New Enterprise Power Systems Dynamic Efficiency Business

Power Systems and IBM i 2Q Launch Overview

May 6, 2014

Steve Fier Certified POWER System Sales The Power Systems Strategy

Leadership and innovation to support today’s core business applications and next-generation solutions with strong financial benefits, industry leading support and a highly skilled and vibrant ecosystem

Next Gen Apps Big Data & Analytics

Open Platform for Choice OpenPOWER Consortium

Innovation Community Client Value that Matters Engagement Power Charter

$9.8B$9.8B $6.9B 44,761 2014 WW Unix Market 2014 WW Linux Market* Total Power Clients

** excludingexcluding LinuxLinux serversservers <$6K<$6K -3.3%-3.3% growthgrowth 2013-20142013-2014 1.1% growth over 2013 Clients spending >$1, (GMV2H13)(GMV2H13) (GMV2H13)(GMV2H13) -4.4%-4.4% vsvs 20132013 (MD(MD Team)Team)

HP 56%56% 39% 2% 11% 2013 Power Systems 2013 Unix + Linux Oracle 2013 Power Systems 2013 Power Systems 22% Unix ShareShare Power Share* Linux Share* * excluding Linux servers <$6K Rolling four quarter * excluding Linux servers <$6K ** excludingexcluding LinuxLinux serversservers <$6K<$6K Rolling four quarter share share through 4Q 2013 Rolling four quarter share throughthrough 4Q4Q 20132013 (IDC)(IDC) (IDC)(IDC) throughthrough 4Q4Q 20132013 (IDC)(IDC)

2Q13 3Q13 4Q13 1Q14 Culminating in:

+Power Systems +OpenPOWER +Power +OpenPOWER: Linux Centers: Foundation Enterprise Samsung and Beijing, Austin Pools Suzhou +$1B IBM and NYC PowerCore Investment in +DB2 BLU +KVM support for Linux on Power Acceleration +Power Power (SOD) Solution Development A new +Power Systems Cloud Linux Center: +Power generation Montpellier Integrated +SoftLayer Facilities for Integration with of IBM +PowerLinux 7R4 Linux Power (SOD) Power +Cognos BI on +Power Systems Suzhou Linux on Power Systems Linux Center: Tokyo

SOD for 2Q Watson

The goal of the OpenPOWER Foundation is to create an open ecosystem, using the POWER Architecture to share expertise, investment, and server-class intellectual property to serve the evolving needs of customers.

- Opening the architecture to give the industry the ability to innovate across the full hardware and software stack • Simplify system design with alternative architecture • Includes SOC design, Bus Specifications, Reference Designs, FW OS and Hypervisor Open Source • Little Endian Linux to ease the migration of software to POWER

- Driving an expansion of enterprise-class hardware and software stack for the data center

- Building a complete ecosystem to provide customers with the flexibility to build servers best suited to the Power architecture

Platinum Members

Member and Pipeline Diversity across the ecosystem

I/O Software Web 2.0 Chip Systems Firmware Technology Memory Linux Internet Data SoC Dev ODM Open Center Cloud Fab Networking ISV IP Dev OEM Source High Perf Storage Open Source Computing

IBM IBM Mellanox IBM IBM IBM Google Nvidia Fusion-io Tyan Google Teamsun Jülich Altera Micron Chuanghe Supercomput er Centre Suzhou Samsung Telco PowerCore Tech SK Hynix Servergy Xilinx Emulex Inspur VeriSilicon Key: ZTE Founding Members New Members since announce 100+ inquiries and active dialogues underway © 20146 IBM Corporation© 2014 IBM Corporation 6 The Power Charter: Commitment to IBM i

Innovation that . Extend new capabilities based on value of IBM i integration Matters H . Embrace mobile applications to transform client experience Y . Balance existing client investments with new cloud deployment models

Client Value . Enable rapid innovation and ROI, while leveraging existing IT investments . Lower IT costs through simplicity while delivering leading availability and security . Deliver premier client experience with enhanced Power support and services

Community Engagement . Foster social media technical interchange venues for the IBM i community . Engage with key client communities and industry advisory councils . Build future skills via investment in university partnerships and programs

. 100,000s of systems in 100,000+ enterprises . 115+ countries . Cross industry solutions Wholesale Distribution Computer Services

Finance Retail Insurance

Consumer Package Goods Travel & Transportation

Agribusiness Automotive Construction

Manufacturing Lodging Healthcare

Education Associations Local Government

Legal Services Accounting Services

Externalized & Externalizing Services Partners, Suppliers, Customers, Markets

Systems of Record

Analytics/Data Services Mobile Access

• POWER8 is a transformational technology – Designed for data and analytics, delivering significantly more performance than x86 – Delivering cloud efficiencies – Open innovation • Launching the first POWER8 systems: the best Scale-out systems in the industry – Linux on Power – a new approach • System Software: Delivering the intelligent IT infrastructure to support Cloud, Big Data, Analytics & Mobile – Opening up the world of Linux – New value in System Software stack • Solutions – Open innovation that matters – Can your infrastructure do this? (50x, 25x, ….) – Expanded portfolio of applications – Optimized solutions for CAMS – Data, Analytics, Java, a client’s Linux solution

