Posts Tagged ‘System z Solution Editions’

IBM z Systems as a Cloud Platform

February 13, 2015

DancingDinosaur wrote a long paper for an audience of x86 users. The premise of the paper: the z Systems in many cases could be a better and even lower cost alternative to x86 for a private or hybrid cloud. The following is an excerpt from that paper.

 cloud_computing_providers

BTW, IBM earlier this month announced it signed a 10-year, large-scale services agreement with Shop Direct to move the multi-brand digital retailer to a hybrid cloud model to increase flexibility and quickly respond to changes in demand as it grows, one of many such IBM wins recently. The announcement never mentioned Shop Direct’s previous platform. But it or any company in a similar position could have opted to build its own hybrid (private/public) cloud platform.

A hybrid cloud a company builds today probably runs on the x86 platform and the Windows OS. Other x86-based clouds run Linux. As demand for the organization’s hybrid cloud grows and new capabilities are added traffic increases.  The conventional response is to scale out or scale up, adding more or faster x86 processors to handle more workloads for more users.

So, why not opt for a hybrid cloud running on the z? As a platform, x86 is far from perfect; too unstable and insecure for starters. By adopting a zEC12 or a z13 to host your hybrid cloud you get one of the fastest general commercial processors in the market and the highest security rating for commercial servers, (EAL 5+). But most x86-oriented data centers would balk. Way too expensive would be their initial reaction. Even if they took a moment to look at the numbers their IT staff would be in open revolt and give you every reason it couldn’t work.

The x86 platform, however, is not nearly as inexpensive as it was believed, and there are many ways to make the z cost competitive. Due to the eccentricities of Oracle licensing on the z Systems, for instance, organizations often can justify the entire cost of the mainframe just from the annual Oracle software license savings. This can amount to hundreds of thousands of dollars or more each year. And the entry level mainframe has a list price of $75,000, not much more than an x86 system of comparable MIPS. And that’s before you start calculating the cost of x86 redundancy, failover, and zero downtime that comes built into the mainframe or consider security. Plus with the z Systems Solution Edition program, IBM is almost giving the mainframe away for free.

Some x86 shops could think of the mainframe as a potent Linux machine that can handle thousands of Linux instances without breaking a sweat. The staff wouldn’t even have to touch z/OS. It also runs Java and Hadoop. And it delivers an astonishingly fast and efficient Linux environment that provides a level of performance that would require a much great number of x86 cores to try to match. And if you want to host an on-premises or hybrid cloud at enterprise scale it takes a lot of cores. The cost of acquiring all those x86 cores, deploying them, and managing them will break almost any budget.

Just ask Jim Tussing, Chief Technology Officer for infrastructure and operations at Nationwide Insurance (DancingDinosaur has covered Tussing before): “We had literally 3000 x86 servers deployed that were underutilized,” which is common in the x86 environment even with VMware or Hyper-V virtualization. At a time when Nationwide was seeking to increase the pace of innovation across its products and channels, but rolling out new environments were taking weeks or months to provision and deploy, again not unheard of in the x86 world. The x86 environment at Nationwide was choking the company.

So, Nationwide consolidated and virtualized as many x86 servers on a mainframe as possible, creating what amounted to an on-premises and hybrid cloud. The payoff: Nationwide reduced power, cooling, and floor space requirements by 80 percent. And it finally reversed the spiraling expenditure on its distributed server landscape, saving an estimated $15 million over the first three years, money it could redirect into innovation and new products. It also could provision new virtual server instances fast and tap the hybrid cloud for new capabilities.

None of this should be news to readers of DancingDinosaur. However some mainframe shops still face organizational resistance to mainframe computing. Hope this might help reinforce the z case.

DancingDinsosaur is Alan Radding, a long-time IT analyst/writer. Follow DancingDinosaur on Twitter, @mainframeblog. See more of my IT writing at Technologywriter.com and here.

IBM Ends 2014 with Flurry of Outsourcing, Cloud Activity

January 4, 2015

Happy New Year. There is much to look forward to in 2015. At the least it probably is time for IBM to rev the System z. The zEnterprise EC12 was introduced in Aug. 2012. You should expect a new machine this year.

ibm cloud centers

IBM ended the year with a flurry of deals involving outsourcing in various forms, hybrid clouds, and the expansion its cloud centers globally. The company made it clear throughout this past difficult year that its focus will be on cloud computing, analytics, and mobile, and that’s what they did. DancingDinosaur will leave to the Wall St. analysts the question of whether the deals represent enough action at a sufficient margin.

