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v © 2007 IBM Corporation IBM Systems and Technology Group WHY HAVEN’T YOU MOVED TO IBM BladeCenter? See the legal chart for important notices and information

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© 2007 IBM Corporation

IBM Systems and Technology Group

WHY HAVEN’T YOU MOVED TO IBM BladeCenter?

See the legal chart for important notices and information

Center Your IT with BladeCenter

© 2007 IBM Corporation

#1 — THE POWER ISSUE

“I cannot fill up my racks because I am out of power. Why would I want to move to blades?”

BladeCenter

HS21

Dell 1U

PE 1950

HP 1U

DL 360 G5

36 servers, 72 processors

36 servers, 72 processors

36 servers, 72 processors

21U 36U 36U

9,864W 14,904W 15,264W

Running out of power before your rack is filled with 1U or 2U servers is common

Getting the most performance, capacity or users from each KW you have is most important

For like configurations, IBM BladeCenter® can save up to 34% on power over 1U servers

1

Center Your IT with BladeCenter

© 2007 IBM Corporation

POWER EFFICIENCY INCREASES DENSITY

24 1U servers

36 blades three chassis

10KW rack holds 24

1U servers (414W)

10KW rack holds 36

blade servers (274W)

BladeCenter is often much more efficient than comparable 1U servers ► More efficient power supplies

► More efficient power distribution within server

► Less power draw for the thermal solution

► Fewer parts needed to build the solution means fewer parts needing power

1U

IBM BladeCenter Potentially 35% more servers without any additional power

Center Your IT with BladeCenter

© 2007 IBM Corporation

ZUMIEZ MAXIMIZES POWER EFFICIENCY WITH IBM

ChallengeImplement additional IT and power needed to keep up with its business. Should they replace the UPS they bought and buy more rack servers, or choose a more energy-efficient solution better equipped to handle growth?

SolutionIBM BladeCenter and virtualization with VMwareAzaleos OneServer Exchange 2003 appliance

"We looked at HP and IBM. We ultimately went with the IBM blades because they consumed less power and generated less heat than HP blades and were overall, a more energy-efficient choice. We'd

never had any IBM technology before, but because of the business advantages BladeCenter has provided Zumiez, we're planning that 100 percent of our server investment moving forward will be with

IBM.”– Zumiez Technology Director, Lee Hudson

BenefitsReduced server count by half over the existing HP 1U and 2U solutionSaved over 25% on energy costs and $80,000 on a new UPS

Center Your IT with BladeCenter

© 2007 IBM Corporation

#2 — THE HEAT ISSUE

“With my current rack servers, my data center is overheating. Will blades make my heat problems worse?”

BladeCenter

HS21

Dell 1U

PE 1950

HP 1U

DL 360 G5

36 servers, 72 processors

36 servers, 72 processors

36 servers, 72 processors

21U 36U 36U

33,636 BTU 50,822 BTU 52,050 BTU

Heat often prevents clients from gaining maximum performance density in their data center BladeCenter is efficient with 35% less heat, 40% lower air flow requirements

2

Center Your IT with BladeCenter

© 2007 IBM Corporation

DATA CENTER HOT SPOTS CAUSED BY:

Servers that produce too much heat

Poor data center design

Servers that demand more air than the server room provides

IBM BladeCenter can produce less heat—as much as 35% per server compared to 1Us

IBM BladeCenter can require as much as 40% less airflow than comparable 1Us

IBM facilities team can help you maximize your air conditioning assets

ColdAisleColdAisle

Coldaisle

Coldaisle

Hot aisle

Hot spots can cause servers to work harder, which can mean reduced life expectancy and more

downtime

Center Your IT with BladeCenter

© 2007 IBM Corporation

SUSTAINABILITY VICTORIA, A MODEL OF EFFICIENCY

ChallengeMerge IT systems and platforms of two predecessor organizations and three offices. As a government organization that encourages and assists citizens to reduce their everyday environmental impacts, they needed to be a model for energy-efficient technology usage

SolutionIBM BladeCenter solution from IBM Business Partner Southern Cross Computing Services

"We sat down with a number of vendors and tried to work out how we could build a new server room from scratch that was designed to minimize energy usage. None of the vendors we spoke to really grasped what

we were getting at until we spoke to IBM. Sustainability is something we’re very passionate about, so it was a relief to find a vendor that spoke the same language.”– Chief Executive, Sustainability Victoria, Geoff Mabbett

BenefitsReduced number of servers and power consumptionIncreased energy efficiency over previous HP implementationEasy migration

Center Your IT with BladeCenter

© 2007 IBM Corporation

400MHz Xeon®

1 year

533MHz533MHz, 64-bit

800MHz, 64-bit

2MB L2 cache

Dual-core

Quad-core

1 year1 year

1 1/2 year?

