Linux Is Ready for Business

1
Linux Is Ready for Business!

• Small and Medium Business Focus

Carol Holliman
Linux Business Area Leader, Global SMB (405)
321-4077 chollim_at_us.ibm.com
2
What is Linux

• UNIX-like operating system developed by Linus
  Torvalds
• Version 2.4 available
• Developed / tested by the Open Source community
• Highly disciplined / structured
• High quality
• Secure
• Stable
• Packaged and shipped by distributors
• SCO Group (Caldera)
• Red Hat
• SuSE
• Turbolinux
• Other regional distributors (Red Flag, Conectiva,
  Mandrake, etc...)

3
Linux Distributors Combine their Power
UnitedLinux Open Industry Consortium

• Concept
• Binary-compatible Linux distribution, branded
  "UnitedLinux"
• Initial Members SCO Group (Caldera), SuSE,
  Turbolinux, Conectiva
• Open to others
• Business Model
• Distributors add software and services
• Distributors maintain brand names with
  "UnitedLinux Inside"
• UnitedLinux promotes the brand, issue
  memberships, certifications, manages requirements
• SuSE acts as UnitedLinux systems integrator
• Implementation
• Supported by all IBM eServer platforms, key
  middleware
• Worldwide language support, standards based (e.g.
  LSB 1.1, LI18NUX)

4
Linux Momentum

Linux will become the dominant server operating
system in the United States by 2005. Stacey
Quandt, Giga, Business 2.0, June 17, 2002 Linux
will have a "breakout year" in 2002. Now it seems
clear that Linux has become a viable alternative
for enterprise use. IDC, January 2002 By 2006,
Linux will be a key foundation for a strategic,
cross-development-platform environment,
accelerating Unix server consolidation, while
creating a powerful alternative to Windows
.NET. Gartner, May 2002
Server Shipments by OS Growth
2001 2002 2003 2004 2005
2006
IDC, Enterprise Server Fundamentals, March 2002
5
Linux Value

Cost Effective
Reliability
Performance
Open Standards
0
20
40
60
80
100
Source IBM Market Research 2001
"It's going to be almost 30 times cheaper to run
and maintain" (than Sun systems)
Josh Levine
Chief Administrative Officer and President,
eTrade Technologies
6
Recent Linux News

• German Department of Interior chooses Linux
• "With the contract with IBM we meet three key
  targets we raise the level of IT security by
  avoiding monocultures we lower the dependency on
  single software vendors and we reach costs
  savings in software and operation costs. Otto
  Schily, German Minister of the Interior
• Walmart selling 299 Linux PCs
• Lindows distribution (allows some Windows
  programs to run on Linux)
• Full compliment of Linux client software
• VA Software chooses DB2, WebSphere Application
  Server for SourceForge.net
• World's largest Open Source collaborative
  development web site

7
IBM Linux Strategy
Integral component to IBM's open strategy
Prepare for Future
Move Linux into mainstream and emerging markets
Grow the Market
Increase Size of Opportunity and lead in market
fan out
Win in Linux "High Affinity" Segments

• Business Applications

• e-business
• Commercial
• Clusters
• Telco carrier-grade

Gain share in current segments while driving
expansion into adjacent segments

• Infrastructure
• Scientific Clusters

• Enterprise-class features
• Open, pervasive ADE
• Blade Technology
• Grid
• Webservices

• Integrated solution focus
• Focused industry execution
• Expand into SMB
• Drive standardization

• Technology assets
• Product enablement
• Enterprise-class support
• Educate and energize the field and business
  partners

8
Trends Linux Market Broadening

Customers considering Windows Alternative

• Microsoft Software Assurance Program
• Governments legislating Linux
• .Net closed - limiting choice

Technology maturing with enterprise server and
client functions

• Scale-up competitive at 8-way and evolving
• "Carrier-grade" reliability, serviceability
• GNOME 2, KDE 3, OpenOffice 1 viable
• Eclipse open source desktop framework

Market Lifecycle progressing

• Workload usage maturing
• Technical computing in full swing
• Industry vertical ISV support starting
• Sectors expanding - Industrial, Retail, Financial
• Enterprise customer usage increasing
• Heightened vendor support

9
Fine Tuning IBM Strategy to Market Trends
Open, comprehensive application development
Open, standard application framework
Main stream
Growth
High Affinity
Preferred Government Linux partner
Application client focus
10
How Customers are Deploying Linux

Linux Clusters
Workload Consolidation
Infrastructure Solutions
Application Solutions
Distributed Enterprise
11
SMB Customer Successes
Consolidation
Clusters
Distributed
12
Infrastructure Solutions
Optimized eServer and IBM Software for Linux

