Posts Tagged ‘Open POWER Consortium’

IBM z System Shines in 3Q15 Quarterly Report

October 23, 2015

IBM posted another down quarter this past Monday, maybe the thirteenth in a row; it’s easy to lose track. But yet again, the IBM z System provided a bright spot, a 15 percent increase compared with the year-ago period. Last quarter the z also came up a winner. Still the investment analysts went crazy, the stock tumbled, and wild scenarios, inspired by Dell’s acquisition of EMC no doubt, began circulating.

ibm-z13

IBM z13

However, don’t expect IBM to be going away anytime soon. DancingDinosaur is a technology analyst and writer, absolutely not a financial analyst (his wife handles the checkbook).  If you look at what has been going on in the past two years with z System and POWER from a technology standpoint these platforms are here for the long haul.  Most of the top 100 companies rely on a mainframe.  Linux on z has become a factor in roughly 70 percent of the leading shops. When DancingDinosaur last ran the numbers there still are about 5000-6000 active mainframe shops and the numbers aren’t dropping nearly as fast as some pundits would have you believe.

primary-linuxone-emperor

IBM LinuxONE

The z13 and LinuxONE are very powerful mainframes, the most powerful by any number of measures in the industry.  And they are a dramatically different breed of enterprise platform, capable of concurrently running mixed workloads—OLTP, mobile, cloud, analytics—with top performance, scalability, and rock solid security. The Open Mainframe Project in conjunction with the Linux Foundation means that IBM no longer is going it alone with the mainframe. A similar joint effort with the Open POWER Consortium began delivering results within a year.

The Dell-EMC comparison is not a valid one. EMC’s primary business was storage and the business at the enterprise level has changed dramatically. It has changed for IBM too; the company’s revenues from System Storage decreased 19 percent. But storage was never as important to the company as the z, which had long been its cash cow, now diminished for sure but still worth the investment. The dozens and dozens of acquisitions EMC made never brought it much in terms of synergy. IBM, at least, has its strategic imperatives plan that is making measurable progress.

IBM’s strategic imperatives, in fact, were the only business that was doing as well as the z. Strategic imperatives revenue: up 27 percent year-to-year; Cloud revenue up more than 65 percent year-to-date.  Total cloud revenue hit $9.4 billion over the trailing 12 months. Cloud delivered as a service had an annual run rate of $4.5 billion vs. $3.1 billion in third-quarter 2014.  Business analytics revenue was up 19 percent year-to-date. Be interesting to see what cognitive computing and Watson can produce.

Besides storage, the other dim spot in the IBM platform story is Power Systems.  Revenues from Power Systems were down 3 percent compared with the 2014 period. DancingDinosaur, long a fan of Power Systems, anticipates the platform will turn positive next quarter or the first quarter of 2016 as some of the new technology and products coming, in part, from the Open POWER Consortium begin to attract new customers and ring up sales. The new Power Systems LC Server family should attract interest for hybrid Cloud, Hyperscale Data Centers, and Open Solutions, hopefully bringing new customers. With online pricing starting around $6600 the LC machines should be quite competitive against x86 boxes of comparable capabilities.

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.

 

Open POWER Consortium Aims to Expand the POWER Ecosystem beyond IBM

August 7, 2013

With IBM’s August 6 announcement of new POWER partners, including Google, not only is IBM aiming to expand the variety of POWER workloads but establish an alternative ecosystem to Intel/ x86 that continues to dominate general corporate computing.  Through the new Open POWER Consortium, IBM will make  POWER hardware and software available for open development for the first time as well as offer open-source POWER firmware, the software that controls basic chip functions. By doing this, IBM and the consortium can enable innovative customization in creating new styles of server hardware for a variety of computing workloads.

IBM has a long history of using open consortiums to grab a foothold in different markets;  as it did with Eclipse (open software development tools), Linux (open portable operating system), KVM (open hypervisor and virtualization), and OpenStack (open cloud interoperability). In each case, IBM had proprietary technologies but could use the open source consortium strategy to expand market opportunities at the expense of entrenched proprietary competitors like Microsoft or VMware.  The Open POWER Consortium opens a new front against Intel, which already is scrambling to fend off ARM-based systems and other lightweight processors.

The establishment of the Open POWER Consortium also reinforces IBM’s commitment to the POWER platform in the face of several poor quarters. The commitment to POWER has never really wavered, insists an IBM manager, despite what financial analysts might hint at. Even stronger evidence of that commitment to POWER is POWER8, which is on track for 2014 if not sooner, and POWER9, which is currently in development, he confirmed.

As part of its initial collaboration within the consortium, IBM reported it and NVIDIA will integrate NVIDIA’s CUDA GPU and POWER.  CUDA is a parallel computing platform and programming model that enables dramatic increases in computing performance by harnessing the power of the graphics processing unit (GPU).  GPUs increasingly are being used to boost overall system performance, not just graphics performance. The two companies envision powerful computing systems based on NVIDIA GPUs and IBM’s POWER CPUs  and represent an example of the new kind of systems the open consortium can produce.

However, don’t expect immediate results.  The IBM manager told DancingDinosaur that the fruits of any collaboration won’t start showing up until sometime next year. Even the Open POWER Collaboration website has yet to post anything. The consortium is just forming up; IBM expects the public commitment of Google to attract other players, which IBM describes as the next generation of data-center innovators.

As for POWER users, this can only be a good thing. IBM is not reducing its commitment to the POWER roadmap, plus users will be able to enjoy whatever the new players bring to the POWER party, which could be considerable. In the meantime, the Open POWER Consortium welcomes any firm that wants to innovate on the POWER platform and participate in an open, collaborative effort.

An even more interesting question may be where else will IBM’s interest in open systems and open consortiums take it. IBM remains “very focused on open and it’s a safe bet that IBM will continue to support open technologies and groups that support that,” the IBM manager told DancingDinosaur.  IBM, however, has nothing to announce after the Open POWER Consortium. Hmm, might a z/OS open collaborative consortium someday be in the works?

SHARE will be in Boston next week. DancingDinosaur expects to be there and will report on the goings-on. Hope to see some of you there.  There also are plans for a big IBM System z/Power conference, Enterprise Systems 2013, toward to end of October in Florida.  Haven’t seen many details yet, but will keep you posted as they come in.


%d bloggers like this: