Apps Modernization at the Italian Ministry of Education

1. Apps Modernization at the Italian Ministry of Education Dott. Paolo DeSantis, Director, MIUR Luc Vogeleer, CTO, Application Modernization Practice, HP Jürgen Kress, SOA Partner Adoption EMEA, Oracle

2. HP and Oracle • Over 25 years of collaborative partnership and joint engineering engagement • Strong executive alignment • More than 140,000 joint customers • More than $6 billion in business • 13 worldwide technology and competency centers • More Oracle customers use HP servers than any other brand • Industry’s best price/performance plus full operating system and platform coverage • Hundreds of dedicated personnel offering joint support of solutions • HP has 3000+ Oracle application professionals • HP servers are Oracle’s database development platform • HP and Oracle share a common perspective of current business challenges and a common vision on how to help companies succeed

3. "Oracle believes that the HP Enterprise Services Agility Alliance is just what the market needs. We collaborate to support our clients' business objectives and, by bringing to market unique application modernization solutions, we help them to improve their business performance." - Charles Phillips, President, Oracle

4. MIUR: Ministero dell’Istruzione, Università e Ricerca The Ministry is a large, labor intensive Government Organization with an overall budget of 47.3 BLN € out of which 33.0 BLN € are cost of labor • The Ministry employs (on a permanent or temporary basis): • 750,000 Teachers • 250,000 School Administrative Staff • 9,000 School Principals for • 40,000 Schools IT Systems are used by about 70,000 Users distributed on the whole Italian territory

5. MIUR: The Legacy Issue IT Systems supporting HR and Administrative processes were developed in the early 90s in CICS/COBOL/DB2 and than evolved over time with point solutions addressing new requirements. MIUR was experiencing:

6. MIUR: The Business Issue The Ministry’s strategy to devolve the management of education to each region was being hampered by ageing, inflexible, legacy systems. In the early 2000s a substantial organizational change occurred due to new legislation. This implied: • Increasing decentralization of Processes Ownership at School Level • Moving portions of Administrative Processes from the Centre (Ministry Level) to the 20 different Italian Regions The Ministry soon realized the need for a large modernization program to move its Information System from a legacy platform to open systems in order to deal with the major Organizational Change

7. How did HP Enterprise Services Address the Opportunity? The solution required a strong mix of business and technology knowledge

8. Applications Modernization: Full Lifecycle Services Design and buildthe solution Understand the legacy environment Use the “RIGHT” modernization strategies Agility Mitigate Risk during Journey Define the Modernization Roadmap Realize the full value by providing critical support services, application management, infrastructure technical support, monitoring and control services, training coordination, and deployment

9. Manage the journey Define the Path Mitigate the risk Assess applications to gain an understanding of the applications’ complexity and develop a roadmap and business case/ROI using the right modernization strategies for each application Applications Assessments Achieve agility Applications Modernization ApproachOne Size Does Not Fit All – Modernization Journey Multiple Modernization Strategies are required to adequately address risk levels, benefit potentials, and business priorities of each application Re Re - - learn learn Re Re - - factor factor Re Re - - host host • Analyze programs and data structures • Create baseline statistics • Mine business rules • Identify candidate components with methods • Abstract existing apps to “As-Is” Mode Re-learn Re Re - - interface interface Consolidate or substitute functionality with COTS or regenerated application Replace Move existing application to execute on a new operating system and/or platform Code optimization to improve runtime efficiency of an application Re Re - - architect architect Re-host Re-factor Re Re tire tire Re Re place place Forward engineer to new language and/or architecture Re-architect Web-enable and/or “wrap” methods and connect points with standard service oriented interfaces Re-interface De-commission applications Retire • Modernization is about understanding the options and creating an “operationally safe” path to the agile enterprise state

10. The Transformation Strategy The most appropriate Transformation Strategy was selected for each Group of Applications based on Business Case Current system Target system Accounting, HR Replace Oracle Applications Re-host Batch Cobol Microfocus Oracle Batch Cobol DB2 IBM 3090 Core systems Linux Oracle Transactional Cobol CICS DB2 Re-factor J2EE Oracle Re-architect 90% Schools Inf. System Power Builder Informix Re-write 10%

