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Managing mainframe costs
 

Managing mainframe costs

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Control your mainframe management costs and improve the performance and productivity of your enterprise.

Control your mainframe management costs and improve the performance and productivity of your enterprise.

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    Managing mainframe costs Managing mainframe costs Document Transcript

    • Managing mainframe costsViewpoint paper CONTROL your mainframe management costs and improve the performance and productivity of your enterprise. Organizations that continue to deploy mainframes for their reliability, availability, and serviceability have several options in the face of rising management costs. Many are finding that migrating applications to new platforms, modernizing existing applications and infrastructure, and outsourcing the management of infrastructure and applications to a third-party solutions provider generate significant mainframe-related savings, while more effectively meeting their business objectives.
    • Table of contentsConsidering your mainframe management options........1Mainframe operations are getting more costly..............2Ways to lower your mainframe hardware costs. ...........3 .Ways to lower your mainframe software costs..............3Ways to lower your mainframe people costs................4Ways to lower other mainframe costs..........................4How to take command of your mainframe investments...5Why outsourcing your mainframe operationscan reduce costs and mitigate risk. .............................5 .Your next steps. .......................................................5 .About the authors.....................................................6
    • If the mainframe remains strategic to your ITorganization, you need to continue to investin people and skills needed to support thatenvironment—or you could consider makingthat the responsibility of your mainframemanagement service provider. Considering your mainframe operations and then suggest various options that can help control them. These options include: management options • Outsourcing your applications and infrastructure Mainframe computing makes sense for a lot • Migrating your workloads to new platforms of enterprises like yours. Mainframes are or processors powerful and robust, able to handle millions of transactions every second. They’re considered to • Modernizing your applications and infrastructure be reliable, easy to service, and secure. Plus, they in place typically boast high utilization rates, low energy For many enterprises, a combination of all three— consumption, and require fewer technicians than managed by an experienced, third-party solution distributed computing environments. provider—might make the most sense. For example, On the whole, most support costs related to the you could outsource the management of your mainframe platform continue to rise for a variety environment, selectively re-host a few apps, modernize of reasons—including dealing with an aging and some others, and outsource the remaining aspects of disappearing workforce. It’s becoming increasingly your application management to create the greatest expensive and cumbersome to maintain and cumulative value. The most important thing is that update legacy mainframe hardware, software, and you have a choice, and outsourcing can improve the applications. In fact, Gartner Research estimates effectiveness of those choices. that the average in-house cost of managing a mainframe infrastructure environment is 7% of an Figure 1 Mainframe Cost as a % of Total IT Cost organization’s annual IT spend—and it can reach as high as 20% (see Fig. 1). This doesn’t even 25% include the cost of managing and modernizing the applications. 20% In these days of needing to do more with less, you’re looking at anything that can drive down costs while at 15% the same time mitigate risk and improve productivity 10% and performance. When it comes to your mainframe operations and expenses, there are several things you 7.1% 5% can do to gain greater control of your environment. Certain actions can reduce what you spend by 15% to 0% 20%, and even more. This viewpoint paper will examine Range Average Middle Quartiles the various factors that are driving up hardware, software, people, and other costs within most mainframe Source: Gartner IT Key Metrics Data (Dec. 2010) 1
    • Mainframe operations are getting • Leveraging the assets, contracts, and operations of a third-party services provider, including managementmore costly tools and existing enterprise agreements withAccording to a 2010 Gartner Research report, mainframe vendors.organizations with mainframe environments are • Standardizing and automating hardware, software,allocating an average of 43% of their total mainframe and processes.IT spend on software, 30% on personnel, 19% on • Upgrading hardware and software to improve costshardware, and 7% on facilities, disaster recovery, and operational efficiency.and connectivity costs (1% remains unallocated). It’simportant to note, too, that these numbers do not • Eliminating unnecessary products or replacinginclude the cost of maintaining, developing, and products with more cost-effective options.modernizing mainframe applications. Also, note that By implementing some combination of the above, HPsoftware and personnel are the two areas to which has found that it is common for organizations thatoutsourcing can bring the most significant savings, as choose to outsource their infrastructure management toyou’ll see later in this paper. generate up to 20% cost