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C9020-560 IBM Midrange Storage Sales V3

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Test Code : C9020-560
Test Name : IBM Midrange Storage Sales V3
Vendor Name : IBM
: 63 Real Questions

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IBM IBM Midrange Storage Sales

IBM earnings: income Down, Margins Up | Real Questions and Pass4sure dumps

international enterprise Machines (NYSE: IBM) suggested mixed outcomes on Tuesday, beating analyst estimates for revenue but lacking on profits. A strengthening U.S. dollar knocked down income by way of practically four percentage points, and mainframe income tumbled because the product cycle ran its route.

Profitably improved in most of IBM's segments, and both gross and working margins edged up. income per share declined on a 12 months-over-yr basis, however a better tax price become responsible.


Q1 2019

trade (YOY)

in comparison to commonplace Analyst Estimate 


$18.2 billion


neglected by way of $330 million

Adjusted earnings per share



Beat by way of $0.01

information source: IBM. YOY = year over year.

forex and mainframes

Adjusted for foreign money, IBM's earnings declined by means of just 0.9% yr over yr in the first quarter. The U.S. dollar bolstered greatly in opposition t foreign exchange, notably the euro and the British pound. The business now sees a terrible salary have an effect on of about 2 percentage elements for the total year from foreign money.

On a continuing-currency foundation, two of IBM's leading segments grew, and the other two shrank.



change (YOY, regular-currency)

Cloud and cognitive utility

$5.0 billion


world enterprise services

$four.1 billion


international expertise features

$6.9 billion



$1.three billion


information source: IBM. YOY = 12 months over 12 months.

in the global technology features section, IBM is de-emphasizing reduce-price services. it really is hurting income, but additionally enhancing margins.

in the methods phase, mainframe revenue slumped 38% year over 12 months, and storage revenue fell 11%. Steep mainframe income declines are commonplace at this aspect within the product cycle. The newest z14 mainframe equipment began delivery in the third quarter of 2017, so the initial boom has been totally lapped at this point.

Cloud revenue, which spans all four segments, totaled $19.5 billion over the last twelve months. it really is up 12% adjusted for foreign money. The cloud as-a-provider exit annual profits run fee is now $11.7 billion, up 15% adjusted for currency.

IBM's international center for Watson IoT in Munich, Germany


picture supply: IBM.

Rising margins

whereas IBM's revenue took successful within the first quarter, margins have been a special story. Gross margin rose by way of a percent point from the prior-yr length, and working margin jumped four.4 percentage facets. It was just a little of a blended bag inside the four leading segments, but the net effect changed into typical margin enlargement.


Gross Margin

Gross Margin trade (YOY)

working Margin

operating Margin trade (YOY)

Cloud and cognitive application

seventy five.1%

(1.2 percentage features)


2.three percentage points

international business functions


2.eight percentage points


four.5 percentage features

global expertise capabilities


1.1 percent aspects


3.0 percent facets



0.5 percentage facets


(1.3 percent points)

records supply: IBM. YOY = year over year.

Some first rate, some unhealthy

IBM's effects are sometimes advanced, and the primary quarter become no exception. while slumping income is actually a negative, forex results and the mainframe product cycle accounted for most of the decline.

The cloud company is still turning out to be at a double-digit pace, at the same time as hardware sales decline. Cloud profits linked to the systems segment fell 15% from the prior-12 months period, however growth was strong sufficient elsewhere to decide upon up the slack. When IBM completes its acquisition of crimson Hat later this 12 months, the cloud business will get a jolt.

IBM reiterated its full-year earnings and free-money-move advice, which calls for adjusted profits of at least $13.ninety per share and roughly $12 billion of free money movement. Margin expansion, exceptionally in the features business, will aid IBM hit its suggestions although income will probably decline in 2019.

while the mainframe cycle helped IBM in 2018, it be hurting the enterprise's effects this 12 months. Add within the terrible impact of currency, which seems to be by no means-ending at this aspect, and you've got a recipe for some rough-searching effects.

