SUSE® Linux Enterprise Server for System zBusiness Presentation

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SUSE® and Attachmate Group

• SUSE, headquartered in Nürnberg / Germany, is an independently operating business unit of The Attachmate Group, Inc.

• The Attachmate Group is a privately held1 billion+ $ revenue software companywith four brands:

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SUSE® Today

4

SUSE® Leadership

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Why Companies Use IBM System z

• Designed to run mixed operating systems and applications at very high utilization

• Highest degrees of efficiency, availability, workload management and security

• Cost efficient use of floor space, power, cooling

• Designed and implemented for zero downtime

• Mature and tested operational procedures to cope with exceptions

• Comprehensive automation

• No single points of failure

Total Cost of Ownership Virtualization Perfomance Reliability

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What is it?

An alternative to x86 platforms for consolidating or virtualizing workloads

A cost-effective alternative to run certain z/OS workloads

Typical utilization rates are in the 70-80 percent range

System used most for new workloads (Web applications, databases)

Optimized to take advantage of specific System z hardware capabilities

Server consolidation: virtualization via z/VM (many VMs in one logical partition)

Most efficient resource sharing among VMs (CPUs, memory & network resources)

Dynamic reallocation of resources

Co-location of applications & data in same “box”

Room for growth (adding IFLs and VMs)

IFL – single processor, “decreases” SW licencing cost: As you add workloads, the cost per virtual server drops

How does it work?

Proof Points

35% of System z customers (2011), 66% of top100 customers run Linux on IFLs (2011)

More than 1,300 clients run Linux on the mainframe

20% of all MIPS are Linux, 24% increase in IFL installed MIPS

After the zEnterprise System’s 2010 release, the compound growth rate of Linux on System z MIPS reached 42 percent

Linux on the Mainframe

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What is SUSE Linux Enterprise Server for System z?

• Our Linux operating system optimized for IBM mainframes‒ Is an alternative to x86 platforms for consolidating servers

and virtualizing Linux, UNIX and Windows workloads

‒ Lets customers leverage the resiliency of System z servers, the power of SUSE Linux Enterprise Server for System z and the hypervisor capabilities of z/VM

• Creates a virtual environment that lowers total cost of ownership by‒ simplifying data center management

‒ increasing flexibility

‒ reducing downtime

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When to UseSUSE Linux Enterprise Server for System z?

Challenge Solution

Scalability

Security

• Host I/O and data-intensive workloads in virtual servers without bottleneck in performance• Provides high I/O bandwidth, higher utilization and better computing scalability

Proven Virtualization

• Host hundreds of virtual servers running a mix of workload types• Manage IT growth with rapid provisioning with z/VM

• Rock-solid system security depended on by Financial Institutions and Governments world wide • Proven and executable disaster recovery and planning

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Why ChooseSUSE Linux Enterprise Server for System z?

Benefit Proof Points

Lower total cost of ownership

• Energy efficient industry standard HW with Linux lets you implement lower cost infrastructure solution• One SLES for System z subscription - unlimited VMs per IFL• Mainframe is TCO killer for many workloads• Cost of IFL is a fraction of the cost of general processors• Provisioning standalone servers may take weeks• Consolidate onto x86 servers using VMware? You loose many advantages of the mainframe!

Lower complexity

• Standardize on fewer OS across many HW platforms• Manage more virtual guests on few physical boxes and reduce floor space, power, network, cable, cooling costs

Lower risk

• Wide range of certified ISVs & support for Java applications Ensure durability of SLES as enterprise foundation• Reduce implementation concerns (Optimized solution stacks, joint support• Recommendation from partners like IBM and SAP• Rely on 12+ years of business and technology experience

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Lower TCO

The Economics of Linux on System z • Consolidate an average of 30 distributed servers or more on a single core, or

hundreds in a single footprint. • Deliver a virtual Linux server for approximately $500 per year or as little as

a $1.45 per day per virtual server (TCA)1

1 Based on US Enterprise Linux Server pricing. Pricing may vary by country. Model configuration included 10 IFL cores running a mixed workload averaging 31 virtual machines per core with varying degrees of activity. Includes zEnterprise hardware and z/VM virtualization software. Does not include Linux OS or middleware software.

2 Distributed server comparison is based on IBM cost modeling of Linux on zEnterprise vs. alternative distributed servers. Given there are multiple factors in this analysis such as utilization rates, application type, local pricing, etc., savings may vary by user.

