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IBM eServer™
Sophie Bechu, Vice President, Brand Advocate, Systems z, i & p Integrated Supply Chain
9/15/2006
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Agenda IBM’s Portfolio Financial Summary Systems & Technology Group Design for Supply Chain Overview
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IBM’s Portfolio is Balanced Between Services, Software and Hardware IBM……. delivers strong earnings growth and cash generation has a strategically balanced portfolio of hardware, software, and services Transformed itself by divesting commodity businesses and investing in higher value solutions Integrates to create a unique value for clients 9/15/2006
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IBM 2Q06 Financial Summary
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2Q06 Revenue and Gross Profit Margin
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Geographic Revenue
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Global Services
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Software
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Systems & Technology
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IBM Systems & Technology Group Milestones ¾
IBM is the #1 overall server vendor • #1 in blades and growing two-times faster than HP and three-times faster than Dell in the x86 unit market.
¾ IBM led in blade server revenue share for the eight consecutive quarters growing its blade revenue 61% in first quarter 2006 year-to-year. ¾ IBM is the clear leader in worldwide supercomputing with Blue Gene as the #1 and #2 systems on the June 2006 TOP500 list of the world's fastest supercomputers. –Blue Gene currently performs 280.6 trillion calculations per second or 280.6 teraflops. ¾ IBM moved past Sun Microsystems and HP to take the top spot in UNIX server revenue in 2005. ¾ IBM POWER5 processor-based systems, which power System i and System p platforms, currently hold 50 performance world records. ¾ IBM leads the high-performance segment of the Intel-based server market, where technology innovation is crucial. 9/15/2006
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Focus on Innovation In the 21st-century global economy, the pace and shape of innovation is being dramatically transformed. "The potential for innovation is only magnified by the emerging knowledge-based global economy," Palmisano said. "Today, the basis of innovation is less focused on things, and more on ideas, collaboration and expertise. And in our restless, 24-hour networked world, innovative ideas can move around the world with the click of a mouse.“ - Sam Palmisano Chairman and CEO IBM
“We will fight our battles not on the low road to commoditization, but on the high road of innovation.” - Howard Stringer, Chairman and CEO, Sony Corporation “Constant reinvention is the central necessity at GE... We're all just a moment away from commodity hell.” - Jeffrey Immelt, Chairman and CEO, GE
“From this point forward, innovation will be the compass by which the company sets its direction.” - Bill Ford, Chairman and CEO, Ford Motor Company
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Leadership Technology Enabling On Demand Business
Product Families Mainframe POWER-based UNIX®
Information On Demand
POWER-based Integrated
Technology & Packaging
Supercomputing Capacity On Demand
Blades
Capacity on Demand
Intel® processor-based
Grid Computing
AMD processor-based
Grid Computing
Clusters Production, office & industrial printers Retail hardware and software Processors IBM z/Architecture™
Infrastructure Solutions SOA
System Storage DS family System Storage Tape Family
Power Architecture X-Architecture Cell Broadband Engine™
System Storage Resiliency Family System Storage Open Software family 9/15/2006
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Advances in technology give us new options to drive innovation in the business
Examples driving change: Resources without limits – Smart objects – Supercomputing for everyone – Storage
Computing power is everywhere – Embedded devices – RFID – Pervasive network capabilities
Connectedness of everything – Open standards – Virtualization – Service-Oriented Architecture
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Systems & Technology Group Strategy 1. Extend core systems innovation and leadership – Deliver on the IBM Systems Agenda – Focus on small and medium businesses – Pursue opportunities in emerging countries – Maintain product leadership 2. Leverage collaborative innovation and expand into adjacent opportunities – Technology Collaboration Solutions • • • •
Semiconductor solutions Intellectual property Technology development and manufacturing Power Management – Reliability, Availability and Efficiency
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Openness Drives Power Everywhere Pervasive use of POWER builds out ecosystem Used across the industry as embedded technology
Pervasive in high volume products
Power in Core Systems
System p5-595 System i5-595
DS8000 9/15/2006
System i5-520 System p5-520
System p5 & System i5 Express © 2006 IBM Corporation
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The IBM Systems Family
Innovative, proven technology providing platform choice to match unique business needs
xSeries® BladeCenter®
System z™
Innovation comes standard.
System Storage™
Connected. Protected. Complete.
Simplify data center complexity.
The flagship for IBM Systems innovation and the heart of a highly secure, resilient and integrated infrastructure.
System i™
Integration. Simplicity. Solutions. Simplify your IT. Innovate your business.
IBM Printing Systems
Innovative output solutions for high-speed production printing, distributed print and industrial applications
Retail Store Solutions
Leading-edge hardware and software for the most demanding retail environments
System p™
Get the power to do more, spend less.
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IBM Integrated Supply Chain Strategy Today the forces of globalization and commodization are unstoppable. And this has created a challenge that is as tough as it is clear: How to cut costs and grow simultaneously. In response, our strategy is to exploit innovation; and adopt a new competitive approach focused on leveraging our global expertise to dramatically lower cost positions and improve productivity, speed, flexibility, and resilience to drive growth. We have the incredible opportunity to become the integrating force for IBM -- the "glue" that holds the company together and aligns all of our resources in the most important direction -- our clients.
