On-demand computing is IBM’s latest mantra. The company recently launched iSeries boxes that are the first products to incorporate on-demand capabilities. Prashant L Rao analyses IBM’s enterprise server strategy and the iSeries’ role in it

A few years back, before IBM reinvented its UNIX line with the Regatta, its AS/400 servers filled the gap between Intel servers and mainframes. When IBM drew up its multi-year strategy for the pSeries that ultimately resulted in the Regatta, it also drew up a roadmap to differentiate the iSeries from the pSeries. In the last couple of years it has added features to the iSeries that let it run Windows and Linux applications. Now, as part of a $500 million campaign, IBM has made significant changes including temporary capacity on demand and a shift to Power 4.

Now you use it, now you don’t
There’s nothing new about capacity on demand per se. Server vendors offer boxes with some processors switched ‘off’ and enable them when the customer decides that he needs greater capacity. What’s unique about IBM’s iSeries is that the latest machines feature temporary capacity on demand. They let you switch a chip ‘on’ and, once the peak period is over, switch it ‘off’. That’s where the ‘temporary’ bit comes in. “No other vendor offers this ‘on-off’ capability,” says Nipun Mehrotra, brand executive, e-Server iSeries, ASEAN/SA.

With this capability, customers can size their servers to their average load and switch processors on only during usage spikes. This could be month-end in an ERP set-up or a demand surge in the retail business in the festival season. Capacity on demand is available on the i825, i870 and i890 servers. The i825 starts with 6 processors, 3 of which can be switched on when required.
All server majors are trying to solve the problem of excess capacity that is common when companies buy servers based on their peak usage. Vendors have different strategies to address the problem. Sun, for instance, is trying to solve the problem at the data centre level with N1. IBM, in the iSeries, is attempting to solve the problem at the server level.

Power 4 inside
IBM is moving its iSeries line onto the Power 4 processor, also used in its UNIX server line. The latest iSeries models share Power 4 processors with Big Blue’s pSeries Unix servers. All of IBM’s server lines barring the Intel-based X series will move onto the Power processor family in the next few years. The Power 4 is the only commercial dual core processor on the market right now and it has found its niche in two very different markets—powering Nintendo game consoles and IBM’s high-end servers. Earlier the top-end Power4 chip was only available on the 32-processor i890, now it’s also present in the 8 or 16 processor i870 and the 6 processor i825. Once HP switches to Itanium, IBM and Sun will be the only vendors with their own processors. By consolidating its server lines onto the Power 4, IBM will end up with a large enough market to justify its investments in making processors.

iSeries for SMEs
IBM has added 1- and 2-way models, the i800 and i810, to the iSeries line up. The single processor i800 has a ‘value edition’ offering an integrated e-business server with Linux and Windows support in addition to OS/400. This is a single CPU machine, starting with 35 GB and going up to 4 TB of disk and up to 8 GB of memory. The i800 starts from $10,000 (sub 10 lakhs in India) and i810 from $22,000. “We acquired 40 new customers in India in 2002,” says Ashish Jasuja, country manager, iSeries, IBM India. That number should increase in 2003 with the company’s push at the lower-end of the enterprise segment.

One server to run them all
The iSeries is positioned for mix-and-match workloads where customers need to run Windows and UNIX applications. It runs Java, Windows NT, AIX and Linux (SuSE, RedHat and Turbo; 32 and 64-bit). 200 customers have implemented xSeries (Intel servers running NT) on the iSeries. In such scenarios, the iSeries box is used to run the Core Banking or ERP while the xSeries adapters are used to run credit card, insurance and data mining applications. “If an xSeries adapter goes down, it takes only a few seconds to shift the workload to another,” says Mehrotra.

Hundreds of Linux and WebSphere applications were added last year. iSeries machines are meant for the transaction-processing niche. They let you manage multiple environments from a single console. IBM calls them the ‘centre of the data centre’. Pricing begins at $10,000 and tops out at $10-20 million with 2 and 4 processor configurations being the most widely used.

Software bundles and improved performance
ERP, SCM and CRM have been the biggest vertical from a historical standpoint. These servers also sell into BFSI for core banking. Industrial, retail and distribution are other verticals. Domino is popular in India on this platform. Most ERP applications including SAP and JD Edwards are available for the iSeries.

Bundling application software with servers is rapidly becoming a trend, Sun does it with Sun ONE, IBM is offering WebSphere—Express, Lotus QuickPlace and Sametime, DB2 and Tivoli—as part of its enterprise edition software bundle.
For customers who use iSeries for traditional iSeries workloads, IBM claims that the new models offer price-performance improvement up to 40-50 percent for larger customers. “For new workloads like SAP, JDE OneWorld there can be up to 15-20 percent price-performance improvements,” adds Jasuja.

Will customers bite?
While IBM has been on a roll in the Intel server segment, it has been fighting an uphill battle in the non-SIAS space. The rejuvenated iSeries will be a useful addition to Big Blue’s arsenal as it takes on Sun and HP. iSeries customers are loyal, 99 percent are repeat buyers. The challenge now is to win over new accounts from the competition. Introducing the ‘on-off’ capability in the iSeries is IBM’s way of dipping a toe in the water and testing the response to its latest initiative—on-demand computing.