Enterprise Modernization: Improving the economics of mainframe and multi-platform application development

Enterprise Modernization
Improving the economics of mainframe
and multiplatform application development

Kristof Kloeckner
General Manager
IBM Software, Rational

Smarter Computing: System z Analyst Summit

Executive Summary
Our Enterprise Modernization solutions optimize the value of your application
portfolios, people, teams and infrastructure investments

Cut maintenance costs and project risks
by understanding and managing application portfolios

Modernize and leverage existing applications
to improve IT agility

Boost developer productivity with a common IDE and modern
business language for multiplatform applications

Unify teams, enhance communications,
and improve quality with a collaborative
team infrastructure for all platforms

Free up development MIPS for production use
by offloading development and test activities

2 © 2011 IBM Corporation


Many businesses are challenged by growing complexity

8 in 10 CEOs anticipate significant complexity ahead.
79% 30%
49% complexity gap

Half Feel prepared to handle it. Source: IBM Global CEO Study 2010
“Capitalizing on complexity”.

Growing Complexity



…and the numbers can be unpleasant

Investment Challenges
CAGR 8% $ 4.5T
Cumulative Value 70% budget locked in maintenance
$ 3.3T

$ 2.6T 80% of Mainframers are 50+ years old
$ 1.5T
50% IT projects rolled back

1995 2000 2005 2010 85% of distributed computing capacity is idle

In-house developed Work for Hire Purchased

Mainframe Distributed



Four key barriers preventing optimal return on IT investments

Decades of application investments Islands of skills, languages and platforms
“We don’t understand the effort, “Our skills gap keeps growing.
risk and impact of modernizing How do we stay current with all the
our legacy applications.” language and technology changes?”

Poorly integrated teams Infrastructure inefficiency
“We need to enable our teams to “We need a cost effective way to
collaborate across platforms, improve our infrastructure efficiency
languages, and environments.” and free up capacity to handle more
workload.”



Enterprise Modernization offers a low risk, high return approach

Increase Boost Maximize Improve system
flexibility productivity business agility utilization

Revitalize Empower Unify Optimize
Applications People Teams Infrastructure

Increase flexibility by revitalizing existing application portfolios
Boost productivity and accelerate innovation with modern skills
Maximize business agility by bridging organizational silos
Improve system utilization by leveraging hardware capabilities



Increase flexibility by revitalizing existing application portfolios



Application portfolio management
Business intelligence for applications
Service Oriented Architecture Operational reuse
User interface modernization
Application transformation tools and services
Quality across the organization


Revitalize
Smarter Computing: System z Analyst Summit Applications

Enterprises want to…
Understand the impact and cost of changes to their IT systems; Harvest
and manage business rules from existing applications, analyze these rules, and
minimize rework and points of failure

What is impacted
if I change this
Industry analysts estimate
COBOL there are between
copybook? 200 and 300 billion
JSF lines of mainframe
legacy code.
EJB COBOL accounts
COBOL for about 70%
of that, with five billion new lines
of code added each year

But…
They have no business intelligence inventory of their application assets,
relying instead on manual, error-prone processes and incomplete knowledge.
They must compensate with more extensive planning and extra testing and by
manually ‘searching’ for code affected by business decisions.

Revitalize

Solution: Business intelligence for applications
Restore lost application knowledge via technical analysis

Application Artifacts
Mainframe Distributed
COBOL CICS Java Enterprise Archive (EAR)
PL/I Job Control Language WebSphere Web Archive (WAR)
DB2 High-level Assembler HTML C++
IMS/DC (HLASM) WSDL

Application Inventory ILOG

Impact Business Rule
analysis Discovery and
Metadata Management
Repository

Reducing risk by quickly assessing change impacts
Lowering cost by eliminating dead code
Optimizing planning, focusing testing and speeding development

“IBM Rational Asset Analyzer software is a robust and reliable tool that
supports portfolio analysis of large applications in a short period of time,
delivering accurate reports that give a clear understanding of the
application at the business, architecture and program levels.”
— Sihab Kolaparambil, practice manager, Wipro IT Business

Revitalize

Have a nimble IT organization that leverages services to respond
more quickly to the needs of the business

Business Logic
I need a way to reuse our
existing assets from all our
disparate environments
Distributed
Packaged System z

Databases Screen Logic

But…
They have application architectures that were built incrementally over the last
20-30 years and are no longer flexible or agile.


Revitalize

Solution: Modernize, extend and reuse existing assets
5x lower costs and reduced risk through SOA

IMS

WAS CICS

DB2

Speeding development and delivery of applications
Reducing risk and ensuring high quality

“The Service Flow modeling in Rational Developer for System z enabled
us to convert our CICS screens to the web without any reprogramming.
This reduced our risk, lowered cost, saved months of work
and allowed us to complete the project on time.”
— Paul Williams, Director of IT, Trustmark National Bank

Revitalize

Reduce tool support costs and move to modern platforms, languages,
and tools for their multiplatform application development

System z – CICS
System z – Linux1
System z – Batch
Software AG Natural/Adabas System z – WAS2
System z – VSE
CA Ideal/Datacom and CoolGen IBM i - WAS
IBM i - Native
RPG and COBOL AIX
HP - UX
Green screen text UIs Solaris
Linux

Windows

1 Eligible to run on IFL
2 Eligible to run on zIIP and zAAP

But…
They are using older languages and/or are stuck on poorly supported,
expensive, legacy development platforms


Revitalize

Solution: Application transformation tools and services
Migrate from older languages and expensive tools to modern
development platforms, languages, databases and tools
System z – CICS
EGL System z – Linux1
System z – Batch
System z – WAS2
Software AG Natural/Adabas System z – VSE
IBM i - WAS
CA Ideal/Datacom and CoolGen Conversion Testing, Remediation,
Tooling Deployment IBM i - Native
RPG and COBOL AIX
HP - UX
Green screen text UIs Solaris
Linux

Windows

1 Eligible to run on IFL
2 Eligible to run on zIIP and zAAP

Greatly reduced development platform support costs
More flexible, integrated development environment

Operating costs were reduced 55 percent by migrating
from the VAGen legacy application to Java. “The migration to EGL combines
the best of both worlds: The stability of IBM System z and the flexibility of
Java.” Massive cost savings are also included!
— Frank Landewee, project manager, Atos Origin GmbH, Essen


Boost productivity and accelerate innovation with modern skills



Modern IDEs for all platforms and languages
Modern business language

Enterprise training programs, communities and resources


Empower
Smarter Computing: System z Analyst Summit People

Increase productivity of their “backend” development staff,
as well as attract new employees to this work

But…
They have antiquated development tools which deliver low productivity
and are repulsive and unfamiliar to younger staff


Empower

Solution: Comprehensive, multiplatform IDEs
Upgrade to modern Eclipse-based tools to develop and maintain
enterprise applications spanning multiple platforms, languages, and technologies

Rational Developer
for zEnterprise
Unified
IDE

Modern tools with which to attract new talent
22%-37% improvement in developer productivity¹
50%-80% reduction in host CPU usage1

“Our team now develops, debugs and tests with more confidence,
and it is clear that more and more people here will be using
Rational Developer for System z.”
— Almut Geiger, product specialist at HVB IS

16 ¹ Aggregation of results from a productivity study conducted by IBM System z customers. © 2011 IBM Corporation

Empower

Build modern, multiplatform applications with existing and new staff

XML,
WSDL,
JAX RPC, No exposure of
MQ, J2C communication
Customer Existing technology Custom
Customer Existin
Existing
custSearch Service Business custSearch Service
er Business
Logic g
PL/I, Logic
JSF
Java IMS PL/I
COBOL,
PIM Service Busine PL/I,
WAS CICS COBOL, JSF No exposure of PIM COBOL,
RPG HLASM middleware ss HLASM
Discount iscount Logic
Credit Discount
Service
Java
Rating
Service
SQL
VSAM,
DL/I
? PIM
Service
Service
PIM
Java
Credit
Rating
Service
PIM

JavaScript
SQL Java, Java,
.Net SQL
.Net

Programmers must build or develop all Platform Independent Model - abstractions shield
technical interfaces programmers from the technical interfaces

But…
They have different teams of developers for each platform, and re-training them
to all the new technologies is costly, time consuming and often impractical