• Enterprise Pools – transforming Enterprise IT for the Cloud

POWER9 Extreme Analytics Optimization POWER8 Extreme Big Data More Cores Optimization SMT+++ On-chip accelerators POWER7/7+ Reliability ++ 45/32 nm FPGA Support POWER6/6+ Eight Cores Transactional Memory On-Chip eDRAM PCIe Acceleration 65/65 nm Power-Optimized Cores POWER5/5+ Memory Subsystem ++  200+ systems in test 130/90 nm Dual Core SMT++ High Frequencies Reliability + Dual Core Virtualization + VSM & VSX Enhanced Scaling Memory Subsystem + Protection Keys+ SMT Altivec Distributed Switch + Instruction Retry Core Parallelism + Dynamic Energy Mgmt FP Performance + SMT + Memory Bandwidth + Protection Keys Virtualization 2004 2007 2010 2014

11 © 2014 IBM Corporation Scale-out Systems - DCMs and POWER8 Chips 1S & 2S servers use DCM (Dual Chip Module) . 1 DCM fills 1 socket …. Similar to POWER7+ 750 / 760 . 1 DCM has two Scale-out POWER8 chips . 1 DCM can provide 6-core, 8-core, 10-core or 12-core sockets

6-core Processor Chip A

362 mm2 S

M e Core Core Core

P . 22nm SOI w/ eDRAM a

Strengthen Cores k L2 L2 L2

s . 8 Threads per Core 8M L3 Caches Region

. R L3 Cache & Chip Intercon MemCtrl

P D Cache: 64KB e

o . L2: 512KB

S . L3: 8 MB per Region Total: 48MB n L2 L2 L2

Fine Grained Power Management n

k n Core Core Core

s . k

On Chip power management s Excellent I/O bandwidth per socket

DDR Interfaces

Intelligence Moved into Memory “L4 cache” 16MB • Scheduling logic, caching structures Scheduler & POWER8 Memory • Energy Mgmt, RAS decision point Link Management Cache – Formerly on Processor – Moved to Memory Buffer Processor Interface • 9.6 GB/s high speed interface • More robust RAS •“ On-the-fly” lane isolation/repair Performance Value • End-to-end fastpath and data retry (latency) • Cache  latency/bandwidth, partial updates • Cache  write scheduling, prefetch, energy

13 © 2014 IBM Corporation POWER8 Memory Organization Up to 32 total DDR ports Up to 410 GB/s DRAM Memory Chips Buffer Up to 8 high speed channels, Up to 8 GB/s per channel 128 16MB Up to 192 GB/s sustained 16MB 128 GB GB

128 128 GB 16MB 16MB GB

128 16MB 16MB 128 GB POWER8 DCM GB

128 16MB 128 GB 16MB GB

. Up to 1 TB / Socket . First POWER8 Systems: . 512 GB /Socket

Native PCIe Gen 3 Support POWER7 • Direct processor integration • Replaces proprietary GX/Bridge • Low latency • Gen3 x16 bandwidth (32 GB/s)

Transport Layer for CAPI Protocol • Coherently Attach Devices connect to GX PCIe Gen3 processor via PCIe Bus • Protocol encapsulated in PCIe I/O Bridge

PCIe Gen2 PCI Device PCI Devices

Virtual Addressing POWER8 • Accelerator can work with same memory addresses that the processors use POWER8 • Pointers de-referenced same as the host application • Removes OS & device driver overhead Coherence Bus Hardware Managed Cache Coherence • Enables the accelerator to participate in “Locks” as a normal CAPP thread Lowers Latency over IO communication model

PCIe Gen3 PSL Transport for encapsulated messages Custom Hardware Application Processor Service Layer (PSL) FPGA or ASIC • Present robust, durable interfaces to applications • Offload complexity / content from CAPP Customizable Hardware Application Accelerator • Specific system SW, middleware, or user application • Written to durable interface provided by PSL

Application Read/Write Syscall FileSystem

strategy() iodone() 20K Application Instructions Posix Async aio_read() LVM I/O Style API aio_write() strategy() iodone() User Library Disk & Adapter DD < 500 Shared Memory Pin buffers, Interrupt, Instructions Translate, unmap, Work Queue Map DMA, unpin,Iodone Start I/O scheduling

•Attach flash memory to POWER8 via CAPI coherent Attach •Issues Read/Write Commands from applications to eliminate 97% of instruction path length – CAPI Flash controller Operates in User Space •Saves 10 Cores per 1M IOPs 17 © 2014 IBM Corporation Power System Roadmap 2013 2014 Enhanced HMC POWER8 Management KVM

PowerVC PowerVP

4U Systems: S814 & S824 Power Linux Engines

Enterprise Pools 2U System: S822

2U Linux: S822L & S812L 18 © 2014 IBM Corporation Power April Announcements •New Scale-Out Servers with POWER8 technology – 2U servers: 2 socket – 4U servers: 1 socket and 2 socket •Linux-only server models (Not called “PowerLinux”) – 2U servers: 1 socket & 2 sockets •New Virtualization Management – IBM PowerKVM – Kernel Virtual Machine – PowerKVM for Linux-only servers •New HMC Functionality –Performance Monitoring

19 © 2014 IBM Corporation 1&2 Socket Servers • New Scale-Out Servers with POWER8 technology – 1 socket : 4U S814 – 2 socket: 2U and 4U S822 and S824 • Linux-only Power Systems (Not called “PowerLinux”) – 1 socket: 2U S812L – 2 socket: 2U S822L

Marketing name = “socket” then “number EIA/U”

For example S8 2 4

But ……

4U Server

PCIe Gen3 x16

2xUSB-3 Memory

Memory 2xHMC POWER8 1xSerial 2xUSB-2

Up to 18 SFF Bays 2xUSB-3

Slim DVD No SSD Cage

PCIe Gen3 x8 4x 1Gbt Enet 2x SAS Ports PCIe Gen3 x16

PCIe Gen3 x16 Memory 2xUSB-3 Memory 2xHMC POWER8 PCIe Gen3 x8 1xSerial 2xUSB-2 Memory

