IBM Z Cost Reduction Opportunities. Are you missing out?
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Large companies continue to use mainframes for their most business-critical IT workloads. For these companies, finding ways to get more bang for the mainframe buck, in terms of both costs and performance, is always a high priority. Several converging trends in recent years have made it more challenging than ever to achieve the needed organizational performance at the best possible price point. IT leaders in mainframe departments are seeking out ways to speed processing, especially mundane processing tasks such as sorting, copying, merging, compression, and report generation. Whether you are looking to get more value from your mainframe investment with enhanced performance, improved efficiency, or modernization, Precisely has multiple solutions for customer running IBM Z Systems that can have a dramatic impact on cost and efficiency. Watch this on-demand webinar to learn about: • Optimizing mainframe sort workloads • Leveraging your zIIP processors • Modernizing your database environment • Improving visibility into mainframe processing
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IBM Z Cost Reduction Opportunities. Are you missing out?
- 1. Are You Missing Out on IBM Z Cost Reduction Opportunities? Bill Hammond | Director, Product Marketing
- 2. Housekeeping Webinar Audio • Today’s webcast audio is streamed through your computer speakers • If you need technical assistance with the web interface or audio, please reach out to us using the Q&A box Questions Welcome • Submit your questions at any time during the presentation using the Q&A box. If we don't get to your question, we will follow-up via email Recording and slides • This webinar is being recorded. You will receive an email following the webinar with a link to the recording and slides
- 3. Today’s Topics • Mainframe Trends for 2023 • Today’s Opportunities • Customer Examples • Optimization • Capacity Management • Modernization 3
- 5. Mainframes host the most critical applications 71% Fortune 500 2.5 Billion Transactions / day / per MF Top World Banks 92 of World’s Top Insurers 10 of Top 25 US Retailers 23 5
- 6. Mainframes deliver increasing value with each new technology wave of executives say their customer-facing applications are completely or very reliant on mainframe processing. 92% •72% See the mainframe as a platform for long-term growth and new workloads $1.65 trillion invested by enterprise IT to support data warehouse & analytics workloads over the past decade Forrester Consulting, 2019 Wikibon “10-Year Worldwide Enterprise IT Spending 2008-2017” BMC Mainframe Survey, 2021 6
- 7. Mainframe Market Growth 7 The global Mainframe market • Valued size was valued at USD 2275.16 million in 2021 • Expected to expand at a CAGR of 8.36% during the forecast period • Reaching USD 3683.1 million by 2027. 360 Research Reports
- 8. Mainframe is Here to Stay 8 • Mainframe may not be the first technology that people think of when they’re looking toward the future but “People [keep] using mainframes.” • With the mainframe remaining a piece of business-critical infrastructure for many organizations, IT leaders are getting creative in finding ways to make them communicate better with modern applications. • Enterprises are evaluating business needs have changed, and what opportunities exist in cloud versus mainframes to meet those needs. With • More and more modern applications emerging that extend the functionality of the mainframe * Nutaniz-6 IT Trends That Will Shape 2023-December 12, 2022
- 9. Mainframe Data Becomes Even More Important Presentation name 9 • Businesses today rely on the mainframe to: • Perform large-scale transaction processing (thousands of transactions per second) • Support thousands of users and application programs concurrently accessing numerous resources. • Manage terabytes of information in databases • IBM predicts that 80% of enterprise data resides on the mainframe • The data on the mainframe is the most mission-critical, system of record data • In today’s security environment, securing mission-critical data is of utmost importance.
