Power Systems Announcement Highlights October 2012

1. Power Systems Announcement HighlightsOctober 2012 IBM CONFIDENTIAL

2. Introducing the new enterprise Power Systems the engine for dynamic efficiency and business analytics • Power Systems have always focused on delivering outstanding performance along with the business needs of application choice, enterprise integration, IT efficiency, and data availability and security – enabling your business to achieve outstanding business performance and compute performance. We describe this as Power is Performance Redefined! • Businesses have consistently chosen Power over competition for more than a decade. Why? Our clients have told us that their applications and databases run best on Power. They’ve voted with their IT investments – in fact, we’ve had 2,700 competitive migrations to Power since Q1 2010 – and Power has moved from #4 to #1 in Unix revenue share over the last decade. • With the new POWER7+ technology, the result of $1.4B in R&D, IBM extends this value to help enterprises transform the value they deliver and improve their customer experience through compute intensive & information-centric computing. Today’s announcement is designed to help you meet the new demands of information-centric IT through three key capabilities – dynamic efficiency, business analytics, assured compliance

3. New Enterprise class Power key announcements – Cloud • Cloud – Dynamic efficiencyMake IT a driver of business growth and deliver superior IT economics with dynamic, scalable resource allocation and rapid response to changes in application and workload requirements • Power Systems Solution Edition for Cloud enables rapid deployment of a scalable cloud that is optimized for maximum asset utilization • PowerVM Virtualization Performance Advisor (VIOS performance advisor) proactively provides performance optimization recommendations enabling clients to provide higher qualities of service • Elastic Capacity on Demand for Power System Pools gives clients the flexibility and cost of a public cloud with the security and resilience of an enterprise Power Systems data center • PowerVM enhancements deliver improved flexibility by allowing VM granularity to 5% of a core and 20 VMs per core. • Performance improvements for PowerVM Live Partition Mobility enable faster response to changing business needs by improving single VM movement by up 3X and can concurrently migrate partitions up to 4.7X faster than previous releases. Doubling concurrent migrations on a single server from 8 to 16.

4. New Enterprise class Power key announcements – Data • Data – Business analyticsProvide business insight and deliver services faster with servers optimized for big data, compute intensive applications, and built-in availability • AIX Solution Editions for Cognos and SPSS enable rapid deployment of business and predictive analytics • Elastic Capacity on Demand for Power System Pools enables sharing of resources across a pool of systems improving availability and ensuring access to resources during planned and unplanned maintenance activities • PowerHA HyperSwap offers continuous data access in the event of storage outages, enabling storage maintenance & migration without downtime • POWER7+ processors & architecture improve on their industry-leading performance delivering 20-40% more performance, and are ideal for big data and business analytics workloads

5. New Enterprise class Power key announcements – Security • Security – Assured complianceDeliver services with higher quality on systems that have zero reported virtualization vulnerabilities with policy based compliance to ensure data security and a compliant environment • PowerSCalong with Trusted Surveyor delivers policy-based security compliance reporting and provides real-time alerts for compliance violations. Real-time alerts can also be sent to advanced security analytics systems such as IBM Q1 Radar • Hardware assisted encryption delivers faster file encryption for AIX with POWER7+ reduces the performance overhead normally associated with encryption and decryption

6. Power Systems

7. Benefits of eDRAM for POWER7+ With eDRAM Without eDRAM 2.1B Transistors 567 mm2 5.4B Transistors 950 mm2 • IBM’s eDRAM Benefits: • Greater density: 1/3 the space of 6T SRAM implementation • Less power requirements: 1/5 the standby power • Fewer soft errors: Soft Error Rate 250x lower than SRAM • Better Performance

8. POWER7+ Encryption Accelerator • Client Benefits • Can be applied to a broader set of data creating a stronger security ecosystem • POWER7+ core focused on application performance. • Two primary AIX security applications: 1) Encrypted File Systems protecting your data in storage or on backup media 2) IPsec protecting your data over the network. • Ensures that the high demand for entropy on a heavily loaded systems always yields high quality random numbers. • RNG offload provides entropy snd security is ensured • Processor performance focused on your applications. • Technology • Crypto Offload Accelerators: • Provide cryptographic engines to relieve the P7+ processor from the performance intensive cryptographic algorithms of AES, SHA, and RSA. • High quality random numbers: • Generated with high performance with the RNG offload feature of the P7+ processor.

