z/Transformation Technology Group
Oh No, My Upper Management
Wants to Leave 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?
We Are On Defense, Now What?
Perhaps, A LOT!!! Perhaps, It’s Too Late!!! Let’s See!!!

Where is the Project Right Now?

Very Early Stages

Early Investigative Stages

Latter Investigative Stages

Decision Making Stage

Migration Stage

Parallel Processing Stage

Cutover Stage
Very Early Stages

Very Early Stages

NEARLY ALL COMPANIES ARE HERE ALREADY!!!



If your Systems Team and/or Applications Team is “Getting up There”, Expect to be
Here!

IT Might be Aware, Might Not

Upper Management has Read or Heard about a Recent Migration

Upper Management MAY be Concerned about Lack of Skilled Resources (YOU)

Upper Management is Enamored by the Prospects of Saving $100,000s or $1,000,000s
Annually
Prospects of Remaining on the Mainframe 5+ Years


Assume Your Company Is at least at This Stage!
Very High
Prospects of Remaining on the Mainframe 2 – 5 Years

Near Certainty
Very Early Stages...What Can Be Done?

Reach out to the IBM Eagle TCO/Economics Team

NO SUCH THING AS “TOO EARLY” to Justify the Platform

This is the “Concept” Phase

Potential Cost Savings Are Purely Hypothetical or Related to Another
Company’s Project

Stress Total Cost of Ownership vs. Line Item Costs

Stress the Fact that TONS of Resources are Available
Early Investigative Stages

The Financial Team Begins to Build the “Justification” for Doing the Migration

IT Becomes Aware of the Project, If Not Already Aware

Financial Case Begins – Usually by Building “Line Item” Comparison

Actual Costs of “Getting There” are Not Being Gathered, YET

Prospects of Remaining on the Mainframe 5+ Years


Fairly High to High
Prospects of Remaining on the Mainframe 2 – 5 Years

High to Very High
Early Investigative Stages...What Can Be Done?

Reach out to the IBM Eagle TCO/Economics Team

NO SUCH THING AS “TOO EARLY” to Justify the Platform

Determine if Initiative is “Application-Based” or “Platform-Based”

When Providing Line Item “Cost” Numbers (Bricks), Always Stress “Related
Costs” (Mortar)

Always Refer to “Cost of Getting There” (i.e. Migration
Considerations/Costs)
Latter Investigative Stages

The Team “Builds the Case” for Migrating off of the Platform

If “Application-Based” Decision, Less Concerned about “Short Term” Finances


Solution “Functionality” Is the Major Focus

Costs Are a Secondary Concern
If “Platform-Based” Decision, Finances are Driving the Decision

Detailed Platform Cost Comparisons Are Developed
Prospects of Remaining on the Mainframe 5+ Years


Moderate to Low
Prospects of Remaining on the Mainframe 2 – 5 Years

Moderate to High
Latter Investigative Stages...What Can Be Done?

Reach out to the IBM Eagle TCO/Economics Team

If Decision is “Application-Based”, Determine if Co-Existence Strategy is Reasonable

Relay Migration Costs

Investigate True “Apples to Apples” Comparison


Frequently, Mainframe Solutions have “Home Grown” Custom Components that are NOT in Packages

Details ARE Important – How Much Will Customization Details Cost for Application Provider to
Develop?

Would Integration Points with Existing Applications Be Easier and Less Risky?
If Decision is “Platform-Based”, Actual TCO is CRITICAL

Bricks-Only vs. Complete “Wall” (Mortar)

Resources are MUCH MORE AVAILABLE than Press Would Lead One to Believe!!!
Decision Making Stage

Costs Are In

Functionality Comparisons Have Been Made

The Decision to Make the Corporate Decision is HERE!
Prospects of Remaining on the Mainframe 5+ Years


Moderate to Very Low
Prospects of Remaining on the Mainframe 2 – 5 Years

Reasonable to Fairly High
Decision Making Stage...What Can Be Done?

Reach out to the IBM Eagle TCO/Economics Team

If Decision is “Application-Based”, Push for Co-Existence


Stress Migration Costs

Push for Vendor Details of Providing Complete Platform-Replace Option
If Decision is “Platform-Based”, Ensure Complete TCO Is Detailed and Accurate for BOTH
Options

Bricks-Only vs. Complete “Wall” (Mortar)

Resources are MUCH MORE AVAILABLE than Press Would Lead One to Believe!!!
Migration Stage

The Decision Has Been Made

The Migration Plan is Developed

The Migration Plan is Implemented

This Stage Can Take up to Five Years

This is Where the Cost Overruns and Project Delays Occur
Prospects of Remaining on the Mainframe 5+ Years
Low to Almost Non-Existent

Prospects of Remaining on the Mainframe 2 – 5 Years

Fairly Low to Moderate
Migration Stage...What Can Be Done?

Reach out to the IBM Eagle TCO/Economics Team

Once at the Migration Stage, The Project Takes on a Path of Its Own

Typically, Migrations Are Much Slower, Much More Costly, and Much More Complex than
Expected

Usually, the Management Team is “All In” – At Least Initially

It is Critical to Point Out ALL Current Integration Points to Ensure that the New
Application/Platform Is at Least “Functionally Equivalent”

Work with the User Community to “Cover All Bases”

If A Co-Existence Strategy is Embarked Upon, Ensure that Integration Points Are Complete

If Migrating Completely off of the Platform, Ensure that ALL Major Functionality Points Are
Provided
Parallel Processing Stage

New System Is on a “Test Ride” to Ensure Acceptable Functionality

All Functionality is Compared to Current Systems

Prospects of Remaining on the Mainframe 5+ Years


Very Low to Almost Non-Existent
Prospects of Remaining on the Mainframe 2 – 5 Years

Very Low to Low
Parallel Testing Stage...What Can Be Done?

Reach out to the IBM Eagle TCO/Economics Team

Work with Applications Team and End User Community to Ensure ALL Aspects of
Mainframe are Maintained

Extensive Recoverability Tested

Complete Test Disaster Recovery Plan (Including Complete Network Implementation)

ALL Aspects of Security Are At Least Equivalent to Mainframe

Ensure All “Custom Applications” Are Functioning Properly

Ensure Your Resume is Up-to-Date –

Reach out to z/Transformation Technology Group, LLC ;-)
BOTTOM LINE: Time is of the Essence!
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
30
© 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
31
© 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!!!