savings—and potentially upHP’s decades of experience in helping enterprises to 40% if they outsource application maintenance orof all types and sizes manage their IT infrastructure, modernize their applications as well (see Fig. 2). Let’sincluding mainframe operations, has shown that take a closer look at ways to lower costs and improveorganizations can derive significant cost savings in the productivity and utilization while mitigating risk. Infollowing ways: each case, one viable option could be to entrust the management of your mainframe environment to a• Right-sizing their environment and support staff, third-party technology services provider. which includes exploiting sub-capacity pricing, leveraging their staffing, embracing best shore resources, and eliminating unnecessary hardware.Figure 2So, what options do you have? Achieve up to 40% savings Outsource Migrate Modernize • Transfer management responsibility • Reduce SW license costs • Enable IT flexibility • Achieve predictable operating • Move to more affordable • Reduce risk expense platforms/processors • Expand operational savings • Right-size environment & staff • Free up funds and staff • Leverage resources & buying power to modernize • Simplify, standardize & automate Improve governance, technology currency & access to skilled resources to reduce risk Outsource applications & Migrate Migrate workloads to Modernize applications and infrastructure new platforms or processors infrastructure in place Ongoing IT management, server, storage, applications 2
    • Ways to lower your mainframe Take advantage of new hardware features and functionshardware costs Older machines are unable to take advantage ofThere are several widely accepted, proven ways contemporary features such as specialty engines,organizations can begin to gain greater control over which can be leveraged to redistribute workloads andtheir mainframe hardware costs, including these: reduce costs. The point is that if you’re contemplating a mainframe upgrade, you should investigate optionsReplace your aging and unsupported to reduce your MIPS consumption. If your current MIPSinfrastructure with newer equipment consumption is driving you to consider a platformIf your hardware is already paid for, it might seem migration, evaluate whether you can avoid thelogical that it makes sense to keep it. But consider upgrade by moving CPU-intensive tasks away from thethese factors: general processor.• Aging hardware can ultimately be more expensive than buying new equipment because of the In other words, it’s important to proactively evaluate operational costs. new technologies and ways to use existing mainframe technologies to identify cost-reduction opportunities.• As equipment ages, maintenance costs increase With outsourcing, it is your service provider’s job to annually. keep you on supported hardware, to invest the capital• Older machines are often unsupported by the necessary to obtain new machines, to refresh this vendor and non-upgradeable. technology, and to support workload migrations.• Older hardware is unable to exploit efficiencies found in newer hardware and software products. Ways to lower your mainframe• Year-over-year software cost savings associated software costs with newer mainframe models disappear as new Gartner’s research referenced earlier revealed methods of billing are introduced by software that software represents the biggest proportion of vendors. mainframe spending and that many organizations findRight-size under-utilized, over-provisioned it difficult to manage this element. Doing so properlyenvironments depends on well-structured and proactive assetMany organizations deploy bigger mainframes than management and procurement teams to maintain athey need, so they may be paying for more capacity strong knowledge of mainframe software negotiationand software than they should. Perhaps you required tactics. Proven cost-management techniques and1,000 MIPS (million instructions per second) last year, procedures include:but your workload is shrinking. Keeping a larger-than- Staying currentnecessary box results in over-paying for software. If you’re running old and depreciated hardware,Conversely, your workloads may be increasing, you’re probably not getting the software costrequiring more capacity, but you don’t want to buy advantages you’d get from a newer model. It costsnew hardware. The challenge is to accommodate your more for organizations to support older products,capacity fluctuations as they occur. Outsourcing is a and vendors typically charge a premium price fortool that can enable this without the typical associated maintenance. Lack of vendor support—coupled withcapital requirement. any software customization necessary to make theTransition away from owning your own hardware applications run in your environment—may alsoDepending on the size and scale of your operation increase operational risk for your organization.and the degree of leverage and software cost savings Standardizing and automating your softwareyou can achieve on your own, it might be financially upgrade processadvantageous for you to move away from buying, Vendors constantly place upward pressure onmaintaining, and refreshing your own mainframe, customers to move to the latest software versions—storage, and disaster-recovery infrastructure. The and mainframe operations are constantly upgrading,option here is to engage an outsourcing arrangement especially when they’re running a complexwhere you leverage your service provider’s expertise, environment with many products from many vendors.buying power, and ability to host multiple clients on A major issue is that upgrades take time, money, andleveraged hardware—which spreads expenses among resources. This increases costs, takes support staffmultiple clients. For budget-constrained organizations away from day to day operations, and introducesthat need to justify new capital expenses every couple new issues into your environment. Standardizing andof years for hardware refreshes, outsourcing can automating your software upgrade process reduceseliminate mainframe-related capital requirements and risk and software-related expenses.turn them into predictable operational expenses. 3
