Posts Tagged ‘Microsoft Azure’

IBM Expands and Enhances its Cloud Offerings

June 15, 2018

IBM announced 18 new availability zones in North America, Europe, and Asia Pacific to bolster its IBM Cloud business and try to keep pace with AWS, the public cloud leader, and Microsoft. The new availability zones are located in Europe (Germany and UK), Asia-Pacific (Tokyo and Sydney), and North America (Washington, DC and Dallas).

IBM cloud availability zone, Dallas

In addition, organizations will be able to deploy multi-zone Kubernetes clusters across the availability zones via the IBM Cloud Kubernetes Service. This will simplify how they deploy and manage containerized applications and add further consistency to their cloud experience. Furthermore, deploying multi-zone clusters will have minimal impact on performance, about 2 ms latency between availability zones.

An availability zone, according to IBM, is an isolated instance of a cloud inside a data center region. Each zone brings independent power, cooling, and networking to strengthen fault tolerance. While IBM Cloud already operates in nearly 60 locations, the new zones add even more capacity and capability in these key centers. This global cloud footprint becomes especially critical as clients look to gain greater control of their data in the face of tightening data regulations, such as the European Union’s new General Data Protection Regulation (GDPR). See DancingDinosaur June 1, IBM preps z world for GDPR.

In its Q1 earnings IBM reported cloud revenue of $17.7bn over the past year, up 22 percent over the previous year, but that includes two quarters of outstanding Z revenue that is unlikely to be sustained,  at least until the next Z comes out, which is at least a few quarters away.  AWS meanwhile reported quarterly revenues up 49 percent to $5.4 billion, while Microsoft recently reported 93 percent growth for Azure revenues.

That leaves IBM trying to catch up the old fashioned way by adding new cloud capabilities, enhancing existing cloud capabilities, and attracting more clients to its cloud capabilities however they may be delivered. For example, IBM announced it is the first cloud provider to let developers run managed Kubernetes containers directly on bare metal servers with direct access to GPUs to improve the performance of machine-learning applications, which is critical to any AI effort.  Along the same lines, IBM will extend its IBM Cloud Private and IBM Cloud Private for Data and middleware to Red Hat’s OpenShift Container Platform and Certified Containers. Red Hat already is a leading provider of enterprise Linux to Z shops.

IBM has also expanded its cloud offerings to support the widest range of platforms. Not just Z, LinuxONE, and Power9 for Watson, but also x86 and a variety of non-IBM architectures and platforms. Similarly, notes IBM, users have gotten accustomed to accessing corporate databases wherever they reside, but proximity to cloud data centers still remains important. Distance to data centers can have an impact on network performance, resulting in slow uploads or downloads.

Contrary to simplifying things, the propagation of more and different types of clouds and cloud strategies complicate an organization’s cloud approach. Already, today companies are managing complex, hybrid public-private cloud environments. At the same time, eighty percent of the world’s data is sitting on private servers. It just is not practical or even permissible in some cases to move all the data to the public cloud. Other organizations are run very traditional workloads that they’re looking to modernize over time as they acquire new cloud-native skills. The new IBM cloud centers can host data in multiple formats and databases including DB2, SQLBase, PostreSQL, or NoSQL, all exposed as cloud services, if desired.

The IBM cloud centers, the company continues, also promise common logging and services between the on-prem environment and IBM’s public cloud environment. In fact, IBM will make all its cloud services, including the Watson AI service, consistent across all its availability zones, and offer multi-cluster support, in effect enabling the ability to run workloads and do backups across availability zones.

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

IBM Discounts z/OS Cloud Activity

August 12, 2016

The latest iteration of IBM’s z/OS workload pricing aims at to lower the cost of running cloud workloads.  In a recent announcement, z Systems Workload Pricing for Cloud (zWPC) for z/OS seeks to minimize the impact of new public cloud workload transaction growth on Sub-Capacity license charges. IBM did the same thing with mobile workloads when they started driving up the 4-hour workload averages on the z. As more z workloads interact with public clouds this should start to add up, if it hasn’t already.

bluemix garage -ni_5554516560

Bluemix Garages in the Cloud

As IBM puts it: zWPC applies to any organization that has implemented Sub-Capacity pricing via the basic AWLC or AEWLC pricing mechanisms for the usual MLC software suspects. These include z/OS, CICS, DB2, IMS, MQ and WebSphere Application Server (WAS).  An eligible transaction is one classified as Public Cloud-originated, connecting to a z/OS hosted transactional service and/or data source via a REST or SOAP web service.  Public cloud workloads are defined as transactions processed by named Public cloud application transactions identified as originating from a recognized Public Cloud offering, including but not limited to, Amazon Web Services (AWS), Microsoft Azure, IBM Bluemix, and more.

