Tony Pearson is a Master Inventor and Senior IT Architect for the IBM Storage product line at the
IBM Systems Client Experience Center in Tucson Arizona, and featured contributor
to IBM's developerWorks. In 2018, Tony celebrates his 32th year anniversary with IBM Storage. He is
author of the Inside System Storage series of books. This blog is for the open exchange of ideas relating to storage and storage networking hardware, software and services.
(Short URL for this blog: ibm.co/Pearson )
My books are available on Lulu.com! Order your copies today!
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Tony Pearson receives part of the revenue proceeds from sales of books he has authored listed in the side panel.
Tony Pearson is not a medical doctor, and this blog does not reference any IBM product or service that is intended for use in the diagnosis, treatment, cure, prevention or monitoring of a disease or medical condition, unless otherwise specified on individual posts.
My how time flies. This week marks my 24th anniversary working here at IBM. This would have escaped me completely, had I not gotten an email reminding me that it was time to get a new laptop. IBM manages these on a four-year depreciation schedule, and I received my current laptop back in June 2006, on my 20th anniversary.
When I first started at IBM, I was a developer on DFHSM for the MVS operating system, now called DFSMShsm on the z/OS operating system. We all had 3270 [dumb terminals], large cathode ray tubes affectionately known as "green screens", and all of our files were stored centrally on the mainframe. When Personal Computers (PC) were first deployed, I was assigned the job of deciding who got them when. We were getting 120 machines, in five batches of 24 systems each, spaced out over the next two years. I was assigned the job of recommending who should get a PC during the first batch, the second batch, and so on. I was concerned that everyone would want to be part of the first batch, so I put out a survey, asking questions on how familiar they were with personal computers, whether they owned one at home, were familiar with DOS or OS/2, and so on.
It was actually my last question that helped make the decision process easy:
How soon do you want a Personal Computer to replace your existing 3270 terminal?
As late as possible
I had five options, and roughly 24 respondents checked each one, making my job extremely easy. Ironically, once the early adopters of the first batch discovered that these PC could be used for more than just 3270 terminal emulation, many of the others wanted theirs sooner.
Back then, IBM employees resented any form of change. Many took their new PC, configured it to be a full-screen 3270 emulation screen, and continued to work much as they had before. My mentor, Jerry Pence, would print out his mails, and file the printed emails into hanging file folders in his desk credenza. He did not trust saving them on the mainframe, so he was certainly not going to trust storing them on his new PC. One employee used his PC as a door stop, claiming he will continue to use his 3270 terminal until they take it away from him.
Moving forward to 2006, I was one of the first in my building to get a ThinkPad T60. It was so new that many of the accessories were not yet available. It had Windows XP on a single-core 32-bit processor, 1GB RAM, and a huge 80GB disk drive. The built-in 1GbE Ethernet went unused for a while, as we had 16 Mbps Token Ring network.
I was the marketing strategist for IBM System Storage back then, and needed all this excess power and capacity to handle all my graphic-intense applications, like GIMP and Second Life.
Over the past four years, I made a few slight improvements. I partitioned the hard drive to dual-boot between Windows and Linux, and created a separate partition for my data that could be accessed from either OS. I increased the memory to 2GB and replaced the disk with a drive holding 120GB capacity.
A few years ago, IBM surprised us by deciding to support Windows, Linux and Mac OS computers. But actually it made a lot of sense. IBM's world-renown global services manages the help-desk support of over 500 other companies in addition to the 400,000 employees within IBM, so they already had to know how to handle these other operating systems. Now we can choose whichever we feel makes us more productive. Happy employees are more productive, of course. IBM's vision is that almost everything you need to do would be supported on all three OS platforms:
Access your email, calendar, to-do list and corporate databases via Lotus Notes on either Windows, Linux or Mac OS. Corporate databases store our confidential data centrally, so we don't have to have them on our local systems. We can make local replicas of specific databases for offline access, and these are encrypted on our local hard drive for added protection. Emails can link directly to specific entries in a database, so we don't have huge attachments slowing down email traffic. IBM also offers LotusLive, a public cloud offering for companies to get out of managing their own email Lotus Domino repositories.
