A Rational approach to application migration and modernization
IBM Software July 2011Thought Leadership White PaperEnterprise modernization:A Rational approachAshok Reddy, Director, Offering Strategy and Delivery, EnterpriseModernization & Compilers, IBM Software Group, Rational
2 Enterprise modernization: A Rational approachIntroduction In this paper you will learn about a new, broad, and all-Over the past half century, businesses of all types across the encompassing multiplatform view of modernization in the con-globe have made signiﬁcant investments in software and systems text of applications, people and teams. Our goal is to help you:to automate business processes, deliver innovative capabilities,and integrate operations. As technology has evolved, organiza- ● Find smarter ways to design, build, maintain and extend thetions have carefully considered choices about platforms, pro- applications that run the business.gramming languages, and methodologies in order to address ● Choose the best procurement model for your organization,business needs in the most effective ways possible as each new including cloud and packaged applications.approach or capability has become available. But multiple ● Provide individual practitioners with the best tools available todecisions about computing infrastructure made over a number optimize their productivity.of years have led to deeply embedded and often disjointed ● Enable your organizationally, geographically and genera-archeological layers of technology and information assets. tionally diverse practitioners to team and collaborate as effectively and efficiently as possible.Organizations ﬁnd themselves with an incredibly diverse and ● Understand the importance of process improvement linked toevolving set of contributors distributed across geographies appropriate success measures.and generations with different skills, needs, and expectations. ● Develop a strategic road map that begins with a clear under-Furthermore, new technologies continue to emerge at an standing of your current portfolio of applications and leadsincreasing pace. toward a mature application portfolio management approach and strategy, delivering ROI gains incrementally.Today, technology is what organizations rely on to differentiate ● And, most critically, learn how to accomplish all of the abovetheir core capabilities, control costs, and drive sustainable while continuing to deliver innovative capabilities, controlgrowth. Mapping the best technology strategy to desired busi- costs and mitigate risk.ness process improvements has never been more mission-critical,yet it has never been more complex. Realizing that the status Key challenges in enterprisequo is no longer a viable choice, organizations must consider modernizationways to modernize their technology infrastructure to deliver A typical view of IT modernization shifts immediately to phrasesdifferentiated products and services. like “legacy modernization” and assumes the discussion will be about mainframe systems and software. This is only partly true;Outsourcing is a common path today for at least a portion, if “legacy” means any existing system, whether it was created lastnot all of, an organization’s IT operations. Leveraging packaged, week, or 30 years ago.commercial-off-the-shelf (COTS) applications is anothercommonly considered choice. The scope of IT modernization encompasses all systems, includ- ing distributed applications written in Java™, Microsoft VisualA third option, and one that is the primary focus of this paper, is Basic, C, C++, C#, PHP, and more. It’s about open source,modernizing existing applications, processes, and development Blackberries, iPhones, outsourcing, process improvement, andinfrastructure. These options are not mutually exclusive, and ﬁnding the right combination of assets to ensure that the tech-there is no single, correct “one size ﬁts all” solution. The key nology is delivering the necessary business results. Ultimately,for your business is to strike the right balance among numerous it’s about ensuring that the IT organization can support the vaststrategic options in order to optimize your desired business sea of challenges that businesses are confronted with.results.
