The Future of z Systems. in the Digital Business

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1 The Future of z Systems TM in the Digital Business Session Jonathan Adams Vice President & General Manager ZSolutions and Select Technologies BMC Software, Inc March 2, 2015 Copyright 2015 BMC Software, Inc

2 Challenges of the Digital Tomorrow and the Place of the IBM z Systems Inform the Discussion with Data Explore What Matters Offer Ideas to Foster Success - in Your Organization - and in Your Individual Roles 2

3 Agenda Key Aspects of Digital Tomorrow Disruptive Forces Impacting z Systems Evolution Activities Knowledge Execution Economics Positioning z Systems to Lead Digital Transformatio z Systems Improving Life 3

4 Mobility Internet of Things Analytics Platform Components Automation 4

5 Mainframe: The Foundation for Digital Business 5

6 The Disruptive Forces External Institutional Economic How are they disruptive? What are the implications for z Systems IT? 6

7 External Disruptors: Mobility What is the most important mobility issue in your organization? Disruptions to Legacy Processing Requirements Driving Transformation Making existing applications accessible Developing new mobile applications 18% 22% 22% 21% 91% of new customer-facing apps access data from z Systems (IBM) Securing corporate data on mobile devices Meeting availability/ performance 12% 11% 18% 21% Managing unpredictable workloads 4% 11% Deploying a BYOD strategy 11% 14% Processing increasing transaction volume 6% 9% Other Source: BMC Software 2014 Annual Mainframe Survey 1% 2% n= 287 n=

8 External Disruptors: Analytics What role does your mainframe play in your Big Data strategy? Mainframe data acts as the Big Data analytic engine 27% 34% z13 Announcement Analytics Focus Role of z Systems in Big Data Mainframe data is moved off platform for analytics Mainframe data is federated to an off platform analytics engine 14% 12% 28% 28% 81% Mainframe provides z/linux hosting of unstructured data 3% 5% The mainframe is not part of our Big Data strategy 19% 30% Source: BMC Software 2014 Annual Mainframe Survey n= 1012 n= 820 8

9 Implications of Analytics for Availability and Recoverability Source: BMC Software 2014 Annual Mainframe Survey 9

10 Institutional Disruptors: Perception What is your perception of the industry-wide future of the mainframe? Why is your company planning to eliminate the mainframe or decrease MIPS? The MF platform will grow and attract new workloads Mgmt perception mainframe is outdated 57% 49% 50% 41% 43% 46% 45% The MF platform will continue as a viable long term platform, but limited to a legacy platform. It will not attract new workloads. The MF platform is not viable in the general market and most users should consider exit strategies in the next 5 years IBM software costs Non-mainframe systems can host workloads for Staffing/skills shortage 39% 38% 52% 6% 5% 8% 4% 2% 2% Other Cost of hardware 38% n=1,243 N=1,050 N=1,194 0% 10% 20% 30% 40% 50% 60% N= 173 Source: BMC Software 2014 Annual Mainframe Survey 10

11 Institutional Disruptors: Scope of Responsibility 11

12 Institutional Disruptors: Business/IT Alignment What are your top issues for Business/IT alignment? What are your top issues for Modernizing applications? React to business requests more quickly Improve app availability 18% 54% Modernizing to take advantage of more updated technology Delivering more functionality to end user 19% 35% Manage business service levels 15% Making applications web accessible Integrating existing applications 13% 12% Provide cost visibility 13% Updating to meet audit/ compliance/ regulations 10% Other 1% Making applications accessible from a mobile device 10% N=460 Other 1% Source: BMC Software 2014 Annual Mainframe Survey N=492 12

13 Economic Disruptors: Platform Economics Cost Optimization (71%) Availability (52%)) Key Mainframe Metrics What is driving platform economics? Cost/MIPS MF % of IT Spend HW % of spend MIPS/FTE HW Avg Util % HW Personnel % of spend % of Spend SW MF % of % spend of IT FTEs SW % of spend MIPS/FTE Source: Industry Data

14 Evolution of Knowledge Information Data Metrics Measurement 14

15 Evolution of Execution Complex Automation Run Books Basic Automation Manual 15

16 Evolution of Economics Tech Whatever IT Wants Cost Accounting Cost Containment 16

17 Evolve to Intelligence Quality of experience will define winners IT becomes a business enabler Analytics must trigger action Intelligence Information Data Metrics Measurement 17

18 Evolve to Adaptability The pace of change will accelerate Agility is the hallmark of successful transformation Mitigating risk is increasingly critical Adaptability Run Books Basic Automation Complex Automation Manual 18

19 Evolve to Invisible Infrastructure Know role of z in economics of the business Consider formula for QoE vs CoE Identify cost drivers Invisible Infrastructure Tech Whatever IT Wants Cost Accounting Cost Containment 19

20 Some Ideas for IT Success Intelligence that leads to action Embrace new UIs and approaches Look for automation that adapts Help business become more agile Question your risk posture Continually optimize infrastructure 20

21 z Systems Digital Transformation Is Really About Impacting Lives Travelers Compare Flight Prices Shoppers Purchase Quickly Doctors Rely on Medical Records

22 The Digital Tomorrow Is Here Today Disruptive forces driving Digital Transformation Accelerate IT by evolving Knowledge through Intelligence Execution through Adaptability Economics through Invisible Infrastructure z Systems can lead the transformation: Six ideas for IT success z Systems and what we do - impact lives 22

23 Apple icar 23

24 Copyright 2015 BMC Software, Inc 24