Posts Tagged ‘blockchain’

IBM Leverages Strategic Imperatives to Win in Cloud

March 16, 2018

Some people may have been ready to count out IBM in the cloud. The company, however, is clawing its way back into contention faster than many imagined. In a recent Forbes Magazine piece, IBM credits 16,000 AI engagements, 400 blockchain engagements, and a couple of quantum computing pilots as driving its return as a serious cloud player.

IBM uses blockchain to win the cloud

According to Fortune, IBM has jumped up to third in cloud revenue with $17 billion, ranking behind Microsoft with $18.6 billion and Amazon, with $17.5. Among other big players, Google comes in seventh with $3 billion

In the esoteric world of quantum computing IBM is touting live projects underway with JPMorganChase, Daimler, and others. Bob Evans, a respected technology writer and now the principle of Evans Strategic Communications, notes that the latest numbers “underscore not only IBM’s aggressive moves into enterprise IT’s highest-potential markets,” but also the legitimacy of the company’s claims that it has joined the top ranks of the competitive cloud-computing marketplace alongside Microsoft and Amazon.

As reported in the Fortune piece, CEO Ginni Rometty, speaking to a quarterly analyst briefing, declared: “While IBM has a considerable presence in the public-cloud IaaS market because many of its clients require or desire that, it intends to greatly differentiate itself from the big IaaS providers via higher-value technologies such as AI, blockchain, cybersecurity and analytics.” These are the areas that Evans sees as driving IBM into the cloud’s top tier.

Rometty continued; “I think you know that for us the cloud has never been about having Infrastructure-as-a-Service-only as a public cloud, or a low-volume commodity cloud; Frankly, Infrastructure-as-a-Service is almost just a dialtone. For us, it’s always been about a cloud that is going to be enterprise-strong and of which IaaS is only a component.”

In the Fortune piece she then laid out four strategic differentiators for the IBM Cloud, which in 2017 accounted for 22% of IBM’s revenue:

  1. “The IBM Cloud is built for “data and applications anywhere,” Rometty said. “When we say you can do data and apps anywhere, it means you have a public cloud, you have private clouds, you have on-prem environments, and then you have the ability to connect not just those but also to other clouds. That is what we have done—all of those components.”
  2. The IBM Cloud is “infused with AI,” she continued, alluding to how most of the 16,000 AI engagements also involve the cloud. She cited four of the most-popular ways in which customers are using AI: customer service, enhancing white-collar work, risk and compliance, and HR.
  3. For securing the cloud IBM opened more than 50 cybersecurity centers around the world to ensure “the IBM Cloud is secure to the core,” Rometty noted.
  4. “And perhaps this the most important differentiator—you have to be able to extend your cloud into everything that’s going to come down the road, and that could well be more cyber analytics but it is definitely blockchain, and it is definitely quantum because that’s where a lot of new value is going to reside.”

You have to give Rometty credit: She bet big that IBM’s strategic imperatives, especially blockchain and, riskiest of all, quantum computing would eventually pay off. The company had long realized it couldn’t compete in high volume, low margin businesses. She made her bet on what IBM does best—advanced research—and stuck with it.  During those 22 consecutive quarters of revenue losses she stayed the course and didn’t publicly question the decision.

As Fortune observed: In quantum, IBM’s leveraging its first-mover status and has moved far beyond theoretical proposals. “We are the only company with a 50-qubit system that is actually working—we’re not publishing pictures of photos of what it might look like, or writings that say if there is quantum, we can do it—rather, we are scaling rapidly and we are the only one working with clients in development working on our quantum,” Rometty said.

IBM’s initial forays into commercial quantum computing are just getting started: JPMorganChase is working on risk optimization and portfolio optimization using IBM quantum computing;  Daimler is using IBM’s quantum technology to explore new approaches to logistics and self-driving car routes; and JSR is doing computational chemistry to create entirely new materials. None of these look like the payback is right around the corner. As DancingDinosaur wrote just last week, progress with quantum has been astounding but much remains to be done to get a functioning commercial ecosystem in place to support the commercialization of quantum computing for business on a large scale.

DancingDinosaur is Alan Radding, a veteran information technology analyst, writer, and ghost-writer. Follow DancingDinosaur on Twitter, @mainframeblog. See more of his work at and here.

Value and Power of LinuxOne Emperor II

February 4, 2018

There is much value n the mainframe but it doesn’t become clear until you do a full TCO analysis. When you talk to an IBMer about the cost of a mainframe the conversation immediately shifts to TCO, usually in the form of how many x86 systems you would have to deploy to handle a comparable workload with similar quality of service.  The LinuxONE Emperor II, introduced in September, can beat those comparisons.

LinuxONE Emperor II

Proponents of x86 boast about the low acquisition cost of x86 systems. They are right if you are only thinking about a low initial acquisition cost. But you also have to think about the cost of software for each low-cost core you purchase, and for many enterprise workloads you will need to acquire a lot of cores. This is where costs can mount quickly.