• Infrastructure Servers
• File/Print
• Web/Application
• Application dev.
• Content/Caching
• Security
• Advantages
• Low cost
• Highly reliable
• Turnkey
• Rapid setup
• Innovative packaging

• Infrastructure Software
• DB2 Universal Database
• Domino collaboration
• Tivoli Systems Management
• MQSeries messaging
• WebSphere Family for application development
• Advantages
• Scalable
• Open standards
• Industry proven

13
Weta Digital
New Zealand Special Effects Company

• Challenge
• Improve system performance/reliability without
  increasing costs for special effects company
  producing effects for the Lord of the Rings
  movies
• Solution and Benefits
• IntelliStation and Linux systems operating as
  standalone units linked by Gigabit ethernet
  network
• Dual Xeon IBM IntelliStation MPro workstations
  running Red Hat Linux
• IBM Linux Supportline
• Lower hardware acquisition cost and much higher
  system performance

14
KDI School
xSeries

• Company
• The KDI School of Public Policy and Management
  was established to educate and develop the next
  generation of leaders
• KDI offers an innovative educational program
  focusing on policy and international issues.
• Challenge
• KDI needed to build an Internet-based video
  conferencing system for overseas communication
  with research institutes and universities.
• Solution and Benefits
• IBM provided video conferencing system composed
  of xSeries 342 servers, Linux and various
  Internet-based software, including Codec, Rear
  Projection and PDP technology
• Two IBM x342 servers used as appliance systems
  for broadcasting and streaming
• IGS Integrated Technology Services (ITS) provided
  end-to-end service to establish this system from
  the system design to tuning and testing
• KDI School selected the Linux-based system
  solution because Linux is a robust and reliable
  platform with better price/performance.
• KDI expects that it can save more than 30 percent
  in travel expenses due to the IBM solution

15
Ergo-Brains Inc.
DB2 on TurboLinux

• Company
• Ergo-Brains manages an Internet-based community
  to which it delivers e-magazines and opt-in
  e-mails.
• Ergo-Brains was established in 1997 in order to
  pursue the possibility of marketing on the
  Internet. As an opt-in e-mail advertisement
  agency, it currently has more than 1 million
  subscribers.
• Challenge
• Frequent system problems with the burden of heavy
  workload, it needed a secure, stable and scalable
  e-business infrastructure for its rapidly growing
  e-business.
• Solution and Benefits
• Integrated customer database on DB2 for Linux.
• The new database provides the customer with a
  highly-available infrastructure
• Significantly improved performance, scalability
  and stability of its business infrastructure,
  delivering a significant business advantage.
• Other Benefits Maximized cost/performance ratio,
  Increased performance

"We have not had any trouble after the
service-in. We realized this was really a reason
for our customers in media industry to use our
mail system. We can now appeals our ad-mail
systems as very reliable. We now really
understand that a reliable system can only exist
on a reliable infrastructure" Hirotaka Fukuoka,
COO Ergo-Brains Inc.
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Infrastructure Successes

Hundreds of Successful Customers
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Consolidate Workloads Across the Organization
Simplified Infrastructure with IBM and Linux

• Workload Consolidation
• Replace many with few
• Optimize assets
• Advantages
• Reduce costs
• eServer proven reliability
• Virtualize servers
• Dynamically manage workloads
• Enabled across all eServer products

18
GuideOne
Switched platforms from Window NT server farm to
IBM zSeries

• Challenge
• One of the largest specialty insurers and the
  85th largest property and casualty insurer in the
  U.S.
• Excessive hardware and software maintenance costs
  and lack of the availability, reliability and
  security needed.
• Solution and Benefits
• IBM revitalized the insurer's IT infrastructure
  with a new S/390 G5 server running Linux, along
  with DB2 Connect and MQSeries middleware.
• US1.2 million in infrastructure cost savings
  over 30 months, as well as additional savings in
  software and server support costs.
• By replacing the 20 Windows NT servers with the
  S/390, GuideOne has reclaimed more than 500
  square feet in its data center and reduced total
  power consumption.

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Dialtone Internet
Switched platforms from Sun/Cobalt to IBM -
Server Consolidation

• Challenge
• Fort Lauderdale, Florida-based Dialtone Internet,
  offers dedicated hosting services for SMB
  customers
• 80 Employees, 1300 SMB clients, 8M revenue in
  2001, 2200 servers
• Needed to handle increasing client load and
  growth in server farm more efficiently
• Solution and Benefits
• xSeries and pSeries hardware
• Tivoli for systems management
• Established 650 NEW SMB customers in 5 months
• Improved price/performance
• Reduced HW and systems management costs

www.dialtoneinternet.com
Note Dialtone Internet was recently acquired by
Interland
"Using the IBM xSeries servers here at Dialtone
has helped us optimize overall reliability,
scalability, and server performance for our
customers in a highly cost-effective
manner" Alvaro Albarracin Area Vice-President of
Dedicated Hosting