- 10. Cloud Providers Continue to Focus on Mainframe Modernization* 10 • Mainframe Modernization services projected to grow at a CAGR of 20.6% - $2.2 trillion by 2031 • AWS, Microsoft and Google all make announcements focused on mainframe migrations in 2022 • AWS in particular has made solid strides this year and has grown its GTM team significantly ahead of expected demand * Futrum-2023 Mainframe Predictions January 4, 2023
- 11. AWS is making a big push into the billion- dollar Mainframe Modernization market in 2023 The mainframe capabilities of Connect CDC have been selected as the key component We are already getting increased interest in our data replication offerings
- 12. Precisely + AWS Benefits Simple integration Single solution to integrate, prepare, load, cleanse, transform & stream mainframe data to the AWS cloud Real-time replication Databases are kept in-sync between mainframe and cloud for reporting, analytics, and data warehousing Scalable and resilient High-performance replication is able to recover from network and DB connectivity loss Mainframe expertise Leverages Precisely’s 50 years of experience implementing complex mainframe solutions
- 13. Skills Gap 13 • Finding the right mainframe IT talent continues to be a challenge • According to Skillsoft* • Over 54% IT decision-makers admitted that they fail to fill many of their open positions • A third of IT decision-makers have at least three IT positions open in their organization. • According to Deloitte** • 71% of businesses said their mainframe team is understaffed • 79% said their top challenge was acquiring the right resources and skills * Skillsoft-2021 IT Skills and Salary Report,” ** Deloitte Mainframe Market Pulse
- 15. Sort Optimization Challenges Contain hardware and software costs Improve performance Meet/exceed SLAs to support the business 15
- 16. IMS to Db2 Migration Challenges Minimize risk Lack of skills/resources Time to value 16
- 17. Capacity Management Challenges Difficult to get single view across enterprise Capacity incidents impact business Lack of time/resources 17
- 18. Data silos impact availability, performance, services and security Lack of data for operational analytics No single view of IT entire infrastructure Status and security of systems is unknown 18
- 19. Precisely Syncsort Product Line-Up Syncsort MFX + Syncsort ZPSaver Syncsort Optimize IMS Syncsort Capacity Management Syncsort Network Management Syncsort Optimize IDMS Syncsort Optimize DB2 Reduce costs Optimize efficiency Enhance performance Cutting-edge sort, copy while offloading workload to IBM zIIP engines to reduce CPU costs Low-risk, efficient migration for businesses switching from IMS to Db2 Set of tools for network monitoring, security, and performance management Ensure high-performing IT resources are available when and where you need them Improve IBM and CA database performance 19
- 20. Customer Stories
- 21. “We get detailed information that helps improve mainframe service, reduce downtime and improve reliability of applications on the mainframe.” Normand Belair Architect, ServiceNow Implementation at Navy Federal Credit Union 21
- 22. International Credit Card Processor Found $1,500,000 in annual savings by enabling zIIP offload for sorting O B J E C T I V E • Drive down mainframe costs via efficiencies such as zIIP offload, tuning, elimination of work or offload to distributed systems C H A L L E N G E • Cost of any software solution must be offset by hard dollar savings • Cost savings can be achieved by substantial reduction of MSUs in peak 4HRA window which occurs during batch processing • As CPU is freed in peak window latent demand moves in and negates savings S O L U T I O N • Syncsort MFXr showed average savings of 35 MSUs per hour in peak 4HRA window translating to an annual savings of $1,500,000 in MLC B E N E F I T • Reduction in mainframe MLC costs via zIIP offload during peak 4HRA window • Transparent to existing sort jobs; no changes needed • An easier justification and acquisition process within procurement cycle for the renewal 22
- 23. Needed to move inmate management system for the entire state to DB2 State Department of Corrections OBJECTIVE • Clean up outdated information and provide modernization platform in Db2 CHALLENGE • Legislature unable to approve funding for multi-million $ rewrite • Cost reduction and on-going application modernization S O L U T I O N • Migrate IMS data to DB2 using Syncsort Optimize IMS B E N E F I T • Significant cost reduction with elimination of IMS DB and IMS tools licensing • Application change requests now delivered via SQL/Db2 skills • IMS databases migrated to Db2 implementing Db2 native data types 23
- 24. Global Financial Services Firm “While cost savings and cost avoidance are very beneficial, regulatory compliance and the risk mitigation are critical as well” — Head of Global Capacity and Performance O B J E C T I V E • Cost containment • Compliance with all audit requirements C H A L L E N G E • No existing capacity management coverage on Tier 2-5 systems • New audit requirement that all systems and services be covered by a capacity management process/tool S O L U T I O N • Syncsort Capacity Management, Precisely’s Capacity Management software, provided the solution for all systems (Tiers 0-5) B E N E F I T • Full platform coverage to satisfy auditors and perceived business need • Made informed hardware purchase decisions • Use of Syncsort Capacity Management Integrator leverages data from existing tools for additional visibility • Syncsort Capacity Management replaced multiple other tools 24
- 25. Conclusions • 2023 is set to be a breakout year for the mainframe platform • Proven platform that can deliver tangible ROI • Mainframe Modernization and Cloud • Precisely is here to help 25
- 26. Questions?
