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Club des Responsables d’Infrastructures et de Production IT Infrastructure and Operations IT INFRAsTRucTuRE & Operations MANAgEMENT Best Practices PAPER MAINFRAME IBM zSeries Mainframe Cost Control te i Authors Laurent Buscaylet, Frédéric Didier Bernard Dietisheim, Bruno Koch, Fabrice Vallet sponsored by september 2012 Wh PAgE 2 table of contents INTRODucTION 5 1. “z” POsITIONINg AND Strategy wIThIN A Company 6 1.1 Role of the Mainframe in the eyes of cRIP’s Members 6 1.2 The Position of system z vs. Distributed systems (windows, uNIX, Linux) 6 1.3 system z - Banking/Finance/Insurance vs. general Industry sectors 7 1.4 Evolution strategies for system z 9 2. z Platform OVERVIEw 11 2.1 Technical terms of reference 11 2.1.1 Servers 11 2.1.2 SAN & Networks 12 2.1.3 Storage 13 2.1.4 Backups 15 2.1.5 technical Architecture & Organization 16 2.1.6 Business Continuity 19 2.2 Mainframe software vendors (IsV’s) analysis & positioning 20 2.2.1 the Main Suppliers (ISV’s) 22 2.2.2 the Secondary Suppliers (ISV’s) 22 2.3 survey Results 3. z PLATFORM cOsT cONTROL 28 3.1 controling software cost 28 3.1.1 IBM Contractual Arrangements 28 3.1.2 ISV negotiation strategies: holistic/generic or piecemeal/ad-hoc 31 3.1.3 ISV contractual arrangements: licensing modes & billing 35 3.1.4 MLC: Controlling the billing level 38 3.1.4.1 The IBM billing method 38 3.1.4.2 The problem of smoothing (consolidating) peak loads 41 3.1.4.3 The methods and controls for controlling the software invoice 42 3.1.4.4 Survey feedback and recommendations 43 3.1.4.5 Other Cost Saving Options 48 3.2 Infrastructure cost Reduction 50 3.2.1 Grouping and Sharing Infrastructure 50 3.2.2 Use of specialty engines: zIIP, zAAP, IFL 54 3.3 controlling operational costs 55 3.3.1 Optimization, performance & technical/application component quality 55 3.3.2 Capacity Management, tools & methods 58 4. cONcLusION 67 5. APPENDIX - gLOSSARy OF TEchNIcAL TERMs 68 AND AcRONyMs usED IN ThIs DOcuMENT TABLE OF FIguREs 72 cRiP 73 E 3 g PA Foreword this white paper has been written among the CRIP in 2010-2011, I joined the zCost group in 2012; we are (independent association of Mainframe customers) by specialized in cost control and capacity management a French users group from various lines of business on Mainframe servers. Our purpose is to allow our such as industry, bank and insurance. topics chosen customers to face the unprecedented economic at the beginning of 2010 already represented one of challenges while making Mainframe and investments the major concerns for these users. already made sustainable. Cost control has been a critical work axis. Solutions In line with the CRIP, zCost Management has and tools are many; they are applicable to the majority translated this paper since we are convinced that of Mainframe users and allow to reach significant this information will allow you to be more efficient objectives in a very short term. on these topics, and will help you promote projects in your company. Capacity management remains the central and vital lever to manage, optimize and make one’s Bruno Koch infrastructure evolve in an optimum way in mid-term. zCost Services Managing Director Involving various entities of the company (production, architecture …), and also final users, is necessary to its effective implementation. tools and processes enable CRIP chose our company for the translation of this to federate all parties, to obtain a consensus and most White Paper. We are proud to be their sponsor and to of all to have at one’s disposal elements accepted and be able to help publishing such high quality works on recognized by everyone. a worldwide level, and therefore, to participate to the promotion of the Mainframe ecosystem. In today’s global economic context, practices (cost control, capacity management) promoted in this paper Jacky hofbauer are still very topical and applicable to other global zCost Management Founder companies. After leading this group and writing up this white paper Please enjoy! Authors of this white Paper : Laurent Buscaylet PSA PEUGEOT-CITROËN Frédéric Didier ex-Crédit Foncier de France Bernard Dietisheim Renault Bruno Koch ex-GCE Tech (Groupe Caisse d’Epargne), work group’s Leader Fabrice Vallet PSA PEUGEOT-CITROËN Editor : Renaud Bonnet, cRiP contributors to the Mainframe’s workgroup : Alexandre Babin La Banque Postale Sandra Belinguier La Banque Postale Romain Capron Matmut Hervé Combey La Banque Postale Thierry David i-BP Marie-Françoise Diver Natixis François-Xavier Ducreux i-BP Pierre Fenaroli La Banque Postale Patrice Rosier CNP Hao ung Hoi Air France Jérôme Viguier Air France English translation : Michael Moss, Managing Director of Value-4IT Laurent Maneville, Global Business Manager, zCost Management E 4 g PA R e Intro PAP te i h duction W Mainframe? What is left to say about the IBM Mainframe? these acronyms can be rather misleading; hence, understanding, analyzing, managing