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Design for Supply Chain (DfSC) Overview:
Offerings designed for supply chain efficiency and effectiveness... • Maximize commonality, modularity, universality, and postponement • Optimize sourcing, planning, manufacturing, and delivery • Address supply chain limitations and leverage supply chain capabilities Configurator
Marketing Strategies and Product Plans
Cust. Fulfillment Supply/Demand
Brand
DfSC
Supply Chain Capabilities
Development
Technology and Design Portfolios
Manufacturing Procurement
Service Execution Global Logistics
Product Design
Supply Chain 9/15/2006
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….and are distinguished by decisions based on life cycle impacts Portfolio Supply Chain Strategy Manage Sales
Product End-of-Life Manage Cust.
Market & Sell
Development (EC) Exp---------------------------------------------------------------Solutions Understand Product & & Marketing Content& Partner Relations Aftermarket Customer Markets & Solution Logistics Service & Fulfillment Supply & Demand Planning---------------------------------------------------------Customers Development Support Planning Procurement Manufacturing Order Management -----------------------------Sourcing/Fulfillment plans ----------------------Source Development (EC) Exp |-------------------------------------------------------------| Material Acquisition Supply & Demand--------------------------------------------Planning |--------------------------------------------------------| Order Management |-----------------------------| Bill of Material (BMC) -------------------------------------------Plan Sourcing/Fulfillment plans |-----------------------| Manufacturing MVA ---------------------------------------Acquisition ---------------------------------------------------------------|---------------------------------------------| InventoryMaterial Carrying Bill of Material (BMC) |-------------------------------------------| Warranty/Service -----------------------Make Manufacturing MVA |----------------------------------------| Obsolescence Risk ---------Inventory Carrying |--------------------------------------------------------------| Deliver Warranty/Service Obsolescence Risk
|----------------------| |---------|
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Design for Supply Chain Techniques 101 DfSC Technique
Description
Generic Example CD player
IBM Example
Commonality
Component used in multiple end products (industry standard)
Same power supply and/or chassis used across multiple product offerings.
Modularity
A common interface that Interchangeable CD accepts different player, CD-RW or DVD components “plug & play”
Common, Pluggable VRM’s (Voltage Regulation Module)
Universality
A component designed to suit every conceivable need
Combination CD/CDRW/DVD
Power supplies that operate over full voltage range (100v - 240v AC)
Postponement
Personalize component only when customer requirement is known
Software determines CD player or CD-RW or DVD functionality at final assembly
Optimization of pluggable vs embedded VRM’s.
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VRM output voltage setting based on installed component. © 2006 IBM Corporation
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Active Power Part Numbers Continue to Trend Down
Active Power Part Number Trend 2000 1500
“Active Parts” Redunction Focus Chassis Consolidation & Product line simplification
RoHS
Projection
1000 500 0 2000 2001 2002 2003 2004 2005 2006 2007 Non RoHS 9/15/2006
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Datacom Equipment Power Density Chart
Individual Rack Capacity
38 kW 30 kW 22 kW 15 kW
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Trends That Affect Power, Packaging, and Cooling 2000
2001
Technology Drivers Processors
2002
2003
2004
2005
Power Density (W/CM )
2007
FBD Memory
IO
PCI
2009 Multicore 8x
40
0.8
1.0
2
Chip Voltage (VDC)
2008
Multicore 4x
Multicore 2x
20
2
2006
4x IB & IB Modules 40 Gb Enet PCI Express 4x IB Cables/Switches 10 Gb Enet
PCI X
300 GB 3.5" SATA/ SAS
Media HDD density
750 GB SATA
36 GB 3.5"
Form Factor (HDD, CD, FDD)
2.5" SFF, SCSI 2.5" SAS
Market Drivers
Technology Enablers Cooling W/CM
Cooling Ability
Power
( * blade servers)
15
Heat Pipes
2
1
U
Outputs
3.3V, 5V, 12V
(quad core)
(dual core)
(single core)
42
488 cores
336 cores
168 cores
CPU cores per Rack* (42U )
Vapor Chamber
Chilled Air Racks
Chilled Air / Water
35
12V Distributed
5V, 12V Hybrid
22
15
40
20 Power Density (W/in ) 3 3
Power Efficiency ( % ) 80%
Packaging
Servers
Rack / Tower
94%
92%
90%
85%
Rack Optimized
Server Blade - Low Power
Server Blade High Power
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Modular Scalar Systems
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IBM plans to:
In summary
Extend core systems leadership Become accelerators of innovation Grow faster than the industry Produce the best product ¾ Least Cost ¾ Best Quality and Reliability ¾ On Time Deliveries
To Achieve These Goals: Collectively we must improve ¾ Power efficiency ¾ Reliability ¾ Silicon Solutions
Let’s Grow Together !!!
¾ Packaging ¾ Openness ¾ Shared Innovation 9/15/2006
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9/15/2006
© 2006 IBM Corporation