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Banco Mercantil
Linux zSeries Consolidation of Web Infrastructure

• Challenge
• Offer corporate, commercial and personal
  financial products
• NT Servers costly and unmanageable
• Need reliability and systems management allowing
  for workload growth
• Solution and Benefits
• Phase 1 - Replaced 30 NT file, Internet domain,
  and firewall servers with zSeries running Linux
• Phase 2 - Move applications from Unix to
  zSeries/Linux/DB2
• Reduced administrative support
• Higher availability
• Improved price/performance
• Reduced HW and systems management costs

"Linux on the S/390 allows us to consolidate in a
very cost effective way" Isaac Arismendi,
Banco Mercantil
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Boscov's Department Store
Family Owned Department Store

• Challenge
• Provide scalable IT environment for
  mission-critical applications
• Manage increasing complexity and costs of large,
  growing server farm
• Improve systems availability, scalability and
  backup and recovery
• Solution and Benefits
• Consolidation of server farm applications on SuSE
  Linux running on IBM zSeries servers
• Affordable support for incremental application
  growth
• Reductions in costs, networking hardware and
  management resources, server administrators and
  floor space
• Increased availability for applications vs server
  farm environment

"We chose to deploy Linux on zSeries servers
because it provides a robust platform that meets
our expected growth in mission-critical
applications." Harry Roberts, Chief Information
Office, Boscov's Department Stores, LLC
22
Workload Consolidation Success

Hundreds of Successful Customers
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Linux Clusters
IBM Solutions for Complex Workloads

• Clusters with Linux
• Computationally intensive workloads
• High performance computing
• Horizontal scalability
• Advantages
• Supercomputing performance at
• "mass market" prices
• Choice of eServer architecture
• IA 32, IA 64, or PowerPC
• Industry leading IBM cluster software
• GPFS - General Parallel File System
• CSM - Cluster Systems Manager
• IBM factory installed and delivered

24
MDS Proteomics
Canadian Leading Proteomics-based Drug Discovery
Company

• Challenge
• Analytical capability to determine gene and
  protein function
• Access and manage data 24x7
• Design novel small molecule drugs capacity for
  expansion
• Solution
• 3 100 node xSeries 330 Clusters
• pSeries H80, M80, and 680 servers
• DB2 Universal Database, Enterprise Storage Server
• IBM Linear Tape Open library system
• Tivoli fault-tolerant, cluster-based system
  management
• Benefits
• Fast, robust, scalable and disaster-tolerant
  system
• Enhanced development capabilities
• A scalable relational data management
• Improved availability and reliability of system
  and network
• Consolidation of information into a virtual
  database to address complex medical problems

"Through our strategic alliance with IBM, we are
applying breakthrough information technology to
improve our understanding of how proteins
function in order to put drug design and
development on a faster track." Christopher
Hogue, MDS Proteomics' Chief Information Officer
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Genome Sequence Center
British Columbia Cancer Agency

• Challenge
• Find innovative means to automate the gene
  sequencing and fingerprinting process
• Dramatically increase compute power, capacity and
  speedy storage within cost constraints
• Solution and Benefits
• 40 xSeries 330's
• 3583 Ultrium Scalable Tape Library
• Linux
• Cluster Management Software
• Life Sciences Applications
• Improve ability to access and integrate massive
  amounts of genomic data for sequencing research -
  quality of research
• Improve scalability within space cost
  constraints
• Improve data accessibility with Tape Library
  without the online costs
• Develop leadership role in Research Field

26
Dupont Photomask
Linux Clusters

• Challenge
• Minimize photomask development by increasing
  computational speed
• 99.9 percent availability
• Solution
• Linux cluster of 10 xSeries servers
• RedHat V7.1
• Value
• 3X the processing power of existing NT servers
• Reduced run time from days to less than 4 hours
• Reduced photomask development/testing cycle

27
Renaissance Technologies

Medallion Fund Outperforms the Street

• Challenge
• Lead Wall Street with the best hedge fund
  performance, while improving IT price/performance
• Leverage technology to create a competitive
  advantage
• Remain in existing data center, without
  increasing floor space or system management
  personnel
• Solution and Benefits
• IBM xSeries 330 Intel servers rack mounted and
  clustered
• Increased price performance over incumbent Sun
  6800 servers
• manage multiple parallel quantitative analysis
  with faster response time

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Linux Clusters Success

Dozens of successful deployments in all industries
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Distributed Applications to Serve Many Locations
Replicate Function Across the Enterprise