IBM believes its future rides on the cloud. To that end it writes: Enterprise cloud deployments, specifically hybrid cloud, are growing at a significant rate.  According to Gartner, nearly half of all enterprises will have a hybrid cloud deployed by 2017.  Chief among the driving forces behind the adoption of cloud computing worldwide, including hybrid cloud, are requirements for businesses and governments to store certain data locally to comply with data residency regulations, as well as a growing desire for startups to expand their businesses globally.  IBM estimates about 100 nations and territories have adopted laws that dictate how governments and private enterprises handle personal data.

The expansion of the company’s global footprint of its cloud centers, now up to 40 locations, represents an effort to capitalize on cloud interest. Since the start of November, the company announced more than $4 billion worth of cloud agreements with major enterprises around the world. These include Lufthansa, ABN AMRO, WPP, Woox Innovations, Dow Water, and Thomson Reuters. Some of these, you will notice, are mainframe shops. DancingDinosaur is assuming they are augmenting their z with a hybrid cloud, not replacing it.

In addition, there are new organizations, referred to by IBM as born-on-the-web innovators, which are building their business on the IBM Cloud. Since November, IBM has announced wins with Diabetizer and Preveniomed, Hancom, Musimundo, and Nubity. Collectively these wins reflect IBM’s ability to deliver a full range of services through the cloud. Some of these are analytics-driven wins.

An interesting recently announced win was Westfield Insurance, which began working with IBM to transform their claims operations. To this end, Westfield is looking at business analytics to increase flexibility, operational efficiency, and effectiveness while enabling the company to keep pace with its evolving customer base and business growth. When DancingDinosaur last checked, Westfield was a z196 shop running DB2.

As IBM reports, leading insurers are leveraging cloud, analytics and social technologies to stay ahead of their competition. Specifically, more than 60% of identified leading insurers are focused on advanced analytics to improve their claims handling in order to streamline processes and increase customer satisfaction. Westfield’s multi-year claims handling transformation initiatives, including process, organizational and technology changes, focus on using data and analytics to better serve customers.

For Westfield, IBM developed a new protocol to migrate data for use with predicative models, built simulation models to evaluate bottlenecks in the claims process, and designed a strategy for expedited workflow.  This simulation helped expedite organizational changes. The new claims system will also utilize a suite of IBM counter-fraud capabilities to detect suspicious activity.

In addition, IBM helped Westfield optimize its current claims handling process to provide a seamless, fully-integrated customer experience. Westfield’s claims system with Guidewire is now consolidated to ensure efficient operations across its network.

To further drive its cloud business IBM simplified its cloud contract with a goal of reducing the complexity and speeding the signing of cloud agreements. The result is a standard, two-page agreement that replaces the previous longer, more complex contracts, which typically entailed long negotiations and reviews before a deal was signed. By comparison, its cloud competitors require customers to review and commit to more complex contracts that commonly are at least five times longer and also incorporate terms and conditions from other websites, IBM reports.

Citing leading industry analyst firms, IBM claims global leadership in cloud computing with a diverse portfolio of open cloud solutions designed to enable clients for the hybrid cloud era. IBM has helped more than 30,000 cloud clients around the world. It boasts of over 30,000 cloud clients, invested more than $7 billion since 2007 in 17 acquisitions to accelerate its cloud initiatives, and holds more than 1,560 cloud patents. IBM also processes more than 5.5 million client transactions daily through its public cloud.

IBM’s initiatives in cloud computing will not diminish its interest in the System z enterprise cloud platform. To the contrary a recent IBM analysis shows the z enhancing the economic advantages of the cloud: a business scaling up to about 200 virtual machines (VM) gets far more efficient and economical results by using the Enterprise Linux Server as an enterprise cloud than with a virtualized x86 or public-cloud model. And the deal gets even better if you acquire the Enterprise Linux Server under either the Solution Edition program for Enterprise Linux  or the System z Solution Edition for Cloud Computing.

DancingDinosaur is Alan Radding, a longtime IT analyst/writer. Follow DancingDinosaur on Twitter, @mainframeblog. Check out more of his work at Technologywriter.com and here.

Compuware Aims for Mainframe Literacy in CIOs

November 13, 2014

Many IT professionals, especially younger ones, are clueless about the mainframe. Chris O’Malley, president of the mainframe business at Compuware, has met CIOs who are versed in everything about IT and have seemingly done everything there is with computers, but “they are not literate about the mainframe.” That means the mainframe never comes to mind. IBM could give away a zEnterprise for free, which it comes close to doing today through the System z Solution Edition program and these CIOs would ignore it. O’Malley wants to address that.

compuware MainframeExcellence2025_cover

In response, Compuware is following the path of the IBM System z Academic Initiative, but without the extensive global involvement of colleges and universities, with a program called Mainframe Excellence 2025, which it describes as a generational call for strategic platform stewardship. “We’re also trying to debunk a lot of issues around the mainframe,” O’Malley continues.

compuware O'Malley headshot

Chris O’Malley, Pres. Mainframe, Compuware

Compuware refers to Mainframe Excellence 2025 as a manifesto, something of a call to arms for millennials to storm the IT gates and liberate IT management from enslavement to x86 computing. Somehow DancingDinosaur doesn’t see it happening exactly that way; it envisions coexistence and synergy.

