Mainframe Server delivers Smart Computing for mid-size clients.

Press Release Summary:

Designed to consolidate workloads from hundreds of x86 servers, zEnterprise 114 (z114) is powered by up to 14 MPUs. Up to 10 of these can be configured as specialty engines designed to integrate new Java, XML, and Linux applications and technologies with existing workloads as well optimize system resources. To help simplify data centers, z114 can manage workloads across mainframe, POWER7, and System x servers as single system.

Original Press Release:

New IBM zEnterprise Mainframe Server Advances Smarter Computing for Companies and Governments in Emerging Markets and Mid-size Clients around the World


-- New z114 designed to consolidate workloads from hundreds of x86 servers
-- Costs 25% less and offers up to 25% performance improvements over IBM z10 BC Servers
-- High-end mainframe features now available at entry level price of $75,000
-- Ability to manage workloads on select System x blades now available
-- Designed to deliver Smarter Computing capabilities

IBM (NYSE: IBM) today announced a new server -- a powerful version of the IBM zEnterprise System that's the most scalable mainframe ever -- to extend the mainframe's innovation and unique qualities to more organizations, especially companies and governments in emerging markets in Asia, Africa and elsewhere.

The new IBM zEnterprise 114 mainframe server follows the introduction of the zEnterprise System for the world's largest banks, insurance companies and governments in July 2010. The new server, which allows mid-sized organizations to enjoy the benefits of a mainframe as the foundation for their data centers, costs 25%(1) less and offers up to 25%(2) percent more performance than its predecessor, the System z10 BC server. It is projected that clients can consolidate workloads from 40 x-86 processors running Oracle software on to a new z114 with just three processors running Linux,(3) and over a three year period, total costs for hardware, software and support on the new z114 as compared to consolidated servers can be up to 80% less with similar dramatic savings on floor space and energy(3).

At a starting price of under $75,000 -- IBM's lowest ever price for a mainframe server -- the zEnterprise 114 is an especially attractive option for emerging markets experiencing rapid growth in new services for banking, retail, mobile devices, government services and other areas. These organizations are faced with ever-increasing torrents of data and want smarter computing systems that help them operate efficiently, better understand customer behavior and needs, optimize decisions in real time and reduce risk.

IBM also introduced new features that allow the zEnterprise System to integrate and manage workloads on additional platforms. New today is support for select System x blades within the zEnterprise System. These select System x blades can run Linux x86 applications unchanged, and in the future will be able to run Windows applications. With these capabilities, the zEnterprise System including the new z114 can help simplify data centers with its ability to manage workloads across mainframe, POWER7 and System x servers as a single system. Using the zEnterprise Blade Center Extension (zBX), customers can also extend mainframe qualities, such as governance and manageability, to workloads running across multiple platforms.

IBM System z servers are also making inroads in emerging markets like Africa. Governments and businesses in Cameroon,Senegal and Namibia have all recently purchased new IBM mainframe servers.

zEnterprise 114

With the z114, clients can start with smaller configurations and access additional capacity built into the server as needed without increasing the data center footprint or systems management complexity and cost. The new z114 is also designed to consolidate workloads from hundreds of x86 servers.

The z114 is powered by up to 14 of the industry's most sophisticated microprocessors of which up to 10 can be configured as specialty engines. These specialty engines, the System z Application Assist Processor (zAAP), the System z Integrated Information Processor (zIIP), and the Integrated Facility for Linux (IFL), are designed to integrate new Java, XML, and Linux applications and technologies with existing workloads, as well to optimize system resources and reduce costs on the mainframe. For example, using a fully configured machine running Linux for System z, clients can create and maintain a Linux virtual server in the z114 for as little as $500 per year.(4)

The z114 offers up to an 18%(5) performance improvement for processing traditional System z workloads over its predecessor the z10 BC, and up to an additional 25%(6) improvement for microprocessor intensive workloads using compiler enhancements.