IBM stock isn't going to recuperate until this period of slumping income ends for decent. The enterprise is rarely there yet, youngsters margin enlargement is a silver lining.

more From The Motley fool

Timothy green owns shares of IBM. The Motley fool is short shares of IBM. The Motley idiot has a disclosure policy.

IBM sees NVMe gains in V5100F, however extra to include more advantageous apps | Real Questions and Pass4sure dumps

IBM’s new NVMe-fitted all-flash array – the midrange V5100F – will present a 2.4x performance enhance when it comes to reduced latency. but that may well be doubled yet once more when application makers optimise their application stack for NVMe flash storage.

That’s the view of IBM execs following the launch of the V5100F remaining week, which IBM claimed as the first midrange storage array out there to come with NVMe flash.

The Storwize V5100F has conclusion-to-end connectivity to hosts with NVMe-over-fabric (NVMf), by means of Fibre Channel. With information reduction, IBM talked about the V5100F programs will help 2PB of usable flash in a 2U rack with commodity or IBM FlashModule NVMe SSDs.

the brand new IBM flash techniques natively embed IBM Spectrum Virtualize utility-defined storage and IBM Storage Insights analytics. 

With end-to-conclusion NVMe/NVMf, IBM claims a 2.4x growth via decreased latency.

based on Thomas Harrer, EMEA chief know-how officer for IBM hardware earnings, that discount in latency may well be doubled again when utility makers optimise their utility for use with NVMe flash.

“If functions have been converted, they would see a much better than 2x growth in latency. Apps are made for SCSI, which is a utility stack of many layers that translates into a lengthy code path,” mentioned Harrer. “we're ready with the lower back-end storage, however the functions don't seem to be capable yet. It is not yet reality.”

The stated 2.4x enhance in efficiency is versus IBM’s V5030F all-flash array with SCSI-based mostly flash storage.

NVMe emerged because the newest incarnation of flash storage a couple of years in the past. It had been average to join flash storage via protocols that use SCSI – eg, SAS and SATA – which become developed in the period of spinning disk. besides the fact that children, this didn’t allow programs to thoroughly utilise the efficiency merits of flash.

So, NVMe become developed, which did away with the SCSI stack and hugely extended the variety of input/output traffic channels and queues possible with knowledge performance positive aspects boosted by means of orders of magnitude.

This led to a number of startups rising that provided storage in keeping with NVME, but none might offer the identical storage points accessible in “normal” arrays.

That become because the massive increase in disk performance now intended there become a bottleneck at the storage controller and there simply wasn’t the processor vigour to spare to supply facts insurance policy, records discount, thin provisioning, encryption, and many others.

So, like right here with IBM, suppliers have settled for a efficiency enhance from NVMe it truly is in the single figures of x, and have left the an awful lot more desirable beneficial properties to specialist system startups that target area of interest high-conclusion use circumstances.

What to are expecting When IBM stories revenue | Real Questions and Pass4sure dumps

foreign business Machines (NYSE:IBM) is determined to file its first-quarter effects after the market closes on Tuesday, April 16. forex headwinds, divestitures, and an aging mainframe product cycle will conspire to knock down revenue, and profits will take a hit as well. but the enterprise expects per-share income to develop this 12 months, and its mega-acquisition of red Hat will add fuel to the fire beginning in 2020.

What happened ultimate time

whereas IBM grew earnings in 2018, the company's fourth-quarter results had been damage by an anticipated drop in hardware income. profits in the systems segment plunged 20% year over yr adjusted for forex, the result of a forty four% decline in mainframe earnings and a 7% decline in storage revenue.

A steep decline in mainframe earnings is ordinary at this element within the product cycle. IBM started shipping its latest z14 mainframe in the third quarter of 2017, and it enjoyed 5 quarters of growth. It was the strongest mainframe cycle in decades, but that powerful growth is now being lapped.


q4 2018

alternate (YOY)

compared to commonplace Analyst Estimate 


$21.8 billion


Beat via $30 million

Adjusted profits per share



Beat by $0.05

records supply: IBM. YOY = yr over yr.