Most of the Mainframe Excellence document goes over ground DancingDinosaur and many others have covered before. It is delightful, however, to see others refreshing the arguments. And, the document adds some interesting data. For instance, over 1.15 million CICS transactions are executed on System z every second of every day! That’s more than all Google searches, YouTube views, Facebook likes, and Twitter tweets combined.

It also pays homage to what it refers to as the mainframe’s culture of excellence. It characterizes this culture by rigorous adherence to a standard of excellence demonstrably higher than that associated with other platforms, notably x86. IT organizations actually expect, accept, and plan for problems and patches in other platforms (think Microsoft Patch Tuesday). Mainframe professionals, on the other hand, have zero-tolerance for downtime and system failures and the mainframe generally lives up to those high expectations.

Ironically, the document points out that the culture of excellence has created a certain chasm between mainframe professionals and the rest of IT. In fact, this ingrained zero-failure culture of the mainframe community—including both vendors and enterprise IT staffs—can sometimes put it at odds with the very spirit of innovation that allows the mainframe to deliver the repeated advances in price/performance and new capabilities that consistently produce tremendous value.

Compuware concludes its report with an action checklist:

  • Fully inventory existing mainframe data, applications (including business rules), capacity, utilization/MSUs and management tools, a veritable trove a value embedded in mainframe code and business rules.
  • Build a fact-based skills plan with a realistic timeline.
  • Ramp up current and road-mapped mainframe capabilities.
  • Rightsize investments in mainframe application stewardship.
  • Institute an immediate moratorium on short-term cost-cutting that carries long-term negative consequences.
  • Combat denial and hype in regards to non-mainframe platform capabilities, costs and risks.

And Compuware’s final thought should give encouragement to all those who must respond to the mainframe-costs-too-much complaint:  IT has a long history of under-estimating real TCO and marginal costs for new platforms while over-estimating their benefits. A more sober assessment of these platforms will make the strategic value and economic advantages of the mainframe much more evident in comparison.

Compuware certainly is on the right track with Mainframe Excellence 2025. Would like, however, to see the company coordinate its efforts with the System z Academic Initiative, the Master the Mainframe effort, and such.

DancingDinosaur is Alan Radding, a veteran IT writer/analyst. You can follow DancingDinosaur on Twitter, @mainframeblog. Also check out my other IT writing at Technologywriter.com and here.

Expanding Mainframe Linux and Cloud Computing

June 9, 2014

In case you wondered if IBM is seriously committed to both mainframe Linux and cloud computing on the System z platform you need only look at the June 2 announcement that the company is opening the first dedicated System z Linux and cloud computing competency center in Beijing.  According to the announcement, the new center is specifically intended to help organizations there take advantage of Linux and cloud computing solutions on the mainframe, and help accelerate adoption of Linux on System z in China.

This is just the most recent of a number of developments that boosted the System z profile. Even at the recent IBM Edge 2014 conference, which was not about the System z at all (a System z and Power conference, Enterprise 2014, is coming up in October) still managed to slip in some System z sessions and content, including one about protecting DB2 data on z/OS using tape and other sessions that included the System z and Power enterprise servers in discussions on various aspects of cloud computing or the use of flash.

Following the Mainframe50 announcement earlier in the spring, IBM introduced more System z enhancements including the IBM Enterprise Cloud System, an OpenStack-based converged offering that includes compute, storage, software, and services and built around the zBC12; IBM Wave for z/VM, which simplifies z/VM virtualization management and expedites an organization’s path to the cloud; and a new IBM Cloud Management Suite for System z, which handles dynamic provisioning and performance monitoring.

An interesting aspect of this announcement is the IBM’s focus on Linux. It has taken a decade for Linux to gain traction in System z data centers but patience is finally paying off.  Linux has proven instrumental in bringing new mainframe users to the platform (DancingDinosuar previously reported on Algar, a Brazilian telco) ; according to IBM, more than 50% of all new mainframe accounts since 2010 run Linux. To that end, DancingDinosaur has long recommended the Enterprise Linux Server Solution Edition program, a deeply discounted package hardware, middleware, and software. It represents the best and maybe the only bargain IBM regularly offers.

Linux itself has proven remarkably robust and has achieved widespread acceptance among enterprises running a variety of platforms. According to the IDC, Linux server demand is rising due to demand from cloud infrastructure deployments. The researcher expects that demand to continue into the future. In the first quarter of 2014, Linux server revenue accounted for 30 percent of overall server revenue, an increase of 15.4 percent.