The z114 runs all the latest zEnterprise operating systems including the new z/OS V 1.13 announced today. This new version adds new software deployment and disk management capabilities. It also offers enhanced autonomics and early error detection features as well as the latest encryption and compliance features extending the mainframe's industry leading security capabilities.

Additional compliance and encryption features, the result of a multi-year effort from IBM Research, further enhance security with cryptography built into the DNA of System z, by designing hardware with processor and coprocessor based encryption capabilities.

Hybrid Computing

In a move that will further simplify data center management and reduce costs, IBM is also announcing the ability to integrate and manage workload on select IBM System x servers running Linux as part of the zEnterprise System(7). Support for Microsoft Windows on select System x servers will follow.

This capability is delivered through the IBM zEnterprise Unified Resource Manager and the IBM zEnterprise BladeCenter Extension (zBX), which allows customers to integrate the management of zEnterprise System resources as a single system and extend mainframe qualities, such as governance and manageability, to workloads running on other select servers.

The zEnterprise System can now integrate and manage workloads running on tens of thousands of off-the-shelf applications on select general purpose IBM POWER7-based and System x blades as well as the IBM Smart Analytics Optimizer to analyze data faster at a lower cost per transaction and the IBM WebSphere DataPower XI50 for integrating web based workloads.

Up to 112 blades can be integrated and managed as part of zBX. Different types of blades and optimizers can be mixed and matched with in the same BladeCenter chassis.

New Financing Options

IBM Global Financing offers attractive financing options for existing IBM clients looking to upgrade to a z114 as well as clients currently using select HP and Oracle servers.

For current System z clients, IBM Global Financing (IGF) can buy back older systems for cash and upgrade customers to the z114 on a Fair Market Value (FMV) lease, which offers a predictable monthly payment. IGF will remove and recycle these older systems in compliance with environmental laws and regulations and pay clients the fair market value of HP and Oracle-Sun servers. IGF is also offering a 6 month deferral of any hardware, software, services or any combination for clients who wish to upgrade now, but pay later.

IGF is also offering a 0% financing for 12 months on any IBM Software, including IBM middleware for the z114 such as Tivoli, WebSphere, Rational, Lotus and Analytics products.

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(1) $75k starting price for IBM z114 compared to $100k for z10 Business Class announced in October 2008. Price may vary by country. IBM z114 to ship later this quarter.

(2) The z114 will exhibit up to 25% increase for CPU intensive workload as provided by multiple C/C++ compiler level improvements when going from z/OS 1.09 to z/OS 1.12-

(3) Based on consolidation of x86 servers running Oracle software including the cost of the hardware, software license charges, software support, and servers in a 3 year TCA of including discounted z/VM license and support, and hardware maintenance over a 3 year period.

(4) Linux on System z virtual servers can be: Less than $1370 for three years; Less than $460 per year; Less than $1.25 per day. Based on US Enterprise Linux Server pricing. Pricing may vary by country. Model configuration included 10 IFL cores running a mixed workload averaging 31 virtual machines per core with varying degrees of activity. Includes zEnterprise hardware and z/VM virtualization software. Does not include Linux OS or middleware software.

(5) Relative capacity and performance compares at equal software levels as measured by IBM Large System Performance Reference (LSPR) workloads using z/OS® 1.11, Results may vary

(6) The z114 will exhibit up to 25% performance improvement, based on measurements and projections, for CPU intensive workloads when accompanied by multiple C/C++ compiler level improvements going from XL C/C++ V1R9 to V1R12

(7) General availability for select System x blades is expected on 9/26/11.

IBM Global Financing offerings are provided through IBM Credit LLC in the United States and other IBM subsidiaries and divisions worldwide to qualified commercial and government clients. Rates and availability are based on a client's credit rating, financing terms, offering type, equipment type and options, and may vary by country. Non-hardware items must be one-time, non-recurring charges and are financed by means of loans. Some offerings are not available in certain countries. Other restrictions may apply. Rates and offerings are subject to change, extension or withdrawal without notice.

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