Changing the Game with Linux Gets Down to Real Business

Ben Marx Linux Business Development, IBM Iberia

San Sebastián, December 2002 What is Linux? The OS at a glance

UNIX-like developed by Linus Torvalds Version 2.4 available Developed / tested by the Open Source community Highly disciplined / structured High quality Secure Stable Packaged and shipped by distributors SCO SuSE Turbolinux Other regional distributors (ESware, Red Flag, Conectiva, Mandrake, etc...)

2 Linux Distributors Combine their Power UnitedLinux = Open Industry Consortium

Concept: Binary-compatible Linux distribution, branded "UnitedLinux" Initial Members: SuSE, SCO, Turbolinux, Conectiva Open to others Business Model: Distributors add and services Distributors maintain brand names with "UnitedLinux Inside" UnitedLinux promotes the brand, issue memberships, certifications, manages requirements SuSE acts as UnitedLinux systems integrator Implementation: Supported by all IBM eServer platforms, key middleware Worldwide language support, standards based (e.g. LSB 1.1, LI18NUX)

3 Linux Momentum

Linux Linux will definitely have the fastest CAGR growth in 2002, at almost 50% over 35% 2001 Gartner Group, December 2001 Linux will have a "breakout year" in 2002. Now it seems clear that Linux has become a viable alternative for enterprise use. IDC, January 2002 Exploring Linux - especially on the server side - should be part of an organization's IT investment portfolio. ...viewed as an insurance policy to hedge against future Microsoft incursions into your wallet. 2003 Linux META Group, August 2001 surpasses in server shipments

4 Linux Value

Cost Effective

Reliability

Performance

Open Standards 0% 20% 40% 60% 80% 100% Source: IBM Market Research 2001

"It's going to be almost 30 times cheaper to run and maintain" (than Sun systems) Josh Levine CTO, e*Trade

5 2001 Linux Function Review

Strongest UNIX

Linux Distributors

Weakest UNIX

Below Average Above Good Very Average Average Good

by D.H. Brown Associates

6 How Customers are Deploying Linux

Workload Consolidation Linux Clusters

Distributed Enterprise

Application Solutions Infrastructure Solutions

7 Consolidate Workloads Consolidation across your Organization

Workload Consolidation helps: Reduce cost Server farms Logical partitions Use resources more efficiently Improve performance Speed deployment Dramatically improve TCO

Advantages: Single purpose Internet-related servers zSeries, xSeries, pSeries Multiple workloads consolidated on and iSeries IBM eServer zSeries, xSeries, pSeries and iSeries

New Sendmail benchmark - Linux on zSeries: 400,000 users at 13% CPU; Projecting 2M mailboxes running POP protocol

8 Banco Mercantil Linux zSeries Consolidation of Web Infrastructure

Challenge Offer corporate, commercial and personal financial products NT Servers costly and unmanageable Need reliability and systems management allowing for workload growth Solution and Benefits Phase 1 - Replaced 30 NT file, Internet domain, and firewall servers with zSeries running Linux Phase 2 - Move applications from Unix to zSeries/Linux/DB2 Reduced administrative support Higher availability Improved price/performance Reduced HW and systems management costs

"Linux on the S/390 allows us to consolidate in a very cost effective way" Isaac Arismendi Banco Mercantil

9 Korean Air Workload Consolidation

Challenge Consolidate core-business applications (Flight Schedule Inquiry System and Daily Revenue Accounting) running on a variety of different servers Reduce operation costs, improve performance and efficiency Solution Internet and Intranet-based Inquiry System running on Linux in 4 partitions of IBM z900 server using IBM Software and Services Daily Accounting System using Java/WebSphere Application Server. Asset Management System running DB2 for Linux, DB2 Connect and IMS Connect

10 Large European Bank Multichannel Banking Strategy

Challenge: Growing competion New MultiChannel/ CRM applications Reduce development time and portability cost Reduce cost Solution: Linux for zSeries with zVM WebSphere and DB2 Linux-based thin clients Benefits Significant HW and SW savings Reduced complexity Simpler portability Standards-based development using JAVA and J2EE Horizontal and vertical scalability

