Legacy Transformation Legacy Applications: Valuable Assets or Decrepit Liabilities? 7 February 2003.

Legacy Transformation

Legacy Applications:

Valuable Assets or

Decrepit Liabilities?

7 February 2003

Legacy Transformation Scale of the opportunity

There were 6,267,000,000 people on our planet in late 2002 ...Driving 722,000,000 cars (average age 6.8 years in the UK) ….And living in 1,645,000,000 households

They had ‘invested’ $5,000,000,000,000 in software (according to Information Week and IBM)

...And by 1998 had developed an estimated 7,000,000,000 function points

...Of which 30% were COBOL These function points were equivalent to about 640,000,000,000

lines of COBOL

Legacy Transformation Questions

What to do with those ‘legacy’ applications? Do we keep them running as long as possible and replace them

when they are past their sell-by date? …or is there an alternative, such as re-hosting, renovation, re-use

or recycling? If yes, how to decide which way to go? What’s involved? Where to go for help?

Are legacy applications like cars, to be replaced on a regular basis by newer, more fashionable and/or economic models,…. or more like houses, to be maintained long-term, and extended or modified to meet our changing needs, and perhaps completely renovated once in a while?

Are legacy applications like cars, to be replaced on a regular basis by newer, more fashionable and/or economic models,…. or more like houses, to be maintained long-term, and extended or modified to meet our changing needs, and perhaps completely renovated once in a while?

Legacy Transformation A couple of definitions

A legacy application is any application based on older technologies and hardware, such as mainframes, that continues to provide core services to an organisation.

Legacy transformation is about retaining and extending the value of the legacy investment through migration to new platforms.

Transformation can involve any combination of translation,

migration, recycling, and re-use

Transformation can involve any combination of translation,

migration, recycling, and re-use

Legacy Transformation Why transform?

1. It retains/enhances the value of the application in the business

2. Because it’s better economics

Application Value

Time

Lower

Higher

Initial implementation

Initial maintenance

phase

Enhancement phase(s) Replace

Do nothing

Transform

Legacy Transformation What’s inside the ‘black box’?

???????Legacy

ApplicationTransformed Application

Legacy Transformation Inside the black box - the process

Add function-

ality

Analyse and assess the

legacy systems

Administer and control transformation activities

Translate

Migrate data

Re-use

Compon-entise

Integrate

Test

Set transformation goals & success

measures

Legacy Transformation Challenges

Preserve the business rules. Keep the migration timeframe short enough to avoid retrofit

issues. Retain the functionality of the application through any migration

process. Retain ‘know-how’ in the organisation to support on-going

maintenance.

Automating the transformation process is central to addressing

these challenges

Automating the transformation process is central to addressing

these challenges

Legacy Transformation A snapshot of available solutions

Add function-

ality


legacy systems


Translate

Migrate data

Re-use

Compon-entise

Integrate

Test


measures

Netron HotRod, Semantic Designs, McCabe Concerto2, CAST - code mapping and pattern detection

ArtinSoft Freedom, Relativity Rescueware - Legacy to J2EE, .NET, others

SWS DASE, Relativity Rescueware, Intercomp eMaker - hierarchical & relational to relational

SWS Software, Prince - COBOL dialect revision

McCabe Audit - assess metrics

Sapiens eMerge, Prolifics - middleware

Cyrano Wincap - retro-documentation

ASG Rochade - administration, versioning

ASG Encore - extract COBOL code segments

HostBridge, Jacada, DataDirect - Web-enabling

Merant NetExpress - wrap COBOL in Java

ArtinSoft Analyzers - diagnostic assessment


Example 1: GYSSA transformed an ERP product

GYSSA is based in Guatemala, with regional offices in all the Central American countries. GYSSA’s ERP product (called SPC) took 48 programmer-years to develop and has 7 sub-systems aimed at Central American market needs for B2B, CRM, ERP, information portal and business intelligence.

Architecture was Client/Server, mostly written in earlier versions of Visual Basic.

Two choices: build new system from scratch (estimate was three years based on previous experience) or migrate and re-architect.

Upgrading SPC to .NET was decided on as the best way to remain competitive in the Central American market and to stay in the forefront as a supplier of ERP solutions in the area.