POWER8

SSD Bays * Up to 18 SFF Bays 2xUSB-3

* with backplane Slim DVD

23 © 2014 IBM Corporation POWER8 1S4U Scale-Out System Power S814 . Form Factor: 4U or Tower . Single Socket . Cores: 6 (3.0 GHz) or 8 (3.7 GHz) . Memory: Up to 512 GB . Slots: 7 PCIe Gen3 Full-high (Hotplug)

. Ethernet: Quad 1 Gbt / (x8 slot) . Integrated ports: USB (4/5), Serial (1), HMC (2) . Internal Storage . DVD . 12 SFF Bays -- Split Backplane: 6 + 6 . or 18 SFF Bays with Easy Tier with 7GB write cache

. Hypervisor: PowerVM . OS: AIX, IBM i (P10 software tier), Linux

3 Yr Warranty

24 © 2014 IBM Corporation POWER8 2S4U Scale-Out System Power S824 . Single Socket populated . Cores: 6 (3.8 GHz) or 8 (4.1 GHz) . Memory: Up to 512 GB . Slots: 7 PCIe Gen3 full-high (Hotplug) . Both Sockets populated . Cores: 12 (3.8 GHz), 16 (4.1 GHz), or 24 (3.5 GHz) .Memory: Up to 1 TB . Slots: 11 PCIe Gen3 full-high (Hotplug)

. Ethernet: Quad 1 Gbt / (x8 slot) 3 Yr Warranty . Integrated ports: USB (4/5), Serial (1), HMC (2) . Internal Storage . DVD . 12 SFF Bays -- Split Backplane: 6 + 6 . or 18 SFF bays & 8 SSD bays with Easy Tier with 7GB write cache

. Hypervisor: PowerVM . OS: AIX, IBM i (P20 software tier), Linux

Nothing in April annc letters on this topic – This is not formally announced. Information shared for your sales planning purposes. Subject to change •IBM is finalizing plans for a POWER8-based offering for low-core application and clients requirements with POWER8 technology benefits – Follow-on to the existing 720 4-core offering. Gives clients an IBM i P05 software tier to provide more competitive TCA pricing than POWER8 6-core. – Using 3GHz cores (like the 6-core S814) – Like the POWER7 4-core offering – no feature code I/O drawers like #5887 and no future PCIe expansion drawer. (Fibre Channel attached drawers/SANs supported.) – Like the POWER7 4-core -- Lower memory maximum than 6-core -- ?? 64GB ?? – TBD max of SFF-3 drives in system unit: ??8?? ??10?? ??12?? ??18?? •POWER7 4-core max was eight – Power S814 6-core and 8-core systems will provide an IBM i P10 software tier offering with even higher value than previous systems •Currently Plan to Announce mid July 2004* and GA Sept 2014*

26 © 2014 IBM Corporation* IBM plans are subject to change or cancellation without notice. POWER8 2S2U Scale-Out Comparison - S822 Power 730 Power System S822 Processor POWER7+ POWER8 Sockets 2 1 (Upgradeable) / 2 Cores 8 / 12 / 16 6 / 10 or 12 / 20 Maximum Memory 512 GB @ 1066 MHz 256 / 512 GB @ 1600 MHz Memory Cache No Yes Memory Bandwidth 136 GB/sec 192 / 384 GB/sec Memory DRAM Spare No Yes System unit PCIe slots 6 PCIe Gen2 LP 6 / 9 PCIe Gen3 LP CAPI (Capable slots) N / A Yes (one per socket) PCIe Hot Plug Support No Yes PCIe Expansion Drawers Optional PCIe Gen1 SoD Gen3 IO bandwidth 40 GB/sec 192 GB/sec Ethernet ports Quad 1 Gbt in x4 slot Quad 1 Gbt in x8 slot 12 SFF-3 SAS bays in system unit 3 or 6 SFF-1 Or 8 SFF-3 + 6 SSD Integrated write cache Optional 175MB Optional effectively 7GB Easy Tier Support No Yes Integrated split backplane No Yes ( 6 + 6 ) Service Processor Generation 1 Generation 2

Power 730 Power System S822L Processor POWER7+ POWER8 Sockets 2 2 Cores 16 24 Maximum Memory 512 GB @ 1066 MHz 512 GB @ 1600 MHz Memory Cache No Yes Memory Bandwidth 136 GB/sec 384 GB/sec Memory DRAM Spare No Yes System unit PCIe slots 6 PCIe Gen2 LP 9 PCIe Gen3 LP CAPI (Capable slots) N / A Yes (one per socket) PCIe Hot Plug Support No Yes PCIe Expansion Drawers Optional PCIe Gen1 SoD Gen3 IO bandwidth 40 GB/sec 192 GB/sec Ethernet ports Quad 1 Gbt in x4 slot Quad 1 Gbt in x8 slot 12 SFF-3 SAS bays in system unit 3 or 6 SFF-1 Or 8 SFF-3 + 6 SSD Integrated write cache Opt 175MB Opt effectively 7GB Easy Tier Support No Yes Integrated split backplane No Yes ( 6 + 6 ) Service Processor Generation 1 Generation 2

• 720 POWER7+ (1 socket) • S814 (1 socket) – 4-core 3.6 GHz 28,400 – 4-core xxxxx xxxxxx – 6-core 3.6 GHz 42,400 +40% – 6-core 3.0 GHz 59,500 – 8-core 3.6 GHz 56,300 – 8-core 3.7 GHz 85,500 +50%