IBM's other segments carried out stronger. Cognitive options income become up 2%, global business capabilities revenue changed into up 6%, and technology functions and cloud systems income become flat. Margins also more desirable, with gross margin up 10 foundation elements and operating margin up 50 groundwork aspects 12 months over yr. while the methods phase noticed gross margin decline, IBM's two capabilities segments enjoyed margin expansion.

along with its fourth-quarter outcomes, IBM guided for adjusted revenue per share of at the least $13.ninety in 2019, up from $13.81 in 2018. Full-12 months free money circulation is anticipated to be about $12 billion, flat compared to 2018.

What analysts are expecting

whereas IBM expects earnings to develop this year, the first quarter can be a special story. Analysts predict a year-over-year decline in both income and earnings.


common Analyst Estimate

alternate (YOY)


$18.fifty one billion


Adjusted earnings per share



facts source: Yahoo! Finance. YOY = 12 months over year.

IBM expects to understand about sixteen% of its full-year adjusted EPS within the first quarter, which works out to $2.22. a mixture of the mainframe product cycle and discrete tax objects will push greater of IBM's income out of the primary quarter this year. On the income entrance, much less mainframe earnings and a foreign money headwind will damage IBM's effects.

IBM can be altering its reporting segments starting in the first quarter. the brand new segments should be cloud and cognitive utility, global business functions, world know-how functions, techniques, and global financing. IBM will additionally record results for its announced divestitures under an "different" class. The enterprise offered off some stand-by myself software organizations in fresh months.

IBM's Global Center for Watson IoT in Munich, Germany.

picture supply: IBM.

loads of relocating elements

The mainframe cycle and a significant currency headwind are going to make IBM's first-quarter revenue seem relatively bad. The company expects a forex headwind of roughly 4 percent aspects, and divestitures will also cut back the suitable line.

The first rate information is that IBM's cloud strategy, which is heavily concentrated on hybrid cloud, is asking just like the correct method more and more with each and every passing quarter. different cloud computing suppliers are beginning to embrace hybrid cloud, an admission that an all-in public cloud solution might not work for a lot of companies. IBM's hybrid cloud focal point and its acquisition of crimson Hat puts it in a very good place to advantage from this style.

whereas IBM's revenue and profits are set to decline in the first quarter, the photograph appears better if you happen to zoom out and look at the complete 12 months. IBM expects to grow revenue per share despite the mainframe product cycle, and it expects to keep free cash move appropriate around $12 billion. In 2020 and past, the addition of crimson Hat should boost the enterprise's cloud growth.

Shares of IBM are up about 27% so far this 12 months, partly due to respectable fourth-quarter outcomes and partly since the inventory sold off towards the conclusion of 2018. according to the business's profits tips, the price-to-income ratio sits simply above 10. IBM's outcomes are not going to blow anyone away this year, but such a major cut price for an organization with key competitive advantages does not make an awful lot feel to me.

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IBM Midrange Storage Sales V3

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Lenovo buys IBM's mid-range server business for $2.3bn | real questions and Pass4sure dumps

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Entry Power8 Systems Get Express Pricing, Fat Memory | real questions and Pass4sure dumps

The systems that IBM uses to make its product announcements like to play a bit of cat and mouse with all of us, and those of you who know me know that I check the system religiously to see if anything interesting has come out. Before the Thanksgiving Day holiday, Big Blue did make a bunch of IBM i-related announcements, but they did not show up on my account until after they had already put the December 1 edition of The Four Hundred to bed.

The important thing is that IBM has finally gotten around to providing Express Edition pricing on the entry Power S814 system that is the most likely machine that IBM i shops will acquire as they move off older iron. As they reported a few weeks ago, there are no upgrade paths from the Power 720 machines using Power7 chip and Power 720+ machines using the Power7+ chip into the Power S814 or Power S824 systems based on the Power8 chips, and not having Express Edition discounting made the move to these Power8 systems a little harder to justify to customers using older Power 520-class machines based on earlier Power5 through Power6+ systems. With the Power S814 Express Edition, it gets a little bit easier to make the case for the newer iron, but I suspect that there are plenty of customers who will go with a Power 720 or Power 720+ machine if they can get a great deal on it.

In announcement letter 114-196, you will find that IBM has created two different versions of the Power S814 IBM i Express Edition machines. The feature #EU2C variant of the IBM i Express Edition configuration goes with the four-core variant of the Power S814 system, which was announced in June quite a few months ahead of when it was expected. (In fact, IBM was telling business partners that it was not sure if it was going to do a four-core machines with a P05 software tier for IBM i. But after a few months of partners and customers no doubt complaining very loudly, IBM not only decided to do, but to do it several months early.) With that Express Edition license, customers have to buy a machine with at least the 16 GB base main memory configuration, designate IBM i or the Virtual I/O Server as the primary operating system, and have two storage devices attached to the machine. They can be two disk drives, two solid state drives, two Fibre Channel adapters, or two Fibre Channel over Ethernet (FCoE) adapters. (The latter supports the Fibre Channel protocol running atop 10 Gb/sec Ethernet adapters.) If customers order the Express Edition on the four-core Power S814 machine, they will get a license to five IBM i users (worth $1,250) at no charge, and IBM is also tossing in a license to IBM i Access Family (either the 5770-XW1 or 5761-XW1 editions). IBM will also bundle in reduced price licenses for Rational Developer for i for SOA Construction (5733-SOA) and either Rational Development Studio for i (5770-WDS) on IBM i 7.X machines or Rational Development Studio for i (5761-WDS) for IBM i 6.X machines. The amount of these discounts was not given in the announcement letter.

With feature #EU2D on the six-core Power S814, which is in the P10 software tier, all of the same rules apply and customers get the same software add-ons at a discount price as on the four-core Power S814. The only difference is that the six-core Power S814 machine comes with 30 IBM i user licenses added in for free, which is worth $7,500.

The Power S814 IBM i Express Edition machines were available on November 25.

IBM is not offering an IBM i Express Edition for the Power S814 equipped with eight cores, which is also in the P10 software tier. This is consistent with the prior Power 720 and Power 720+ Express Editions in the prior product line, but IBM should probably have done an eight-core variant as well just to make it all fair.

We will try to get their hands on the actual pricing of the Express Edition machines above and see how they compare to prior Express Edition iron and to plain vanilla, undiscounted machines.

IBM also made a few other announcements on November 25. First, that big fat 128 GB memory card that the company said earlier this year it would make available on the two-socket Power S824 is available starting December 9. The 128 GB memory card is not just available for the Power S824 system. This fat memory card is also available on the Power S812, Power S812L, Power S814, Power E870, and Power E880 systems.

The 128 GB card has the same architecture as the existing 16 GB, 32 GB, and 64 GB cards already used in the Power S824 system, including the on-card L4 cache memory implemented in the “Centaur” buffer chip on the memory card. (See Thanks For The Cheaper, Faster Memories from the June 9 edition of The Four Hundred for all of the details on the memory technology employed in the Power8 systems.) With the new feature #EM8E memory card, IBM can now deliver the 1 TB of memory per socket (with eight memory slots per socket) that it promised for its two-socket machines. This is the same capacity that IBM is offering on higher-end Power E870 and Power E880 machines, and will no doubt also be available on the four-socket Power8 system that IBM is expected to launch in early 2015 that I have already told you about. The fat memory card runs at the same 1.6 GHz speed as the skinnier ones, and considerably faster than the 1.07 GHz memory used with Power7+ systems.

