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Tony Pearson is a Master Inventor, Senior IT Architect and Event Content Manager for [IBM Systems for IBM Systems Technical University] events. With over 30 years with IBM Systems, Tony is frequent traveler, speaking to clients at events throughout the world.
Lloyd Dean is an IBM Senior Certified Executive IT Architect in Infrastructure Architecture. Lloyd has held numerous senior technical roles at IBM during his 19 plus years at IBM. Lloyd most recently has been leading efforts across the Communication/CSI Market as a senior Storage Solution Architect/CTS covering the Kansas City territory. In prior years Lloyd supported the industry accounts as a Storage Solution architect and prior to that as a Storage Software Solutions specialist during his time in the ATS organization.
Lloyd currently supports North America storage sales teams in his Storage Software Solution Architecture SME role in the Washington Systems Center team. His current focus is with IBM Cloud Private and he will be delivering and supporting sessions at Think2019, and Storage Technical University on the Value of IBM storage in this high value IBM solution a part of the IBM Cloud strategy. Lloyd maintains a Subject Matter Expert status across the IBM Spectrum Storage Software solutions. You can follow Lloyd on Twitter @ldean0558 and LinkedIn Lloyd Dean.
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In his Backup Blog, fellow blogger Scott Waterhouse from EMC has yet another post about Tivoli Storage Manager (TSM) titled [TSM and the Elephant]. He argues that only the cost of new TSM servers should be considered in any comparison, on the assumption that if you have to deploy another server, you have to attach to it fresh new disk storage, a brand new tape library, and hire an independent group of backup administrators to manage. Of course, that is bull, people use much of existing infrastructure and existing skilled labor pool every time new servers are added, as I tried to point out in my post [TSM Economies of Scale].
However, Scott does suggest that we should look at all the costs, not just the cost of a new server, which we in the industry call Total Cost of Ownership (TCO). Here is an excerpt:
Final point: there is actually a really important secondary point here--what is the TCO of your backup infrastructure. In some ways, TSM is one of the most expensive (number of servers and tape drives, for example), relative to other backup applications. However, I think it would be a really interesting exercise to critically examine the TCO of the various backup applications at different scales to evaluate if there is any genuine cost differentiation between them.
Fortunately, I have a recent TCO/ROI analysis for a large customer in the Eastern United States that compares their existing EMC Legato deployment to a new proposed TSM deployment. The assessment was performed by our IBM Tivoli ROI Analyst team, using a tool developed by Alinean. The process compares the TCO of the currently deployed solution (in this case EMC Legato) with the TCO of the proposed replacement solution (in this case IBM TSM) for 55,000 client nodes at expected growth rates over a three year period, and determines the amount of investment, cost savings and other benefits, and return on investment (ROI).
Here are the results:
"A risk adjusted analysis of the proposed solution's impact was conducted and it was projected that implementing the proposed solutions resulted in $16,174,919 of 3 year cumulative benefits. Of these projected benefits, $8,015,692 are direct benefits and $8,159,227 are indirect benefits.
Top cumulative benefits for the project include:
Backup Coverage Risk Avoidance - $6,749,796
Reduction in Maintenance of Competitive Products - $1,576,000
Reduction in Existing Tivoli Maintenance (Storage and Monitoring) - $1,490,000
IT Operations Labor Savings - Storage Management - $982,919
Network Bandwidth Savings - $575,196
Standardization - $366,667
Future cost avoidance of addtional competitive licenses - $350,000
These benefits can be grouped regarding business impact as:
$6,456,025 in IT cost reductions
$1,559,667 in business operating efficiency improvements
$8,159,227 in business strategic advantage benefits
The proposed project is expected to help the company meet the following goals and drive the following benefits:
Reduce Business Risks $6,749,796
Consolidate and Standardize IT Infrastructure $4,975,667
Reduce IT Infrastructure Costs $2,057,107
Improve IT System Availability / Service Levels $1,409,431
Improve IT Staff Efficiency / Productivity $982,919
To implement the proposed project will require a 3 year cumulative investment of $5,760,094 including:
$0 in initial expenses
$4,650,000 in capital expenditures
$1,110,094 in operating expenditures
Comparing the costs and benefits of the proposed project using discounted cash flow analysis and factoring in a risk-adjusted discount rate of 9.5%, the proposed business case predicts:
Risk Adjusted Return on Investment (RA ROI) of 172%
Return on Investment (ROI) of 181%
Net Present Value (NPV) savings of $8,425,014
Payback period of 9.0 month(s)
Note: The project has been risk-adjusted for an overall deployment schedule of 5 months."
