Posts Tagged ‘Linux’

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 technologywriter.com and here.

Open POWER-Open Compute-POWER9 at Open Compute Summit

March 16, 2017

Bryan Talik, President, OpenPOWER Foundation provides a detailed rundown on the action at the Open Compute  Summit held last week in Santa Clara. After weeks of writing about Cognitive, Machine Learning, Blockchain, and even quantum computing, it is a nice shift to conventional computing platforms that should still be viewed as strategic initiatives.

The OpenPOWER, Open Compute gospel was filling the air in Santa Clara.  As reported, Andy Walsh, Xilinx Director of Strategic Market Development and OpenPOWER Foundation Board member explained, “We very much support open standards and the broad innovation they foster. Open Compute and OpenPOWER are catalysts in enabling new data center capabilities in computing, storage, and networking.”

Added Adam Smith, CEO of Alpha Data:  “Open standards and communities lead to rapid innovation…We are proud to support the latest advances of OpenPOWER accelerator technology featuring Xilinx FPGAs.”

John Zannos, Canonical OpenPOWER Board Chair chimed in: For 2017, the OpenPOWER Board approved four areas of focus that include machine learning/AI, database and analytics, cloud applications and containers. The strategy for 2017 also includes plans to extend OpenPOWER’s reach worldwide and promote technical innovations at various academic labs and in industry. Finally, the group plans to open additional application-oriented workgroups to further technical solutions that benefits specific application areas.

Not surprisingly, some members even see collaboration as the key to satisfying the performance demands that the computing market craves. “The computing industry is at an inflection point between conventional processing and specialized processing,” according to Aaron Sullivan, distinguished engineer at Rackspace. “

To satisfy this shift, Rackspace and Google announced an OCP-OpenPOWER server platform last year, codenamed Zaius and Barreleye G2.  It is based on POWER9. At the OCP Summit, both companies put on a public display of the two products.

This server platform promises to improve the performance, bandwidth, and power consumption demands for emerging applications that leverage machine learning, cognitive systems, real-time analytics and big data platforms. The OCP players plan to continue their work alongside Google, OpenPOWER, OpenCAPI, and other Zaius project members.

Andy Walsh, Xilinx Director of Strategic Market Development and OpenPOWER Foundation Board member explains: “We very much support open standards and the broad innovation they foster. Open Compute and OpenPOWER are catalysts in enabling new data center capabilities in computing, storage, and networking.”

This Zaius and Barreleye G@ server platforms promise to advance the performance, bandwidth and power consumption demands for emerging applications that leverage the latest advanced technologies. These latest technologies are none other than the strategic imperatives–cognitive, machine learning, real-time analytics–IBM has been repeating like a mantra for months.

Open Compute Projects also were displayed at the Summit. Specifically, as reported: Google and Rackspace, published the Zaius specification to Open Compute in October 2016, and had engineers to explain the specification process and to give attendees a starting point for their own server design.

Other Open Compute members, reportedly, also were there. Inventec showed a POWER9 OpenPOWER server based on the Zaius server specification. Mellanox showcased ConnectX-5, its next generation networking adaptor that features 100Gb/s Infiniband and Ethernet. This adaptor supports PCIe Gen4 and CAPI2.0, providing a higher performance and a coherent connection to the POWER9 processor vs. PCIe Gen3.

Others, reported by Talik, included Wistron and E4 Computing, which showcased their newly announced OCP-form factor POWER8 server. Featuring two POWER8 processors, four NVIDIA Tesla P100 GPUs with the NVLink interconnect, and liquid cooling, the new platform represents an ideal OCP-compliant HPC system.

Talik also reported IBM, Xilinx, and Alpha Data showed their line ups of several FPGA adaptors designed for both POWER8 and POWER9. Featuring PCIe Gen3, CAPI1.0 for POWER8 and PCIe Gen4, CAPI2.0 and 25G/s CAPI3.0 for POWER9 these new FPGAs bring acceleration to a whole new level. OpenPOWER member engineers were on-hand to provide information regarding the CAPI SNAP developer and programming framework as well as OpenCAPI.

Not to be left out, Talik reported that IBM showcased products it previously tested and demonstrated: POWER8-based OCP and OpenPOWER Barreleye servers running IBM’s Spectrum Scale software, a full-featured global parallel file system with roots in HPC and now widely adopted in commercial enterprises across all industries for data management at petabyte scale.  Guess compute platform isn’t quite the dirty phrase IBM has been implying for months.