As a result, software will likely become the highest TCO item because many software products are priced per core.  Often the amount charged for cores is determined by the server’s maximum number of physical cores, regardless of whether they actually are activated. In addition, some architectures require more cores per workload. Ouch! An inexpensive device suddenly becomes a pricy machine when all those cores are tallied and priced.

Finally, x86 to IBM Z core ratios differ per workload, but x86 almost invariably requires more cores than a z-based workload; remember, any LinuxONE is a Z System. For example, the same WebSphere workload on x86 that requires 10 – 12 cores may require only one IFL on the Z. The lesson here: whether you’re talking about system software or middleware, you have to consider the impact of software on TCO.

The Emperor II delivers stunning specs. The machine can be packed with up to 170 cores, as much as 32 TB of memory, and 160 PCIe slots. And it is flexible; use this capacity, for instance, to add more system resources—cores or memory—to service an existing Linux instance or clone more Linux instances. Think of it as scale-out capabilities on steroids, taking you far beyond what you can achieve in the x86 world and do it with just a few keystrokes. As IBM puts it, you might:

  • Dynamically add cores, memory, I/O adapters, devices, and network cards without disruption.
  • Grow horizontally by adding Linux instances or grow vertically by adding resources (memory, cores, slots) to existing Linux guests.
  • Provision for peak utilization.
  • After the peak subsides automatically return unused resources to the resource pool for reallocation to another workload.

So, what does this mean to most enterprise Linux data centers? For example, IBM often cites a large insurance firm. The insurer needed fast and flexible provisioning for its database workloads. The company’s approach directed it to deploy more x86 servers to address growth. Unfortunately, the management of software for all those cores had become time consuming and costly. The company deployed 32 x86 servers with 768 cores running 384 competitor’s database licenses.

By leveraging elastic pricing on the Emperor II, for example, it only needed one machine running 63 IFLs serving 64 competitor’s database licenses.  It estimated savings of $15.6 million over 5 years just by eliminating charges for unused cores. (Full disclosure: these figures are provided by IBM; DancingDinosaur did not interview the insurer to verify this data.) Also, note there are many variables at play here around workloads and architecture, usage patterns, labor costs, and more. As IBM warns: Your results may vary.

And then there is security. Since the Emperor II is a Z it delivers all the security of the newest z14, although in a slightly different form. Specifically, it provides:

  • Ultimate workload isolation and pervasive encryption through Secure Service Containers
  • Encryption of data at rest without application change and with better performance than x86
  • Protection of data in flight over the network with full end-to-end network security
  • Use of Protected Keys to secure data without giving up performance
  • Industry-leading secure Java performance via TLS (2-3x faster than Intel)

BTW the Emperor II also anchors IBM’s Blockchain cloud service. That calls for security to the max. In the end. the Emperor II is unlike any x86 Linux system.

  • EAL 5+ isolation, best in class crypto key protection, and Secure Service Containers
  • 640 Power cores in its I/O channels (not included in the core count)
  • Leading I/O capacity and performance in the industry
  • IBM’s shared memory vertical scale architecture with a better architecture for stateful workloads like databases and systems of record
  • Hardware designed to give good response time even with 100% utilization, which simplifies the solution and reduces the extra costs x86 users assume are necessary because they’re used to keeping a utilization safety margin.

This goes far beyond TCO.  Just remember all the things the Emperor II brings: scalability, reliability, container-based security and flexibility, and more.

…and Go Pats!

DancingDinosaur is Alan Radding, a Boston-based veteran information technology analyst, writer, and ghost-writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at and here.

IBM Halts Losing Quarterly Slide

January 25, 2018

With all respects to Casey at Bat author Ernest Thayer, joy may have returned to Mudville. IBM finally broke its 22 consecutive quarters losing streak and posted positive results in 4Q 17.  Fourth-quarter revenue of $22.5 billion, up 4 percent but that was just the start.

Watson and Weather Co. track flu

IBM is counting on its strategic imperatives to come through big and they did in 2017. Full-year strategic imperatives revenue of $36.5 billion, up 11 percent; represents 46 percent of IBM revenue. Similarly, IBM is making some gains in the highly competitive cloud business where IBM is fighting to position itself among the top ranks of formidable cloud players—Google, Amazon, and Microsoft. IBM did quite respectably in the cloud, posting $17 billion in cloud revenue, up 24 percent year to year.

DancingDinosaur readers will be interested to know that some of IBM’s various business segments, which have been a steady drain on IBM revenue turned things around in the 4th quarter. For example, Systems (systems hardware and operating systems software) saw revenues of $3.3 billion, up 32 percent driven by growth in IBM Z, Power Systems, and storage. That’s important to readers charged with planning their organization’s future with the Z or Power machines. They now can be confident that IBM mightn’t the sell the business tomorrow as it did with the x86 systems.

So where might IBM go in the future. “Our strategic imperatives revenue again grew at a double-digit rate and now represents 46 percent of our total revenue, and we are pleased with our overall revenue growth in the quarter.” said Ginni Rometty, IBM chairman, president, and CEO.  She then continued: “During 2017, we established IBM as the blockchain leader for business. Looking ahead, we are uniquely positioned to help clients use data and AI to build smarter businesses.”