IBM Software 3Here are the primary challenges as IBM sees them. A good example of aging application technology: It is estimated that there are approximately 200 billion lines of COBOL codePoor alignment between the IT strategy and the business in production, with 5 billion lines of new code added to thesestrategy is a near universal problem. For decades, corporate highly valued core production systems each year. As much asexecutives and department managers have complained about 70 percent of business data worldwide is stored on mainframesbudget overruns and schedule delays of complex IT projects. and approximately 80 percent of daily business transactions areUnderlying causes include the intricacy and size of modern processed in COBOL. There are about 1.5 - 2 million develop-applications, as well as poor communication between business, ers globally developing and maintaining COBOL code today.1which features operational and IT experts who speak dissimilarjargon. The accelerating pace of evolving technologies only In addition, the aging of the current IT work force createsexacerbates the problem. The 2008 - 2009 economic downturn concern that they will walk away with much of the business andemphasized the need for agility as many companies shifted their technical knowledge accumulated over decades of building andbusiness strategy, both to reduce cost and to seek competitive maintaining the applications that run the business. The difficultyadvantage. Those who can shift more quickly and efficiently can in attracting new talent to a green-screen environment canset themselves apart from the competition. also stiﬂe innovation and potentially put your organization at a competitive disadvantage. Organizations must strike a balanceHigh application maintenance costs consume 70 - 80 percent between (a) training existing personnel with deep businessof most IT budgets, given the sheer mass of code and assets to knowledge and experience and (b) hiring fresh personnel withbe maintained. The lack of knowledge about the value, costs, modern technology skills but less business logic knowledge andinterdependencies, and potential change impact relative to those experience. Reaching the right balance in resources is essential toassets is a key business challenge. Many companies seek modest minimizing risk on a modernization project.improvements (2 - 5 percent) in annual maintenance productiv-ity, based on more effective use of current tools, maintenance The lack of collaboration among different developmentskills, and life cycle governance methods. Achieving more teams is a challenge across multiple dimensions. You may man-signiﬁcant maintenance productivity improvements will require age multiple development organizations across mainframes andchanges to one or more of these IT expense factors. distributed systems, perhaps in multiple physical locations, and could be relying on outsourced personnel. This can potentiallyInﬂexible, aging and poorly integrated IT systems can also cause domain, cultural and coordination challenges, especiallyhinder your ability to quickly innovate and deliver new products recognizing that a majority of your enterprise applicationsand services to your customers. Today’s business users have are multiplatform in nature. Your company may have growngrown accustomed to the ease of use of modern web-based through acquisition, requiring application and hardware consoli-applications. However, many organizations still depend on dation and painful changes in the merged organization. Thetraditional green-screen or character-based applications which use of different tools and processes among separate developmentcan be inefficient, difficult to use and hard to change. Finding teams creates a lack visibility into how, for example, changes incost-effective ways to modernize and extend these IT systems one part of an application on one platform will impact otherto deliver new differentiated service offerings can deliver greater parts of the application on another platform. This lack of inte-return on technology investments and avoid costly rewrites. gration translates to signiﬁcantly reduced efficiency, lower quality and increased costs.
4 Enterprise modernization: A Rational approachImproving application knowledge, In this section, I will consider each of these strategies in thedevelopment skills, team collaboration, order shown in Figure 1.and infrastructure efficiencyThe IBM® Rational® approach to modernizing and leveraging Modernizing your application portfolioexisting core system applications is based on four types of project Lowering application maintenance costs and improving ITstrategies, as shown in Figure 1. When combined, these four agility requires a detailed understanding of your applicationstrategies can help organizations to: assets and the business processes they support. When the business wants to change strategies and business process changes● Better understand their core application assets and how best are required, understanding your application assets and interrela- to extend them or reuse them in building new applications. tionships will allow the IT organization to respond more quickly. By leveraging proven application functionality, customers may You can move your IT organization from requiring several reduce project risk, reduce project timetables and execute with months to make small legacy application changes to making fewer resources, thus saving cost. more signiﬁcant changes in less time. Improved life cycle gover-● Empower their development organization with new skills to nance will help your company maintain application asset knowl- rapidly translate green screen interfaces to modern point-and- edge as you shift to a more agile development and maintenance click GUIs while allowing both host and distributed develop- organization. The ultimate goal here is to increase ﬂexibility ers to use a common integrated development environment through revitalized applications interface—boosting productivity and reducing project cost.