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 technologywriter.com and here.

 

IBM and Northern Trust Collaborate on Blockchain for Private Equity Markets

March 3, 2017

At a briefing for IT analysts, IBM laid out how it sees blockchain working in practice. Surprisingly, the platform for the Hyperledger effort was not x86 but LinuxONE due to its inherent security.  As the initiative grows the z-based LinuxONE can also deliver the performance, scalability, and reliability the effort eventually will need too.

IBM describes its collaboration with Northern Trust and other key stakeholders as the first commercial deployment of blockchain technology for the private equity market. Although as the private equity market stands now the infrastructure supporting private equity has seen little innovation in recent years even as investors seek greater transparency, security, and efficiency. Enter the open LinuxONE platform, the Hyperledger fabric, and Unigestion, a Geneva, Switzerland-based asset manager with $20 billion in assets under management.

IBM Chairman and CEO Ginni Rometty discusses how cognitive technology and innovations such as Watson and blockchain have the potential to radically transform the financial services industry at Sibos 2016 in Geneva, Switzerland on Weds., September 28, 2016. (Feature Photo Service)

IBM Chairman and CEO Ginni Rometty discusses  blockchain at Sibos

The new initiative, as IBM explains it, promises a new and comprehensive way to access and visualize data.  Blockchain captures and stores information about every transaction and investment as meta data. It also captures details about relevant documents and commitments. Hyperledger itself is a logging tool that creates an immutable record.

The Northern Trust effort connects business logic, legacy technology, and blockchain technology using a combination of Java/JavaScript and IBMs blockchain product. It runs on IBM Bluemix (cloud) using IBM’s Blockchain High Security Business Network. It also relies on key management to ensure record/data isolation and enforce geographic jurisdiction. In the end it facilitates managing the fund lifecycle more efficiently than the previous primarily paper-based process.

More interesting to DancingDinosaur is the selection of the z through LinuxONE and blockchain’s use of storage.  To begin with blockchain is not really a database. It is more like a log file, but even that is not quite accurate because “it is a database you play as a team sport,” explained Arijit Das, Senior Vice President, FinTech Solutions, at the analyst briefing. That means you don’t perform any of the usual database functions; no deletes or updates, just appends.

Since blockchain is an open technology, you actually could do it on any x86 Linux machine, but DancingDinosaur readers probably wouldn’t want to do that. Blockchain essentially ends up being a distributed group activity and LinuxONE is unusually well optimized for the necessary security. It also brings scalability, reliability, and high performance along with the rock-solid security of the latest mainframe. In general LinuxONE can handle 8000 virtual servers in a single system and tens of thousands of containers. Try doing that with an x86 machine or even dozens.   You can read more on LinuxONE that DancingDinosaur wrote when it was introduced here and here.

But you won’t need near that scalability with the private equity application, at least at first. Blockchain gets more interesting when you think about storage. Blockchain has the potential to generate massive numbers of files fast, but that will only happen when it is part of, say, a supply chain with hundreds, or more likely, thousands of participating nodes on the chain and those nodes are very active. More likely for private equity trading, certainly at the start, blockchain will handle gigabytes of data and maybe only megabytes at first. This is not going to generate much revenue for IBM storage. A little bit of flash could probably do the trick.

Today, current legal and administrative processes that support private equity are time consuming and expensive, according to Peter Cherecwich, president of Corporate & Institutional Services at Northern Trust. They lack transparency while inefficient market practices leads to lengthy, duplicative and fragmented investment and administration processes. Northern Trust’s solution based on blockchain and Hyperledger, however, promises to deliver a significantly enhanced and efficient approach to private equity administration.

Just don’t expect to see overnight results. In fact, you can expect more inefficiency since the new blockchain/Hyperledger-based system is running in parallel with the disjointed manual processes. Previous legacy systems remain; they are not yet being replaced. Still, IBM insists that blockchain is an ideal technology to bring innovation to the private equity market, allowing Northern Trust to improve traditional business processes at each stage to deliver greater transparency and efficiency. Guess we’ll just have to wait and watch.

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 technologywriter.com and here.