Empower

Solution: EGL – An open, modern business language
Build new or extend existing multiplatform enterprise applications
in EGL with its middleware abstractions, high productivity language,
modern IDE, and extensible architecture

JSF Page & EGL Service
EGL Handler
Customer Existing
CustSearch Service Business
Logic
Web 2.0 UI EGL EGL PL/I,
JSF EGL Service COBOL,
HLASM

Discount
Service Credit EGL
Rating
EGL Service

EGL SQL Java,
.Net

Increased productivity, platform portability, and skills flexibility
For existing and new developers when building all types of modern enterprise applications

“… We want to avoid the ‘skill silos,’ what we really need is a large group
of general developers who should not worry about target platforms and
focus on developing business components, and only a small number of
technology specialists, so that we can swiftly allocate general developers
to upcoming business needs… EGL is helping us achieve this goal…”
— Lieven Gouwy, IT Architect, KBC, Redmonk Podcast


Maximize organizational agility by unifying development teams



Consolidated team infrastructure

Agile team infrastructure


Unify
Smarter Computing: System z Analyst Summit Teams

Deliver to market faster and cheaper by exploiting agile and test-driven
development practices, effectively tracking end-to-end requirements, reducing
team infrastructure costs and increasing cross-geo collaboration and governance

Project/Planning Requirements Development Testing

• Business Drivers • Use Cases • Test Driven Development • Scenario-Driven
• Iterations • Contract • Build Management Automation
• Contract • Risk Assess • Static Analysis • Fill Cracks
• Risk Assess • Threat Model • Source Management • User Involvement
• User Involvement • Test Requirements • Pair Programming/Code Review • Contract Validation

Application Lifecycle Management

But…
They have “islands” of development--each with different tools and processes that do
not support real-time collaboration, integration, comprehensive oversight, or lifecycle
traceability, all of which results in reduced quality and slower time to market

Unify
Smarter Computing: System z Analyst Summit Teams

Solution: Collaborative application lifecycle management
Deploy new, common team infrastructure for source control, change
management and build that empowers your teams with integrated collaboration,
process automation, and reporting

Project/Planning Requirements Development Testing

Rational Team Concert
Decreases development time by 15 to 20 percent Rational ClearCase
Rational Quality Manager
Decreases development time by 15 to 20 percent
Rational RequirementsReduces cost relative to multiple team solutions Rational ClearQuest
Composer Rational Build Forge

“Building an agile development team requires a multiplatform approach, and Sodifrance
uses Rational Developer for System z and Rational Team Concert for System z to help
application teams synchronize their efforts and improve collaboration.
Rational on System z offers a powerful and valuable combination
for any company that wants to boost its development team’s productivity.”
— Hugh Smith, Project Manager, Sodifrance


Improve application performance by fully exploiting latest
hardware


Free up production MIPS
Exploit advanced optimization technology in C/C++, Java,
COBOL, PL/I, Fortran and RPG compilers


Optimize
Smarter Computing: System z Analyst Summit Infrastructure

Reduce budget by decreasing application development MIPS usage
to make more cycles available for production use

Application Development Operations

Cost

But…
Application development and test on System z causes development and production
to compete for machine resources, creating contention and reducing agility


Optimize

Solution: Test mainframe applications on x86 Linux
server
COBOL, PL/I, C++, Java, EGL, Batch,
Assembler, Debug Tool

IMS DB2
RDz user
CICS
WAS MQ
RDz user
z/OS
RDz user
x86 PC running Linux
ISPF user

RDz & ISPF user
RDz user

Liberate developers to rapidly prototype new applications
Free up mainframe development MIPS for production capacity
Reduce costs by improving new and existing developer productivity

“RDz Unit Test gives our developers the ability to have their own z/OS environment
to prototype, compile, debug and test while our customers make the necessary changes
to their test, QA and production environments… This shortens our time to delivery, shortens
our project cycles, makes our customers happy and increases our margins…
At the price…it’s a no brainer.”
— Eric Simone, CEO, ClearBlade

Optimize

Maximize application performance on existing hardware to reduce
capital expenses

But…
They have back-level compilers and/or are not fully using optimization


Optimize

Solution: Advanced compiler technology
Exploit new advanced optimization technology in C/C++, Java, COBOL,
PL/I and Fortran compilers

