New IBM z114 Reduces Mainframe TCA

IBM introduced its newest mainframe in the zEnterprise family, the z114, the zEnterprise equivalent of a z10 BC. With the z114 IBM can now deliver a more compelling total cost of acquisition (TCA) case. The z114 comes with a $75,000 entry price, 25% less than the z10 BC entry price while delivering 18% more performance per core. At this price, it can begin to compete with commodity high end servers on a TCA basis, especially if it is bundled with discount programs like IBM’s System z Solution Editions and unpublicized deals from IBM Global Finance.

First, the specs, speeds, and feeds:  the z114 is available in two models; a single-drawer model, the M05, and a two-drawer model, the M10, which offers additional capacity for I/O and coupling expansion and/or more specialty engines. It comes with up to 10 configurable cores, which can be designated as general purpose or specialty engine (zIIP, zAAP, IFL, ICF) or used as spares. The M10 also allows two dedicated spares as well, a first for a low end mainframe.

Like the z196, the z114 uses a superscalar design that runs at 3.8 GHz, an improved cache structure, a new out-of-order execution sequence, and over 100 new hardware instructions that deliver better per-thread performance, especially for DB2, WebSphere and Linux workloads. For CPU intensive workloads, additional gains of up to 25% can be achieved via multiple compiler level improvements. None of this, however, is technically new to the zEnterprise. The base z114 starts at 26 MIPS but can scale to over 3100 MIPS across five central processors plus the additional capacity provided by its specialty engines.

The z114 mainly will be a consolidation play. IBM calculates that workloads from as many as 300 competitive servers can be consolidated onto a single z114. It will become the key offering as IBM pursues competitive wins against HP and Oracle/Sun, ripe targets these days. IBM figures the z114 can consolidate workloads from 40 Oracle server cores using just three processors running Linux. And compared to the Oracle servers IBM estimates the new z114 will cost 80% less. Similarly, IBM figures that a fully configured z114 running Linux on z can create and maintain a Linux virtual server for approximately $500 per year.

As a consolidation play, the zEnterprise System will get even more interesting later this year when x blades supporting Windows become available. Depending on the pricing, the z114 could become a Windows consolidation play too.

As part of the zEnterprise family, the z114 connects to the zBX where it can manage workloads running on POWER7-based blades as well as theIBM Smart Analytics Optimizer and IBM WebSphere DataPower for integrating web-based workloads. The zBX can handle up to 112 blades, which can be mixed and matched within the same zBX chassis. The maximum number of blades varies depending on the type of blades selected: 112 Power blades but only 28  System x HX5 or DataPower blades or 56 Smart Analytics Optimizer blades. In additionIBM also promises support for Microsoft Windows on select System x server blades soon.

To drive competitive TCA, IBM clearly is ready to make deals. For example, IBM also has lowered software costs to deliver the same capacity for 5%-18% less through a revised Advanced Workload License Charges (AWLC) pricing schedule. A new processor value unit (PVU) rating on IFLs can lower Linux costs as much as 48%. Some prices, however, may bump up when new pricing takes effect in January 2012.

The best deal is the System z Solution Edition Program which DancingDinosaur has written about here and here.  It bundles System z hardware, software, middleware, and three years of maintenance into a deeply discounted package price. Initial System Editions for the z114 will be WebSphere, Linux, and probably SAP. You also can expect what IBM refers to as snap-ons that provide discounted optional service components to the existing base system. Expect these initially for the IBM Enterprise Linux Server. Cloud and Smarter Planet offerings also may include snap-ons. Not all Solution Editions will be available for the z114; there also may be some new ones.

IBM Global Finance (IGF) can lower costs, starting with a six month payment deferral. You can acquire a z114 now but not begin paying for it until the next year. The group also is offering all IBM middleware products, mainly WebSphere Application Server and Tivoli, interest free (0%) for twelve months. Finally, IGF can lower TCA through leasing. Leasing could further reduce the cost of the z114 by up to 3.5% over three years.

In the end the z114 doesn’t bring any major technology breakthroughs to the zEnterprise that weren’t previously seen in the z196, except maybe the PCIe I/O subsystem. What it brings is a new pricing structure for lower TCA and better price/performance. Yes, the capabilities have been ratcheted down, but the growth path to the full zEnterprise remains if you need it.

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4 Responses to “New IBM z114 Reduces Mainframe TCA”

  1. eric janssens Says:

    wow, a real mainframe for 75000 dollar!

  2. Roger Bowler Says:

    Usually I read this blog because it has some interesting analysis, but this posting reads as if it has been just lifted straight out of an IBM press release. Did you actually verify the claim that “The z114 comes with a $75,000 entry price … At this price, it can begin to compete with commodity high end servers”? It turns out that the $75,000 entry price claim is a load of hot air. At this price you won’t even get a network card or DASD, and possibly not even any CPUs. A more realistically configured z114, with the 3 IFLs they say can run 40 virtual servers, plus disk storage and network connectivity, plus enough memory to support 40 virtual servers, is more likely to cost around $300,000. And that doesn’t include software of course. Much as I like IBM mainframes, I think a little bit of critical analysis is in order when their marketing people try to get away with crap like this.

    • dancingdinosaur Says:

      The $75,000 price comes directly from IBM. It was in the IBM announcement the piece linked to. Until DD speaks with a z114 customer who has put it into production it is not possible to validate actual costs.

  3. Christopher Straub Says:

    If you’re business doesn’t have the need to run blades inside the mainframe, IBM has Certified Pre Owned options which are a fraction of the cost of new. (That’s not marketing talking.) Call me at IBM.

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