and negotiating Firstly it is the most modern “dinosaur” and it is Software contracts is almost a full-time job. A becoming increasingly modernized each year. having regrettable situation indeed, but then again Distributed been introduced in April 1964, the IBM Mainframe is Systems are following the same path; virtualization and almost in its fifties but is still very trendy. You cannot multi-core processors add a lot of complexity. the true believe it, can you? issue then seems to be consolidation and virtualization which generate software licensing difficulties rather And yet virtualization was possible on Mainframe at least than Mainframe itself; the glorious “one server, one OS, thirty years earlier than on x86 servers. Consolidation one application” era has come to an end. IBM zSeries Mainframe Cost Control Cost IBM zSeries Mainframe and infrastructure sharing have been two of its major characteristics for a long time. Operations automation, this White Paper intends to set things right and prove workload balancing and capacity management have that there are methods, best practices, leverages and been daily tasks for twenty years or more. Shared even future prospects to keep controlling Software storage service networks have been used and tape investments; indeed, one must control Mainframe costs MAINFRAME : virtualization tools were used even before the invention instead of suffering them. Do not get it wrong though, of the SAN and VtL acronyms. Java has been reliably control does not necessarily mean reduction; the goal running on the IBM Mainframe for decades. Disaster is not to constrain the machine but to drive it in the Recovery, clustering and remote replication are obvious desired way, monitor its evolution and optimize the ratio features. high availability is an intrinsic component. between its cost and the service provided, rather than All of these great qualities explain why so many big just bearing its financial burden. organizations still use the IBM Mainframe for their core business. In order to do so, we must first strike a balance, indicating the position of Mainframe today in our companies and Distributed Systems keep being inspired by this how it was integrated in the whole infrastructure. then model, keep imitating it, reinventing it and trying to we will review every single cost control method; you will equal it. they try to provide the same service level as see that there are many of them. the Mainframe without really managing to do so; they almost provide “the same” features. take a look at the Our objective for this White Paper is to deliver a tool gap between virtualization on System z and on the most suggesting practical solutions. Let’s insist on a very advanced Distributed Systems platform; admittedly it is important aspect; experience. this paper is the result decreasing, but still huge. from many meetings between the CRIP Mainframe z/OS Work Group and the results gathered during however, the IBM Mainframe platform is often their investigations. the following commentary comes distrusted; prices are considered too high by many. from real-life users experience and has been debated there is a sort of irrational and cognitive distortion in between many experienced Mainframe platform this criticism; z Series servers are hyper consolidated experts. every finding was actually implemented to and their utilization rate would astonish UNIX validate its relevance. each comment, each nuance, administrators (and most likely infuriate their Windows each criticism or caution comes from actual difficulties colleagues!) and their environment is global by nature. met in the field, unexpected results or pleasant the alleged high cost figures, above all for Software surprises highlight the gap between a brilliant idea and investment, confuse financial managers who do not its complex implementation. We deliver you the results see the great counterpart in terms of administration of our experience. and operational ease. Furthermore, IBM Mainframe deployment, typically on a global infrastructure, is often compared to deployment on a few (or one) x86 servers; a classic mistake. Indeed, once an application is deployed, installed on many x86 servers which need to be administrated, backed up, operated, et al, which solution would be the most cost efficient? Let’s admit that one of the unpleasant aspects of the IBM Mainframe is that Software licenses and contracts are incredibly complex; AWLC, IPLA, ULC, IWP, zNALC, SzLC, eWLC and other terms, how confusing! All of E 5 g PA “z” POsITIONINg AND Strategy wIThIN A Company 11.1 Role of the Mainframe in the eyes of cRIP’s Members Nowadays, the Mainframe platform is still used for an organizations core business. the 2010 survey carried out by the Work Group of CRIP’s members showed that this was true for all of the people surveyed, excepting one (who used System z only for business management applications).