z/Transformation Technology Group
My Company is Looking to Cut
Costs in IT, Can we Save the
Mainframe?
Ken McMahon
z/Transformation Technology Group, LLC
[email protected]
The Clock is Ticking, But What Can Be Done?
Great Ideas Are Only Great if Made on Time!
The Best Defense is a Good Offense!!!

EVERY MAINFRAME Shop Has, at Least, CONSIDERED Moving off the Platform!

Individuals Coming from Other Companies

Frequently, These Individuals Are NOT Familiar with the Mainframe

In Some Cases, These Individuals MAY Have Already Been Through a Mainframe-to-X86
Conversion

CEOs, CFOs, CIOs, LOB VPs, etc.

PROVE Your Worth BEFORE Being Asked!

In MOST Cases, Mainframes are the MOST EFFICIENT Platform!

However, IF You WAIT Until One of the Above KNOW the Best Answer, It Will Be Too Late!
What Is a Good Offense?


A Good Offense is One that SETS the Bar Rather than Trying to MEET the Bar!

SOMEONE in YOUR Company WANTS to Get off of the Mainframe!

IF that Someone Is Already Planting “Seeds” of Converting, the Bar Is Getting Set Elsewhere
Proactively PROVE Your Platform IS ALREADY the BEST LONG TERM SOLUTION!

MOST Efficient

MOST Comprehensive

Has Longevity

Has Adaptability
Well, That SOUNDS Great, But How?

Build a Business Case for the Current Environment BEFORE the Alternative Exists!

Utilize the IBM Eagle Team (TCO) IT Economics Practice

By SETTING the Bar, The Alternatives Need to EXCEED the Bar YOU SET!

….More on the IBM Eagle Team Later…..
UNFORTUNATELY, We Are Already on Defense!

Being on Offense Sounds Great, BUT, We Are NOT There!

We Have NOT Been on Offense Since Shortly After Y2K!

We are Already on Defense, Is There ANYTHING We Can Do?
Cutting Costs Does NOT Mean You Have to Leave the
Mainframe!


There are MANY Ways to Cut IT Spend While Remaining on the Mainframe!

Upgrade to a Newer, Existing Machine

Examine Hardware Maintenance Agreements

Attempt to Utilize Sub-Capacity Pricing on Major Sub-Components

Examine Software Contracts with Existing Vendors

Examine Your Disaster-Recovery Agreements (IF You Don’t Have One, GET ONE!)

Consider Automation Tools to Lessen Administrative Load

Consider Utilizing Outside “Services” to Become More Efficient and Augment Staff

Consider Utilizing Outside “Services” to Replace Retiring Systems Staff

Consider Moving to Managed Services Model
While No Single Option Is THE Answer, the Combination CAN Get You There!
Upgrade to a Newer, Existing Machine


Newer Machines Can Deliver the Same MIPS at a Lower MSU Rating

Lower MSU Ratings Can Reduce Monthly Software Spend

Newer Machines Can Support Newer Versions/Releases of Software that
Support Usage-Based Pricing

Newer Software Versions/Releases Can be More Efficient
Newer Machines May Have Significantly Lower Maintenance Costs

Newer Machines Tend to be More Reliable and, Hence, Carry a Lower
Maintenance Cost

Replacement Parts Are Also Likely to be More Available as Well
Examine Hardware Maintenance Agreements

When Did You Actually LOOK at the Hardware Maintenance
Agreements?

Get a Second Bid from Another Service Provider

Are You Getting the Best Price?

Do You Still Need the SLA You Have in Place?
Attempt to Utilize Sub-Capacity Pricing on Major
Sub-Components

In Some Cases an Upgrade to a Newer Mainframe May be Required

The Lower Your Utilization on the Box, the Greater the Return for Sub-Capacity

Several Vendors in Addition to IBM Support Sub-Capacity Pricing

The Savings Can Be Significant
Examine Your Disaster-Recovery Agreements
(IF You Don’t Have One, GET ONE!)


Older DR Agreements Tended to Be Very Costly

When Did You Last Negotiate the Contract?

Are the Requirements the Same?

Is the Box the Same?
Consider Getting a Second Bid for Your Disaster-Recovery Needs


z/Transformation Technology Group Can Help
A Disaster-Recovery Agreement Can be a Great Stepping Stone to Managed Services

You Can Evaluate a Vendor’s Responsiveness

You Can See the Vendor’s Actual Data Center

You Can Get a Feel for the Quality of the Staff
Examine Software Contracts with Existing Vendors

When Did You Last Revisit Your Software Vendor Contracts?

Are You Leasing/Renting When Buying Is a Better Option?

Are You Paying for the Right Number of MIPS/MSUs?

Are You Still Running All of the Products in the Agreement?