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Lower Complexity

Workload Consolidation Candidates

Examples of GOOD fit applications:

DB2

Informix

WebSphere Application Server

Apache Web Server

Samba

FTP, NFS, file and print, etc.

Examples of BEST fit applications:

WebSphere MQSeries

Oracle

SAP

IBI Web Focus

DB2 Connect CICS Transaction Gateway

IMS Connect for Java

WebLogic

Lotus Domino

Best Fit Applications

• Best fit applications are those that leverage the classic strengths of System z servers:

• High availability

• High I/O bandwidth capabilities

• Data exchange using shared memory or fast interconnects such as HiperSockets

Good Fit Applications

• Good fit applications are applications, which are optimized for SUSE Linux Enterprise Server for System z, but also run well on other architectures, such as x86 and POWER*.

• TCO

• Application availability on Linux

• Strategy within the organization

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Package Selection and Integration

Open Source Projects

Enterprise-Class Software

SUSE® LinuxEnterprise

QualityTesting

Automated Regression

Manual Regression

System Test

Feature Test

Build Service

AMD64/Intel64

x86

Itanium

POWER

System z

Lower Complexity

The Build Service Advantage

Reduces production problems

Consolidates IT skills across disparate systems

Delivers critical updates in hours – not days or weeks

●External Quality Testing

IBM TestingLoad/Smoke testsRegression testsAcceptance tests

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Lower Risk

Mainframe Success

• Back in 1999: SUSE started cooperation with IBM and Marist College to port Linux code to IBM mainframes

• Available since 2000: SUSE Linux Enterprise Server for System z has been made available to customers in 2000

• Entering a new market: the only available enterprise-class Linux – commercially maintained and supported

• Linux application leader: broadest software support of any Linux distribution, get new workloads to the mainframe (.NET based applications)

• 80%+ market share in 2011: SUSE Linux Enterprise Server for System z

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Lower risk

12+ Years on the Mainframe

http://www.suse.com/partners/alliance-partners/ibm/mainframe/img/timeline_lores.pdf

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SUSE Linux Enterprise Server - best choice for running SAP on zLinux

• IBM and SAP and SUSE: same timezone, same language, within a circle of 200km

• SUSE and IBM: on-site engineers at SAP Linux Lab/SAP Partner Port

• IBM and SAP and SUSE: A twelve+ years relationship, built on trust

• SLES optimized for SAP

• SAP and SUSE deliver seamless support through SUSE Priority support for SAP

• SAP selected SUSE Linux Enterprise as the only Linux to run their Business Intelligence Accelerator

• In 2008 SUSE received SAP Pinnacle Award

• SUSE Linux Enterprise is first-tier development platform for SAP

Lower Risk

IBM-SAP-SUSE – A Rock Solid Solution

SAP recommends * SUSE Linux Enterprise

Server as preferred platform for customers

who want to deploy SAP applications on Linux.

* http://en.sap.info/sap-and-SUSE-deliver-expanded-linux-support-options-for-customers/1216

SUSE® LinuxEnterprise

Server

SAP BusinessByDesign

SAP BusinessAll-in-One

SAP Business

Suite

SAP Hosting

SAP Netweaver

SAP SDNWebsite

SAP SDNBI Accelerator

SAPAdaptive

Computing

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Lower RiskCertified ISV Applications for SUSE Linux Enterprise Server for System z (10, 11)

0

200

400

600

800

1000

1200

1400

1600

1800

2000

788

1106

Certified ISV Applications

for SUSE Linux Enterprise Server for System z

# Applications

SUSE Linux Enterprise Server for System z 10

SUSE Linux Enterprise Server for System z 11

Certified Applications total:

1894

SUSE System z ISVs total:

516

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Why Customers Prefer SUSE® Linux Enterprise

SUSE Linux Enterprise Platform - key advantages and benefits:

• Fully supported by IBM, recommended by SAP• #1 in SAP-on-Linux market (75% share) • #1 in High Performance Computing (More than one

third of top25)• Built for and proven in mission critical computing

environments: German Air Traffic Control Radar Processing Systems – that's mission critical!