• Distributed solutions with Linux
• Geographically dispersed
• Serve more customers or employees
• Advantages
• Low cost, small footprint eServer
• High reliability and stability
• Secure
• Easily replicated
• Centrally managed
• IBM worldwide support and implementation

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China Post
Distributed Linux

• Challenge
• Cut cost and increase efficiency across 1,200
  branch locations and 2,000 total locations
• Transform manual record keeping and data
  collecting to an electronic system
• Set up an e-Post branch office
• Solution
• IBM xSeries 200s running Linux
• Value
• Increased revenue
• Reduced cost
• Improved customer service and customer
  satisfaction

31
Sherwin-Williams
Innovative Point of Sale Solution

• Challenge
• Major manufacturer with over 2,600 outlets
• Needed to upgrade point of sale system plus
  provide e-mail, intranet and Internet
  capabilities
• Solution
• Custom IGS Services for Point of Sale
• NetVista for in-store processing
• Benefits
• New functionality provided for the stores for
  POS, e-mail and Web
• Web browser and StarOffice as new capabilities
• Reduced administrative support
• Higher availability
• Redundant servers and diskless POS PCs
• Improved price/performance

32
Distributed Successes
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Application Solutions
Affordable Integrated Solutions for Linux

• IBM Business Partner and ISV Solutions
• Enable e-business initiatives
• Deliver industry vertical applications
• Leverage Business Partner and ISV expertise
• Advantages
• Bundled eServer / IBM middleware / ISV
  application
• Low cost
• Optimized solutions
• Reduced implementation time

ISV/VAR Application
IBM Middleware
IBM Server Software
Tivoli
Lotus
DB2
WebSphere
Linux Distribution
xSeries
iSeries
pSeries
zSeries
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Tommy Hilfiger
e-business Infrastructure
Tommy Hilfiger selected technologies from IBM,
including IBM products such
as iSeries and xSeriesTM servers running Red Hat
Linux, for Web based transactions, DB2
Universal DatabaseTM, JavaTM and eOneGroup's
suite of software products to expand its presence

• Challenge
• Expand presence among retailers and worldwide
  manufacturing facilities and employees
• Solution
• New B2B portal that allows retailers to view
  available inventory in real time and place, track
  ship orders
• Business-to-plant website that links worldwide
  production facilities
• Virtual employee store that allows employees to
  shop online
• Benefit
• "IBM's server interoperability and application
  flexibilityenabled lower costs and increased
  revenue..... the manufacturing portal and
  employee store are expected to produce
  substantial cost savings and tommyb2b.com has
  already proved productive and efficient for
  specialty store retailers with limited travel
  budgets.
• Dan Watson, President of eOneGroup

35
Winnebago
Consolidate e-mail on Linux for zSeries

• Challenge
• Upgrade e-mail - problems with calendaring and
  attachment corruption
• Minimize impact to existing Microsoft Exchange
  users
• Cost significantly less than US100,000 to
  upgrade
• Solution and Benefits
• Bynari Insight Server for e-mail and calendar
• SuSE Linux virtual server under VM/ESA in an IBM
  Multiprise 3000 model H30
• Benefits
• Savings of US75 thousand in software
• Higher availability of a mainframe solution

"Bynari Insight Server gave us a more
cost-effective alternative to Microsoft Exchange,
... it showed us that Linux for the mainframe is
ideal for enterprise applications. ...it's not
only more reliable but it's also just cheaper and
easier to run." Dave Ennen, Technical Support
Manager at Winnebago.
36
DeoDeo
Netfinity Cluster

• Company
• Hiroshima, Japan-based consumer electronics
  retailer that operates 112 shops directly and 381
  shops through franchises in Japan
• One of the largest retailers in its market,
  DEODEO has a customer base of 13.5 million
  people. 80 Employees, 1300 SMB clients, 8M
  revenue in 2001, 2200 servers
• Challenge
• Launch a virtual shopping mall using data mining
  techniques to establish one-on-one relationships
  with customers
• Needed to handle increasing client load and
  growth in server farm more efficiently
• Solution and Benefits
• IBM (5) clustered Netfinity 3000 servers, running
  TurboLinux operating system and Java technology
  sixth server for sysadmin offsite. Core of
  project is Oracle 8 Database.
• Total Cost of Ownership less than comparable Unix
  system superior end-to-end growth and risk
  management capabilities mainframe-class
  scalability, reliability and security on one
  high-powered server system
• Turbolinux supports Japanese language
• Generated US20 million in new business via its
  CyberCity Web site
• Customer satisfaction has increased as a result
  of the stability of the Netfinity/Linux platform
  and its low TCO

"Working with IBM, we were successful in
providing a mission-critical solution against a
competing proprietary UNIX solution that would
have cost DEODEO four times as much money." T.
Paul Thomas CEO, TurboLinux