2009+11

23

45

#3 — TECHNOLOGY TOO HARD TO KEEP UP WITH

“IT I bought last year is not valuable anymore. I can’t spend days or weeks understanding how to use the latest technology. How can

BladeCenter possibly help with that?”

Technology is changing faster than ever. With BladeCenter, even our first clients can plug in the latest-and-greatest technologies

Make your next IT purchase more than a one-time buy and lay down a foundation for smarter IT with IBM BladeCenter

3

Center Your IT with BladeCenter

© 2007 IBM Corporation

FIVE YEARS OF DURABLE INFRASTRUCTURE

Add new IT as it comes out

IBM BladeCenter Compatibility is the foundation for smarter

IT

2002 — BladeCenter with Gb Ethernet support

2003 — 2Gb Fibre Channel support

2004 — 1x InfiniBandTM support

2005 — 4Gb Fibre Channel support

2006 — Cell BE EngineTM processor support1

2006 — 10Gb Ethernet uplink enablement

2006 — Advanced Management Module

2007 — Intel® quad-core processors

2007 — HS21 extended memory blade

Plus — 5 generations of Intel Xeon processors

Plus — 2 generations of PowerPC® processors

Plus — 2 generations of AMD processors

Keep your infrastructure in place— rack, power2, cabling, switching…

Stay current without the churn

1 Separate chassis required 2 New generations of blade servers sometimes require power supply options

Center Your IT with BladeCenter

© 2007 IBM Corporation

ANIMAL LOGIC BUILDS RENDERING FARM WITH IBM

ChallengeBuild a massive, flexible, scalable and easy-to-manage computing infrastructure to produce a full-length animated feature

Solution73 IBM BladeCenter systems each with 14 IBM BladeCenter HS20 blade serversMix of IBM, third-party and open-source software

BenefitsOver 2,000 processors in a compact designInfrastructure that can be easily scaled to meet future requirementsDay-to-day management by a single technician

“The machines work as expected. Sometimes we forget that we have 2,000 CPUs doing their job every day. There’s only one person who looks after all of them.”

– Animal Logic Director of Technical Operations, Xavier Desdoigts

House of Flying Daggers – visual effects by Animal Logic

Center Your IT with BladeCenter

© 2007 IBM Corporation

#4 — I NEED FLEXIBILITY IN MY IT ENVIRONMENT

From HPC to ERP

Digital media to e-mail

Virtualization to database

File/print to security

Web hosting to IPTV

ALL ON ONE FLEXIBLE PLATFORM

“I’m not buying into an architecture that cannot meet my diverse IT requirements. Can blades possibly support all my needs?”

Availability, choice and flexibility allow many companies run their entire infrastructure on BladeCenter

– Uptime for ERP and database– Flexibility to attach external storage

– Performance for cutting-edge applications– Cost point for SMB and file/print

4

Center Your IT with BladeCenter

© 2007 IBM Corporation

BladeCenter IS YOUR SINGLE IT BUILDING BLOCK

Intel Xeon HS21 / HS21XM

Application Environment/Performance Data Center

BladeCenterBladeCenter T

IBM Ecosystem

BladeCenter HBladeCenter HT

BrocadeCiscoMyricomNortelQLogicMcDATAEmulexNetXen iSCSI

Microsoft®VMwareNovellRed HatSuSEAIX®Solaris

AMD Opteron LS21

AMD Opteron LS41

IBM PowerPC JS21

Cell BE QS20

Center Your IT with BladeCenter

© 2007 IBM Corporation

LIGHTEDGE EMPOWERS SMB WITH BladeCenter

ChallengeStandardize the IT infrastructure for the company’s wide range of voice, data and IT services

SolutionStandardization on IBM BladeCenter, IBM System x™ and IBM System StorageTM DS4800

BenefitsImproved reliability, availability and scalabilityReduced SLA for response and repair times from four hours to twoEasier maintenance and manageability through single-vendor platform

“It was obvious with the IBM BladeCenter technology that IBM was light years ahead of the competition.”

– Director of Systems Engineering and Operations, LightEdge Solutions, Joe Shields

Center Your IT with BladeCenter

© 2007 IBM Corporation

#5 — I CAN’T CHANGE MY NETWORK STANDARDS

“I like the idea of blades, but I have strict networking and storage standards that I cannot break just for a new server architecture.”

