The Surprising Economics of Mainframe Technology Webcast
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
Dr. Howard Rubin
Founder and CEO
Rubin Worldwide
Ross Mauri
General Manager
IBM z Systems
Chris O’Malley
CEO
Compuware
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
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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
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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
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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. 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%
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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
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21. Mobile is changing everything
Transforming
how we act,
interact and
transact.
37x increase
in mobile transactions
per day per user
over past decade
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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
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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
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