Sreenath CharyIBM Systems Group-System zBusiness Unit Executive

Managing TCO with SOA: Platform Makes the Difference!

2

Total Cost of Ownership: a significant challenge

Opportunity to lower operational costs and improve TCO

Source: IDC, Virtualization 2.0: The Next Phase in Customer Adoption, Doc #204904, Dec 2006

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1997

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Installed Base(M Units)

Spending(US$B)

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5

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1996

Power and cooling costs

Server mgmt and admin costs

New server spending

3

Enterprise Transactions are on System z… Platform Makes a Difference

8 of every 10 of the largest retail banks in the US, Germany, Japan, and Australia use CICS for their core banking

Government customer processing in excess of 675M messages a day on a single WMQ network

18 of top 20 Fortune 500

customers use WMQ 

CICS is IBM's premier Transaction processor in 90% of the Fortune

500 customers

IDC estimates that $1 Trillion is tied up in applications, processing 30 Billion transactions a day, for a value of $1 Trillion a day.

90% of the World's 100 largest corporations run their businesses on WebSphere Application Server

4

Deploying on System z provides differentiated valueEnabling intelligent IT that works for your business

Server Leadership: 40+ years in the making!

Mainframe utilization rates often exceed 80%, and are designed to handle sustained peak workload utilization of 100% without service level degradation.

The power of many . . .

. . . the simplicity of ONE

The New IBM System z10 Enterprise Class Faster: Processors, memory, network

Consolidation of hundreds of applications

Rapid access to corporate data

Messaging speeds to support SOA

Better price / performance of specialty engines

Just in Time capacity and management

Adapt faster to SOA workload variations

Respond automatically to demand from CICS, IMS, DB2, WebSphere, …

Deploy WebSphere workloads in minutes

5

Performance / Manageability

Foundational ExtendEnd-to-End Transform Adapt

Dynamically

Access to Function & Information on System z

Accuracy/ Control / Reliability Create Dynamic Adaptability

R

elia

bili

ty &

Co

ntr

ol

Performance, cost management, responsiveness

Information integration

Data and app governance

Security hub

Exposing traditional apps & data for quick and easy access: Service enablement

Creating new Web apps

Consolidate apps and data

Web 2.0 Data warehousing

Composite apps Business mash-up SOA hub

Incremental Benefit Paths for System z Workloads

6

SOA Entry Points are a great way to build for changeFor rapid business return

FoundationalExtend

End to end TransformAdapt

Dynamically

Focused, proven, high-ROI projects focused on a single application or business unit

Scenarios to get started with SOA Entry Points

7

CICS Transaction Server V3.2 for z/OS

Create flexible components from existing applications to use in new applications

Extend existing applications to support integrated business processes via standard APIs and protocols

Management of large runtime configurations via modern user interfaces

Reuse Entry Point … … Service enabling existing applications

Interaction Services

Information Services

Partner Services

Business App Services

Access Services

Dev

elo

pm

ent

Ser

vice

s

Man

agem

ent

Ser

vice

s

Infrastructure Services

Ap

ps

&

Info

Ass

ets

Process Services

Business Services

Enterprise Service Bus

CICS Transaction ServerIMS Transaction Manager

DB2 9 for z/OS optimized for SOA

Business insight and flexibility with pureXML

WebSphere integration for trusted applications and web serving

Security & SOA governance capabilities

IMS 10 for z/OS

Reuse your existing and new IT investment for SOA

Ease new application development and management Lower operating costs through z/OS and zAAP engine New security capabilities for greater control Improved auditing and accountability

DB2 z/OSIMS DB

8

WebSphere Application Server V6.1 for z/OS - Powerful combination with new z10

IBM System z10

Hardware features to handle tough workloads– Increased CPU power (64 CPUs/image)– Very large real memory (1 TB)– Increased I/O and network bandwidth– Hyper Dispatch

Improves Security– Advanced Encryption Standard (AES)

using 256 bit key

Estimate WAS V6.1 (Java5) performance on z10 to be 1.5 times

faster

WebSphere Application Server (WAS) for z/OS V6.1 Differentiation

JinsightLive for IBM System z– Dynamic, lightweight Java profiler and visualizer – Handles tens of millions of events to determine

performance bottlenecks WAS capability to enable the New Face of z/OS

Embedded WAS on z/OS to support SSRE– Base for z Management Facility (zMF)

9

Lowering start-up costsAddressing Price/Performance For New WebSphere Projects on z/OS

Getting Started Sub-capacity Pricing for z/OS IPLA Software

Enables customers to start small projects on z/OS

Improves alignment between software use and software charges

Greater flexibility with software licensing

Add hardware capacity and without necessarily increasing software charges

Achieve better price/performance.