IBM appears to have simplified how you identify eligible workloads. As the company notes: zWPC does not require you to isolate the public cloud work in separate partitions, but rather offers an enhanced way of reporting. The z/OS Workload Manager (WLM) allows clients to use WLM classification rules to distinguish cloud workloads, effectively easing the data collection requirements for public cloud workload transactions.

So how much will you save? It reportedly reduces eligible hourly values by 60 percent. The discount produces an adjusted Sub-Capacity value for each reporting hour. What that translates into on your monthly IBM software invoice once all the calculations and fine print are considered amounts to a guess at this point. But at least you’ll save something. The first billing eligible under this program starts Dec. 1, 2016.

DancingDinosaur expects IBM to eventually follow with discounted z/OS workload pricing for IoT and blockchain transactions and maybe even cognitive activity. Right now the volume of IoT and blockchain activity is probably too low to impact anybody’s monthly license charges. Expect those technologies ramp up in coming years with many industry pundits projecting huge numbers—think billions and trillions—that will eventually impact the mainframe data center and associated software licensing charges.

Overall, Workload License Charges (WLC) constitute a monthly software license pricing metric applicable to IBM System z servers running z/OS or z/TPF in z/Architecture (64-bit) mode.  The driving principle of WLS amounts to pay-for-what-you-use, a laudable concept. In effect it lowers the cost of incremental growth while further reducing software costs by proactively managing associated peak workload utilization.

Generally, DancingDinosaur applauds anything IBM does to lower the cost of mainframe computing.  Playing with workload software pricing in this fashion, however, seems unnecessary. Am convinced there must be simpler ways to lower software costs without the rigmarole of metering and workload distribution tricks. In fact, a small mini-industry has cropped up among companies offering tools to reduce costs, primarily through various ways to redistribute workloads to avoid peaks.

A modification to WLC, the variable WLC (VWLC) called AWLC (Advanced) and the EWLC (Entry), aligns with most of the z machines introduced over the past couple of years.  The result, according to IBM, forms a granular cost structure based on MSU (CPU) capacity that applies to VWLC and associated pricing mechanisms.

From there you can further tweak the cost by deploying Sub-Capacity and Soft Capping techniques.  Defined Capacity (DC), according to IBM, allows the sizing of an LPAR in MSU such that the LPAR will not exceed the designated MSU amount.  Group Capacity Limit (GCL) extends the Defined Capacity principle for a single LPAR to a group of LPARs, allowing MSU resources to be shared accordingly.  BTW, a potential downside of GCL is that is one LPAR in the group can consume all available MSUs due to a rogue transaction. Again, an entire mini industry, or maybe no so mini, has emerged to help handle workload and capacity pricing on the z.

At some point in most of the conference pricing sessions the eyes of many attendees glaze over.  By Q&A time the few remaining pop up holding a copy of a recent invoice and ask what the hell this or that means and what the f$#%@#$ they can do about it.

Have to admit that DancingDinosaur did not attend the most recent SHARE conference, where pricing workshops can get quite energetic, so cannot attest to the latest fallout. Still, the general trend with mobile and now with cloud pricing discounts should be lower costs.

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

 

IBM 2Q 2016 Report—Where’s z System and POWER?

July 22, 2016

“IBM continues to establish itself as the leading cognitive solutions and cloud platform company,” said Ginni Rometty, IBM chairman, president and chief executive officer, in a statement accompanying the latest IBM 2Q financial report. The strategic imperatives grew; second-quarter revenues from its cloud, analytics, and engagement units— increased 12 percent year to year.

IBM Quantum Computing Lab - Friday, April 29, 2016, Yorktown Heights, NY (Jon Simon/Feature Photo Service for IBM)

IBM Quantum Experience delivered via Cloud (Jon Simon/Feature Photo Service for IBM)

Where’s z and POWER? The z and POWER platforms continued to flounder: revenues of $2.0 billion, down 23.2 percent. Revenue reflects z Systems product cycle dynamics; gross profit margin improved in both z Systems and Power. “Product cycle dynamics” refers to the lack of a new z.  In the past year IBM introduced the new LinuxONE and, more recently a new z13s, essentially what used to be known as a Business Class mainframe.