Added James Kavanaugh, IBM CFO: “Over the past several years we have invested aggressively in technology and our people to reposition IBM.  2018 will be all about reinforcing IBM’s leadership position,” he continued, “in key high-value segments of the IT industry, including cloud, AI, security and blockchain.”

IBM has done well in some business and technology segments. Specifically, the company reported gains in revenues from analytics, up 9 percent, mobile, up 23 percent, and security, up a whopping 132 percent.

Other segments have not done as well. Technology Services & Cloud Platforms (includes infrastructure services, technical support services, and integration software) continue to lose money. A number of investment analysts are happy with IBM’s financials but are not optimistic about what they portend for IBM’s future.

For instance, Bert Hochfeld, long/short equity, growth, event-driven, research analyst, writes in Seeking Alpha, “the real reason why strategic imperatives and cloud showed relatively robust growth last quarter has nothing to do with IBM’s pivots and everything to do with the success of IBM’s mainframe cycle. IBM’s Z system achieved 71% growth last quarter compared to 62% in the prior quarter. New Z Systems are being delivered with pervasive encryption, they are being used to support hybrid cloud architectures, and they are being used to support Blockchain solutions… Right now, the mainframe performance is above the prior cycle (z13) and consistent with the z12 cycle a few years ago. And IBM has enjoyed some reasonable success with its all-flash arrays in the storage business. Further, the company’s superscalar offering, Power9, is having success and, as many of its workloads are used for AI, its revenues get counted as part of strategic initiatives. But should investors count on a mainframe cycle and a high-performance computer cycle in making a long-term investment decision regarding IBM shares?

He continued: “IBM management has suggested that some of the innovations in the current product range including blockchain, cryptography, security and reliability will make this cycle different, and perhaps longer, then other cycles. The length of the mainframe cycle is a crucial component in management’s earnings estimate. It needs to continue at elevated levels at least for another couple of quarters. While that is probably more likely, is it really prudent to base an investment judgement on the length of a mainframe cycle?

Of course, many DancingDinosaur readers are basing their career and employment decisions on the mainframe or Power Systems. Let’s hope this quarter’s success encourages them; it sure beats 22 consecutive quarters of revenue declines.

Do you remember how Thayer’s poem ends? With the hopes and dreams of Mudville riding on him, it is the bottom of the 9th; Casey takes a mighty swing and… strikes out! Let’s hope this isn’t IBM.

DancingDinosaur is Alan Radding, a veteran information technology analyst, writer, and ghost-writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at and here.

BMC’s 12th Annual Mainframe Survey Shows Z Staying Power

November 17, 2017

ARM processors are invading HPC and supercomputer segments. The Power9 is getting closer and closer to general commercial availability. IBM unveiled not one but two new quantum computers. Meanwhile, the Z continues to roll right along without skipping a beat, according to BMC’s 12th mainframe survey.

There is no doubt that the computing landscape is changing dramatically and will continue to change. Yet mainframe shops appear to be taking it all in stride. As Mark Wilson reported on the recently completed SHARE Europe conference in the UK, citing the keynote delivered by Compuware’s CEO Chris O’Malley: “By design, the post-modern mainframe is the most future ready platform in the world: the most reliable, securable, scalable, and cost efficient. Unsurprisingly, the mainframe remains the dominant, growing, and vital backbone for the worldwide economy. However, outdated processes and tools ensnared in an apathetic culture doggedly resistant to change, prevent far too many enterprises from unleashing its unique technical virtues and business value.”  If you doubt we are entering the post-modern mainframe era just look at the LinuxONE Emperor II or the z14.

Earlier this month BMC released its 12th annual mainframe survey. Titled 5 Myths Busted, you can find the report here.  See these myths right below:

  • Myth 1: Organizations have fully optimized mainframe availability
  • Myth 2: The mainframe is in maintenance mode; no one is modernizing
  • Myth 3: Executives are planning to replace their mainframes
  • Myth 4: Younger IT professionals are pessimistic about mainframe careers
  • Myth 5: People working on the mainframe today are all older

Everyone from prestigious executives like O’Malley to a small army of IBMers to lowly bloggers and analysts like DancingDinosaur have been pounding away at discrediting these myths for years. And this isn’t the first survey to thoroughly discredit mainframe skeptics.

The mainframe is growing: 48% of respondents saw MIPS growth in the last 12 months, over 50% of respondents forecast MIPS growth in the next 12 months, and 71% of large shops (10,000 MIPS or more) experienced MIPS growth in the last year. Better yet, these same shops forecast more growth in the next 12 months.