9. P7+ RAS Specific Features • New Power On Reset Engine (PORE) • Enables a processor to be re-initialized while system remains up and running • Directly used to: • Allow for Concurrent Firmware Updates: In cases where a processor initialization register value needs to be changed • L3 Cache dynamic column repair • New self-healing capability that complements cache line delete • Uses PORE feature to remove a substitute a failing bit-line for a spare during run-time. • New Fabric Bus Dynamic Lane Repair • POWER7+ has spare bit lanes that can dynamically be repaired (using PORE) • For Busses that connect CEC drawers • Avoids any repair action or outage related to a single bit failure.

10. Work done with software Work done by hardware accelerator Benefit of POWER7+ HW Accelerator POWER7 Act Mem Exp CPU Time • Less CPU for the same amount of memory expansion • Can then run more partitions or work per partition • If fewer cores needed, may result in lower software licensing • OR more memory expansion for the same amount of processor • Better able to relieve memory shortages and improve performance • May be able to do more work POWER7+ Act Mem Exp CPU Time Work of compress / decompress Work of compress / decompress Work of managing pages Work of managing pages CPU TIME

11. Active Memory Expansion – Client Deployment Steps Same for POWER7+ as for POWER7 servers 2 1 3 60-Day Trial (no charge) Planning Tool (AMEPAT) Deploy into Production • Part of AIX 6.1 TL4 • Calculates data compressibility & estimates CPU overhead due to Active Memory Expansion • Provides initial recommendations • One-time, temporarily enablement • Config LPAR based on planning tool • Use AIX tools to monitor Act Mem Exp environment • Tune based on actual results • Permanently enable Active Memory Expansion • Deploy workload into production • Continue to monitor workload using AIX performance tools Actual Results Estimated Results Performance CPU Utilization CPU Utilization App. Performance Time Memory Expansion Memory Expansion Memory Expansion

12. IBM Power 770 with POWER7+ processors Enhancing the industry’s most popular mid-range server with better performance, availability and efficiency • IBM extends performance leadership with POWER7 • P7+ drives per core performance with faster clock speeds • (20% performance improvement for most workloads) • P7+ increases L3 cache by 2.5X compared to P7 • P7+ improves memory compression by adding hardware assist • P7+ improves AIX file encryption by adding hardware assist • P7+ delivers twice the Single Precision Floating Point performance • GX buses deliver even more I/O bandwidth • New RAS features improve system availability • Self-healing capability for L3 Cache functions • ECC support on systems fabric bus • Processor can be re-initialized while remaining up & running • Concurrent firmware updates will be more prevalent • Virtualized efficiency continues to improve • New power gating techniques reduce energy consumption • Minimum partition size reduced to 1/20th of a processor core • Increased number of concurrent partition migrations • Dynamic Platform Optimizer optimizes virtualization • environment • Continued Modular Scalability • POWER6 & 7 Upgrades • Flexible Capacity on Demand • Faster Live Partition Mobility • Enhanced PowerVM • Improved Energy Efficiency • Increased system performance

13. What’s new with the Power 770

14. What’s new with the Power 780

15. Enhancing the Power 795 Integrated Bus & I/O adapter Power System Pool Enhanced CoD Initial Elastic CoD (On/Off ) Processor / Memory days included with all new 795s 16TB Memory 20 LPAR/core • New 64GB DIMM support will enable the Power 795 to utilize up to 16TB of memory • New hybrid I/O adapters that deliver Gen2 I/O connections directly out of the processor book, reducing the need for I/O drawers and expansion racks for I/O intensive application environments • No-charge Elastic CoD (On/Off) processor and memory days included with all new Power 795 configurations • PowerVM will enable up an 20 LPARs per core to increase granularity in support of Cloud deployments • A Power System Pool of enterprise Power servers will leverage CoD enhancements to extend aspects of Power Flex to a broader range of clients and simplify delivery – including enabling clients to manage allocation of their virtual processor and memory resources across a pool to maintain availability, balance workload and increase resource utilization FW Release 795 15