Performance
Compiler Version

Same hardware + NEW compiler
= Increased Performance
NEW hardware + NEW compiler
= Maximum Performance
z/OS XL C/C++ v1.12 on zEnterprise* delivers up to 60% performance improvement
Enterprise PL/I V4.1 on zEnterprise* delivers up to 27% performance improvement
XL C/C++ v11, XL Fortran v13 delivers industry leading SPEC® CPU2006 performance*

Lowers capital outlays by increasing capacity and improving performance of application suite

“... the Metal C optimization levels are just incredible. We’re really impressed, there
is no way that any of us assembler programmers can write code as efficient and
keep it readable and do it in a reasonable amount of time..”
— Gregg Willhoit is the Chief Architect at DataDirect Technologies
26 *Sources of these benchmarks are available upon request © 2011 IBM Corporation


Enterprise Modernization
Optimizing the value of your application portfolios, people, teams
and infrastructure investments

Cut maintenance costs and project risks
by understanding and managing application portfolio

Modernize and leverage existing applications
to improve IT agility

Boost developer productivity with a common IDE
and modern business language
for multiplatform applications

Unify teams, enhance communications, and improve
quality with a collaborative team infrastructure
for all platforms

Free up development MIPS for production use
by offloading development and test activities



Getting started
Next steps to modernize your enterprise applications


To learn more visit:
ibm.com/software/rational/announce/modernization/

Try latest System z software for free Enterprise modernization success stories

Sign up for free web-based training Follow latest news on System z twitter

Join IBM Rational Cafe Communities Checkout our latest customer videos

REGISTER TODAY & SAVE!

Top 5 Innovative Reasons to Attend the Enterprise
Modernization Tracks for Power & System z
1. Identify cost savings in multiplatform application maintenance - free up
resources for strategic business initiatives.
2. Ask the experts! Panel discussions with Rational, System z and Power
Systems executives, senior technical leaders, and customers.
3. Learn from customers around the world about benefits, best practices,
and experiences gained from their Enterprise Modernization Innovate 2011 is the event for
implementations.
software innovation. It is the
4. Test drive the latest Enterprise Modernization software with hands-on conference totally focused on
technical workshops and demos.
helping you transform software
5. Network and innovate with 4,000 peers… AND, come see WATSON innovation and accelerate better
(as seen on Jeopardy) in action!
business outcomes.

Register using the following promo codes: Profit from Software. Everyware.
“PWRT” for the Power Track and save $100 Starting at Innovate 2011. Mark
“EMT” for the System z Track and save $100 your calendar and register today!

© 2011 IBM Corporation


Thank you!
ibm.com/smartercomputing



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Intel, Intel logo, Intel Inside, Intel Inside logo, Intel Centrino, Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, Itanium, and Pentium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries./ Linux is a registered trademark of
Linus Torvalds in the United States, other countries, or both. Microsoft, Windows, Windows NT, and the Windows logo are trademarks of Microsoft Corporation in the United States, other countries, or both. IT Infrastructure Library is a registered trademark of the Central Computer and
Telecommunications Agency which is now part of the Office of Government Commerce. ITIL is a registered trademark, and a registered community trademark of the Office of Government Commerce, and is registered in the U.S. Patent and Trademark Office. UNIX is a registered trademark of
The Open Group in the United States and other countries. Java and all Java-based trademarks and logos are trademarks or registered trademarks of Oracle and/or its affiliates. Other company, product, or service names may be trademarks or service marks of others. Information is provided "AS
IS" without warranty of any kind.

The customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer.

Information concerning non-IBM products was obtained from a supplier of these products, published announcement material, or other publicly available sources and does not constitute an endorsement of such products by IBM. Sources for non-IBM list prices and performance numbers are taken
from publicly available information, including vendor announcements and vendor worldwide homepages. IBM has not tested these products and cannot confirm the accuracy of performance, capability, or any other claims related to non-IBM products. Questions on the capability of non-IBM
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All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.

Some information addresses anticipated future capabilities. Such information is not intended as a definitive statement of a commitment to specific levels of performance, function or delivery schedules with respect to any future products. Such commitments are only made in IBM product
announcements. The information is presented here to communicate IBM's current investment and development activities as a good faith effort to help with our customers' future planning.

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