IBM Makes Linux On VM A New Utility

On July 1^st, IBM adding Linux Virtual Services under VM to its IBM e-Business On-Demand utility offerings.  There are a number of ways to think about this offering.

First and foremost it’s an answer to customer demand for a way to get a cost-efficient Linux implementation without the need to install Z-series servers or to have (or hire) VM skills.  This aims not just at a customer need, but right at the heart of those Sun anti-IBM Linux on VM campaigns that argue no one has both VM and Linux skills.  You can read our earlier articles on Sun’s opinions at http://www.wohl.com/wa0198.htm and  http://www.wohl.com/wa0211.htm   (We’d have asked Sun for a reaction, but this is the week that Sun and much of the rest of the Silicon Valley is taking a week off in the interest of frugality.)

It allows customers to enjoy the flexibility of buying just as much of the Z environment as you need, while maintaining the ability to scale up (or down), as business needs change.  IBM will, in fact, guarantee up to 10 more capacity for peak periods than the customer’s contract level.

An attractive feature is scalability.  Each virtual server can be scaled up for volume; additional virtual servers can be added for applications growth.

Also appealing to customers:

	No need to invest scarce capital – this scheme only requires lease payments.
	Much faster time to implementation – IBM can have a customer up and running in as little time as a few days; existing customers can have additional capacity in as little as a few hours notice.
	24x7 support is built in
	No steep “knees” – customers can use part of a Z-series or add part of a Z-series without having to commit to the expense of an entire large system.

How is this done?  VM allows a Z-series mainframe to be partitioned, with many instances of Linux running as virtual servers.  IBM is offering to lease these virtual servers (which they call “service units”) plus storage and networking, to provide an on-line, as-you-need-it, computing utility.  If you think this reminds you of long-ago offerings in time-sharing, it should.  But high-speed, cheap networks and much more efficient systems management software make this much more interesting.

IBM estimates that three service units are approximately equal to a 1 GHz Intel server.  They will lease service units for $252-315 per month, depending on the lease period, plus storage ($.01 per Mb per month) plus networking and management services.  IBM claims that when the total costs of ownership (including floor space charges, power consumption, peripheral equipment (Switches, Routers, Load Balancers, and Firewalls), server management labor, and OS and application licensing fees) are taken into account, there are considerable savings available.

While the entire e-business on-demand, information utility idea is a new marketing campaign for IBM, we hear that customer response has been excellent.  It fits into existing customer interests in more outsourcing, a focus on core competencies, and the avoidance of risk and unnecessary capital expense.  We expect to see many customers decide this could be a good way to use Linux.

(back to top)