16. Elastic CoD (On/Off) now built into every high-end Power server Purchased - Power 795 or 780 w/128 cores Receive – 1,920 (15 days x 128 cores) processors days Receive – 30,720 GB (15 x 240GBs) memory days All new Power 780+ / 795s include Elastic CoD processor and memory days for no-charge • Fifteen (15) processor days for every processor ordered (active or inactive) • Two hundred & forty (240) GBs of Elastic CoD Memory days for every processor ordered • Only available at time of initial ship or model upgrade MES • Elastic CoD processor and memory days will be kept as a credit by IBM Usage of Elastic CoD resources • No restrictions apply to how clients use the Elastic CoD resources • TCoD contract must be signed prior to receiving TCoD Enablement code • Enablement code is ordered via an MES • Reports of usage of Elastic CoD resources will be sent to IBM on monthly basis • Usage will be debited to clients account on a quarterly basis and a report will be sent providing the Elastic CoD account status • Normal billing occurs when all the client’s Elastic CoD Processor and memory days credits are exhausted • Example: 16

17. CoD Enhancement: 90-Day Enablement x 90 • 90-Day Elastic Temporary Enablement keys …. • For 770/780 “D” models and for 795 (new or existing) • One key for processors (#EP9T), one key for memory (#EM9T) • No-charge to enable …… will pay later if temporarily activate resource • MES order only. Can not be ordered with initial server order. • Firmware 7.6 is pre-req • For all processor cores or memory not permanently activated for 90 days • Implemented as 90 times the number of processors or 90 times the GB memory which are not permanently activated. • Earlier models enable a fixed number of processor-days/memory-days (different number for memory or processors). If usage high, fixed number has the logistical hassle of running low at an inconvenient time and potentially needing to emergency reorder • New 90-day approach more simple and enables a quantity which will last at least 90 days. (and may last a lot more …up to a calendar year… if Elastic CoD usage is modest.) • You could also choose to order every 90 days (no-charge) to guarantee you never ran out if logistically you prefer

18. Introducing Power System Pools for Power 780 and 795 Easily deliver compute resources to where they are required in order to achieve the highest levels of flexibility and business resiliency • New option to create pools of high end Power Systems servers that allows sharing of processor and memory resources in support of planned maintenance events • Available on Power 795 and 780 with POWER7+ based processors • Simplified Elastic Capacity on Demand enablement delivers utility-like compute capacity on a much larger scale • Elastic Capacity on Demand resources may be purchased and billed for a pool • Aggregate days across the pool • Purchase pre-paid credit days for the pool 18

19. Workload Optimization Workloads and system are becoming more complex Mix of single threaded and multithreaded applications Workload consolidation and interdependencies Increased number of cores and threads Workload mobility introduces added complexity and fragments resources Deep technology knowledge needed to manage these issues Expectations are that systems should just “work” New approaches to system performance are needed that address both operating system and server optimization Dynamic Platform Optimizer Both are design to reduce the complexity and time required for clients to manage and tune their systems DPO optimizes processor and memory affinity in virtualized consolidated environments Available as a feature of the new Power 770 & 780 (Firmware, not software) 19

20. Operating Systems • IBM AIX operating system: • AIX Version 7.1 TL02AIX Version 7.1 Tl01 SP 6, or later (planned availability December 19, 2012)AIX Version 7.1 TL00 SP 8, or later (planned availability December 19, 2012)AIX Version 6.1 TL08, or later AIX Version 6.1 TL07 SP 6, or later (planned availability December 19, 2012)AIX Version 6.1 TL06 SP 10, or later (planned availability December 19, 2012) • AIX 5.3 TL12 Statement of Direction • IBM i operating system IBM i 7.1 TR5, or later; required if the primary OS is IBM IBM i 6.1 with machine code 6.1.1, or later • All I/O must be virtual (I/O provided through either IBM i 7.1 or VIOS) • Can not be ordered as the primary OS with feature number 0566 • If installing Linux:Red Hat Enterprise Linux 6.3 for POWER, or laterRed Hat Enterprise Linux 5.7 for POWER, or laterSUSE Linux Enterprise Server 11 Service Pack 2, or later, with current maintenance updates available from SUSE to enable all planned functionality • If installing VIOS: VIOS 2.2.2.0VIOS 2.2.1.5 (planned availability December 19, 2012)

