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IBM z Systems: Empowering Digital Business Innovation

through Mobile, Analytics, Cloud and Security

José Castaño

Director: z Software Technical sales #IBMz

The market is moving, forcing businesses to transform #IBMz

Explosion in transaction growth

driven by mobility and the Internet of Things

Analytics is moving to real time

to capture new opportunities at the point of impact

Hybrid cloud is the new standard

for delivering service, agility, trust and efficiency

The new imperatives for digital business Availability Response Time Personalization #IBMz

24x7x365

application availability Users expect

< 1 second

app utility

80%

of Marketers send the same content to all subscribers Trust

70%

lack confidence in data security Integration

91%

of new customer-facing apps access mainframe Scale

35%

IBM z Systems enable clients to create new possibilities to drive progress through CAMSS #IBMz Offers personalized services to support

10M new customers

through mobile.

Mobile Cloud Security Analytics Social

Analyze and process 3M medical claims per week

saving $65M

for patients and their health plans Creating a cloud for

Africa’s offline 85%

to bring burgeoning markets online..

Delivers trusts and confidence

56,5820 transactions

per second Exploits social analytics to ensure service continuity for delivery of

$1B in value

Mobile is unleashing the 24x7 consumer, and opening up new markets

Banking and Financial Services

Deposit a check, move money, check balances instantaneously, track portfolio, get alerts, receive quotes, execute trades

Travel and Transportation

Check flights, book reservations, choose seat assignments, check-in and streamline car rental process, hotel reservations

Insurers

File claims, provide quotes, compare prices, enroll, view policies, capture data to develop new offerings #IBMz

Automotive

Enable mobile sensors for diagnostics and safety

Retailers

IBM z13 – The premier data and transaction server for the mobile generation

2.5B

transactions per day 36% faster response time 17 to 37% lower cost per transaction

#IBMz

141

cores and

40%*

more capacity in a single system

2X*

performance improvement with crypto coprocessors for more secure transactions

10 TB*

memory plus

increase in cache size

320

separate channels dedicated just to driving I/O throughput

16 Gbps

FICON links for faster throughput

* Compared to zEC12 * Compared to zEC12

Performance, scale, intelligent I/O, and security enhancements to support transaction growth in the mobile world z/OS Connect provides consolidated REST APIs for all z/OS transactions Seamlessly channel z/OS transactions to mobile devices with MobileFirst Platform IBM MobileFirst Platform for iOS specifically for iOS mobile apps Enable end to end security from mobile device to mainframe with z/OS, RACF ® and MobileFirst products © 2015 IBM Corporation 6

IBM z Systems bridge Systems of Record with Systems of Engagement for optimized service delivery #IBMz

MobileFirst Platforms run either on-prem

(using Linux on z Systems)

or in the cloud

(via Bluemix)

MobileFirst Platform (on-prem) MobileFirst Platform (cloud)

Serving mobile data directly from z/OS is 40% less expensive than exporting to a system of engagement

CICS IMS WebSphere DB2 Analytics run on SoR system for optimal performance and security

Speeding transportation with a mobile ticket application Processing a surging tide of mobile payments quickly and securely Providing the highest level of protection for classified communications © 2015 IBM Corporation 8

The Mainframe Mobile App Throwdown is back for 2015!

Mobilize your mainframe in our fun app-building contest for z Systems clients & business partners!

FAST Prototype an app in days or weeks, not months – try something new!

FUN Learn and get tips from our epic IBM zMobile experts Register now at

ibm.biz/mmathrowdown

and submit your app by April 12th FREEBIES Prizes include passes to Edge 2015 & mobile design help

#IBMz As mobile becomes more pervasive, analytics can drive true differentiation in engagement

“Thank you for your request, please find below your account balance as at close of business…”

Postal

“Other customers who purchased this product also purchased…”

Web

“Here is a voucher for a new product we think you will like which is located in the next aisle in the store…”

Mobile

One-off custom queries response in hours / days based on historical analysis Product association response in near real time based on historical analysis Personalized offer based on situational awareness response and analysis in real time

80s / 90s 2000s 2015 Analytics provides new opportunities to extract the most value out of every interaction and transaction

Data is the newest resource for competitive advantage #IBMz

7.6% boost to customer lifetime value for firms using engagement analytics $13 for every dollar spent nucleus estimate of analytics payback; 1.2 X more than 3 years ago $226 billion estimated fraud loss to healthcare every year Source

Analytics implementations have grown in complexity

Significant complexity

Separated data warehouses

Analytics latency

Transactional data is not readily available

Lack of synchronization

Data is not easily aggregated and fresh

Data duplication

Multiple copies of the same data

Excessive costs

#IBMz … So a new deployment strategy is needed Bring the analytics to where the data and transactions originate for greatest value

Transactions Analytics

Deliver real-time insights at the point of impact Manage data lifecycle and governance Eliminate redundancy and avoid ETL 72%

say greatest value will come from analyzing transactional data

55%

of enterprise applications need mainframe to complete transactions

IBM z13 – An integrated transaction and analytics system for right time insights at the point of impact #IBMz

IBM DB2 Analytics Accelerator for z/OS

and

DB2 BLU for Linux

accelerates queries for faster insight further

SIMD

delivers accelerated analytics processing for mathematical optimization

zEDC

reduces data transfer time and storage cost by up to

75% 16 Gbps FICON

latency for workloads such as DB2 links reduce

zIIPs

help to lower the cost of ownership helping to help connect, manage, extend, and protect data

