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Power Systems and IBM i2Q Launch OverviewMay 6, 2014Steve FierCertified POWER SystemSales

The Power Systems StrategyLeadership and innovation to support today’s core business applications and next-generation solutions withstrong financial benefits, industry leading support and a highly skilled and vibrant ecosystemNext Gen AppsBig Data &AnalyticsOpen Platformfor ChoiceOpenPOWERConsortiumInnovationClient Valuethat MattersPower Charter2 2014 IBM CorporationCommunityEngagement

Power Systems by the numbers. 9.8B2014 WW Unix Market-3.3%-3.3% growthgrowth 56%2013 Power SystemsUnix ShareRollingRolling fourfour quarterquartersharethroughshare through 4Q4Q 20132013(IDC)(IDC)3 2014 IBM Corporation 6.9B44,7612014 WW Linux Market** excludingexcluding LinuxLinux serversservers 6K 6KTotal Power Clients1.1%1.1% growthgrowth overover 20132013(GMV2H13)(GMV2H13)39%2013 Unix LinuxPower Share** excludingexcluding LinuxLinux serversservers 6K 6KRollingRolling fourfour quarterquarter sharesharethroughthrough 4Q4Q 20132013 (IDC)(IDC)ClientsClients spendingspending 1,-4.4%vs-4.4% vs 20132013(MD(MD Team)Team)2%2013 Power SystemsLinux Share** excludingexcluding LinuxLinux serversservers 6K 6KRollingRolling fourfour quarterquarter sharesharethrough4Q2013through 4Q 2013 (IDC)(IDC)

Conditioning the market for a new generation of systemsOpen2Q13 Power SystemsLinux Centers:Beijing, Austinand NYC KVM support forPower (SOD)3Q13 OpenPOWERFoundation 1B IBMInvestment inLinux on Power Power SystemsLinux Center:Montpellier PowerLinux 7R4 Cognos BI onLinux on PowerData4Q13 PowerEnterprisePools DB2 BLUAccelerationSolution PowerIntegratedFacilities forLinux Power SystemsLinux Center:TokyoCloud1Q14Culminating in: OpenPOWER:Samsung andSuzhouPowerCore PowerDevelopmentCloud SoftLayerIntegration withPower (SOD)SuzhouA newgenerationof IBMPowerSystemsSOD for 2Q Watson4 IBM Corporation 2014 2014 IBM Corporation4

The OpenPOWER FoundationThe goal of the OpenPOWER Foundation is to create an open ecosystem,using the POWER Architecture to share expertise, investment, andserver-class intellectual property to serve the evolving needs of customers.- Opening the architecture to give the industry the ability to innovate acrossthe full hardware and software stack Simplify system design with alternative architecture Includes SOC design, Bus Specifications, Reference Designs, FW OS and HypervisorOpen Source Little Endian Linux to ease the migration of software to POWER- Driving an expansion of enterprise-class hardware and software stack forthe data center- Building a complete ecosystem to provide customers with the flexibility tobuild servers best suited to the Power architecture5 IBM Corporation 2014 2014 IBM Corporation5

OpenPOWER Foundation is growing a communityPlatinum MembersMember and Pipeline Diversity across the ecosystemTechnologyFabIBMChipSoC DevIP OpenSourceSoftwareLinuxISVOpen SourceWeb 2.0Internet DataCenter CloudHigh upercomputer CentreVeriSiliconKey:Founding MembersNew Members since announceSK HynixInspurZTE100 inquiries and active dialogues underway6 IBM Corporation 2014 2014 IBM Corporation6

The Power Charter: Commitment to IBM iInnovationthatMattersHYClient ValueCommunityEngagement7 Extend new capabilities based on value of IBM i integration Embrace mobile applications to transform client experience Balance existing client investments with new cloud deployment models Enable rapid innovation and ROI, while leveraging existing IT investments Lower IT costs through simplicity while delivering leading availability andsecurity Deliver premier client experience with enhanced Power support andservices Foster social media technical interchange venues for the IBM i community Engage with key client communities and industry advisory councils Build future skills via investment in university partnerships and programs 2014 IBM Corporation

IBM i Business 100,000s of systems in 100,000 enterprises 115 countries Cross industry solutionsWholesale DistributionFinanceComputer ServicesRetailInsuranceConsumer Package odging 2014 IBM CorporationConstructionHealthcareAssociationsLegal Services8Travel & TransportationLocal GovernmentAccounting Services

