ARE YOU OPEN TO INNOVATION? ®

IBM Canada Ltd.

Open Computing and Linux

Jim Elliott Advocate – Infrastructure Solutions Manager – System z Operating Systems IBM Canada Ltd.

© 2006 IBM Corporation IBM Canada Ltd. ®

Agenda

ƒ Open Computing ƒ Linux ƒ Linux and Open Computing @ IBM

2 LinuxWorld Conference & Expo 2006-04-26 ARE YOU OPEN TO INNOVATION? ARE YOU OPEN TO INNOVATION? ®

IBM Canada Ltd.

Open Computing

© 2006 IBM Corporation IBM Canada Ltd. ®

Adaptability is vital

“It is not the strongest of the species that survives, nor the most intelligent; it is the one that is most adaptable to change.” Charles Robert Darwin (1809-82)

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Open computing goals

ƒ Ensure flexibility ƒ Ensure interoperability ƒ Avoid vendor lock-in ƒ Drive cost effectiveness ƒ Ensure future access to information ƒ Ensure a level playing field for competition ƒ Maximize freedom of action

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The principles of open computing

ƒ Open standards: – Promoting interoperability by using open published specifications for APIs, protocols and data and file formats ƒ Open architecture: – Building loosely coupled, flexible, reconfigurable solutions ƒ Open source software: – Promotes standards – Leverages community development and collaborative innovation

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Why standardization?

ƒ Standardization of the rail network enabled industrialized America and Europe – The connecting platform fueled growth, creating new business opportunities – This increased factory efficiencies by driving better connection with resources – This enabled new distribution models and fundamentally changed the marketplace and how it operated ƒ Other technologies had similar effects: – The electricity grid – The national highway systems – The Internet – Web services and industry-specific standards?

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Open standards

ƒ Published without restriction ƒ Freely available for adoption by the industry ƒ Control by an open industry organization ƒ Implemented by offerings available in the market

Standards evolution Need Î Initiator Î Core group Î Standards body

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An important trend in maximizing the value of IT

Technology Closed Î Open Standards are owned and Details of standards are controlled by the public available to all: no single firm sector but are not freely has control over how they evolve available Public Example: Cryptography Examples: TCP/IP, HTML, XML

Î Technology may be Standard interfaces are made

Control standard, but details are available, but owner has control not made available beyond over how the standard evolves the firm and may charge for use Private Example: Landmark Examples: Java, .Net Graphics

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An open computing policy roadmap

1. Insist on open standards as a matter of policy... be pragmatic about it 2. Focus on interoperable IT systems 3. Avoid procurement of proprietary, non-open standards based solutions 4. Evaluate Open Source solutions on equal footing with commercial solutions 5. Reject mandates or preferences based on development model 6. Insist on open File formats 7. Adopt open computing as an underlying philosophy Insist on openness, but make pragmatic business oriented decisions based on features, training cost, availability of skill, interoperability and value for money

10 LinuxWorld Conference & Expo 2006-04-26 ARE YOU OPEN TO INNOVATION? IBM Canada Ltd. ® Open source software www.opensource.org

ƒ Software whose source code is ƒ Examples of open published and made available to the source software: public – Apache – web server – Community develops, debugs, – Eclipse – application maintains development – “Survival of the fittest” – peer review – Gnome – desktop – Generally high quality, high environment performance software – Mozilla – browser, – Superior security – on par with other mail, calendar UNIXes – OpenOffice.org – ƒ Often built by community productivity suite ƒ Redistribution rights – Perl – language – Samba – file/print ƒ May be a reference implementation of – SendMail – mail server an open specification – TCP/IP – networking

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Five principles of open source software

1. Licensees are free to use Open Source software for any purpose whatsoever 2. Licensees are free to make copies of Open Source software and to distribute them without payment of royalties to a licensor 3. Licensees are free to create derivative works of Open Source software and to distribute them without payment of royalties to a licensor 4. Licensees are free to access and use the source code of Open Source software 5. Licensees are free to combine Open Source and other software

Source: Larry Rosen – Open Source, Open Standards Conference – September 15, 2004

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Can OSS co-exist with commercial software?

ƒ Most OSS licenses allow combination and distribution of OSS and Commercial source code under a commercial license ƒ Some commonly encountered OSS Licenses (BSD, MIT, X11, Apache) don’t require modifications to original OSS to be published upon redistribution ƒ GPL allows commercial applications to be built on top of Linux to remain commercial – Application can be licensed under commercial license of choice – No need to disclose source code of such applications ƒ LGPL Libraries can be dynamically linked to arbitrary commercial code – No requirement to release commercial code under LGPL ƒ Decision to use OSS is just another business decision ƒ License terms need to be understood before beginning to work with OSS

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Why is open source important?