● Improve team collaboration for tiered applications across host Here are several ways to accomplish this: and distributed environments and across multiple development Reduce maintenance costs and improve productivity by centers—perhaps in multiple geographies—to reduce project recovering lost application knowledge timelines and cost. Many organizations invest millions of dollars in business intelli-● Optimize the value received from customer’s host-based gence software to collect and analyze operational data in order hardware investments and signiﬁcantly improve development to gain better insight and help optimize their business opera- productivity. tions. Yet there is little or no investment made to understand the systems that capture and process most of that operational data. You cannot modernize what you do not understand. The fact is that most organizations still rely on the knowledge in people’s Unify Optimize Revitalize Applications Empower People Teams Infrastructure heads regarding the structure of mission critical IT systems that run the business. And the problem is, as those people move to other projects or retire, this information goes with them and this critical knowledge is frequently lost. Application analysis tools can help improve the productivity of your IT staff by automating the manual processes used by developers, analysts, and others to learn about existing legacyFigure 1: The IBM Rational approach to modernizing and leveraging existing systems. Application discovery and analysis tools create an elec-core system applications is based on four types of project strategies. tronic inventory of all your IT assets by scanning millions of
IBM Software 7IBM offers solutions to help coordinate and consolidate these Improve predictability of project success throughmultiplatform development activities. Rational enterprise change governance and best practice guidanceand release management solutions help consolidate development Process improvement involves adopting best practices forprocesses and can help enhance collaboration and productivity processes and measurements. These are used to help accelerateacross multiple platforms at practically every stage of the applica- overall software delivery, minimize rework and reduce the costtion life cycle. By providing a consistent development process of change. Examples of best practices may include iterativeparadigm across all platforms, previously isolated development development, continuous integration, evolutionary architecture,teams can become integrated, thus enhancing team collabora- shared vision, and test management. Practices not only providetion, improving release coordination, and boosting operational guidance and techniques within a certain domain, they provideefficiency. an underlying philosophy for how to accomplish various aspects of development according to established methods. ProcessReduce risk and cost by focusing on quality across the improvements can provide visibility into—and control over—entire software delivery life cycle for all platforms risks, statuses and trends. By improving software deliverySoftware testing plays a critical role in the delivery of high- processes, teams can reduce development risk and cost, improvequality applications in today’s complex and multiplatform quality, and speed delivery of applications.enterprise IT systems. Statistics show that it is much morecost-effective to ﬁx software defects early in the development IBM Rational tools are delivered with various templates tolife cycle rather than later or post-deployment, when it can be help teams follow well-established processes. In addition, thetwo to three orders of magnitude more expensive to ﬁx defects. tools are highly customizable to allow teams to use the tools inIBM offers solutions to help ensure end-to-end quality of the ways that work best for your organization. Teams can createapplications deployed on distributed, mainframe, and midrange dashboards and reports to give each stakeholder real-time insightplatforms. The software quality process begins by eliciting into the status of the project at all times, while making it easierrequirements that are well understood by all the key stakeholders for anyone, anywhere to share knowledge and collaborate morefrom both the business and IT teams. Requirements drive effectively.downstream design, implementation, and test phases of theproject and provide traceability throughout the software life Optimizing infrastructurecycle to help ensure that development is actually building and We have observed that, when organizations acquire powerfuldelivering solutions that will meet business needs. For example, new hardware platforms, they often don’t realize that up to halfyou can link test cases to requirements to help testing teams the generational performance improvement is made possibleidentify and focus their testing on the most critical capabilities through the compiler that’s been speciﬁcally designed for thatof the software system and stay current with changing require- hardware. A simple recompilation can help you to optimize thements. By integrating workﬂows and sharing data among ana- value you expect from your hardware investment. Additionally,lysts, developers and testers, organizations can help establish an many customers want to take development off their relativelyearly focus on quality and enable organizations to proactively expensive operations mainframe and create a more ﬂexible,address quality issues. You can also create dashboards to quickly low-cost mainframe development environment.assess the quality of the target application, address gaps inrequirements, adjust delivery dates, and shift developmentresources to help remediate any situations that will impactthe business.