IBM Tivoli Storage Manager uses less bandwidth, fewer disk and tape storage resources than EMC Legato. For even a large deployment of this kind, payback period is only NINE MONTHS. Generally, if you can get a new proposed investment to have less than 24 month payback period you have enough to get both CFO and CIO excited, so this one is a no-brainer.
Perhaps this helps explain why TSM enjoys such a larger marketshare than EMC Legato in the backup software marketplace. No doubt Scott might be able to come up with a counter-example, a very small business with fewer than 10 employees where an EMC Legato deployment might be less expensive than a comparable TSM deployment. However, when it comes to scalability, TSM is king. The majority of the Fortune 1000 companies use Tivoli Storage Manager, and IBM uses TSM internally for its own IT, managed storage services, and cloud computing facilities.
Well, I had a pleasant vacation. I took a trip up to beautiful Lake Powell in Northern Arizona as part of a "Murder Mystery Dinner" weekend. This trip was organized by AAA and Lake Powell in association with the professionals at [Murder Ink Productions] out of Phoenix.
The trip involved two busloads of people from Tucson and Phoenix driving up to Lake Powell, with a series of meals that introduced all the characters and gave out clues to solve a murder. At the end of the dinner on the last evening, we had to guess who dunnit, how, and why. I solved it, and got this lovely tee-shirt.
More importantly, the trip gave me a chance to read
[The Numerati] by Stephen Baker. The author explains all the different ways that "analysts" are able to crunch through the large volumes of data to gain insight. He has chapters on how this is done for shoppers in retail sales, voters for upcoming elections, patients for medical care, and even matchmaking services like chemistry.com. Like the Murder Mystery Dinner, there are too many suspects and too many clues, but these number-crunchers, which Mr. Baker calls The Numerati, are able to figure out through advanced business analytics.
FTC Notice: I recommend this book. I did not receive any compensation to mention this book on this blog, I did not receive a copy of the book free for this review, and I do not know the author. Everyone in my staff is reading this book, and I borrowed a copy from a co-worker.
If you don't understand how this all works, here is a quick 6-minute [video] on YouTube.
Well, it's Tuesday again, and we have more IBM announcements.
XIV asynchronous mirror
For those not using XIV behind SAN Volume Controller, [XIV now offers native asynchronous mirroring] support to another XIV far, far away. Unlike other disk systems that are limited to two or three sites, an XIV can mirror to up to 15 other sites. The mirroring can be at the individual volume, or a consistency group of multiple volumes. Each mirror pair can have its own recovery point objective (RPO). For example, a consistency group of mission critical application data might be given an RPO of 30 seconds, but less important data might be given an RPO of 20 minutes. This allows the XIV to prioritize packets it sends across the network.
As with XIV synchronous mirror, this new asynchronous mirror feature can send the data over either its
Fibre Channel ports (via FCIP) or its Ethernet ports.
The IBM System Storage SAN384B and SAN768B directors now offer [two new blades!]
A 24-port FCoCEE blade where each port can handle 10Gb convergence enhanced Ethernet (CEE). CEE can be used to transmit Fibre Channel, TCP/IP, iSCSI and other Ethernet protocols. This connect directly to server's converged network adapter (CNA) cards.
A 24-port mixed blade, with 12 FC ports (1Gbps, 2Ggbs, 4Gbps, 8Gbps), 10 Ethernet ports (1GbE) and 2 Ethernet ports (10GbE). This would connect to traditional server NIC, TOE and HBA cards as well as traditional NAS, iSCSI and FC based storage devices.
IBM also announced the IBM System Storage [SAN06B-R Fibre Channel router]. This has 16 FC ports (1Gbps up to 8Gbps) and six Ethernet ports (1GbE), with support for both FC routing as well as FCIP extended distance support.
With the holiday season coming up at the end of the year, now is a great time to ask Santa for a new shiny pair of XIV systems, and some extra networking gear to connect them.
For those who want to meet me in person, there are two opportunities coming up in December.