Extending the value of Systems of RecordExternalized &Externalizing ServicesPartners, Suppliers,Customers, MarketsSystems of RecordAnalytics/Data ServicesMobile Access9 2014 IBM Corporation

POWER8 – A signature moment in the industry POWER8 is a transformational technology––– Launching the first POWER8 systems: the best Scale-outsystems in the industry– 1010Opening up the world of LinuxNew value in System Software stackSolutions – Open innovation that matters–––– Linux on Power – a new approachSystem Software: Delivering the intelligent IT infrastructureto support Cloud, Big Data, Analytics & Mobile–– Designed for data and analytics, delivering significantly moreperformance than x86Delivering cloud efficienciesOpen innovationCan your infrastructure do this? (50x, 25x, .)Expanded portfolio of applicationsOptimized solutions for CAMSData, Analytics, Java, a client’s Linux solutionEnterprise Pools – transforming Enterprise IT for the Cloud 2014 IBM Corporation

Power Processor Technology RoadmapPOWER9POWER8POWER5/5 130/90 nm Dual Core Enhanced Scaling SMT Distributed Switch Core Parallelism FP Performance Memory Bandwidth Virtualization Eight Cores On-Chip eDRAM Power-Optimized Cores Memory Subsystem Dual Core SMT High Frequencies Reliability Virtualization VSM & VSX Memory Subsystem Protection Keys Altivec Instruction Retry Dynamic Energy Mgmt SMT Protection Keys200411POWER6/6 65/65 nmPOWER7/7 45/32 nm 2014 IBM Corporation20072010 More Cores SMT Reliability FPGA Support Transactional Memory PCIe Acceleration 200 systems in test2014 Extreme AnalyticsOptimization Extreme Big DataOptimization On-chip accelerators

Scale-out Systems - DCMs and POWER8 Chips1S & 2S servers use DCM (Dual Chip Module) 1 DCM fills 1 socket . Similar to POWER7 750 / 760 1 DCM has two Scale-out POWER8 chips 1 DCM can provide 6-core, 8-core, 10-core or 12-core socketsLocal SMP LinksAcceleratorsTotal: 48MBFine Grained Power Management On Chip power managementExcellent I/O bandwidth per socket12 2014 IBM CorporationRemote SMP LinksPCI Gen 3 Links6-core Processor Chip 362 mm2 22nm SOI w/ eDRAMStrengthen Cores 8 Threads per CoreCaches D Cache: 64KB L2: 512KB L3: 8 MB per RegionCoreCoreCoreL2L2L28M L3RegionL3 Cache & Chip InterconMemCtrlL2L2L2CoreCoreCore

POWER8 Memory Buffer ChipDRAMChipsMemoryBufferDDR InterfacesIntelligence Moved into Memory Scheduling logic, caching structures Energy Mgmt, RAS decision point– Formerly on Processor– Moved to Memory Buffer“L4 cache”Processor Interface 9.6 GB/s high speed interface More robust RAS “ On-the-fly” lane isolation/repairPerformance Value End-to-end fastpath and data retry (latency) Cache latency/bandwidth, partial updates Cache write scheduling, prefetch, energy13 2014 IBM Corporation16MBScheduler &POWER8MemoryManagement Cache Link

POWER8 Memory OrganizationDRAMChipsMemoryBuffer128GB16MB128GBUp to 8 high speed channels,Up to 8 GB/s per channelUp to 192 GB/s 28GB16MB16MB128GBPOWER8 DCM Up to 1 TB / Socket First POWER8 Systems: 512 GB /Socket14Up to 32 total DDR portsUp to 410 GB/s 2014 IBM Corporation

POWER8 Integrated PCI Gen 3POWER8Native PCIe Gen 3 SupportPOWER7 Direct processor integrationReplaces proprietary GX/BridgeLow latencyGen3 x16 bandwidth (32 GB/s)Transport Layer for CAPI ProtocolGXBus Coherently Attach Devices connect toprocessor via PCIeProtocol encapsulated in PCIePCIe Gen3I/OBridgePCIe Gen2PCIDevices15 2014 IBM CorporationPCIDevice