Create presentations, documents and spreadsheets on either Windows, Linux or Mac OS. Lotus Symphony is based on open source OpenOffice and is compatible with Microsoft Office. This allows us to open and update directly in Microsoft's PPT, DOC and XLS formats.
Many of the corporate applications have now been converted to be browser-accessible. The Firefox browser is available on Windows, Linux and Mac OS. This is a huge step forward, in my opinion, as we often had to download applications just to do the simplest things like submit our time-sheet or travel expense reimbursement. I manage my blog, Facebook and Twitter all from online web-based applications.
The irony here is that the world is switching back to thin clients, with data stored centrally. The popularity of Web 2.0 helped this along. People are using Google Docs or Microsoft OfficeOnline to eliminate having to store anything locally on their machines. This vision positions IBM employees well for emerging cloud-based offerings.
Sadly, we are not quite completely off Windows. Some of our Lotus Notes databases use Windows-only APIs to access our Siebel databases. I have encountered PowerPoint presentations and Excel spreadsheets that just don't render correctly in Lotus Symphony. And finally, some of our web-based applications work only in Internet Explorer! We use the outdated IE6 corporate-wide, which is enough reason to switch over to Firefox, Chrome or Opera browsers. I have to put special tags on my blog posts to suppress YouTube and other embedded objects that aren't supported on IE6.
So, this leaves me with two options: Get a Mac and run Windows on the side as a guest operating system, or get a ThinkPad to run Windows or Windows/Linux. I've opted for the latter, and put in my order for a ThinkPad 410 with a dual-core 64-bit i5 Intel processor, VT-capable to provide hardware-assistance for virtualization, 4GB of RAM, and a huge 320GB drive. It will come installed with Windows XP as one big C: drive, so it will be up to me to re-partition it into a Windows/Linux dual-boot and/or Windows and Linux running as guest OS machine.
(Full disclosure to make the FTC happy: This is not an endorsement for Microsoft or against Apple products. I have an Apple Mac Mini at home, as well as Windows and Linux machines. IBM and Apple have a business relationship, and IBM manufactures technology inside some of Apple's products. I own shares of Apple stock, I have friends and family that work for Microsoft that occasionally send me Microsoft-logo items, and I work for IBM.)
I have until the end of June to receive my new laptop, re-partition, re-install all my programs, reconfigure all my settings, and transfer over my data so that I can send my old ThinkPad T60 back. IBM will probably refurbish it and send it off to a deserving child in Africa.
If you have an old PC or laptop, please consider donating it to a child, school or charity in your area. To help out a deserving child in Africa or elsewhere, consider contributing to the [One Laptop Per Child] organization.
Are you tired of hearing about Cloud Computing without having any hands-on experience? Here's your chance. IBM has recently launched its IBM Development and Test Cloud beta. This gives you a "sandbox" to play in. Here's a few steps to get started:
Generate a "key pair". There are two keys. A "public" key that will reside in the cloud, and a "private" key that you download to your personal computer. Don't lose this key.
Request an IP address. This step is optional, but I went ahead and got a static IP, so I don't have to type in long hostnames like "vm353.developer.ihost.com".
Request storage space. Again, this step is optional, but you can request a 50GB, 100GB and 200GB LUN. I picked a 200GB LUN. Note that each instance comes with some 10 to 30GB storage already. The advantage to a storage LUN is that it is persistent, and you can mount it to different instances.
Start an "instance". An "instance" is a virtual machine, pre-installed with whatever software you chose from the "asset catalog". These are Linux images running under Red Hat Enterprise Virtualization (RHEV) which is based on Linux's kernel virtual machine (KVM). When you start an instance, you get to decide its size (small, medium, or large), whether to use your static IP address, and where to mount your storage LUN. On the examples below, I had each instance with a static IP and mounted the storage LUN to /media/storage subdirectory. The process takes a few minutes.
So, now that you are ready to go, what instance should you pick from the catalog? Here are three examples to get you started:
IBM WebSphere sMASH Application Builder
Base OS server to run LAMP stack
Next, I decided to try out one of the base OS images. There are a lot of books on Linux, Apache, MySQL and PHP (LAMP) which represents nearly 70 percent of the web sites on the internet. This instance let's you install all the software from scratch. Between Red Hat and Novell SUSE distributions of Linux, Red Hat is focused on being the Hypervisor of choice, and SUSE is focusing on being the Guest OS of choice. Most of the images on the "asset catalog" are based on SLES 10 SP2. However, there was a base OS image of Red Hat Enterprise Linux (RHEL) 5.4, so I chose that.