11 Workload Consolidation Success

12 Scale to Handle Complex Workloads Affordable Linux Cluster Solutions

IBM Linux Clusters: Linux Cluster Improve performance & speed Network/networked apps Improve uptime/availability Systems, networks or applications Streamline management Advantages: Pre-built/ tested/integrated configurations Choice of architecture IA 32, IA 64, or PowerPC Scalability & availability Parallel environments New eServer Cluster 1350 Compelling price/performance

13 Dupont Photomask Linux Clusters

Challenge Minimize photomask development by increasing computational speed 99.9 percent availability Solution Linux cluster of 10 xSeries servers RedHat V7.1 Value 3X the processing power of existing NT servers Reduced run time from days to less than 24 hours Reduced photomask development/testing cycle

14 Royal Dutch Shell Linux Clusters Challenge Insight into subsurface, increasing hit rate in the quest for new oil fields. Reduce the risk of drilling dry holes More accurate tera-scale seismic processing with outstanding price/performance Grow processing power by an order of magnitude Cost pressures Solution and Benefits 1024 IBM xSeries servers for +Tflop capability IBM Global Services to design, build, and implement Improved modeling accuracy -- critical in deciding where to invest in oil/gas exploration

"With this Linux cluster, we find a cost-effective solution to apply the algorithms we've already developed in-house to run them faster than was possible before." Jack Buur Principal Research Physicist Shell Exploration and Production B.V.

15 Dresdner Kleinwort Wasserstein Linux Clusters

Challenge Reduce time to assess portfolio risk Increase efficiency in the pricing and relations of the whole bank interest rate position Solution Linux cluster solution with 80 Netfinity nodes Own distribution framework with Linux in-house Value From 11 hours to calculate the whole position to 15 minutes Cost efficient for SW licenses and HW requirements Competitive advantage

16 Linux Cluster Success

17 Distributed Applications in Many Locations Distribute Function in your Enterprise

Distributed Linux Servers: Extend applications to serve more customers or employees. Extend customer service, availability and functionality Advantages: Lower cost and small footprint servers No OS license fees Easily replicated High reliability and stability Centrally managed

18 China Post Distributed Linux

Challenge Cut cost and increase efficiency across 1,200 branch locations and 2,000 total locations Transform manual record keeping and data collecting to an electronic system Set up an e-Post branch office Solution IBM xSeries 200s running Turbolinux Value Increased revenue Reduced cost Improved customer service and customer satisfaction

19 Sherwin-Williams Innovative Point of Sale Solution

Challenge Major manufacturer with over 2,600 outlets Needed to upgrade point of sale system plus provide e- mail, intranet and internet capabilities Solution Custom IGS Services for Point of Sale NetVista for in-store processing Benefits New functionality provided for the stores for POS, e-mail and Web Web browser and StarOffice as new capabilities Reduced administrative support Higher availability Redundant servers and diskless POS PCs Improved price/performance

20 Distributed Linux Success

21 Application Solutions Affordable Integrated Linux Solutions

Linux Application Solutions Enabling e-business initiatives Industry vertical applications Aimed at Business Partners Advantages: Bundled HW / middleware / ISV application Low cost ISV/VAR Application IBM Turnkey servers IBM Server Middleware Reduced implementation time

Linux Distribution

xSeries iSeries pSeries zSeries

22 Alcatel SAP on zSeries running Linux

Challenge Consolidate systems, improve reliability and systems management Solution mySAP.com on 64-bit Linux for eServer zSeries DB2 Universal Database Value Twice as fast as Unix batch processing Higher availability Better system management Improved TCO "The Linux installation on zSeries was simple and quick. ...we were very pleased with the performance results." Burghart Pohler Manager, Alcatel

23 Infrastructure Solutions Optimized Servers and Software for Specific Tasks

Infrastructure Servers Infrastructure Software File/Print Infrastructure Solutions Data Bases Directory Data Processing Application dev. Network Management Content Messaging Software Caching Application Development Security Advantages: Advantages: Scalability Easy to set-up Reliability Easy to expand Cost Effectiveness Low cost Turnkey