OldStarting PointCapacity Based Pricing

AlternativeStartingPointUtilization + Capacity Based Pricing

Receive Sub-LPAR pricing for new entry workload.

zSW License

Application Workload Size

10

Combine the availability, scalability and security of System z with the industry leading Application Server for:

Integration with existing mainframe assets

High performance access to customer information

Server consolidation and simplification

True dynamic scalability for unpredictable workloads

Zero downtime for services that drive the business

Exploitation of Java/J2EE programming skills

Lowest TCO for the lifetime of the application

When to Deploy New Services on System z

Hardware, operating system, and middleware working together to bring true 99.999% application availability to your business critical services.

11

University of FloridaIndustry: EducationURL: http://www.ufl.edu/

Easy linkage between time-proven core business processes and new business models resulting in lower TCO

CHALLENGE

Develop administrative framework for packaged student health program

SOLUTION

SOA with Enterprise Service Bus to connect siloed applications without hand-coding individual API calls

BENEFITS

Lower TCO than other campus implementations Sub-second responses on Web Faster implementation compared to other platforms Seamless integration with existing, locally written CICS Web-

based UF Student Records System

“The CICS Web Services Assistant supports rapid deployment of CICS TS applications to provide and request services. The streamlined process requires a minimum of effort.” –Steve Ware, System Coordinator, Computing & Networking Services, University of Florida

12

WebSphere Enterprise Service Bus 6.1 for z/OS

Leverage existing applications on current SOA environment for

better reuse

Platform-based ESB built on WebSphere Application Server

Leadership in SOA standards for service composition, mediation and hosting

Enhanced ease of use

WebSphere Message Broker 6.1 for z/OS

Platform independent ESB for heterogeneous environments

Improved developer experience for more flexible and robust business solutions

Faster processing and validation Integrated Adapter and

transformation enhancements Enhanced administration

WebSphere DataPower Integration Appliance XI50 3.6.1

Purpose-built hardware for simplified deployment and hardened security

Simplified configuration Improved WebSphere Service

Registry and Repository support Guaranteed critical message delivery Integration with DB2 V9 pureXML

By 2009, Analysts state multiple ESBs will be required to grow your SOA!

Connectivity Entry Point: Federated ESB – integrated framework to meet your needs

13

CICS Transaction Gateway 7.1

Secure, scalable and flexible SOA access to CICS applications

Leverages CICS TS V3.2 - the flagship SOA release of CICS TS

Support your enterprise wide management with enhanced systems monitoring

SOA Connectivity: Enhancing Our Portfolio Accelerate SOA integration

WebSphere Adapters 6.1

Accelerate time to value, and simplify the integration of

applications in a SOA

WebSphere Adapters now available for WebSphere Application Server zOS 6.1

Improve connectivity for application reuse with new Adapter Nodes for WebSphere Message Broker V6.1

WebSphere Transformation Extender V8.2

Accelerates time to value and simplifies standards compliance

Linux for System Z New Eclipse std Design Studio New Edition for Integration

Servers supports ESB and BPM New ACORD Pack for Insurance New NACHA Pack for ePayments

14

IBM WebSphere MQ V7

IBM WebSphere MQ V7

Web 2.0Java Message Service (JMS) MQ Interface

Multi-LanguageMessage Service

Publish Subscribe

WebSphere MQ V7

Web 2.0

HTTP GET

HTTP POST

HTTP DELETE

AJAXApplications and Data

WebSphere MQ V7

Universal Messaging Backbone for SOA and Web 2.0Enabling reliable connectivity from z/OS to virtually

any other commercial IT systemWeb 2.0 support to help create richer user experience

Uses real business data from z/OS applicationsEnhanced WebSphere MQ clients for increased

throughput resilience and availability

15 Years

WebSphere MQ V7 Performance Enhancements

Enhanced publish-and-subscribe performance –z/OS: New publish-and-Subscribe support