Are You Getting Any Discount from the Vendor or Paying “Book Price”?

Have You Purchased Other Products from the Vendor that May Help Leverage the
Mainframe Costs?
Consider Automation Tools to Lessen Administrative Load

Are You Still Using a Physical Tape System?

Have You Considered Doing Back-Ups to the Cloud?

Have You Considered a Virtual Tape Solution?

Are You Using a Scheduler to Process Jobs?

Are You Using an Automate Systems Operations Tool?

You May Be Able to Eliminate an Operator Position
Consider Utilizing Outside “Services” to Become More Efficient
and Augment Staff

Frequently, z/VSE Staffing Is So Tight that 100% of the Time and Effort is Spent MAINTAINING
the Status Quo

Making Changes Tend to Need Long Term Planning Due to Resource Shortages



Resulting in Older, Less Efficient Software

Resulting in NOT Being Able to Upgrade in Timely Manner to New Application Level
By Utilizing an Outside Service, A Customer Can

Get Products Upgraded to Latest Versions/Releases of the Software

Can Maintain Existing Maintenance Support Level

Create a Better Work Environment for the Existing Staff as Vacations Can Be More Easily and Flexibly
Planned

Fewer Outages Due to Running Newer and More Stable Code
Costs Are Typically Very Reasonable AND It Becomes Possible NOT to Replace Retiring Staff
Consider Utilizing Outside “Services” to Replace
Retiring Systems Staff

In Many Cases, Companies Instinctively Attempt to Replace a Retiring Resource with a
Full-Time Employee



I Know, I Know, in SOME CASES, NO ONE Takes the Place of the Retiring Person!!!
Is an FTE Needed?

Could a Part-Time Resource Do the Job?

Have Workloads Changed Enough that a Part-Time Resource Meets the Needs of the Company?
Would a Outside Services Be a More Efficient Replacement?
Consider Moving to Managed Services Model

For Companies Desiring to Stay on the Mainframe from a Business Continuity and a Business
Stability Standpoint, a Managed Services Model May Fit the Bill

A Number of Different Options – The Implementation Could Be Phased in Over Time

The Lowest Impact Implementation Is a Mainframe Systems Resource Simply Augmenting Staff

Utilizing a “Rent a Programmer” or “Programmer for Hire” Can Provide Partial to Complete Systems
Programming Support

An Organization Can Utilize Outside Resources Completely to Replace Systems Programming
Personnel (Including Operations) While Still Maintaining the Physical Mainframe “In House”

An Organization Can Completely Utilize Outside Resources to Manage the Mainframe in Their Data
Center While the Organization Maintains Ownership of the Hardware and the Software

An Organization Can Completely Utilize an Outside Resource to Not Only Manage the Mainframe,
But Choose to Completely Run on a Mainframe Owned/Leased by the Outside Resource
Staff Augmentation/”Rent a Programmer”
Through an Outside Resource

Staff Augmentation Can Come in a Variety of Flavors



An Hourly Contract (Rent a Programmer)

Programmers Bill a Fixed or Variable Number of Hours Each Week

Statements of Work Can be Very General or Very Specific (Install and test z/VSE V6.2, for example)
An Ongoing Support Agreement

Programmers Bill a Recurring Number of Hours Each Week (Hours Can Be Variable)

Statements of Work Tend to be Very General in Nature
An Annual “Peace of Mind” Insurance-Type Agreement

Typically an “Upfront Phase” of 25 – 50 Hours Where the Programmer “Learns” the Current System Working
Side-by-Side the Existing Programmer(s)

The Implementation Phase Involves a Fixed/Variable Number of Hours Each Month (with Carryover
Options)

With this Type of Agreement, the Outside Resource Becomes Knowledgeable Enough to be Able to Take
Over as the Lead Systems Support Programmer if Needed
Outside Resources Completely to Replace
Systems Programming Personnel (Including Operations)
While Still Maintaining the Physical Mainframe “In House”

Organization Completely Eliminates the Operations/Support Side of the Mainframe

All Operations Staffing is Provided by the Outside Resource

All Systems Support Staffing Is Provided by the Outside Resource

Physical Mainframe Resides on Customer Premises

Mainframe Ownership/Lease All the Organization, NOT the Outside Resource

Software Ownership Maintained by the Organization, NOT the Outside Resource
An Organization Can Completely Utilize Outside
Resources to Manage the Mainframe in Their Data
Center While the Organization Maintains Ownership of the
Hardware and the Software

Organization Completely Eliminates the Operations/Support Side of the Mainframe

All Operations Staffing is Provided by the Outside Resource

All Systems Support Staffing Is Provided by the Outside Resource

Physical Mainframe Resides on Customer Premises

Mainframe Ownership/Lease All the Organization, BUT Housed by the Outside Resource

Software Ownership Maintained by the Organization, BUT Housed by the Outside Resource
An Organization Can Completely Utilize Outside
Resources to Manage the Mainframe in Their Data
Center While the Outside Resource Maintains Ownership of the
Hardware and the Software

Organization Completely Eliminates the Operations/Support Side of the Mainframe

All Operations Staffing is Provided by the Outside Resource

All Systems Support Staffing Is Provided by the Outside Resource

Physical Mainframe Resides in Outside Resources Data Center

Mainframe Ownership/Lease All the Outside Resource

Software Ownership Maintained by Outside Resource
How Do You Know Which Option Is Best?