Along with cloud computing, collaborative development appears to be contributing to the continued growth and adoption of Linux. According to the Linux Foundation, a new business model has emerged in which companies are joining together across industries to share development resources and build common open source code bases on which they can differentiate their own products and services. This collaborative approach promises to transform a number of industries, especially those involved with cloud computing, social and mobile. Apparently it provides a fast way to create the next generation of technology products.

In its latest survey, the Linux Foundation identified three drivers or the recent Linux growth:

  1. Collaborative software development—ninety-one percent of business managers and executives surveyed ruled collaborative software development somewhat to very important to their business while nearly 80 percent say collaborative development practices have been seen as more strategic to their organization over the past three years.
  2. Growing investments in collaborative software development—44 percent of business managers said they would increase their investments in collaborative software development in the next six months
  3. The benefits of collaboration—more than 77 percent of managers said collaborative development practices have benefited their organizations through a shorter product development cycle/faster time to market.

The bulk of the world’s critical transaction processing and production data continue to reside on the mainframe, around 70 percent, according to IBM. Similarly, 71% of all Fortune 500 companies have their core businesses on a mainframe. And this has remained remarkably steady over the past decade despite the rise of cloud computing. Of course, all these organizations have extensive multi-platform data centers and are adding growing numbers of on-premise and increasingly hybrid cloud systems.

Far from relying on its core production processing to carry the mainframe forever, the new Beijing mainframe Linux-cloud center demonstrates IBM’s intent to advance the mainframe platform in new markets. It is opening the mainframe up in a variety of ways; from z/OS in the cloud to Hadoop for z to new cloud-like pay-for-use pricing models. Watch DancingDinosaur for an upcoming post on the new pricing discounts for mobile transactions on z/OS.

DancingDinosaur is Alan Radding and can be followed on Twitter, @mainframeblog

Best System z TCO in Cloud and Virtualization

May 1, 2014

IBM recently analyzed various likely customer workload scenarios and found that the System z as an enterprise Linux server could consistently beat x86 machines in terms of TCO.  The analysis, which DancingDinosaur will dig into below, was reasonably evenhanded although, like automobile mileage ratings, your actual results may vary.

DancingDinosaur has long contended that the z Enterprise Linux Server acquired under the deeply discounted IBM System z Solution Edition program could beat comparable x86 based systems not only in terms of TCO but even TCA. Algar, a Brazilian telecom, acquired its initial z Enterprise Linux server to consolidate a slew of x86 systems and lay a foundation for scalable growth. It reports cutting data center costs by 70%. Nationwide Insurance, no newcomer to mainframe computing, used the zEnterprise to consolidate Linux servers, achieving $46 million in savings.

The point: the latest IBM TCO analyses confirm what IBM and the few IT analysts who talk to z customers have been saying for some time. TCO advantage, IBM found, switches to the z Enterprise Linux Server at around 200 virtual machines compared to the public cloud and a bit more VMs compared to x86 machines.

IBM further advanced its cause in the TCO/TCA battle with the recent introduction of the IBM Enterprise Cloud System. This is a factory-built and integrated system—processor, memory, network, IFLs, virtualization management, cloud management, hypervisor, disk orchestration, Linux OS—priced (discounted) as a single solution. IBM promises to deliver it in 45 days and have it production ready within hours of hitting the organization’s loading dock. Of course, it comes with the scalability, availability, security, manageability, etc. long associated with the z, and IBM reports it can scale to 6000 VMs. Not sure how this compares in price to a Solution Edition Enterprise Linux Server.

The IBM TCO analysis compared the public cloud, x86 cloud, and the Enterprise Cloud System in terms power and space, labor, software/middleware, and hardware costs when running 48 diverse (a range of low, medium, and high I/O) workloads. In general it found an advantage for the z Enterprise Cloud System of 34-73%.  The z cost considerably more in terms of hardware but it more than made up for it in terms of software, labor, and power. Overall, the TCO examined more than 30 cost variables, ranging from blade/IFL/memory/storage amounts to hypervisor/cloud management/middleware maintenance. View the IBM z TCO presentation here.

In terms of hardware, the z included the Enterprise Linux Server, storage, z/VM, and IBM Wave for z/VM. Software included WebSphere Application Server middleware, Cloud Management Suite for z, and Tivoli for z/VM. The x86 cloud included HP hardware with a hypervisor, WebSphere Application Server, SmartCloud Orchestrator, SmartCloud Monitoring, and Tivoli Storage Manager EE. Both analyses included labor to manage both hardware and VMs, power and space costs, and SUSE Linux.

