Lisa Evans

Minneapolis-based U.S. Bank has chosen to standardize on IBM Corp.'s Lotus collaboration software, IBM said Tuesday, displacing Microsoft Corp.'s rival SharePoint-based platform. Quickr and Connections provide a file-sharing repository allowing employees to create profiles, wikis and blogs. U.S. Bank plans to roll out the Lotus Quickr and Lotus Connections social Web platform for corporations.

U.S. Bank is also standardizing on the latest Lotus Notes 8.5 client for all 58,000 employees, as well as the Lotus Sametime messaging app, Bob Picciano, general manager of IBM Lotus Software, told Computerworld . "The focus is for them to get everything migrated by 2010," he said. While Quickr and Connections will be new deployments, Notes and Sametime are technically upgrades. U.S. Bank is also looking into IBM's LotusLive cloud collaboration software, said Picciano, and is even considering switching off Microsoft Office to IBM's Lotus Symphony productivity suite. "Discussion for that continues to be under way," he said. U.S. Bank was already using versions 6.5 of IBM Lotus Notes and Domino for most of its employees. According to Picciano, IBM and Microsoft both bid to provide collaboration and messaging for U.S. Bank, which is ranked the sixth-largest American bank with $266 billion in assets. But U.S. Bank was also running 5,000 SharePoint sites - some department level, some much larger, according to Picciano - throughout the bank, which was created out of a number of mergers about 10 years ago.

Despite IBM's apparent incumbent's edge, Picciano said the battle between the two vendors was "largely competitive." "I wouldn't be arrogant enough to call U.S. Bank an IBM shop," he said. Microsoft did not dispute IBM's characterization of its deal with U.S. Bank, but it maintains that it is an exception that proves the rule. "Last year, more than 4.7 million people began the switch to Exchange and SharePoint from Notes," Julia White, director of Exchange product management, said in an e-mail. "We count our switchers in millions, while Notes counts their switchers in tens of thousands." "We expect this trend to accelerate with Exchange 2010 and SharePoint 2010," White said. IBM's win, he said, was the result of superior technology, not heavy discounting. "This wasn't a 'our bundle will beat up your bundle' situation," he said. "Our software was a better choice and fit." Picciano declined to disclose financial terms. "It's a very big deal," he said. Citing large customers such as HSBC, Colgate-Palmolive, Teach for America and others that are deploying the latest Web 2.0 components of the Lotus platform, Picciano says IBM is making a successful counterattack. "We are displacing Exchange, displacing Outlook," Picciano said. "Despite what the people up in Redmond might say, we are taking share."

Force10 Networks is forging deeper into the carrier core by adding MPLS to its high-end Ethernet routing switches. But Force10's ExaScale switch/routers will attain MPLS traffic engineering capabilities to enable the system to perform the same steering and forwarding capabilities as Cisco and Juniper core routers, but at dramatically lower cost, Force10 claims. The company's ExaScale E-Series switch/routers are currently used in the networks of two of the top five global wholesale carriers as Border Gateway Protocol (BGP) peering nodes. The ExaScale system will function as an MPLS Label Switch Router (LSR), a transit router that switches packets based on MPLS labels.

The software, which will be included in updated licenses of the ExaScale operating system, is in beta testing with general availability in December. This is in contrast to a Label Edge Router, which attaches and detaches MPLS labels before and after receiving packets from LSRs. 7 reasons MPLS has been wildly successful MPLS on the ExaScale will allow carriers using the Force10 system to scale core capacity at up to 20% of the cost of traditional core routers, which Force 10 says is about $100,000 per single line-rate 10Gbps Ethernet port. Force10 will face significant challenges in the core router market, however. Also, the core router market has shrunk. Cisco, Juniper and Huawei had a combined 98% share of the $569 million market in the second quarter, according to Dell'Oro Group.

A year ago, it was an $843.5 million market in Q2; this year, it's 33% lower because service providers have reduced investments in large-scale core projects as capacity has met demand, Dell'Oro notes. And vendors that have come into the market long before Force10 - namely Avici Systems and Foundry Networks, which was acquired by Brocade - either failed outright or didn't make a significant dent in the market. The market watcher expects the market to grow less than 5% over the next few quarters. Nonetheless, Force10 is undaunted. This will be especially true, the company says, as the industry migrates to 40G/100G Ethernet. Company officials say they can carve out a niche by offering a compelling proposition built around Ethernet optimization, both in performance and economics.

Products are already emerging, and the standard is expected to be ratified in mid-2010. Also, the growth of multimedia content delivered over the Internet - such as video from Hulu and Youtube, social networking, online gaming and peer-to-peer file sharing and presence applications - to fixed and mobile devices is demanding a new generation of low-cost,capacity-expanding platforms, the company says. "There's no technical reason you couldn't have a switch [like Force10's ExaScale] in the carrier core just transporting packets," says Zeus Kerravala of the Yankee Group. "But there are legacy router architectures there, and changing operator behavior and architectures is hard. And it's not going to start with the Tier 1 [carriers]; it's going to start with the Tier 2s and 3s." Force10 is going to need to build up a beachhead of clients with a compelling price advantage.