Data Center Conference, December 1-4
Once again, I will be blogging from Ceasar's Palace Las Vegas at this year's [Data Center Conference 2009]! Last year's conference was a blast, and this one looks to be quite exciting. IBM is again a premier sponsor. Scheduled to speak are the following IBM executives:
Helene Armitage, the new General Manager of System Software, on "IT-Wide Virtualization, A Prerequisite for a Truly Dynamic Infrastructure"
Steve Sams, the VP of Sites and Facilities, on "Data Center Actions Your CFO Will Love"
Barry Rudolph, the VP of System Storage, on "Meeting the Information Infrastructure Challenge"
We will also have an IBM booth at the Solutions Showcase, showing off the latest in Cloud Computing,
Service Management, Information Infrastructure, and Workload-optimized systems. You will be able to schedule one-on-one sessions with IBM executives and subject matter experts. Best of all, we will have on display a Portable Modular Data Center [PMDC] that can hold a fully operational data center in a standard [20 foot shipping container].
IBM Virtualization and Consolidation Briefing, December 15
This is being done "open house" style. If you can get yourself to the IBM Tucson Executive Briefing Center, IBM will provide you breakfast, a series of presentations, lunch, and then even more presentations. Your stomach and brain will be full by the end of the day. Here is a list of the presentations:
I almost sprayed coffee all over my screen when I read this post from fellow blogger from EMC Mark Twomey on his StorageZilla blog titled [Dead End]. In it he implies that you should only consider storage technologies based on x86 technologies such as those from Intel, not other CPU technologies like POWER or MIPS.
When IBM first came out with the SAN Volume Controller in 2003, we were able to show that adding Intel-based SVC nodes can improve the performance and functionality of POWER-based DMX boxes from EMC. EMC salesmen often retorted with "Yes, but do you really want to risk your mission-critical data going through an Intel-based processor solution?" This FUD implied that Intel had a bad reputation for quality and reliability. The original Symmetrix were based on Motorolla 68000's but they modernized to use IBM's POWER chips in their later models. EMC's previous attempt to use Intel technology was their EMC Invista, a commercial failure. It is no surprise then that EMC DMX customers are scared to death to move their mission critical data over to Intel-based V-max.
I have found the primary reason people fear Intel-based solutions is their experience with poorly-written Windows programs. There were enough of these poorly-written Windows programs that everyone has either personal experience, or knows someone who has, and that was enough.
It reminds me of the time I was in Vac, Hungary, giving a lab tour to a set of prospective clients where we manufacture the DS8000 series and SAN Volume Controller. Rows and rows of beautiful Hungarian women sliding disk drives in place, and big hefty Hungarian beefcake moving the finished units to their appropriate places. The head of the facility explained all about the hardware technology, how we check and double check all of the equipment individually, and together as a system. One client stated "Yes, but how often are problems from the hardware? We find nearly all of our problems on disk systems from whichever storage vendor we buy from are in the microcode." It's true.
Both Intel-based processors and POWER-based processors have all the technological functions needed to run storage systems. The difference is all in the microcode. So, if you are looking for safe and stable microcode, the IBM System Storage DS8700 continues its POWER-based tradition for compatibility with previous models. For those that demand x86-based units, the IBM SAN Volume Controller has been around since 2003, the XIV Storage System has been in production since 2005, and our IBM N series are also Intel-based, running Version 7 of the ONTAP operating system.
This week I am blogging from beautiful Caesars Palace hotel in Las Vegas, Nevada to report on what I see and hear at the
28th annual Data Center Conference. Today was simply registration, which opened at 4pm, and I was able to get my conference backpack, badge, and details of the week.
Already, I can tell there will be more people here, and it looks like the economy is on the rebound versus last year. Here are my
posts from 12 months ago when I attended this conference in 2008:
This year, we will have the IBM Portable Modular Data Center (PMDC) with XIV and iDataPlex inside, as well as several subject matter experts joining me at the solution center. Look for us in the "Hunter Green" shirts.
This week I am at the Data Center Conference 2009 in Las Vegas. There are some 1700 people registered this year for this conferece, representing a variety of industries like Public sector, Services, Finance, Healthcare and Manufacturing. A survey of the attendees found:
55 percent are at this conference for the first time.
18 percent once before, like me
15 percent two or three times before
12 percent four or more times before
Plans for 2010 IT budgets were split evenly, one third planning to spend more, one third planning to spend about the same, and the final third looking to cut their IT budgets even further than in 2009. The biggest challenges were Power/Cooling/Floorspace issues, aligning IT with Business goals, and modernizing applications. The top three areas of IT spend will be for Data Center facilities, modernizing infrastructure, and storage.
