for further details on how this estimate should and should not be used. Estimated OLTP performance estimate copyright IDEAS International Ltd. © 2004 IBM Corporation page 15 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group Client Alternatives

Capacity Requirement Year 1 Year 2 Year 3 Estimated OLTP perf.* 8200 11480 16072

Alternatives from IBM, HP and Sun: System Year 1 Year 2 Year 3 # Nodes 4 ways – 1.3GHz & 4 ways – 1.3GHz & HP rx4640 4 ways – 1.3GHz 2 2 way – 1.3GHz 2 way – 1.3GHz Relative Perf.* 10553 16161 16161 Sun V440 3N - 4 ways – 1.062GHz 3N - 4 ways – 1.062GHz 5N - ways – 1.062GHz 5 Relative Perf.* 11922 11922 19870 2 ways – 1.65GHz & 2 ways – 1.65GHz & 2 ways – 1.65GHz & IBM p5-550 1 0/2 ways CoD 1st CoD activation 2nd CoD activation Relative Perf.** 8223 12334 16397

Source: * OLTP Relative Performance estimate from IDEAS International as of 07-01-2004. Not intended as a fully definitive or precise server performance measure. Please contact IDEAS International for further details on how this estimate should and should not be used. Estimated OLTP performance estimate copyright IDEAS International Ltd. ** - IBM rPerf estimate. © 2004 IBM Corporation page 16 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group Cost of Acquisition Comparison

Year 1 Year 2 Year 3 3 Year US List Prices HW$ SW$ Total HW$ SW$ Total HW$ SW$ Total Total HP rx4640 $33,440 $4,740 $38,180 $23,590 $2,750 $26,340 $0 $0 $0 $64,520

Sun V440 $49,185 $285 $49,470 $0 $0 $0 $32,790 $190 $32,980 $82,450

IBM p5-550 $28,488 $2,120 $30,608 $3,700 $1,035 $4,735 $3,700 $1,035 $4,735 $40,078

! p5-550 based solution costs 37% or $24,400 less than HP1 $18,862 ! First year savings of over $7,500 vs. the HP Solution1

! p5-550 based solution costs about 50% less than Sun1 $7,572 ! Only 1 server to manage with IBM p5-550 vs . Sun vs. 2 to 5 servers for competitors p5-550 1st Year Savings vs . HP

!Savings based on the customer requirements for capacity and growth outlined in the customer scenario. HP and Sun pricing data from IDEAS International on 07-01-2004 SW prices are for the OS only Configurations do not include I/O adapters and other miscellaneous features needed to run the software © 2004 IBM Corporation page 17 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group

p5-550 Feature - CoD

! Business Value ! Low Upfront Costs ! Pay when you use it ! Quickly respond to fluctuating business needs

© 2004 IBM Corporation page 18 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group Scenario: Server Consolidation Requirement: ! Client wants to optimize his IT infrastructure and reduce the costs of management and operations of systems. ! Client wants to replace or consolidate older servers each running one application – Client has 12, 2-way HP rp3410 running one application each – Each server is running @ 20% system utilization Capacity Requirement:

Deployed Capacity Utilized Capacity Estimated OLTP perf.* 51120 10224

Source: * OLTP Relative Performance estimate from IDEAS International as of 07-01-2004. Not intended as a fully definitive or precise server performance measure. Please contact IDEAS International for further details on how this estimate should and should not be used. Estimated OLTP performance estimate copyright IDEAS International Ltd. © 2004 IBM Corporation page 19 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group Client Alternatives

Capacity Requirement Required Capacity Estimated OLTP perf.* 10224

Alternatives from IBM, HP and Sun: System Configurations # Nodes HP rp7420 12 way –.9GHz 1 w/ vpars Relative Perf.* 18320 IBM p5-550 4 way – 1.65GHz 1 w/ Adv. Virt. Relative Perf.* 16397 IBM p5-550 3N - 4way – 1.65GHz 3 w/ DLPAR Relative Perf.** 49191

Source: * OLTP Relative Performance estimate from IDEAS International as of 07-01-2004. Not intended as a fully definitive or precise server performance measure. Please contact IDEAS International for further details on how this estimate should and should not be used. Estimated OLTP performance estimate copyright IDEAS International Ltd. ** - IBM rPerf estimate. © 2004 IBM Corporation page 20 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group Cost of Acquisition Comparison