ƒ Can be a major source of innovation – Innovation can happen anywhere – any time – Development through “open communities” leads to potentially broad ideas and creativity ƒ Community Approach – Internet has changed how enterprises address technical innovation – Shapes IBM technical leaders thinking and approach to broad collaboration ƒ Good approach to developing emerging standards – Popular Open Source projects can become de facto / open standards – Wide distribution/deployment ƒ Enterprise customers are asking for it – Increase choice and flexibility – adoption/use of Open Source can reduce time to market

14 LinuxWorld Conference & Expo 2006-04-26 ARE YOU OPEN TO INNOVATION? IBM Canada Ltd. ® Apache has become the standard web server news.netcraft.com ƒ Totals for active servers across all domains ƒ As of April 1, 2006 – Apache • Sites: 24,826,483 • Share: 65% – Microsoft IIS • Sites: 9,946,789 • Share: 26%

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It is all about freedom of choice

ƒ “Free software is a matter of liberty, not price. To understand the concept, you should think of free as in free speech, not as in free beer.” – Richard Stallman, Free Software Foundation ƒ “It is not about Free. It's about Freedom. The freedom to collaborate. The freedom to innovate.” – Nick Donofrio, IBM

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Linux

© 2006 IBM Corporation IBM Canada Ltd. ®

What is Linux?

ƒ A “UNIX-like” Operating System that is community developed with the source code being readily available – Robust functionality and scalability – Solid stability and security – Lightweight and modular ƒ Operates on virtually any platform – server or client ƒ Generally acquired on a support subscription basis from Linux Distribution Partner (LDP) – Novell – Red Hat ƒ Development coordinated by the Open Source Development Lab

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Drivers to use Linux today

ƒ Attractive hardware acquisition costs ƒ Availability of low-cost, Open Source software ƒ Linux runs across all hardware platforms ƒ x86, x86-64, RISC and CISC (including mainframes) ƒ Interest in alternatives to Windows and UNIX, offering customers choice in software platforms ƒ Expectations of improved price/performance ƒ Re-use of existing UNIX skills in enterprise, HPC computing

Source: IDC Directions 2005

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ƒ 10art-ni ƒ ETRI ƒ NEC ƒ SpikeSource ƒ ActiveGrid ƒ Fujitsu ƒ Network Appliance ƒ Stanford University ƒ Aduva ƒ Good-day ƒ Nokia ƒ Stratus Technologies ƒ Alcatel ƒ Google ƒ Novell ƒ Sun Microsystems ƒ AMD ƒ Haansoft ƒ NTT Corporation ƒ Timesys ƒ BakBone ƒ Hitachi ƒ NTT Data Intellilink ƒ Tokyo University of ƒ Beijing Software ƒ HP ƒ Open Country Technology Testing Center ƒ IBM ƒ Open Source Japan ƒ Toshiba Solutions ƒ Berry OS Japan ƒ Intel ƒ Open Technologies ƒ Transmeta ƒ Black Duck Software ƒ IP Telecom Corporation ƒ Trolltech ƒ BT Global Services ƒ Kobe Institute of ƒ Oregon State ƒ TurboLinux ƒ Bull Computing University ƒ Unilever ƒ Cassatt ƒ Korea IT Industry ƒ Pacific Crest ƒ Unisys ƒ CCIA Promotion Agency Securities ƒ University of Helsinki ƒ Cisco ƒ Levanta ƒ Pixelworks ƒ Virtual Iron Software ƒ Co-Create ƒ Lynuxworks ƒ Portland State ƒ Voyager Capital University ƒ Computer Associates ƒ Marist College ƒ Waseda University ƒ Radisys ƒ Comverse ƒ Microcost ƒ Wind River ƒ Red Flag Software ƒ Cyclades ƒ Miracle Linux ƒ Wyse Corporation ƒ Mitsubishi Electric ƒ Red Hat ƒ EMC ƒ MontaVista Software ƒ Scalix Corporation ƒ Ericsson ƒ National University of ƒ Search Cacher Defense Technology ƒ Siemens

20 LinuxWorld Conference & Expo 2006-04-26 ARE YOU OPEN TO INNOVATION? IBM Canada Ltd. ® Linux Standard Base www.freestandards.org ƒ LSB supporters include AMD, Dell, HP, IBM, Intel, Novell, and Red Hat ƒ This groundswell of support is significant as it promises to keep Linux from forking and going the way of proprietary systems in the past ƒ Because of the reduced costs for software vendors writing to the Linux, adoption of the LSB will also result in an increase in the number of applications written to the operating system ibm.com/ibmpress

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What is a Linux distribution?

