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2009 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice
Agenda
Why
Pressures on IT budgets
Higher than ever
We all know the Americans did it but In the mean time, it still impacts all of us and forces us to focus on:
Lowering cost Increase efficiency and effectiveness Generating revenue
Can IT help?
Mainframe
workforce:
Instead of being optimised, commoditised, open and virtualised, these environments are highly specialised.
and costs money. And has resulted: High cost: MF environments are typically 50-70% more expensive than open systems Shortage of skills: many people retiring so fast that training is virtually undoable Inflexible and inefficient systems where changes typically take 9-12 months whilst having a backlog of many changes to complete
More reliable and resilient More optimised More secure More scalable
In reality..
Large insurer in Korea 40,000 insurance agents 800 branch offices in Korea Subsidiaries in Thailand and China US$100 billion in Assets, Annual Revenues of $25 billion
Solution
Use
Challenge
Migrate
Result
12
our core processing system from IBM mainframe to a lower cost and more flexible platform IT cost reduction mandates Difficulty in recruiting COBOL programmers Integration/Interoperability issues
Data
mainframe rehosting tools to migrate the entire 7500 MIPS mainframe environment Keep existing COBOL applications and DB schemas Production environment 3 x 64P Itanium 2 based HP Superdomes, Oracle 10g in a 3 node RAC cluster, Tmaxsofts Openframe and TJES
Technology
center staff divided into Mainframe vs Open Systems (UNIX and MS)
Months, US$25million, roughly 1000 man months 16,000 online application source files, 15,000 batch application source files 99% automatic conversion rate Over 2000 DB tables, 53,000 SAM files, 40,000 tapes US$22million cost savings over 4 years Project cost break even point at 18 months
Was it worth it? In our case, clearly the answer is YES Original saving estimation was $22M, Expected saving now is $31M In our experience, UNIX based systems are as reliable as mainframes: Reliability (over a period of 18 months)
Mainframe system had 1 outage lasting 35 minutes, HP UX based rehosted system had 2 outages lasting 34 minutes The old platform would peak at 100% CPU utilization during heavy transaction loads. The current system rarely exceeds 60% with similar application response times. 3 x 64cpu HP Integrity > 7500 mainframe MIPS
Application developers:
tools are much more user friendly Transaction processing speeds seem faster overall Batch and sort performance is better
The combination of Tmaxsoft, HP, and Oracle yielded a powerful, 25 September reliable and cost effective solution. 2009
RSI Spain
The Caja Rural Group is the merge of the Spanish rural banks to create a privately owned banking group, with a cooperative base, enabling common financial stability and solid development.
About 14,800 employees. 80 entities and 4,100 branch offices. More than 6.4 million final customers. More than 4.5 million transactions per day. 3,080 ATMs. 2.7 million credit and debit cards. 55,000 POS.
Migration Results
3.50
3.00
$M
2.50
In 2001: Consent Decree forcing IBM to share patents for mainframe expires. Amdahl and Hitachi exit mainframe market.
2.00
1.50 1.00
0.50
0.00
When HP Superdome delivers similar levels qualities of service, is the IBM Mainframe worth price?
12 25 September 2009
How many consecutive days could you and 3 friends golf at St. Andrew Old Course with TCO savings achieved by moving from an IBM mainframe to HP Integrity Superdome?
How many consecutive days could you and 3 friends golf at St. Andrew Old Course with TCO savings achieved by moving from an IBM mainframe to HP Integrity Superdome?
