IBM Systems Magazine, Mainframe Edition - November/December 2010 - 30

cost, = goods, = price = profit
frame. For that same power, you have 60,000 servers. Servers have a 15- to 25-percent utilization average, hitting dead spots of 3 to 5 percent and peaks in the 60s. Their performance is very much tied to the application, and the utilization isn’t high, even in a virtualized environment. On a unit-cost basis, if you drive down your cost of goods and keep the quality and sell price the same, your profitability is higher and you have better earnings per share—whether shipping a ton of freight on a railroad or a passenger mile on an airplane.

K What made you decide to try to
measure the impact of mainframe versus server computation?
Companies love to have the latest and greatest, whether it’s desktop computing, distributed computing, cloud computing, etc. There’s an implied understanding that the latest platform is the best. But I was disturbed that choice of platforms seemed to be driven by bias toward or against a platform, rather than on questions such as, ‘Would my cost per trade be lowered by mainframe or server-based computing?’

;

services, where for high-volume transaction throughput the high efficiency of a mainframe environment translates to lower unit-cost transaction. We start to see a 20- to 30-percent differential in costs. You see those big differentials in other heavy use industries, too, such as airlines and healthcare.

K Were your findings surprising? ; Yes, sur pr ising and cont roversial. Surprising to me because investigating this I never expected to see such magnitude and swings

K The new IBM zEnterprise* System extends mainframe qualities of service to Linux on System x and AIX on Power Systems* workloads. How does this new capability impact the cost effectiveness of the mainframe?

you had to spend 10 percent more on your technology platform to

increase revenue by
So we had the data on platforms. Ninety percent of large-scale companies have a mix of mainframe, UNIX*, Linux*, et cetera. On the economic side, I’d say data collection in business for metrics such as IT accounting and cost of goods started to happen with greater consistency between 2002 and 2007. I felt the data we were getting was finally accurate enough to try to examine platforms and understand their suitability and capability to be leveraged from an economic sense. After mapping an industry’s use and economics, what happens in that space to companies that are heavy mainframe or heavily server based? Can I pick up economic differences? There were considerable differences, assum ing appl icabi l it y. Especially in industries like financial

40 percent, you’d be happy to do that.”
— Dr. Howard Rubin
in financials because of choice of computing. The issue isn’t how good you are at using the technology, but the mix of choices you’ve made. This is still early-stage research, so it’s more indicative than predictive, but it’s showing the pattern. And those patterns are clear and surprising to companies.

What are the reasons for the cost savings of mainframes?
You have a fixed cost of owning something. Assuming applicability of a high-utilization platform, if you’re able to run that machine more hours and keep it busy, the unit cost per microsecond is overall lower. Mainframes can run at 80- to 90-percent utilization or more. Say you have 100,000 MIPS on the main-

K ;

This notion of hybrid computing really gets at being able to balance computing resources around need. As I understand zEnterprise, it’s an integrated environment where we have mainframe and server-based computing under common technology management. That integrated system can take advantage of tools to balance those resources. So, stage one, we can drive utilization given a stream of work to perform across all of those platforms. I can conceive some point in the future where common management isn’t only smart about balancing the load, but to also say, ‘This use or task is suitable for the mainframe side, and this one for the server side: balancing the load and matching it to the nature of the workload.’ Technology must do these things for business: It helps a company grow their revenue through new product offerings, protect revenue through increased efficiencies and keep products in the market, reduce costs through increased automation and manage risk. If you can do all of

;

30

NOVEMBER/DECEMBER 2010

ibmsystemsmag.com/mainframe


http://www.ibmsystemsmag.com/mainframe

IBM Systems Magazine, Mainframe Edition - November/December 2010

Table of Contents for the Digital Edition of IBM Systems Magazine, Mainframe Edition - November/December 2010

IBM Systems Magazine, Mainframe Edition - November/December 2010
Contents
On the Web
Editor's Desk: Tradition Takes Planning
Dashboard: Walk While You Work
Data Display: All About Spam
Think Smarter: IBM Offers Smarter Systems for Performance and Scalability
Trends: Rosamilia Oversees Both System z and Power Systems Lines as New GM
Break Through Economics: Dr. Howard Rubin Discusses Mainframe Efficiencies and the zEnterprise System
Streamlining Development: IBM Rational on zEnterprise System Utilizes Multiplatform Development Capabilities
Administrator: The zEnterprise System Changes Firewall Requirements
Technical Corner: z/OS Predictive Failure Analysis Make It Easy to Spot and Fix Soft System Failures
Developer: Native XML Support Strengthens DB2 and COBOL Development
Solutions
Advertisers' Index
Stop Run: Former IBMer Jim Bell Finds Inspiration in Music
IBM Systems Magazine, Mainframe Edition - November/December 2010 - IBM Systems Magazine, Mainframe Edition - November/December 2010
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Cover2
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 1
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Contents
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 3
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 4
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 5
IBM Systems Magazine, Mainframe Edition - November/December 2010 - On the Web
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 7
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 8
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 9
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Editor's Desk: Tradition Takes Planning
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 11
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Dashboard: Walk While You Work
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 13
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Data Display: All About Spam
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 15
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Think Smarter: IBM Offers Smarter Systems for Performance and Scalability
IBM Systems Magazine, Mainframe Edition - November/December 2010 - BMC1
IBM Systems Magazine, Mainframe Edition - November/December 2010 - BMC2
IBM Systems Magazine, Mainframe Edition - November/December 2010 - BMC3
IBM Systems Magazine, Mainframe Edition - November/December 2010 - BMC4
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 17
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 18
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Trends: Rosamilia Oversees Both System z and Power Systems Lines as New GM
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 20
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 21
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 22
IBM Systems Magazine, Mainframe Edition - November/December 2010 - zE1
IBM Systems Magazine, Mainframe Edition - November/December 2010 - zE2
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 23
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 24
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 25
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Break Through Economics: Dr. Howard Rubin Discusses Mainframe Efficiencies and the zEnterprise System
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 27
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 28
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 29
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 30
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 31
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Streamlining Development: IBM Rational on zEnterprise System Utilizes Multiplatform Development Capabilities
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 33
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 34
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 35
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 36
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Administrator: The zEnterprise System Changes Firewall Requirements
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 38
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 39
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Technical Corner: z/OS Predictive Failure Analysis Make It Easy to Spot and Fix Soft System Failures
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 41
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 42
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 43
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Developer: Native XML Support Strengthens DB2 and COBOL Development
IBM Systems Magazine, Mainframe Edition - November/December 2010 - 45
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Solutions
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Advertisers' Index
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Stop Run: Former IBMer Jim Bell Finds Inspiration in Music
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Cover3
IBM Systems Magazine, Mainframe Edition - November/December 2010 - Cover4
IBM Systems Magazine, Mainframe Edition - November/December 2010 - RF1
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