BladeCenter integrates the largest selection of switching and fabric support in the industry so you can keep your current standard

This is key for a simple rack-to-blade transition

IBM BladeCenter Cooperative, open, collaborative

5

Center Your IT with BladeCenter

© 2007 IBM Corporation

INTEGRATE YOUR STANDARDS INSIDE BladeCenter

Cisco Intelligent EthernetCisco Fiber Layer 2/3Nortel Copper Layer 2/3Nortel Fiber Layer 2/3Nortel Layer 2/7Nortel Layer 10Gb UplinkNortel Layer 10GbServer Connectivity ModuleCopper pass-through

Brocade 10 / 20-portQLogic 10 / 20-portMcDATA 10 / 20-portCisco 10 / 20-port Optical pass-through

Cisco InfiniBandCisco 4X InfiniBandVoltaire 4X Pass Through

Simple pass-through designsSuper low-cost, simple switchesPowerful, standard layer 2/3 offeringsHighly advanced layer 2/7High-performance 4Gb Fibre ChannelFirst to market for blade servers with 10Gb InfiniBand and Ethernet

Ethernet Fibre Channel

InfiniBandRight sized for your needs

Center Your IT with BladeCenter

© 2007 IBM Corporation

ASIAN ART MUSEUM DRAWS IBM CONCLUSION

ChallengeBolster security system after a five year, $165+ million dollar reconstruction project. They were faced with the replacement of 130 cameras with sophisticated video technology at close to $500KSolutionDataCom security networks running inside the IBM BladeCenter platform that leverages existing analog sources and network components

"Not only was the solution up and running in a matter of weeks, but the scalability of IBM BladeCenter will allow us to increase the system's capacity if and when we need to."

– Director of IT, Asian Art Museum, Jim Horio

BenefitsAllows them to monitor and digitally record activity while archiving footage over an IP network Provides high-tech security without adding a great deal of new, costly equipmentConsolidates existing security resources to enhance/simplify data management cost effectively Provides room growth

Center Your IT with BladeCenter

© 2007 IBM Corporation

#6 — MOVING FROM DELL OR HP IS TOO HARD

“I’m standardized on Dell or HP servers. My technical people are familiar with their tools. Won’t a move to IBM be painful?”

WITH BLADECENTER, LEAVE BEHIND:

Inefficiency

Antiquated IT thinking

Multiple transitions

Myriad of cables

Wasted rack space

Lack of scalability

Downtime

A smarter IT foundation does not have to be painful. IBM can show you how BladeCenter helped improve the efficiency of former Dell and HP clients

6

Center Your IT with BladeCenter

© 2007 IBM Corporation

IBM HELPS YOU MIGRATE TO SMARTER IT

IBM Blade Migration Center

Migration consulting services

Implementation assistance

Financial incentives

Leading-edge migration technologies from IBM and IBM Business Partners

Education

To learn more, visit ibm.com/systems/bladecenter/migration/center/

Center Your IT with BladeCenter

© 2007 IBM Corporation

DEVON HEALTH CURES IT PROBLEMS WITH IBM

ChallengeGrow IT systems to keep up with business needs while controlling power costs

SolutionConsolidated HP servers on to IBM BladeCenter hosted client solution

“The BladeCenter modular, compatible design allowed us to look at our disaster recovery plans and our business continuity plans in a different way. Because the parts are similar, all we need to know is

the configuration. So if we have a total loss, we just need a part. We don’t have to worry about recreating the whole server or the whole environment from a different perspective.”

– Director of IT, Devon Health Services, Justin Hawley

BenefitsReduced number of serversLowered power consumptionReduced number of help desk callsEasier management

Center Your IT with BladeCenter

© 2007 IBM Corporation

#7— BLADES WILL COST ME MORE

“I like what IBM has done with BladeCenter, but it’s not enough to make me pay more for the technology. My tight budget demands I keep my costs

down.”

Integrated managementempowers IT to do more

Less cabling

Less powerand cooling

Less testing,lower risk Lower switching

cost One platform, many needs

Greater density

With economies of scale from 5-8 servers, BladeCenter can be the right choice for small businesses as well as large

IBM’s approach to integration can save time, aggravation, risk, complexity—AND MONEY

7

Center Your IT with BladeCenter

© 2007 IBM Corporation

COMPARING BladeCenter TO 1U COMPETITORS

Attractive price point, gets better as typical functions are added

Relatively low cross over economics for blades versus 1U

Lower TCO—power, cooling, space, management, deployment ease

1 To make a comparable configuration, price is based on a BladeCenter chassis ($2,785) with 14 blades ($2,792 each) and a power supply ($999) for a total of $42,872—divided by 14 to get a single-server price of $3,062