The feature #EM8E memory card costs $10,625, which works out to $83 per GB. IBM’s list price for the 32 GB and 64 GB cards is $53 per GB, which works out to $1,700 and $3,400, respectively. IBM is charging $1,250 for its 16 GB memory card, which works out to $78 per GB and which also shows you that IBM has a pretty high cost in making these special memory cards but one that it believes is worth the cost and engineering to give the Power8 systems an edge over their Xeon rivals in Server Land. IBM can cram 2 TB of DDR3 memory in 16 slots within a two-socket machine that tops out at 16 total cores. The latest Intel Xeon E5-2600 v3 servers can have up to 24 memory slots in a two-socket machine, and it uses faster and cooler DDR4 memory. And while Intel can put anywhere from 8 to 36 cores in its two-socket machine, it can only support a maximum of 768 GB of main memory across those two sockets with a top-end 32 GB memory stick. Here’s the difference. If you look at the workhorse ProLiant DL380 Gen9 system from Hewlett-Packard, a 32 GB memory stick running at 2.13 GHz costs $750. IBM is charging $950 more for the Power8 memory card in the same capacity, and mostly because it has a unique interface, the Centaur buffer chip, and the L4 cache memory that is distributed across the memory cards.

We all really want to see how the difference in engineering with these Xeon E5 v3 and Power8 machines and their difference pricing matter where the rubber hits the road. I will start trolling for workloads and pricing. Thus far, the data has been a bit scarce, with server makers mostly abandoning the TPC-C online transaction processing benchmarks and taking their sweet time on other system-level tests that might help IT shops make better decisions.


Aiming High, And Low, With Power Chips

Power Chips To Get A GPU Boost Through Nvidia Partnership

IBM Will Fill The Hole In The Power8 Line

IBM Rolls Out The Big Power8 Iron

Power Chips To Get A GPU Boost Through Nvidia Partnership

Plotting Out A Power Systems Resurgence

Partners Need To Get Certified–For Power8 And IBM i

Power8 Packs More Punch Than Expected

IBM Readies More Power8 Iron For Launch

Counting The Cost Of Power8 Systems

Four-Core Power8 Box For Entry IBM i Shops Ships Early

Thanks For The Cheaper, Faster Memories

Threading The Needle Of Power8 Performance

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How Can IBM Power8 Win Deals Away From Intel Xeon? | real questions and Pass4sure dumps

This is not the first time that Big Blue has found itself the underdog in the datacenter, and it probably will not be the last time, either. But the ubiquity of the Xeon processor in the server racks of the world presents IBM with a tough challenge as it tries to position its own Power platforms as well as those that will be coming soon from its OpenPower Foundation partners. Perhaps as early as next month, in fact.

The stakes are different this time, and one could argue that Intel and its legion of systems and storage partners are more insurmountable than any foe IBM has faced, including the Antitrust Division of the US Department of Justice back when the government was less inclined to tolerate unregulated monopolies. But by selling off its System x division to Lenovo last fall, IBM made it clear that it believes it can create an ecosystem of Power partners that can present a credible alternative to the Xeon platform in the datacenter, particularly for workloads that like lots of threads and memory bandwidth.

It is important to not underestimate any large corporation that has demonstrated longevity. Apple, for instance, had certainly run its business up on the rocks in the 1990s, barely maintaining its fanboi PC business, until it hit reset with the iPod in 2001, moved its PCs from PowerPC chips to Intel Core and Xeon processors in 2006, and followed gracefully with the iPhone in 2007 and the iPad in 2010 to create a monster company that now dwarfs IBM in terms of revenues, profits, and market capitalization.

The Past Is Prologue

IBM has a history of rebuffing waves of competition, often with the spectre of antitrust lawsuits hanging over its head, from clone mainframe makers such as Amdahl and Hitachi and proprietary minicomputer makers such as Hewlett-Packard and Digital Equipment decades ago. When the Unix revolution took over datacenters in the late 1980s and early 1990s, IBM’s RS/6000 Unix business was late and did not present much of a threat to Unix leaders Sun Microsystems and HP for the better part of a decade. It is not a coincidence that Unix took off in the wake of the 1988 recession and that IBM’s rise in Unix starting in 2001 came during the recession that followed the dot-com bust. This is an illustrative moment, so forgive us if they digress a bit before getting to some comparisons between modern Xeon E5 v3 and Power8 platforms running a mix of Spark in-memory analytics and machine learning algorithms.