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Why Customers Prefer SUSE® Linux Enterprise Server for System z

Additional advantages• All benefits of the mainframe (RAS) apply• Five years ahead of competition (1st version in 2000)• #1 in mainframe Linux market• Ideal for workload consolidation, major cost savings

–leverage economics of IFL• New features specific to System z• Hosting of Subscription Management Tool on System z• Starter System available for testing and proofs of

concept only for SUSE Linux Enterprise Server• Building Images for System z with SUSE Studio• Approx. 1,900 certified applications available

Differentiators and Features

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Differentiators—Unique tools included with SUSE Linux Enterprise Server for System z

• YaST and Integrated Systems ManagementConfigure every aspect of the server

• Subscription Management Tool HostingSubscription and patch management made easy

• Starter System for System zStarter System for System z is a pre-built installation server

• AppArmor Security Framework Included in SLES for System z

• High Availability Extension for SLESProvided with SLES for System z

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Differentiators—Unique solutions available for

SUSE Linux Enterprise Server for System z

SUSE ManagerComplete lifecyle management for Linux Servers

http://www.suse.com/products/suse-manager/

Building Images for System z: SUSE StudioEasily build reproducible images

http://www.suse.com/products/susestudio/

SAP and SUSE: Joint Solutions70% of SAP customers on Linux prefer SUSE

http://www.suse.com/partners/alliance-partners/sap/

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SUSE® Linux Enterprise Server for System z 11

GA and Service Pack 1

• Full Dynamic Resource Handling‒ Two levels of virtualization available: LPAR and z/VM

‒ Choose the level of isolation mandated by compliance

‒ Flexible resource allocation and reallocation without downtime

‒ CPU, memory, I/O hotplug‒ Provide the resource where they are needed in LPAR and z/VM guest

• Abundant memory, IO bandwidth and transaction capability‒ Hipersocket support connects Linux and z/OS applications and data

‒ I/O fan out and transaction workload capacity is unmatched

• RAS‒ IO and other performance statistics

‒ Dump generation and inspection facilities

‒ Centralized and uniform resources support DR recovery setups

‒ SUSE Linux Enterprise High Availability Extension included

‒ System z specific kernel messages with documentation

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IBM zEnterprise System

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• IBM zEnterprise Hardware and IBM zEnterprise System exploitation

‒ Choose the right environment for the right workload

• Enhanced tools and infrastructure support

• Improved Performance

SUSE® Linux Enterprise Server for System z 11

What's New with Service Pack 2

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Area

Common Code Base

Package Management ZYpp YUM ZYpp is faster and easier to use

Security Approach SELinux

System z Features

High Availability

SAP Preferred platform Certified

MS Interoperability Yes – Agreement No equivalent Microsoft recommends SLES

No equivalent

Management solution Red Hat Network Satellite

Market Share ~ 80% ~ 20% Market Data Analysis

SUSE Linux Enterprise Server for System z

Red Hat Enterprise Linuxfor Mainframe Computing

SUSE Linux Enterprise Serverfor System z Differentiator

Builds all core packages via Internal Build Service

No common, but custom code base for each supported platform

Same code base across all architectures has many advantages

IntegrateManagement Simplicity

YaST/AutoYaST/WebYaSTStarter System for System z

Anaconda / Kickstart are not providing The same level of functionalitiesNo equivalent to Starter System

Unique to SLES, simpler startup and ongoing configuration, PoCis much easier to do

Integration with RACF, ACF2, TopSecret, AD, AppArmor Application Security FrameworkSELinux also iavailable

Simpler, more pragmatic approachPolicies easy to implement

Many features included in SUSE Linux Enterprise Server for System z Specifically developed for the mainframe. Many of these specificfeatures are unique to SUSE Linux Enterprise Server for System z.

SUSE generally gets mainframe hardware and software features into a release of SUSE Linux Enterprise Server for System z a few months before other LinuxnDistributions.