21. 4Q 2012 I/O Announcements Enhanced EXP30 Ultra SSD I/O Drawer POWER7+ 770/780 support, additional RAS, downstream HDD, higher performance Power 795 -- new Gen2 I/O options Highly compact, cost effective, high function GX adapters (future SRIOV support) 16Gb Fibre Channel & 10Gb Fibre Channel over Ethernet (FCoE) (future SRIOV support) New PCIe Gen2 Adapters for PCIe Gen2 Slots 2-port 16Gb Fibre Channel - First 16Gb adapter for Power (future SRIOV support) 4-port 10Gb FCoE - Twice the ports of existing Gen1 FCoE adapter (future SRIOV support) IBM i enhanced to support additional I/O Lower priced Async adapter RDX support - high performance, low cost entry tape alternative USB or SATA attachment support Statement of Direction for EXP30 Ultra SSD I/O Drawer support 900/856GB 10k rpm HDD - 50% more disk capacity in the same space Slim Rack for POWER7 rack models - more efficient floor space use Expanded RoCE Adapter support - supported on more models, with more OS support and with more function HMC support of Power Blades - delivering on SDMC transition plans

22. Power 795 & PCIe Gen2 Function • Two new PCIeGen2 GX++ adapters • 16 Gb Fibre Channel • 10 Gb FCoE/CN • Plugs directly into GX++ slot on the processor card • Innovative, highly compact packaging • Combines GX adapter + GX cables + PCIe I/O drawer + PCIe adapter into just one new 2-port GX adapter • Can save money, space, energy/cooling, maintenance • 2-ports of high performance capability • Access to full bandwidth of GX++ bus (up to 20 GB/s peak) • Max 3 adapters per processor book • Can be in any of the 4 GX slots • Can mix and match Gen1 and Gen 2 in same processor book

23. I/O Differences between C and D models • No difference in system unit I/O … same PCIe Gen2 slots, multifunction card, and integrated SAS controller, BUT …. • No SCSI disk support on D models. Was supported on C. 770/780 selection consideration for clients planning to use old SCSI 3.5-inch disk on new server (probably IBM i clients if any). SCSI disk would be found in #5786 EXP24 I/O drawer and run by SCSI PCI-X adapter with cache (see SOD from April 2012). SCSI tape/optical remains supported. • New EXP30 Ultra SSD I/O Drawer (#EDR1) announced for 770/780 D models under AIX.. #EDR1 has great performance and wonderful footprint density. • Native IBM i I/O support using IBM i 7.1, but no native IBM i 6.1 support of I/O on POWER7+. IBM i 6.1 can be client partition and be provided I/O linkages through either IBM i 7.1 or VIOS. Note communications adapters #2893/2894 or cryptographic adapters can’t be virtualized. • Max quantity of disk drives higher for D models vs C models …. 3024 vs 1344. Max number of SSD also increased, but not as dramatically.

24. POWER7+ System Model Upgrades – You can get there! Upgrades from POWER6, POWER6+ & POWER7 POWER7 780 POWER7 770 9117-MHC 9117-MMC • POWER6 upgrades to POWER7+ • POWER6+ upgrades to POWER7+ • POWER7 upgrades to POWER7+ POWER7 780 POWER7 770 Power 770 Power 780 9117-MHB 9117-MMB 9117-MMD 9117-MMD POWER6 570 POWER6 570 9117-MMA 9117-MMA

25. POWER7+ continues to deliver morePerformance per Watt >5X increase in performance per watt over POWER6+ >10X increase in performance per watt since POWER5+ >10 years of changing the server landscape rPerf per KWatt

26. Virtualize, Consolidate, Save Still on POWER5? You can dramatically reduce your energy usage, floor space, software license costs, maintenance costs AND increase your performance and capacity POWER7 770+ • 18 cores @ 4.2 GHz • 60% utilization • 30% effective capacity increase • Reduce energy usage by 90% • Save ~$600k over 3 years in maint. • Save >$1M in database license Two POWER5 590 systems • 64 cores @ 2.1 GHz • 30% utilization Power 780 • POWER7 technology • 64 cores @ 3.8 GHz • 6,400 watts • 80 virtualization • 40% more performance • Payback ~ 12-15 months POWER7 770+ • 18 cores @ 4.2 GHz • 60% utilization • 50% effective capacity increase • Reduce energy usage by 84% • Save ~$250K over 3 years in maint. • Save >$1M in database license Four POWER5 570 systems • 64 cores @ 1.9 GHz • 30% utilization And still have room to consolidate x86 workloads! * Based on US list price at announce IBM CONFIDENTIAL

