A managed system is a single physical server and the resources that are connected to the physical server and managed by the physical server as a single
unit. Connected resources can include expansion units, towers, and drawers, and storage area network (SAN) resources that are assigned to the server.

In the above picture, you can see the logical partitions on each managed system, with the operating systems installed on the disk drives of the physical server and the connected expansion units. The HMC is connected to both managed systems simultaneously and allows you to manage both managed systems from a single
location.
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