can be managed
There are many references and success stories: those who have done it all saved money and do not want to go back Established and mature industry best practice
A lot of experience available
Reward
is high:
Fast results are possible: projects can take 4 12 months Positive ROI normally within 1 to 2 years
Stick
In EMEA to date, engaged in over 250 mainframe related modernisation projects Over 12.300 consultants with MF (Cobol/CICS/..) background EMEA Modernisation Factory (MM CoE) based in Spain Created 10 years ago Over 42 HP primed and delivered MF rehost
mostly IBM and Unisys MF but also NCR, ICL, Bull, Siemens average customer saving of $25M in 4 years ie $1B overall saving In fact, no delivery to date where TCO reduction was less that 50% Positive return usually in 1.5 2 years
Modernisation Options
MIPS = 7 SAPS Single HP Superdome certified for 153K SAPS, equivalent to 22K MIPS One blade is already 25K SAPS SAP ECC 6.0 Unicode upgrade will require 3050% more CPU and memory Even the biggest SAP migrations typically take no more than 9 months (e.g. BASF: 270K SAPS, 7TB BWH, 48 systems)
Migration Stages
4 Stages will be followed for each SAP system
Preparation Migration Preparation Cut Over
Final Prod. Preparation
Discovery
Test Migration
Production Migration
Primary Objectives Identify migration requirements Identify risks Develop contingency strategy Validate overall timetable Prepare Prepare Prepare Prepare Prepare plans migration test scripts cut over plans test plans contingency Migration export Migration import Test and Validate Approve Migration export Migration import Test and Validate Approve Go-live
downtime
Middleware: backup, monitoring, interfacing, general infrastructure Interfaces: Fax communication / job scheduling / plug-ins /other systems
time
Standardised process, 1000 migrations done of which < 150 from Legacy (MF,
Several R/3 and BW instances consolidated to only 4 rx4640 Montecito servers & 2 HP EVA, 20 TB each. Dramatically drop in TCO compared to Mainframe
25
Migration of custom code off MF onto open systems (Windows, Linux, Unix) Business Logic remains untouched Underlying technologies automatically replaced with open systems equivalents No compromises to MF Quality of Services, resulting system as secure, scalable, stable and manageable as the original system was Resulting code as readable as the original so existing staff can maintain with as little retraining as possible
Project feasibility
Proven project with agreed scope can be delivered within timeframe Migration is technically viable Financial business case is met
Project management
Clearly defined roles, responsibilities, deliverables and milestones
Quality management
Test strategy, test coverage, tools, resource
Proven methodology
Mitigate risk and remove unknowns early in the project thorough analysis
Change management
Impact on people, process, environment
Issues to be aware of
Time to complete the inventory
Need to ensure have full inventory or sources to migrate Factor in time to find the sources Decide on which sources need clear definition between customer and migration partner
Failure to locate all sources early in migration will impact the project costs and timeline
A roadmap approach limits impact on the business from a people perspective Time to migrate are dual environment costs acceptable
But - Beware of phased migrations taking a piece at a time off the mainframe these can be high risk Low dependencies Risk to migrate is low BUT we find the interactions back to mainframe can be slow High dependencies High risk and cost as disentangling the mainframe can be extremely complex
Especially in the analysis and testing phases Need to plan ahead . Early agreement on test coverage essential
~5 months
~2 months
Test
Production Release
Activity
Code Migration
Batch, On-Line and Screens
Project and Test Plan Early Risk determination Consolidation of the inventory Detailed Project Plan Detailed Test Plan Detailed technical migration guide
Unit Tests System Tests Integration Tests Performance & Stress Tests High Availability Tests Internal Unit test provide high quality deliverables Ensure correct migration of the application functionality Ensure Interfaces working 100%
Modified Objects migration Final Tests Release to Production Production Assistance & Support
Value
Project Risks reduction by source migration automation Allow early test No Impact on business logic
Reduce Development Code Freeze Risk reduction due to Automated tools Eliminate Defects during conversion
Automated Tools
Limit manual intervention, limits risk of bug introduction Non intrusive of customer applications
Rehosting
Limited impact to development and operations
Migration
Enabled by the automated tools usage, code freeze is only needed at the very end of the project. Minimum impact to preventive and corrective application maintenance, less manual errors.
Initial Source code Rule 1
Rule 2
Rules Engine
Maintenance
Rule N Final source code
Final code
Economic Viability
Demonstrating economic viability of the system migration and obtainable savings in a 3 to 5 years timeframe.
Technical Viability
Making sure the migration is feasible from a technical point of view, being able to solve and respond appropriately and coherently to each main functional block or area of interest.
Plan Viability
Transmitting confidence on the project plan itself and the migration methodologies to be used.
HP Mainframe Modernization
The portfolio
Prove economic viability Address risks, concerns, issues Show high level future architecture Mainframe Migration Awareness Workshop Application Management Handle requirements for a phased modernization approach with the 5 Rs Assessment and Modernization Roadmap
Achieve future state Modernise Approach Methodology Capability
Portfolio Rationalisation
AMS
Application Transition
(with detailed economic analysis, mainframe analysis, future architecture, migration and project plan)
Service Details
Awareness Workshop (2 weeks)
first service offered if customer wants to understand the cost benefits of moving off the mainframe (completely or part offload) Used to quickly prove the business case (timeframe, technically, economically) using customer real numbers Typically will be a rehost, but could be used for re-engineer and COTS Output high level migration plan and economics first service offered if customer wants to understand their migration options and the business cases for each Used to provide customers a viable roadmap to evolve and modernize their legacy environments taking into account technical implications, business needs and organization change impact Typically for larger mainframes where several solutions will need to be applied and phased Output a migration roadmap of the various options with business justification for each (not all will be cost related) second service offered to finalize the customer requirements before creating a binding offer to the customer Always offered following the Awareness Workshop if a fixed price proposal required For MRA the scope of this phase will depend what the customer decides on from the proposed roadmap and migration options vital step in the sales process to prove our capabilities Demonstration of the migration methodology and tools + See sample migration output Talk to customers who have been through the migration process
Pre-analysis (5 weeks)
Deliverables
High level Economic Analysis High level Technical Solution High level Project Plan
Power Point document organizing the Mainframe Migration Business Case structure and documenting the results of the Workshop and the analysis made. Includes: Impact on current processes & organizational impact Risks & Concerns Excel document with input data filled-in, key economic indicators calculated, 4-year benefit projection tabled and graphically represented. Power Point document describing current and proposed environment main building blocks and functionality, as well as functionality mapping. MS Project document with overall plan approach and calendar.