The public cloud assumptions were a little different. Each workload was deployed as a separate instance. The pricing model was for AWS reserved instances. Hardware costs were based on instances in east US region with SUSE, EBS volume, data in/out, support (enterprise), free and reserved tier discounts applied. Software costs included WebSphere Application Server ND (middleware) costs for instances. A labor cost was included for managing instances.

When IBM applied its analysis to 398 I/O diverse workloads the results were similar, 49-75% lower cost with the Cloud System on z. Again, z hardware was considerably more costly than either x86 or the public cloud. But z software and labor was far less than the others. In terms of 3-year TCO, the cloud was the highest at $37 M, x86 came in at $18.3 M, and the Cloud on z cost $9.4 M. With 48 workloads, the z again came in with lowest TCO at $1 M compared to $1.6 M for x86 systems, and $3.9 M for the public cloud.

IBM kept the assumptions equivalent across the platforms. If you make different software and middleware choices or a different mix of high-mid-low I/O workloads your results will be different but the overall comparative rankings probably won’t change all that much.

Still time to register for IBM Edge2014 in Las Vegas, May 19-23. This blogger will be there hanging around the bloggers lounge when not attending sessions. Please join me there.

Follow Alan Radding/DancingDinosaur on Twitter: @mainframeblog

February 25, 2014

How the 50 Year-Old Mainframe Remains Relevant

The mainframe turns 50 years old this year and the many pundits and experts who predicted it would be long gone by now must be scratching their heads.  Yes, it is still around and has acquired over 260 new accounts just since zEnterprise launch. It also has shipped over 320 hybrid computing units (not to be confused with zBX chassis only) since the zBX was introduced and kicked off hybrid mainframe computing.

As for MIPS, although IBM experienced a MIPS decline last quarter that follows the largest MIPS shipment in mainframe history a year ago resulting in a 2-year CGR of +11%.  (Mainframe sales follow the new product release cycle in a predictable pattern.) IBM brought out the last System z release, the zEC12, faster than the mainframe’s historic release cycle. Let’s hope IBM repeats the quick turnaround with the next release.

Here’s what IBM is doing to keep the mainframe relevant:

  • Delivered steady price/performance improvements with each release. And with entry-level BC-class pricing and the System z Solution Edition programs you can end up with a mainframe system that is as competitive or better than x86-based systems while being more secure and more reliable out of the box.
  • Adopted Linux early, before it had gained the widespread acceptance it has today. Last year over three-quarters of the top 100 enterprises had IFLs installed. This year IBM reports a 31% increase in IFL MIPS. In at least two cases where DancingDinosaur recently interviewed IT managers, Linux on z was instrumental in bringing their shops to the mainframe.
  • Supported for SOA, Java, Web services, and cloud, mobile, and social computing continues to put the System z at the front of the hot trends. It also prominently plays with big data and analytics.  Who ever thought that the mainframe would be interacting with RESTful APIs? Certainly not DancingDinosaur’s computer teacher back in the dark ages.
  • Continued delivery of unprecedented scalability, reliability, and security at a time when the volumes of transactions, data, workloads, and users are skyrocketing.  (IDC predicts millions of apps, billions of users, and trillions of things connected by 2020.)
  • Built a global System z ecosystem of tools and technologies to support cloud, mobile, big data/analytics, social and non-traditional mainframe workloads. This includes acquisitions like SoftLayer and CSL Wave to deliver IBM Wave for z/VM, a simplified and cost effective way to harness the consolidation capabilities of the IBM System z platform along with its ability to host the workloads of tens of thousands of commodity servers. The mainframe today can truly be a fully fledged cloud player.

And that just touches on the mainframe platform advantages. While others boast of virtualization capabilities, the mainframe comes 100% virtualized out of the box with virtualization at every level.  It also comes with a no-fail redundant architecture and built-in networking. 

Hybrid computing is another aspect of the mainframe that organizations are just beginning to tap.  Today’s multi-platform compound workloads are inherently hybrid, and the System z can manage the entire multi-platform workload from a single console.

The mainframe anniversary celebration, called Mainframe50, officially kicks off in April but a report from the Pulse conference suggests that Mainframe50 interest already is ramping up. A report from Pulse 2014 this week suggests IBM jumped the gun by emphasizing how the z provides new ways never before thought possible to innovate while tackling challenges previously out of reach.

Pulse 2014, it turns out, offered 38 sessions on System z topics, of which 27 will feature analysts or IBM clients. These sessions promise to address key opportunities and challenges for today’s mainframe environments and the latest technology solutions for meeting them, including OMEGAMON, System Automation, NetView, GDPS, Workload Automation Tivoli Asset Discovery for z/OS and Cloud.

One session featured analyst Phil Murphy, Vice President and Principal Analyst from Forrester Research, discussing the critical importance of a robust infrastructure in a mixed mainframe/distributed cloud environment—which is probably the future most DancingDinosaur readers face—and how it can help fulfill the promise of value for cloud real time.