Diagnostic analysis revealed that transformation could be completed in eight months, with an equally sized development team at one quarter the cost.

Automatic translation tools were based on ArtinSoft’s upgrade wizard for Visual Basic 6.0 to .NET.


Example 2: Owens & Minor transformed contracts and pricing applications - and avoided ERP package implementation

Owens & Minor are a leading US distributor of medical/surgical supplies.

Existing contracts and pricing applications were 15 years old - heavily customised, written in OS/2. Complex rules for pricing with unique prices for each customer and product.

Original software vendor out of business. Future requirement for such capabilities as multicurrency transactions

over the Web Relativity Technologies provided tools to analyse business rules and

translate the COBOL and CICS into Java. Tool tested on three master files containing EDI maps and customer

information. The test project was complete within six months. “It easily would have cost us tens of millions of dollars to go with SAP or

Oracle. So far we've spent about $1 million on this project…we should complete the whole thing within 18 months and for less than $5 million” CIO David Guzman


Example 3: Tharco extended package application through Web front-end

THARCO designs and manufactures corrugated boxes, and foam cushioning plastics. THARCO carries an inventory of 1,600+ sizes of stock corrugated boxes and packaging materials.

Requirement: To enable customers to go online to place or check the status of their orders - the company also saves money and increases efficiency by streamlining the front portions of its business process.

THARCO was an all-SAP shop, so mySAP was the obvious choice - however, complexity, licensing and transaction-fee issues - and overall cost led - THARCO chose an alternative middleware option which exposed the required parts of SAP to the Web.

Web browser

Standard Web

server

HAHT Commerce Suite application code

Application server (eg IBM Websphere)

HAHT deployment

pack SAP R/3

Illustrative example


Example 4: How Anglo-Irish Bank upgraded COBOL-based back-office applications

Add function-

ality


legacy systems


Translate

Migrate data

Re-use

Compon-entise

Integrate

Test


measures

ACUCOBOL

ISAM

Distributed data

Scalability limits

Record locking problems

Problems in maintenance

Micro Focus COBOL

DB2

Consolidated data

Bank leveraging DB2 for extracts, reporting

Improved code semantics, readability

Scalable

Used Intercomp AnalyzeIT to analyse code and structure

2.5 million lines of code

Used Intercomp MineIT to discover

business rules, regenerate COBOL

Contractors migrated data


Example 5: ALLTEL transformed data resource

ALLTEL Information Services provides banking and mortgage software to financial organisations in the U.S.

ALLTEL is developing new real-time/DB2 products to complement existing financial software suite. Components of this software suite are used by four of the top ten banks in the U.S. One of the major challenges of the initial project is moving from a VSAM to a DB2 data model.

ALLTEL used Netron’s DMS product and associated services based on an iterative, rules-based approach to data migration.

ALLTEL also use this as the standard method for helping its customers move their data models to DB2 as they upgrade to new releases of ALLTEL’s software products.

Legacy Transformation What strategy?

Choice driven by business needs - ‘push’ to save money, or ‘pull’ to meet market requirements.

Mix and match 4 options to transform the applications - replace, re-use, transform, rewrite.

Consider the future of the overall application portfolio. Choose the target platform based on general strategic

considerations.

Migrations due to mergers and acquisitions can fit more than one

category

Migrations due to mergers and acquisitions can fit more than one

category

Legacy Transformation Business benefits and drivers

Business Driver

Deteriorating system

Economy eBusiness Get ready for change

Key business objective

Value dimensions

Internal focus External focus

Survival, operational continuity

Reduce operating

costs

Extend reach inside business

and/or external to business

Position business for

the future

• Improved maintainability (documentation, easier to fix)

•Access to support

•Lower operating costs

•Access to new customers (package supplier)

•More adaptable system

•Reduced operating costs, licence costs, back-up/disaster recovery costs

•Opportunity to outsource

•Reduced complexity

•More adaptable system

•Increased revenues

•New customers/users

•Better service to existing, new customers/users

•Reduced customer acquisition costs

•Brand enhancement

•Adaptable system

•Closer integration with business partners

•Extended services to customers

•Web Services option

•Re-use of components

•Future-proofing

Legacy Transformation - Business Value Model


Key factors are quality of the legacy and availability of standard packages

REPLACE

REWRITE

RE-USE (or RE-CYCLE)

Quality of Legacy Application

Type of Application

Adapted from Erlich

Low High

Unique, non-

standard

Standard, packages available

TRANSFORM

Legacy Transformation Steps to a decision

Overview of Decision Process

Deteriorating system

Drivers

Adding eBusiness functionality

Looking for economies

Getting ready for change

Legacy portfolio

Map portfolio against drivers

Screen for continuing

business value

Applications:A B C D E ...

