Micro Focus and CSC - Gartner

Micro Focus Mainframe Solution Gartner Symposium ITxpo 2012

October 2012

> Mainframe Value

Robust Scalable High-performance Platform choice Improved TCO

IT Ops Mgr Service Delivery Mgr

Head of Development

Strategy Manager Ops Mgr CTO QA Manager Chief

Architect CIO Technical Analyst

Mainframe IT Challenges Vary by Role


Head of Development



We need first to identify the applications that are costing us the most money across a variety of indicators – these are the ones we need to assess first!

We know what we need to try to do, but it is difficult to decide where to start. Everything relates to everything else and there’s no easy way of managing our system atlas.

All studies we do are immediately out of date.

Which is the quickest way to build new services – what applications should we use?

I want to know how we can overtake our competition with superior IT functionality

Which applications are making us the most money – do we have the skills to take them forward?

We are stifled on 3270 and can’t meet demand because it takes too long to deliver any application changes

We won’t collaborate properly unless we can all use Eclipse

I can’t track changes made back to our original change request – there is simply no joined up process

My Java guys cut code well enough but they know nothing about our business processes

“Talent management is the #1 priority for corporate leaders, up from third on the list last year” - PWC

My teams just aren’t productive enough to meet the backlog of business requirements

We need to find ways to meet our Service commitments which are harder than ever

Our mainframe environment can’t support the new testing we need to do. All our composite applications need their front ends to test against the back-end – but our developers don’t have access or the knowledge.

All our testing is manual right now.

We are stifled on 3270 and can’t meet demand because it takes too long to get application changes delivered.

We have no test cases to speak of and use copies of production data – but there’s no automation or process behind it and it takes forever to set up.

Our production system takes priority and frequently impacts our test run schedules. We never hit test milestones.

I have 20% more service delivery projects to complete this year than last

Testing is hugely expensive in human costs but also because it consumes over 50% of mainframe resources

My 3rd party suppliers won’t change their pricing so we need to find a more cost-effective way of running the business

We need to stop spending nearly all our Op Ex on just keeping the lights on

We are running short of batch processing time and soon enough we won’t be able to run end-of-month in time – we don’t have budget for the upgrade plus everything else

My mainframe environment is costly because I need experts just to run the environment.

We need to find ways to meet our Service commitments which are harder than ever

I have a complex set of mainframe applications – nothing else would provide the same business function I only have a couple of

applications that needs this RAS but I’m paying a lot for it each year. We need to fix this.

Exhibiting common themes

Deployment Knowledge Development Quality

Which of our applications should we take forward?

We need factual insight to shape our IT strategy

What is the impact of this system change?

We must solve our skills shortage

My teams aren’t collaborating enough

We never hit our test and QA milestones

Our mainframe testing is hugely expensive

We need 20% more capacity for testing

We are running short of processing time

We need to budget for the mainframe upgrade

We need to replicate core systems quickly

We are stifled using 3270 software


Head of Development



> Common themes

Knowledge Development Quality

Portfolio Knowledge and Management

Unified Mainframe Application

Development

Test Environment, Test Data

Management

Enterprise Analyzer Enterprise Developer Enterprise Test Server

> Your Modernization Journey

Micro Focus Enterprise product set

Deployment

Application Service Deployment

Enterprise Server

Enterprise Server

Enterprise Test Server

Enterprise Developer

Enterprise Analyzer

Micro Focus Enterprise product set

Rapid, Cost-Effective Enterprise Application Deployment

Improved Service Delivery Cycles

Exploit contemporary technology for accelerated and agile workload delivery

Aligned and Effective Application Service Delivery

Reduce cost of maintenance improving development group efficiency and quality

Micro Focus Solutions Key Requirements Client Objectives

Understand the application landscape. Simplify complexity

Prioritization and cost containment of Modernization projects

Cut through traditional development processes and log jams

Application S

ervice Delivery

Modernization

Package

Rewrite

Modernize

COST

RISK

TIME TO VALUE

COMPETITIVE ADVANTAGE (0 – 10)