OK, the top four priorities of respondents remained the same this year. The idea that mainframe shops, however, are fully optimized and just cruising is dead wrong. Survey respondents still have a list of to-do of priorities:

  1. Cost reduction/optimization
  2. Data privacy/compliance
  3. Availability
  4. Application modernization

Maybe my favorite myth is that younger people have given up on the mainframe. BMC found that 53% of respondents are under age 50 and of this group, (age 30-49 with under 10 years of experience) overwhelmingly report a very positive view of the the mainframe future. The majority went so far as to say they see the workload of their mainframe growing and also view the mainframe as having a strong position of growth in the industry overall. This is reinforced by the growth of IBM’s Master of the Mainframe competition, which attracts young people in droves, over 85,000 to date, to work with the so-called obsolete mainframe.

And the mainframe, both the Z and the LinuxONE, is packed with technology that will continue to attract young people: Linux, Docker, Kubernetes, Java, Spark, and support for a wide range of both relational databases like DB2 and NoSQL databases like MongoDB. They use this technology to do mobile, IoT, blockchain, and more. Granted most mainframe shops are not ready yet to run these kinds of workloads. IBM, however, even introduced new container pricing for the new Z to encourage such workloads.

John McKenny, BMC’s VP of Strategy, has noticed growing interest in new workloads. “Yes, they continue to be mainly transactional applications but they are aimed to support new digital workloads too, such as doing business with mobile devices,” he noted.  Mobility and analytics, he added, are used increasingly to improve operations, and just about every mainframe shop has some form of cloud computing, often multiple clouds.

The adoption of Linux on the mainframe a decade ago imediatey put an end to the threat posed by x86. Since then, IBM has become a poster child for open source and a slew of new technologies, from Java to Hadoop to Spark to whatever comes next. Although traditional mainframe data centers have been slow to adopt these new technologies some are starting, and that along with innovative machines like the z14 and LinuxONE Emperor ll are what, ultimately, will keep the mainframe young and competitive.

DancingDinosaur is Alan Radding, a veteran information technology analyst, writer, and ghost-writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at and here.

IBM 3Q17 Results Break Consecutive Quarters Losing Streak

November 2, 2017

DancingDinosaur generally does not follow the daily gyrations of IBM’s stock, assuming that readers like you are not really active investors in the company’s stock. That is not to say, however, that you don’t have an important, even critical interest in the company’s fortunes.  As users of Z or Power systems, you want to know that IBM has the means to continue to invest in and advance your preferred platform.  And a 20+ consecutive quarters losing streak doesn’t exactly inspire confidence.

What is interesting about IBM’s latest 3Q17 financials, which ends the string of consecutive revenue losses, is the performance of the Z and storage, two things most of us are concerned with.

Blockchain simplifies near real-time clearing and settlement

Here is what Martin Schroeter, IBM Senior Vice President and Chief Financial Officer said to the investment analysts he briefs: In Systems, we had strong growth driven by the third consecutive quarter of growth in storage, and a solid launch of our new z14 mainframe, now just called Z, which was available for the last two weeks of the quarter.

DancingDinosaur has followed the mainframe for several decades at least, and the introduction of a new mainframe always boosts revenue for the next quarter or two. The advantages were apparent on Day 1 when the machine was introduced. As DancingDinosaur wrote: You get this encryption automatically, virtually for free. IBM insists it will deliver the z14 at the same price/performance of the z13 or less. The encryption is built into the cost of silicon out of the box.

A few months later IBM introduced a new LinuxOne mainframe, the Emperor II. The new LinuxOne doesn’t yet offer pervasive encryption but provides Secure Service Containers. As it was described here at that time: Through the Secure Service Container data can be protected against internal threats at the system level even from users with elevated credentials or hackers who obtain a user’s credentials, as well as external threats.

Software developers will benefit by not having to create proprietary dependencies in their code to take advantage of these security capabilities. An application only needs to be put into a Docker container for Secure Service Container deployment. The application can be managed using the Docker and Kubernetes tools that are included to make Secure Service Container environments easy to deploy and use. Again, it will likely take a few quarters for LinuxONE shops and other Linux shops to seek out the Emperor II and Secure Service Containers.

Similarly, in recent weeks, IBM has been bolstering its storage offerings. As Schroeter noted, storage, including Spectrum storage and Flash, have been experiencing a few positive quarters and new products should help to continue that momentum. For example, products like IBM Spectrum Protect Plus promises to make data protection available in as little as one hour.

Or the IBM FlashSystem 900, introduced at the end of October promises to deliver efficient, ultra dense flash with CAPEX and OPEX savings due to 3x more capacity in a 2U enclosure. It also offers to maximize efficiency using inline data compression with no application performance impact as it achieves consistent 95 microsecond response times.

But probably the best 3Q news came from the continuing traction IBM’s strategic imperatives are gaining. Here these imperatives—cloud, security, cognitive computing—continue to make a serious contribution to IBM revenue. Third-quarter cloud revenues increased 20 percent to $4.1 billion.  Cloud revenue over the last 12 months was $15.8 billion, including $8.8 billion delivered as-a-service and $7.0 billion for hardware, software and services to enable IBM clients to implement comprehensive cloud solutions.  The annual exit run rate for as-a-service revenue increased to $9.4 billion from $7.5 billion in the third quarter of 2016.  In the quarter, revenues from analytics increased 5 percent.  Revenues from mobile increased 7 percent and revenues from security increased 51 percent. Added Schroeter: Revenue from our strategic imperatives over the last 12 months was also up 10% to $34.9 billion, and now represents 45% of IBM.