24 weather.com High-volume Web Site

Challenge Reduce cost; replace Sun/Oracle servers Handle dramatically fluctuating Internet traffic Solution eServer iSeries and xSeries (50) running SuSE Linux WebSphere Application Server on Linux Value Simple, low-cost commodity hardware Deploy best-of-breed WebSphere solution Protected investment over strategic timeframe

25 Is it Real? The Myths of Linux

Linux doesn't scale Linux isn't ready for the Enterprise Linux lacks business applications Linux isn't secure Linux skills are scarce

26 Is it Real? The Myths of Linux

Linux doesn't scale Linux isn't ready for the Enterprise Linux lacks business applications Linux isn't secure Linux skills are scarce

27 Fact: Linux Performs

Database - world record TPC-H benchmark "Linux scales from desktops to massively DB2 v7.2; 4 Intel® 900MHz Pentium III Xeon processors parallel clusters, 74% faster than the best Windows-based result enabling us to meet the File Serving needs of researchers PC Mag's performance tests for file servers ... Linux with Samba who develop and run applications on significantly outperformed Windows 2000, 11/01 desktops, on Linux ...on the fastest HW while handling largest number of clients, clusters and on Linux's throughput was 78% faster everything in between." Seismic Processing Dan Reed, Shell -- 1024-way xSeries cluster Director, NCSA Western Geco "Customer workloads CGG that can easily be Quantitative Analytics parallelized and which Large NY brokerage uses a 64 node Linux Cluster for quantitative allow for horizontal analytics on their Trading desk scalability are capable Risk Management of running today on 1 - 4 way Linux systems." Renaissance Technologies (#1 hedge fund - 3 years); 32 node Stacey Quandt, Giga cluster, for Quant workloads to contain risk and leverage growing markets

28 Fact: Linux Sets Records in Horizontal Scalability

Blue Gene: 100 M$ project to deliver Petaflop performance First member: Blue Gene/L, Linux, 65000 procs, 16 TB memory, 200 Teraflops, ready in 2004 /2005 29 Is it Real? The Myths of Linux

Linux doesn't scale Linux isn't ready for the Enterprise Linux lacks business applications Linux isn't secure Linux skills are scarce

30 Fact: Linux is Rock Solid

Linux for mission-critical apps: Internet Banking - "Every major release... Seismic mapping - significant improvements... Internet Services - performance, scalability Retail/POS - and reliability. ... Many of these... are Branch/Agency Auto- telecommunications Production Applications - providers and financial Netcraft web server survey institutions – that have a Apache is the #1 Internet web server need for scalable, reliable Active sites - Apache 62%, Microsoft 26%, iPlanet 2% operations and exemplary Apache/web serving - #1 Linux killer application quality of service that is well In a Cluster Environment Peak Operation Downtime above the norm." Per Year* Jonathan Eunice, Microsoft...... 30 hours Illuminata Linux...... 14 hours

*Standish Research Group 2001

31 Is it Real? The Myths of Linux

Linux doesn't scale Linux isn't ready for the Enterprise Linux lacks business applications Linux isn't secure Linux skills are scarce

32 Fact: ISVs Adopting Linux

3,800 Linux applications in IBM Global Solutions Directory SAP, Sendmail, jBASE, Relavis, Sanchez, MissionCritical Linux, QAD, SAS, Steeleye, SecureWorks, Fluent Logocenter Technologia, Offsys Parana Technologia, Perfil Technologia Ltda Eclipse: open-source, integrated foundation for app development Supported by 150+ ISVs 48% of developers WW (40% in North American) plan to target most of their apps to Linux* 39% of Int'l (34% of NA) developers have written Linux applications 50%+ have confidence in Linux for mission-critical apps WW IBM Porting Centers for Linux Developerworks Linux & Open Source Zones = 1M page views/mo. (+200% YTD) www..com/developerworks/linux