22 LinuxWorld Conference & Expo 2006-04-26 ARE YOU OPEN TO INNOVATION? IBM Canada Ltd. ® Linux adoption and acceptance ƒ Reports from : – Gartner – Deutsche Bank – Forrester – IDC – DH Brown – Goldman Sachs – Bloor Research – Wall Street – IBM ƒ Articles in : – Business Week – Financial Times

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Cost studies abound – Pick wisely!

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Linux server market continues to grow

ƒ 11th consecutive quarter (1Q05) of year-to-year double-digit growth – Linux server revenue exceeded $1.2B in quarterly revenue, 10.3% of overall quarterly server revenue – an all-time high – Year-to-year revenue growth of 35.2% and unit shipments up 31.1%

Source: IDC Worldwide Quarterly Server Tracker and Forecast, June, 2005

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Linux continues to deliver cost benefits

ƒ Linux is 40% less expensive than a comparable x86 based Windows solution – Based on a 3-year period of ownership for a system supporting 100,000 operations per second on the SPECjbb benchmark

Source: Robert Frances Group: TCO for Application Servers Study, August, 2005 26 LinuxWorld Conference & Expo 2006-04-26 ARE YOU OPEN TO INNOVATION? IBM Canada Ltd. ®

Linux capabilities have evolved and expanded

Linux is free Linux is mature ƒ Better TCO than Unix ƒ Drives innovation ƒ Better TCO than Windows ƒ Provides choices ƒ Migrate to commodity ƒ Enables consolidation hardware Î ƒ Facilitates simplification ƒ Use as a bargaining chip ƒ Reduces IT costs ƒ Pluck the low hanging fruit ƒ Results in business advantage

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Linux runs on x86 Linux runs on multiple architectures ƒ Works but not enterprise ƒ Up to 16 way SMP support ready ƒ Unix-like features and enhancements ƒ Used in non-critical areas Î ƒ Proven reliability, availability and stability ƒ Good infrastructure solution ƒ Used for mission critical applications ƒ Runs ERP applications and databases ƒ Linux is not implemented because it is cool nor as a religious experience ƒ Linux is a facilitator of business solutions and / or IT initiatives

27 LinuxWorld Conference & Expo 2006-04-26 ARE YOU OPEN TO INNOVATION? IBM Canada Ltd. ® Linux server growth continues to outpace all other platforms

Worldwide Linux Server Revenue 35% All vendors – full year 2005 ƒ Linux growth is: 30% OS 2005 Revenue Unit – 8 times total Family Revenue Growth Growth 25% server market – 5 times Windows Linux $6,916M 35% 45% 20% server market Windows $18,619M 7% 11% 15%

UNIX $16,251M 0% -4% 10%

Other $9,896M -9% -26% 5%

$51,683M 4% 13% 0%

9th quarter in a row of over $1B in revenue, -5% 4Q05 was 1st $2B quarter for Linux -10% Source: Gartner Group, 4Q05 Linux Windows UNIX Other TOTAL

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How customers are adopting Linux UNIX Windows migrations migrations ƒ New workloads are 28% 12% being added to gain the Flexibility Security full benefits of platform and Choice and vendor flexibility, low cost of ownership, Total Cost of Reliability solid security, and solid Ownership . reliability New Workloads ƒ Linux is replacing 60% proprietary UNIX as Linux offers UNIX-like features and platform independence with lower cost of ownership ƒ Linux is replacing Microsoft servers due to choice, attractive cost of ownership, and enhanced security

Note: Percentages on this chart are based on my personal observations of the Canadian marketplace 29 LinuxWorld Conference & Expo 2006-04-26 ARE YOU OPEN TO INNOVATION? IBM Canada Ltd. ®

Customers want to avoid…

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Can Linux and Windows coexist peacefully?