IBM fielded the Power4 processor back in October 2001, which was the first RISC/Unix processor to have two cores and to break the 1 GHz clock speed barrier. It had 125 GB/sec of memory bandwidth from the chop caches into the processor cores, making it applicable not only for commercial workloads such as relational databases and application servers, but also as the CPU in supercomputer nodes. At the time, the Unix business accounted for around 45 percent of all system revenues worldwide and the proprietary minicomputer and mainframe businesses were much larger than they are today and the X86 server business, while still representing the majority of shipments, was not yet driving the majority of revenues. Their point is, there was a lot of money at stake. And IBM was able to be extremely aggressive with its Unix sales because it had very profitable iSeries (AS/400) midrange and zSeries (System/390) mainframe businesses and could offer cutthroat pricing on pSeries (RS/6000) systems to expand its footprint in the Unix business.

Just how aggressive was IBM? At the time, they were involved in consulting engagements with some major banks looking at replacing their Sun Solaris systems with alternatives, including compatible Sparc machines from Fujitsu as well as pSeries gear from IBM. In November 2001, when it came to relational databases, the safe bet was a Sun-Oracle combination, and Sun Microsystems had just gotten its UltraSparc-III processors out the door, too. A prior generation Enterprise 10000 system using 64 UltraSparc-II processors – the NUMA system design that Sun bought from Cray that gave it a datacenter play at all – could handle about 185,000 transactions per minute using 464 MHz processors at a list price of $26 per TPM. After discounts on the hardware and software that were prevailing on the street at the time, the price dropped to $18 TPM. With the Sun Fire 15000s, a single machine with 72 processors could deliver about 335,000 TPM (almost twice the work), but cost $3.36 million at list price and about $2 million after discounts; that worked out to just under $19 per TPM at list price and about $12.50 per TPM after discounts on the hardware and database.

Fast forward two years, and Sun ramped up the UltraSparc-III clock speed in the Sun Fire 15000s to 1.2 GHz, goosed the performance to around 475,000 TPM for a machine with 72 processors, and got the price after discounts down to $9 per TPM.

Ahead of the Power4 launch, IBM was already being pretty aggressive with the “Pulsar” PowerPC chips, which ran at 450 MHz and 600 MHz, and a top-end pSeries 680 machine with 18 processors could handle 175,000 TPM at a list price of $8.45 per TPM and a discounted price of around $5.70 per TPM. With a 24-core pSeries 690 using 1.3 GHz Power4 chips, IBM nearly doubled its performance to around 340,000 TPM at a cost of $6.35 per TPM, but with very aggressive 45 percent discounts on the hardware and standard Oracle volume discounts as on the Sun Machines, IBM pushed that down to $4 per TPM. Two years later, when the Power4+ chip came out at 1.7 GHz, IBM pushed the performance up to 764,000 TPM on a 32-core machine and held price/performance more or less steady. By then, Sun was struggling, HP and Intel were wrestling with Itanium, and IBM was getting traction. So IBM could back off from providing a factor of 3X price/performance advantage at street pricing to a mere 2X.

This is a pattern they have seen with IBM again and again – boosting performance and holding price/performance steady when it can, thereby boosting revenues as machines get more powerful and as more customers buy them. The other pattern they have seen for the past decade and a half is that IBM likes the beefiest cores possible because most system software – including its own – is based on per-core pricing. The fewer cores IBM has, the better pricing advantage it has on software, unless companies like Oracle compensate for it with their own scaling factors, chopping prices for its own X86 and Sparc systems and leveling the playing field a bit. If such scaling factors were available in 2001 and 2003, the gap would have closed a bit between Sparc and Power systems.

How Aggressive Is IBM With Power Today?

It is with all of this in mind that they consider a set of benchmark tests that IBM ran recently on its own entry two-socket Power8 systems, stacking them up against two-socket server nodes based on Intel’s “Haswell” Xeon E5 v3 processors. To put it bluntly, this is not the 2000s Unix market, and IBM cannot cut nearly as deeply as it has in the past to win deals and still have a profitable Power Systems business. But the company says that it can demonstrate bang for the buck advantages over workhorse two-socket Xeon machines, and that is something for a market that talks like it wants an alternative but sometimes behaves like what it really wants is lower pricing on Xeon gear.