37
Is It Real?
38
Is It Real?
The Myths of Linux

• Linux doesn't scale
• Linux isn't ready for the Enterprise
• Linux porting is difficult
• Linux lacks business applications
• Linux isn't secure
• Linux skills are scarce

39
Is It Real?
The Myths of Linux

• Linux doesn't scale
• Linux isn't ready for the Enterprise
• Linux porting is difficult
• Linux lacks business applications
• Linux isn't secure
• Linux skills are scarce

40
Fact Linux Scales

• Database - world record TPC-H benchmark
• DB2 v7.2 4 Intel 900MHz PIII Xeon processors
• 74 faster than the best Windows-based result
• File Serving
• PC Mag's file servers performance tests ... Linux
  with Samba significantly outperformed Windows
  2000, 11/01
• Linux's throughput was 78 faster
• xSeries - record ECperf Linux performance
• WebSphere v4.03 9 node xSeries 330 cluster with
  2 x 1.266 GHz PIII processors
• Near linear scalability from 1 to 9 servers
• 86 of the performance 29 of cost of top
  HP-UX/BEA benchmark
• zSeries 12-way Server running WebSphere - Linux
  vs Solaris
• 12-way zSeries Linux partition 36-way (9 X 4
  CPU) Sun 420R servers at 100 utilization
• Linear scalability for multiple Linux instances
  and users

"We chose DB2 running on Linux based on its
stability, scalability and performance. There's
almost no end to DB2's advantages, which include
high efficiency, fast querying and search speed,
and the ability to store very large amounts of
data."
Dr. Napthali Rishe
Director, Florida International University High
Performance Database Research Center
41
Is It Real?
The Myths of Linux

• Linux doesn't scale
• Linux isn't ready for the Enterprise
• Linux porting is difficult
• Linux lacks business applications
• Linux isn't secure
• Linux skills are scarce

42
Fact Linux is Rock Solid

• In a Cluster Environment Peak Operation Downtime
  Per Year
• Microsoft...........30 hours
• Linux..................14 hours
• Google runs on Linux
• 100 million queries per day
• Average response times less than half a second
• IBM service/support
• Level 1-2-3 support for all eServer platforms
  running Linux

Standish Research Group 2001
43
Is It Real?
The Myths of Linux

• Linux doesn't scale
• Linux isn't ready for the Enterprise
• Linux porting is difficult
• Linux lacks business applications
• Linux isn't secure
• Linux skills are scarce

44
Fact Porting to Linux is Easy
"Several large projects of moving Unix-based
applications from 100 KLOC to 600 KLOC have been
completed. Most were completed in about two
months and only required a small percentage (1
or so) of the code to be modified in any way."

• Porting Solaris applications to Linux
• 80 of APIs are identical
• Less than 15 require simple translations or
  masks
• Less than 5 of APIs may require rework
• D.H. Brown
• Migrating UNIX web servers to Linux is one of the
  easiest migration scenarios in the industry.
• Some users and deployment specialists report one
  day or less time to migrate small installations.

SoundView Technology Group
"Linux Momentum in Europe Appears to be Strong",
June 13, 2002
Source IBM Canada "Migrating Mail and Web
Servers to Linux", D.H. Brown "Unix-to-Linux
Migration An Easy Journey", Giga
45
Is It Real?
The Myths of Linux

• Linux doesn't scale
• Linux isn't ready for the Enterprise
• Linux porting is difficult
• Linux lacks business applications
• Linux isn't secure
• Linux skills are scarce

46
Fact ISVs Adopting Linux

• 3,800 Linux applications in IBM Global Solutions
  Directory
• Includes Distribution, Retail, Industrial,
  Health, Finance, Media and Petroleum
• 90 increase since April, 2001
• Eclipse open-source, integrated foundation for
  app development
• Supported by 150 ISVs
• Business Partner firms supporting Linux grew from
  600 to 4500
• 650 increase in little over 1 year
• IBM actively recruiting ISVs for SMB
• Full PartnerWorld support
• Linux Lens
• 9 WW IBM Porting Centers for Linux
• Chicago, Waltham, San Mateo in the US
• Over 30 IBM Strategic Alliances formed with
  target ISVs since March 2002

Evans Study March 2001
www.ibm.com/software/solutions/isv
47
ISVs Adopting Linux
48
Is It Real?
The Myths of Linux

• Linux doesn't scale
• Linux isn't ready for the Enterprise
• Linux porting is difficult
• Linux lacks business applications
• Linux isn't secure
• Linux skills are scarce