 

IBM Launches New IoT Collaborative Initiative

February 23, 2017

Collaboration partners can pull hundreds of millions of dollars in new revenue from IoT, according to IBM’s recent IoT announcement. Having reached what it describes as a tipping point with IoT innovation the company now boasts of having over 6,000 clients and partners around the world, many of whom are now wanting to join in its new global Watson IoT center to co-innovate. Already Avnet, BNP Paribas, Capgemini, and Tech Mahindra will collocate development teams at the IBM Munich center to work on IoT collaborations.

new-ibm-watson-iot-center

IBM Opens New Global Center for Watson IoT

The IBM center also will act as an innovation space for the European IoT standards organization EEBus.  The plan, according to Harriet Green, General Manager, IBM Watson IoT, Cognitive Engagement and Education (pictured above left), calls for building a new global IoT innovation ecosystem that will explore how cognitive and IoT technologies will transform industries and our daily lives.

IoT and more recently cognitive are naturals for the z System, and POWER Systems have been the platform for natural language processing and cognitive since Watson won Jeopardy three years ago. With the latest enhancements IBM has brought to the z in the form of on-premises cognitive and machine learning the z should assume an important role as it gathers, stores, collects, and processes IoT data for cognitive analysis. DancingDinosaur first reported on this late in 2014 and again just last week. As IoT and cognitive workloads ramp up on z don’t be surprised to see monthly workload charges rise.

Late last year IBM announced that car maker BMW will collocate part of its research and development operations at IBM’s new Watson IoT center to help reimagine the driving experience. Now, IBM is announcing four more companies that have signed up to join its special industry “collaboratories” where clients and partners work together with 1,000 Munich-based IBM IoT experts to tap into the latest design thinking and push the boundaries of the possible with IoT.

Let’s look at the four newest participants starting with Avnet. According to IBM, an IT distributor and global IBM partner, Avnet will open a new joint IoT Lab within IBM’s Watson IoT HQ to develop, build, demonstrate and sell IoT solutions powered by IBM Watson. Working closely with IBM’s leading technologists and IoT experts, Avnet also plans to enhance its IoT technical expertise through hands-on training and on-the-job learning. Avnet’s team of IoT and analytics experts will also partner with IBM on joint business development opportunities across multiple industries including smart buildings, smart homes, industry, transportation, medical, and consumer.

As reported by BNP Paribas, Consorsbank, its retail digital bank in Germany, will partner with IBM´s new Watson IoT Center. The company will collocate a team of solution architects, developers and business development personnel at the Watson facility. Together with IBM’s experts, they will explore how IoT and cognitive technologies can drive transformation in the banking industry and help innovate new financial products and services, such as investment advice.

Similarly, global IT consulting and technology services provider Capgemini will collocate a team of cognitive IoT experts at the Watson center. Together they will help customers maximize the potential of Industry 4.0 and develop and take to market sector-specific cognitive IoT solutions. Capgemini plans a close link between its Munich Applied Innovation Exchange and IBM’s new Customer Experience zones to collaborate with clients in an interactive environment.

Finally, the Indian multinational provider of enterprise and communications IT and networking technology Tech Mahindra, is one of IBM’s Global System Integrators with over 3,000 specialists focused on IBM technology around the world. The company will locate a team of six developers and engineers within the Watson IoT HQ to help deliver on Tech Mahindra’s vision of generating substantial new revenue based on IBM’s Watson IoT platform. Tech Mahindra will use the center to co-create and showcase new solutions based on IBM’s Watson IoT platform for Industry 4.0 and Manufacturing, Precision Farming, Healthcare, Insurance and Banking, and automotive.

To facilitate connecting the z to IoT IBM offers a simple recipe. It requires 4 basic ingredients and 4 steps: Texas Instrument’s SensorTag, a Bluemix account, IBM z/OS Connect Enterprise Edition, and a back-end service like CICS.  Start by exposing an existing z Systems application as a RESTful AP. This is where the z/OS Connect Edition comes in.  Then enable your SensorTag device to Watson IoT Quick Start. From there connect the Cloud to your on-premises Hybrid Cloud.  Finally, enable the published IoT data to trigger a RESTful API. Sounds pretty straightforward but—full disclosure—Dancing Dinosaur has not tried it due to lacking the necessary pieces. If you try it, please tell DancingDinosaur how it works (info@radding.net). Good luck.

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 technologywriter.com and here.