*Evans Study March 2001

www.ibm.com/software/solutions/isv

33 Fact: Software Developers Adopting Linux

34 Is it Real? The Myths of Linux

Linux doesn't scale Linux isn't ready for the Enterprise Linux lacks business applications Linux isn't secure Linux skills are scarce

35 Fact: Linux Architected for Security Open Source Development Enhances It "World Governments Choosing Linux", AP, 12/1/01 "Security through "Chinese, French and German govts ... adopting Linux over MS " "Security experts ... agree computers are less prone to hacking and obscurity is the viruses when running open-source software like Linux" motto of yesterday, ZDNet Tech Update, 11/15/01 the slogan of today "... (an administrator) can adequately secure the system. This is much easier with Linux than Windows. I can limit my exposure." Viata Security is security through officer D. Phillips transparency." Windows comes with many services automatically enabled, ... easy to use, but also opening it to attacks SecurityPortal - tracks vendor response time to vulnerabilities Margareta Wold (Bug to Patch) German Minister of Red Hat: 11.23 days (best score) Economy and Microsoft: 16.10 days Technology Sun: 3 months The Open Source development process Darwinian -- structured/disciplined Exposed vs. hidden The US National Security Agency embracing Linux Investing to develop Linux security enhancements

36 Is it Real? The Myths of Linux

Linux doesn't scale Linux isn't ready for the Enterprise Linux lacks business applications Linux isn't secure Linux skills are scarce

37 Fact: Linux Skills are Easy to Learn Widely Taught, Transferable from UNIX

IBM Extreme Blue summer internship "If your IT organization 80%+ with Linux skills supports UNIX today, you are well positioned Universities embracing Linux -- to support Linux. UNIX MIT, UC Berkeley, City Univ. of NY, Univ. of skilled programmers can Texas, Loyola College, Univ. of Cincinnati easily and quickly National Univ. of Korea, Univ., Osaka develop into Linux Univ. programmers." Linux Reference Center at UA Madrid IBM Scholars Challenge Harry Roberts IBM Learning Services SVP and CIO, 40 courses Boscov's, Inc. www.ibm.com/training/spotlight/linux

38 Linux @ IBM A Commitment to Linux across the Entire Business

1000+ production servers WW, numerous R&D projects Internal Linux Projects: 300mm Manufacturing Equipment Control e-Business Systems Management (EPP Probes) IBM Global e-Mail Anti-virus Management Global Storage Architecture Authentication System IBM Client Software Distribution IBM Forums (zSeries) Web Serving (www.ibm.com/linux & w3)

39 IBM eServer Family Supports Linux

eServer zSeries: eServer xSeries zSeries 800 for Linux xSeries 343 for Telco Many Linux servers on a single HW X-architecture innovation platform (thousands) OS freedom of choice Unmatched scalability Affordable, Scalable, Reliable Large applications portfolio Appliances Simplified Systems Rack-optimized servers Management Clusters (1350): Runs in an LPAR or on z/VM Integration and testing of IBM & OEM zSeries - 64 bit & 31-bit Speed to market Reduced cost of ownership xSeries rack optimized servers

eServer iSeries: eServer pSeries: iSeries Linux edition - 820 Native Linux 32-bit & 64-bit Reliable / Scalable Linux Virtual Servers on eSer ver Up to 31 Linux Partitions p690 and eSer ver p670 Integration with OS/400 Linux affinity on AIX 5L Resource sharing and I/O Bandwidth and RAS management Multiplatform flexibility I/O Flexibility

40 IBM Middleware is Ready Today! More than 60 products on different platforms

Solutions available across all product lines WebSphere Transaction Scalable Integration Modular Leverage Information Flexible Leverage Collaboration Standards based Systems Management Reliable Open is the world's new direction Eclipse: An open tool platform contributed by IBM to an independent open source organization

Solutions at lowest TCO

41 IBM Services for Linux Managed Operations Clusters Training Support Line 5 languages; 20 countries x1300 All eServers Installations Web-based and classroom OEM Cluster workshops - New! Procurement Hardware Setup Software Installation Web Hosting xSeries zSeries Linux e-Sourcing coming '02