Reach out to the IBM Eagle TCO/Economics Team

Reach out to z/Transformation Technology Group

These Groups Can Provide Detailed Analysis to Help in Finding the Best Solution
BOTTOM LINE: Time is of the Essence!
What Can z/Transformation Technology
Group Do?

z/Transformation Technology Group Can Assist in Several Areas\

Assist in Analyzing Current Software Portfolio

Make Recommendations on Cost Cutting Areas

Make Recommendations on System Upgrades, etc.

Make Recommendations on Software Tool Replacements When Needed

Assist in the Development of a Migration Plan, Assist in the Migration Implementation Plan

Lead the Migration Effort When Required

Provide Outside Resource Assistance, Guidelines and Actual Resources
Who Is the IBM Eagle Team?

Worldwide Experience Successfully Helping Hundreds of Clients since 2007

Highly Skilled Technical and Financial Consultants with 20+ years Experience Working with
Clients on Complex Heterogenous IT Environments

In 2016 the Team Identified over $1.25B in Client Savings; on Average $6.6M per Completed
Assessment*

… Most Likely They Have Evaluated a Similar Scenario and Can Help Your IT Operations!
What Does the IBM Eagle Team Do?

No Charge Studies to Help Customers Determine the BEST PLATFORM for Their Environment

Specialized in Examining Economic Differences Between Solutions in Client Environments

Focused on Identifying Areas for Efficiencies, Cost Reductions and increased Business Value

Provide Studies Using Client Data / Figures for a Custom Assessment

Through a Transparent Model

With Agreed-to Assumptions

and Iterate as Required
What Types of Assessments Can They Do?

Workload Placement Assessment

Cloud Assessment

Business Value Assessment (BVA)

Mobile Assessment

Chargeback Analysis

Machine Learning Assessment

Analytics Assessment

IT Best Practice Benchmarking
IBM Eagle Team Information

Slides Provided by David Anderson

IBM Eagle Team
IBM Eagle Team – IT Economics Practice
No-Charge Studies to Help Your Business
David F. Anderson [email protected] +1 845 546 6168
June 5, 2017
IBM Eagle Team – IT Economics Practice
IBM Competitive Project Office
Proving the Value of IBM Technology
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© 2017 IBM Corporation
IT Economics
[email protected]
IBM Eagle Team - IT Economics Practice
Who we are
 Specialized in examining economic differences between solutions in client environments
 Focused on identifying areas for efficiencies, cost reductions and increased business value
 Provide no-charge studies using client data / figures (not our own) for a custom assessment