POWER8 CAPI (Coherent Accelerator Processor Interface)Virtual Addressing Accelerator can work with same memory addresses that theprocessors use Pointers de-referenced same as the host application Removes OS & device driver overheadPOWER8POWER8Coherence BusHardware Managed Cache Coherence Enables the accelerator to participate in “Locks” as a normalthread Lowers Latency over IO communication modelCustomHardwareApplicationPSLFPGA or ASICPCIe Gen3Transport for encapsulated messagesProcessor Service Layer (PSL) Present robust, durable interfaces to applications Offload complexity / content from CAPPCustomizable HardwareApplication Accelerator Specific system SW, middleware, or user application Written to durable interface provided by PSL16 2014 IBM CorporationCAPP

Possible Example: CAPI Attached Flash strategy()iodone()20KInstructionsLVMstrategy()Pin buffers,Translate,Map DMA,Start I/OInterrupt,unmap,unpin,IodoneschedulingPosix AsyncI/O Style APIaio read()aio write()User Libraryiodone()Disk & Adapter DDApplication 500InstructionsSharedMemoryWork Queue Attach flash memory to POWER8 via CAPI coherent Attach Issues Read/Write Commands from applications to eliminate 97% of instruction path length– CAPI Flash controller Operates in User Space Saves 10 Cores per 1M IOPs17 2014 IBM Corporation

Power System Roadmap20132014Enhanced HMCManagementKVMPowerVCPowerVPPowerLinux EnginesEnterprisePools4U Systems: S814 & S8242U System: S8222U Linux: S822L & S812L18 2014 IBM CorporationPOWER8

Power April Announcements New Scale-Out Servers with POWER8 technology– 2U servers: 2 socket– 4U servers: 1 socket and 2 socket Linux-only server models(Not called “PowerLinux”)– 2U servers: 1 socket & 2 sockets New Virtualization Management– IBM PowerKVM – Kernel Virtual Machine– PowerKVM for Linux-only servers New HMC Functionality–Performance Monitoring19 2014 IBM Corporation

1&2 Socket Servers New Scale-Out Servers with POWER8 technology– 1 socket :– 2 socket:4U2U and 4US814S822 and S824 Linux-only Power Systems– 1 socket:– 2 socket:2U2U(Not called “PowerLinux”)S812LS822LMarketing name “socket” then “numberEIA/U”For example S8 2But 20 2014 IBM Corporation4

IBM i4U ServerIBM i2U Server21 2014 IBM Corporation

POWER8 1S4U LayoutPCIe Gen3 x84x 1Gbt Enet2x SAS PortsPCIe Gen3 x162xUSB-3MemoryPOWER8Up to18 SFF Bays2xUSB-3Slim DVD22 2014 IBM CorporationMemoryNo SSD Cage2xHMC1xSerial2xUSB-2

POWER8 2S4U LayoutPCIe Gen3 x84x 1Gbt Enet2x SAS PortsPCIe Gen3 x16PCIe Gen3 x16Memory2xUSB-3MemoryPCIe Gen3 x8POWER8MemoryPOWER8SSD Bays *Up to18 SFF Bays2xUSB-3Slim DVD23 2014 IBM Corporation* with backplane2xHMC1xSerial2xUSB-2

POWER8 1S4U Scale-Out SystemPower S814 Form Factor: 4U or Tower Single Socket Cores:6 (3.0 GHz) or 8 (3.7 GHz) Memory:Up to 512 GB Slots:7 PCIe Gen3 Full-high (Hotplug) Ethernet: Quad 1 Gbt / (x8 slot) Integrated ports: USB (4/5), Serial (1), HMC (2) Internal Storage DVD 12 SFF Bays -- Split Backplane: 6 6 or 18 SFF Bays with Easy Tier with 7GB write cache Hypervisor: PowerVM OS: AIX, IBM i (P10 software tier), Linux3 Yr Warranty24 2014 IBM Corporation

POWER8 2S4U Scale-Out SystemPower S824 Single Socket Cores: Memory: Slots:populated6 (3.8 GHz) or 8 (4.1 GHz)Up to 512 GB7 PCIe Gen3 full-high (Hotplug)Both Sockets populated Cores:12 (3.8 GHz), 16 (4.1 GHz), or 24 (3.5 GHz) Memory:Up to 1 TB Slots:11 PCIe Gen3 full-high (Hotplug) Ethernet: Quad 1 Gbt / (x8 slot) Integrated ports: USB (4/5), Serial (1), HMC (2) Internal Storage DVD 12 SFF Bays -- Split Backplane: 6 6 or 18 SFF bays & 8 SSD bays with Easy Tier with 7GB write cache Hypervisor: PowerVM OS: AIX, IBM i (P20 software tier), Linux25 2014 IBM Corporation3 Yr Warranty