Reduce cost, move Oracle workloads to DB2 in-memory computing Optimize decisions, solve complex problems faster Garner new insight, use Hadoop analytics on TX and log data Act faster, analyze and score transactions as they happen

Moving data off of z Systems is costly #IBMz To move 1TB of data daily off z Systems can cost over

$10M

over 4 years z13 ETL x86 ETL ETL Analytical Data ETL Assuming 4 cores on z13 running at 85% utilization and 12 cores on x86 servers run at 15% utilization, transfer will burn

519 MIPS

and use 30 x86 cores per day Analytical Data Analytical Data

Estimated 4 year cost summary

#IBMz IBM z13 beats the competition head to head in analytic performance

17x 13x

performance price performance Standalone Pre-Integrated Competitor V4 DB2 v11

z/OS

IBM z Systems Analytics 9700 Eight Unit z13 IBM DB2 Analytics Accelerator (N3001-010)

$514

Per Report per Hour (3yr TCA at no discount)

Workload Time

Reports per Hour (RpH)

1,810 mins

5,343 Competitor Eight Unit (HW + SW + Storage) $ 2,745,041

Workload Time 105 mins

Reports per Hour (RpH) 92,095 z13 (1 GP + 3 zIIP + HW + SW + Storage) + Accelerator V4.1

$ 3,652,131

$40

Increased retail sales revenue through point-of-sale suggest-sell insight Delivers most timely, accurate data for improved customer satisfaction Reduced time from months to weeks to develop and release new marketing campaigns © 2015 IBM Corporation 17

#IBMz Cloud is becoming pervasive as the engine of new service delivery for the digital era Cloud deployment has grown

92%

since 2012 1

57%

of companies are using cloud to drive competitive and cost advantage 3 Approximately

70%

of enterprises will pursue hybrid cloud by 2015 2

85%

of new SW is being built for the Cloud 4 Customers with a clearly defined Cloud strategy enjoy

almost 2x the revenue growth and nearly 2.5x higher gross profit

than peers 5 Source: 1 “Raising the game, The IBM Business Tech Trends Study,” 2 “Private Cloud Matures, Hybrid Cloud is Next,” Gartner G00255302, Sept 6, 2013 3, 4, 5 IBM Global Cloud Study “Under Cloud Cover” © 2015 IBM Corporation 18

#IBMz IBM z Systems provide the infrastructure to support all dimensions of cloud service delivery

Private Cloud z/OS and Linux on System z as the foundation of the most secure, scalable private cloud infrastructure Hybrid Cloud Leveraging BlueMix and interoperability with SoftLayer, AWS and other public cloud offerings Elastic, virtually limitless expansion Shared everything design for extreme utilization Secure isolation of Virtual Servers Built on open industry standards Public Cloud Enabling MSPs/CSPs to deliver differentiated mainframe-based service offerings

#IBMz IBM z13 – The most efficient and trusted cloud system, transforming the economics and agility of IT Open support extended with OpenStack ® , PostgreSQL, Node.JS, and KVM* Up to

8,000

virtual servers per system, more than

per core Open virtualization with new

KVM

support *

z13

brings faster processing and higher throughput of secure transactions (

more throughput on crypto coprocessor) Business continuity and IT analytics with

enterprise grade Linux solution

Enterprise-grade Linux provides the foundation for public, private, and hybrid cloud Patterns for Linux on z Systems to quickly build out complex cloud workload instances Improved overall system performance leads to a lower TCO compared to public cloud deployments and deployments on x86 architectures Enabling next generation cloud applications with IBM Bluemix ™ on z Systems Intelligent Print Manager on ELS by Ubiquitech * All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.

z13 Delivers Cloud Economics Without the Risk 32 and 60 Superior cloud services at up to 32% lower cost than x86 and up to 60% less than public cloud alternatives

32%

and

60%

lower cost 18,000,000 10,000,000 8,000,000 0

Public Cloud Infrastructure x86 Cloud Middleware Cloud on z13 Labor, power & space

In the complex world of digital business, Security and Availability are now a board level discussion #IBMz

The indirect cost of security breaches and downtime can far outweigh the direct costs 70%

Of security executives have cloud and mobile concerns 1

614%

Mobile malware growth in just one year 2

$5.65M

Average cost of a security breach in the US 3

$7.9K

Average cost of one minute of downtime 4

Build a vault around your crown jewels with System z Users Data Transactions

Source: 1 2013 IBM CISO Survey 2 2012-2013 Juniper Mobile Threat Report 3 IBM client examples 4 http://www.datacenterdynamics.com/focus/archive/2013/12/one-minute-data-center-downtime-costs-us7900-average © 2015 IBM Corporation 22

Mitigating business risk in today’s digital world #IBMz Security and resiliency built into every level of System z

Applications Middleware Operating System Communications Database Hypervisor Storage Memory Processor Highest level Encryption

of security for isolation of cloud workloads with EAL5+ of data at rest, in flight, and in use

Enterprise Key Management IT Analytics 99.999%

across mainframe and distributed to spot potential failures and capacity needs before they occur design point for application availability

Zero second

z13: a new system designed for mobile , analytics and trusted cloud

With the highest speeds, the most diverse workloads, and simply the best security on the planet

Thank You

#IBMz