27. Software & Solutions

28. IBM PowerVM v2.2.2 What’s New Up to 20 VMs per Core Support Shared Storage Pools Improvements (16 nodes, rolling maintenance) 3X Live Partition Mobility Performance Improvement VIOS Performance Advisor Features / Business Value 20 VMs per core / increased flexibility SSP Improvements / better scalability & flexibility LPM Performance Improvements / increased flexibility VIOS Performance Advisor / proactively monitors VIO Server Client Benefits Reduce IT costs by consolidating diverse workloads Optimize utilization of IT resources to improve service and boost ROI Scale virtualized workloads without performance penalties Eliminate scheduled downtime by using live mobility between servers PowerVM provides the industrial-strength virtualization solution for IBM Power Systems which deliver superior economics by consolidating virtualized workloads. PowerVM Express Edition • Single VIOS • 2 VMs per Server PowerVM Standard Edition • Shared Processor Pools • Shared Storage Pools • Thin Provisioning • Suspend/Resume PowerVM Enterprise Edition • Live Partition Mobility • Active Memory Sharing Learn More: http://www-03.ibm.com/systems/power/software/virtualization/index.html

29. New!! VIOS Performance Advisor CPU Section Snapshot • Proactive VIOS Health Check • Provides Advise on how to Tune the VIO Server Before Problems Occur • Shipped with PowerVM 2.2.2 • Reports are viewed with a web browser • Can be use as a historical measure of performance

30. PowerVM – Shared Storage PoolsExtending Storage Virtualization Beyond a Single System • New Enhancements v2.2.2 • Support for 16 Nodes which increases scalability • IPv6 and VLAN tagging(IEEE802.1Q) support for inter node communication. This gives clients more options for deployment • Cluster reliability and availability improvements • Improved storage utilization statistics and reporting • Support for rolling maintenance upgrades which avoids outages. Storage Pool SSP – clustered storage virtualization • Next generation vSCSI • Storage pool spans multiple VIOS’s and servers • Enabler for federated management • Location transparency Base capabilities Supports SAN , IBM and non-IBM Storage

31. PowerVM Editions are tailored to client needs • PowerVM Express Edition • Evaluations, pilots, PoCs • Single-server projects • PowerVM Standard Edition • Production deployments • Server consolidation • PowerVM Enterprise Edition • Multi-server deployments • Cloud infrastructure **FW7.6 Prereq Q4 2012 Features

32. IBM PowerSC v1.1 What’s New PowerSC Trusted Surveyor Support for HIPAA Compliance Automation Profile Real-time Compliance Monitoring Features / Business Value Trusted Logging / Compliance and Audit Trusted Boot / Security compliance Trusted Network Connect and Patch Management / Security compliance Trusted Surveyor / Monitors Network Security Compliance Security Compliance Automation / Reduces labor to comply Real-time Compliance Monitoring / Improves violation detection Client Benefits Simplifies management and measurement of security and compliance Reduces cost of security and compliance Improves the audit capability to satisfy reporting requirements Provides assurance that virtual networks are matching security policies Reduces cost of compliance to HIPAA standard Improves detection and reporting of security exposures PowerSC provides a security and compliance solution to protect data centers virtualized with PowerVM enabling higher quality services. PowerSC Express Edition • Security Compliance Automation • HIPAA Compliance Profile • Real-Time Compliance PowerSC Standard Edition • Security Compliance Automation • Trusted Boot • Trusted Logging • Trusted Network Connect PowerSC Trusted Surveyor Learn More: http://www-03.ibm.com/systems/power/software/security/