FunctionalityBladeCenter HS21

Intel 5120, 1GB, 2-36GB

Dell PowerEdge 1950

Intel 5120, 1GB, 2-36GB

HP DL360 G5

Intel 5120, 1GB, 2-36GB

Base offering $3,0621 $2,645 $3577

Cost of redundant power

$0 (included) ADD $299 / system ADD $299 / system

Cost of systems management iLO, DRAC

$0 (included) ADD $299 / system / DRAC ADD $299 / system / iLO

Cost of typical client configuration

$3,062 $3,243 $4,175

Cost of KVM switching $0 (included)$90 / System

(cables and switch)$171 / System

(cables and switch)

Cost of Ethernet cables $0 (included) $10 / system $10 / system

Cost of Fibre cables $0 (included) $150 / system $154 / system

Cost of HBA $699 / system $1,219 / system $1,900 / system

Total cost / server $3,761 $4,712 $6,410

Center Your IT with BladeCenter

© 2007 IBM Corporation

SIEBEL SPEEDS PEFORMANCE WITH BladeCenterChallengeConsolidate hardware and enhance remote server management capabilities to maximize existing budget and reduce man hours needed to manage workload

SolutionIBM BladeCenter HS20 and HS40 systemsMicrosoft Windows® and Microsoft Virtual Server

“Implementation of the IBM blades has given us the ability to consolidate and allocate resource efficiently. We literally eliminated approximately 300 local desktops worldwide because of the blades.”

– Siebel IT Engineer, An Amelie

BenefitsIncreased utilization and productivity with elimination of over 300 desktops worldwideReduced server deployment and image creation times by more than 66 percentLowered cabling requirements by 92 percentDramatically reduced overall IT costsIncreased floor spaceIncreased availability

Center Your IT with BladeCenter

© 2007 IBM Corporation

MARANA, AZ EMPOWERS CITIZENS WITH IBMChallengeDeliver citizens a more complete Web-based solution for online bill payment and real-time access to digital maps and 3D spatial analysis models from the town's Geographic Information Systems DepartmentHave IT system in place to handle rapid growth

Solution20 IBM BladeCenter servers attached to IBM System Storage DS4700 for fast-access storage and TS3110 LTO Tape Library for long-term back up

“We accomplished more to identify a new solution in the first day with the IBM team than we were able to do in several months with our previous technology partner. IBM offered professionalism,

expertise and superior technology at half the cost had we stayed with HP."– Director of IT, Town of Marana, Anthony Casella

BenefitsProvides citizens fast access to dataSaves nearly 300,000 trees by going digitalProvides room for growthProvides easy migration platform

Center Your IT with BladeCenter

© 2007 IBM Corporation

#8 — CONCERN ON SINGLE POINTS OF FAILURE

“Putting all the servers into a single chassis makes me very concerned about a single point of failure. Loosing a single 1U

isn’t too bad, but the loss of a full chassis worries me.”

ALL IBM blades are designed with REDUNDANT CONNECTIONS for power and I/O

ALL IBM chassis are designed with a REDUNDANT PATH so all blades can connect with power and I/O modules even if one path fails

Two complete N+N redundant power domainsRedundant

cooling

Redundant I/O connectors

Redundant power

connections

BladeCenter is designed for extreme availability—a major advantage over competitors’ blades that may not be designed for extreme uptimeCompetitive blades may fall short too

Single power connectors

N+1 power topologies

Poor redundancy for thermal solution

No duplicate connections for I/O

No redundant management

No interlock with virtualization tools

IBM BladeCenter 8

Center Your IT with BladeCenter

© 2007 IBM Corporation

SMOOTH SAILING FOR NAVY WITH RAYTHEON & IBMChallengeUse technology to accelerate the development of weapons systemsReduce number of crew members needed to sail next-generation Navy Destroyers

SolutionIBM BladeCenter, IBM BladeCenter T, IBM WebSphere® and Linux®

"By taking advantage of open technologies the U.S. Navy and industry are better able to create infrastructure and mission-critical solutions at lower cost and risk. The TSCE project has been an

outstanding example of collaboration between IBM, Raytheon, the open source community and the U.S. Navy to deliver state-of-the-art solutions in support of our national defense."