8 Enterprise modernization: A Rational approachImprove performance and scalability with the latest perform developer-based build and unit testing of z/OS-hostedcompilers applications on their development PC without using System zA quick and low-risk way to improve performance and the hardware processing cycles. Rather, teams can perform theirscalability of your existing IT systems is to ensure that you mainframe application development and testing on their laptops.are leveraging the latest compiler technology. By periodically Developers won’t miss the middle-of-the-night work on testingupgrading your compilers, you not only take advantage of new applications on their production mainframe with their relativelylanguage features, extensions and usability improvements, you slow ISPF tools. This can help organizations manage their usealso get better application performance on new hardware with- of zEnterprise™ systems to control their development costsout any source code changes. This allows you to stay ahead of while realizing greater line of business costs savings. Rationalyour competition on the technology curve. Best of all, you do Developer for System z Unit Test feature helps lower the overallnot have to change your hardware to upgrade your compiler. cost of the mainframe development, making it more in line with distributed development.IBM continues to develop its industry-leading optimizationtechnology across multiple platforms, including IBM AIX®, IBM Rational modernization solutionsIBM i/OS, and Linux on IBM Power Systems™, and at workIBM z/OS® and IBM z/VM® on IBM System z®. Designed The following case studies help to describe how a variety of IBM cus-speciﬁcally to complement IBM processor architectures, tomers started their modernization journey by engaging one of theIBM compilers can help optimize the performance of commer- four strategies described earlier in this paper.cial and high-performance computing workloads. This canhelp reduce your CPU cycles to improve the returns on your Success story 1: Application Portfolio ManagementIBM hardware investment. Reduce risk by actively managing your application portfolio A major global ﬁnancial services company operating in overReduce the cost of your mainframe development 50 countries with 155,000 employees engaged in retail andenvironment commercial banking, credit cards, investment banking, wealthThe production mainframe infrastructure often runs at peak management, and investment management. They saved overcapacity, leaving a very small time window for mainframe devel- £2m in decommissioning redundant systems and infrastructureopment and testing, which could further delay the application by incorporating IBM Rational System Architect® software intodelivery time. Clearly this conﬂicts with more agile development the governance model to stop the initiation of projects that areapproaches that presume continuous availability of development not aligned to the target architecture. The business reprioritizedresources and the ability to rapidly develop and deploy new the importance of investing in infrastructure renewal. The cus-workload solutions. Organizations would like to free up their tomer was able to facilitate a joint board level IT and businessdevelopment MIPS, staff time, and other resources to support architecture committee to identify areas where spending was nottheir production environment. The IBM Rational Developer for aligned to their IT roadmap.System z Unit Test feature allows mainframe software teams to
IBM Software 9Success story 2: Web-enablement The new environment is helping the organization attractAchieve faster ROI by enabling your green screen younger developers, while developers currently using Rationalapplications as services Developer for System z software are seeing an estimatedAn ISV specializing in ﬁnancial services realized 94 percent 15 percent increase in development productivity and 10 percentsavings in development costs by web-enabling existing green increase in test productivity.screen applications. The challenge facing them was the anti-quated interface of their primary customer-facing application. “Our team now develops, debugs and tests with more conﬁ-The ISV was losing market share to competitors whose software dence, and it is clear that more and more people here will behad less functionality but better looking user interfaces. To using Rational Developer for System z,” noted Almut Geiger,reverse this trend the ISV needed to create an entirely new web product specialist at HVB IS.experience for the customer or face a continued loss of marketshare. As an initial solution, the company built a .NET applica- Trustmark National Bank found that its existing green-screention that cost $38 million and took nine months to complete. applications were often difficult to change for new businessIn the end, the application could only provide 20 percent of requirements. For example, many of the bank’s applicationsthe functionality of the original mainframe application, and the required well-formed user data