Economic viability
SUMMARY - Initial PURCHASE
Gross Profit Taxes Net Profit Cumulative Net Profit Payback period (PB) in months Return On Investment (ROI) Internal Rate of Return (IRR) Net Present Value (NPV)
NO Migration Scenario
TOTAL Current Environment TCO Current Environment - Depreciation effect 0 0 0 3,992,327 3,992,327 0 4,152,020 4,152,020 0 4,318,101 4,318,101 0 4,490,825 4,490,825 0 16,953,272
MIGRATION Scenario
TOTAL Proposed Environment TCO Proposed Environment - Initial PURCHASE Proposed Environment - Depreciation effect Current Environment Costs during Migration Project 2,340,000 0 2,340,000 0 0 2,945,645 1,473,900 0 (262,500) 1,734,245 1,270,356 1,532,856 0 (262,500) 0 1,331,670 1,594,170 0 (262,500) 0 1,395,437 1,657,937 0 (262,500) 0 9,283,107
BATCH Architecture
- Modelled in layers, where the various mainframe functions and tools are replaced by off-the-shelf products, HPUX tools or ad-hoc MM CoE developed tools.
SBE CONSOLE
TTY
CONTROL M
CONTROL-R
GLANCE/ PERFVIEW
SBE
STEP COND
SHELL SCRIPT
PROCEDURES VARIABLES PARM FLOW CONTROL (IF/THEN/ELSE) DATASETS: VSAM (ESDS,KSDS,RRDS) NON-VSAM(QSAM) PARTIONED
Services library
LOCK SEVER GDG ORACLE UTILITIES TCP/IP Services UNLOAD SORT TOOLS SPOOL PROGRAMS
VXFS
PRM
WLM
HPUX OS
DLKM
SERVICE GUARD
LVM
NO Migration Scenario
TOTAL Current Environment TCO Current Environment - Depreciation effect 0 0 0 3,992,327 3,992,327 0 4,152,020 4,152,020 0 4,318,101 4,318,101 0 4,490,825 4,490,825 0 16,953,272
MIGRATION Scenario
TOTAL Proposed Environment TCO Proposed Environment - Initial PURCHASE Proposed Environment - Depreciation effect Current Environment Costs during Migration Project 2,340,000 0 2,340,000 0 0 2,945,645 1,473,900 0 (262,500) 1,734,245 1,270,356 1,532,856 0 (262,500) 0 1,331,670 1,594,170 0 (262,500) 0 1,395,437 1,657,937 0 (262,500) 0 9,283,107
6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 (1,000,000) (2,000,000) Initial Expense Year 1 Year 2 Year 3 Year 4
Target applications:
All standard applications like SAS, SAP, Peoplesoft, Oracle, Lotus, that have an open version Bespoke applications where you own the IP rights:
Decide Big Bang vs Phased migration Large installations (15K+ MIPS): MIPS upgrade prevention Everything below: decide on a per case basis
Operations
Operations
Infrastructure transformation
Infrastructure
Infrastructure
Key rehost references (CoE deliveries): Other completed rehost through CoE:
Carrefour Italy, Carrefour Spain, Ejie, Portuguese Police, Swedish Tax, RSI Cmara de Comercio de Barcelona Gobierno de Cantabria Bancoval Transportes Metropolitanos de Barcelona Caixa de Manresa Ministerio de Defensa Caja Municipal de Burgos Caja General de Ahorros de Granada Banco Zaragozano Caixa Ontinyent Caja Rural Vasca BBVA
Banca Pueyo Mutua Pelayo Banca Pueyo Caja Terrassa Cajamar Caixa Girona Caixa Gereral do Depositos Banco Portugues de Investimento Caja de Ingenieros Forca Aerea Portuguesa Marinha Portuguesa
Caja Duero Caixa Peneds Caixa Laietana Caixa Manlleu Caja Navarra Ipar Kutxa Exercito Portugues Finanzauto REPSOL Sistema 4B
Other rehost:
Mazda Belgium (Anubex+Sapiens), Hamburg Sud (Twinsoft), Scottish Life (Unisys MSS), CLAL (Unisys MSS), Mashreqbank (UAB, Asysco)
Re-engineering:
Wrttembergische Gemeinde-Versicherung (Oracle), Amadeus (new front-end), CRIF (.Net), PGGM (ICL SOA/.Net GDAS), UK Land Registry (eGov .Net), Danske Bank (SAS->MSFT), Rabo (Neo DWH), SPAR, ATOC, Standard Chartered Bank,
Questions?
46
25 September 2009