• 740 POWER7+ (1 or 2 socket) • S824 (1 or 2 socket) – 6-core 4.2 GHz 49,000 – 6-core 3.8 GHz 72,000 – 12-core 4.2 GHz 91,700 – 12-core 3.8 GHz 130,000 +40%

– 8-core 3.6 GHz 56,300 – 8-core 4.1 GHz 94,500 – 16-core 3.6 GHz 106,500 – 16-core+60% 4.1 GHz 173,500

– 8-core 4.2 GHz 64,500 – 12-core 1-socket not offered +90% – 16-core 4.2 GHz 120,000 – 24-core 3.5 GHz 230,500

24 Core Systems

•2.0X + 2X Better PerformancePerformance than nearest Intel competition

IBM S824 Fujitsu HP ProLiant Cisco UCS RX300 S8 BL460c C240 M3

Gen1 x8 Gen2 x8 Gen3 x8 2.5 GHz

• Though these cards physically look the same … and fit in the same slots • Gen3 cards/slots have up to 2X more bandwidth than Gen2 cards/slots • Gen3 cards/slots have up to 4X more bandwidth than Gen1 cards/slots

– More virtualization – More consolidation saving PCI slots and I/O drawers – More ports per adapter 18 16 14 Peak 12 Sustained A Gen1 x8 PCIe adapter has a theoretical max (peak) 10 bandwidth of 4 GB/sec. 8 6 A Gen2 x8 adapter has a peak bandwidth of 8 GB/sec. A 4 Gen3 x8 adapter has a peak bandwidth of 16 GB/sec. 2 0 Gen1 Gen2 Gen3

• POWER7-supported PCIe adapters supported on POWER8

– Initial GA: robust list

– Modest set of PCIe adapters not supported on POWER8 Scale- out Servers -- mostly elderly or low volume

• Remember, No PCI-X adapters on POWER8 – This means no SCSI – For IBM i, means no IOPs (no SDLC)

12 SFF SAS bays 6+6 SFF SAS bays 18 SFF SAS bays 1 SAS controller 2 SAS controllers Dual SAS controllers 4U server No write cache No write cache 7.2**GB cache RAID-0,1,5,6,10 RAID-0,1,5,6,10 RAID-0,1,5,6,10 DVD bay DVD bay DVD bay d 8-bay SSD cage*** Stage bilit External SAS ports availa y Easy Tier function Availability plan: - eConfig 15 July - GA Sept

* Uses one x8 PCIe slot ** 1.8GB physical write cache provides up to 7.2GB effectively with compression ***SSD cage not available on mdl 41A, Required on mdl 42A with expanded function 33 © 2014 IBM Corporation POWER8 4U Front View Base RAID 0,5,6,10 Feature: 12 SFF HDD/SSD disks Split disk 6+6 feature (optional)

12 SFF HDD/SSD Disks

2 USB 3.0 ports

Op-panel

DVD High Performance RAID BIG write cache (optional)

8 1.8” SSD disks (behind bezel)

18 SFF HDD/SSD disks 2 USB 3.0 ports Op-panel

DVD

SFF-3 Block Formatted with 512 or Linux only with 512 or Formatted with 528 or 4224 HDD size 4096 byte sectors 4096 byte sectors byte sectors 10k 5xx 300 GB #ESDR * 300 GB #ELDR 283 GB #ESDS * 10k 5xx 600 GB #ESD5 600 GB #ELD5 571 GB #ESD4 10k 5xx 1.2 TB #ESD9 1.2 TB #ELD9 1.1 TB #ESD8 15k 5xx 146 GB #ESDT * 146 GB #ELDT 139 GB #ESDU * 15k 5xx 300 GB #ESDB 300 GB #ELDB 283 GB #ESDA 15k 4k 300 GB #ESFB 300 GB #ELFB 283 GB #ESFA 15k 4k 600 GB #ESFF 600 GB #ELFF 571 GB #ESFE

* Staged eConfig support (27 May) and GA (25 July)

AIX/Linux/VIOS Linux only IBM i formatted SFF-3 SSD (528 byte sectors) (528 byte sectors) (528 byte sectors) eMLC Gen3 387 GB #ES0L 387 GB #EL14 387 GB #ES0M eMLC Gen3 775 GB #ES0N 775 GB #EL13 775 GB #ES0P

The above features use SFF-3 or Gen3 carriers/trays and can be placed in the SFF SAS bays of the POWER8 servers

AIX/Linux/VIOS Linux only IBM i formatted SSD (528 byte sectors) (528 byte sectors) (528 byte sectors) eMLC Gen3 387 GB #ES16 387 GB #ES46 387 GB #ES17

#ES16 and #ES17 are identical, but have different feature codes to help IBM config tools properly configure the system.

The above features placed in the SSD cage which is ordered with the dual IOA backplane feature on the 2U and the 2S4U server. The cage features are: For 2U: …. 6-bay cage #EJTL (Linux only #EL0H) For 4U S824 …. 8-bay cage #EJTM Note: cage not supported on 2U 1-Socket or on 4U 1-Socket server

4U 2U 1S 4U 2S 4U 1S 2U 2S 2U

Max EXP24S supported 14 14 14 14

Total SFF-2 disk drives supported in EXP24S 336 336 336 336 Total SFF-2 SSD drives supported in EXP24S 168 168 168 168

The above max calculated using SAS adapters which can attach up to 4 drawers per adapter (#EJ0J/#EJ0M/#EL3B) and then reducing it in consideration of limitation of SAS cables contained in cable management arm.

