1. CIO Advisory Services
Aligning Strategies, Business Processes and Technologies
Mainframe Environment: Continue, Migrate or Retire?
Venkatesh P. Iyer
IT Management Consultant
IT Strategy and Analytics
Business Process Management Somerset, NJ 08873
IT Execution T: 732 485 8658
E: vpiadvisors@gmail.com

2. Aligning Strategies, Business Processes and Technologies
Credentials
Venkatesh P. Iyer
CIO Advisory Services, IT Management Consultant
Qualifications:
Client focused management consultant in technology strategy with fifteen years of extensive experience in business of technology and
core technologies.
•Areas of specialization include IT Strategy, Enterprise Architecture, IT Analytics, large‐scale Program/ Project Management (PMO) and
software Pre‐Sales.
•Strong skills in Server‐Virtualization, Service Oriented Architecture (SOA), Business Process Management (BPM) and Middleware (Java
EE)
•Extensive skills and experience in linking business strategy, operations and technology implementation using high impact
methodologies
•Excellent team leader and mentor, with sound business understanding coupled with a strong technical foundation. Strong people
skills, works well with senior management, end‐users, and business/ technical teams
•Skilled at guiding clients such as Allstate, Goldman Sachs, Citi, American Express, Comcast, AXATech, Aetna, Sun Chemical, Merrill
Lynch, AT&T etc to reach sound economic IT strategies to meet their critical business requirements
Education:
NEW YORK UNIVERSITY, New York, New York,
Leonard N. Stern School of Business, Master of Business Administration, 2003
UNIVERSITY OF PUNE, Pune, India,
Master of Computer Applications, 1993
IT Strategy and Analytics Business Process Management IT Execution

3. Aligning Strategies, Business Processes and Technologies
Agenda
Overview of Mainframe
Leading questions for IT Management
Proposed Approach
IT Strategy and Analytics Business Process Management IT Execution

4. Aligning Strategies, Business Processes and Technologies
Evolution of Mainframes
System z10 Overview
IBM Mainframe Evolution in recent years
• Total system capacity: 64‐way server
• First model powered by the z10 quad core
processing engines
Launched in Feb‐2008
• Supports server‐virtualization. Further, the
virtual‐machines use internal I/O pathways
System z10
Capabilities
instead of external networks thereby having
minimal impact on performance
• Can support up to 1.5 terabytes of real memory
System z9
per server
• Initial benchmarks shows z10 to be extremely
zSeries
energy efficient – one z10 machine has the
computing power of 1,500 standard business
servers, but are smaller and 85% more energy‐
2000 2005 2008
efficient than such a server cluster
IT Strategy and Analytics Business Process Management IT Execution

5. Aligning Strategies, Business Processes and Technologies
Trends in the Computing Industry and their impact on Mainframes
Growth in IBM quot;MIPSquot; Comments
• Despite the adoption of
distributed systems and
• Despite many claims of its imminent demise,
10,000 G4 z9109
G5 G6 z900 z990
in particular the massive
z800 z890
2Q97 3Q05
3Q98 2Q99 4Q00 2Q03
9,000 1Q02 2Q04
proliferation of x86/
IBM Mainframe still continues to be a crucial
8,000
Windows and x86/ Linux
part of the computing infrastructure of many
7,000
INVENTORY (KMIPS)
platforms, IBM
6,000
mainframe continues to
large firms
5,000
be a formidable
4,000
competitor in the
3,000
• While the capital costs of x86/ Windows and
Enterprise server
2,000
computing business.
x86/ Linux is low, their massive proliferation is
1,000
0
having few unintended consequences:
1Q97
2Q97
3Q97
4Q97
1Q98
2Q98
3Q98
4Q98
1Q99
2Q99
3Q99
4Q99
1Q00
2Q00
3Q00
4Q00
1Q01
2Q01
3Q01
4Q01
1Q02
2Q02
3Q02
4Q02
1Q03
2Q03
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04
1Q05
2Q05
3Q05
4Q05
• The growth of MIPS over
the past years has been
CAGR 1997-2000 = 26% CAGR 2000-2005 = 19%
– Leading to excess computing capacities
impressive
– Significant rise in the demand for storage,
Trends in servers purchases, power and FTE spend cooling and wattage in datacenter
• Interestingly, even
– Growing software expenses since many
though the number of
servers purchased in
software vendors charge for license fees by
growing, its ratio is
the number of CPUs of the underlying hosts
declined compared to
the ratio of FTE costs
• The FTE costs esp. in the technology operations
• On the hand, FTE costs
group is becoming a major cost‐driver in the
are growing at a very
Total Cost of Ownership (TCO)
high rate . Likewise,
power and cooling costs
are becoming extremely
• Factors like the rise of datacenter heating and
significant by themselves
and also because of their
cooling challenges have made Mainframes a
impact on datacenter
serious alternative to distributed computing
costs
IT Strategy and Analytics Business Process Management IT Execution