Notas do Editor
- Why does that matter? Well….it turns out that mainframes are still the backbone for the biggest organizations in the world 71% of the fortune 500 rely on the mainframe for their mission critical transactional systems They span every vertical from FinServ to Insurance to Retail When talking to these organizations, it’s not unusual to hear that up to 80% of their corporate data originates on the mainframe. That’s Big Data. And organizations cannot afford to neglect it.
- Most large enterprises have made major investments in data environments over a period of many years - legacy data can provide a treasure-trove of information that can transform your business when leveraged via a streaming paradigm These environments contain the data that these business run on and that today power the strategic initiatives driving the business forward – machine learning, AI and predictive analytics Legacy platforms (mainframe and IBM i) continue to adapt with each new wave of technology and are not going away anytime soon Integrating legacy data into your projects brings several advantages such as: Connect applications together, leveraging the existing transactional capabilities of the current application platform, and the wealth of new capabilities of the cloud Feed analytics with up-to-date information so your business runs on current insight Port workloads to less-expensive, strategic platforms
- IBM predicts that 80% of enterprise data resides on the mainframe. While I am skeptical of this claim, I know for a fact that in the 5,000+ enterprises where mainframes reside, the data on the mainframe is the most mission-critical, system of record data. As enterprises evaluate what to do in a climate where ransomware and cyberattacks are a daily occurrence and represent an existential threat to the careers of senior IT leaders, securing mission-critical data is of utmost importance. Many mainframe customers will look to explore the IBM Cyber Vault solution in 2023 and rightly they should. Gone are the days when a perimeter security posture and relying on backups is sufficient for an enterprise’s system of record data. Enterprises need to look beyond resilience-focused solutions and architect for third copies of data that are air-gapped to ensure they have reliable consistent copies of data to revert back to in the event of a cyber incident. Another key topic for 2023 will be where mainframe data resides. Currently, the vast majority of data sits on enterprise-class storage arrays from vendors such as IBM, EMC, and Hitachi, and is closely coupled with the mainframe compute hardware. We are seeing vendors such as Model9 and Broadcom disrupt this status quo, and I expect this trend to continue. With Broadcom launching the CA1 Flexible Storage solution, the early market moves by Model9 have been validated and I expect these two vendors to duke it out alongside more nascent offerings from IBM to transform where mainframe data resides and how it is used beyond just powering mainframe resident applications.
- Transparency Market Research 1/24/2023 – Mainframe Modernization services projected to grow at a CAGR of 20.6% - $2.2 trillion by 2031 We have seen AWS, Microsoft and Google all make announcements focused on mainframe migrations in 2022 and I expect this hyperscaler focus on mainframe modernization to continue throughout 2023. AWS in particular has made solid strides this year and has grown its GTM team significantly ahead of expected demand. Mainframe migrations are drawn out, strategic decisions for enterprises, so while the hyperscalers are making lots of noise in the market, I expect it will take a few more years for these marketing and sales efforts to result in full scale migrations and even longer for mainframe systems to be fully decommissioned, if this even happens in entirety. I expect the lawsuit between IBM and Micro Focus to rumble on through 2023 and this will certainly have a wider impact on the hyperscalers’ GTM efforts as many rely on Micro Focus as a key technology partner. As I mentioned when I spoke with Tech Monitor back in November, the blast radius for the IBM and Micro Focus lawsuit will include the hyperscalers, as many rely on the Micro Focus Enterprise Suite as a key solution for COBOL migrations. I have no opinion on the validity of the claims in the lawsuit filed by IBM, but it will certainly make many potential clients think twice as they look at their options for migration to the public cloud. The technology stack for bulk migrations to the public cloud is improving daily and I expect the hyperscalers to snap up the smaller vendors that provide point solution in this space as they look to target the last stand out of on-premises server infrastructure. AWS paved a path for this form of acquisition with the scooping up of Blue Age, and I expect vendors like Heirloom Computing, Astadia, and any one of about twenty others to be in the crosshairs of the cloud vendors as they look to expand their mainframe migration capabilities.