that had to be validated by thenew system also required additional employees for testing and presentation layer. Trustmark National Bank did not want tomaintenance. In essence, if the ISV had adopted this new .NET reuse the same presentation interface, but they could not accessapplication, the company would have faced losing even more the back-end application without it. Trustmark carried out itsmarket share and spend more money to do so. Instead, they modernization initiative using Rational Developer for System zengaged an IBM partner who used IBM Rational Host Access and IBM CICS® Transaction Server. Rational Developer forTransformation Services (HATS) software to quickly create a System z software provided a development environment thatfully functioning web application out of its existing green screen helped Trustmark design and construct traditional mainframemainframe application. The project took 29 days and $2 million applications, web applications, and integrated service orientedto build, start to ﬁnish, and had zero defects. architecture-based composites quickly and efficiently. Utilizing the CICS Service Flow Feature of its CICS Transaction ServerSuccess story 3: Multiplatform application developmentImprove developer productivity and reduce costs by software, along with the Service Flow Modeler tool of Rationalleveraging modern tooling Developer for System z software, Trustmark National Bank wereUniCredit Group’s HVB IS sought to reduce development costs able to reduce costs and risk, while speeding application andand improve development and testing efficiency for new and service delivery through reuse of assets (rather than rebuildingexisting applications. They decided to consolidate their web and them). “The Service Flow modeling in Rational Developermainframe development efforts and leverage a similar develop- enabled us to convert our CICS screens to the web withoutment that would support both mainframe and distributed devel- any reprogramming. This reduced our risk, lowered cost,opment environments. HBV IS deployed Rational Developer saved months of work, and allowed us to complete the projectfor System z software to more than 200 developers who were on time.” said Paul Williams, Director of IT, Trustmarkdeveloping multiplatform applications for System z servers. National Bank.
10 Enterprise modernization: A Rational approachSuccess story 4: Team development business application systems with the intent to provide guidanceDecreasing development time by standardizing on regarding modernization best practices to meet the goalsIBM Rational for System z determined in the EBVW.For Sodifrance’s many complex mainframe modernizationprojects, the company’s staff often required different tools for Consider taking ﬁrst steps with Application Portfolioeach phase, including requirements, change management, agile Managementdevelopment process management, builds, and more. In order to Application Portfolio Management (APM) is the process ofaccelerate the development and migration involved in modern- continually assessing and evaluating the IT portfolio based onization, Sodifrance sought an open and powerful integrated balanced business and technical ROI criteria. This information isdevelopment environment (IDE) that could be integrated then used to manage the transformation and align the portfoliowith its own Mia-Software products. Seeking to leverage the with the strategic needs of the business.open nature of the IBM Rational Jazz™ collaborative softwaredelivery platform to integrate its own Mia-Software products, While Application Analysis offers an IT-centric view of the port-Sodifrance evaluated IBM Rational Team Concert™ for folio, APM provides a business-centric view of the applicationSystem z (RTCz) and Rational Developer for System z software portfolio. APM can deliver the biggest return on investment inon an IBM System z9® Enterprise Class server running terms of potential savings and increased business value. It helpsIBM z/OS 1.10 at IBM’s Montpelier zTech center. Sodifrance identify inefficiencies, reduce risk, increase agility, and ensuredecreased its development time by 15 - 20 percent, and they IT investments are aligned with your business goals. APM helpsincreased visibility across teams through a uniﬁed dashboard teams concentrate their efforts on the elements of the portfoliohelps improve development quality, minimizes errors and that are of greatest business value to the organization.rework, and reduces time necessary to recognize and addressissues. In the future, RTCz will ease development between APM can help rationalize and justify your application inventorySodifrance headquarters and remote customer sites through and infrastructure by considering each as an investment. It helpsimproved communication and optimized code check-in and teams understand the ﬁnancial beneﬁts and ROI of each compo-management features. nent in comparison to the costs of the application’s maintenance and operations. It gives you the information and process to makeGetting started effective