Another featured mainframe analyst Dot Alexander from Wintergreen Research who looked at how mainframe shops view executing cloud workloads on System z. The session focused on the opportunities and challenges, private and hybrid cloud workload environments, and the impact of scalability, standards, and security.

But the big celebration is planned for April 8 in NYC. There IBM promises to make new announcements, launch new research projects, and generally focus on the mainframe’s future.  A highlight promises to be Showcase 20, which will focus on 20 breakthrough areas referred to by IBM as engines of progress.  The event promises to be a sellout; you should probably talk to your System z rep if you want to attend. And it won’t stop on April 8. IBM expects to continue the Mainframe50 drumbeat all year with new announcements, deliverables, and initiatives. Already in February alone IBM has made a slew of acquisitions and cloud announcements that will touch every mainframe shop with any cloud interests (which should be every mainframe shop at one point or another).

In coming weeks stay tuned to DancingDinosaur for more on Mainframe50. Also watch this space for details of the upcoming Edge 2014 conference, with an emphasis on infrastructure innovation coming to Las Vegas in May.

Please follow DancingDinosaur on Twitter, @mainframeblog

2014 to be Landmark Year for the Mainframe

February 10, 2014

The official announcement is still a few weeks away and the big event won’t take place until April, but the Internet is full of items about the 50th anniversary of the mainframe. Check some out here, here, and here.

In 1991 InfoWorld editor Stewart Alsop, predicted that on March 15, 1996 an InfoWorld reader would unplug the last mainframe.  Alsop wrote many brilliant things about computing over the years, but this statement will forever stand out as one of the least informed, as subsequent events amply demonstrated.  That statement, however, later became part of the inspiration for the name of this blog, DancingDinosaur. The mainframe did not march inexorably to extinction like the dinosaur as many, many pundits predicted.

It might have, but IBM made some smart moves over the years that ensured the mainframe’s continued relevance for years to come.  DancingDinosaur marks 2000 as a key year in the ongoing relevance of the mainframe; that was the year IBM got serious about Linux on the System z. It was not clear then that Linux would become the widely accepted mainstream operating system it is today.  Last year over three-quarters of the top 100 enterprises had IFLs installed.  There is no question that Linux on the System z has become mainstream.

But it wasn’t Linux alone that ensured the mainframe’s continued relevance. Java enables the development of distributed type of workloads on the System z, which is only further advanced by WebSphere on z, and SOA on z. Today’s hottest trends—cloud, big data/analytics, mobile, and social—can be handled on the z too: cloud computing on z, big data/analytics/real-time analytics on z, mobile computing on z, and even social on z.

Finally, there is the Internet of things. This is a natural for the System z., especially if you combine it with MQTT, an open source transport protocol that enables minimized pub/sub messaging across mobile networks. With the z you probably will also want to combine it with the Really Small Message Broker (RSMB). Anyway, this will be the subject of an upcoming DancingDinosaur piece.

The net net:  anything you can do on a distributed system you can do on the System z and benefit from better resiliency and security built in. Even when it comes to cost, particularly TCO and cost per workload, between IBM’s deeply discounted System z Solution Editions and the introduction of the zBC12, which delivers twice the entry capacity for the same low cost ($75k) as the previous entry-level machine (z114), the mainframe is competitive.

Also coming up is Edge 2014, which focuses on Infrastructure Innovation this year. Please plan to attend, May 19-23 in Las Vegas.  Previous Edge conferences were worthwhile and this should be equally so. Watch DancingDinosaur for more details on the specific Edge programs.

And follow DancingDinosaur on Twitter: @mainframeblog

Latest in System z Software Pricing—Value Unit Edition

December 5, 2013

Some question how sensitive IBM is to System z costs and pricing.  Those that attended any of David Chase’s several briefings on System z software pricing at Enterprise 2013 this past October, however would realize the convulsions the organization goes through for even what seems like the most trivial of pricing adjustments. So, it is not a small deal that IBM is introducing something called Value Unit Edition (VUE) pricing for System z software.

VUE began with DB2. The purpose is to give z data centers greater pricing flexibility while encouraging new workloads on the z. VUE specifically is aimed at key business initiatives such as SOA, Web-based applications, pureXML, data warehousing and operational business intelligence (BI), and commercial (packaged) applications such as SAP, PeopleSoft, and Siebel. What started as a DB2 initiative has now been extended to WebSphere MQ, CICS, and IMS workloads.

In short, VUE pricing gives you a second pricing option for eligible (meaning new) z workloads. BTW, this eligibility requirement isn’t unusual with the z; it applies to the System z Solution Edition deals too. Specifically, VUE allows you to opt to pay for the particular software as a one-time capital expenditure (CAPEX) in the form of a one-time charge (OTC) rather than as a monthly license charge (MLC), which falls into the OPEX category.

