Posts Tagged ‘pervasive encryption’

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 technologywriter.com 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 technologywriter.com and here.

 


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