SUSE closely cooperates with IBM since 1999, first to port Linux code to the mainframe, first to add specific features for Linux on System z

All components included atno additional cost

RHEL High Availability Add-On not available on System z

Yes – With OCFS2 provided with HA Extension (included with SLES for System z), SUSE ships the only cluster file system on the planet for System zSAP recommends SLES, Special support SKU

Image / workload Creation and deployment

SUSE Studio – building images for System z

SUSE Studio is unique to SUSE, Building images for System z availablesince SUSE Studio 1.2

Subcription Management Tool (SMT)SUSE Manager

SMT is free of chargeSUSE Manager manages Linux Server in general (SLES and RHEL)

SUSE® Linux Enterprise Server for System z

Competitive Overview In a Nutshell

Pricing, Market Share, Promotions and Offers

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Multi IFL Pricing USDPrice Listed Per IFL

1 IFL

1 year $11,999 $10,199 $9,599 $8,999 $7,799 $6,599

3 year $32,400 $27,600 $26,000 $24,300 $21,100 $17,900

5 year $48,000 $40,800 $38,400 $36,000 $31,200 $26,400

Priority Subscription Pricing*

1 IFL

1 year $18,000 $15,300 $14,400 $13,500 $11,700 $9,900

3 year $48,600 $41,400 $38,900 $36,500 $31,600 $26,800

5 year $72,000 $62,000 $58,000 $54,000 $46,800 $39,600

2-5 IFLs 6-11 IFLs 12-25 IFLs 26-53 IFLs 54+ IFLs

2-5 IFLs 6-11 IFLs 12-25 IFLs 26-53 IFLs 54+ IFLs

Basic is tailored to be combined with IBM GTS services. Get more details on Basic or Priority service levels here !

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2005 2006 2007 2008 2009 20100

200

400

600

800

1000

1200

1400

1600

1800

2000

est. dormant IFLs YoYest. IFL upgrades YoY

SUSE, new IFL subscriptions YoYProjected IBM IFLs active YoY

Projected IBM, IFLs shipped YoY

780780

890890

10261026 10321032

14741474

11351135

est. dormant IFLs YoYest. IFL upgrades YoYSUSE, new IFL subscriptions YoYProjected IBM IFLs active YoYProjected IBM, IFLs shipped YoY

SUSE System z IFL Subscriptions YoY

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2006 to 2010

0

1000

2000

3000

4000

5000

6000

7000

SUSE, new IFL subscriptions total

Projected IBM IFLs activ e total

SUSE, new IFL subscrip-tions totalProjected IBM IFLs ac-tive total

82,3%

• Based on projected IBM IFLs active• excluding IFL replacements• excluding dormant IFLs• 5 year projected IBM IFLs active

define IFL installed base in the market. 2006-2010

SUSE, new IFL subscriptions to-talCompetition, new IFL sub-scriptions to-tal

SUSE System z—Market Share projection

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SUSE Campaign and OffersOverview

• Data Center Efficiency as Integrated Umbrella Campaign - “Revival”‒ http://www.suse.com/promo/data-center-efficiency/

‒ Includes: UNIX to Linux migration with SLES, SUSE Studio, Expanded Support, SLES for System z

‒ “Consolidate” addresses new and existing Mainframe customers

‒ http://www.suse.com/promo/data-center-efficiency/consolidate.html

SUSE Linux Enterprise Server for zBX Entitlement offer (this is not a promotion but a continuous offer)

Also available:

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If you own this...

Offer

SUSE® Linux Enterprise Server Entitlement for IBM zEnterprise and zBXIf you own or buy a SUSE Linux Enterprise Server for System z subscription you get full subscription entitlements for your x86_64 zBX blades.

...You get these

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PromotionSUSE® Linux Enterprise Server Priority Add-on Support for zBX • Special promotion to add Priority Support (24x7) from SUSE• Tailored to extend service levels of zBX entitlement• Requires SUSE Linux Enterprise Server Basic subscription • Limited to IBM zEnterprise BladeCenter Extension (zBX) HW • zBX must be attached to IBM zEnterprise running SLES for System z• Promotion available for 1 – 3 – 5 years for single blades or full BladeCenter• Planned promotion expiration date : December 31, 2012

Customer References

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SUSE® Linux Enterprise Server for System z

Customer Sample

35

SUSE® Linux Enterprise Server for System z

Customer Sample

KM UTT

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SUSE® Linux Enterprise Server for System z

Resources

Starter System for System zSimplify Deployment of Linux on the mainframe with SUSE Linux Enterprise Server for System zhttp://www.suse.com/products/systemz/features/starter-system.html

Website: Linux for System z:Consolidate and virtualize servers, while leveraging efficiencies of Linux, for greater availability and lower TCOhttp://www.suse.com/products/systemz

Download SUSE Linux Enterprise Server for System zSimplify Deployment of Linux on the mainframe with SUSE Linux Enterprise Server for System zhttp://www.suse.com/products/server/eval.html