Max of 14 includes both EXP24S attached via PCIe adapters and/or SAS ports on the rear of the server with expanded function backplane

EXP24S ordered with #5887 for mdl 22A, 41A, 42A; ordered as #EL1S for mdl 22L

512-byte or 4096-byte HDD 512-byte or 4096-byte sectors (JBOD) 528-byte or 4224-byte Block sectors (JBOD) “Linux” formatted sectors (RAID) USA List price for SFF-2 Size “AIX/Linux” formatted Linux only “IBM i” formatted model 720 10k 5xx 300 GB #1925 300 GB #EL1N 283 GB #1956 $ 798 10k 5xx 600 GB #1964 600 GB #EL1Q 571 GB #1962 $1,200

10k 5xx 900 GB #1752 900 GB #EL1R 856 GB #1738 $1,500 10k 5xx 1.2 TB #ESD3 1.2 TB #ELD3 1.1 TB #ESD2 $1,500 15k 5xx 146 GB #1917 146 GB #EL1M 139 GB #1947 $ 498 15k 5xx 300 GB #1953 300 GB #EL1P 283 GB #1948 $ 950 15k 4k 300 GB #ESFB 300 GB #ELFB 283 GB #ESFA TBD 15k 4k 600 GB #ESFP 600 GB #ELFP 571 GB #ESFE TBD

SSD Block 528-byte sectors 528-byte sectors 528-byte sectors USA List price for SFF-2 Size For AIX/Linux rules For Linux rules For “IBM i” rules model 720 eMLC2 5xx 387 GB #ES0C 387 GB #EL1L 387 GB #ES0D eMLC3 5xx 387 GB #ES19 387 GB #EL19 387 GB #ES1A

eMLC3 5xx 775 GB #ES0G 775 GB #EL3G 775 GB #ES0H eMLC1 5xx 177 GB #1793 177 GB #EL1K 177 GB #1794 withdrawn

IBM USA suggested list prices as of Oct, 2013, for Power 720/740. Reseller prices may vary. Prices subject to change without notice.

#EJ0J / #EJ0M #EJ0L No cache Huge cache

• First PCIe Gen3 adapters introduced by Power Systems • Most powerful SAS adapters ever created by Power Systems * * IBM Development team not aware of a more powerful SAS adapter in the world

– Supports 2X more SSD devices than Gen2 SAS adapter – Up to 10X more performance than Gen1 SAS Adapter – 2X more performance than Gen2 SAS adapter

• #EJ0L effectively has 6X more write cache

Comparing large cache SAS Adapters

PCIe SAS – PCIe Gen 3 1Q 2014 Designed for newest SSD 800k-ish IOPS * Up to 96 HDD Up to 48 SSD PCIe SAS – PCIe Gen 2

4Q 2011 * restricted by PCIe Gen1 slot 1st SAS adapter designed fo SSD 300-400k IOPS Up to 72 HDD Up to 24 SSD

PCI-X SAS 2Q 2009 Est 70-80k IOPS SAS adapter technology – designed by IBM Up to 48-60 HDD …. Power Systems with Power Systems reliability, Also can do some SSD ruggedness, integrity, performance,

–IBM plans to introduce an I/O drawer which will expand the number of PCIe Gen3/Gen2 slots available on POWER8 processor-based Power Systems.

–IBM plans to enable Coherent Accelerator Processor Interface (CAPI) technology capabilities for all POWER8 processor-based Power Systems using industry standard accelerator technologies as a priced feature. IBM intends to build solutions with its partners in order to further increase performance through faster computational efficiency and by requiring fewer resources to accomplish tasks through direct integration of workload accelerator(s) in the system.

–IBM plans to introduce a business insight solution to provide IBM customers with a fully integrated solution for structured and unstructured data analytics using the Power S822L running Linux, a GPFS Storage Server using Power servers, select IBM Platform Computing software and field-programmable gate array (FPGA) compression.

IBM’sIBM’s statementsstatements regardingregarding itsits plans,plans, directions,directions, andand intentintent areare subjectsubject toto changechange oror withdrawalwithdrawal withoutwithout noticenotice atat IBM’sIBM’s solesole discretion.discretion. InformationInformation regardingregarding potentialpotential futurefuture productsproducts isis intendedintended toto outlineoutline ourour generalgeneral productproduct directiondirection andand itit shouldshould notnot bebe reliedrelied onon inin makingmaking aa purchasingpurchasing decision.decision. TheThe informationinformation mentionedmentioned regardingregarding potentialpotential futurefuture productsproducts isis notnot aa commitment,commitment, promise,promise, oror legallegal obligationobligation toto deliverdeliver anyany material,material, codecode oror functionality.functionality. InformationInformation aboutabout potentialpotential futurefuture productsproducts maymay notnot bebe incorporatedincorporated intointo anyany contract.contract. TheThe development,development, release,release, andand timingtiming ofof anyany futurefuture featuresfeatures oror functionalityfunctionality describeddescribed forfor ourour productsproducts remainsremains atat ourour solesole discretion.discretion.

41 © 2014 IBM Corporation POWER8 Enterprise Systems - Statements of Direction POWER8 IBM plans to… Enterprise Systems •… bring POWER8 capability to the full Power Systems portfolio, with the intent to deliver the most scalable, highest performing enterprise-class Power System with an advanced version of the POWER8 processor.