OK, so IBM is no longer a $100 + billion company and hasn’t been for some time. Maybe in a few years if blockchain and the strategic imperatives continue to grow and quantum catches fire it may be back over the $100 billion mark, but not sure how much it matters.

DancingDinosaur is Alan Radding, a veteran information technology analyst, writer, and ghost-writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at and here.

Meet the new IBM LinuxONE Emperor II

September 15, 2017

Early this week IBM introduced the newest generation of the LinuxONE, the IBM LinuxONE Emperor II, built on the same technology as the IBM z14, which DancingDinosaur covered on July 19. The key feature of the new LinuxONE Emperor II, is IBM Secure Service Container, presented as an exclusive LinuxONE technology representing a significant leap forward in data privacy and security capabilities. With the z14 the key capability was pervasive encryption. This time the Emperor II promises very high levels of security and data privacy assurance while rapidly addressing unpredictable data and transaction growth. Didn’t we just hear a story like this a few weeks ago?

IBM LinuxONE Emperor (not II)

Through the IBM Secure Service Container, for the first time data can be protected against internal threats at the system level from users with elevated credentials or hackers who obtain a user’s credentials, as well as external threats. Software developers will benefit by not having to create proprietary dependencies in their code to take advantage of these security capabilities. An application only needs to be put into a Docker container to be ready for Secure Service Container deployment. The application can be managed using the Docker and Kubernetes tools that are included to make Secure Service Container environments easy to deploy and use.

The Emperor II and the LinuxONE are being positioned as the premier Linux system for highly secured data serving. To that end, it promises:

  • Ultimate workload isolation and pervasive encryption through Secure Service Containers (SoD)
  • Encryption of data at rest without application change and with better performance than x86
  • Protection of data in flight over the network with full end-to-end network security
  • Use of Protected Keys to secure data without giving up performance
  • Industry-leading secure Java performance via TLS (2-3x faster than Intel)

With the z14 you got this too, maybe worded slightly differently.

In terms of performance and scalability, IBM promises:

  • Industry-leading performance of Java workloads, up to 50% faster than Intel
  • Vertical scale to 170 cores, equivalent to hundreds of x86 cores
  • Simplification to make the most of your Linux skill base and speed time to value
  • SIMD to accelerate analytics workloads & decimal compute (critical to financial applications)
  • Pause-less garbage collection to enable vertical scaling while maintaining predictable performance

Like the z14, the Emperor II also lays a foundation for data serving and next gen apps, specifically:

  • Adds performance and security to new open source DBaaS deployments
  • Develops new blockchain applications based on the proven IBM Blockchain Platform—in terms of security, blockchain may prove more valuable than even secure containers or pervasive encryption
  • Support for data-in-memory applications and new workloads using 32 TB of memory—that’s enough to run production databases entirely in memory (of course, you’ll have to figure out if the increased performance, which should be significant, is worth the extra memory cost)
  • A build-your-cloud approach for providers wanting a secure, scalable, open source platform

If you haven’t figured it out yet, IBM sees itself in a titanic struggle with Intel’s x86 platform.  With the LinuxONE Emperor II IBM senses it can gain the upper hand with certain workloads. Specifically:

  • EAL 5+ isolation, best in class crypto key protection, and Secure Service Containers
  • 640 Power cores in its I/O channels (that aren’t included in the core count) giving the platform the best I/O capacity and performance in the industry
  • Its shared memory, vertical scale architecture delivers a measurably better architecture for stateful workloads like databases and systems of record
  • The LinuxONE/z14 hardware designed to still give good response time at up to 100% utilization, which simplifies the solution and reduces the extra costs many data centers assume are necessary because they’re used to 50% utilization
  • The Emperor II can be ordered designed and tested for earthquake resistance
  • The z-based LinuxONE infrastructure has survived fire and flood scenarios where all other server infrastructures have failed

That doesn’t mean, however, the Emperor II is a Linux no brainer, even for shops facing pressure around security compliance, never-fail mission critical performance, high capacity, and high performance. Change is hard and there remains a cultural mindset based on the lingering myth of the cheap PC of decades ago.

DancingDinosaur is Alan Radding, a veteran information technology analyst, writer, and ghost-writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at and here.


IBM Blockchain Platform Aims for Immutable Accuracy

August 25, 2017

Earlier this week IBM announced a major blockchain collaboration among group of leading companies across the global food supply chain. The goal is to reduce the number of people falling ill or even dying from eating contaminated food. IBM’s solution is its blockchain platform, which it believes is ideally suited to help address these challenges because it establishes a trusted environment that tracks all transactions, an accurate, consistent, immutable version.