Enhanced JMS performance–z/OS: Increasing JMS listener throughput by up to 220%*

* Preliminary results observed on pre-release level code. For the latest performance information please click on Performance Reports at www.ibm.com/webspheremq/support

15

When to use System z as the Hub for your ESB

Integration: – Complex transactions and roll back

– Monitor end-to-end transactions in complex configurations

– Allocate resources according to business goals

– Provide single point of control

– Meet security & regulatory requirements

Business criticality:– QoS & security are high-priority factors

– Need to handle unpredictable workloads

– Business services are reused by an increasing number of critical applications

Performance:– Key applications and data reside on

System z

Growth:– Quickly add new services and capacity with

no disruption to apps or users

Virtualization – High resource utilization

– Massive consolidation and simplification

– Enterprise workload management

– Workload isolation and security

Handles business critical workloads – Up to 99.999% availability

– Recover whole systems across distances

– Dynamic workload balancing

– Simplification of security management

Performance – ESB performance improvements when

co-locating with z/OS data

– Customer PoC example - Average CPU time reduced by over 77%

Efficient growth– Pay for what you use, add capacity and

applications quickly and automatically

ESB requirements System z benefits for ESBs

16

Ball State UniversityIndustry: EducationURL: http://cms.bsu.edu/

Ball State University bridges disparate systems and solves key administrative issue with IBM SOA solution.

CHALLENGE

Coordinate 40 name and address systems to streamline administrative processes and ensure information integrity for users

SOLUTION

SOA with Enterprise Service Bus to connect siloed applications without hand-coding individual API calls

BENEFITS

Ability to develop and implement services in an SOA environment for resolving name and address discrepancies in 10 months, as opposed to several years for hand-coding individual application connections

Confidence that IBM solution can lead to wider use of SOA to further streamline administrative business processes

Services created here can be reused in later SOA efforts

“SOA has been such a gift to us. It enables us to embrace a new technology that provides services at a level that we couldn’t even imagine before.”–Dr. O’Neal Smitherman

17

Business Process Management Enabled by SOA BPM covers the entire lifecycle of your new business process

1. Design, Model and Simulate

2. Automate and Change Rapidly

3. Monitor, Analyze and Optimize

End-to-End Process

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Existing System z CustomersStreamline and Automate Existing Processes

Customer Presales

Account Application

Credit Check

Verification and Regulatory Compliance

Activation and Fulfillment

Customer Presales

Account Application

Verification and Regulatory Compliance

Credit Check Activation and Fulfillment

Take individual steps…

…assemble and automate instead of re-writing!

19

Process Choreography on an SOA-Enabled Platform

An SOA environment that provides:

Process Automation & Execution

Human Task Management

Application Integration

Built on SOA

“IBM is the first and so far the only infrastructure software supplier to offer a complete BPMS supporting the end-to-end lifecycle from analytical modeling to performance management and optimization – based entirely on service oriented architecture.”

Bruce Silver, Bruce Silver Associates – The 2006 BPMS Report

20

SOA Process: Enhancing Our Portfolio A discipline enhanced by flexible architecture

WebSphere Process Server for z/OS V6.1

Accelerate time to value, and simplify the integration of applications in a SOA

Improve connectivity for application reuse

WebSphere Adapters now available on z/OS 6.1

WebSphere Business Modeler V6.1

Visualize, understand, and document your business

processes

Document processes to better understand your business

Discover potential areas for process improvement and latent value in processes

WebSphere Business Monitor V6.1

Comprehensive business activity monitoring of your business

performance

End-to-end visibility of business performance through dashboards

Advanced analytics for decision making

WebSphere Integration Developer V6.1

Eclipse-based tool for building SOA-based BPM and integration solutions

Enables rapid assembly of business solutions by wiring reusable service components

21

WebSphere Business Service Fabric V6.1

End-to-end SOA platform for composite business services

Extends WebSphere Process Server for z/OS and WebSphere Integration Developer

WebSphere Business Services FabricEnd-to-End Platform for Industry SOA Solutions

Interaction Services

Information Services

Partner Services

Business App Services

Access Services

Dev

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Ser

vice

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Man

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Ser

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Infrastructure Services

Ap

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&

Info

Ass

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Process Services

Business Services

Enterprise Service Bus

WebSphereBusiness Services

Fabric

22

When to Use System z for Process Serving

Efficiency Integration Automation Reliability Workload Management Security Availability Performance