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Resources

• SUSE® Linux Enterprise Server and IBM zEnterprisehttp://www.novell.com/docrep/2010/11/suse_linux_enterprise_server_and_ibm_zenterprise_system.pdf

• zBX entitlement for SUSE Linux Enterprise Server offeringhttp://www.suse.com/promo/zbx.html

• SUSE Linux Enterprise Server for System z http://www.suse.com/partners/alliance-partners/ibm/mainframe/

• zEnterprise Success Story:

‒ Sparda-Datenverarbeitung eGhttp://www.novell.com/success/sparda.html

‒ EUROCONTROL

http://www.suse.com/success/stories/eurocontrol.html

• SUSE Manager http://www.suse.com/products/suse-manager/

• SUSE Studio™

http://www.susestudio.com

Thank you.

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Visit the SUSE Linux Enterprise Server for System z product pagewww.suse.com/products/systemz

Corporate HeadquartersMaxfeldstrasse 590409 NurembergGermany

+49 911 740 53 0 (Worldwide)www.suse.com

Join us on:www.opensuse.org

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Unpublished Work of SUSE. All Rights Reserved.This work is an unpublished work and contains confidential, proprietary and trade secret information of SUSE. Access to this work is restricted to SUSE employees who have a need to know to perform tasks within the scope of their assignments. No part of this work may be practiced, performed, copied, distributed, revised, modified, translated, abridged, condensed, expanded, collected, or adapted without the prior written consent of SUSE. Any use or exploitation of this work without authorization could subject the perpetrator to criminal and civil liability.

General DisclaimerThis document is not to be construed as a promise by any participating company to develop, deliver, or market a product. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. SUSE makes no representations or warranties with respect to the contents of this document, and specifically disclaims any express or implied warranties of merchantability or fitness for any particular purpose. The development, release, and timing of features or functionality described for SUSE products remains at the sole discretion of SUSE. Further, SUSE reserves the right to revise this document and to make changes to its content, at any time, without obligation to notify any person or entity of such revisions or changes. All SUSE marks referenced in this presentation are trademarks or registered trademarks of Novell, Inc. in the United States and other countries. All third-party trademarks are the property of their respective owners.

AppendixLinux on IBM System z – Workloads and TCO

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Lower CostComparison x86 vs System z

19” Server Racks with 1U x86• 450-900 servers• 450-900 applications• 120+ software licenses• 240+ Gb Ethernet connections• 100(?) SAN connections• 70kW• 240kBTU/hr

z10 EC • 375-1180 servers• 1750-5400 applications• 64 software licenses• 10 Gb Ethernet connections• 12 SAN connections• 18kW• 60kBTU/hr

Scenario Today SLES Virtual Server IFLs Capacity Memory Capacity

Development & Test 391 21 33% 480 GB 28%

Production 196 33 50% 352 GB 21%

Source: Share Boston 2010, Presentation 7272, http://proceedings.share.org/proceedings/

Consolidation benefits go beyond hardware costs Results vary based on workload and implementation

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Lower CostPay Less Than $1.00/day for Your Virtual Linux Server

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3-Year IT

Exp

ense (M

$)

Competitive UNIX

Linux on Intel

Linux on System z

Hardware

Hardware Maintenance

Software

Software Maintenance

People

Other

Source: Capricorn whitepaper

Web Trading Application CostsWebLogic/Oracle Three Year TCO

Workload consolidation using Linux on a mainframecan result in significant TCO savings

4.9x

2.3x

Source: Scorpion Study 1999 - 2005

TCO may vary:• Potential for dramatic reductions in

software expense for processor based licenses

• Significant reductions in power and cooling costs are typical

• Cost curve is not linear: when will infrastructure break?

• People savings from virtualization• Increased processor utilization

Workload Consolidation and TCO

Impact on Consolidation to Mainframes

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Cost Savings with Linux on System z

46

Latest IBM Customer Survey:

Workloads Run on Linux System z

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Latest IBM Customer Survey:

Migrations Reasons

13%

6%

6%

10%

10%

16%

16%

19%

29%

35%

52%

Other

Software requirements

Better software compatibility

Security of the mainframe

Recommendation from ISV or SI

Mainframe is company standard

Improved performance

Co-residency with data already on themainframe

Consolidation Efficiencies

Reduction of cost

Better reliability/resilience