ƒ Linux is here and Windows is Linux is Complementary to Windows Estimate Linux’s share in your environment as a not going away complementary server alongside Windows 0 percent – Corporate users must address 5% 50 percent or 0 to 5 percent interoperability and integration greater 18% 5% issues 5 to 10 percent – Microsoft, LDPs, and ISVs must 11% deliver interoperability 30 to 50 – Linux now accounts for 20% of percent 10 to 20 23% percent the worldwide installed base of 20%

server operating systems 20 to 30 percent – The majority of corporate 18% networks are heterogeneous environments

Source: Yankee Group, Heterogeneous Linux, Windows Networks Heighten Integration Challenges, May 19, 2005 Source: 1 Yankee Group 2005 North American Linux TCO Survey 31 LinuxWorld Conference & Expo 2006-04-26 ARE YOU OPEN TO INNOVATION? IBM Canada Ltd. ®

Linux and Sun Solaris

“There was a low barrier to exit from Solaris over the last 5 years to Linux. And in fact you can talk to any customer and they were able to move very smoothly and without hardly breaking a sweat in getting to the Linux environment.” Scott McNealy, Chairman and CEO, Sun

Source: Sun Q2 FY06 Quarterly Earnings Call 2006-01-24 at 50:30 to 50:47. Available at http://wcdata.sun.com/webcast/archives/VIP-2238/ 32 LinuxWorld Conference & Expo 2006-04-26 ARE YOU OPEN TO INNOVATION? IBM Canada Ltd. ®

Linux and Oracle

ƒ Linux will pass Sun Solaris as the leading Oracle deployment platforms according to a groundbreaking study – This survey of more than 800 enterprises using Oracle database technology revealed that while 49 percent of the respondents currently run Oracle on a Solaris platform, that number should slip to 43 percent next year – At the same time, 39 percent of the respondents currently run Oracle on Linux, a figure that should climb to 44 percent by next year, making Linux the top Oracle deployment platform

March 2, 2006 – Full report located at http://www.ioug.org/Research.pdf

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Linux and Open Computing @ IBM ibm.com/linux

© 2006 IBM Corporation IBM Canada Ltd. ®

Linux @ IBM investments

ƒ Systems ƒ Linux Technology Center – xSeries 1998 – 1999 – zSeries 1999 ƒ Chiphopper – Cluster and POWER 2001 – 2005 – BladeCenter 2002 ƒ Open Source Contributions – OpenPower / BlueGene 2004 – 1998 to 2006 ƒ Software ƒ Patent Commons – DB2 1999 – 2005 – WebSphere 2000 ƒ Open Source Development Lab – Tivoli 2001 – 2000 – Lotus 2001 ƒ Linux Partners – Rational 2003 – EAL2 2003 ƒ Linux Services – EAL3 2004 – 1999 – EAL4 2005

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IBM open standards leadership

1998 / 19992000 2001 2002 2003 2004 ƒ Java, XML ƒ Web Services ƒ Web Services ƒ Web ƒ Web Services ƒ Web Services and ebXML and UDDI and Tools Services Interoperability Management ƒ Co-founder and ƒ Co-author of ƒ Led submission and Security ƒ Submission of ƒ Chair of workgroup lead architect for SOAP 1.1 of WSDL to the ƒ Founder and BPEL to OASIS responsible for WS-I RosettaNet and W3C chair, WS-I and co-chair Basic Profile 1.1 ƒ Author of XML4J submission ƒ Co-chaired W3 Organization WSBPELTC ƒ Co-chair of working ƒ Chair OMG XML to W3C Web Services ƒ Co-author of ƒ Submission of group responsible for Metadata Interch. ƒ Cofounder of Workshop web services Common Base OASIS WS-Security Format UDDI.org and ƒ Founder of bus process Events and WS- 1.0 ƒ Co-author W3C author of Eclipse.org specification Manageability ƒ Co-chair of OASIS WS- Document Object original UDDI ƒ Co-author of (BPEL, WS- to OASIS Notification TC Model specification W3C XML TX, WS-TC) ƒ Co-chair ƒ Eclipse becomes ƒ FounderXML.org ƒ Co-author of Schema ƒ Co-author for WSDM TC in independent WSDL standard Web OASIS organization ƒ Elected to Board of Services Directors in OASIS ƒ IBM ƒ Chair of Web ƒ Led workgroup ƒ More than 1,000 contributes Services Security responsible for developers devoted to SOAP4J to Interactive roadmap and finalization of XML and more than Apache Applications TC specification SOAP 1.2 1,500 focused on Linux. Over 160 business First Web Services First integrated integration technology patents Gateway private UDDI directory