Blockchain can improve food traceability

The food segment is just one of many industries IBM will target for its blockchain platform. It describes the platform as ideally suited to help address varied industry challenges because it establishes a trusted environment for all transactions. IBM claims it as the only fully integrated enterprise-ready blockchain platform designed to accelerate the development, governance and operation of a multi-institution business network. Rival vendors, like Accenture, may disagree.  In the case of the global food supply chain, all participants -growers, suppliers, processors, distributors, retailers, regulators and consumers – can gain permissioned access to known and trusted information regarding the origin and state of food. In December 2016 DancingDinosaur reported on IBM and Walmart using blockchain for food safety.

IBM’s blockchain platform is built around Hyperledger Composer, integrated with popular development environments using open developer tools, and accepted business terms to generate blockchain code and smart contracts. It also includes sample industry use cases.  Using IBM’s platform, developers can create standard business language in JavaScript and the APIs help keep development work at the business level, rather than being highly technical. This makes it possible for most any programmer to be a blockchain developer. Additionally, a variety of IBM Developer Journeys for blockchain are available featuring free open source code, documentation, APIs, architecture diagrams, and one-click deployment Git repositories to fast-track building, according to IBM.

For governance and operation it also provides activation tools for new networks, members, smart contracts and transaction channels. It also includes multi-party workflow tool with member activities panel, integrated notifications, and secure signature collection for policy voting. In addition, a new class of democratic governance tools designed to help improve productivity across the organizations uses a voting process that collects signatures from members to govern member invitation distribution of smart contracts and the creation of transactions channels. By enabling the quick onboarding of participants, assigning roles, and managing access, organizations can begin transacting via the blockchain fast.

In operating the network IBM blockchain platform provides always-on, high availability with seamless software and blockchain network updates, a hardened security stack with no privileged access, which blocks malware, and built-in blockchain monitoring for full network visibility. Woven throughout the platform is the Hyperledger Fabric. It also provides the highest-level, commercially available tamper resistant FIPS140-2 level 4 protection for encryption keys.

Along with its blockchain platform, IBM is advancing other blockchain supply chain initiatives by using the platform for an automated billing and invoicing system. Initial work to use blockchain for invoicing also is underway starting with Lenovo. This will provide an audit-ready solution with full traceability of billing and operational data, and help speed on-boarding time for new vendors and new contract requirements, according to IBM.

The platform leverages IBM’s work for more than 400 organizations. It includes insights gained as IBM has built blockchain networks across industries ranging from financial services, supply chain and logistics, retail, government, and healthcare.

Extensively tested and piloted, the IBM’s new blockchain platform addresses a wide range of enterprise pain points, including both business and technical requirements around security, performance, collaboration and privacy. It includes innovation developed through open source collaboration in the Hyperledger community, including the newest Hyperledger Fabric v1.0 framework and Hyperledger Composer blockchain tool, both hosted by the Linux Foundation.

DancingDinosaur has previously noted that the z appears ideal for blockchain. DancingDinosaur based this on the z13’s scalability, security, and performance. The new z14, with its automated, pervasive encryption may be even better.  The Hyperledger Composer capabilities along with the sample use cases promise an easy, simple way to try blockchain among some suppliers and partners.

DancingDinosaur is Alan Radding, a veteran information technology analyst, writer, and ghost-writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at and here.


New IBM Z Redefines Mainframe and Security and Cloud

July 19, 2017

By now you have certainly heard of IBM’s latest mainframe, the long-awaited z14, which the company refers to as Z. An announcement of a new mainframe usually doesn’t attract much notice, but maybe this announcement should. Even if you are not a mainframe fan this machine offers a solution that helps everybody—pervasive encryption of all data with no impact on operations or performance and with no need to take much action on your part, except to plug the machine in.

10-core z14 chip

At a time when organizations of all types and in every market segment are under attack from hackers, ransomware, data breaches, and more all data center managers should welcome automatic pervasive encryption. Yet 96% don’t. Of the 9 billion records breached since 2013 only 4% were encrypted! You already know why: encryption is a chore, impacts staff, slows system performance, costs money, and more. You know all the complaints better than DancingDinosaur.

The z14 changes everything from this point going forward. IBM has committed a 4x increase in silicon dedicated to cryptographic algorithms for pervasive encryption. In effect the Z encrypts all data associated with an entire application, cloud service, and database, in flight and at rest, automatically. This amounts to bulk encryption at cloud scale made possible by a massive 7x increase in cryptographic performance over the z13. This is 18x faster than comparable x86 systems and at just five percent of the cost of x86-based solutions.

In truth, it’s better than this. You get this encryption automatically virtually for free. IBM insists it will deliver the z14 at the same price/performance of the z13 or less. The encryption is built into the cost of silicon out of the box. DancingDinosaur has not seen any specific prices yet but you are welcome to scream if IBM doesn’t come through.