Lowest cost

High risk

Medium risk

Low risk

2-3 years

3-5 years

4 months

4x cost

10x cost

1x cost

0/10 competitive advantage



Lowest risk

Shortest time

Greatest advantage

Package

Rewrite

Modernize

Package

Rewrite

Modernize

Package

Rewrite

Modernize

> Modernization: sound practice

Thank you

CSC Proprietary and Confidential

zLinux: Move to a New Frontier John Hancock Case Study

Troy Sheeley, Sr. Project Manager October 2012

CSC Proprietary and Confidential 11 December 4, 2012

• Almost nine in ten plan to upgrade at least one of their key applications as a result of a recent portfolio review

• 43% - HR application • 42% - BPM application • 42% - PPM application • 41% - CRM application • 39% - finance/account application • 34% - ERP application

• Reasons why modernisation is likely to take

place are: • Reducing licensing costs (48%) • Increasing reliability/speed (44%) • Future growth (44%)

Summary of those intending to modernize at least one of their key applications which run on the mainframe

VansonBourne – Research

Market Context

87%

13%

Planning to modernise at least one key application

Not planning to modernise any key applications


John Hancock

• 150 years old and major player in Financial Services Market

• Millions of clients across 22 countries and worldwide territories

• Ranked 14th largest public life insurer in the world

– 6th largest in North America!

• QTR end June 30 2012, US Operations reported shareholder earnings at $174M and $8.6B total premiums and deposits

• Funds under management $284.4B


Project Definition – Objectives

“John Hancock seeks to move their current zOS production mainframe environment for VANTAGE-ONE to a lower-cost operating environment. The new environment should provide similar or better performance characteristics and security features. The new operating environment should be able to meet current Business Continuity and Disaster Recovery Service Level Agreements.” Project Definition, April 2011

Other Project Goals: • No interruption to business operations or processes • Must produce equal values in zLinux under ASCII • Maintain compatibility with existing JH systems • Batch cycle performance equal to or better than zOS • Allow for a potential future upgrade to wmA, csA, and/or Performance Plus

“The primary business driver is to achieve significantly lower processing costs. Project ROI should be no more than 12-18 months.”

“Effective October 12, 2012 this becomes a “closed block of business”.


• Respond to current market conditions [in the annuity market] by moving to a cost effective technological platform offering

• zLinux architecture will provide efficiencies during periods of intense processing (month / quarter end). zLinux under Integrated Facilities for Linux (IFL) is most efficient when fully loaded

• Additional Test Regions can be spun off easily as needed and can support more contracts at no additional cost

• Positions John Hancock for future strategic enterprise technology upgrades

• Target of 40% cost reduction per year in policy processing costs

• 18 month project (March 2011 – August 2012)

• Actual ROI = 12 months

Requirements – The Customer’s View


• Exploit Micro Focus Enterprise Product Set to address IT strategy and application modernization needs for CSC’s client base

• Speed/Time-to-Productivity - faster application service delivery

• Solution Capabilities - Holistic comprehension of applications, business processes and IP

- Development process - expedite application updates and development

- Testing cycles - quality assured applications minimize risk to the business

- Production - optimize applications, on and off the mainframe

The Solution - Overview


Approach - Why Linux on z/OS? • Keeping it simple – do more with less:

Linux on System z adds the IBM System z core strengths that distinguish the System z from the other platforms to the Linux applications. These IT strengths manifest as business advantages, helping your organization to: – Reduce cost through operational and energy efficiency – Improve service with simplified service management and business integration – Manage risk with resiliency and security features

• Leverage investment in existing mainframe processor Other alternatives prove to be more complex and costly (i.e.. p Series)

zLinux running on z/VM is the most cost effective and secure platform available to move your mainframe applications to a distributed platform. This is especially

true if you own your mainframe.