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IBM open source leadership

1999 - 2001 2002 2003 2004 2005 ƒ IBM forms Linux ƒ Linux ƒ IBM and SUSE ƒ IBM and Novell/SUSE ƒ Contributions to Technology Center contributions to achieve EAL2+ achieve EAL3+ and Xen hypervisor, – contributions to scalability (8- Common Criteria Common Operating Linux serviceability, way+), reliability security cert Environment compliance accessibility performance (stress testing, ƒ Leads Apache ƒ Linux additional RAS ƒ Contributions to ƒ Leads Apache XML defect mgmt, doc) projects Pluto ƒ Incubates Apache project Apache WSDL4J projects Xalan ƒ Leads Apache (Portlet API) and Derby (Cloudscape Java 2.0 (Woden), Xerces, SOAP Web Services WSRP4J database) Web Services ƒ Forms Open projects WSIF (Remote Portal) ƒ Dialog components to Security Source Steering and WSIL ƒ Leads Eclipse Apache Jakarta taglibs ƒ Database Committee ƒ Leads Eclipse projects Hyades ƒ Eclipse becomes extensions to ƒ Creates OSI- projects GEF (testing), Visual independent org – IBM PHP approved IBM & (editing), EMF Editor, AspectJ, contributes UML2, Web ƒ Redeploy 30+ Common Public (modeling), XSD Equinox rich Tools, Voice Tools developerWorks (XML Schema) client Licenses ƒ Globus Toolkit 4 to be projects on ƒ Participation in ƒ IBM contributes ƒ Globus Toolkit 3 WS-I compliant SourceForge.net eServer support contributions for Mozilla ƒ IBM contributes voice ƒ IBM pledges 500 ƒ Founder of Eclipse for Globus Toolkit OGSA, OGSI patents to OSS 2x recognition technology to Apache and Eclipse

More than 1000 developers IBM leads 80+ OSS IBM contributes to 150+ involved in OSS projects projects OSS projects

37 LinuxWorld Conference & Expo 2006-04-26 ARE YOU OPEN TO INNOVATION? IBM Canada Ltd. ® IBM Linux portal ibm.com/linux

38 LinuxWorld Conference & Expo 2006-04-26 ARE YOU OPEN TO INNOVATION? IBM Canada Ltd. ® IBM developerWorks for Linux ibm.com/developerworks/linux

39 LinuxWorld Conference & Expo 2006-04-26 ARE YOU OPEN TO INNOVATION? IBM Canada Ltd. ® IBM Redbooks ibm.com/redbooks/linux

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IBM Canada Ltd.

Summary

© 2006 IBM Corporation IBM Canada Ltd. ®

What next?

ƒ Familiarize yourself with the facts ƒ Establish an Open Policy – It should be inclusive, not exclusive! ƒ Align to Open Standards – Insist on them! ƒ View Open Source and Linux as valid alternatives for IT systems ƒ Make decisions based on business value; not hype and hope! – Be pragmatic ƒ Be prepared for change!

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Thank you

ƒ Jim Elliott – Advocate – Infrastructure Solutions and Manager – System z Operating Systems – IBM Canada Ltd. – [email protected] – 905-316-5813

ƒ Linux at IBM Î ibm.com/linux ƒ System z Î ibm.com/systems/z ƒ My web site Î ibm.com/vm/devpages/jelliott ƒ My blog Î linux.ca/drupal/blog/58

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Notices

ƒ © Copyright IBM Corporation 2000, 2006. All rights reserved. ƒ This document contains words and/or phrases that are trademarks or registered trademarks of the International Business Machines Corporation in the United States and/or other countries. For information on IBM trademarks go to http://www.ibm.com/legal/copytrade.shtml. ƒ The following are trademarks or registered trademarks of other companies. – Java and all Java-related trademarks and logos are trademarks of Sun Microsystems, Inc., in the United States and other countries. – UNIX is a registered trademark of The Open Group in the United States and other countries. – Microsoft, Windows and Windows NT are registered trademarks of Microsoft Corporation. – Red Hat, the Red Hat "Shadow Man" logo, and all Red Hat-based trademarks and logos are trademarks or registered trademarks of Red Hat, Inc., in the United States and other countries. – Linux is a trademark of Linus Torvalds in the United States, other countries, or both. ƒ All other products may be trademarks or registered trademarks of their respective companies. ƒ Notes: – This publication was produced in Canada. IBM may not offer the products, services or features discussed in this document in other countries, and the information may be subject to change without notice. Consult your local IBM business contact for information on the product or services available in your area. – All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. – Information about non-IBM products is obtained from the manufacturers of those products or their published announcements. IBM has not tested those products and cannot confirm the performance, compatibility, or any other claims related to non-IBM products. Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products. – Prices subject to change without notice. Contact your IBM representative or Business Partner for the most current pricing in your geography.

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