You immediately get rid of all the encryption headaches; you don’t have to classify data, manage encryption, or do any of the other chores typically associated with encryption. You just get it, automatically. The z14 also relieves you from managing encryption keys; only IBM Z can protect millions of keys (as well as the process of accessing, generating and recycling them) in tamper-responsive hardware that causes keys to be invalidated at any sign of intrusion and then be restored in safety.

When it comes to security, the z14 truly is a game changer. And it finally will get compliance auditors off your back once they realize how extensive z14 protection is.

IBM downplayed speeds and feeds with the z13 but they’re back with the z14. Specifically, a 5.2 GHz (versus 5.0 GHz IBM z13) is still a bit short of z12, which ran 5.5 GHz. But as with the z13, IBM makes up for it with more memory. The z14 can handle 32 TB of memory. It also includes up to 170 configurable cores (up to 10 per chip) for a total of 1832 MIPS. The L1 and L2 cache is on the core.  The L3 cache also sits on chip and is shared by on-chip cores, and communicates with cores, memory, I/O, and system controller as a single chip module.

Maybe not the richest specs but impressive nonetheless. IBM has been tweaking the box from top to bottom to boost performance. And all the while it will take over end-to-end encryption automatically, including encrypted APIs. Surprisingly, IBM has said nothing about Z’s power consumption but constantly on encrpytion/decryption has to draw more power than, say, the z13. Am waiting to hear what IBM has to say.

This is not just for mainframe jocks. Optimized IBM z/OS Connect technologies make it straightforward for cloud developers to discover and call any IBM Z application or data from a cloud service, or for Z developers to call any cloud service. IBM Z now allows organizations to encrypt these APIs and still run nearly 3x faster than alternatives based on comparable x86 systems.  These speeds and feeds have all been thoroughly documented and detailed at the bottom of the IBM Z press release here.

Will the z14 return the mainframe to positive revenue?  Probably for a few quarters, maybe more if non-mainframe shops want the clear payback of pervasive encryption, although it won’t be an easy transition for them without IBM assistance and incentives.

Next week DancingDinosaur will take up the Z’s three new container pricing models intended to make the Z competitive with public clouds and on-premises x86 environments.

DancingDinosaur is Alan Radding, a veteran information technology analyst, writer, and ghost-writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at and here.


No letup by IBM on Blockchain

April 27, 2017

IBM continues to push blockchain. Its latest announcement on the subject, Three Blockchain Adoption Principles Essential for Every CEO, came early this week. The basic pitch: in certain market segments blockchain could potentially help save billions of dollars annually and significantly reduce delays and spoilage. Citing the World Economic Forum, the company adds: “reducing barriers within the international supply chain could increase worldwide GDP by almost five percent and total trade volume by 15 percent.”  That should be sweet music to any C-suite exec.

Blockchain enables transparent food chain

In a related announcement also this week, IBM Japan, Mizuho Financial Group, and Mizuho Bank are building a blockchain-based trade financing platform for trade financing. With the platform, Mizuho is aiming to streamline trading operations and improve supply chain efficiency. The resulting timely and highly secure exchange of trade documents turns out to be essential for stakeholders in the supply chain ecosystem. Digitizing trade information on a blockchain can help alter the way information is shared, infusing greater trust into transactions, making it easier for parties involved in the supply chain, including exporters, importers, shippers, insurance companies, port operators, and port authorities to share critical shipment data in near real-time.

IBM is emerging as a leader in secure open-source blockchain solutions built for the enterprise. An early member of the Linux Foundation’s Hyperledger Project, the company has worked with more than 400 clients across multiple business segments to implement blockchain applications delivered via the IBM Cloud.

DancingDinosaur has its own 3 reasons enterprise data center execs should be excited by blockchain. They are different and more z-centric than IBM’s. First, you probably already have a z System, and the z’s legendary security, availability, and scalability make it a natural for blockchain. Second, the z already comes optimized to handle transactions and most of your transaction data already lives on the z, making it very efficient from a processing standpoint.  Third, until or unless your blockchain grows to some enormous size, it will barely consume any system resources or generate overhead. In that sense, blockchain on your z comes virtually free.

The following blockchain principles are based on IBM’s customer experience:

  1. Blockchain has the potential to transform trade, transactions and business processes: The two concepts underpinning blockchain are “business network” and “ledger.” Taken together, these are what make blockchain a smart, tamper-resistant way to conduct trade, transactions and business processes. Network members exchange assets through a ledger that all members can access and share. The ledger syncs across the network with all members needing to confirm a transaction of tangible or intangible assets before it is approved and stored on the blockchain. This shared view helps establish legitimacy and transparency, even when parties are not familiar with one another.
  2. The value, it turns out, resides in the ecosystem as the blockchain network grows: This should be no surprise to an exec who saw the growth, first of LANs and WANs, and later the Internet and Web. So too, as a business network blockchain can include several different types of participants. Depending on the number of participants in a blockchain network, the value of assets being exchanged, and the need to authorize members with varying credentials adopters should observe the difference between “permissioned” and “permission-less” blockchain networks. The real value for blockchain is achieved when these business networks grow. With a strong ecosystem, blockchain networks can more easily reach critical mass, allowing the users to build new business models and reinvent and automate transaction processes.
  3. Blockchain can significantly improve visibility and trust across business: Block chains can reduce transaction settlement times from days or weeks to seconds by providing immediate visibility to all participants. The technology can also be used to cut excess costs by removing intermediary third-parties, those typically required to verify transactions. Because blockchain is built on the concept of trust, it can help reduce risks of illicit practices carried out over payment networks, helping to mitigate fraud and cybercrimes. Speed, cost efficiency, and transparency are among blockchain’s most significant benefits in the enterprise and within ecosystems of companies conducting trade. IBM, Walmart and Tsinghua University, for example, are exploring the use of blockchain to help address the challenges surrounding food safety [see graphic above]. By allowing members within the supply chain to see the same records, blockchain helps narrow down the source of a contamination