    • Standardizing to reduce the number of products in Ways to lower other mainframe costsyour environmentMany operations are running too many software Several other issues tend to drive up cost and risk.products within their environments. They should These include facility constraints, obsolete technology,evaluate their entire software portfolio, look for unprecedented data growth, and aging legacysoftware rationalization opportunities, eliminate applications. Here are some remedies to consider:duplicate and superfluous products, and seek lower- Free up space or leverage another facilitycost replacement alternatives. Keep in mind that some Nearly all organizations are running out of floorvendor software products are simply cost-prohibitive— space and power. Expanding or building new facilitieswith costs based on the size of the box. Contracts can be cost-prohibitive, so the choice comes downshould be negotiated for the most optimal terms, to finding ways to make better use of what you’veincluding variable workload pricing. got or finding co-location facilities. A third-party consultant can provide both services—or if they’re likeWays to lower your mainframe HP and don’t offer co-location services for mainframepeople costs environments, they can offer other cost-effective and low-risk alternatives.According to Gartner’s Key Metrics data, mainframesystems require proportionally fewer people Deploy new, efficient storage solutionsto operate them than do distributed computing The presence of obsolete tape technology withinenvironments—and support staff costs less as a result. many environments drives costs up; in fact, secondaryIn fact, the larger the mainframe installation, the more storage tape can account for up to more than $2 outefficient the labor component. Gartner also reported of every $3 spent on mainframe storage. If you’re inthat organizations are not cutting back on mainframe this situation, you should consider deploying newer,skills in the current economy. more efficient storage solutions such as electronic vaulting or disk-based solutions—eliminating physicalThat’s the good news. If mainframes remain strategic tape if possible. In some outsourced environments, theto your IT organization, you’ll need to continue to infrastructure is newer and leveraged, and customersinvest in people and skills needed to support that pay only for what they need without the need forenvironment—and Gartner predicts that severe, capital investment.recession-driven skill-cutting will lead to problemswhen budgets start to expand again. The issue is that Consolidate your storage environmententerprises running mainframe applications are faced Companies are also experiencing unprecedented datawith the challenge of aging and retiring mainframe growth, with too many storage systems, devices, andstaff. Even if/when you are forced to replace these pools to manage. The more disparate devices andresources, the knowledge that previous personnel environments you’re managing, the higher the cost perpossess is often lost when they leave. That means terabyte. One obvious solution is to consider usingthere’s often an incomplete transfer of knowledge, larger devices, creating fewer storage pools. This cancreating gaps in what you know about your own reduce the effort required to manage storage, whichenvironment. Plus, smaller environments often require in turn reduces the number of full-time employeesthe same set of resources as mid-size environments, needed to manage the environment, thereby reducingwhich means that personnel costs may be higher than overall costs.necessary for a smaller environment. Lack of sufficient direct access storage devicesSome organizations take advantage of vendor- (DASDs) also drives up costs. Failures from running outsponsored mainframe education resources. Others of space are very expensive to resolve—much morelook to run their operations in lower-cost locations or than simply investing in the right amount of DASD inconsolidate global workloads to a single location. the first place. The solution: consolidate, standardizeAnd others look for outsourced management. After mainframe storage technology, and right-size theall, it’s difficult to focus on staying current, upgrading storage environment.hardware and software environments, testing Modernize your legacy applicationschanges, evaluating new technologies, and driving Do your mainframe applications even belong on yourstandardization and other operational improvements mainframe? Maintaining legacy applications caninto the environment—all while trying to manage day- cost a lot of money. Modernizing applications—byto-day operations. eliminating dead or duplicated code—can reduce MIPS requirements, software costs, full-time employee costs, and disaster recovery requirements. Plus, 4