To install software, you either have to find the appropriate RPM package, or download a tarball and compile from source. To try both methods out, I downloaded tarballs of Apache Web Server and PHP, and got the RPM packages for MySQL. If you just want to learn SQL, there are instances on the asset catalog with DB2 and DB2 Express-C already pre-installed. However, if you are already an expert in MySQL, or are following a tutorial or examples based on MySQL from a classroom textbook, or just want a development and test environment that matches what your company uses in production, then by all means install MySQL.
This is where my SSH client comes in handy. I am able to login to my instance and use "wget" to fetch the appropriate files. An alternative is to use "SCP" (also part of PuTTY) to do a secure copy from your personal computer up to the instance. You will need to do everything via command line interface, including editing files, so I found this [VI cheat sheet] useful. I copied all of the tarballs and RPMs on my storage LUN ( /media/storage ) so as not to have to download them again.
Compiling and configuring them is a different matter. By default, you login as an end user, "idcuser" (which stands for IBM Developer Cloud user). However, sometimes you need "root" level access. Use "sudo bash" to get into root level mode, and this allows you to put the files where they need to be. If you haven't done a configure/make/make install in awhile, here's your chance to relive those "glory days".
In the end, I was able to confirm that Apache, MySQL and PHP were all running correctly. I wrote a simple index.php that invoked phpinfo() to show all the settings were set correctly. I rebooted the instance to ensure that all of the services started at boot time.
Rational Application Developer over VDI
This last example, I started an instance pre-installed with Rational Application Developer (RAD), which is a full Integrated Development Environment (IDE) for Java and J2EE applications. I used the "NX Client" to launch a virtual desktop image (VDI) which in this case was Gnome on SLES 10 SP2. You might want to increase the screen resolution on your personal computer so that the VDI does not take up the entire screen.
From this VDI, you can launch any of the programs, just as if it were your own personal computer. Launch RAD, and you get the familiar environment. I created a short Java program and launched it on the internal WebSphere Application Server test image to confirm it was working correctly.
If you are thinking, "This is too good to be true!" there is a small catch. The instances are only up and running for 7 days. After that, they go away, and you have to start up another one. This includes any files you had on the local disk drive. You have a few options to save your work:
Copy the files you want to save to your storage LUN. This storage LUN appears persistent, and continues to exist after the instance goes away.
Take an "image" of your "instance", a function provided in the IBM Developer and Test Cloud. If you start a project Monday morning, work on it all week, then on Friday afternoon, take an "image". This will shutdown your instance, and backup all of the files to your own personal "asset catalog" so that the next time you request an instance, you can chose that "image" as the starting point.
Another option is to request an "extension" which gives you another 7 days for that instance. You can request up to five unique instances running at the same time, so if you wanted to develop and test a multi-host application, perhaps one host that acts as the front-end web server, another host that does some kind of processing, and a third host that manages the database, this is all possible. As far as I can tell, you can do all the above from either a Windows, Mac or Linux personal computer.
Getting hands-on access to Cloud Computing really helps to understand this technology!
This is a reasonable question. Since Invista 2.0 came out months ago in August, and Invista 2.1 is rumored to be out by end of this month, why put out a press release now, rather than just wait a few weeks? Thesignificant part of this announcement was that EMC finally has their first customer reference.To be fair, getting a customer to agree to be a reference is difficult for any vendor. Some non-profitsand government agencies have rules against it, and some corporations just don't want to be bothered byjournalists, or take phone calls from other prospective customers. I suspect EMC wanted to put the good folks from Purdue University in front of the cameras and microphones before they:
In Moore's terminology, Purdue University would be a "technology enthusiast", interested in exploring the technologyof the EMC Invista. Universities by their very nature often see themselves as early adopters, willing to take big risks in hopes to reap big rewards. The chasm happens later, when there are a lot of early adopters, all willing to be reference accounts. The mainstream market--shown here as pragmatists, conservatives, and skeptics-- are unwillingto accept reference claims from early adopters, searching instead for moderate gains from minimal risks. They prefer references from customers that are similar in size and industry. Whether a vendor can get a product to cross this chasm is the focus of the book.