 

IBM On-Premises Cognitive Means z Systems Only

February 16, 2017

Just in case you missed the incessant drumbeat coming out of IBM, the company committed to cognitive computing. But that works for z data centers since IBM’s cognitive system is available on-premises only for the z. Another z first: IBM just introduced Machine Learning (key for cognitive) for the private cloud starting with the z.

ibm-congitive-graphic

There are three ways to get IBM cognitive computing solutions: the IBM Cloud, Watson, or the z System, notes Donna Dillenberger, IBM Fellow, IBM Enterprise Solutions. The z, however, is the only platform that IBM supports for cognitive computing on premises (sorry, no Power). As such, the z represents the apex of programmatic computing, at least as IBM sees it. It also is the only IBM platform that supports cognitive natively; mainly in the form of Hadoop and Spark, both of which are programmatic tools.

What if your z told you that a given strategy had a 92% of success. It couldn’t do that until now with IBM’s recently released cognitive system for z.

Your z system today represents the peak of programmatic computing. That’s what everyone working in computers grew up with, going all the way back to Assembler, COBOL, and FORTRAN. Newer languages and operating systems have arrived since; today your mainframe can respond to Java or Linux and now Python and Anaconda. Still, all are based on the programmatic computing model.

IBM believes the future lies in cognitive computing. Cognitive has become the company’s latest strategic imperative, apparently trumping its previous strategic imperatives: cloud, analytics, big data, and mobile. Maybe only security, which quietly slipped in as a strategic imperative sometime 2016, can rival cognitive, at least for now.

Similarly, IBM describes itself as a cognitive solutions and cloud platform company. IBM’s infatuation with cognitive starts with data. Only cognitive computing will enable organizations to understand the flood of myriad data pouring in—consisting of structured, local data but going beyond to unlock the world of global unstructured data; and then to decision tree-driven, deterministic applications, and eventually, probabilistic systems that co-evolve with their users by learning along with them.

You need cognitive computing. It is the only way, as IBM puts it: to move beyond the constraints of programmatic computing. In the process, cognitive can take you past keyword-based search that provides a list of locations where an answer might be located to an intuitive, conversational means to discover a set of confidence-ranked possibilities.

Dillenberger suggests it won’t be difficult to get to the IBM cognitive system on z . You don’t even program a cognitive system. At most, you train it, and even then the cognitive system will do the heavy lifting by finding the most appropriate training models. If you don’t have preexisting training models, “just use what the cognitive system thinks is best,” she adds. Then the cognitive system will see what happens and learn from it, tweaking the models as necessary based on the results and new data it encounters. This also is where machine learning comes in.

IBM has yet to document payback and ROI data. Dillenberger, however, has spoken with early adopters.  The big promised payback, of course, will come from the new insights uncovered and the payback will be as astronomical or meager as you are in executing on those insights.

But there also is the promise of a quick technical payback for z data centers managers. When the data resides on z—a huge advantage for the z—you just run analytics where the data is. In such cases you can realize up to 3x the performance, Dillenberger noted.  Even if you have to pull data from some other location too you still run faster, maybe 2x faster. Other z advantages include large amounts of memory, multiple levels of cache, and multiple I/O processors get at data without impacting CPU performance.

When the data and IBM’s cognitive system resides on the z you can save significant money. “ETL consumed huge amounts of MIPS. But when the client did it all on the z, it completely avoided the costly ETL process,” Dillenberger noted. As a result, that client reported savings of $7-8 million dollars a year by completely bypassing the x-86 layer and ETL and running Spark natively on the z.

As Dillenberger describes it, cognitive computing on the z is here now, able to deliver a payback fast, and an even bigger payback going forward as you execute on the insights it reveals. And you already have a z, the only on-premises way to IBM’s Cognitive System.

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 technologywriter.com and here.

 

Arcati 2017 Mainframe Survey—Cognitive a No-Show

February 2, 2017

DancingDinosaur checks into Arcati’s annual mainframe survey every few years. You can access a copy of the 2017 report here.  Some of the data doesn’t change much, a few percentage points here or there. For example, 75% of the respondents consider the mainframe too expensive. OK, people have been saying that for years.