There are six keynote sessions scheduled, and 66 breakout sessions for the week. A "Hot Topic" was added on "Why the marketplace prefers one-stop shopping" which plays to the strengths of IT supermarkets like IBM, encourages HP to acquire EDS and 3Com, and forces specialty shops like Cisco and EMC to form alliances.
Day 2 began with a series of keynote sessions. Normally when I see "IO" or "I/O", I immediately think of input/output, but here "I&O" refers to Infrastructure and Operations.
Business Sensitivity Analysis leads to better I&O Solutions
The analyst gave examples from Alan Greenspan's biography to emphasize his point that what this financial meltdown has caused is a decline in trust. Nobody trusts anyone else. This is true between people, companies, and entire countries. While the GDP declined 2 percent in 2009 worldwide, it is expected to grow 2 percent in 2010, with some emerging markets expected to grow faster, such as India (7 percent) and China (10 percent). Industries like Healthcare, Utilities and Public sector are expected to lead the IT spend by 2011.
While IT spend is expected to grow only 1 to 5 percent in 2010, there is a significant shift from Capital Expenditures (CapEx) to Operational Expenses (OpEx). Five years ago, OpEx used to represent only 64 percent of IT budget in 2004, but today represents 76 percent and growing. Many companies are keeping their aging IT hardware longer in service, beyond traditional depreciation schedules. The analyst estimated over 1 million servers were kept longer than planned in 2009, and another 2 million will be kept longer in 2010.
An example of hardware kept too long was the November 17 delay of 2000 some flights in the United States, caused by a failed router card in Utah that was part of the air traffic control system. Modernizing this system is estimated to cost $40 billion US dollars.
Top 10 priorities for the CIO were Virtualization, Cloud Computing, Business Intelligence (BI), Networking, Web 2.0, ERP applications, Security, Data Management, Mobile, and Collaboration. There is a growth in context-aware computing, connecting operational technologies with sensors and monitors to feed back into IT, with an opportunity for pattern-based strategy. Borrowing a concept from the military, "OpTempo" allows a CIO to speed up or slow down various projects as needed. By seeking out patterns, developing models to understand those patterns, and then adapting the business to fit those patterns, a strategy can be developed to address new opportunities.
Infrastructure and Operations: Charting the course for the coming decade
This analyst felt that strategies should not just be focused looking forward, but also look left and right, what IBM calls "adjacent spaces". He covered a variety of hot topics:
65 percent of energy running x86 servers is doing nothing. The average x86 running only 7 to 12 percent CPU utilization.
Virtualization of servers, networks and storage are transforming IT to become on big logical system image, which plays well with Green IT initiatives. He joked that this is what IBM offered 20 years ago with Mainframe "Single System Image" sysplexes, and that we have come around full circle.
One area of virtualization are desktop images (VDI). This goes back to the benefits of green-screen 3270 terminals of the mainframe era, eliminating the headaches of managing thousands of PCs, and instead having thin clients rely heavily on centralized services.
The deluge in data continues, as more convenient access drives demand for more data. The anlyst estimates storage capacity will increase 650 percent over the next five years, with over 80 percent of this unstructured data. Automated storage tiering, ala Hierarchical Storage Manager (HSM) from the mainframe era, is once again popular, along with new technologies like thin provisioning and data deduplication.
IT is also being asked to do complex resource tracking, such as power consumption. In the past IT and Facilities were separate budgets, but that is beginning to change.
The fastest growing social nework was Twitter, with 1382 percent growth in 2009, of which 69 percent of new users that joined this year were 39 to 51 years old. By comparison, Facebook only grew by 249 percent. Social media is a big factor both inside and outside a company, and management should be aware of what Tweets, Blogs, and others in the collective are saying about you and your company.
The average 18 to 25 year old sends out 4000 text messages per month. In 24 hours, more text messages are sent out than people on the planet (6.7 billion). Unified Communications is also getting attention. This is the idea that all forms of communication, from email to texts to voice over IP (VoIP), can be managed centrally.
Smart phones and other mobile devices are changing the way people view laptops. Many business tasks can be handled by these smaller devices.
It costs more in energy to run an x86 server for three years than it costs to buy it. The idea of blade servers and componentization can help address that.