Why "SAN" virtualization?
Technically, Invista is "storage" virtualization, not "SAN" virtualization. Virtualizationis any technology that makes one set of resources look and feel like a different setof resources, preferably with more desirable characteristics. You can virtualizeservers, SANs, and storage resources.
Virtual SAN (VSAN) technology, supported bythe Cisco MDS 9500 Series Multilayer Director Switch, partitions a single physical SAN into multipleVSANs, allowing different business functions and requirements to share a common physical infrastructure.
How does Invista advance Cisco's VSAN functionality? It doesn't, but that doesn't makethe title a falsehood, or the press release by association full of lies.If you read the entire press release, EMCcorrectly states that Invista is "storage" virtualization. Some storagevirtualization products, like EMC Invista and IBM System Storage SAN Volume Controller (SVC), require a SAN as a platform for which to perform their magic.Marketing people might use the term "SAN" torefer not just the network gear that provides the plumbing, but also to include the storage devices that are attached to the SAN. In that light, theuse of "SAN virtualization" can be understood in the title.
More importantly, it appears that EMC no longer requires that you purchase new SAN equipment from themwith Invista. When the Invista first came out, it cost over a quarter-million US dollars to cover thecost of the intelligent switches, but with the price drop to $100K, I imagine this means theyassume everyone has an appropriately-supported intelligent switch already deployed.
Why this architecture?
In his post [Storage Virtualization and Invista 2.0], EMC blogger ChuckH does a fair job explaining why EMC went in this direction for Invista, and how it is different thanother storage virtualization products.
Most storage virtualization products are cache-based. The world's first disk storagevirtualization product, the IBM 3850 Mass Storage System, introduced in 1974, and thefirst tape virtualization product, the IBM 3494 Virtual tape Server, introduced in 1997, bothused disk cache in front of tape storage. Later virtualization products, like IBM SVC and HDS USP-V, use DRAM memory cache in front of disk storage, but the concept is the same.People are comfortable with cache-based solutions, because the technology is matureand well proven in the marketplace, and excited and delighted that these can offer the following features in a mixed heterogeneous disk environment:
instantaneous point-in-time copy
None of these features are provided by Invista, as there is no cache in the switch. Instead,Invista is a "packet cracker"; it cracks open each FCP packet, inspects and modifies the contents, then passes theFCP packet along to the appropriate storage device. This process slows down each read andwrite by some amount, perhaps 20 microseconds. The disadvantage of slowing down every readand write is offset by having other benefits, like non-disruptive data migration.
To compensate for Invista's inability to provide these features,EMC offers a second solution called EMC RecoverPoint, which is an in-band cache-based appliancesimilar in design to SVC, but maps all virtual disks one-to-one to physical disks. It offersremote distance asynchronous mirroring between heterogeneous devices.EMC supports RecoverPoint in front of Invista, but if you are considering buying bothto get the combined set of features, you might as well buy an IBM SVC or HDS USP-V instead,in one system, rather than two, which is much less complicated. IBM SVC and HDS USP-Vhave both "crossed the chasm" having sold thousands of units to every type and size of customer.
Hopefully, this answers the questions you might have about EMC Invista.
This week I was aboard the Queen Mary in Long Beach, California! This was a business event organized by [Key Info Systems], a valued IBM Business Partner. Key Info resells IBM servers, storage and switches.
The Queen Mary retired in 1967, and has been converted into a hotel and events venue. The locals just parked their car and walked on board, but I got to stay Tuesday through Thursday in one of the cabins. It was long and narrow, with round windows! There were four dials for the bathtub: Cold Salt, Hot Fresh, Cold Fresh, and Hot Salt.
Stepping on the boat was like walking back in time through history! If you decide to go see it, check out the [Art Deco bar at the front of the Promenade deck. The ship is still in the water, but is permanently docked. It is sectioned off to prevent the ocean waves from affecting it, so we did not have the nauseous moving back and forth normally associated with cruise ships.
(It is with a bit of irony that we are on the Queen Mary just days after the tragedy of the [Costa Concordia], the largest Italian cruise ship that ran aground near Isola de Giglio. The captain will have to explain how he [fell into a lifeboat] before he had a chance to wait for everyone else to get safely off the shipwreck. He was certainly no [Captain Sulley]! I am thankful that most of the 4,200 people survived the incident.)