http://www-03.ibm.com/systems/z/os/linux/about/index.html

http://www-03.ibm.com/systems/z/os/linux/about/index.html�


Project Results

• Operating Cost Reduction

– Actual reduction is approximately 42% after ROI

– Met budget for hardware and software costs

• Project Timeline & Cost – Project completed from inception to production in 18 months

– (Target implementation was originally set at 17 month mark)

– Project came in on budget, balanced onshore/offshore resource spend, and maintained cost containment on vendor hardware/software


Project Results cont’d

• User Satisfaction

– Client is pleased with ease of implementation after initial delay of 1 month

– Client has had no major outages and very few defects opened since go-live date

• Performance – Performance metrics for batch cycle and CICS are on par or better than

zOS

– No major “gotcha” on system design or performance since launch

– Meeting all major Service Level Agreements

– Several efficiencies were identified toward the end of the project and have already been implemented post launch

– CSC best practices will monitor performance for additional efficiencies


Time to Implement

NOTE: Depending on the project scope, the time to implement can be greatly reduced in future implementations.


Project Go Live – 8/13/2012

Return on Investment

ROI Realized – 2013Q4


Lessons Learned

• Project Phases

– Use of CSC Global Project Management Framework (GPMF) and Delivery Assurance/PMO processes helped keep the project on schedule and budget

– More time needed in the project planning and initiation phases will ensure well documented requirements (LTM/PTM) for cross functional use

– Resource needs in key areas (DBA, SuSE Linux, etc.) are key to the success of the project. Subject Matter Experts and Architect oversight is required

– Project was successfully broken down into key sub projects

– Managed scope creep through change control procedure documented in Project Definition


Lessons Learned

• Technology

– Micro Focus partnership played key role in the project’s success

– The number of required IFL’s was understated initially (5 were planned, but only 2 were purchased for FY12). 4 was optimum and will be planned for comparable installations going forward. Note: # of IFLs vary by processor size

– Key technology and hardware/software decisions made throughout the project will allow for more efficient use of time in subsequent installations/projects

– Several key decisions such as use of existing DASD allowed for reuse of existing processes such as Disaster Recovery. Use of distributed version of existing job scheduling tool eliminated hours of work planned for the build of the schedule. Security solution still leverages mainframe process software.

– There were many different ways to solve for technological needs (i.e.. SuSE vs. Red Hat), however a template now exists that can be used for future work, therefore eliminating time spent on software evaluation and proof of concept

– Learning is ongoing. For example, benefits of moving to EXT4 file system was realized when working with a copy of the database used for month end processing. This shaved three hours off our run time at month end!


Lessons Learned

• Testing

– Testing approach allowed for significant time in CSC and client testing

– Flexibility of the zLinux solution allowed for CSC to quickly create testing environments when needed (i.e.. Certification, Model Office, etc.)

– A lot of time was spent in CSC performance testing, but time was built into the schedule to allow for it

– Parallel testing activities allowed for CSC performance testing and more than 40 client Model Office test cycles

– Project went live in production with no outstanding defects

– Recommend testing process and sufficient environments/servers to do system level testing for enhancements and efficiencies


Summary – A New Frontier

• A CSC zLinux/Micro Focus Offering:

– Will solve for customers’ long term technology needs on a distributed platform – Will greatly reduce operating costs at a time when profits are at all time lows for

investment products – Will create greater flexibility for development and testing – Can be tailored to any CSC product offering

• CSC can get you there by leveraging: – CSC resources across the globe – CSC program and project management capabilities – CSC project oversight – CSC partnerships and global alliances with key suppliers and vendors – Proven tools, applications, and processes – Experienced delivery team with technical, business, and Micro Focus expertise

• A CSC zLinux and Micro Focus Solution: – Can be expanded to most Cobol application currently on an IBM mainframe – Can be part of an in-house or hosted solution


Thank You

QUESTIONS?

Thank you

Micro Focus and CSC - Gartner

Technology

Transcript of Micro Focus and CSC - Gartner