“Critical success factors in blockchain engagements require top-down executive support for innovative use cases and bringing key network participants into the dialogue from the start,” according to Marie Wieck, general manager, IBM Blockchain.

DancingDinosaur is Alan Radding, a veteran information technology analyst, writer, and ghost-writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at and here.

IBM Spotlights Blockchain and Hyperledger Fabric at IBM InterCONNECT

March 23, 2017

IBM announced earlier this week Hyperledger Fabric v 1.0 beta, with security for regulated industries, governance tools, and over 1,000 transactions per second possible.  This is represents the first enterprise-ready blockchain service based on the Linux Foundation’s open source Hyperledger Fabric version 1.0. The service enables developers to quickly build and host security-rich production blockchain networks on the IBM Cloud and underpinned by IBM LinuxONE.

Maersk and IBM transform global trade with blockchain

LinuxONE, a dedicated z-based Linux system with as much security as any commercial platform is likely to have, should play a central role in blockchain networks. The machine also delivers all the itys the z is renowned for: scalability, availability, flexibility, manageability, and more.

The Linux Foundation’s open source Hyperledger Fabric v1.0 is being developed by members of the Hyperledger consortium alongside other open source blockchain technologies. The Hyperledger consortium’s Technical Steering Committee recently promoted Fabric from incubator to active state, and it is expected to be available in the coming weeks. It is designed to provide a framework for enterprise-grade blockchain networks that can transact at over 1,000 transactions per second.

Safety and security is everything with blockchain, which means blockchain networks are only as safe as the infrastructures on which they reside, hence the underpinning on LinuxONE. In addition, IBM’s High Security Business Network brings an extremely secure Linux infrastructure that, according to IBM, integrates security from the hardware up through the software stack, specifically designed for enterprise blockchains by providing:

  • Protection from insider attacks – helps safeguard entry points on the network and fight insider threats from anyone with system administrator credentials
  • The industry’s highest certified level of isolation for a commercial system- Evaluation Assurance Level certification of EAL5+ is critical in highly regulated industries such as government, financial services and healthcare, to prevent the leakage of information from one party’s environment to another
  • Secure Service Containers – to help protect code throughout the blockchain application and effectively encapsulating the blockchain into a virtual appliance, denying access even to privileged users
  • Tamper-responsive hardware security modules –to protect encrypted data for storage of cryptographic keys. These modules are certified to FIPS 140-2 Level 4, the highest level of security certification available for cryptographic modules
  • A highly auditable operating environment – comprehensive , immutable log data supports forensics, audit, and compliance

IBM also announced today the first commercially available blockchain governance tools, and new open-source developer tools that automate the steps it takes to build with the Hyperledger Fabric, reportedly speeding the process from weeks to days.

The new blockchain governance tools also make it easy to set up a blockchain network and assign roles and levels of visibility from a single dashboard. They help network members set rules, manage membership, and enforce network compliance once the network is up and running.

This seems straightforward enough. Once setup is initiated, members can determine the rules of the blockchain and share consent when new members request to join the network. In addition, the deployment tool assigns each network a Network Trust Rating of 1 to 100. New network members can view this before joining and determine whether or not they can trust the network enough to participate. Organizations can also take steps to improve their Trust Ratings before moving into production.

To make it easier for developers to translate business needs from concept to actual code, IBM Blockchain includes a new open-source developer tools for the Hyperledger Fabric called Fabric Composer. Fabric Composer promises to help users model business networks, create APIs that integrate with the blockchain network and existing systems of record, and quickly build a user interface. Fabric Composer also automates tasks that traditionally could take weeks, allowing developers to complete them in minutes instead.

IBM Blockchain for Hyperledger Fabric v1.0 is now available through a beta program on IBM Bluemix. Hyperledger Fabric also is available on Docker Hub as an IBM-certified image available for download at no cost.

At this point, IBM has over 25 publicly named Blockchain projects underway. They address everything from carbon asset management to consumer digital ID, post trade derivatives processing, last mile shipping, supply chain food safety, provenance, securities lending, and more seemingly are being added nearly weekly.

DancingDinosaur is Alan Radding, a veteran information technology analyst, writer, and ghost-writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at and here.

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