On the other hand, 65% of the respondents’ mainframes are involved with web services. Half also run Java-based mainframe apps, up from 30% last year, while 17% more are planning to run Java with their mainframe this year. Similarly, 35% of respondents report running Linux on the mainframe, up from 22% last year. Again, 13% of the respondents expect to add Linux this year.  Driving this is the advantageous cost and management benefits that result from consolidating distributed Linux workloads on the z. Yes, things are changing.

linuxone-5558_d_ibm_linuxone_social_tile_990_550_4_081515

The biggest surprise for DancingDinosaur, however, revolved around IBM’s latest strategic initiatives, especially cognitive computing and blockchain.  Other strategic initiatives may include, depending on who is briefing you at the moment—security, data analytics, cloud, hybrid cloud, and mobile. These strategic imperatives, especially cognitive computing, are expected to drive IBM’s revenue. In the latest statement, reported last week in DancingDinosaur, strategic imperatives amounted to 41% of revenue.  Cloud revenue and Cloud-as-a-service also rose considerably, 35% and 61% respectively.

When DancingDinosaur searched the accompanying Arcati vendor report (over 120 vendors with brief descriptions) for cognitive only GT Software came up. IBM didn’t even mention cognitive in its vendor listing, which admittedly was skimpy. The case was the same with Blockchain; only one vendor, Atos, mentioned it and nothing about blockchain in the IBM listing. More vendors, however, noted supporting one or some of the other supposed strategic initiatives.

Overall, the Arcati survey is quite positive about the mainframe. The survey found that 50 percent of sites viewed their mainframe as a legacy system (down from last year’s 62 percent). However, 22 percent (up from 16 percent last year) viewed mainframe as strategic, with 28 percent (up from 22 percent) viewing mainframes as both strategic and legacy.

Reinforcing the value of the mainframe, the survey found 78 percent of sites experienced some kind of increase in capacity. With increased demand for mainframe resources (data and processing), it should not be surprising that respondents report an 81 percent an increase in technology costs. Yet, 38 percent of sites report their people costs have decreased or stayed the same.

Unfortunately, the survey also found that 70 percent of respondents thought there were a cultural barrier between mainframe and other IT professionals. That did not discourage respondents from pointing out the mainframe advantages: 100 percent highlighted the benefit of the mainframe’s availability, 83 percent highlighted security, 75 percent identified scalability, and 71 percent picked manageability as a mainframe benefit.

Also, social media runs on the mainframe. Respondents found social media (Facebook, Twitter, YouTube) useful for their work on the mainframe. Twenty-seven percent report using social (up slightly from 25 percent last year) with the rest not using it at all despite IBM offering Facebook pages dedicated to IMS, CICS, and DB2. DancingDinosaur, only an occasional FB visitor, will check it out and report.

In terms of how mainframes are being used, the Arcati survey found that 25 percent of sites are planning to use Big Data; five percent of sites have adopted it for DevOps while 48 percent are planning to use mainframe DevOps going forward. Similarly, 14 percent of respondents already are reusing APIs while another 41 percent are planning to.

Arcati points out another interesting thought: The survey showed a 55:45 percent split in favor of distributed systems. So, you might expect the spend on the two types of platform to be similar. Yet, the survey found that 87 percent of an organization’s IT spend was going to distributed systems! Apparently mainframes aren’t as expensive as people think. Or put it another way, the cost of owning and operating distributed systems with mainframe-caliber QoS amounts to a lot more than people are admitting.

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 technologywriter.com and here.

 

IBM Cheers Beating Estimates But Losing Streak Continues

January 26, 2017

It has been 19 quarters since IBM reported positive revenue in its quarterly reports but the noises coming out of IBM with the latest 4Q16 and full year 2016 financials are upbeat due to the company beating analyst consensus revenue estimates and its strategic initiatives are starting to generate serious revenue.   Although systems revenues were down again (12%) the accountants at least had something positive to say about the z: “gross profit margins improved driven by z Systems performance.”

ezsource-dashboard

EZSource: Dashboard visualizes changes to mainframe code

IBM doesn’t detail which z models were contributing but you can guess they would be the LinuxONE models (Emperor and Rock Hopper) and the z13. DancingDinosaur expects z performance to improve significantly in 2017 when a new z, which had been heavily hinted in the 3Q2016 results reported here, is expected to ship.