Personal Loan Request(New WASz Application)

Get Customer Information(Existing CICS application)

Credit Rating(External Bureau)

DB2

Approval(Human Task)

ApprovedNot Approved

Additional Services(CRM System)

Reply(Human or Electronic)

Internet

System z–The choreographer for an SOA

23

Customer Example: TeleconIndustry: Telecon

Accelerate the integration of mission-critical systems to improve operations and customer service

CHALLENGE

Eliminate overlapping redundant systems and data Need for flexible systems to meet business needs Improve operations and customer service

SOLUTION

The WSRR and WebSphere Process Server were deployed to improve relationship management and sales systems

BENEFITS

Convenient way to catalog their services Notifications to service supervisors, owners and subscribers Governance of the lifecycle of services

24

Full version software trials

‘Try online’ hosted environments

Tutorials

Architectural Guidance

SOA Sandbox on developerWorksExamples and best practices provide low risk, practical, hands-on path to understanding

SOA ConfigurationsSolutions for common SOA use cases helps reduce deployment time

Configuration guides

Solution Guides

Demos

Tested platforms

System z Configurations for SOALeveraging Legacy and Packaged ApplicationsSOA Security and Management

Simpler than ever to use SOA Entry PointsProven configurations, best practices, and step by step guides

25

Transactions Must Execute Consistently with Ability to Recover as Required

Users Must Be Provided with Up-to-date, Secure

Access to Information and Content

Information Must be Reliable, Complete and Manageable

Process Integrity is the ability to conduct reliable business activity

Process Integrity Takes SOA to the Next LevelSupporting Integrity of Transactions, Interactions & Information

26

Process Integrity for System z

–WebSphere MQ for z/OS, WebSphere Message Broker for z/OS, WAS for z/OS, WESB for z/OS, WebSphere Process Server for z/OS, and WebSphere Business Services Fabric

– Fully ARM-enabled

– Workload Management

–Goal-oriented resource allocation

–Workload scaling, workload isolation

– Takes full advantage of Parallel Sysplex for with MQ Shared Queues

– Sophisticated heterogeneous transaction coordination

– Supports DB2 data sharing, CICS EXCI support and Resource Recovery System (RRS) global transaction coordination

– RACF for integrated security

– Reporting and Chargeback Reduced points of failure

Faster processing Fast End-to-end

recovery

27

Infrastructure Simplification … … a Critical Success Factor for SOA

Operational silos Multiple tiers Inflexible with increasing

cost Growing complexity

Today’s Environment,

Simplified

Scale up and scale out to manage costs through better utilization of IT assets Standardize, automate, and integrate business processes, information, and underlying IT Infrastructure

Select the resources providing the values to best meet on demand business requirements

File/PrintServers

Secure DatabaseVault

TransactionServers

Web ServersApplication

Servers

Enterprise Trust Authority

Utility Consolidation(eg. File/Print server)

System pSystem z

Mainframe

Application Servers

Collaboration Servers

Terminal ServingSSL Appliances

Utility Infrastructure

Web Services E-CommerceApplications

Deep Computing

JavaLinuxGrid

TransactionDataReference

DataBackup

Data

SAN Storage

Data

BladeCenter

FirewallServers

RoutersSwitches

UI Data

DNSServers

CachingAppliances

Web Servers

SSLAppliances

ApplicationServers

Security &Directory Servers

File/PrintServers

LAN Servers

DatabaseServers

Business Data

PCs

UNIX

UNIX

PCs

Mainframe

2828

TCO Is Better on System z … … IBM Distributed Consolidation to System z

Performed TCO and consolidation assessment on IBM portfolio

Analysis considers today’s environment vs. “to be” environment; savings is net after hardware and migration investments

Identified substantial savings opportunity

Annual Energy Usage reduced by 80%

Total floor space reduced by 85%

Cumulative 5 Year Cost Comparison

1st Year 2nd Year 3rd Year 4th Year 5th Year

M$

z9 Cumulative Distributed Cum

Steady State Savings

Labor54%

Software36%

Facilities Connectivity

Storage10%

© 2008 IBM Corporation

Questions & Answers