•… to provide upgrade paths from the current POWER7+ Power 770 and 780 servers to enterprise-class • Architectural strengths POWER8 processor-based servers. of Power 795 • Modularity & efficiencies •… preserve client investment in Power Systems by enabling of Power 770/780 POWER8 processor-based Power systems to interoperate • Performance and innovation of POWER8 and share Mobile Capacity on Demand (COD) resources • Greater Scalability & with POWER7/7+ processor-based Power systems in a Reliability single Power Enterprise Pool • Increased Efficiency (Space, Energy)

42 © 2014 IBM Corporation Power Enterprise Pools with Mobile and Elastic COD Continuous Availability Designed to eliminate planned and unplanned downtime or the most demanding workloads Extreme Flexibility Easily manage the changing workload demands of today’s dynamic, real time business environment. Leadership IT Efficiency Combining the economic efficiency of Elastic Cloud pricing with systems designed for 80-90% utilization Ready for the Future Seamlessly integrate next generation technology in your Power Enterprise Pool

Active - Active Planned Maintenance Resource Balancing Periodic Demand Peaks

32 System Activate 64 64 Inactive 96 64 64 being 64c for Inactive Inactive Inactive Inactive Inactive Maintained Maint. 32c Active 64c 64c 64c 64c 64c Active Active Active 64c 32c Active Active Active Active

43 © 2014 IBM Corporation Power Enterprise 2-Step to POWER8 (via Letter 112) Don’t wait! Buy POWER7+ in 2014, get immediate benefits, investment protection and future flexibility – at similar price compared to new POWER 8 e c i r 1 P Upgrade to POWER8 4 Target Power Upgrade to POWER8 Mobile CoD “Sweet Spot” Clients with 2 3 Power 770/780 installed New POWER8 (prime target accounts based on New POWER7+ propensity to buy analytics)

Upgrade to POWER7+ >1500 New POWER8 POWER7+ POWER7+ Accounts 2-step with upgrade(s) Power Enterprise Pool New POWER8 POWER7+ POWER8 Mobile CoD

Single system upgrade Power Enterprise Pool for migration or box swap 1. Purchase new or Upgrade to POWER7+ 1. Purchase a POWER7+ server with Mobile CoD 2. Model upgrade to POWER8 2. Purchase a new POWER8 server & integrate with Power Enterprise Pool 3. Transition capacity & applications to POWER8 L112 program is available and supporting client requests today for via Mobile CoD and PowerVM info on High End POWER8 content or for L112 pricing. w3.ibm.com/systems/powerbids 4. Use POWER7+ system for HA, etc. or remove

For more information, see presentation at these links [need IBM and BP links] Contacts: L112 Juan Pablo Parga/Mexico Power 770+ Georger Gaylord/Evansville Power 780+, 795 Bill Casey/Austin

2008 2009 2010 2011 2012 2013 2014 2015

6.1 7.1 i next i next+1 ……… 7.2… … … … … … 6.1.1 7.1 TRs

. IBM i 7.1 introduced Technology Refreshes . IBM i 7.2 incorporates 7.1 TRs and adds new capabilities . TRs will transition to 7.2 over time . New releases only required for new capabilities beyond scope of TRs

** All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.

Derive new Leverage insights external from critical storage to business data drive HA/DR

Deploy Transform Cloud business infrastructure apps with mobile

Focus on Exploit securing new storage business technologie assets s

– Growth Areas: Mobile, Graphical & Extending Value

– Delivering Capabilities where needed: Cloud & In-House

– Applying POWER with POWER8

– Powerful Advanced Middleware

• Integrating Advanced Technology

– DB2 Security, Performance & Automation

– Development Platform, Language Features & Tools

– Integrated Security & Management

– Growing Beyond the Limits

Security – Protect business critical data using data-centric design with RCAC – Secure remote journaling with SSL Application development – Improved ability to build, maintain and extend complex database application architectures Database Engineering (DBE) – Timestamp precision control (0 thru 12) – Partitioned tables automatically reposition a row when updated Performance – SQL Query Engine (SQE) supports OPNQRYF & Query/400 – Other SQE enhancements – Use SQL to see temporary storage consumption

Problem: Anyone who has the authority to grant privileges also has the authority to perform operations that require those privileges. Should the security administrator be able to access the data within tables?

IBM i 7.2 with RCAC

• Enable the management of security, without exposing the data to be read or modified.

• A user with security administration function usage (QIBM_DB_SECADM) will be able to grant or revoke privileges on any object to anyone, even if they do not have the SELECT privilege.

• Complementary to table level security

• Subsetting access to only the required data for a task

• Controls access to a table at the row, column, or both

• Two sets of rules – Permissions for rows – Masks for columns

Application Development •Increased timestamp precision •Named and Default parameter support on UDF/UDTFs •Function resolution using casting rules •Use of ARRAYs within UDF/UDTFs •Obfuscation of SQL triggers •Built-in Global Variables •Expressions on PREPARE & DBA/DBE EXECUTE IMMEDIATE •Queued exclusive locks control •Autonomous procedures •SQL Server Mode detail in collection services •CURRENT USER special register •SQL Details for Jobs enhancement •LPAD and RPAD scalar functions •Improved VARCHAR & LOB space management •TRUNCATE TABLE •Automatic record movement between partitions •Constants in LANGUAGE SQL routines •Unified debugger support for SQL functions Navigator for DBA/DBE •Datetime scalar function improvements •Performance Data Investigator (PDI) -Investigate Data – DB2 category Navigator for DB Application Development -SQL Plan Cache perspectives •Support of all new SQL features -Physical vs Logical I/O breakdowns -Permissions -And more… -Masks •On Demand Performance Center -Named arguments and parameter defaults -Observance of Native Queries -Obfuscation of Triggers -Advanced Monitor Compare -Arrays in user-defined functions -Create based ON 51 © 2014 IBM Corporation