• Quality• Cost• Business fit• Level of business

change• Resourcing• Affordability

Outcome

Transform

Rewrite

Replace

Re-use

Assess Individual Legacy Applications

Input to business

case

Selected applications

Do nothing

Legacy Transformation Which target platform?

.NET and J2EE - most automatic translation products target these platforms

Re-use, scalability, and wide access to related products and services.

Integrated Development Environments (IDEs) make the development and maintenance task easier.

Application containers (runtime environments) provide the qualities of service necessary for enterprise applications such as transaction handling, security and persistence services.

Growing skill base. Suitable for Web Services. Willingness to accept commitment to one strategic supplier a

factor to consider in choosing .NET.

Choice between .NET and J2EE best made on broader strategic grounds

Choice between .NET and J2EE best made on broader strategic grounds

Legacy Transformation Making it happen

Additional functionality

definition

Proof of Concept

Add function-

ality


legacy systems

Translate

Migrate data

Re-use

Compon-entise

Integrate

Test

Acquire transformation technologies

Project set-up

Administer and control transformation activitiesSet transformation goals & success

measures

Build know-how


Example 6: Building know-how at North Carolina Department of Justice

DOJ is migrating an application from an existing Unisys COBOL/MASM/MAPPER mainframe legacy application environment to a Java-based application. The migration was a pilot for the transformation of mainframe legacy code in other applications.

Add function-

ality


legacy systems

Translate

Migrate data

Re-use

Compon-entise

Integrate

Test

Administer and control transformation activitiesSet transformation goals & success

measures

Build know-how

DOJ staff with little or no knowledge of the existing

business rules contained in the existing code reviewed

and comprehended the COBOL application's

architecture, organisation and processes

Worked with consultants to validate the JAVA

programming standards, the XML messaging standards and the state service broker architecture to be utilised for

the project.

Established training material and conducting training class

for DOJ's IT staff.


Selling the transformation project - what makes it so difficult?

If it ain’t broke, don’t fix it - Managers like to get something new for their money - transforming a legacy application looks like a project to ‘fix’ something that already works.

Jam tomorrow - Transformation makes it easier to maintain and enhance the application in the future - to address things that might happen. This is always worth less than immediate benefits.

Apples and Oranges - Are you comparing like with like? The costs of the transformation project have to be spelled out, while the true cost of today’s legacy (disruptions, maintenance issues, costly operations, and so on) is often hidden in other budgets. These must be spelled out if the transformation project is to be compared with the cost of doing nothing.


Choosing a business partner - Follow the money

Base Platform Provider

Enabling Technology

Mining Tools

Conversion Tools

System Integrator

OutsourcerIS

DepartmentCustomer

‘Infrastructure’ suppliers

Transformation Project

Operations

Licence-driven revenues

Project-driven revenues

Operations-driven revenues

Legacy Transformation In summary

It’s feasible to extend the business value of core legacy applications by migration to new platforms.

Transformation is probably cheaper than rewriting or replacing a legacy application.

Choose suppliers, tools and mix of transformation approaches based on future business needs and realities of the legacy portfolio.

A first transformation project has a steep learning curve. It’s advisable to work closely with the experts to ensure success.

Transformation works

Transformation works

Real savings are possible

Real savings are possible

Horses for courses

Horses for courses

Alliances are key to success

Alliances are key to success


Thank you

Declan Good

[email protected]

Legacy Transformation Legacy Applications: Valuable Assets or Decrepit Liabilities? 7 February 2003.

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Transcript of Legacy Transformation Legacy Applications: Valuable Assets or Decrepit Liabilities? 7 February 2003.