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The Surprising Economics
of Mainframe Technology
Dr. Howard Rubin, Rubin Worldwide
Ross Mauri, IBM z Systems
Chris O’Malle...
2
Dr. Howard Rubin
Founder and CEO
Rubin Worldwide
Ross Mauri
General Manager
IBM z Systems
Chris O’Malley
CEO
Compuware
3
4
5
3.38
15.92
World GDP IT GDP
Growth 2014 vs 1980
2.3%
4.7%
World GDP IT GDP
Average Annual Growth 2014 vs 2010
6
World
GDP ($B)
IT
GDP ($B)
World
Population (B)
World GDP
per Person
IT GDP per
Person
1980 $22,195 $333 4.4 $5,044 $76
20...
8
-1.5%
1.2%
2.7%
12.6%
13.3%
14.0%
Revenue
Tech Spending
Opex
MIPS
Server Instances
Storage Terabytes
Banking: 2012 - 2014 ...
60,000
120,000
22,500 22,500
2009 2014
Bank A:
Mainframe Heavy
MIPS Servers
30,000 30,000
45,000
90,000
2009 2014
Bank B:
...
2009 2014
Bank A
MF Heavy
Count Unit Cost Total Cost ($M) Count Unit Cost Total Cost ($M)
MIPS 60,000 $1,597 $96 120,000 $...
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
0 100,000 200,000 300,000 400,000
CostPerMIPS
Installed ...
2009 2014
%
Change
Bank A $13.84 $10.55 76%
Bank B $12.31 $8.22 67%
Average Bank $5.44 $3.86 71%
Income Supported Per $ of...
Income Supported Per $ of Infrastructure Expense Mainframe Heavy Commodity Server Heavy
Banking & Financial Services $5.54...
Industry Measure
Average IT Cost
of Goods
Mainframe
Heavy
Commodity
Server Heavy
% Mainframe
Cost Less than
Server
2010-20...
Mainframe
Heavy
Commodity
Server Heavy
Credit Card 0.04 0.23
Loan Organization 0.14 0.38
Process and Maintain $1M Loan 103...
17
A New Generation of
IBM z Systems is Here
Introducing the IBM z13
Ross Mauri
General Manager
IBM z Systems
19
20
Mobile is changing everything
Transforming
how we act,
interact and
transact.
37x increase
in mobile transactions
per day ...
Organizations are exploiting the fundamental
strengths of the mainframe today
• Transaction Processing
• Data Serving
• Mi...
Over $1 billion investment with more
than 5000 developers
Co-created with clients
New flexible software pricing to take
fu...
End the Debate
Chris O’Malley, CEO
25
End the Debate, We Have Work To Do
Q&A
© 2015 Compuware Corporation. All rights reserved.
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The Surprising Economics of Mainframe Technology Webcast

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Dr. Howard Rubin, Founder and CEO of Rubin Worldwide, Ross Mauri, General Manager, IBM z Systems and Chris O’Malley, CEO of Compuware, discuss just how crucial your computing platform decision is. Specifically, they:

- Address the “new math” of technology economics
- Investigate what drivers are behind the “Perfect Storm of Technology Intensity”
- Examine the latest research surrounding mainframe economics conducted by Rubin Worldwide
- Discuss why mainframe-heavy organizations experience significant cost savings over commodity server-heavy organizations as computing power needs change
- Provide some next steps to show how you can capitalize on these findings
- Highlight how the z13 platform has been enhanced to address the demands of the digital economy

© 2015 Compuware Corporation. All rights reserved.

Published in: Technology
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The Surprising Economics of Mainframe Technology Webcast