    • HP estimates that outsourcing the management of employing a few administrators to run everything,mainframe applications can save anywhere from 15% you’ll have several trained experts at your call,to 40% in application maintenance costs. each specializing in supporting each area of the environment.How to take command of your By embracing a third-party technology solutionsmainframe investments provider like HP, you can:If you’re one of the thousands of enterprises still • Obtain an objective adviser and business partnerrunning a mainframe environment and are searching that is committed to your successfor ways to lower your operational costs, improve • Save moneyperformance, and mitigate risk, here are several steps • Gain instant access to the right mainframe resourcesto consider: • Right-size your infrastructure and support staff• Rationalize what’s running on your mainframe, and optimize the applications that you choose to • Access what you need when you need it and get continue to run on the platform. rid of it when you don’t• Don’t deploy new technology just for the sake of • Speed up transformation to modernized deploying new technology. Exploit new features and infrastructure and applications functions you may not be taking advantage of—but • Increase automation only if it makes operational and financial sense. • Focus on innovation and core competencies• Rationalize your software portfolio and negotiate • Adopt new technology innovations faster and more more favorable terms with mainframe software affordably vendors. • Benefit from decades of best practices and lessons• Simplify and standardize your operations on a learned consistent set of operational support processes and • Expand your global reach tools globally.• Don’t introduce new (and possibly disruptive) Your next steps technology into the environment unless there is a good business or technical reason. For years, HP Managed Mainframe Services has provided mainframe hosting, storage, disaster recovery,• Automate wherever you can. This will speed things print management, and application management up, reduce risks, and enable you to do more with services for clients’ IBM z/Series mainframe the same or fewer resources. environments, as well as custom services for Transaction• Implement more current technology hardware and Processing Facility, Virtual Machine, Virtual Storage tape technology as your budget will allow. Extended, and z/Linux platforms. These global• Invest in your mainframe staff development program. services are flexibly designed to meet your mainframe Train and recognize mainframe talent. management needs on-site, remotely, or from one of our leveraged facilities. Our mainframe experts helpWhy outsourcing your mainframe you reduce capital expenditures and lower operatingoperations can reduce costs and costs. We keep your mission-critical environments up to date and up and running while you focus on othermitigate risk areas of your business.Mainframe outsourcing might be the right option for If you’re interested in learning more aboutyou. Third-party solutions providers have been known mainframe outsourcing in general—or HPto help clients save up to 20% or more on just the Managed Mainframe Services in particular—infrastructure management aspects alone. Outsourcing please contact your HP representative or visit:can also provide other business benefits discussed in www.hp.com/enterprise/mainframe. Ask forthis paper. Analysts such as Gartner Research say they information about a quick and easy mainframeexpect more and more enterprises to outsource their outsourcing assessment from HP that can help youmainframe operation in the coming years. determine the value of outsourcing for your business.Outsourcing can offer instant benefits and long-termoperational improvements that lead to higher qualityand lower costs. Make your mainframe operationssomeone else’s responsibility while you focus oninitiatives that matter to your business. Rather than 5
    • About the authors Kathy Cameron Kathy Cameron leads portfolio development and engineering globally for Managed Mainframe Services at HP Enterprise Services. She and her team evaluate, select, and manage the software products that HP deploys to mainframe environments to support daily operations for HP clients. Her organization also engineers mainframe automation solutions that HP uses for enterprise system management. Cameron has more than 25 years of diverse experience in IT outsourcing, encompassing storage management, database management, network support, life cycle management of software products, client relationships, and vendor negotiations. She has managed both mainframe systems programmers and midrange systems administrators throughout her career. Previously, she served as a regional manager of software services and as a delivery lead supporting new HP outsourcing clients. She has also held management positions at EDS, WorldCom, and MCI. She began her IT outsourcing career serving as a member of the United States Navy. Larry Draper Larry Draper is a senior information systems architect for the Data Center Services service line at HP Enterprise Services, where he provides mainframe architecture support for HP’s global mainframe hosting offering (Managed Mainframe Services) and related services. He has more than 40 years of experience in the IT industry, with a strong emphasis on all aspects of mainframe systems. He applies proven techniques in platform design and engineering to improve systems and management processes for HP’s mainframe services clients. His deep expertise derives from his work for a variety of enterprise clients and centralized support organizations. Share with colleagues Get connected www.hp.com/go/getconnected Get the insider view on tech trends, alerts, and HP solutions for better business outcomes© Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The onlywarranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing hereinshould be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.4AA3-8428ENW, Created December 2011