33. PowerSC – Trusted Surveyor New Offering!! Challenge: Demonstrate compliance to network segregation policies. Where are my virtual systems? are they secure and isolated properly. PowerSC solution: Compare current state of VM virtual network segregation to defined desired policy. Reports on configuration drift. How PowerSC Trusted Surveyor works: • Discovers the virtual infrastructure via the HMC • Builds a realization model which is compared to the saved state or policy • Displays a map showing items that have changed and are out of compliance • Logical model can be exported into flat file for documentation and can be consumed by other tools. • Provides visibility to show segregation of virtual networks to prove compliance • Lower Admin costs by automating compliance reporting • Independent audit and governance of virtualized infrastructure • Ensure consistent and safe configuration changes 33

34. PowerSC OfferingsSecurity and Compliance Options • PowerSC Express • Basic compliance automation for AIX (formerly IBM Compliance Expert) • PowerSC Standard • Security and compliance for virtual & cloud environments • PowerSC Trusted Surveyor • Virtual network segregation compliance monitoring ** Requires eFW7.4 or higher 34

35. IBM System Director Updates GA Date: December 14, 2012 • Systems Director 6.3.2 & VMControl 2.4.2 • Power Systems Enhancements • Remember to offer the new IBM Implementation Services for IBM Systems Director VMControl Enterprise Edition • Accelerate your implementation with reduced risk

36. PowerHA SystemMirror Enterprise Edition Two distinct options for multi-site deployments Each option provide configurations optimized for customer requirements Stretched Cluster Exploits multicast communications Triple redundant heartbeat Campus/Metro deployments Linked Cluster Enables two sites with independent networks (campus or cross country) Suitable for campus, metro and cross country deployments PowerHA 7.1 Two-Site Solutions Repository Disk Two-Site Stretched Cluster Two-Site Linked Cluster * Future capability

37. Application PowerHA HyperSwap Cluster Metro Mirror Secondary DS8K Primary DS8K PowerHA Enterprise Edition HyperSwap • Multi-Site PowerHA cluster with continuous storage availability • Non-disruptive - applications keep running in the event of a storage outage • Storage maintenance without downtime • Storage migration without downtime

38. IBM Director interface for PowerHA SystemMirror V7 • Included with PowerHA SystemMirror V7 • Masks complexity • Central management • Real-time status • Smart Assist integration • Deployment wizards

39. Power Systems Software – October Content AIX 7.1 TL2, 6.1 TL8 • P7+ Hardware Support • Scaled Throughput by Aggressive SMT4 exploitation • AIX 7 WPAR Enhancements • LPAR to WPAR migration tool • Java JVM shared memory between WPARs • IPV6 support • IPV6 for NFSV3 • WPARs IPV6 for WPAR specific routing • Memory • Enhanced multiple page size support – 16 MB pages • AIX EE content update Linux • Big Data Analytics • New releases of IBM PowerLinux Solutions for InfoSphere BigInsights and InfoSphere Streams • IBM Installation Toolkit V6.0 • IBM Software Developer Toolkit for PowerLinux V1.2 39

40. AIX Enterprise Edition What’s new: AIX EE has been enhanced to provide the Power infrastructure with better security and compliance capabilities, better tools to exploit the Power hardware and software infrastructure and the ability to easily and quickly implement a Power private cloud computing infrastructure. Features / Business Value: Addition of the following software products PowerSC SmartCloud Entry Client Benefits: Simplifies management and measurement of security and compliance Reduces cost of security and compliance Improves quality of services and delivers self-service solutions that help the business grow and reduce costs Improves Power platform performance for DB applications • AIX EE provides the capability to monitor, secure and enhance the optimization and performance of the leading industry UNIX platform

41. IBM Power Systems Solution Edition for CloudPre-built, pre-installed consolidated entry cloud system Built on Power Systems 770+ for the highest reliability, scalability and serviceability Gets clients up and running and proving the value of cloud delivery quickly and easily Leverages Power Systems virtualization foundation for superior utilization, availability and security “One-button” eConfig ordering No risk set up with Lab Services included New! Announce – 10/3 GA – 11/9 • Power 770 Rack Configurations • 32 – 128 cores • 7 – 72 TB V7000 Storage • 1 and 10 GB switch • IBM FC Networking Switch • IBM SmartCloud Entry + prerequisites • Set-up Services Optimized Enterprise QOS Consolidated