A d a p t i v e

Q u e r y

P r o c e s s i n g

( Application Development

7.2 7.2

• New Free Format RPG ctl-opt bnddir('ACCRCV'); – New Syntax; new style dcl-f custfile usage(*update); dcl-ds custDs likerec(custRec); – Modern behavior dcl-f report printer;

read custfile custDs; dow not %eof; • Conversion tool changes old RPG to if dueDate > %date(); // overdue? RPG Free Format sendOverdueNotice(); write reportFmt; – Arcad Converter exec sql insert :name, :duedate into mylib/myfile; – Linoma Software endif; read custfile custDs; enddo; *inlr = '1'; • More added only in 7.2 – Key CCSID & Timestamp support dcl-proc sendOverdueNotice; sendInvoice (custDs : %date()); end-proc;

• RPG Open Access • XML Services • JTOpen Lite • PHP – Zend Server for IBM i, Zend Studio • IBM Connections • IBM Notes Traveler • IBM Mobile Database • DB2 WebQuery • Rational HATS • And more …

+ PLUS – Tools from Industry Vendors

• IBM i HTTP Server now running Apache 2.4 – Improved performance – SNI (Server Name Indication) support – OCSP (Online Certificate Status Protocol) support – Independent Subsystems

• IBM i Integrated Application Server – now powered by Liberty 8.5 – Runs on Java 7 & 7.1 – Updated to the latest web specs - JCA 1.6 , JSR 236 – Replacement for Tomcat – runs on any platform – Upward compatible to full WebSphere

• Integrated Wed Services Server – now powered by WAS Liberty & Jax-WS – Faster and better compliance – JAX-WS SOAP web service container - Latest industry standard

• Performance & Usability –New browsers –My Favorites –Quick Search • PTF management –Installed PTF Navigation –Load/apply PTF on single or group systems • Message Queue monitor –Based on the same CIM infrastructure –Filter messages based on rules –Trigger action to handle messages automatically • System monitor –User defined IBM i OS metrics monitor –Graphical displays of performance trend –User defined event automation • Database –Create new function and procedure –DB Performance Metrics 56 © 2014 IBM Corporation Collection Services & Performance Data Investigator – 7.2

Fast Search – Enter metric see all charts its on!! • Significant enhancements to PDi – New Collection Services Metrics – Batch Model – System Monitoring – New PDI Perspectives – Enhanced Left Hand Navigation

Select package and perspective from left hand

red asu Me

ed del Mo

• Access your IBM i from ANY web enabled mobile device

• Basic System and Management function – Job Management – Messages iPhoneiPhone – Printer output iPadiPad • Spool files to PDFs Android – 5250 emulator Surface – Run SQL Scripts! – Much more

Tech Preview with 7.2 GA

Application BRMS Runtime Expert

–Provides ability to ‘instantly’ switch access from production IBM i DS8000 instance to Prod LPM remote DS8000 –Switch can happen automatically in case of DS8000 failure –Switch can be manually triggered for planned maintenance –Affinity can be defined so an LPM switch triggers a DS8000 switch

Metro SYSBAS SYSBAS –DS8000 storage servers only Mirror –IASP based replication not yet supported

+ More PowerHA 7.2 Enhancements

61 © 2014 IBM Corporation PowerVP - Virtualization Performance Intelligence PowerVP provides performance intelligence to proactively address performance issues mapping virtual workloads to physical hardware.

Client Pain Points PowerVP Solution

Complexity and time required to  Simplifies management and performance pinpoint performance bottlenecks measurement of virtualized systems Lack of visibility of placement of VMs within a server’s physical  Reduces cost of resolving performance hardware issues

 Difficult to go back in time to  Improves detection of performance diagnose detailed performance bottlenecks before they cause a issues slowdown Lack of performance health metrics for virtualized workloads  Provides a quick view of performance health

 Provides performance information to help optimize virtualized systems EW N  Understand the mapping of virtualized workloads to physical hardware  Accelerates identifying performance bottlenecks  Operational health status

Announce - 10/7 GA - 11/15 • Real-time continuous graphical monitor • Replay option similar to a dvr replay of saved performance Real time performance data information which • Provides mapping of virtual workloads to the physical CPU & identifies performance Memory resources bottlenecks • Customizable thresholds for normal, warning, problem & Graphical display inactive states showing virtualized • System level Server information showing all running VMs workloads health resources mapped to hardware • VM level drill down showing performance information for all VM types including AIX, Linux and IBM i

This shows the Drill down view on a Node. The color coding map the VMs to the physical cores.

CPU Section Snapshot  Proactive VIOS Health Check

 Provides Advise on how to Tune the VIO Server Before Problems Occur

 Shipped with PowerVM 2.2.2

 Reports are viewed with a web browser

 Can be use as a historical measure of performance

• IBM Domino 9.0.1 – Enterprise messaging & collaboration • IBM Notes Traveler 9.0.1 – Mobile access to your mail & calendar • IBM Connections 5.0 – Enterprise social software • IBM Sametime 9.0 – Real-time unified communication • Additional products – IBM Enterprise Integrator 9.0.1 • Exchange Domino data with 3rd party data source IBM i Supports Consolidation of x86 Workloads!

For the latest information, see: https://www.ibm.com/developerworks/ibmi/social http://www.ibm.com/systems/resources/releasesu pport.pdf

• Enhanced Data in Audit Records – Significant changes to record both the "old" and "new" values in many security audit records (prior release audit record data included only the "new" values)

• System SSL (Security updates)

• PASE Updates – AIX 7.1 – OpenSSL

IBM i does not have the “Heartbleed” vulnerability. Never did. No fix needed.