Lief Morin, Founder and Chief Executive for Key Info Systems, kicked off the meeting with highlights of 2011 successes. I have known Lief for years, as Key Info comes to the Tucson EBC on a frequent basis. This event was designed to give his sellers an update of what is the latest for each product line, and what to look forward to in the next 12-18 months.
The next speaker was from Vision Solutions that provides High Availability solutions for IBM i on Power Systems. In 2010, their company nearly doubled in size with the acquisition of Double-Take, which provides data replication for x86 servers running Windows, Linux, VMware, Hyper-V and other hypervisors. The capabilities of Double-Take sounded similar to what IBM offers with [Tivoli Storage Manager FastBack] and [Tivoli Storage Manager for Virtual Environments].
Dinner at Sir Winston's
Rather than take the "Ghosts and Legends" tour, I opted for dinner at the Queen Mary's signature restaurant, Sir Winston's. This is a fancy place, so dress accordingly. If you want the Raspberry soufflé, order it early as it takes 30 minutes to prepare!
[Storwize V7000], including the new Storwize V7000 Unified configuration
Storage is an important part of the Key Info Systems revenue stream, so I was glad to have lots of questions and interactions from the audience.
Murder Mystery Dinner
The acting troupe from [Dinner Detective] put on quite the show for us! With all that is going on in the world, it is good to laugh out loud every now and then.
In other murder mystery dinners I have participated in, each person is assigned a "character" and given a script of what to say and when to say it. This was different, we got to pick our own characters. I chose "Doctor Watson", from the Sherlock Holmes series. Several attendees thought it was a double meaning with [IBM Watson], the computer that figured out the clues on Jeopardy! television game show, and has since been [put to work at Wellpoint] to help out the Healthcare industry.
After the "murder" happened, two actors portraying policemen selected members of the audience to answer questions. We didn't get a script of what to say, so everyone had to "ad lib". I was singled out as a suspect, and had fun playing along in character. One of the attendees afterwards said he was impressed that I was able to fabricate such amusing and elaborate responses to their personal and embarassing questions. As a public speaker for IBM, I have had a lot of practice thinking quickly on my feet.
Fibre Channel and Ethernet Switches
The next two speakers gave us an update on Fibre Channel and Ethernet switches, and their thoughts on the inevitability of Fibre Channel over Ethernet (FCoE). One of the exciting new developments is the [Brocade Network Subscription] which creates a flexible pay-per-use Ethernet port rental model for customers. This is especially timely given the Financial Accounting Standards Board proposed [FASB Change 13] that affects operating leases in the balance sheet.
With the Brocade Network Subscription, you pay monthly for the ports you are using. Need more ports, Brocade will install the added gear. Use fewer ports, Brocade will take the equipment back. There is no term endpoint or residual value like tradtional leasing, so when you are done using the equipment, give it back any time. This is ideal for companies that may need to have a lot of Ethernet ports for the next 2-3 years, but then plan to taper down, and don't want to get stuck with a long-term commitment or capital depreciation.
The last speaker was from VMware. IBM is the #1 reseller of VMware, and VMware commands an impressive 81 percent marketshare in the x86 virtualization space. The speaker presented VMware's strategy going forward, which aligns well with IBM's own strategy, to help companies Cloud-enable their existing IT infrastructures, in preparation for eventual moves to Hybrid or Public cloud deployments.
Special thanks to Lief Morin for sponsoring this event, Raquel Hernandez from IBM for coordinating my travel, and Pete, Christina and Kendrell from Key Info Systems for organizing the activities!
An avid reader of this blog pointed me to a blog post [A Small Tec DIGG on IBM XIV], byGowri Ananthan, a System Engineer in Singapore.Basically, she covers past battles, er.. discussions between me and fellow blogger BarryB from EMC, and [blegs] foranswers to three questions.
Gowri, here are your answers:
Q1. Does IBM offer a Pay-as-you-Go [PAYGO] upgrade path for its IBM XIV disk storage system?
The concern was expressed as:
PAYGO also requires the customer to purchase the remaining capacity within 12 months of installation. So it is More of a 12-month installment plan than pay-as-you-grow.