11. Technical assessment Transformation Pilot Transformation & UAT The Software Migration Journey From Jan 06 to Mar 06 16 Application Areas 200.000 function points 20.000.000 Lines of code 19.000 programs 1.350 DB2 tables 1.100 user functions 2.200 screens Effort: 376 m*days From Apr 06 to Jun 06 1 user function 3 screens 107 programs Effort: 463 m*days From Jul 06 to Sep 07 3,599 batch programs re-hosted 1,538 JCL transformed into Unix shell 7,540 TP programs re-architected 2,213 Screens transformed 736 TP User function Effort: 7,709 m*days 47 15 20 Staffing (people): 7 8

12. Technical Assessment Parameters

13. The COBOL-Java Conversion Strategy Not Critical Programs Critical Programs Frequently updated Rewrite (33%) Automated conversion after removing of all barriers (1%) Automated conversion after removing only halting barriers (66%) Seldom updated Conversion Effort > Rewrite Effort Conversion Effort < Rewrite Effort

14. The Software Transformation Approach Relativity (now Microfocus) Transformation Assistant) • Insulate Cobol Business Logic • Eliminate User Interface • Transform link between programs • Re-factor Cobol Business Logic • Eliminate translation and language barriers • Eliminate dead code and dead data • Adapt source code to new DBMS • Transform Cobol Business Logic to Java • Re-architect User Interface • Re-architect Navigation and Control • Prepare and Test • Quality Review/ Remove errors • Perform functional testing (EDS internal) • User Acceptance Testing (Final Customer) • On slides with subtitles, the subtitle text box position is as follows • Horizontal – 0.51” from top left corner • Vertical – 1.36” from top left corner WIDE In-house developed Tool (Web Interface Development Engine)

15. Project Results: Better Support to Business Processes • Improved User Interface (3270 to GUI) • Improved Navigation • Better Systems Performances • End-User productivity even doubled in terms of daily operations along some Business Processes ((ex. daily teachers’ contracts from 10.304 to 17.312)

16. Project Results: Cost Savings • The program has been completed according to the initial Roadmap which was developed also taking into consideration the significant Organizational Change Management effort • 90%> of the Program has been completed after 24 months from Program start (90%> of functionalities available to final Users) • Hardware and Software License (including Maintenance) cost savings: • In 2007 costs were 7,4M$. In 2008, after AMOD project the cost was reduced by 2 M €. In 2009 the cost will be reduced by 3,4 M €. • Simplification of Application Portfolio • Portfolio size has been reduced by 33%, from 218KFPs, to 145KFPs • Application Maintenance and New Development cost Saving • New software architecture has reduced by 38% the FPs development cost from the old COBOL environment • In 2008 enhanced or developed FPs have been around 27K. In the new architecture costs shifted from 9.9M€ (Cobol environment) to 6,2M€ (new environment) 16 31 August 2014

17. Project Financial Results Total Project Cost of 11 Millions €. Estimated Cost Recovery in 18 Months from the main release of the modernized Applications

18. Modernizing Applications…The Journey Mitigating Operational Risk To Business Continuity • Modernization of the IT portfolio is about understanding the options and creating an “operationally safe” path to the agile enterprise state. Retain and Enhance Legacy Applications • Define the path… • Take and Manage the journey… • Mitigate the risk… • Reduce the cost… • Achieve agility… 3270 Migrate Platforms COBOL RPG PL1 Rewrite to new Languages CICS IMS Replace with Packages DB2 ISAM VSAM Remove from Service OS390 AS400 Illustrative

19. Your benefits: Faster cost savings, quality improvements, agility and compliance Realize critical success factors Identify quick wins Gain stakeholder buy-in Traction to any project Leverage best practices Align all actors on one roadmap Applications Modernization Transformation Experience Workshop • A unique, slide-free and practical workshop • Nine stages, one goal: Simulate your complete applications modernization journey in only a day! Transformation Experience “break-through“ “major change“ “adoption“ “best practices“ “know-how“ “roadmap“ Key stages • Modernization strategies • Datacenter transformation • People & Process • Architecture • Technologies • Applications Lifecycle • Business Outcomes

20. While at Oracle OpenWorld….