In many IT organizations, the WAN does not matter. One of the primary roles of the WAN is to enable acceptable application delivery. What you do with the WAN, however, matters greatly. As will be discussed in this newsletter, we are entering a new ear of application delivery – one that we refer to as Application Delivery 2.0. As will be discussed in the next two newsletters, the challenges of the Application Delivery 2.0 era will be notably more complex and challenging than are those of the current era.

That changed a few years ago when IT organizations began to focus on ensuring acceptable application delivery. While ensuring acceptable application delivery has always been important, it historically was not a top of mind issue for most IT organizations. They did this by deploying a first generation of solutions that were intended to mitigate the impact of chatty protocols such as CIFS (Common Internet File System), to offload computationally intensive processing (for example TCP termination and multiplexing) off of servers, and to provide visibility into the performance of applications. Jim and Steve try to avoid cute marketing clichés. Hence, we are hesitant to use the phrase Application Delivery 2.0 as it sounds so much like just one more marketing cliché. However, we see distinct evidence, both from vendors and from IT organizations that we are indeed entering a second generation of application delivery. Unfortunately, the IT organization of a few years ago typically approached application delivery from a tactical, stove-piped approach. Part of the characterization of Application Delivery 2.0 is that IT organizations are beginning to face a new set of challenges.

As is so often the case in our industry, IT organizations have to support traditional or legacy technologies and challenges at the same time that they have to respond to new technologies and challenges. That does not mean that the traditional challenges of supporting chatty protocols or maximizing the performance of servers have gone away. One of the new challenges facing IT organizations stems from the changing role of the mobile worker. That is no longer the case. A few years ago, there were relatively few mobile workers and the communications needs of the mobile workers of that era were satisfied with simple cell phones. Now it is common to have 25% or more of employees be mobile at any point in time.

This introduces all of the performance and security issues associated with wireless networking into the mix of application delivery challenges. These employees have smartphones or other wireless devices that they routinely use to access business-critical applications. In the next WAN newsletter we will continue to discuss the challenges that are driving Application Delivery 2.0. We will also mention some steps that IT organizations are taking to respond to these challenges.

IBM has expanded its server lineup with a new mainframe system designed just for Linux that may be aimed, in particular, at higher-end x86 systems. It does not use the mainframe operating system z/OS but includes mainframe management software as well as IBM's z/Virtual Machine system. The new system uses IBM's specialty Linux processor and runs either Novell SUSE or Red Hat systems. Together, they constitute the company's latest "solutions edition," or what IBM says are lower-cost, integrated stacks for the mainframe.

This system is intended to be competitive with large multicore systems used for virtualization consolidation. There are two servers in the Enterprise Linux Server line, and the starting price on the lower-end model, with two processors, is $212,000; it scales up from there. The Linux-specific line is IBM's latest effort to reduce the cost of its mainframe. But several years ago, IBM started producing a smaller model, the z10 Business Class , which was initially offered at about $100,000, to compete with a broader range of enterprise servers. It's high-end z10 Enterprise Class system can cost millions. Reed Mullen, the System z virtualization lead product planner, said that potential customers include companies that want to virtualize a lot of systems but aren't necessarily mainframe customers.

IBM expects to upgrade its z10 next year , in keeping with its three-year upgrade cycle. Among the arguments that IBM will make for this system is its ability to dynamically add capacity in a running environment, Mullen said. IBM's mainframe sales have been off 26% in the most recent quarter compared with the same quarter last year, and server sales have been flat across the board. With this new hardware, IBM likely wants to compete with x86 systems with 16 processor cores and above, he said. Brad Day, an analyst at Forrester Research Inc., said IBM has been working to reduce the cost of its mainframe software, which can account for half the cost of a mainframe, including personnel, energy and maintenance. Anything that lowers the life-cycle cost of the system is critical, and by focusing on Linux, IBM is "putting meat to where most of the workloads are going," Day said. "About half of the new growth of applications on mainframe is led by Linux."

Data storage switch maker Brocade Communications Systems Inc. and Thales e-Security Inc. today announced the integration of the Thales Encryption Manager for Storage (TEMS) with the Brocade encryption SAN switches. The new switch centralizes the data encryption process within storage area networks (SANs) by eliminating the need to deploy multiple storage encryption systems in front of primary storage arrays. The combination of TEMS, a standards-based encryption key management appliance for storage, and the Brocade Encryption Switch is aimed at securing enterprise data and addressing regulatory requirements surrounding customer data.

The Brocade Encryption Switch and the Brocade FS8-18 Encryption Blade the rebranded Thales TEMS - are part of a family of SAN-based encryption appliances that target sensitive corporate data with high performance and centralized fabric management for both disk and tape-based storage systems. The TEMS encryption blade supports the draft IEEE P1619.3 key management specification. The new appliance also consolidates and automates the management of encryption keys for storage systems. According to Brocade, subsequent releases will also support the recently announced OASIS KMIP key management standard . Encrypting sensitive information has become a security requirement for organizations across all industries, especially as data breaches continue to make headlines. Pricing for the new appliance was not immediately available.

Establishing standards like IEEE P1619.3 and KMIP is a significant first step toward simplifying encryption key management, but it is up to leading vendors to offer solutions that support these standards, said Jon Oltsik, principal analyst at Enterprise Strategy Group, in a statement.