- We began in the fall by doing extensive research. We spoke to internal stakeholders as well as customers and partners across product portfolios and geographies. We also conducted surveys with data professionals from enterprises in a range of industries we serve.
- Mainframe Problem: Their mainframe system made it difficult to access and use the data generated for business analytics. They wanted to access their mainframe-generated customer data and deliver it to their other core systems, developers and data scientists quickly and continuously. Solution: Used Precisely Connect as their mainframe data collection and forwarding solution to feed all their customer data streams into Databricks data lake, making it accessible “ahead of demand”. Result: Navy Federal can now curate and deliver over 1TB of ready-to-analyze customer data to the Databricks environment in just 8 hours. Additional benefit: data scientists and developers now spend significantly less time working with the data.
- The CIO of a US credit card processor, delivered a mandate to her Systems Operations and Administration Division – drive down mainframe costs. She wanted to see it done via efficiencies such as zIIP offload, tuning, elimination of unnecessary workloads or moving z/OS workloads to distributed systems. Luckily for the Sys Ops and Admin team who supported a sort-intensive batch process, Precisely had recently developed Syncsort ZPSaver, a value-add to Syncsort MFX for offloading a very significant amount of sorting work to zIIPs. This solution was the only one that did not involve programming resources. The team did have to do their due diligence to confirm the cost savings but a POC demonstrated an average savings of 35 MSUs per hour in the peak billing window.
- Challenge: He told us that regulatory compliance in Europe and Hong Kong is very tight and they see China tightening compliance regulation in the not too distant future. The majority of HSBC’s growth today is coming from China and APAC. A financial services organization was experiencing unprecedented success – record business, strategic acquisitions, and continued growth into new markets. IT was a crucial piece of that growth and success. The overall cost of IT, however, was skyrocketing. A distributed environment combined with a reliance on virtualization technology led to considerable sprawl – a lot of systems with unused, excess capacity. On top of this excess spend, there was a business risk for outages or performance slowdowns on critical services and the infrastructure that underpinned them. The obstacle was implementing processes and tools that would help manage the sprawl and avoid costly incidents. Solution: The organization decided that investing in a formal Capacity Management process could help save millions of dollars in IT costs as well as minimize the business risk of outages to key services. The centerpiece of the project was to choose a software solution that would help the company maximize the ROI while automating most of the key functions, freeing up analyst time for more strategic initiatives. A Request for Information (RFI) was sent to leading Capacity Management vendors. After a presentation of the Syncsort Capacity Management® solution to key stakeholders, a proof of concept (POC) was scheduled. The POC was completed quickly, and Syncsort Capacity Management® was chosen by the organization to cover their Unix, Linux, VMware, storage, and DB2 infrastructure. Results: The organization, through the use of Syncsort Capacity Management®, has over the course of three years: Avoided over 100 Priority 1 outages, which the organization valued at $24M Made decision using predictive analysis to purchase Power E870 systems instead of Power E880 systems, saving $800K Saved $3.8M in overall IT spend, through lower maintenance, less power/cooling, and fewer hardware/software licenses Been able to investigate and more quickly resolve incidents involving storage, disk, and application processes Implemented more strategic approach to purchasing hardware, software, and other infrastructure Next up for this customer is to use Syncsort Capacity Management® Integrator to bring Application Performance Management (APM) data into the Syncsort Capacity Management® Capacity Management Information System (CMIS) in order to analyze and troubleshoot performance issues within transactions.