through a transparent model
with agreed-to assumptions

and iterate as required
 Worldwide experience from successfully helping hundreds of clients since 2007
 Highly skilled technical and financial consultants with 20+ years experience working with clients on
complex heterogenous IT environments
 In 2016 we identified over $1.25B in client savings; on average $6.6M per completed assessment*
… most likely we have evaluated a similar scenario and can help your IT operations
* Potential savings acknowledged by 188 clients in 2016
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© 2017 IBM Corporation
IT Economics
Expertise
IT Economics Studies
Cloud Assessment
• Perform a Health Check to find the right private, public
or hybrid cloud solution
• Examine workload size and activity, SLA and
provisioning requirements, and instance costs
Workload Placement Assessment
• Consolidate, offload, and place new workloads on same
or alternative platforms
• Exploit and compare platform attributes to optimize
workload performance and costs
Business Value Assessment (BVA)
• Understand solution attributes and how business
requirements are mapped
• Quantify financial benefits and compare to
alternatives to determine the most compelling case
Machine Learning Assessment
• Discover how to provide an enhanced customer
experience through real-time predictions from ML
• Evaluate data gravity and deploy machine learning
closest to the data and transactions
Mobile Assessment
• Mitigate high-volume, low-value mobile transaction
costs for your business
• Evaluate the effects of throughput, response time and
other KPIs in mobile topologies
Analytics Assessment
• Determine the most cost-effective infrastructure for
analytics solutions
• Exploit platform attributes and efficient storage
solutions for Analytics and Big Data
Chargeback Analysis
• Align chargeback policies to actual IT costs
• Identify and overcome chargeback policies that drive
adverse IT decisions
IT Best Practice Benchmarking
• Compare actual IT environment with best
practices in the IT industry
• Improve forecast and actual spend
IT Economics studies are available at no-charge to IBM clients and Business Partners
Visit www.ibm.com/iteconomics or https://www.ibm.com/partnerworld/iteconomics
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IBM Confidential
IBM Eagle Team – IT Economics Practice
Contact [email protected]
https://www.ibm.com/partnerworld/itecono
mics
© 2017 IBM Corporation
IT Economics
Use a business case to make a technically and financially based IT decision
How Can an IT Economics Study Help?
An IT Economics study is a business case for your enterprise
• Built with your information and costs
• Specifically tailored to your enterprise
• Shows your return on investment
• Allows you to make a financially based IT decision
Do you…
•
•
•
•
Want to do more with cloud?
Need to simplify your IT environment?
Want to grow your business but need to
decide where to host the applications?
Have more than 21 x86, HP-UX or Sun
servers running Oracle DB or Weblogic?
Are you…
•
•
•
•
•
Moving workloads off the mainframe?
Deploying workloads on Linux x86?
Evaluating the best platform for Big Data?
Using more than three platforms?
Looking to reduce IT spend?
IT Economics
These are some common scenarios from which clients have benefited from an IT Economics study.
Use an IT Economics study to build a business case to drive cost savings and
fuel your innovation and growth projects
32
© 2017 IBM Corporation
How an IT Economics Study works
Would a financial view of your IT environment help you make a decision?
An IT Economics study can be completed in a few weeks with minimal effort on your part.
• Ask your IBM Client
Representative, IBM
Business Partner or
contact the IBM
Eagle Team at
IT.Economics@
us.ibm.com.
• You will be
contacted by an IT
Economics
management
consultant in your
region.
2. Decide a
Workshop Date
3. On-site Workshop
4. Data Analysis
• Your IT Economics
• Depending on the
• Your IT Economics
consultant will coordinate consultant will explain
scope of the study, your
a date to hold an on-site
IT Economics
the study’s
workshop with you.
consultant may request
methodologies, capture
• This is typically a two
additional data after
your objectives for the
hour meeting with your
the workshop.
study and gather
executive sponsor for the information about your
study and technical and
• Analysis and report
IT environment.
financial SMEs for your IT
preparation (performed
environment.
off-site) are usually
• The IT Economics
complete in three to
consultant will share
four weeks.
best and worst practices.
5. On-site Study
Presentation
• Your IT Economics consultant
will meet with you to present
findings and provide
recommendations.
• Your IT Economics consultant
will answer questions and
provide you with a final
report with detailed analysis,
an executive summary, and a
business case built with your
data and costs.
IT Economics
1. Request a Study
[email protected]
www.ibm.com/iteconomics
https://www.ibm.com/partnerworld/iteconomics
IBM Eagle Team – IT Economics Practice
33
© 2017 IBM Corporation
IT Economics methodology
Examine and compare alternatives to determine the most cost-effective solution
TODAY
FUTURE CHOICES
Alternative 1
Current Environment
IT Costs (OPEX)
Hardware
Software
Labor
Networking
Facilities
Storage
IT Costs (OPEX)
Hardware
Software
Labor
Networking
Facilities
Storage
Alternative 2
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IT Economics
IT Costs (OPEX)
Hardware
Software
Labor
Networking
Facilities
Storage
© 2017 IBM Corporation
TCA – Get the complete picture!
Components
Environments
Prod
Dev
Hardware
$
$
Software
$
$
Time
Total Cost of Acquisition
IT Economics
Availability, reliability, security, scalability
Total Cost of Ownership is much more than Total Cost of Acquisition!
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© 2017 IBM Corporation
TCO and Business Value – Get the complete picture
Components
Environments
Prod
Dev
Test
QA
DR
Hardware
$
$
$
$
$
Software
$
$
$
$
$
People
$
$
$
$
$
Network
$
$
$
$
$
Storage
$
$
$
$
$
Facilities
$
$
$
$
$
Time
Upgrades / Refresh
Migration
Growth
Acquisitions
Parallel Costs
Net Present Value
Payback Period
Availability, reliability, security, scalability
Time to market, customer retention, forecasting &
scheduling, accounts receivable, SLA penalties
Total Cost of Ownership is much more than Total Cost of Acquisition!
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© 2017 IBM Corporation
IT Economics
Qualities of Service and Business Values
Interested?


Reach out to z/Transformation Technology Group

[email protected]

Ken McMahon on 614-515-9300
Reach out to the IBM Eagle Team

David F. Anderson [email protected] +1 845 546 6168
Thank You for Attending!!!
Thank You!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Enjoy Columbus, OH and
The Ohio State University
GO BUCKS!!!