6. Aligning Strategies, Business Processes and Technologies
Point of Views (POVs) on Mainframe
Against Neutral In‐favor
• There is a decline in Mainframe • Many big firms still have crucial • Mainframes now support newer
market business logic implemented and technologies like J2EE, Linux, SOA, grid
executed on mainframe Virtualization etc
• Mainframes are expensive
• IBM continues to increase its portfolio
compared to distributed
of applications for the mainframe and
systems
promote ISV solutions e.g. WebSphere
Application Server has been developed
• Mainframe talent will become
for the mainframe
scarce in future
• Mainframe skills are available in
• X86/ Windows and x86/ Linux
emerging economies like India, China
architecture are significantly
• There is stable growth in installed MIPS
less expensive than Mainframes
and they have been massively • Gartner predicts that the mainframe
adopted by big enterprises will continue to play a significant role
in enterprises during the next five
years
There are compelling arguments along the entire spectrum. Firms need to take a holistic view and be
very judicious in crafting their overall computing/ mainframe strategy to maximize benefits while
minimizing the risks at the same time
IT Strategy and Analytics Business Process Management IT Execution

7. Aligning Strategies, Business Processes and Technologies
Agenda
Overview of Mainframe
Leading questions for IT Management
Proposed Approach
IT Strategy and Analytics Business Process Management IT Execution

8. Aligning Strategies, Business Processes and Technologies
Key Questions for Senior IT Management
• Is my organization efficient with my Computing strategy in general and with mainframes in
particular? What is my current spend on mainframe? What is the cost by applications?
• Are there standardized approach in my organization to classify mainframe applications?
• Should I continue to use mainframes? Should I invest more or less in mainframes?
• Does my organization have a sound server‐chargeback model?
• Should I plan to migrate my mainframe applications to distributed systems? If yes, what
applications should I migrate off mainframe? How easy/ challenging would it be to migrate these
applications off mainframe?
• What business processes are supported by these mainframe applications?
• Are there any immediate cost‐saving opportunities? How should I go about identifying them and
prioritizing them?
• Would I be able to seamlessly “SOA” enable mainframe applications?
CIO Advisory Services and <partners> can assist you in developing a comprehensive Mainframe
strategy and with the implementation of the strategy
IT Strategy and Analytics Business Process Management IT Execution

9. Aligning Strategies, Business Processes and Technologies
Agenda
Overview of Mainframe
Leading questions for IT Management
Proposed Approach
IT Strategy and Analytics Business Process Management IT Execution

10. Aligning Strategies, Business Processes and Technologies
Planned Approach
SI Partner to lead these phases
Analysis
Analysis Implementation Rollout Transition
Implementation Rollout Transition
• Review the firm’s 1 – 3 years IT strategy and
core‐infrastructure strategy imperatives
• Assess the firm’s current Mainframe
infrastructure using qualitative
characteristics and quantitative metrics along
these dimensions:
Financial: System costs, resource costs ,
Datacenter costs etc
Operations: Technology operations, Capacity
assessments, Resourcing model etc
Technology: Hardware, OS, IT capacity
assessments, HW‐OS Risk assessments
• Assess the client’s on‐going mainframe
initiatives
• Define the target state and identify gaps Harness Analytics to develop key Insights
Harness Analytics to develop key Insights
• Propose recommendations to create an Through Insights, propose actionable
Through Insights, propose actionable
optimal computing/ mainframe environment
recommendations
and develop a comprehensive roadmap recommendations
• Scope out initiatives along with detailed Implement these recommendations through rigorous
Implement these recommendations through rigorous
project plans and resource blueprints
Program management and realize the benefits
Program management and realize the benefits
• Institute a Program Management Office
(PMO) with best practices (processes and
tools) to ensure a successful execution
IT Strategy and Analytics Business Process Management IT Execution

11. Aligning Strategies, Business Processes and Technologies
Summary
• CIO Advisory Services and <partners> can assist your firm in crafting and implementing a
sound Mainframe strategies
• With its extensive experience in IT Strategy, Analytics, Program Management etc, CIO
Advisory Service can not only offer analytical models, best practices etc but also ensure a
successful execution of the proposed strategies
IT Strategy and Analytics Business Process Management IT Execution