IBM Systems Magazine, Mainframe Edition - May/June 2010 - 24

Trends

What’s Your TCO?
identifying the least costly place to put a new application. Here’s a common scenario Bender sees: “Oracle’s PeopleSoft is accessing DB2* on z/OS*. Oracle will say, ‘Take your data off DB2 and put it on Oracle running on Sun. It’ll cost less.’ ” Bender’s group gathers the company’s current cost data and predicts how big an infrastructure it would need to complete the switch. are compared. Says Bender, “We give them an opportunity to challenge those assumptions and modify the study; we want to gain agreement on every assumption and To schedule a total cost of ownership (TCO) analysis with IBM, contact Craig Bender, TCO analyst for the IBM Software Group Competitive Project Office, at csbender@us.ibm.com. manage the new workload growth, since it’s all happening in the same box.” Distributed-computing costs, on the other hand, may initially appear lower because they’re fragmented and spread across the organization. But instead of declining over time, distributed costs tend to grow in direct proportion to the number of servers.

True Versus Total Costs
The true costs of a distributed-computing environment are often hidden, incorrectly counted or simply overlooked. “Different line items can be owned by different departments, so maybe all of those aren’t included,” Bender says. Breaking out costs by category over a five-year period can be illuminating. Examining line-item categories for hardware, software, labor, storage, network, power and floor space will help IT administrators remember to include, for example, network costs. “If you have a lot of different physical servers, they need that network to communicate and your costs are higher than for a mainframe, yet that is an often

An Objective View
The Eagle TCO reports compare costs of four elements over a five-year period: 1. Line items such as hardware, software, labor, storage, network, power and floor space 2. Environments such as production, testing, quality assurance, development and disaster recovery 3. Time, such as depreciation, replacement of assets and growth 4. Nonfunctional requirements such as system availability and security

estimate we make.” Clients are often pleasantly surprised to find, or confirm, that System z servers save money. In one case, a client had moved two applications off the mainframe and wanted to know whether they had actually saved money doing so. “One application was lower cost on the distributed system,” Bender says. “Another ended up being more expensive.” The client also wanted analysis for a third application, DB2 Data Warehouse. “We determined it would be twice as expensive for them to move DB2 Warehouse from the mainframe.”

Mainframes scale vertically and consume much less power and floor space, providing the lowest carbon footprint of any infrastructure.”
—Craig Bender, TCO analyst, IBM Software Group Competitive Project Office
“Taking the z/OS versus Oracle/Sun example, we would analyze not only the cost of simply moving the DB2 data, but also the costs of replicating the other tools and system-management software running on the mainframe,” Bender says. The report would break out a list of needed software, estimated server hardware, labor, space, power, storage and networking costs–incorporating actual prices the client pays its vendors and utility companies. Five-year total costs of both the DB2 and Oracle environments

overlooked cost.” Companies don’t realize within five years, they will need to replace some equipment. Software is another hidden cost. “You’ll hear, ‘You can run that application on Oracle for less,’ but they fail to include all of the other tools and management software running on the mainframe that supports that application,” Bender says. “If a client tries to duplicate that environment in distributed computing, that’s often very eye opening.” Sometimes costs are miscounted. For example, rolling power and floor space costs for the entire data center into the mainframe charge-back system obscures your true view of those costs. “Floor space and power costs tend to be the smallest of those line items—until you run out and have to build another data center,”

Counting Costs Accurately
Mainframe and distributed computing systems are purchased differently–a fact people tend to forget, Bender says, and one that complicates cost comparisons. Mainframe costs may appear higher because the bill includes hardware and software from a single vendor (IBM). But costs decline as capacity grows. “Your least expensive MIPS is your last one,” Bender says. “And because the mainframe is such a scalable machine, you usually don’t have to add people to

24

MAY/JUNE 2010

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IBM Systems Magazine, Mainframe Edition - May/June 2010

Table of Contents for the Digital Edition of IBM Systems Magazine, Mainframe Edition - May/June 2010