– Strategy Vice President and CTO, IBM US Federal, David McQueeney

BenefitsLeverages a single computing environment for all applicationsReduces maintenance costs and complexity of US Navy ships’ computing environmentProvides processing capability and availability to address current and future threatsProvides rugged IT

Center Your IT with BladeCenter

© 2007 IBM Corporation

SIMPLE FOCUS, POWERFUL RESULTS

REASON ONE—IBM believes preserving system investment with compatible chassis is an important objective

Preserve investment and speed adoption

REASON FOUR—IBM offers more flexibility and choice in creating a customized infrastructure and industry solutions

Harness the innovative power of the industry

REASON THREE—IBM intelligent I/O through Virtual Fabric Architecture offers more bandwidth and adaptability

Extract the most from your applications

REASON TWO—IBM BladeCenter requires less power and cooling

Become more energy efficient

Center Your IT with BladeCenter

© 2007 IBM Corporation

THE IBM BladeCenter FAMILY

IBM BladeCenter• 14 blades, 7U• Mainstream applications• Ideal for SMB, data centers and remote sites

IBM BladeCenter H• 14 blades, 9U• Ideal for extreme I/O, data-intense environments• Excellent platform for virtualization

IBM BladeCenter T• 8 blades, 8U• NEBS characteristics• Ruggedized chassis• Ideal for telco, military, medical-imaging applications

IBM BladeCenter HT• 12 blades, 12U• NEBS characteristics• Ideal for services, control and transport planes• Ruggedized chassis

YOU CAN ALWAYS COUNT ON FAMILY. ESPECIALLY THIS ONE.

Center Your IT with BladeCenter

© 2007 IBM Corporation

LEGAL

NOTES(c) 2007 International Business Machines Corporation. All rights reserved.Performance is in Internal Throughput Rate (ITR) ratio based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput that any user will experience will vary depending upon considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve throughput improvements equivalent to the performance ratios stated here.IBM hardware products are manufactured from new parts, or new and serviceable used parts. Regardless, our warranty terms apply. For a copy of applicable product warranties, write to: Warranty Information, P.O. Box 12195, RTP, NC 27709, Attn: Dept. JDJA/B203. IBM makes no representation or warranty regarding third-party products or services including those designated as ServerProven® or ClusterProven®.This publication was produced in the United States. IBM may not offer the products, services or features discussed in this document in other countries, and the information may be subject to change without notice. Consult your local IBM business contact for information on the product or services available in your area.All customer examples cited or described in this presentation are presented as illustrations of the manner in which some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions.Information about non-IBM products is obtained from the manufacturers of those products or their published announcements. IBM has not tested those products and cannot confirm the performance, compatibility, or any other claims related to non-IBM products. Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products. All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.Prices are subject to change without notice. Starting price may not include a hard drive, operating system or other features. Contact your IBM representative or IBM Business Partner for the most current pricing in your geography.MB, GB, and TB = 1,000,000, 1,000,000,000 and 1,000,000,000,000 bytes, respectively, when referring to storage capacity. Accessible capacity is less; up to 3GB is used in service partition. Actual storage capacity will vary based upon many factors and may be less than stated. Some numbers given for storage capacities give capacity in native mode followed by capacity using data compression technology. Maximum internal hard disk and memory capacities may require the replacement of any standard hard drives and/or memory and the population of all hard disk bays and memory slots with the largest currently supported drives available. References in this document to IBM products or services do not imply that IBM intends to make them available in every country.Any proposed use of claims in these materials outside of the United States must be reviewed by local IBM country counsel prior to such use.The information could include technical inaccuracies or typographical errors. Changes are periodically made to the information herein; these changes will be incorporated in new editions of the publication. IBM may make improvements and/or changes in the product(s) and/or the program(s) described in this publication at any time without notice.Any references in this information to non-IBM Web sites are provided for convenience only and do not in any manner serve as an endorsement of those Web sites. The materials at those Web sites are not part of the materials for this IBM product and use of those Web sites is at your own risk.

The following are trademarks of the International Business Machines Corporation in the United States and/or other countries. AIX, IBM, the IBM logo, BladeCenter, ClusterProven, ServerProven, System Storage, System x and WebSphere. For a complete list of IBM trademarks, see www.ibm.com/legal/copytrade.shtml.

The following are trademarks or registered trademarks of other companies. Cell Broadband Engine is a trademark of Sony Computer Entertainment Inc. InfiniBand is a registered trademark of the InfiniBand Trade Association. Intel, Xeon and Itanium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. Linux is a registered trademark of Linus Torvalds in the United States and other countries. Microsoft and Windows are trademarks of Microsoft Corporation in the United States, other countries, or both. UNIX is a registered trademark of The Open Group in the United States and other countries. Other company, product and service names may be trademarks or service marks of others.

All other products may be trademarks or registered trademarks of their respective companies.