49
Fact Linux is Secure

• The Open Source development process
• Darwinian -- structured/disciplined
• Exposed vs. hidden
• "World Governments Choosing Linux", AP, 12/1/01
• "Chinese, French and German govts ... adopting
  Linux over MS "
• "Security experts ... agree computers are less
  prone to hacking and viruses when running
  open-source software like Linux"
• The US National Security Agency embracing Linux
• Investing to develop Linux security enhancements
• "...Window's inherent instability and
  susceptibility to hacks are now becoming major
  issues to corporate and government buyers."
• "Microsoft's Global Insecurity Complex",
  Business2.0, June 17, 2002

"Gartner recommends that enterprises continue to
weigh open source review as a positive factor in
the security of software."
Gartner Group,
"Microsoft Sends Mixed Signals About Software
Security", May 13, 2002
50
Is It Real?
The Myths of Linux

• Linux doesn't scale
• Linux isn't ready for the Enterprise
• Linux porting is difficult
• Linux lacks business applications
• Linux isn't secure
• Linux skills are scarce

51
Fact Linux Skills are Easy to Learn, Widely
Taught, Transferable from UNIX

• IBM Linux Scholars Challenge
• 1,462 students entered
• 664 colleges represented
• IBM Learning Services
• 40 courses
• www.ibm.com/training/spotlight/linux
• Universities embracing Linux
• MIT, UC Berkley, City Univ. of NY, Univ. of
  Texas, Loyola College, Univ. of Cincinnati
• National Univ. of Korea, Beijing Univ., Osaka
  Univ.

"If your IT organization supports UNIX today, you
are well positioned to support Linux. UNIX
skilled programmers can easily and quickly
develop into Linux programmers."
Harry Roberts
SVP and CIO, Boscov's, Inc.
52
Linux _at_ IBMx
A Commitment to Linux across the Entire Business

• 1100 servers WW
• Internal Linux Projects
• www.ibm.com/linux w3.ibm.com/linux
• redundant xSeries Linux servers
• Intranet search engine
• xSeries servers Inktomi search engine
• IGS Internet Vulnerability Security Scanning
• 61 xSeries scanning 30k IP addresses/ week
• Performance monitoring
• 24 xSeries servers
• 75 fewer Linux servers than NT servers for same
  workload
• IBM Global e-Mail Anti-virus Management
• xSeries scans incoming/outgoing mail for viruses
• 300mm Wafer Manufacturing Equip. Control
• Much more reliable than Win2000
• 159 xSeries 300-400 by year end

53
Linux _at_ IBM
A Commitment to Linux across the Entire Business

• Linux Technology Center
• "Help make Linux better"
• 250 developers, 21 sites working within the open
  source community
• Linux Integration Center
• Technical consulting, proof of concepts,
  benchmarks
• Open Source Development Lab
• Enabling Linux and Linux-based applications for
  data center and carrier-class deployment
• Linux Porting Centers
• Linux CoC for Finance - NYC
• Assist financial services customers testing and
  implementing Linux applications
• Linux for Service Providers Lab
• Assist telecomm service providers, network
  equipment providers and ISV's test and implement
  Linux solutions
• 2,000 Linux-skilled IGS professionals

54
IBM's Contribution to Linux

• 250 developers worldwide
• 70 active projects
• Significant contributions to 2.4 and upcoming 2.5
  kernel

• Cluster Management
• System Management
• Network security
• Networking
• POSIX Threading
• Reliability

• Scalability
• Scheduler
• Security
• Serviceability
• Internationalization
• Journaled Filesystem

• Trusted, valued members of the Linux Community

• Open Source Development Lab
• Linux ATM Project
• Linux Token Ring Project
• USAGI (IPV6) Project
• GNOME Foundation
• KDE League

• Linux Standards Base
• Free Standards Group
• Linux Internationalization
• Linux Test Project

55
IBM Family Supports Linux

• zSeries
• zSeries 800 for Linux
• Many Linux servers on a single HW platform
  (thousands)
• Unmatched scalability
• Large applications portfolio
• Simplified Systems
• Management
• Runs in an LPAR
• or on z/VM
• zSeries - 64 bit 31-bit
• Reduced cost of ownership

• xSeries
• xSeries 343 for Telco
• X-architecture innovation
• OS freedom of choice
• Affordable, Scalable, Reliable
• Appliances
• xSeries 335, 305 Xeon rack-optimized servers
• Clusters (1300,1350)
• Integration and testing of IBM OEM
• Speed to market
• xSeries rack optimized servers

• iSeries
• iSeries Linux edition - 820
• Reliable / Scalable
• Up to 31 Linux Partitions
• Integration with OS/400
• Resource sharing and management
• I/O Flexibility

• pSeries
• Native Linux 32-bit 64-bit
• Linux Virtual Servers on server p690 and
  server p670
• Linux affinity on AIX 5L
• I/O Bandwidth and RAS
• Multiplatform flexibility