Depending on your organization’s particular circumstances the VUE option could be very helpful. Whether it is more advantageous for you, however, to opt for OTC or MLC with any eligible workload is a question only your corporate accountant can answer (and one, hopefully, that is savvy about System z software pricing overall).  This is not something z data center managers are likely to answer on their own.

Either way you go, IBM in general has set the pricing to be cost neutral with a five-year breakeven. Under some circumstances you can realize discounts around the operating systems; in those cases you may do better than a five-year breakeven. But mainly this is more about how you pay, not how much you pay. VUE pricing is available for every System z model, even older ones. Software running under VUE will have to run in its own LPAR so IBM can check its activity as it does with other software under SCRT.

In summary, the main points of VUE are:

  • One-time-charge (OTC) pricing option across key middleware and packaged applications
  • The ability to consolidate or grow new workloads without increasing operational expense
  • Deployment on a z New Application License Charge (zNALC) LPAR, which, as expected, runs under the zNALC terms and conditions
  • Of course, new applications must be qualified; it really has to be new
  • Allows a reduced price for the z/OS operating system
  • Runs as a mixed environment, some software MLC  some OTC
  • Selected ISV offerings qualify for VUE

Overall, System z software pricing can be quite baffling. There is nothing really comparable in the distributed world. The biggest benefit of VUE comes from the flexibility it allows, OPEX or CAPEX, not from not from any small discount on z/OS. Given the set of key software and middleware VUE applies to the real opportunity lies in using its availability to take bring on new projects that expand the footprint of the z in your organization. As DancingDinosaur has pointed out before, the more workloads you run on the z the lower your cost-per-workload.

Follow DancingDinosaur on Twitter, @mainframeblog

Goodbye Itanium, zEnterprise Continues to Grow

November 8, 2013

The HP announcement earlier this week wasn’t specifically the death knell for Itanium-based systems, but it just as well might have been. Rather, HP disclosed plans to extend the HP NonStop architecture to the Intel x86 platform.  With NonStop to be available on x86 servers, why would anyone even consider the Itanium platform?

Meanwhile, at an IBM analyst briefing at Enterprise 2013 and again this week, IBM rattled off growth figures for the zEnterprise: 56% MIPS growth and 6% revenue growth year-to-year, over 230 new z accounts since the introduction of the hybrid zEnterprise, and over 290 hybrid computing devices shipped including over 200 zBX cabinets.  Linux on z continues to penetrate the mainframe world with 80% of the top 100 mainframe enterprises having IFLs installed. But maybe the best sign of the vitality of the zEnterprise was the news that 33 new ISVs brought product to the z platform in 3Q2013.

Another sign of zEnterprise vitality: over 65,000 students entered the Master the Mainframe competition in the last 8 years.  In addition, over 1000 universities are teaching curriculum related to mainframe topics. Are you worried that you will not be able to find mainframe talent going forward? You probably never thought that the mainframe would be cool.

Recruiters from Cigna, Fidelity, JP Morgan Chase, Baldor, Dillars, Wal-mart, and more have been actively recruiting at schools participating in the Academic Initiative. For example, a senior business leader for switching systems at Visa described the Academic Initiative as a critical success factor and a lifeline for the company’s future.

With regard to the Itanium platform, HP’s announcement is more about trying to salvage the NonStop operating system than to save the Itanium server business.  “Extending HP NonStop to an x86 server platform shows a deep level of investment in maintaining the NonStop technology for mission-critical workloads in financial markets, telecommunications and other industries. At the same time, it brings new levels of availability to the x86-based standardized data center infrastructure,” said Jean Bozman, IDC research VP in the HP announcement.

Certainly for those organizations that require continuous operations on x86 the HP move will be a boon. Otherwise, high availability on x86 has always been something of a kluge. But don’t expect HP  to get anything running overnight.  This is just the latest step in a multi-year HP effort underway since 2011, and it will probably be another two years before everything gets ported and fully tested. HP promises to help customers with migration.

DancingDinosaur’s advice to NonStop customers that are frustrated by the underwhelming performance of Itanium systems today: Jump to the zEnterprise, either zEC12 or zBC12. You are almost certain to qualify for one of the deeply discounted System z Solution Edition deals (includes hardware, software, middleware, and 3 years of maintenance).  And something like IBM’s Migration Factory can help you get there. If it has taken HP two years to get this far, you can probably be up and running on z long before they get the first lines of NonStop code ported to x86.