IBM Systems Magazine, Mainframe Edition - May/June 2010
Editor's Desk: Planned to a 'T"
Dashboard: Beef Up Your Passwords
Data Display: Cost of Security Breaches
IT Today: IBM Partnership Offers Cost-Effective BI Solutions
Trends: IBM's Eagle Studies Provide a Clear View of True Technology Costs Both Internal and External Communications
Insider: Six Computing Strategies for a Recovering Economy
Case Study: The Office of the CIO with the State of Nebraska Improved Data-Handling Issues with Smarter and Faster Data-Storage Tools
Harnes the Information Expansion: Discover the Hidden Value in your Business Data with System z
Green with Envy: Syracuse University's New Data Center is One to Covet
Focus on Storage: Tivoli Storage-Management Solutions Reduce Costs and Improve Efficiency
Developer: A Guide to Processing XML Documents Stored in Files and DB2
Solutions
Advertisers' Index
Stop Run: IBM's Plant-A-Tree Initiative Grows in Italy
Reference Point
IBM Systems Magazine, Mainframe Edition - May/June 2010 - IBM Systems Magazine, Mainframe Edition - May/June 2010
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Cover2
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 1
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 2
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 3
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 4
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 5
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 6
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 7
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 8
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 9
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Editor's Desk: Planned to a 'T"
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 11
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Dashboard: Beef Up Your Passwords
IBM Systems Magazine, Mainframe Edition - May/June 2010 - B1
IBM Systems Magazine, Mainframe Edition - May/June 2010 - B2
IBM Systems Magazine, Mainframe Edition - May/June 2010 - B3
IBM Systems Magazine, Mainframe Edition - May/June 2010 - B4
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 13
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Data Display: Cost of Security Breaches
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 15
IBM Systems Magazine, Mainframe Edition - May/June 2010 - IT Today: IBM Partnership Offers Cost-Effective BI Solutions
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 17
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 18
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 19
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 20
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 21
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Trends: IBM's Eagle Studies Provide a Clear View of True Technology Costs Both Internal and External Communications
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 23
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 24
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 25
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Insider: Six Computing Strategies for a Recovering Economy
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 27
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 28
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 29
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Case Study: The Office of the CIO with the State of Nebraska Improved Data-Handling Issues with Smarter and Faster Data-Storage Tools
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 31
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 32
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 33
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 34
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 35
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Harnes the Information Expansion: Discover the Hidden Value in your Business Data with System z
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 37
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 38
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 39
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 40
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 41
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Green with Envy: Syracuse University's New Data Center is One to Covet
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 43
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 44
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 45
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Focus on Storage: Tivoli Storage-Management Solutions Reduce Costs and Improve Efficiency
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 47
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 48
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 49
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Developer: A Guide to Processing XML Documents Stored in Files and DB2
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 51
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 52
IBM Systems Magazine, Mainframe Edition - May/June 2010 - 53
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Solutions
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Advertisers' Index
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Stop Run: IBM's Plant-A-Tree Initiative Grows in Italy
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Cover3
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Cover4
IBM Systems Magazine, Mainframe Edition - May/June 2010 - Reference Point
IBM Systems Magazine, Mainframe Edition - May/June 2010 - RF2
IBM Systems Magazine, Mainframe Edition - May/June 2010 - I1
IBM Systems Magazine, Mainframe Edition - May/June 2010 - I2
IBM Systems Magazine, Mainframe Edition - May/June 2010 - I3
IBM Systems Magazine, Mainframe Edition - May/June 2010 - I4
IBM Systems Magazine, Mainframe Edition - May/June 2010 - I5
IBM Systems Magazine, Mainframe Edition - May/June 2010 - I6
IBM Systems Magazine, Mainframe Edition - May/June 2010 - I7
IBM Systems Magazine, Mainframe Edition - May/June 2010 - I8
IBM Systems Magazine, Mainframe Edition - May/June 2010 - I9
IBM Systems Magazine, Mainframe Edition - May/June 2010 - I10
IBM Systems Magazine, Mainframe Edition - May/June 2010 - I11
IBM Systems Magazine, Mainframe Edition - May/June 2010 - I12
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