Showing posts with label costs. Show all posts
Showing posts with label costs. Show all posts

Monday, 29 August 2011

IMS systems and costs - analysis

I blogged about IBM’s IMS (Information Management System) at the end of July, saying that it has been around since 1968 and originated as a bill-of-materials program for NASA’s Apollo programme. I said that IMS effectively comes in two parts – there’s the Transaction Manager (TM) part and the Data Base (DB) part. I talked about different types of database, and I mentioned the Virtual IMS user group at www.fundi.com/virtualims.

Today I want to pose the questions: how much does an IMS development/test system cost? And how many development test systems does a site typically have installed?

It’s a bit like asking: how long is a piece of string? Obviously every piece of string has a length, but it is unknown, a quantative answer can’t be given. And by implication, whatever else is being discussed will contain a degree of indeterminate uncertainty!

Our experience at iTech-Ed (where we administer the Virtual IMS user group) is that a single IMS development test system can cost an organisation between US$1,000,000 per year and $2,000,000 per year (and possibly more in some cases).

There are some sites that run their development systems on dedicated machines that can be larger than many average-sized organizations’ production systems.

However, there is an additional complication. We believe that, although IMS is a huge revenue earner for IBM, they will waive their fee for software for organisations that are development shops and don't use it for production.

We also estimate that the personnel costs for installing and maintaining IMS development systems can amount to about half a million US dollars per year.

And the number of IMS development/test systems can vary hugely from 1 or 2 true development systems (plus test, QA, etc) in smaller shops, to larger customers, who may have any number from around ten to perhaps 30+. We know of some users with 300+ test IMS regions, but the bulk of the bell-shaped curve is skewed to much lower values. The reason we believe the average is ten or slightly above is because of the amount of administrative effort these test systems take to maintain.

The waters can be muddied further by the fact that organizations can negotiate deals on price with IBM, but are then discouraged from sharing information about those prices with others.

Our conclusion is that the cost to the organisation of running a development system depends on the size of the installation. US$1-2M is a good estimate of the cost for each IMS development/test system, with 10 being a reasonable estimate of, on average, how many development/test systems exist.

And, of course, if you have any further information on this, we would be really interested to hear from you.

Sunday, 14 November 2010

Mainframes still not all turned off yet!!

BMC published an interesting survey at the end of October. There were more than 1700 mainframe users participating in the survey, and about half of the organizations surveyed have revenues in excess of US$1 billion. I think it’s generally assumed that the total number of mainframe sites globally is between 6000 and 7000.

Highlights of the survey included the findings that 84% of respondents expected to see growing or steady MIPS usage on the platform, with almost 60% anticipating that the mainframe will attract new workloads over the next year.

Against that, 37% agree that it will be a viable platform, mostly running legacy applications and not attracting new workloads. In addition, 4% considered that the mainframe is not a viable platform and companies should consider their exit strategies over the next five years.

The survey found, perhaps not surprisingly, that reducing IT costs in the next year was an important issue. 65% of respondents stated that reducing costs was one of their top four priorities. Other topics in those top four priorities were disaster recovery (34%), application modernization (30%), and business/IT alignment (29%).

The survey found more than 50% of large IT shops indicating they would expand their use of specialty engines in the next 24 months, with zIIP engines being the specialty engine of choice.

The also survey found a strong interest in hybrid management tools across z/OS, z/Linux, and other operating systems. Monitoring and event automation was cited as an important cross-platform tool by 74% of respondents, with similarly high responses for system/task automation (73%), workload/batch management (69%), and performance tuning (66 percent).

The survey found that 50 percent of respondents plan to migrate to DB2 for z/OS V10 in the next 18 plus months.

Tucked away in the report we find 10% of respondents saying that using their System z machines to run cloud computing or SaaS (Software as a Service) applications was an important priority for them in the coming year.

If you’re interested in surveys, you’ll be interested to know that you can still complete the Arcati Mainframe Yearbook 2011 user survey at www.arcati.com/usersurvey11. The new Yearbook will be published early in January next year.

And if you want to find out more about mainframe users’ opinions about cloud computing, you can join a CA webinar entitled From Here to Eternity: The Mainframe as a Mainstay of the Enterprise. It’s on Wednesday 17 November between 11:30am and 12:30pm EST. One of the panellists is yours truly. You can sign up for the webinar at https://www2.gotomeeting.com/register/726909922.

BTW the title of this blog refers to the much-quoted prediction by Stewart Alsop, editor-in-chief of InfoWorld in 1991, that the last mainframe in the world would be unplugged in 1996!

Sunday, 7 February 2010

Arcati Mainframe Yearbook 2010 user survey

The Arcati Mainframe Yearbook 2010 has been available for download free from www.arcati.com/newyearbook10 for just over a week. Each new Yearbook is always greeted with enthusiasm by mainframers everywhere, and, not too surprisingly, there were over 2500 downloads on the first two days the 2010 edition was available. The Yearbook is always interesting, but especially interesting each year are the results of the user survey.

Respondents all completed a survey on the Arcati site between the 2 November 2009 and the 4 December 2009. 30% were from Europe and 46% from North America, with 24% from the rest of the world.

42% of the respondents worked in companies with upwards of 10,000 employees worldwide, while 19% had 1001 to 5000 staff. 16% of respondents had 0-200 staff and 12% had 5001-10,000. In terms of MIPS 45% of respondents had fewer than 1000 MIPS installed, 26% fell into the mid-sized category between 1000 and 10,000 MIPS, and 29% were at the high end.

Looking at MIPS growth produced some interesting results. Larger, more mature businesses (above 10,000 MIPS) were mostly experiencing some growth, but some growing by more than 50%. Sites in the 1000-10,000 MIPS range were typically experiencing growth of less than 10%. Sites below 1000 MIPS were also generally experiencing growth of less than 10%. The mainframe market does appear to be quite fragmented with competitive pressures at the lower end of the mainframe market.

With the environment and environmental issues getting so much coverage in the media these days, the survey asked whether IBM's recent green initiatives on things like power consumption and cooling had made the mainframe more or less attractive. Nearly three-quarters (72% - up from last year's 62%) said that IBM's green initiatives made no difference at all. One site said that the initiative made the mainframe less attractive. 19% felt it made the mainframe a little more attractive, and 7% felt it made the mainframe a lot more attractive. Clearly "greenness" isn't much of a selling point for mainframes.

With all the suing and counter-suing going on between IBM and NEON Enterprise Software over NEON's specialty processor software, the survey asked which specialty processors sites had. 37% of respondents had not yet activated or installed a specialty processor, 12% of sites had all three (IFL, zIIP, and zAAP), and a further 12% had two of the three specialty processors. More sites had zIIP processors (39%) than any other.

As usual, respondents were unhappy with costs. One commented: "The mainframe is too expensive (and perceived as being even more so). Costs for legacy applications must come down, and third-party software must support the mainframe." Another suggested: "The other platform costs may be increasing faster than mainframes but the starting point is drastically lower."

As always, there are wonderful nuggets of information in the survey.

The Yearbook can only be free to mainframers because of the support given by sponsors. This year's sponsors were CA, DataKinetics, OpenMainframe.org, Progress:DataDirect, and Software Diversified Services (SDS).