56
IBM Blade Center
The Technology That Outperforms

• Performance Density
• 2X density of existing 1U rack solutions
• Latest, highest performance Intel processors
• Comprehensive set of storage alternatives
• Affordable Availability
• Unprecedented redundancy
• No single point of failure 24x7 availability
• Network Integration
• Integrated Ethernet Switch increased density
• Simple management of switches with Common
  Director interfaces
• Modular Scalability
• Ideal platform for "Scale Out" enterprise
  applications
• Power/packaging/cooling designed with room to
  grow
• Infiniband ready investment protection

57
IBM Middleware is Ready Today!

• Solutions available across all product lines

Transaction Integration

• Scalable
• Modular
• Flexible
• Standards based
• Reliable

Leverage Information
Leverage Collaboration
Systems Management

• Open is the world's new direction
• Eclipse An open tool platform contributed by IBM
  to an independent open source organization

• Solutions at lowest TCO
• DB2 for Linux currently up to 50 off

58
IBM Services for Linux

Managed Operations

• Grid
• Grid Computing Workshop
• Consulting
• Design/Architecture
• Deployment

• Training
• 5 languages 20 countries
• All eServers
• Web-based and classroom
• Cluster workshops - New!

• Clusters
• Support Line
• x1350 Installations
• OEM Procurement
• Hardware Setup
• Software Installation

• Web Hosting
• xSeries
• zSeries Linux
• e-Sourcing

• Middleware Enablement
• DB2
• WAS
• MQSeries
• ISV's
• QuickStarts

• Technical Support
• Support Line
• Account advocate
• Advanced Support
• All eServers including clusters
• 24/7

• Workload Consolidation
• File/Print, Webserving
• Bynari, Sendmail coming '02
• Linux Solution for e-business
• Application Porting
• Solaris to Linux Migration

59
The IBM Managed HostingApplication Enablement
Program
Start the journey now . . . and reap these
benefits

• Offers a step-by-step, structured approach,
  helping reduce risk and shorten time to market
• Extends your market reach, thanks to lower
  customer deployment costs
• Gives you access to new business models
• Offers flexible compensation methods to help meet
  your needs
• Includes go-to-market planning and support
• Allows you to leverage the IBM brand in your
  service delivery and marketing activities

Evolution and growth
Deployment
Enablement and testing
Education
Helping you stay ahead of the competition
Assessment
60
Partner Linux Programs Sustained Leadership

• Enablement
• Sales Technical Training
• Trained over 1,500 partners
• 50 increase since January 2002
• Partners driving 25 of IBM Linux Sales
• Partners participating with IBM at Linux
  industry events
• New server Integrated Platform for e-business
  designed for partners

IBM Leadership Edge for Linux
Solutions Edge for Linux
Ready, Set, Linux and Go!
Leaders for Linux

• Enablement
• i/zSeries Test Drives
• xSP Prime
• Porting centers
• ServerProven
• developerWorks
• Marketing
• Start Now Solutions
• Proven
• IBM Solutions Connection
• Global Solutions Dir.

• Enablement
• Support education
• Certifications / incentives
• Start Now
• Solutions
• Linux Lens
• Marketing
• Linux events
• roadshows
• Campaign Designer
• BP Connections

• Marketing
• Sales force linkage
• Sales accelerators
• Co-marketing
• incentives
• Event participation
• Industry specific
• Brand-specific
• IBM sponsored

IBM PartnerWorld Program
61
Leaders for Linux
Our key go to market Linux Business Partners
PlatinumBlue
62
e-business with Linux Just Got Easier...
IBM Integrated Platform for e-business
Integrated Platform

• Fully integrated Linux-based platform for Java
  applications and Web Services
• IBM pre-architected, tested and optimized for
  popular e-business workloads (based on IBM
  patterns for e-business)
• Dramatically reduced time to solution
• IBM engineered security and reliability
• An IBM StartNow solution
• Initial support from ISVs includes eOneGroup,
  Selectica, Marcole
• Linux Distribution - SuSE

Customers Business Partners Suppliers Employees
Directory and Security Servers
Transaction Servers
N e t w o r k
Web Presentation Servers
Web Application Servers
Data Servers
Storage

• Solution Components
• WebSphere Application Server
• DB2 (optional)
• Security Directory software
• Firewalls
• xSeries servers (other series in future)
• Available through select IBM partners

Customer Reference
www.ibm.com/servers/eserver/linux/integrated/
63
Exploiting Linux for Competitive Advantage
IBM is Ready to Help You

• ...get educated
• ...assess what's happening in your company
• ...develop your strategy
• ...pick and implement a pilot
• Information
• www.ibm.com/linux
• Contact
• IBMlinux_at_us.ibm.com