Meanwhile, the System z team hasn’t been twiddling their collective thumbs.  In addition to introducing the zBC12 in July (shipped in Sept.) and absorbing the CSL International acquisition, which should prove quite valuable in z cloud initiatives, there has been a new IBM Entry Cloud Configuration for SAP Solutions on zEnterprise, a version of IBM Cognos TM1 for financial planning, and improved enterprise key management capabilities based on the Crypto Analytics Tool and the Advanced Crypto Services Provider.

System z growth led the enterprise server pack in the Gartner and IDC quarterly tabulations. Ironically, HP did well too with worldwide server shipments growing by more than 5% in the third quarter, halting a slump of eight consecutive quarters of shipment declines, according to preliminary market data from Gartner. Still, DancingDinosaur doesn’t think anyone will miss Itanium.

Follow DancingDinosaur on Twitter, @mainframeblog

New zEnterprise Business Class Entry Model—zBC12

July 23, 2013

IBM introduced its new zEnterprise Business Class machine, the equivalent of the z114 for the zEC12, the zEnterprise BC12 (zBC12).  It offers significantly more power than its predecessor but the $75,000 base price hasn’t changed.

The company has been hinting at the arrival of this machine for months (and DancingDinosaur has been passing along those hints as quickly as they came). Of particular interest is that the System z Solution Edition pricing applies to the zBC12. Solution Edition pricing should make the machine quite competitive with x86-based systems, especially when running multiple Linux instances.

IBM isn’t being coy about its intentions to discount this machine. The initial announcement touted a new Linux-only based version of the zBC12, the Enterprise Linux Server (ELS). The ELS includes hardware, the z/VM Hypervisor, and three years of maintenance at a deeply discounted price. Besides over 3,000 Linux applications it includes two new capabilities, ELS for Analytics and Cloud-Ready for Linux on System z, each acting as an onramp for analytics or cloud computing.

DancingDinosaur has been a big fan of the Solution Edition program as the only way to get serious discounts on a mainframe. The big caveat is the constraints IBM puts on the use of the discounted machine. Each Solution Edition program is negotiated so just make sure you fully understand the constraints and all the fine print so you can live with it for several years. Of course, a zBC12 can be used for anything you would use a mainframe although enterprise Linux serving seems  an ideal use.

Besides its faster processor the zBC12 also offers up 156 capacity settings on each model  to choose just the right capacity setting for your needs along with a new pay-as-you-grow approach. When it is integrated with the IBM DB2 Analytics Accelerator, the zBC12 can perform business analytics workloads with10x better price performance and 14 percent lower total cost of acquisition than the closest competitor, according to IBM.

Out of the box the zBC12 specs look good:

  • 4.2 GHz processor designed to deliver up to a 36% performance increase per core to help boost software performance for business-critical workloads
  • Up to six general purpose processors designed to deliver up to 58% more capacity compared to the z114, which had five general purpose processors
  • Up to a 2x increase in available memory (496 GB) compared to the z114 for improved performance of memory-demanding workloads such as DB2, IBM WebSphere, and Linux on System z

The zBC12 comes in two models, the H06 and H13. Both are air cooled, single frame, or support 30 LPARS. The H06 has one processor drawer for 9 processor units. These can be divided between SAPs, CPs, IFLs/ICFs, zIIPs and zAAPs, and 1 IFP.  The Model H113 has two processor drawers to handle 18 processor units. It allows the same mix of processor types but in larger quantities and 2 dedicated spares. There are configurations where the H06 requires the second processor drawer. The entry processing level is 50 MIPS, up from 26 MIPS with the z114 with no change in the base price.

As far as other pricing, the zBC12 follows essentially an extension of the z114 stack pricing with a 27% price/performance improvement over the z114 for specialty engine pricing, which translates in 36% greater performance for the money.  Pricing for maintenance remains the same. Software keeps with the same pricing curve with a 5% discount applied. The price of Flash Express for the zBC12 remains at $125,000.

IBM has provided a straightforward upgrade path from the z10 or zEnterprise to the zBC12 as well as from the zBC12 to the zEC12. It also can be connected to the zBX (Model 003) to seamlessly manage workloads across a hybrid computing environment consisting of multiple architectures (Linux, AIX, and Intel/Windows).

The announcement of the zBC12 was accompanied by a slew of other new z announcements, including the new IBM zEnterprise Analytics System 9710,and native JSON support to bridge the gap between mobile devices and enterprise data and services along with conversion between JSON  and the new CICS Transaction Server Feature Pack for Mobile Extensions V1.0 and DB2 11 for z/OS (ESP).  Plus there is the new z/VM v6.3 and enhancements to the z/OS Management Facility.

As DancingDinosaur noted last week, expect z sales to get a boost in the next quarter or two as organizations choose the new zBC12. With its improved price/performance and low entry pricing and the Solution Edition deal for the zBC12 ELS the z should see a nice bounce.


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