As they previously discussed, IBM has been positioning its four-socket and eight-socket Power8 machines, launched back in May, at Intel’s Xeon E7 line, and it has been also working with SAP to get the HANA in-memory database running on Power8 machinery as an alternative to running it on Intel Xeon E7s, which for the past several years has been the only platform certified to run HANA. SAP’s Business Warehouse data warehouse software tuned for the HANA database on Power8 machines just started shipping two weeks ago and is getting plenty of interest, Doug Balog, general manager of IBM’s Power Systems division within its Systems Group, tells The Next Platform. Balog adds that the combination of its DB2 BLU in-memory database and its Cognos analytics software is also driving revenues for the Power8 line, mainly because on this software IBM can show about a 2X performance advantage over comparable Intel Xeon iron running that stack.

IBM has just shipped its BigInsights V4 Hadoop distribution, which is the first Hadoop stack from IBM that is based on the Open Data Platform effort with Pivotal and Hortonworks and the first from IBM to have the Spark in-memory processing capability added to it. IBM is very keen on riding up the popularity of Spark in the datacenter, which is arguably much easier to work with than MapReduce and HBase with the core Hadoop stack and which many companies (including Cloudera) think will, over the long haul, become the dominant way that companies engage with information stored in the Hadoop Distributed File System. Back in June, IBM committed to have 3,500 researchers and engineers work on Spark-related projects and donated its own SystemML machine learning algorithms to the Spark community, and the company is counting on the uptake of BigInsights and Power8 iron within its enterprise customer base to help the Power Systems business grow.

Spark is a key part of this growth strategy. Raj Krishnamurthy, chief architect for analytics stack design and performance in IBM’s Systems Group, and Randy Swanberg, a distinguished engineer in IBM’s Power Systems division, published a report on the relative performance of the Power8 and Xeon E5 v3 nodes running a variety of Spark tests. IBM ran a suite of tests called SparkBench, developed by IBM Research and available on GitHub, on the two workhorse machines using different aspects of the Spark stack.

The IBM machine used in the tests is a Linux-only Power S822L server with two twelve-core Power8 chips running at 3.02 GHz; the machine had 256 GB of main memory and three 300 GB disks. The Power8 chip has eight threads per physical core, or 192 threads across the two-socket machine. The Intel machine was not identified by brand, but had two twelve-core Xeon E5-2690 v3 processors, which clock at 2.6 GHz and which have two threads per core for a total of 48 threads across the box. The Intel machine was configured with 256 GB of memory and the same three 300 GB disk drives, too. Both machines ran the Ubuntu Server 15.04 variant of Linux from Canonical, the OpenJDK 1.8 Java stack, and the latest Spark 1.4 version.

IBM acknowledges that it has tuned the Spark code to take advantage of the memory bandwidth, cache structure, and threads of the Power8 system and does not say anything about how the Xeon E5 v3 machine was tuned. They present this data as-is and are confident that Intel might choose a processor with more cores (it could do as many as 18 cores per socket if it wanted to) and do some tuning of its own to boost the performance of Spark running on Xeons.

There are ten workloads that IBM tested within the SparkBench suite. There are four outlined in the chart below, showing the relative performance of the Power8 system in a single-node compared to a single Xeon E5 v3 node. (The Xeon performance is the red line, normalized to 1.)


In this chart, the Twitter streaming component of the SparkBench test calculates the most popular Twitter tag coming off of the data feed from Twitter every 60 seconds. The Pageview streaming test has synthetic clickthrough stream and does page view and user counts every 60 seconds on this stream. The two SQL tests use Spark’s native relational database query as well as Hive with Spark doing orchestration of the queries, which are doing SELECT, AGGREGATE, and JOIN functions during the test. It is here that the larger number of threads on the Power8 system really help boost performance, according to Krishnamurthy and Swanberg. Pageview Streaming also benefitted from the higher thread count, too.

