Capturing value from an open ecosystem - IBM · chose OpenPOWER design for $325M supercomputing contract DOMESTIC IT October. China government endorsed and supported OpenPOWER ecosystem

Capturing value from an open ecosystem

Tom Rosamilia Senior Vice President IBM Systems

© 2015 IBM Corporation

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Forward-Looking Statement Certain comments made during this event and in the presentation materials may be characterized as forward looking under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. These statements by their nature address matters that are uncertain to different degrees. Any forward-looking statement made during this event or in these presentation materials speaks only as of the date on which it is made. The company assumes no obligation to update or revise any forward-looking statements. Those statements involve a number of factors that could cause actual results to differ materially, including the following: a downturn in economic environment and client spending budgets; the company’s failure to meet growth and productivity objectives, a failure of the company’s innovation initiatives; risks from investing in growth opportunities; a failure of the company’s intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; cybersecurity and privacy considerations; fluctuations in financial results, impact of local legal, economic, political and health conditions; adverse effects from environmental matters, tax matters and the company’s pension plans; ineffective internal controls; the company’s use of accounting estimates; the company’s ability to attract and retain skilled personnel and its reliance on critical skills; impacts of relationships with critical suppliers and business with government clients; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; reliance on third party distribution channels; the company’s ability to successfully manage acquisitions, alliances and dispositions; risks from legal proceedings; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company’s Form 10-Qs, Form 10-K and in the company’s other filings with the U.S. Securities and Exchange Commission (SEC) or in materials incorporated therein by reference. Additional information concerning these factors is contained in the Company's filings with the SEC. Copies are available from the SEC, from the IBM web site, or from IBM Investor Relations.

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Fundamental forces are accelerating change in our industry P

rice/

Per

form

ance

Full system stack innovation required

Moore’s Law

Technology alone can no longer provide the price performance gains necessary to sustain Moore’s Law

Hybrid Cloud

Hyperscale Data Centers (Custom Design)

Open Solutions

IT consumption models are expanding to:


Technology and Processors

2000 2020

Firmware / OS Accelerators Software Storage Network

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5 IBMers contributing to Linux and Apache Projects

1999

IBM is investing in ecosystems and open innovation

100+ OpenPOWER-based innovations under way

2015 50k+ IBMers contributing to 150+ open organizations

1. Source: https://developer.ibm.com/start/


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Vibrant ecosystem through open development

Amplified capabilities driving industry

performance leadership

Cloud Computing Hyperscale Data Centers

Domestic IT Agendas

High Performance Computing (HPC)

Delivering technology innovation through OpenPOWER

Delivering technology innovation to capture growth against key market segments

IBM OpenPOWER Strategy

OpenPOWER Foundation Strategy

Accelerated innovation through collaboration

of partners


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Demonstrating rapid progress with OpenPOWER

2013

INCORPORATION December. Incorporated OpenPOWER Foundation and elected officers

PUBLIC LAUNCH April. Public launch of website, members and demonstrations (Tyan and Google planars)

CODE CONTRIBUTION July. IBM, with contributions from Google, released 420,000 lines of firmware code

NEW OFFERINGS October. Multiple offerings made available from Altera, Canonical, IBM, Nvidia, Redis Labs, OVH and Tyan

HIGH PERFORMANCE COMPUTING November. U.S. Department of Energy chose OpenPOWER design for $325M supercomputing contract

DOMESTIC IT October. China government endorsed and supported OpenPOWER ecosystem through the formation of China Power Technology Alliance

INDUSTRY INNOVATION March. OpenPOWER kicks off first Summit •  50+ member

presentations •  10+ product reveals

HIGH PERFORMANCE COMPUTING June. UK Government invests £115M in STFC for Watson and OpenPOWER

5 members 50 members 70 members 115 members

2014

I O I O I O I O I O I O I O I O I O I O I

2015

150 members

INDUSTRY INNOVATION Today. OpenPOWER momentum continues •  1,600 software apps

that have added support for POWER processors

•  Hundreds of systems innovations in development


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Growing ecosystem that delivers open innovation across the stack

Implementation, HPC and Research

Software

System Integration

I/O, Storage and Acceleration

Boards and Systems

Chips and Systems on a Chip


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Monetization of OpenPOWER

•  License chip IP to third-party chip designers (IP income, royalties, chip design services)

•  Design custom white-box

solutions with hyperscale data centers for unique workloads (chip revenue, system design services)

Incorporate OpenPOWER partner innovations into IBM solutions, for example: -  HPC solution for U.S. Dept. of

Energy with Nvidia, Mellanox -  Cloud solution for SoftLayer

with Tyan -  Big Data solution for

Enterprises with Redis

Third-party implementations IBM implementations


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Monetization of OpenPOWER through third-party implementations

Systems and Platforms

Components

Chips

First GPU-accelerated OpenPOWER developer platform

First commercially available OpenPOWER server

RedPower, the first China OpenPOWER 2-socket system

Inspur 2-socket POWER8 Server

ChuangHe China-branded OpenPOWER systems with POWER8

Convey’s CAPI developer kit based on the company’s Xilinx-based co-processors

DMI connection between an Altera Stratix V FPGA accelerator and a POWER8 CPU

New CAPI-based solution: the ConnectX-4 adapter card by Mellanox

Nallatech’s OpenPOWER CAPI Developer Kit

First open server specification and motherboard combining OpenPOWER, OpenCompute and OpenStack

First China “local” POWER derivative chip, CP1


IBM POWER8 chip

GPU = Graphics Processing Unit | DMI = Direct Media Interface | FPGA = Field-Programmable Gate Array | CAPI = Coherent Accelerator Processor Interface

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Accelerator

Accelerator Card

Network Adapter

System Integration (Firmware and Hardware) – Zoom Netcom

Chip – Suzhou PowerCore

A closer look: OpenPOWER custom white-box solution

Key Hardware Components


Ecosystem Components

Key Hardware Components

RedPower

Cloud Open Stack - Masscloud Transwarp

Big Data

KVM – Masscloud

Hypervisor Red Flag Linux OS GBase

Database

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Monetization of OpenPOWER through IBM implementations


Partner Innovations

IBM OpenPOWER Client Solutions

Cloud

Big Data

GPU Acceleration

HPC

Power Bare Metal Offerings

IBM Data Engine for NoSQL

OpenPOWER HPC Server

IBM Power System S824L Server

Bringing innovation into Power Systems

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OpenPOWER positively impacting the Power Systems business

New business model designed to drive incremental sources of revenue and profit

Allows IBM to compete in new and emerging segments

Brings OpenPOWER innovations to new Power Systems


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Questions?


Capturing value from an open ecosystem - IBM · chose OpenPOWER design for $325M supercomputing contract DOMESTIC IT October. China government endorsed and supported OpenPOWER ecosystem

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