decisions on how to evolve the portfolio.IBM Rational is helping customers embark on their enterprisemodernization journey with a customizable framework for meas- Enterprise modernization for developer’s prescriptive solution for SCM coexistenceured process improvement that is designed to help organizationsbetter manage their software delivery. This service offering is designed to jump start your moderniza- tion efforts by quickly establishing an enterprise-wide System z application development and deployment environment. TheThe service begins with an Executive Business Value Workshop solution consists of Rational Developer for System z software,(EBVW) to identify speciﬁc business goals in the organization, Rational Team Concert software, and Rational Developer forwhich are then addressed through the development of a cus- System z Unit Test environment. It is a low-cost and low-risktomized, targeted solution roadmap. Once the goals are clearly solution designed to coexist with your CA Endevor Softwareunderstood and agreed upon, teams can leverage detailed Change Manager and Build capabilities.services to assess current software delivery processes and/or
IBM Software 11Application modernization services The IBM Enterprise Modernization Sandboxes let you experi-The IBM Rational organization’s experienced staff can help ence and evaluate the latest modernization solutions for thedeﬁne and implement application modernization solutions. System z, IBM Power®, and IBM i platforms through hands-onOur senior experienced solution and enterprise system architects participation and guided walk-through and usage of live, hostedcan help you determine modernization alternatives, assist with System z and IBM i development scenarios and solutions.3deﬁning modernization strategy, and help with implementationplanning. We also provide resources that can provide short-term Conclusiontactical services to help your teams become trained and func- Technology plays a mission-critical role in business successtional with the tools quickly. Services are customized to meet today. Over the years, organizations have accumulatedyour speciﬁc requirements. deeply embedded layers of technology assets that are driving signiﬁcantly increased costs and inhibiting agility. EnterpriseDevelopment skills and team collaboration modernization modernization has become a critical business success factor.services But embarking on massive, long term, high cost, high risk mod-We offer resources to assist with tool implementation so that ernization initiatives without clear, measurable ROI goals is notROI and business objectives are achieved faster. Our resources a viable option. Neither is maintaining the status quo.have been helping clients implement IBM Rational tools formany years and can help your implementation yield a quick Successful enterprise modernization requires approaching thesetime-to-value and improve return on your investment. We offer known challenges in new, more cost-effective and practical ways.formal training as well as “over the shoulder” assistance for users For example, rather than just thinking about technology assets inand administrators to work with your people doing their speciﬁc terms of code and applications, consider the critical importancetasks. This strengthens knowledge transfer and helps your team of your development team’s skills, collaboration and infrastruc-better absorb the learning. ture efficiency in building and maintaining those assets. ToIBM Rational Cafe communities and enterprise improve productivity and realize signiﬁcant positive results,modernization sandbox organizations must address all four areas of applications, skillsIBM Rational Café communities for EGL, RPG, C/C++, and and collaboration and infrastructure efficiency. It means ﬁndingCOBOL offer online discussion forums where your teams can ways to leverage existing assets more effectively, rather thanask questions or provide answers. These communities host blogs assuming wholesale rebuild and replace approaches are the onlyby the IBM development teams that create the products and option. It means looking across the enterprise, across differentprovide free downloads of code samples, white papers, training platforms, geographies, and technologies, and plotting a clear,manuals, videos, and other documents related to enterprise mod- executable course towards reduced costs, improved productivity,ernization solutions. There are also HotSpots like the HATS and agility, while concentrating efforts on applications that areHotSpot, that provide the ability to connect to a community most important to the organization’s business objectives.to learn what’s new, share hints and tips, reach out when you’rechallenged, and engage in dialogue with the HATS team on IBM recognizes that no two businesses will have the samewhat you like, don’t like, and what you need.2 set of constraints or application portfolios. Some will want to rapidly modernize in the shortest possible time, while others may wish to slowly integrate modernization into current