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Managing TCO with SOA:
Platform Makes the Difference!
Sreenath Chary
IBM Systems Group-System z
Business Unit Executive
Total Cost of Ownership: a significant challenge
Spending
(US$B)
$300
$250
Installed Base
(M Units)
Power and cooling costs
Server mgmt and admin costs
New server spending
50
45
40
35
$200
30
$150
25
20
$100
Opportunity
to lower
operational
costs and
improve TCO
15
10
$50
5
$0
0
Source: IDC, Virtualization 2.0: The Next Phase in Customer Adoption, Doc #204904, Dec 2006
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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
90% of the World's 100 largest corporations run their businesses
on WebSphere Application Server
18 of top 20
Fortune 500
customers use
WMQ
CICS is IBM's premier
Transaction processor
in 90% of the Fortune
500 customers
Government customer processing in excess of 675M messages
a day on a single WMQ network
IDC estimates that $1 Trillion is tied up in applications, processing 30
Billion transactions a day, for a value of $1 Trillion a day.
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Deploying on System z provides differentiated value
Enabling intelligent IT that works for your business
The New IBM System z10 Enterprise Class
 Faster: Processors, memory, network
 Consolidation of hundreds of applications
The power of
many . . .
 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
. . . the simplicity
of ONE
 Respond automatically to demand from
CICS, IMS, DB2, WebSphere, …
 Deploy WebSphere workloads in minutes
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.
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Incremental Benefit Paths for System z Workloads
 Reliability & Control
 Accuracy/ Control / Reliability
Create Dynamic Adaptability
 Information
integration
 Data and app
governance
 Security hub
 Composite apps
 Business mash-up
 SOA hub
Foundational
Extend
End-to-End
 Access to Function & Information on System z
 Exposing traditional
apps & data for quick
and easy access:
Service enablement
Transform
Adapt
Dynamically
 Performance / Manageability
 Creating new
Web apps
 Consolidate
apps and data
 Web 2.0
 Data warehousing
 Performance, cost management, responsiveness
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SOA Entry Points are a great way to build for change
For rapid business return
Foundational
Extend
End to end
Focused, proven, high-ROI projects
focused on a single application or
business unit
Transform
Adapt
Dynamically
Scenarios to get started
with SOA Entry Points
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Reuse Entry Point …
… Service enabling existing applications
DB2 z/OS
IMS DB
CICS Transaction Server V3.2 for z/OS
IMS 10 for z/OS
Process
Services
Information
Services
Enterprise Service Bus
Partner
Services
Business
App Services
Access
Services
Management
Services
Interaction
Services
Apps &
Info Assets
 Extend existing applications to support integrated
business processes via standard APIs and protocols
 Management of large runtime configurations via
modern user interfaces
Development
Services
Create flexible components from existing applications
to use in new applications
Business
Services
Infrastructure
Services
CICS Transaction Server
IMS Transaction Manager
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 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
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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)
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Lowering start-up costs
Addressing Price/Performance For New WebSphere Projects on z/OS
zSW License
Old
Starting
Point
Capacity Based
Pricing
Alternative
Starting
Point
Utilization + Capacity
Based Pricing
Receive Sub-LPAR pricing
for new entry workload.
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.
Application Workload Size
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When to Deploy New Services on System z
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
Hardware, operating system, and middleware working together to bring true
99.999% application availability to your business critical services.
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University of Florida
Industry: Education
URL: http://www.ufl.edu/
“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
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 Webbased UF Student Records System
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Connectivity Entry Point:
Federated ESB – integrated framework to meet your needs
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 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
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
By 2009, Analysts state multiple ESBs will be required to grow your SOA!
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SOA Connectivity: Enhancing Our Portfolio
Accelerate SOA integration
WebSphere
Adapters 6.1
CICS
Transaction Gateway 7.1
Accelerate time to value, and
simplify the integration of
applications in a SOA
Secure, scalable and flexible SOA
access to CICS applications
 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
 Leverages CICS TS V3.2 - the
flagship SOA release of CICS TS
 Support your enterprise wide
management with enhanced
systems monitoring
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
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IBM WebSphere MQ V7
WebSphere MQ V7
 Universal Messaging Backbone for SOA and Web 2.0
 Enabling reliable connectivity from z/OS to virtually
any other commercial IT system
 Web 2.0 support to help create richer user experience
 Uses real business data from z/OS applications
 Enhanced WebSphere MQ clients for increased
throughput resilience and availability
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%*
Web 2.0
Java Message Multi-Language
MQ Interface
Service (JMS) Message Service
IBM WebSphere MQ V7
Publish
Subscribe
Web 2.0
AJAX
HTTP GET
HTTP POST
Applications and Data
WebSphere MQ V7
HTTP DELETE
* Preliminary results observed on pre-release level code.