On the Spark machine learning algorithms, the benefits of the Power8 processor compared to the Xeon E5 v3 processor were not quite as dramatic, and it is here that the cache size and memory bandwidth come into play. Spark normally stores intermediate results to disk as it is doing machine learning calculations, but IBM pushed it out to a RAM file system, which helped boost the Power8 side. (It is not clear if IBM did the same trick on the Xeon machine, but it should have.) Allocating the right number of threads to each Spark worker was a bit tricky for the Logistic Regression, Support Vector Machine, and Matrix Factorization algorithms – which are commonly used for recommendation systems as well as for data classification and predictive work – and again, they are not sure if IBM did the same tuning for the Xeon machines.


The last three tests in the SparkBench suite that IBM ran on the two machines were related to graph analytics jobs using the Spark GraphX features, specifically PageRank, Singular Value Decomposition, and TriangleCount. PageRank ranks a web page based on the number of links feeding into it (a method invented by Google), SVD++ is used to do quality recommendations, and TriangleCount finds relationships like those between people on social networks. The data used for these set of tests is the Google Web Graph dataset, and the test has 875,713 nodes and 5,105,039 edges in its graph database. Once again, the jobs that were most sensitive to memory bandwidth saw the most improvement.


IBM did not provide pricing information for the SparkBench report, but after The Next Platform pressed for it, IBM came back with some pricing so they could do some price/performance analysis. (We would point out that they believe in running benchmarks across a wide variety of machines, with vendors doing their own tests and providing system pricing, and having it all peer reviewed before publication. But in the early days of any market, this is not usually the way it works. Enough vendors have to test others’ machines before they come together and establish a proper methodology, and honestly, the community selling new analytics tools has not gotten with this program yet.) In any event, IBM says that the Power S822L system that was used in the test has a list price of $34,929, which is 50.8 percent more expensive than the Xeon E5 v3 system with the same core count, memory, and disk. Moreover, on average across the ten SparkBench workloads, the Power8 system delivered 2.32X the performance as the Xeon E5 v3 machine. When you do the math, that is a 54 percent price performance advantage in this case – it is a lot higher for some workloads, and nil for others.

The obvious question is this: Is a this price/performance advantage compelling enough to make companies think about switching to Power machines from Xeon machines?

“Power8 and everything they have done to design that machine for data continues to resonate well with clients and with ISVs,” explains Balog. “The threads, the caches, the memory bandwidth, the I/O bandwidth, the little endian support – all that good stuff, including CAPI for future innovation, leaves them with a platform that delivers at least 2X performance gains over Intel. If you can get something that delivers 2X the performance for nearly the same price, it is pretty compelling and this is where they continue to see the strong adoption of Power8.”

IBM does not break out revenue figures for its Power Systems division, but Balog said that at constant currency, the business had 1 percent growth in the first quarter and 5 percent growth in the second quarter, which is a lot better than the declines that IBM has seen in this business over the past several years. For a while, IBM grew its Unix sales as HP and Sun/Oracle slipped, but eventually the Great Recession hit the Unix business hard. IBM has concentrated boosting its Linux-on-Power business, and this effort is one reason that the scale-out two-socket Power8 machines have seen double digit revenue growth in the first half of 2015, according to Balog. The Linux portion of the Power Systems business had “high double digit growth” in the first two quarters of the year, but Balog concedes it is against a very small base.

What IBM needs is a watershed event, a big hyperscaler that commits to using Power chips in its datacenters. It could yet happen with Google, which is one of the founding members of the OpenPower Foundation and which has confirmed that it would switch to the Power architecture to get even a 20 percent advantage. Google can build a Power system specifically for its needs and for a lot less money than IBM can do, and they presume that the OpenPower server partners will be able to do that as well. In fact, they expect for IBM to resell OpenPower machinery for Linux workloads to drive the price down and better compete with the Xeon server suppliers.

The real battle might be Power8+ versus “Broadwell” Xeon E5 v4, which are both coming in 2016. And, quite possibly, the “Knights Landing” Xeon Phi as a tag team, now that they think about it. For many workloads, particularly those that like threads and memory bandwidth, Xeon Phi might be a better answer.

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