Optimizing the Cost of Mainframe Operations John Whittle Sales Specialist

1. Optimizing the Cost of Mainframe OperationsJohn WhittleSales Specialist

2. BMC and the Mainframe • BMC • One of only two companies who have never believed that the mainframe is going away

3. Here’s why Dr Howard A. Rubin – The Internal Combustion Mainframe – www.rubinworldwide.com – July 2010

4. Expectations have never been higher Optimize IT CostsHow do you get the most out of every person, asset, or project, and make better resource allocation and sourcing decisions? Demonstrate TransparencyHow do you track cost and activities in your organization and share that with stakeholders? Increase Business Value How do you ensure IT investments and operational decisions are aligned with business priorities? Manage RiskHow do you define and control risk in a dynamic, rapidly changing organization and IT environment? Assure Quality of ServiceHow do you meet performance goals across physical, virtual, and cloud-based resources?

5. BSM is a unified platform for running IT IncidentManagement Knowledge Management Service RequestManagement Problem Management Demand & Resource Management IdentityManagement AssetManagement Change & ReleaseManagement SupplierManagement ApplicationAutomation Service Catalog Service LevelManagement Financial Planning & Budgeting ServerAutomation Service CostManagement NetworkAutomation CMDB / CMS Dashboards & Analytics Discovery & Dependency IT Controls & Policy Management Client Automation Event & Impact Management Mainframe Automation CapacityManagement Enterprise Scheduling &Workload Automation Storage Management Application Problem Resolution Data Management Middleware Management Performance &Availability Management

6. BSM helps you address critical initiatives BSM INITIATIVES • Cloud Computing • Data Center Automation • IT Cost Transparency • IT Decision Support Automation • IT Governance, Risk, and Compliance • IT Service Management • Mainframe Cost Optimization • Proactive Operations

7. Mainframe Cost Optimization Challenges • Application modernization • Complexity can result in performance and problem triage issues • Growing data & transaction volumes • Failure to meet service expectations and commitments • Efficient resource utilization • Balanced use of general and lower cost specialty processors • Mainframe skills risk • Scarcity of experienced personnel and company knowledge

8. BMC Helps You Optimize Mainframe Cost • Reduce mainframe consumption and operating costs • Use Intelligent Tools • Manage Performance • Exploit Specialty Processors • Manage Capacity Mainframe Automation CapacityManagement Middleware Management Data Management Performance &Availability Management

9. Cost Optimization -- Use Intelligent Tools • Using the best tools available to support the business and IT operations. • Requirements • Minimize use of MIPs • Reduce peak period CP usage • Use new system and subsystem routines and services • Automate processing dependencies • How BMC Helps • Constantly upgrading products to minimize MIPs usage • Exploit new services IBM introduces • Include intelligent processing to eliminate unnecessary work (job execution) • Example: Large insurance company reduced MIPs usage with conditional reorg’s by 75%

10. Cost Optimization -- Manage Performance • Manage performance through automated monitoring and ongoing tuning of applications, eliminating unnecessary spikes in processing • Requirements • Improve performance • Automate monitoring and tuning • Reduce risk of runaway processing • Simplify and manage system proactively • How BMC Helps • Automates performance monitoring across the mainframe enterprise • Handles static and dynamic tuning of applications • Products designed to minimize MIPs usage • Example: Kastner & Ohler reduced MIPs consumption of a DB2 application by 46% with SQL Performance

11. Cost Optimization - Exploit Specialty Processors • Reduce monthly variable workload charges and extend capacity through low-cost methods • Requirements • Maximize use of zIIPs for processing IBM authorized workloads • Free up central processing resources to support increased business transactions • How BMC Helps • Automatically offloads DB2 performance and utility work to cheaper specialty processors • Models capacity use of zIIPs for maximum cost reduction • Maximize current IT investments by exploiting new technologies

12. BMC zIIP Exploitation Commitment • Customers want us to zIIP enable our products • Customer Council Survey, January, 2011

13. BMC zIIP Exploitation Results • BMC CMF Monitor and MAINVIEW for z/OS offload significant work to zIIP • Where BMC started with zIIP offloading “For 10 years, BMC MainView has been instrumental in increasing efficiency and lowering operational costs.” “With these zIIP-eligible z/OS monitoring tools, BMC Software is yet again showing other vendors the way forward in mainframe monitoring,” said Thomas Heitlinger. “FIDUCIA has now offloaded 30 percent of its MainView workload to the zIIP environment, reducing general purpose processor utilization and saving a significant amount of money.”

14. Cost Optimization -- Manage Capacity • Optimize the balance between business demand and low cost processing. • Requirements • Improve use of specialty engines • Plan in terms of both cost and service • Forecast the impact on business • Identify problems before they happen • How BMC Helps • “What if” modeling evaluates technology – even before acquisition if necessary • Balance use of specialty processors between service requirements and cost reduction • Automatically model system growth including business events • Easy-to-use modeling capabilities

15. BMC Capacity Management for Mainframes Specialty Engine Exploitation • Modeling capabilities for specialty engines • All reporting tools report on the specialty processors. • Explore benefits of moving work to specialty engines • Model situations where measurement data exists but the specialty processor has not been installed Cost-reduction Options • Explore options to reduce costs through workload balancing and bottleneck reduction

16. Differentiators Accurate Predictive Capacity Planning Identify the resources that are needed, at the right time, at the right price Faster resolution of SQL performance problems Accelerates CPU cost reduction opportunities Automated Storage Management Dynamic allocation reduces storage footprint and related failures and outages Innovative Architecture Optimize resource usage – dynamically leverage low cost processors

17. Proof Points and Metrics • % improvement in performance • 23-45% improvement on average CPU time per SQL statement • % improvement in performance • 40% reduction in MainView CPU Overhead using lower cost processors • % improvement in productivity • 40% reduction in data access wait times during peak batch cycles • $ cost savings • ROI of $2.3M over 5 years via capacity productivity gains NA Auto Maker

18. Summary • BMC offers its customers a holistic approach to mainframe cost optimization • Continuing to “modernize” products for minimal CPU usage and intelligence processing • Managing performance continues to save MIPs usage by • Preventing performance problems that would consume MIPs unnecessarily • Using zIIP processors for part of monitoring work • Ongoing exploitation of zIIPs in more MainView, DB2 and IMS products • Effectively managing capacity of both specialty processors and central processors to minimize the 4-hour rolling average (peak period)

19. Questions?

20. Predicting the Response Time Benefit of Specialty Engines