For the latest performance information please click on Performance Reports at www.ibm.com/webspheremq/support
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When to use System z as the Hub for your ESB
ESB requirements
 Integration:
System z benefits for ESBs
 Virtualization
– Complex transactions and roll back
– High resource utilization
– Monitor end-to-end transactions
in complex configurations
– Massive consolidation and simplification
– Allocate resources according to
business goals
– Workload isolation and security
– 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
– Enterprise workload management
 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 colocating 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
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Ball State University
Industry: Education
URL: http://cms.bsu.edu/
“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
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
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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
End-to-End Process
3. Monitor, Analyze and Optimize
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Existing System z Customers
Streamline and Automate Existing Processes
Customer
Presales
Account
Application
Activation and
Fulfillment
Verification and
Regulatory Compliance
Take individual steps…
Credit Check
…assemble and automate instead of re-writing!
Customer
Presales
Account
Application
Verification and
Regulatory Compliance
Credit Check
Activation and
Fulfillment
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Process Choreography on an SOA-Enabled Platform
“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.”
An SOA environment that provides:
 Process Automation & Execution
 Human Task Management
 Application Integration
 Built on SOA
Bruce Silver, Bruce Silver Associates – The
2006 BPMS Report
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SOA Process: Enhancing Our Portfolio
A discipline enhanced by flexible architecture
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
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
WebSphere Business
Monitor V6.1
Visualize, understand, and
document your business
processes
Comprehensive business activity
monitoring of your business
performance
 Document processes to better
understand your business
 Discover potential areas for
process improvement and
latent value in processes
 End-to-end visibility of business
performance through dashboards
 Advanced analytics for decision
making
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WebSphere Business Services Fabric
End-to-End Platform for Industry SOA Solutions
WebSphere Business
Service Fabric V6.1
WebSphere
Business Services
Fabric
End-to-end SOA platform for
composite business services
Interaction
Services
Process
Services
Information
Services
Partner
Services
Business App
Services
Access
Services
Apps &
Info Assets
Enterprise Service Bus
Management
Services
Business
Services
Development
Services
 Extends WebSphere Process
Server for z/OS and WebSphere
Integration Developer
Infrastructure
Services
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When to Use System z for Process Serving
Personal Loan Request
(New WASz Application)
System z–The choreographer for an SOA
Get Customer Information
(Existing CICS application)
 Efficiency
 Integration
 Automation
 Reliability
 Workload Management
 Security
 Availability
 Performance
Internet
DB2
Credit Rating
(External Bureau)
Approval
(Human Task)
Not Approved
Approved
Additional Services
(CRM System)
Reply
(Human or Electronic)
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Industry: Telecon
Customer Example: 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
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Simpler than ever to use SOA Entry Points
Proven configurations, best practices, and step by step guides
SOA Sandbox on
developerWorks
SOA Configurations
Examples and best practices provide
low risk, practical, hands-on
path to understanding
Full version software trials
Solutions for common SOA
use cases helps reduce
deployment time
System z Configurations for SOA
Leveraging Legacy and Packaged Applications
SOA Security and Management
Configuration guides
‘Try online’ hosted
environments
Solution Guides
Tutorials
Tested platforms
Demos
Architectural Guidance
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Process Integrity Takes SOA to the Next Level
Supporting Integrity of Transactions, Interactions & Information
Process Integrity is the ability to conduct reliable business activity
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
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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
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Infrastructure Simplification …
… a Critical Success Factor for SOA
 Operational silos
 Multiple tiers
 Inflexible with
increasing cost
 Growing complexity
SAN
BladeCenter
Business
Data
Mainframe
PCs
Web Servers
Routers
Switches
Firewall
Servers
Caching
Appliances
Data
System z
Mainframe
Transaction
Data
BackupReference
Data
Data
UNIX
SSL
Appliances
Storage
System p
Database
Servers
Security &
Directory Servers
Application
Servers
UNIX
DNS
Servers
UI Data
Utility Infrastructure
Application
Deep
Servers
Computing
Web Services E-Commerce
Applications
Collaboration
File/Print
Servers
SSL Appliances Servers
Terminal Serving
Java
Linux
Grid
Enterprise Trust
Authority
Transaction
Secure
Servers
Database
Vault
Application
Web Servers Servers
Utility Consolidation
(eg. File/Print server)
Today’s
Environment,
Simplified
PCs
File/Print
Servers
LAN Servers
 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
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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
Cumulative 5 Year Cost
Comparison
Steady State Savings
M$
Facilities
Connectivity
Storage
10%
Software
36%
1st Year 2nd Year 3rd Year
z9 Cumulative
4th Year
Labor
54%
5th Year
Distributed Cum
Identified substantial savings opportunity
Annual Energy Usage reduced by 80%
Total floor space reduced by 85%
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Questions & Answers
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