HW $ SW $ Total US List Prices

$167, 242 $21,664 $188,906 HP rp7420 IBM p5-550 w/ Adv. $35,288 $4,280 $39,568 Virtualization IBM p5-550 $105,864 $12,820 $118,704 w/DLPAR

HP rp7420, ! p5-550 w/Adv. Virtualization costs 79% less $188,906 than a HP rp7420 w/ vpars1

! p5-550 w/Adv. Virtualization cost savings of IBM p5-550 w/DLPAR, 1 $149,000 vs. HP rp7420 $118,704

IBM p5-550 w/ ! p5-550 w/Adv. Virtualization saves $79,000 Adv. Virt., $39,568 (vs. dynamic LPAR) against a cost of $71251

!Savings based on the customer requirements for capacity and growth outlined in the customer scenario. HP and Sun pricing data from IDEAS International on 07-01-2004 SW prices are for the OS only Configurations do not include I/O adapters and other miscellaneous features needed to run the software © 2004 IBM Corporation page 21 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group

p5 Feature – Advanced POWER™ Virtualization

! Business Value ! Reduce Costs (Increased Asset Utilization) ! Lower Management Costs (Fewer # of systems to manage) ! Increase IT productivity (Simplified server management and operations)

© 2004 IBM Corporation page 22 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group Scenario: A SMB client of SAP (500 users) Requirement: !An SMB client is installing an SAP solution. !Client is cost sensitive and wants low price, low TCA option. !Client has a very small IT staff, hence requires the less # of systems to manage !Capacity Requirement:

Capacity Requirement Estimated OLTP perf.* 7303

Source: * OLTP Relative Performance estimate from IDEAS International as of 07-01-2004. Not intended as a fully definitive or precise server performance measure. Please contact IDEAS International for further details on how this estimate should and should not be used. Estimated OLTP performance estimate copyright IDEAS International Ltd. © 2004 IBM Corporation page 23 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group Client Alternatives

Capacity Requirement Estimated OLTP perf.* 7303

Alternatives from IBM, HP and Sun:

System Configurations # Nodes HP rx2600 2N - 2 way –1.4GHz 2 Relative Perf.* 11200 Sun V240 4N - 2 way – 1.28GHz 4 Relative Perf.* 8242 IBM p5-520 2 way – 1.65GHz 1 Relative Perf.** 8223

Source: * OLTP Relative Performance estimate from IDEAS International as of 07-01-2004. Not intended as a fully definitive or precise server performance measure. Please contact IDEAS International for further details on how this estimate should and should not be used. Estimated OLTP performance estimate copyright IDEAS International Ltd. ** - IBM rPerf estimate. © 2004 IBM Corporation page 24 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group Cost of Acquisition Comparison

US List Prices HW$ SW$ Total

HP rx2600 $22,932 $5,500 $28,432

Sun V240 $27,580 $380 $27,960

IBM p5-520 $13,828 $2,120 $15,948

! p5-520 is about 42% less than the Sun solution and delivers savings of over $12,0001

! p5-520 costs 43% less than HP rx26001 HP rx2600 ! p5-520 helps deliver low cost of ownership with Sun V240

only 1 server to manage vs. 2 or 4 of IBM p5-520 competitive servers # of Nodes Total Price

!Savings based on the customer requirements for capacity and growth outlined in the customer scenario. HP and Sun pricing data from IDEAS International on 07-01-2004 SW prices are for the OS only Configurations do not include I/O adapters and other miscellaneous features needed to run the software © 2004 IBM Corporation page 25 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group

p5 Advantage – Price/performance

! Business Value ! Low HW costs (smaller configurations)1 ! Low OS licensing costs (fewer # of processors)2 ! Low Management costs (fewer # of systems to manage) ! Low Operations costs (fewer # of systems to deploy)

Offering Pricing and Positioning p5-520 and p5-550

© 2004 IBM Corporation page 27 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group What are Value Paks? ❧ New Lingo: “Value Paks” – replaces Express Configs and many of its limitations

Express Configurations Structure: ❧Fixed Bundle #Good –Parts cannot be replaced "Priced to competition • Separate Linux and AIX "Easy to Order configurations "Easy to Understand –Features can be added #Bad –Specially priced processors ➼No Cross-product Bundles and memory ➼Not Effective in EMEA • Same HW with different ➼Proliferation of models feature code #Ugly ➼Minimal Configuration Flexibility ➼AAP Administrative Nightmare