With it latest financials IBM is outright crowing about its strategic initiatives: Fourth-quarter cloud revenues increased 33 percent.  The annual exit run rate for cloud as-a-service revenue increased to $8.6 billion from $5.3 billion at year-end 2015.  Revenues from analytics increased 9 percent.  Revenues from mobile increased 16 percent and revenues from security increased 7 percent.

For the full year, revenues from strategic imperatives increased 13 percent.  Cloud revenues increased 35 percent to $13.7 billion.  The annual exit run rate for cloud as-a-service revenue increased 61 percent year to year.  Revenues from analytics increased 9 percent.  Revenues from mobile increased 34 percent and from security increased 13 percent.

Of course, cognitive computing is IBM’s strategic imperative darling for the moment, followed by blockchain. Cognitive, for which IBM appears to use an expansive definition, is primarily a cloud play as far as IBM is concerned.  There is, however, a specific role for the z, which DancingDinosaur will get into in a later post. Blockchain, on the other hand, should be a natural z play.  It is, essentially, extremely secure OLTP on steroids.  As blockchain scales up it is a natural to drive z workloads.

As far as IBM’s financials go the strategic imperatives indeed are doing well. Other business units, however, continue to struggle.  For instance:

  • Global Business Services (includes consulting, global process services and application management) — revenues of $4.1 billion, down 4.1 percent.
  • Systems (includes systems hardware and operating systems software), remember, this is where z and Power platforms reside — revenues of $2.5 billion, down 12.5 percent. But as noted above, gross profit margins improved, driven by z Systems performance.
  • Global Financing (includes financing and used equipment sales) — revenues of $447 million, down 1.5 percent.

A couple of decades ago, when this blogger first started covering IBM and the mainframe as a freelancer writing for any technology publication that would pay real money IBM was struggling (if $100 billion behemoths can be thought to be struggling). The buzz among the financial analysts who followed the company was that IBM should be broken up into its parts and sold off.  IBM didn’t take that advice, at least not exactly, but it did begin a rebound that included laying off tons of people and the sale of some assets. Since then it invested heavily in things like Linux on z and open systems.

In December IBM SVP Tom Rosamilia talked about new investments in z/OS and z software like DB2 and CICS and IMS, and the best your blogger can tell he is still there. (Rumors suggest Rosamilia is angling for Rometty’s job in two years.)  If the new z does actually arrive in 2017 and key z software is refreshed then z shops can rest easy, at least for another few quarters.  But whatever happens, you can follow it here.

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 technologywriter.com and here.

 

z System-Power-Storage Still Live at IBM

January 5, 2017

A mid-December briefing by Tom Rosamilia, SVP, IBM Systems, reassured some that IBM wasn’t putting its systems and platforms on the backburner after racking up financial quarterly losses for years. Expect new IBM systems in 2017. A few days later IBM announced that Japan-based APLUS Co., Ltd., which operates credit card and settlement service businesses, selected IBM LinuxONE as its mission-critical system for credit card payment processing. Hooray!

linuxone-emperor-2

LinuxONE’s security and industry-leading performance will ensure APLUS achieves its operational objectives as online commerce heats up and companies rely on cloud applications to draw and retain customers. Especially in Japan, where online and mobile shopping has become increasingly popular, the use of credit cards has grown, with more than 66 percent of consumers choosing that method for conducting online transactions. And with 80 percent enterprise hybrid cloud adoption predicted by 2017, APLUS is well positioned to connect cloud transactions leveraging LinuxONE. Throw in IBM’s expansion of blockchain capabilities and the APLUS move looks even smarter.

With the growth of international visitors spending money, IBM notes, and the emergence of FinTech firms in Japan have led to a diversification of payment methods the local financial industry struggles to respond. APLUS, which issues well-known credit cards such as T Card Plus, plans to offer leading-edge financial services by merging groups to achieve lean operations and improved productivity and efficiency. Choosing to update its credit card payment system with LinuxONE infrastructure, APLUS will benefit from an advanced IT environment to support its business growth by helping provide near-constant uptime. In addition to updating its server architecture, APLUS has deployed IBM storage to manage mission-critical data, the IBM DS8880 mainframe-attached storage that delivers integration with IBM z Systems and LinuxONE environments.

