IBM Systems Magazine, Mainframe - September/October 2010 - 33

When the merger came about, due in large part to competitive issues in the marketplace, the newly formed EmblemHealth had to decide what to do with its IT infrastructure. Fortunately, both companies were already processing workload on similar systems and, in some cases, using the same applications. This greatly simplified one of the major hurdles in many merger and acquisition scenarios. A decision still needed to be made, however: To adopt GHI’s outsourcing model across the merged company or pursue HIP’s in-house computing model. To address this quandary, EmblemHealth established a steering committee that included representatives from operations, technical services and finance. The results of their work— which included cost analyses of the outsourcing versus the capital expenditure needed to upgrade HIP’s data center to accommodate a new mainframe and the expense of any new hires—indicated it would be “cheaper, better, faster to bring everything in house and to use HIP as our new outsourcing partner, if you will,” Louise recalls. This became especially clear when the company discovered GHI was going to have to upgrade its outsourced equipment anyway. They decided to consolidate everything, know ing an equipment-related expense (on top of the outsourcing agreement) was going to be incurred in either case. Additionally, moving to an in-house computing model would allow the company to more effectively share applications and computing resources across the board.

“In all of the years I’ve been involved in mainframe, I’m not sorry I chose that path.”
–Art Louise, EmblemHealth
... as seen in “Big Iron: The Mainframe Story” video www.ibmsystemsmag.com/mainframe/bigiron a System z9 server to handle the GHI workload. Shortly thereafter, a System z10 server was brought in to assist with the HIP side of the business. As the two business units become more closely aligned they’ll begin sharing more of the workload across both systems or bring in a single system to handle the entire EmblemHealth workload. Moving GHI from its outsourcer required help from sevral business partners—most notably IBM and CA Technologies. The move began in October 2007 and wrapped up the following year. And things, as Louise points out, went well, “without any fireworks,” despite his absence for his daughter’s wedding that Saturday. “I was out of the loop then, but everything went well,” he says. “Everyone did their jobs the way they were supposed to.” And given his background in such migrations based on several others he had been previously involved in, this wasn’t a surprise. Everything had been mapped out well beforehand, with disaster-recovery plans already in place should something have happened, including failovers from one box to another, with only minimal disruptions. Explaining the process, Louise simply states, “We ran our overnight work on Thursday, backed up all the files on the Friday holiday, restored ever ything on Saturday, tested on Sunday, and were back up and running on Monday.” Because the company had to make only minor modifications to the HIP data center to support both systems—which, notably, didn’t include adding any additional space (“These boxes are now about the size of a phone booth,” he notes)—it has saved the money it would have otherwise spent on leasing space. Additionally, only four new IT staff members were hired to help with this new installation. Most significantly, however, the company has saved money in terms of software, thanks to what Louise characterizes as a “creative gesture” by CA, from which, along with IBM, it got much of its software. As he explains, “Working with CA, we were able to consolidate the two contracts, which helped us eliminate some products right away. And then, they gave us a ‘one-year reopener clause,’ which essentially means if GHI has one product and HIP another and we decide to consolidate onto one of them, we won’t have to pay any early-closure penalties.”

(ZÃ:TVV[OÃ(ZÃ7VZZPISL

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s the case of EmblemHealth demonstrates, mergers can be ver y good for business. The combined company can now reach more customers, consolidate its efforts and compete with now-similarly sized competitors. Thanks to some careful forethought, even the merger of the GHI and HIP data plans created little disruption in the IT department, and in fact saved the company money.

(Ã:PTWSLÃ7YVJLZZ

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ith the decision made to bring GHI into the in-house HIP fold, the company acquired

Jim UtslerÃ0)4Ã:`Z[LTZÃ 4HNHaPULÃsenior writer, has been covering technology for nearly 20 years.

ibmsystemsmag.com/mainframe

SEPTEMBER /OCTOBER 2010

33


http://www.ibmsystemsmag.com/mainframe/bigiron http://www.ibmsystemsmag.com/mainstream

IBM Systems Magazine, Mainframe - September/October 2010

Table of Contents for the Digital Edition of IBM Systems Magazine, Mainframe - September/October 2010