❧Value Paks offer rules based special pricing – Qualify for special prices by meeting configuration rules • Two GB of memory per active processor1 • Two 73.4 GB disks1 • Up to ½ the processor activations for no additional charge1 • Entitles clients to discounted SW (on p5-520, p5-550 only) ❧Flexibility for changing or uplifting configurations ❧No rebate required or need to be processed

1. Except – p5-520; p5-520 does not have CoD, it follows a different Value Pak structure.

❧p5-520 & p5-550 will – be offered in Rack and Deskside configuration • same Model, different Feature Code (FC) for Rack & Deskside – support AIX 5L™ and Linux® • OS unbundled from the HW • select a FC for AIX 5L or Linux or both or none – offer Value Paks • 1 VP for p5-520 and 2 VP for p5-550 • flexibility to enhance value pak configurations

Machine Type Model CPU Speed N-way

9111 520 1.65 GHz 2-way

9113 550 1.65 GHz 2-4 way

Value Pak Definition Model Definition Incentive

p5-520 One 2-way POWER5 1.65 GHz processor card, Aggressively priced 2GB of memory, one 36.4GB hot-swappable disk base HW; specially- drive priced AIX 5L

p5-550 One 2-way POWER5 1.65 GHz processor card One no-charge with two processor activations, 4GB of memory, processor activation; two 73.4GB hot-swappable disk drives specially-priced AIX 5L p5-550 Two 2-way POWER5 1.65 GHz processor cards Two no-charge with four processor activations, 8GB of memory, processor activation; two 73.4GB hot-swappable disk drives specially-priced AIX 5L

!p5-520 1.65 GHz is a approximate price-point replacement for p615 1.45 GHz !p5-550 1.65 GHz is a approximate price-point replacement for p630 1.45 GHz

Model Configurations List Price

p5-520 2 way 1.65 GHz, 1GB memory, 1x36.4GB disk $10,800

p5-550 2 way 1.65 GHz, 4GB memory, 2x73.4GB disks $20,540

p5-550 4 way 1.65 GHz, 8GB memory, 2x73.4GB disk $32,487

CoD pricing List Price

p5-550 One 0/2 way Processor Card $4547

Homogenous environment across the infrastructure to simply management

High-end IBM pSeries 690 Operational consistency across all levels for the Large database server system administrator

IBM Mid-range IBM IBM pSeries 670 p5-570s pSeries 650 Application servers, Web hosting

Entry IBM pSeries IBM

H C R U6

pSeries IBM

server IB server IB H C R M H C R M U6 U6 server pSeries server pSeries server IBM IBM

server Branch, Department servers, p615, p5-520 p630, p5-550 Small DB, end user Applications

# Price: p630 is better $40,000 " p630 is priced approximately 34% $35,000 better for 2-way $30,000 " p630 is priced approximately 31% $25,000 better for 4-way $20,000 $15,000 # Performance: p5-550 is $10,000 significantly better $5,000 " p5-550 running AIX 5L v.5.3 has 2.4 $- times rPerf p630 2 way p5-550 2 way p630 4 way p5-550 4 way " p5-550 running AIX 5L v5.2 has 1.9 1.2GHz 1.65GHz 1.2GHz 1.65GHz times rPerf # Features: p5-550 is Relative performance (w/AIX 5.2) significantly better " Advanced POWER Virtualization 16.00 " CoD 14.00 " 8 I/O drawers 12.00 # Why would anyone buy the 10.00 1.2GHz p630 in 3Q 8.00 6.00 " Ongoing rollouts 4.00 " Lower price per n-way 2.00 " Application (Ver.) compatibility 0.00 " p630 supports AIX 5L v.5.1 p630 2 way p5-550 2 way p630 4 way p5-550 4 way $ 30% of the AIX shipments in 2Q on 1.2GHz 1.65GHz 1.2GHz 1.65GHz new systems selected AIX 5L v5.1