LinuxONE, however, was one part of the IBM Systems story Rosamilia set out to tell.  There also is the z13s, for encrypted hybrid clouds and the z/OS platform for Apache Spark data analytics and even more secure cloud services via blockchain on LinuxONE, by way of Bluemix or on premises.

z/OS will get attention in 2017 too. “z/OS is the best damn OLTP system in the world,” declared Rosamilia. He went on to imply that enhancements and upgrades to key z systems were coming in 2017, especially CICS, IMS, and a new release of DB2. Watch for new announcements coming soon as IBM tries to push z platform performance and capacity for z/OS and OLTP.

Rosamilia also talked up the POWER story. Specifically, Google and Rackspace have been developing OpenPOWER systems for the Open Compute Project.  New POWER LC servers running POWER8 and the NVIDIA NVLink accelerator, more innovations through the OpenCAPI Consortium, and the team of IBM and Nvidia to deliver PowerAI, part of IBM’s cognitive efforts.

As much as Rosamilia may have wanted to talk about platforms and systems IBM continues to avoid using terms like systems and platforms. So Rosamilia’s real intent was to discuss z and Power in conjunction with IBM’s strategic initiatives.  Remember these: cloud, big data, mobile, analytics. Lately, it seems, those initiatives have been culled down to cloud, hybrid cloud, and cognitive systems.

IBM’s current message is that IT innovation no longer comes from just the processor. Instead, it comes through scaling performance by workload and sustaining leadership through ecosystem partnerships.  We’ve already seen some of the fruits of that innovation through the Power community. Would be nice to see some of that coming to the z too, maybe through the open mainframe project. But that isn’t about z/0S. Any boost in CICS, DB2, and IMS will have to come from the core z team. The open mainframe project is about Linux on z.

The first glimpse we had of this came last spring in a system dubbed Minsky, which was described back then by commentator Timothy Prickett Morgan. With the Minsky machine, IBM is using NVLink ports on the updated Power8 CPU, which was shown in April at the OpenPower Summit and is making its debut in systems actually manufactured by ODM Wistron and rebadged, sold, and supported by IBM. The NVLink ports are bundled up in a quad to deliver 80 GB/sec bandwidth between a pair of GPUs and between each GPU and the updated Power8 CPU.

The IBM version, Morgan describes, aims to create a very brawny node with very tight coupling of GPUs and CPUs so they can better share memory, have fewer overall GPUs, and more bandwidth between the compute elements. IBM is aiming Minsky at HPC workloads, according to Morgan, but there is no reason it cannot be used for deep learning or even accelerated databases.

Is this where today’s z data center managers want to go?  No one is likely to spurn more performance, especially if it is accompanied with a price/performance improvement.  Whether rank-and-file z data centers are queueing up for AI or cognitive workloads will have to be seen. The sheer volume and scale of expected activity, however, will require some form of automated intelligent assist.

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 technologywriter.com and here

Happy Holidays and Best Wishes for 2017

December 21, 2016

DancingDinosaur is taking the rest of the year off. The next posting will be Jan. 5. In the meantime, best wishes for delightful holidays and a peaceful and prosperous New Year. Good time to read a new book (below).

iot-book-cover-2

Until then, based on comments IBM has hinted at we can expect a new z in 2017, might be the z14 as some suggest or something else. Expect it to be optimized for cognitive computing and the other strategic imperatives IBM has been touting for the past two years. But it also will need to satisfy the installed mainframe data center base so expect more I/O, faster performance, and improved price/performance.

Was nice to see LinuxONE come into its own late this year.  Expect to see much more from this z-based machine in 2017. Probably a new LinuxONE machine in the New Year as well.

And we can expect the new POWER9 this year.  That should perk things up a bit, but realistically, it appears IBM considers platform a dirty word. They really want to be a cloud player doing cognitive computing across a slew of vertical industries.

FYI, an important new book on IoT, Building the Internet of Things, by Maciej Kranz was published late in Nov. (See graphic above. It hit third place on the NY Times non-fiction best seller list in mid December. Not bad for a business tech book. You can find it on Amazon.com here. Kranz is a Cisco executive so if you have a relationship with a Cisco rep see if they’ll give you a free copy. Full disclosure: your blogger was the ghostwriter for the book and was thanked in the acknowledgements at the end of the book.  Like movies, Kranz and I have already started on the sequel, The Co-Economy (although the title may change). The new book is briefly described in the IoT book (pg. 161).

BTW, if you’ve always wanted to author a book but didn’t know how to start or finish or proceed, feel welcome to contact me through Technologywriter.com at the bottom of this post. We’ll figure out how to get it done.