Technical Support Middleware Support Line Account advocate Enablement Advanced Support DB2 All eServers including WAS clusters MQSeries 24/7 ISV's QuickStarts

42 Basic Linux Solutions Where to start with Linux?

Web Server Appliance mySAP.com infrastructure Hosting Appliance Cluster 1350 Consolidation on IBM Standard high availabilty eServer xSeries platform Integrated platform for eBusiness

43 Integrated Platform for eBusiness Based on IBM eServer

Components Functionality IBM eServer xSeries 330 integrated server platform rack mounted for rapid deployment of J2EE WebSphere Application applications Server Advanced Edition IBM Secureway Directory IBM DB2 (on an optional x360) Cisco firewall, flat screen, switch IBM Support Line SuSE Linux Enterprise Server

44 Integrated Platform for eBusiness Based on IBM eServer

Usage scenarios Cost aspects standard eBusiness platform reduction of “time to market” selection simplification: optimized, tested and 12 standard configurations integrated platform Customer profile 40 coporate Testing medium Inst. / config. 30 Delivery HW definition

20 Req. analysis

10

0 Without With

45 Infrastructure for mySAP.com Rapid Deployment

Components Functionality IBM eServer xSeries x232, pre-dimensioned systems for x360, x440 multiple scenarios IBM FAStT storage R/3 and Business fiber connectors Warehouse SuSE Linux IBM DB2 UDB 7.1 IBM Director 3.1

Sandbox (150 SAPS) Entry (500 SAPS) Midrange (1000 SAPS) High End (2000 SAPS)

46 Infrastructure for mySAP.com Rapid Deployment

Usage scenarios Cost aspects SAP application server rapid implementation SAP database server risk mitigation Customer profile based on standard hardware: any customer with the need Intel to install or upgrade an SAP XpandOnDemand flexibility system

SSSSSSSSSAP

47 Cluster 1350 Rapid Deployment

Components Functionality IBM eServer xSeries x335 y pre-configured x345 management with CSM Red Hat Linux node monitoring administration software software distribution CSM configuration GPFS (optional) synchronization switch node groups Ethernet 1 single system, 1 contact Myrinet (optional) point, including even the non-IBM components

48 Cluster 1350 Rapid Deployment

Usage scenarios Cost aspects e-business, e. g. implementation cost WebSphere Application reduction, vs. "roll your own" Server, Commerce Suite price / performance DB2, Informix, Oracle, ... reliabilty Domino management Sendmail, Bynari single contact HPC / Life Sciences SteelEye: high availability Customer profile Corporate: with Linux experience, aim to cut administration, valueing robustness and a mid- term view Medium: critical applications, Linux' high reliability

49 Standard High Availability Platform “BlueSky”: Linux Cluster with SteelEye LifeKeeper

Components Functionality 2 IBM eServer xSeries "failover" configuration IBM FAStT storage transfer of service (incl. IP enterprise Linux address) in seconds SteelEye LifeKeeper economic components, IBM Support Line standard hardware installation services 99,99% availability*

* SteelEye information

50 Standard High Availability Platform “BlueSky”: Linux Cluster with SteelEye LifeKeeper

Usage scenarios Cost aspects standard application server Intel: standard databases: DB2, Informix, platform, economic Oracle, MySQL rapid Email + groupware: Domino, implementation Sendmail, Bynari savings over web server: Apache conventional cluster web application server: solution: more than WebSphere 50% Customer profile Corporate: standard server, e. g. departamental SMB: departamental or central server

51 Exploiting Linux for Competitive Advantage IBM is Ready to Help You:

Get educated Assess what's happening in your company Develop your Linux strategy Pick and implement a pilot

Information: www.ibm.com/linux Contact: [email protected]

52 Changing the Game with Linux Linux Gets Down to Real Business

Ben Marx Linux Business Development, IBM Iberia

San Sebastián, December 2002