IBM Systems Magazine, Mainframe - September/October 2010
Contents
Editor's Desk:  Not So Secret Sauce
Dashboard:  Find an Extra Day
Think Smarter:  Competing Takes Equal Parts Growth and Restraint
Data Display:  Privacy:  Who Do You Trust?
Insider:  Untangling the Web of Processes and Technology
Trends:  System z as the Hub of a Workload-Optimized, Business Analytics Systems
Case Study: A Merger Made Easy" EmblemHealth Saves Money By Easing into an In-Sourced Computing Model
Expanding Beyond Borders:  IBM zEnterprise Systems Announcement Delivers a New Dimension in Computing.
Reducing Complexity:  The Next-Generation System z Server Is More Than Just a Fast, Scalable Solution
Focus on Storage:  IBM Tivoli Key Lifecycle Manager Solves Security Problems and Meets New Standards
Administrator:  z/OS Management Facility V1.12 Includes New Workload-Management and Resource-Monitoring Functionality
Developer: pureXML Extends Availability and Scalability to DB2 for z/OS
Solutions
Advertisers' Index
Stop Run:  IBM Cooling Expert Roger Schmidt Says the Positioning of Machines Matters
2011 Mainframe Buyer's Guide
IBM Systems Magazine, Mainframe - September/October 2010 - IBM Systems Magazine, Mainframe - September/October 2010
IBM Systems Magazine, Mainframe - September/October 2010 - Cover2
IBM Systems Magazine, Mainframe - September/October 2010 - 1
IBM Systems Magazine, Mainframe - September/October 2010 - Contents
IBM Systems Magazine, Mainframe - September/October 2010 - 3
IBM Systems Magazine, Mainframe - September/October 2010 - 4
IBM Systems Magazine, Mainframe - September/October 2010 - 5
IBM Systems Magazine, Mainframe - September/October 2010 - 6
IBM Systems Magazine, Mainframe - September/October 2010 - 7
IBM Systems Magazine, Mainframe - September/October 2010 - 8
IBM Systems Magazine, Mainframe - September/October 2010 - 9
IBM Systems Magazine, Mainframe - September/October 2010 - Editor's Desk:  Not So Secret Sauce
IBM Systems Magazine, Mainframe - September/October 2010 - 11
IBM Systems Magazine, Mainframe - September/October 2010 - Dashboard:  Find an Extra Day
IBM Systems Magazine, Mainframe - September/October 2010 - 13
IBM Systems Magazine, Mainframe - September/October 2010 - 14
IBM Systems Magazine, Mainframe - September/October 2010 - 15
IBM Systems Magazine, Mainframe - September/October 2010 - Think Smarter:  Competing Takes Equal Parts Growth and Restraint
IBM Systems Magazine, Mainframe - September/October 2010 - 17
IBM Systems Magazine, Mainframe - September/October 2010 - 18
IBM Systems Magazine, Mainframe - September/October 2010 - 19
IBM Systems Magazine, Mainframe - September/October 2010 - Data Display:  Privacy:  Who Do You Trust?
IBM Systems Magazine, Mainframe - September/October 2010 - 21
IBM Systems Magazine, Mainframe - September/October 2010 - Insider:  Untangling the Web of Processes and Technology
IBM Systems Magazine, Mainframe - September/October 2010 - 22A
IBM Systems Magazine, Mainframe - September/October 2010 - 22B
IBM Systems Magazine, Mainframe - September/October 2010 - 23
IBM Systems Magazine, Mainframe - September/October 2010 - 24
IBM Systems Magazine, Mainframe - September/October 2010 - 25
IBM Systems Magazine, Mainframe - September/October 2010 - Trends:  System z as the Hub of a Workload-Optimized, Business Analytics Systems
IBM Systems Magazine, Mainframe - September/October 2010 - 27
IBM Systems Magazine, Mainframe - September/October 2010 - 28
IBM Systems Magazine, Mainframe - September/October 2010 - 29
IBM Systems Magazine, Mainframe - September/October 2010 - Case Study: A Merger Made Easy" EmblemHealth Saves Money By Easing into an In-Sourced Computing Model
IBM Systems Magazine, Mainframe - September/October 2010 - 31
IBM Systems Magazine, Mainframe - September/October 2010 - 32
IBM Systems Magazine, Mainframe - September/October 2010 - 33
IBM Systems Magazine, Mainframe - September/October 2010 - Expanding Beyond Borders:  IBM zEnterprise Systems Announcement Delivers a New Dimension in Computing.
IBM Systems Magazine, Mainframe - September/October 2010 - 35