A1. Actually, IBM offers several methods for your convenience:
With IBM's Capacity on Demand (CoD) plan, you get the full framewith 15 modules installed on your data center floor, but only pay for the first four modules 21 TB, then pay for 5.3TB module increments as you need them over the next 12 months. This is ideal for companies that don't know how fast they will grow, but do not want to wait for new modules to be delivered and installed when needed.
With IBM's Partial Rack offering, you can get a system with as little as six modules (27TB),and then over time, add more modules as you need. This does not have to be done within 12 months, you can stay at six modules for as long as you like, and you can take as long asyou want to add more modules. When you are ready for more capacity, the drawer or drawerscan be delivered, and installed non-disruptively.
Neither of these are "payment installment plans", but certainly if you want to spread yourcosts into regularly-scheduled monthlypayments across multiple years, IBM Global Financing can probably work something out.
Q2. Does IBM consider the XIV as green storage?
The concern was expressed as:
You are powering (8.4KW) and cooling all 180 drives for the whole duration, whether you're using the capacity or not. is it what you called Greener power usage..?
A2. Yes. IBM considers the IBM XIV as green storage. The 8.4KW per frame is lessthan the 10-plus KW that a comparable 2-frame EMC DMX-950 system would consume. Theenergy savings in IBM XIV comes from delivering FC-like speeds using slower SATA disks that rotate slower, and therefore take less energy to spin.
In the fully-populated or Capacity on Demand configuration, you would spin all 180disks. However, using the partial rack configuration, the 6-module has only 40 percent ofthe disks, and therefore consumes only 40 percent of the energy. If you don't plan to storeat least 20-30 TB, you might consider the DS3000, DS4000, DS5000, or DS8000 disk system instead.
Q3. How do you connect more than 24 host ports to an IBM XIV?
The concern was expressed as:
And finally do not forget my question on 24-FC Ports… Up to 24 Fiber Channel ports offering 4 Gbps, 2Gbps or 1 Gbps multi-mode and single-mode support.Stop.. stop.. how you gonna squeeze existing bunch of FC cables in 24 ports?
A3. Best practices suggest that if you have ten or more physical servers, each with two separate FC ports, then you should use a SAN switch or director in between. If you require four ports per server, then you would need a SAN switch beyond six servers to connect to the IBM XIV. If you consider that 24 FC ports, at 4Gbps, represents nearly 10 GB/sec of bandwidth, you will recognize that this is not a performance bottleneck for the system.
This week I am in Japan, so my week's theme will center around travel, speaking at conferences, and Japan itself. I first travelled to Japan in the late 1980s, to visit a college friend who was working for Ford Motor Company, on assignment in Japan as liasion to Mazda Corp.
Back then, the only Japanese phrase I knew was "Wakarimashta" which means "I know" or "I understand". If you only know one phrase in a foreign language, this possibly could be the worst to know.
My second trip, I was better prepared. I learned three "survival phrases":
sumimasen - "I'm sorry/excuse me" hanashimasen - "I don't speak" wakarimasen - "I don't know / I don't understand"
These are great phrases to know individually, but even more powerful strung all together, to emphasize that you will begin speaking English, but at least with good reason (and perhaps a bit of irony.)
I've been to Japan many times since, and have picked up more of the language. When travelling to Japan, or anywhere for that matter, it is important to "pack light". I'll be gone for two weeks, but all I bring is a laptop bag and one carry-on piece of luggage.
I went on a trip to Prague (Czech Republic) with a female co-worker who brought FOUR pieces of luggage. One was just for shoes. Another piece was just for hair styling gel, make-up, face creams and finger nail polish. Today, the rules are different, and the TSA allows only a single quart-size plastic bag containing little jars of 3 ounces or less of liquids or gels. I didn't have any "quart-size" bags, so I used a smaller sandwich-size bag.
What does all this have to do with storage? I've helped many clients move data centers, and this involves moving their servers, their networks, and their storage. Servers and Networks are easy to move, but storage presents some challenges. In many cases, the entire company is shut down, the storage is moved, and then the company is operational again. Needless to say, it is best to do this over a weekend.
I tell clients to "pack light" and figure out what data they really need in the move. What do you really need to operate your business? Bring just that, the rest can arrive later.