Mashups and Portals are an unrecognized opportunity. An example of a Mashup is mapping a list of real estate listings to Google Maps so that you can see all the listings arranged geographically.
Lastly, Cloud Computing will change the way people deliver IT services. Amusingly, the conference was playing "Both Sides Now" by Joni Mitchell, which has the [lyrics about clouds]
Unlike other conferences that clump all the keynotes at the beginning, this one spreads the "Keynote" sessions out across several days, so I will cover the rest over separate posts.
Continuing my week in Las Vegas for the Data Center Conference 2009, I attended a keynote session on Service Management. There were two analysts that co-presented this session.
One analyst was the wife of a real CEO, and the other was the wife of a real CIO, so the two analysts explained that there was a langauge gap between IT and business. Use the analogy of a clock, business is concerned with the time shown on the front face is correct and ticking properly, but behind the scenes, the gears of the clock, represent IT, finance, supply chain and other operations.
Based on recent surveys, there is a 45 percent "alignment" between the goals of CEO and the goals of a CIO. CEOs are concerned about decision making, workforce productivity, and customer satisfaction. CIOs on the other hand are worried about costs, operations and change initiatives. Both CEOs and CIOs are focused on innovations that can improve business process. Service management strives to shorten the language gap between business and IT, by helping to drive operational excellence that benefits both CEO and CIO goals. Recent surveys found the key drivers for this are controlling costs, improving customer satisfaction, availability, agilty and making better business decisions.
Unfortunately, in this economy, the idea of "transformation" is out, and "restructuring" is in. In much the same way that employees have abandoned career development in favor of simple job preservation, companies are focused on tactical solutions to get through this financial meltdown, rather than launching transformation projects like deploying Service Management tools.
How much influence does the CIO have on running the rest of the business? Various surveys have found the following, ranked from most influential to least:
5-9 percent, Enterprise Leader
15-18 percent, Trusted Ally
25-32 percent, Partner
27-35 percent, Transactional
7-20 percent, At Risk
The bottom rank not only have little or no influence, but are at risk of losing their jobs. Evaluations based on a Maturity model finds many I&O operations in trouble, 11 percent taking some pro-active measures, 59 percent committed to improvement, and 30 percent aware of the problems.
IT Service Management tries to bring a similar discipline as Portfolio Management and Application Lifecycle Management. Why can't IT be treated like any other part of the business portfolio? What is the business value of IT? IT can help a business run, grow and even transform. IT can help consolidate and centralize shared services to help leverage resources and offer cost optimizations not just for itself, but for the business as a whole.
CIOs that can adopt IT Service Management can have a "Jacks or Better" chance for a seat at the executive table to help drive the business forward.
Jeff Garten, a professor of International Trade at the Yale School of Management covered the Post-Crisis Global Economy. How well did the world's governments do? Here was his "scorecard" of the five "R's":
Jeff gives world governments an "A", pumping about $20 trillion US dollars onto the world stage to stave off the worst impacts.
Jeff gives an "I" (Incomplete). Not quite an "F" as government regulations just have not been adopted to address situations like this.
Jeff gives this one an "I" also. The major inbalance is US borrowing so much from China, and China keeping its currency artificially low.
Jeff gives this a "B". Banks and other financial services have changed the way they do business and have taken some corrective actions on their own, often because strings attached to bailout funds.
Jeff gives this one a "C+", in that he is not hopeful for a quick recovery. Economists have five recovery models. A quick recovery has a "V" shape. A slower full recovery has a "U" shape. Some recoveries have premature upticks followed by a second crash, representing a "W" shape. Japan still has not recovered from their crash from last decade, like an "L" shape. Jeff feels that the United States will probably have a "reverse J" where it looks like a slow "U" shaped recovery over the next three years, but we never get back to our original prominence.
Jeff did not give the impression the worst was over. Rather, he felt there were still problems ahead, banks are still carrying a lot of bad debt and real estate industry may take a while to recover. He feels the era of a dollar-centric world that started circa 1945 is over, and that the dollar will continue to decline for several decades. Replacing this will be a combination of the Euro, Japanese Yen and Chinese Yuan.
What can we look forward to? There is a definite shift to Asia and other large emerging markets like Brazil. The "Global Commons" like food and energy are under severe stress. Global rules will go under a sort of remission. A resurgence of National governments to protect citizens is underway. Finally, there will be a return of Industrial policy.