POWER7+ and POWER8 systems deliver compelling application performance, security and application optimization; lower operational management costs; and it will be easier to upgrade to take advantage of new technology.

POWER7+ Systems 32 nm 22 nm

4Q2012-1Q2013 2014-2015

IBM i 7.2 runs on IBM POWER6/6+ & POWER7/7+ & POWER8 servers

Servers IBM i 5.41 IBM i 6.1 IBM i 7.1 IBM i 7.2

POWER8 3  POWER7/7+ PS700/701/702/730/704, Power 710, 720, 730, 2 740, 750, 760, 770, 780, 795, Pureflex p260/460    POWER6+ JS23/43, 550*, 560 POWER6 JS12/22    4 POWER6+ 520* POWER6 520*, 550*, 570, 595     4 POWER5/5+ 515, 520, 525, 550, 570, 595    800, 810, 825, 870, 890   270, 820, 830, 840  1 – IBM i V5R4 is no longer marketed or supported other than through extended service contracts 2 – POWER7+ 750/760 do not support native I/O. IBM i 6.1 on PureFlex must be client of IBM i 7.1 or later 3 – Requires IBM i 7.1 Technology Refresh 8 4 – no IOP or HSL support 69 © 2014 IBM Corporation Power Systems are Designed for Big Data

C ompute Memory IO Netw ork S torage

Flexible, fast cores Large working data Large IO Fast access to and threads to run set to maximize bandwidth to deal volumes of high analytics algorithms business insights with data in motion priority stored data

Designed for Data and delivering 2X the performance of x86

Up to 26 TB of 4X the threads per 5X to 6X the memory >5X the IO Bandwidth internal flash core of x86 bandwidth of x86 of POWER7 Systems Automated tiering of with 30% higher with 2.7X the Far outpacing x86 locally attached HDD frequency memory capacity and SSDs

Open innovation from POWER8 unique CAPI technology

Distributed store Compression 3X query Texas Memory accelerated by RDMA acceleration enables acceleration with Systems Flash delivering 10X 4X storage capacity DB2 on Power/ enabling up to 80 throughput, 7X improvement with 2X Linux using NVIDIA TB of memory latency for in-memory increase in effective GPUs * stores bandwidth *

Claims are not final as testing is still in progress. All compares except Watson are versus commodity x86 unless otherwise noted 70 © 2014 IBM Corporation * Offerings target 2H14 Power Scale out Linux Systems Built on open technology with innovation to put data to work Designed for Data •Over 2X the performance / core vs. x86 in target workloads •Industry’s largest Cache and Memory and I/O Bandwidth •Greater capacity for demanding data / analytic applications •Industry leading RAS (Built-in RAID, Hot Plug PCIe Gen 3) Enhanced for superior cloud economics and efficiency •Guaranteed utilization, Cloud/Virtualization mgmt built on OpenStack •Designed to increase efficiency and flexibility to run the most demanding workloads in the cloud with greater resiliency (e.g., High performance, split backplane; SR-IOV capable I/O*) Enabling open innovation Linux Systems •Extendable with CAPI (Coherent Application Processor Interface)* 1 or 2 sockets 10 or 12 cores/socket Up to 1 TB of Memory Optimized for Linux workloads and environments Linux Workloads •Analytics: Cognos, Big Data/BigInsights/Hadoop •DB2 & new Open Source Data (e.g., EnterpriseDB, NoSQL, …) Power S824L (SOD*) •Websphere / Java •Mobile / Web 2.0 / Javascript / PHP / Perl Linux Environments Power S822L •Choice of Hypervisor: PowerVM or PowerKVM •Community supported OpenStack based Cloud Management Power S812L

Dell PowerEdge HP ProLiant IBM Power Comparable TCA R720 DL380 G8 S822L Linux on Intel $28,366 $29,829 $29,264 Ivy Bridge + VMware Vs. Linux on POWER8 with PowerVM

Server list price* -3-year warranty, on-site $12,605 $14,068 $14,895 Virtualization $10,064 $ 10,064 $9,880 - OTC + 3yr. 9x5 SWMA VMware vSphere Enterprise 5.1 VMware vSphere Enterprise 5.1 PowerVM for IBM PowerLinux Linux OS list price $5,697 $5,697 $4,489 - RHEL, 2 sockets, unlimited Red Hat subscription and Red Red Hat subscription and Red Red Hat subscription and IBM guests, 9x5, 3 yr. sub./ supp. Hat support Hat support support Total list price: (Total cost of acquisition) $28,366 $29,829 $29,264

Server model Dell R720 HP Proliant DL380p G8 IBM Power S822L Processor / cores Two 2.7 GHz , E5-2697, Ivy Bridge, 12-core processors Two 3.4 GHz POWER8, 10-core Configuration 64 GB memory, 2 x 300GB 15k HDD, 10 Gb two port Same memory, HDD, NIC

• Major Linux distributions supported: Suse, Red Hat, Ubuntu

• Simplifies porting of applications to Linux on Power (Little Endian)

• PowerKVM provides server virtualization focused on new Linux workloads for Power Systems

• Seamless transition for existing Linux administrators to adopt Power Linux Virtualization without any training

• No HMC or other traditional IBM consoles - just the normal Linux management and OpenStack options (PowerVC, off the shelf Openstack or local Linux tools)

Leverage systems that are…

… optimizing big data and analytics.

… enabling superior cloud economics.

… revolutionizing the way IT is created

and consumed.