  1. 1. The Surprising Economics of Mainframe Technology Dr. Howard Rubin, Rubin Worldwide Ross Mauri, IBM z Systems Chris O’Malley, Compuware March 19, 2015
  2. 2. 2 Dr. Howard Rubin Founder and CEO Rubin Worldwide Ross Mauri General Manager IBM z Systems Chris O’Malley CEO Compuware
  3. 3. 3
  4. 4. 4
  5. 5. 5
  6. 6. 3.38 15.92 World GDP IT GDP Growth 2014 vs 1980 2.3% 4.7% World GDP IT GDP Average Annual Growth 2014 vs 2010 6
  7. 7. World GDP ($B) IT GDP ($B) World Population (B) World GDP per Person IT GDP per Person 1980 $22,195 $333 4.4 $5,044 $76 2014 $75,000 $5,300 7.3 $10,274 $726 Ratio of 2014 to 1980 3.38 15.92 1.66 2.04 9.6 7
  8. 8. 8
  9. 9. -1.5% 1.2% 2.7% 12.6% 13.3% 14.0% Revenue Tech Spending Opex MIPS Server Instances Storage Terabytes Banking: 2012 - 2014 CAGR 9
  10. 10. 60,000 120,000 22,500 22,500 2009 2014 Bank A: Mainframe Heavy MIPS Servers 30,000 30,000 45,000 90,000 2009 2014 Bank B: Commodity Server Heavy MIPS Servers 10
  11. 11. 2009 2014 Bank A MF Heavy Count Unit Cost Total Cost ($M) Count Unit Cost Total Cost ($M) MIPS 60,000 $1,597 $96 120,000 $1,249 $150 Servers 22,500 $3,448 $78 22,500 $3,448 $ 78 MIPS + Servers $173 MIPS + Servers $228 Total Infrastructure $780 Total Infrastructure $1,024 2009 2014 Bank B Commodity Server Heavy Count Unit Cost Total Cost ($M) Count Unit Cost Total Cost ($M) MIPS 30,000 $2,041 $61 30,000 $2,041 $61 Servers 45,000 $2,973 $134 90,000 $2,563 $231 MIPS + Servers $195 MIPS + Servers $ 292 Total Infrastructure $ 877 Total Infrastructure $1,313 11
  12. 12. $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 0 100,000 200,000 300,000 400,000 CostPerMIPS Installed MIPS Cost Per MIPS $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 0 40,000 80,000 120,000 CostperOSI Total OSIs Window Cost per OSI 12
  13. 13. 2009 2014 % Change Bank A $13.84 $10.55 76% Bank B $12.31 $8.22 67% Average Bank $5.44 $3.86 71% Income Supported Per $ of Infrastructure Expense 13
  14. 14. Income Supported Per $ of Infrastructure Expense Mainframe Heavy Commodity Server Heavy Banking & Financial Services $5.54 $3.88 Chemicals $13.34 $10.67 Construction, Materials, and Natural Resources $40.63 $30.47 Consumer Products $8.00 $5.76 Education $2.38 $2.26 Energy $46.53 $36.29 Food & Beverage Processing $29.56 $23.35 Healthcare Providers $2.33 $1.75 Industrial Electronics and Electrical Equipment $13.24 $9.54 Industrial Manufacturing $5.92 $4.14 Insurance $1.63 $1.24 Media and Entertainment $9.97 $9.07 Pharmaceuticals, Life Sciences, and Medical Products $11.13 $7.90 Professional Services $6.62 $4.64 Retail and Wholesale $22.77 $17.76 Software Publishing and Internet Services $0.27 $0.33 Telecommunications $5.71 $4.00 Transportation $13.15 $10.26 Utilities $13.97 $11.45 Full Database $13.35 $10.55 14
  15. 15. Industry Measure Average IT Cost of Goods Mainframe Heavy Commodity Server Heavy % Mainframe Cost Less than Server 2010-2011 Differential % Change Bank Per Teller Transaction $0.300 $0.125 $0.401 69% 67% 2% Mortgage Per Approved Loan $295 $100 $358 72% 68% 4% Credit Card Per Transaction $0.14 $0.09 $0.19 51% 48% 3% Railroads Per Ton Mile $0.0011 $0.0012 $0.0020 40% 36% 2% Armored Service Per Person $9,410 $7,124 $12,544 43% 35% 9% Automotive Per Vehicle $382 $279 $413 32% 31% 1% Retail Per Store/Door $560,266 $453,444 $675,899 33% 27% 6% Utilities Per Megawatt Hour $2.58 $2.50 $3.35 25% 19% 6% Hospitals Per Bed Per Day $82.88 $62.32 $91.56 32% 27% 5% Oil & Gas Per Barrel of Oil $2.33 $1.80 $2.61 31% 28% 3% Consulting Per Consultant $58,650 $48,766 $68,100 28% 28% 1% Trucking Per Road Mile $0.19 $0.16 $0.23 29% 20% 9% Airlines Per Passenger Mile $0.009 $0.007 $0.010 30% 30% 6% Chemicals Per Patent $66,588 $58,922 $68,566 14% 10% 4% Web Sites Per Search $0.040 $0.042 $0.038 -11% -8% -2% Average 35% 31% 4% 15
  16. 16. Mainframe Heavy Commodity Server Heavy Credit Card 0.04 0.23 Loan Organization 0.14 0.38 Process and Maintain $1M Loan 103 709 LBS of CO2 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% DataCenterFTEs%ofTotalEmployees FTE Impact: Banking MF Heavy Commodity Server Heavy 16
  17. 17. 17
  18. 18. A New Generation of IBM z Systems is Here Introducing the IBM z13 Ross Mauri General Manager IBM z Systems
  19. 19. 19
  20. 20. 20
  21. 21. Mobile is changing everything Transforming how we act, interact and transact. 37x increase in mobile transactions per day per user over past decade 21
  22. 22. Organizations are exploiting the fundamental strengths of the mainframe today • Transaction Processing • Data Serving • Mixed Workloads • Operational Efficiency • Trusted and Secure Computing • Reliable, Available, Resilient • Virtually Limitless Scale Compelling economics: 68 for 6 Mainframes account for 68% of production workloads, but only 6% of IT spend 22
  23. 23. Over $1 billion investment with more than 5000 developers Co-created with clients New flexible software pricing to take full advantage of capabilities Redefining enterprise IT for digital business and mobile app economy Transact at the scale and speed of mobile Deliver insights at the point of engagement with integrated analytics Ensure highest levels of security and trust through cloud 23
  24. 24. End the Debate Chris O’Malley, CEO
  25. 25. 25 End the Debate, We Have Work To Do
  26. 26. Q&A
  27. 27. © 2015 Compuware Corporation. All rights reserved.

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