Again, best wishes for the holidays. See you in the New Year.

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 technologywriter.com and here

IBM Demonstrates Blockchain Progress and Clients

December 9, 2016

IBM must have laid off its lawyers or something since never before has the company seemed so ready to reveal clients by name and the projects they’re engaged in.  That has been going on for months and recently it has accelerated.  Credit IBM’s eagerness to get blockchain established fast and show progress with the open community HyperLedger Project.

walmart-ibm-and-tsinghua-university

Exploring the use of blockchain to bring safer food

Since early in 2016 IBM announced almost 20 companies and projects involving blockchain. A bunch are financial services as you would expect. A couple of government entities are included. And then, there is Walmart, a household name if ever there was one.  Walmart is turning to blockchain to manage its supply chain, particularly in regard to food safety and food provenance (tracking where the food came from and its path from source to shelf to the customer).

Here’s how it works: With blockchain, food products can be digitally tracked from an ecosystem of suppliers to store shelves and ultimately to consumers. When applied to the food supply chain, digital product information such as farm origination details, batch numbers, factory and processing data, expiration dates, storage temperatures and shipping detail are digitally connected to food items and the information is entered into the blockchain along every step of the process. Each piece of information provides critical data points that could potentially reveal food safety issues with the product. The information captured and if there is a problem it becomes easy to track down where the process went wrong.

Furthermore, the record created by the blockchain can also help retailers better manage the shelf-life of products in individual stores, and further strengthen safeguards related to food authenticity. In short, Walmart gains better visibility into the supply chain, logistics and food safety as they create a new model for food traceability, supply chain transparency, and auditability using IBM Blockchain based on the open source Linux Foundation Hyperledger Project fabric.

Walmart adds: “As advocates of promoting greater transparency in the food system for our customers, we look forward to working with IBM and Tsinghua University to explore how this technology might be used as a more effective food traceability solution,” said Frank Yiannas, Vice President, Food Safety, Walmart.  If successful, it might get rolled out to North America and the rest of the world.

IBM is not expecting blockchain to emerge full blown overnight. As it noted in its announcement on Wed. blockchain has the potential to transform the way industries conduct business transactions. This will require a complete ecosystem of industry players working together, allowing businesses to benefit from the network effect of blockchain. To that end IBM introduced a blockchain ecosystem to help accelerate the creation of blockchain networks.

And Walmart isn’t the only early adopter of the HyperLedger and blockchain.  The financial services industry is a primary target. For example, the Bank of Tokyo-Mitsubishi UFJ (BTMU) and IBM agreed to examine the design, management and execution of contracts among business partners using blockchain. This is one of the first projects built on the Hyperledger Project fabric, an open-source blockchain platform, to use blockchain for real-life contract management on the IBM Cloud.  IBM and BTMU have built a prototype of smart contracts on a blockchain to improve the efficiency and accountability of service level agreements in multi-party business interactions.

Another financial services player, the CLS Group (CLS), a provider of risk management and operational services for the global foreign exchange (FX) market, announced its intent to release a payment netting service, CLS Netting will use blockchain for buy-side and sell-side institutions’ FX trades that are settled outside the CLS settlement service. The system will have a Hyperledger-based platform, which delivers a standardized suite of post-trade and risk mitigation services for the entire FX market.

To make blockchain easy and secure, IBM has set up a LinuxONE z System as a cloud service for organizations requiring a secure environment for blockchain networks. IBM is targeting this service to organizations in regulated industries. The service will allow companies to test and run blockchain projects that handle private data. The secure blockchain cloud environment is designed for organizations that need to prove blockchain is safe for themselves and for their trading partners, whether customers or other parties.

As blockchain gains traction and organizations begin to evaluate cloud-based production environments for their first blockchain projects, they are exploring ways to maximize the security and compliance of the technology for business-critical applications. Security is critical not just within the blockchain itself but with all the technology touching the blockchain ledger.

With advanced features that help protect data and ensure the integrity of the overall network, LinuxONE is designed to meet the stringent security requirements of the financial, health care, and government sectors while helping foster compliance. As blockchain ramps up it potentially can drive massive numbers of transactions to the z. Maybe even triggering another discount as with mobile transactions.

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 technologywriter.com and here.

 


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