US List Prices # Price: p615 is significantly better $14,000 " p615 is priced approximately 32% $12,000 better for 2-way $10,000 " p615 1.2GHz 1 way is 58% better $8,000 and the only 1 way offering $6,000 # Performance: p5-520 is $4,000 significantly better $2,000 " p5-520 running AIX 5L v.5.3 has 2.4 $- times rPerf p615 2-way 1.2GHz p5-520 2 way 1.65GHz " p5-520 running AIX 5L v5.2 has 1.9 times rPerf # Features: p5-550 is Relative Perform ance (w /AIX 5.2) significantly better 8.00

" Advanced POWER Virtualization 7.00 " DLPAR " 4 I/O drawers 6.00 # Why would anyone buy the 5.00 1.2GHz p615 in 3Q 4.00 " The only 1-way offering 3.00 " Ongoing rollouts 2.00 " Lower price per n-way 1.00 " Application (Ver.) compatibility 0.00 p615 2-w ay 1.2GHz p5-520 2 w ay 1.65GHz

Primary Secondary IBM Target Sectors IBM Differentiators Competitor Competitors p5-520 HP rx2600 HP rp3410, !SMB "Price1 (1.65GHz) Sun V240, !Retail (& Distributed Branches) "Performance V250 !Financial Services "Flexibility !Public Sector "RAS & Security !HPC !Industrial !Media and Entertainment p5-550 HP rx4640 HP rp3440, !SMB "Performance (1.65GHz) Sun V440 !Public Sector "Price/Performance !Financial Services "Flexibility !Distributors "RAS and Security !Industrial !Retail !HPC !Communications

p5-520 & IBM incumbent vendor " Homogeneous Environment p5-550 " POWER roadmap " Stable Vendor with momentum " Costs and Risk of Migration

! Improved performance of the p5 servers may result in Clients requiring smaller HW configurations, which potentially lower HW costs © 2004 IBM Corporation page 36 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group p5-520 and p5-550 Retention Positioning

If your client has Then you should sell If you client has Then you should sell All 7006-XXX p5-520 7026-B80 p5-520 All 7007-XXX p5-520 7026-H10, H50, H70 p5-520 All 7008-XXX p5-520 7026-H80, M80, 6H0, 6H1, 6M1 p5-550 All 7009-XXX p5-520 7028-6C1 & 6E1 (p610) p5-520 All 7011-XXX p5-520 7028-6C4&6E4 (p630) p5-550 All 7012-XXX p5-520 All 7030-XXX p5-520 All 7013-XXX p5-520 7038-XXX (p650) p5-570 All 7015-XXX p5-520 7040-671 (p670) p5-570 7017-S70 p5-550 All non-workstation 7043-XXX p5-520 7017-S7A p5-550 All non-workstation 7044-XXX p5-520 7017-S80 p5-570 7046-B50 p5-520 All 7024-XXX p5-520 All 7248-XXX p5-520 7025-F30, F40, F50 p5-520 7317-XXX p5-520 7025-F80, 6F0, 6F1 p5-550 All 9076-XXX (SP Nodes) p655 7026-B80 p5-520 7026-H10, H50, H70 p5-520 7026-H80, M80, 6H0, 6H1, 6M1 p5-550 7028-6C1 & 6E1 (p610) p5-520 7028-6C4&6E4 (p630) p5-550 All 7030-XXX p5-520 7038-XXX (p650) p5-570 7040-671 (p670) p5-570 All non-workstation 7043-XXX p5-520 All non-workstation 7044-XXX p5-520 7046-B50 p5-520 All 7248-XXX p5-520 7317-XXX p5-520 All 9076-XXX (SP Nodes) p655

Target Sectors and Applications p5-520 and p5-550

© 2004 IBM Corporation page 38 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group p5-520 and p5-550 Target Sectors Sector/Industry Customer Usage Differentiation SMB ❧Portals ❧Price1 ❧e-commerce, CRM, BI ❧Reliability ❧Employee Productivity ❧Easy to Install & Manage ❧Security and Disaster Recovery ❧Security Features Retail ❧Customer profitability and analytics ❧Price1 ❧Inventory, Logistics Management ❧Flexibility ❧Supply Chain Integration ❧RAS ❧e-commerce ❧Manageability Finance (Retail banks, Credit ❧Branch banking ❧Performance Unions, Brokerage, Insurance) ❧Payment, Claims and Underwriting ❧RAS ❧Customer Analytics ❧Security Features ❧e-business ❧Price1 ❧Risk and Compliance Industrial (Electronics, ❧Product Life Cycle Management ❧Price1 Manufacturing, Aerospace) ❧Supply Chain management ❧Performance ❧Production, Operations, Logistics ❧Flexibility ❧Customer Service ❧Manageability Media & Entertainment ❧Multi-media processing ❧Performance ❧e-commerce ❧Reliability ❧Multi-channel Broadcasting ❧Configurability ! Improved performance of the p5 servers may result in Clients requiring smaller HW configurations, which potentially lower HW costs © 2004 IBM Corporation page 39 Template Version 3.04 IBM Systems Group Field Skills & Education IBM Confidential IBM Systems Group