42. What’s new: IBM SmartCloud Entry 2.4 now provides heterogeneous cloud management across System X and Power environments, including IBM i Improved usability, time to value & operational efficiency Easily orderable SmartCloud Entry for Power bundle provides the SmartCloud Entry software bundled with the Systems Director pre-requisites in an easily orderable and discounted offering Features / Business Value: Automated management, provisioning and optimization of physical/virtual servers and system pools ensure that your cloud resources are automatically provisioned for optimal utilization Self-service portal and standardized service catalog leverage all the features of your Power Cloud infrastructure to enable automated delivery of requested services without IT intervention Improve performance and scalability by optimizing IT assets based on workload; ensure the ideal elasticity of your cloud Enterprise QoS virtualization capability with higher performance, more scalability and enterprise security provides the best foundation for your cloud High availability solutions for ensuring mission critical applications running in the cloud are always available Improved operational efficiency with seamless cloud management across System x and Power system platforms Client Benefits: Do more with less—reduce capital expenditures and operational expenses Reduce risk—ensure the right levels of security and resiliency across all business data and processes Deliver higher quality services—improve quality of services and deliver self-service solutions that help the business grow and reduce costs Provide breakthrough agility—increase IT's ability to quickly deliver new services to capitalize on opportunities while reducing costs and managing risk IBM SmartCloud Entry for Power Systems v2.4 – Power (includes SmartCloud Entry for Power Systems bundle) Enhanced Announces: Oct 9 An entry private cloud offering that is simple to deploy and easy to use Learn More: Power Systems Cloud Solutions: http://www-03.ibm.com/systems/power/solutions/cloud/index.html

43. IBM i 7.1 Technology Refresh 5 What’s new: DB2 for i enhancements Navigator for i web based interface BRMS Enterprise functionality added DB2 WebQuery mobility functions SmartCloud Entry Refresh of selected SWG products Features / Business Value: Increasing ease of use and functionality of IBM i Enhanced performance, usability and security for client data in DB2 Features of the latest versions of IBM WebSphere Application Server, WebSphere Commerce and IBM Guardium products Easily acquire and implement cloud solutions with SmartCloud Entry Client Benefits: Enhanced Security protects sensitive business data; addressing industry certifications Ease of system management task with Navigator for i BRMS automation and management using new Enterprise functions SmartCloud Entry allows clients to launch cloud environments as easily as possible Refreshing of SWG products for IBM i provides enhanced functionality and optimization

44. October Announcements : Power Analytics • AIX Solution Edition for Cognos BI (phase 2) • One-button ordering of Cognos Business Intelligence on Power (AAS ordering) • Web tier and data tier software included and pre-installed, pre-configured • AIX Solution Edition processor activation and AIX license Discounts • Targeted customer: SMB • Announce September 11th, GA September 22nd • AIX Solution Edition for SPSS C&DS and Modeler • SPSS C&DS and Modeler for Predictive Analytics • AIX Solution Edition processor activation and AIX license Discounts • Targeted customer: SMB • Announce October 3rd, GA October 25th • IBM PureData System for Operational Analytics • Power 730/740, V7000, 2X data performance. Improvements on higher data node density, higher storage capacity, built-in data redundancy, built-in high availability and very high system scalability. • Targeted customer: SMB to Enterprise • Announce October 9th, GA October 31st • Withdrawal IBM Smart Analytics System 7710 and 7700 • Announce October 9th, GA October 31st

45. IBM PowerLinux Big Data Solution for InfoSphere Streams What’s new: Workload Optimization for IBM PowerLinux Big Data Solution for InfoSphere Streams Features / Business Value: Workload Optimization, including tuning and performance guides as well as deployment recommendations Client Benefits: Supports customers deploying IBM PowerLinux Big Data Solution for InfoSphere Streams and enables them to tune performance for their workloads Enterprises can perform complex real-time analytics on data-in-motion in real-time as it flows into the organization PowerLinux provides a high value, secure, reliable and scalable platform for Streams Workloads at x86 competitive pricing Access to value-add items like SDK, IBM Installation Toolkit, Simplified Setup Tool, Preload, PowerLinux Community Learn More: http://www.ibm.com/systems/power/software/linux/powerlinux/