This same concept applies for Business Continuity and Disaster Recovery planning. What do you really need after a disaster occurs? Can you run your business for a few weeks on that data, until the rest of the data is restored? If you can't run your entire business on that data, can you run your most important parts of your business?
If you run a bank, perhaps keeping your ATM cash machines running is more important than making out new loans. In Japan, if a bank has any outages that impact their ATM machines, they put out a full page advertisement in the local papers to apologize for the inconvenience.
Business Continuity is one of the nine "Infrastructure Solutions" that IBM can help clients with. If you are interested in learning more on how IBM can help you with your Business Continuity, click here.
This week I'm in beautiful Guadalajara, Mexico teaching at our[System Storage Portfolio Top Gun class].We have all of our various routes-to-market represented here, including our direct sales force, our technicalteams, our online IBM.COM website sales, as well as IBM Business Partners.Everyone is excited over last week's IBM announcement of [4Q07 and full year 2007 results], which includesdouble-digit growth in our IBM System Storage business, led by sales of our DS8000, SAN Volume Controller and Tapesystems. Obviously, as an IBM employee and stockholder, I am biased, so instead I thought I would provide someexcerpts from other bloggers and journalists.
But what was striking in the company’s conference call on Thursday afternoon was the unhedged optimism in its outlook for 2008, given the strong whiff of recession fear elsewhere.
The questions from Wall Street analysts in the conference call had a common theme. Why are you so comfortable about the 2008 outlook? Now, that might just be professional churlishness, since so many of them have been so wrong recently about I.B.M. Wall Street had understandably thought, for example, that I.B.M.’s sales to financial services companies — the technology giant’s largest single customer category — would suffer in the fourth quarter, given the way banks have been battered by the mortgage credit crunch.
But Mr. Loughridge said that revenue from financial services customers rose 11 percent in the fourth quarter, to $8 billion. The United States, he noted, accounts for only 25 percent of I.B.M.’s financial services business.
The other thing that seems apparent is how much I.B.M.’s long-term strategy of moving up to higher-profit businesses and increasingly relying on services and software is working. Its huge services business grew 17 percent to $14.9 billion in the quarter. After the currency benefit, the gain was 10 percent, but still impressive. Software sales rose 12 percent to $6.3 billion.
Looking at IBM's business segments, it can be seen that they offer far more coverage of the technology space that those of the typical tech company:
IBM is just so big and diversified that there is little comparison between it and most other tech companies. IBM is a member of an elite group of companies like Cisco Systems (CSCO), Microsoft (MSFT), Oracle (ORCL) or Hewlett-Packard (HPQ).
IBM's wide international coverage and deep technological capabilities dwarf those of most tech companies. Not only do they have sales organizations worldwide but they have developers, consultants, R&D workers and supply chain workers in each geographic region. Their product mix runs from custom software to packaged enterprise software, hardware (mainframes and servers), semiconductors, databases, middleware technology, etc., etc. There are few tech companies that even attempt to support that many kinds and variations of products.
As color on the fourth quarter earnings announcement, there are a couple of observations that I would like to make. The first one speaks to IBM's international prowess. The company indicated that growth in the Americas was only 5%. International sales were a primary driver of IBM's good results. As an insight on the difference between IBM and most other tech companies, it is clear that nowadays, a tech company that isn't adept at selling internationally is going to be in trouble.
Terrific performance in a terrific year - no doubt a result of its strong global model. IBM operates in 170 countries, with about 65% of its employees outside US and about 30% in Asia Pacific. For fiscal 2007, revenues from Americas grew 4% to $41.1 billion (42% of total revenue), [EMEA] grew 14% to $34.7 billion (35%of total revenue), and Asia-Pacific grew by 11% to $19.5 billion (19.7% of total revenue). IBM sees growth prospects not just in [BRIC] but also countries like Malaysia, Poland, South Africa, Peru, and Singapore.
Thus far 2008–all two weeks of it–hasn’t been a pretty for the tech industry. Worries about the economy prevail. And even companies that had relatively good things to say like Intel get clobbered. It’s ugly out there–unless you’re IBM.
I am sure there will be more write-ups and analyses on this over the next coming weeks, and others will probably waituntil more tech companies announce their results for comparison.