Speeds and Feeds p5-520 and p5-550

Core Electronics Software Support Power5 2 way SMP Announce 7/13/2004 AIX 5.3, 5.2H Enterprise/Winnipeg HUB Linux SuSE SLES 9, RedHat RHEL GA 8/31/2004 GR-Trimaran DCM, 2w at 1.65GHz 3.3 Memory RAS 8 DIMM slots, DDR1 266 MHz Dynamic LPAR DIMM sizes: 256MB, 512MB, 1GB, 2GB, Processor runtime de-allocation 4GB Concurrent firmware patch Hot plug and front access drives Integrated Features Tower/Deskside Dual Gigabit Ethernet Hot plug and Enhanced Error Dual Ultra320 SCSI with optional RAID 21”hx7.5”wx23”d Handling on all PCIX slots daughter card Memory ECC, chip kill, bit steering IDE, 2 USB, 2 Serial, 2 HMC ports and resilience Expansion PCIX Slots Redundant & hot plug power Four PCIX 64b 133 MHz slots (optional) Two PCIX 32b 66 MHz slots Redundant & hot plug cooling Dual AC power supply (optional) Expansion RIO-2 Port 2 RIO-2 ports (1 loop) System Management FSP service processor Storage Op-panel and FRU/CRU LEDs 4+4 hot swap 3.5" drives via two 4-pack Optional HMC console DASD backplanes Rack Drawer DASD size: 36, 73, 146GB Certifications Media Bays 4EIA hx18”wx21”d FCC Class A 2 slimline bays & 1 half high bay Environmental Class-3 Acoustics General Business

Core Electronics Software Support Power5 2, 4 way SMP AIX 5.3, 5.2H 36MB L3 Cache (Trimaran) Linnux SuSE SLES9; RedHat RHEL Announce 7/13/2004 Enterprise/Winnipeg HUB 3.3 GR-Trimaran DCM, 2w at 1.65 GHz GA 8/31/2004 RAS Memory DLPAR, Processor COD 8 DIMM slots per processor card, DDR1 Runtime processor de-allocation 266MHz Processor sparing with COD DDR1 266MHz DIMM size: 256MB, 512MB, Concurrent firmware update 1GB, 2GB, 4GB Hot plug and front access DASD Integrated Features Hot plug and Enhanced Error Dual Gigabit Ethernet Tower/Deskside Handling on all PCIX slots Dual Ultra320 SCSI with optional RAID 21”hx7.5”wx27”d Memory ECC, chipkill, bit steering & daughter card resilience IDE, 2 USB, 2 Serial, 2 HMC ports Redundant & hot plug power (optional) Expansion PCIX Slots Redundant & hot plug cooling Five PCIX 64b 133MHz slots Dual 220VAC power supply (optional) Expansion RIO-2 Port System Management 2 RIO-2 port in base configuration FSP service processor Expansion GX+ Slot Op-panel & FRU/CRU LEDs One GX+ slot Optional HMC console (Note: GX+ slot & one PCIX slot share the Certifications same physical location) FCC Class "A" Storage Environmental Class 3 4+4 hot swap 3.5" drives via two 4-pack DASD Acoustics General Business backplanes Rack Drawer Note on Power Supply Input DASD size: 36, 73, 146GB 4EIA hx18”wx27”d 200-240 VAC for 4-way max Media Bays 100-127 VAC for 2-way max 2 slimline bays & 1 half high bay

End Of Presentation

CHALLENGES IBM DIFFERENTIATOR

❧Better understand customer needs & "Price1 buying habits "Flexibility of deployment ❧Effective multi-channel retailing "Reliability ❧Employee productivity "Ease of integration and management ❧Improve supply chain efficiencies ❧Cut costs