46. PowerLinux Big Data Solution for InfoSphere BigInsights What’s new: Workload Optimization for IBM PowerLinux Big Data Solution for InfoSphere BigInsights Features / Business Value: Workload Optimization, including tuning and performance guides as well as deployment recommendations IBM PowerLinux™ Big Data Solution for InfoSphere BigInsights is a hardware stack optimized for BigInsights workloads Client Benefits: Supports customers deploying IBM PowerLinux Big Data Solution for InfoSphere BigInsights and enables them to tune performance for their workloads PowerLinux provides a high value, secure, reliable platform for BigInsights workloads at x86 competitive pricing BigInsights workloads are ideal for PowerLinux because IBM’s Java Virtual Machine is specifically optimized for the Power7 architecture. This means the software and hardware stack can be tuned for better performance and results. Learn More: http://www.ibm.com/systems/power/software/linux/powerlinux/

47. What’s new: Provides additional support of Linux releases with new server support for RHEL 6.3 and SLES11 SP2 Simplifies the management of multiple VMs (across multiple servers) as a single entity with VMControl system pools Features / Business Value: Provides single system and virtualization management tool for IBM PowerLinux servers as well as other platforms and hypervisors Reduces hypervisor deployment and management complexity Reduces management complexity of managing virtual resources Improves resource utilization, workload and infrastructure performance Client Benefits: Increases IT productivity, responsiveness, and service Single, simplified management solution for multiple platforms and hypervisors Improves service and SLA’s Reduces complexity, time, and cost Competitively priced to comparable x86 solutions IBM Systems Director and VMControl for IBM PowerLinux Simple, affordable solution for system and virtualization management Learn More: http://www.ibm.com/systems/power/software/linux/powerlinux/

48. New! IBM Installation Toolkit V5.3 What’s new: Support for IBM PowerLinux 7R1 rack server Accessibility enhancements, simplifications to first-boot and enhancements to Look & Feel of tool Features / Business Value: Simplifies Linux installation experience on Power systems Accelerates time to value Client Benefits: Reduces installation and configuration time of Linux and open source infrastructure services on PowerLinux systems Simplifies ‘out of box’ experience for new Linux users, or Linux x86 users • Simplifies and reduces installation time for PowerLinux systems Learn More: http://www.ibm.com/developerworks/power/library/l-power-installation-toolkit/index.html

49. IBM Installation Toolkit V5.3 Client Benefits • Wizard makes installation and configuration quick and easy. Works with new and existing configurations. Can run installations with remote control. Both DVD and network-based installations are supported. Easy-to-use interface for updating system firmware, as well as access to the latest system firmware. This single comprehensive source for all PowerLinux software provides access to IBM Reliability, Availability, and Serviceability (RAS) tools • Bootable rescue DVD for system diagnostics or maintenance on previously installed operating systems. Access to the latest PowerLinux documentation, including an application to easily create and manage network repositories containing Linux and IBM value-added packages. . Key Functions • Easy Linux Installation on Power Systems • Access to the latest firmware and IBM value-add software • Easy management of your computing environment

50. Oct 3 Announce Content GA Dates • 2012 Oct 3 :Announcement • Oct 19 General availability of • POWER7+ 770/780 • (SWGA) AIX 7.1 TL2, AIX 6.1 TL8, IBM i 7.1 TR5 • Linux RHEL 6.3, SLES 11SP2 • EXP30 Ultra SSD I/O Drawer, RoCE adapter, 900/856 GB HDD, RDX docking stations, • Nov 9 Second software GA • (eGA/pGA) AIX 7.1 TL2, AIX 6.1 TL8, IBM i 7.1 TR5 • IBM i 6.1.1 support of POWER7+ 770/780 • eFW 7.6 • PowerVM 2.2.2 (POWER7+ only) • Nov 16 General availability of • Model upgrades into POWER7+ 770/780 • Power 795 GX++ PCIe Gen2 adapters • New rack doors • Elastic CoD • Dec 19 • Other AIX 71. and 6.1 TL levels and VIOS 2.2.1.5 supporting POWER7+ 770/780 • 2013 planned Content • SOD for AIX 5.3 support for POWER7+ 770/780 • CHARM on new “D” model 770/780 February 14, 2013