There is no hint, however, of a new z, a z14 that will drive product dynamics upward. IBM showed a POWER roadmap going all the way out to the POWER10 in 2020 but nothing comparable for the z.

DancingDinosaur, a longtime big iron bigot, remains encouraged by IBM’s focus on its strategic initiatives and statements like this: “And we continue to invest for growth with recent breakthroughs in quantum computing, Internet of Things and blockchain solutions for the IBM Cloud.” IBM strategic initiatives in cloud, mobile, IoT, and blockchain will drive new use of the mainframe, especially as the projected volumes of things, transactions, users, and devices skyrocket.

Second-quarter revenues from the company’s strategic imperatives — cloud, analytics and engagement — increased 12 percent year to year.  Cloud revenues (public, private and hybrid) for the quarter increased 30 percent.  Cloud revenue over the trailing 12 months was $11.6 billion.  The annual run rate for cloud as-a-service revenue — a subset of total cloud revenue — increased to $6.7 billion from $4.5 billion in the second quarter of 2015.  Revenues from analytics increased 5 percent.  Revenues from mobile increased 43 percent and from security increased 18 percent.

IBM indirectly is trying to boost the z and the cloud. CSC and IBM  announced an alliance with IBM in which IBM will provide CSC Cloud Managed Services for z Systems. CSC already includes IBM SoftLayer as part of its “Service-enabled Enterprise” strategy. “Cloud for z” extends that offering and will be of interest to current and potential mainframe customers in healthcare, insurance, and finance. CSC still sees life in the managed mainframe market, and IBM Global Technology Services, a competitor to CSC, apparently is happy to let them sell managed cloud services for mainframes. All this is taking place as IBM scrambles to secure a leadership share of cloud revenue, and any cloud billing CSC brings will help.

Microsoft, like IBM, claimed big cloud momentum on its fourth quarter conference call, according to a report in Fortune Magazine. It was enough to send Microsoft share price up 4% at one point in after hours trading.

As Fortune notes, for Microsoft as for IBM and other legacy IT providers like Oracle, putting up big cloud numbers is mandatory as more companies change the way they buy IT products. Instead of purchasing hundreds or thousands of new servers or storage boxes every few years, more companies are running their software and storing their data on shared public cloud infrastructure, like Microsoft Azure, Amazon Web Services, the Google Compute Platform, or the IBM Cloud.

For reporting purposes, Microsoft combines Azure with other products in its intelligent cloud product segment. Overall, that segment’s revenue grew about 7% year over year to $6.7 billion from about $6.3 billion.

Oracle, too, is facing the same scramble to establish an enterprise cloud presence. Cloud software as a service (SaaS) and platform as a service (PaaS) revenues were $690 million, up 66% in U.S. dollars. Total Cloud revenues, including infrastructure as a service (IaaS), were $859 million, up 49% in U.S. dollars. At the same time, Oracle’s hardware revenue fell by 7% to $1.3 billion, and its software license revenue fell by 2% to $7.6 billion.

“We added more than 1,600 new SaaS customers and more than 2,000 new PaaS customers in Q4” (which ended in June), said Oracle CEO, Mark Hurd. “In Fusion ERP alone, we added more than 800 new cloud customers. Today, Oracle has nearly 2,600 Fusion ERP customers in the Oracle Public Cloud — that’s ten-times more cloud ERP customers than Workday.”

Hewlett Packard Enterprise (HPE) is the last of the big public enterprise platform vendors, along with IBM and Oracle. (Dell is private and acquired EMC). HPE recently reported its best quarter in years. Second quarter net revenue of $12.7 billion, up 1% from the prior-year period. “Today’s results represent our best performance since I joined in 2011,” said Meg Whitman, president and chief executive officer, Hewlett Packard Enterprise. The businesses comprising HPE grew revenue over the prior-year period on an as-reported basis for the first time in five years.

IBM needs to put up some positive numbers. Seventeen consecutive losing quarters is boring. Wouldn’t it be exciting if a turnaround started with a new enterprise z14?

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

 


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