The document discusses challenges and strategies related to mainframe modernization, emphasizing the need for improved efficiency, scalability, and cost management within IT operations. It details John Hancock's successful transition to a zLinux environment aimed at reducing operational costs and enhancing performance while maintaining service levels. Key lessons from the project highlight the importance of thorough planning, resource allocation, and the effective use of modern technology to achieve project goals.

1. Micro Focus Mainframe Solution
Gartner Symposium ITxpo 2012
October 2012

2. > Mainframe Value
Robust
Scalable
High-performance
Platform choice
Improved TCO

3. Mainframe IT Challenges Vary by Role
Head of Service Strategy Chief Technical
IT Ops Mgr Ops Mgr CTO QA Manager CIO
Development Delivery Mgr Manager Architect Analyst

4. We are running short
“Talent management processing
of batch Our mainframe environment can’t
rd party suppliers won’t
time
is the #1 priority for and soon enough the new testing we need to do.
support
My 3 We are stifled on 3270 and
We know what be ableAll run composite applications need
corporate leaders, up we needto our to
we won’t to try can’t meet demand because it
change their pricing so we My Java guys cut
it is difficult their
to decide
from third butend-of-month in time – front ends to test against
do,
need to find a more cost- Our production system on the list takes too long to get application
Which is the quickest takes priority and year” - PWC don’t have budget
last we
where to start. Everything code well enough but
the back-end – but our mainframe
My developers
effective way of running the changes delivered.
way to build new for the upgrade plus access orknow nothing is costly
they environment
business frequently impacts ourrelates to everything else and
test don’t have the knowledge.
about our business experts We have no test cases to
services – what run schedules. We never everything else our testing isprocesses now.
there’s no easy way of managing
All
because I need
manual rightrun the
applications
We need to stop spendinghit test milestones. system atlas.
our just to We needand use copies of
speak of first to identify
nearly Myour Op Ex on just
all teams just aren’t
should we use? environment. the applications that
production data – but there’s no
productive
keeping the lights onenough to meet
All studies we do are immediately
are costing us the most it
automation or process behind
out of date. We need to find ways to
the backlog of business and it I have a complex set of
money takes forever to set up.
meet our Service We are stifledaon applications –
across variety of
mainframe 3270 and
requirements
Exhibiting common themes commitments which are indicators – these are the
can’t meet demand because
nothing else would
We need to find ways to meet harder than ever ones we need to assess first!
it takes too long to deliver
I can’t track changes I want to know how provide the same
Testing is hugely applicationsI only have a couple of
our Service commitments
Which any application function
business changes
expensive hardermaking us the applications that 20% more made back to our
which arein human
are than ever I have needs this we can overtake
service delivery original change request our competition with We won’t collaborate
most money – do RAS but I’m paying a lot– there is simply no
costs but also because it for superior IT properly unless we can all
we of it projects to complete
consumes over 50%have the skills toeach year. We need to fix joined up process functionality
this year than last use Eclipse
mainframe resources them forward?
take this.
Head of Service Strategy Chief Technical
IT Ops Mgr Ops Mgr CTO QA Manager CIO
Development Delivery Mgr Manager Architect Analyst

5. > Common themes
Which of our applications We must solve our Our mainframe testing We are running short
should we take forward? skills shortage is hugely expensive of processing time
We need factual insight We are stifled using We never hit our test We need to budget for
to shape our IT strategy 3270 software and QA milestones the mainframe upgrade
What is the impact of My teams aren’t We need 20% more We need to replicate
this system change? collaborating enough capacity for testing core systems quickly
Knowledge Development Quality Deployment
Head of Service Strategy Chief Technical
IT Ops Mgr Ops Mgr CTO QA Manager CIO
Development Delivery Mgr Manager Architect Analyst

6. > Your Modernization Journey
Unified Mainframe Test Environment,
Portfolio Knowledge Application Test Data Application Service
and Management Development Management Deployment
Knowledge Development Quality Deployment
Enterprise Test
Enterprise Analyzer Enterprise Developer Enterprise Server
Server
Micro Focus Enterprise product set

7. Micro Focus Enterprise product set
Client Objectives Key Requirements Micro Focus Solutions
Prioritization and cost containment of Understand the application landscape.
Application Service Delivery
Modernization projects Simplify complexity Enterprise Analyzer
Modernization
Reduce cost of maintenance
Cut through traditional development
improving development group Enterprise Developer
processes and log jams
efficiency and quality
Aligned and Effective Improved Service Delivery Cycles Enterprise Test Server
Application Service Delivery
Exploit contemporary
technology for accelerated and Rapid, Cost-Effective Enterprise Enterprise Server
agile workload delivery Application Deployment

8. > Modernization: sound practice
Package 10x cost
COST Rewrite 4x cost
Modernize 1x cost Lowest cost
Package Medium risk
RISK Rewrite High risk
Modernize Low risk Lowest risk
Package 2-3 years
TIME TO
VALUE Rewrite 3-5 years
Modernize 4 months Shortest time
Package
COMPETITIVE 0/10 competitive advantage
ADVANTAGE
Rewrite 6/10 competitive advantage
(0 – 10)
Modernize 10/10 competitive Greatest advantage
advantage

9. Thank you

10. zLinux: Move to a New Frontier
John Hancock Case Study
Troy Sheeley, Sr. Project Manager
October 2012
CSC Proprietary and Confidential

11. Market Context
VansonBourne – Research
• Almost nine in ten plan to upgrade at least
one of their key applications as a result of a
recent portfolio review 13%
• 43% - HR application
• 42% - BPM application
• 42% - PPM application Planning to
modernise at
• 41% - CRM application
least one key
• 39% - finance/account application application
• 34% - ERP application
• Reasons why modernisation is likely to take 87% Not planning to
place are:
modernise any
• Reducing licensing costs (48%) key applications
• 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
CSC Proprietary and Confidential December 4, 2012 11

12. 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
CSC Proprietary and Confidential December 4, 2012 12

13. 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”.
CSC Proprietary and Confidential December 4, 2012 13

14. Requirements – The Customer’s View
• 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
CSC Proprietary and Confidential December 4, 2012 14

15. The Solution - Overview
• 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
CSC Proprietary and Confidential December 4, 2012 15

16. 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
CSC Proprietary and Confidential December 4, 2012 16

17. CSC Proprietary and Confidential December 4, 2012 17

18. 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
CSC Proprietary and Confidential December 4, 2012 18

19. 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
CSC Proprietary and Confidential December 4, 2012 19

20. Time to Implement
NOTE: Depending on the project scope, the time to implement can be
greatly reduced in future implementations.
CSC Proprietary and Confidential December 4, 2012 20

21. Return on Investment
Project Go Live – 8/13/2012
ROI Realized – 2013Q4
CSC Proprietary and Confidential December 4, 2012 21

22. 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
CSC Proprietary and Confidential December 4, 2012 22

23. 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!
CSC Proprietary and Confidential December 4, 2012 23

24. 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
CSC Proprietary and Confidential December 4, 2012 24

25. 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
CSC Proprietary and Confidential December 4, 2012 25

26. Thank You
CSC Proprietary and Confidential December 4, 2012 26

27. QUESTIONS?

28. Thank you