IBM Systems Magazine, Mainframe - September/October 2010 - 36
IBM Systems Magazine, Mainframe - September/October 2010 - 37
IBM Systems Magazine, Mainframe - September/October 2010 - Reducing Complexity:  The Next-Generation System z Server Is More Than Just a Fast, Scalable Solution
IBM Systems Magazine, Mainframe - September/October 2010 - 39
IBM Systems Magazine, Mainframe - September/October 2010 - 40
IBM Systems Magazine, Mainframe - September/October 2010 - 41
IBM Systems Magazine, Mainframe - September/October 2010 - Focus on Storage:  IBM Tivoli Key Lifecycle Manager Solves Security Problems and Meets New Standards
IBM Systems Magazine, Mainframe - September/October 2010 - 43
IBM Systems Magazine, Mainframe - September/October 2010 - 44
IBM Systems Magazine, Mainframe - September/October 2010 - 45
IBM Systems Magazine, Mainframe - September/October 2010 - Administrator:  z/OS Management Facility V1.12 Includes New Workload-Management and Resource-Monitoring Functionality
IBM Systems Magazine, Mainframe - September/October 2010 - 47
IBM Systems Magazine, Mainframe - September/October 2010 - 48
IBM Systems Magazine, Mainframe - September/October 2010 - 49
IBM Systems Magazine, Mainframe - September/October 2010 - Developer: pureXML Extends Availability and Scalability to DB2 for z/OS
IBM Systems Magazine, Mainframe - September/October 2010 - 51
IBM Systems Magazine, Mainframe - September/October 2010 - 52
IBM Systems Magazine, Mainframe - September/October 2010 - 53
IBM Systems Magazine, Mainframe - September/October 2010 - Solutions
IBM Systems Magazine, Mainframe - September/October 2010 - Advertisers' Index
IBM Systems Magazine, Mainframe - September/October 2010 - Stop Run:  IBM Cooling Expert Roger Schmidt Says the Positioning of Machines Matters
IBM Systems Magazine, Mainframe - September/October 2010 - Cover3
IBM Systems Magazine, Mainframe - September/October 2010 - Cover4
IBM Systems Magazine, Mainframe - September/October 2010 - 2011 Mainframe Buyer's Guide
IBM Systems Magazine, Mainframe - September/October 2010 - BG-2
IBM Systems Magazine, Mainframe - September/October 2010 - BG-3
IBM Systems Magazine, Mainframe - September/October 2010 - BG-4
IBM Systems Magazine, Mainframe - September/October 2010 - BG-5
IBM Systems Magazine, Mainframe - September/October 2010 - FBG-6
IBM Systems Magazine, Mainframe - September/October 2010 - BG-7
IBM Systems Magazine, Mainframe - September/October 2010 - BG-8
IBM Systems Magazine, Mainframe - September/October 2010 - BG-9
IBM Systems Magazine, Mainframe - September/October 2010 - BG-10
IBM Systems Magazine, Mainframe - September/October 2010 - BG-11
IBM Systems Magazine, Mainframe - September/October 2010 - BG-12
IBM Systems Magazine, Mainframe - September/October 2010 - BG-13
IBM Systems Magazine, Mainframe - September/October 2010 - BG-14
IBM Systems Magazine, Mainframe - September/October 2010 - BG-15
IBM Systems Magazine, Mainframe - September/October 2010 - BG-16
IBM Systems Magazine, Mainframe - September/October 2010 - BG-17
IBM Systems Magazine, Mainframe - September/October 2010 - BG-18
IBM Systems Magazine, Mainframe - September/October 2010 - BG-19
IBM Systems Magazine, Mainframe - September/October 2010 - BG-20
IBM Systems Magazine, Mainframe - September/October 2010 - BG-21
IBM Systems Magazine, Mainframe - September/October 2010 - BG-22
IBM Systems Magazine, Mainframe - September/October 2010 - BG-23
IBM Systems Magazine, Mainframe - September/October 2010 - BG-24
IBM Systems Magazine, Mainframe - September/October 2010 - BG-25
IBM Systems Magazine, Mainframe - September/October 2010 - BG-26
IBM Systems Magazine, Mainframe - September/October 2010 - BG-27
IBM Systems Magazine, Mainframe - September/October 2010 - BG-28
IBM Systems Magazine, Mainframe - September/October 2010 - BG-29
IBM Systems Magazine, Mainframe - September/October 2010 - BG-30
IBM Systems Magazine, Mainframe - September/October 2010 - BG-31
IBM Systems Magazine, Mainframe - September/October 2010 - BG-32
IBM Systems Magazine, Mainframe - September/October 2010 - 95
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