64
Summary

• Linux market is maturing
• customer-proven implementations
• dramatic increase in applications
• infrastructure to business aps
• Linux value proposition is strong
• significant savings
• enhanced reliability
• greater flexibility
• IBM has the most comprehensive portfolio of SMB
  offerings and best support for Linux
• IBM is an excellent partner for ISVs

65
Linux for SMB
Moving fast, having fun
Real World Solutions for your Business
66
Linux for SMB

• Solving Real Business Problems

Carol J. Holliman
Linux Business Area Leader, Global
SMB chollim_at_us.ibm.com
67
Linux and iSeries

• What does Linux Bring to iSeries
• Applications
• ebusiness infrastructure
• New generation of web-based applications
• Provides flexibility and choice of environment
• Ease delivery of open source components
• Resources and Skills
• Leverage virtual world-wide development team
• Broad skill base to deliver iSeries solutions
• Leverage other IBM investments in Linux
• What does iSeries Bring to Linux
• Ability to consolidate multiple Linux servers
• A reliable, scalable server to run Linux
• Support for Multiple Linux Partitions
• Resource sharing and management
• Integration with OS/400

68
Linux on iSeries Advantages

• Server Consolidation
• OS/400, Linux, and Windows 2000 Server
• Support for up to 31 Linux partitions
• Resource Sharing
• Partitioning
• Shared Processors, Dynamic Movement
• Virtual I/O Disk, LAN, Tape, CD-ROM
• Minimal Hardware Requirements for a Linux
  Environment
• Part of a processor, memory
• Virtual I/O Disk, LAN, Tape, CD-ROM
• Reliable Server
• Leading single server availability
• Unique virtual disk support provides excellent
  test/development environment
• Storage Area Network facilities
• Full OS/400 system backup provides disaster
  recovery for Linux virtual disks
• Linux backup saves daily Linux files changes
  direct to iSeries tape device
• OS/400 Integration

69
iSeries Linux Edition (820) - Offering
The open-source server

• Packaged set of hardware and software products
  for workload consolidation.
• Designed to be used with a Linux Operating system
  purchased from one of the three participating
  vendors, Red Hat, SuSE or Turbolinux.
• iSeries Model 820 with one, two, or four
  processors
• Up to 32GB memory - 8TB disk
• Supports up to 15 Linux partitions.
• Wizard for simple Linux installation and LPAR
  setup

• Buy a new Linux Edition 820
• Eligible configuration - end user receives rebate
• 11,600 - 40,000
• SuSe, TurboLinux or RedHat
• Invoice purchase date on or after 3/26/02
• Can be combined with other offerings
• Announcement letter 502-054

IBM eServer iSeries Wins "Best of
Show" LinuxWorld San Francisco, CA August 28-30
70
zSeries Offering for Linux

• Build server for server consolidation
• Support flexible business growth
• One to four enabled Linux processors
• Protect IT investment
• Open standards provide adaptability, flexibility,
  versatility
• Offer virtualization capability to run 20 to many
  hundreds of Linux images
• Deliver high performance, scalability,
  availability, security and connectivity
• Incorporate advanced zSeries architecture
• HiperSockets - speed up the communication of the
  virtual Linux images
• Hardware Assisted Cryptography - enhances the
  security
• z/VM Virtualization Technology - enables server
  consolidation
• Reduce Total Cost of Ownership
• Reduce complexity through consolidation of UNIX,
  Windows and Linux applications to Linux on
  zSeries
• Provide attractive package price, terms, and
  conditions

zOL020
71
Packaged Offering zSeries Technology

• zSeries Hardware
• z800 Model 0LF
• 1 to 4 Integrated Facility for Linux engines
• Memory pre-configured to match enabled processor
  configuration
• Includes FICON and OSA Connectivity
• zSeries Virtualization Technology
• z/VM Version 4
• zSeries Maintenance
• 3 years hardware warranty and maintenance
• 3 years z/VM Subscription and Support License
• TOTAL Solution Financing - optional
• Financing options available from IBM Global
  Finance
• IBM Global Services - optional, such as
• IBM Support Line Software Services for Linux
• IGS Linux Rapid Deployment Solution

z/VM
Maintenance Support
IGS
IGF
IBM
zSeries Offering for Linux
zOL030
72
Linux Strategy Workshop
Business and IT gain integrated strategy for
implementing Linux and Open Source

• Description
• A unique workshop to help you evaluate Linux and
  Open Source options in your business
• You will walk away with a customized, high-level
  Linux strategy created just for you that links
  business and IT goals
• Most industries and companies of any size

• Benefits
• Map existing business initiatives to Linux
  technology solutions
• Prioritize business value and technical
  feasibility of implementing Linux
• Create a Linux high-level strategy and action plan