IBM Systems Magazine, Mainframe - July/August 2012 - 18

Q&A
cost per transaction, which gets to the true TCO and puts mainframe investments in a clearer—and pricecompetitive—light. To learn more about the methodology and challenges of calculating TCO for mainframe, IBM Systems Magazine spoke with David Rhoderick, mainframe evangelist with IBM Software Group’s Competitive Project Office. He and his eight-person team analyze competition for IBM software and hardware, focusing largely on zEnterprise* technologies.

Q. From a strategic perspective, what’s the mission of your competitive project group? A. Our aim is to help customers understand the value of the System z platform and its true cost. We spend a considerable amount of time talking about TCO and investigating how the mainframe compares with other platforms.

Q. Once you begin a dialogue with this constituency, is the first step getting them to look beyond the initial investment? A. Yes, sticker shock is clearly a factor here. Mainframe costs are not very widely known and understood. When you purchase a System z server, you’re investing in an infrastructure that’s designed and configured to grow incrementally with your needs. Once you’ve built the initial configuration, it becomes simple and easy to expand—and also very cost-effective. Additionally, we find that the System z costs are often overinflated. That’s because the IT accounting process used to “chargeback,” as it’s called, is often imprecise for distributed systems but very precise for the mainframe. Many organizations also include all sorts of unrelated expenses with the mainframe, which obviously makes its perceived cost even larger.

“Accurate TCO measurement and analysis will lead to better decision making that’s focused on

—David Rhoderick, IBM

Q. How about an example? A. We discovered Q. What’s the biggest challenge that one customer was in educating including its billing Rule of Three organizations about center and call center The cost of deploying a new System z TCO? expenses in the System z application will usually be A. It’s reaching chargeback when, in fact, less on a mainframe if: those two organizations non-System z people. In are totally independent the IT world, there are It’s an incremental of whatever platform System z proponents workload on an you’re using. Because (usually those who existing mainframe. the billing center and run the systems) and call center costs were then there’s everyone It can make use of a being borne only by the else who doesn’t specialty processor. people who paid for the understand it very System z platform, users well—and never the Disaster recovery of the distributed systems two shall meet, it often is required. were getting use of them seems. A successful at no cost. approach has been to Clearly, this isn’t a good way to run help our friends in the System z shops a system or manage the IT accounting of educate their colleagues. I’m really a large corporation. The lesson learned is talking about bridging the gap to the that customers, in general, need to have non-System z constituency and helping a much better handle on what really is them understand various components a mainframe cost. While the situation of TCO.

in this example was not intentional and evolved over time, it illustrates the issue of accurate chargeback. We’ve even heard of a couple of customers who included the corporate jet in their mainframe costs!

1 2 3

Q. Besides the inexact science of chargebacks, what common mistakes do organizations make when comparing a mainframe to distributed servers? A. They don’t consider the other associated costs once the system is in place, especially labor costs and all of the other various physical aspects of running IT. For example, there’s networking, electricity, cooling, raisedfloor space, firewalls, physical security, printing paper, enterprise license agreements; we could go on and on. Q. Expanding on the labor issue, how does the mainframe stack up to distributed systems? A. It’s one of the two primary System z advantages; labor is an ongoing expense

22 18

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IBM Systems Magazine, Mainframe - July/August 2012

Table of Contents for the Digital Edition of IBM Systems Magazine, Mainframe - July/August 2012

Editor's Desk: The Taste of Success
Dashboard: Pay by Phone - Current Conditions - Work Without Boundaries - Digital Personalities
IBM Perspective: The Performance of Many, the Efficiency of One
Trends: Why zBX Outperforms DIY When Deploying a Hybrid Infrastructure
Q&A: Accurate TCO Analysis Demonstrates the True Value of System z
IT Today: IBM's Integrated Solution for System z Streamlines Software Delivery
Case Study: Taking Shelter From the Storm: Shelter Insurance employs a measured approach in adopting Linux on zEnterprise 114
Cover Story: Internal Transformation: System z is at the center of initiative, which has saved the company $100 million so far
Feature: Large Memory Tames Big Data: The System z stack evolves to deliver business value from more memory
Tech Corner: A More Effective Comparison Starts With Relative Capacity
Administrator: JES2 Helps Expedite the Relocation of Data Volumes
Solutions: Double-Take Share 5.0 - Vanguard Security and Compliance Solutions - MegaCryption DB - ASG-TMON for DB2 - Reflection Suite for X - Orchestrated IT
Advertiser's Index
Stop Run: Wreck Diving Brings IBMer Face to Face With Lost History
Reference Point - Global Events, Education, Resources for Mainframe
IB Tape Storage
IBM Systems Magazine, Mainframe - July/August 2012 - Intro
IBM Systems Magazine, Mainframe - July/August 2012 - Cover1
IBM Systems Magazine, Mainframe - July/August 2012 - Cover2
IBM Systems Magazine, Mainframe - July/August 2012 - 1
IBM Systems Magazine, Mainframe - July/August 2012 - 2
IBM Systems Magazine, Mainframe - July/August 2012 - 3
IBM Systems Magazine, Mainframe - July/August 2012 - 4
IBM Systems Magazine, Mainframe - July/August 2012 - 5
IBM Systems Magazine, Mainframe - July/August 2012 - Editor's Desk: The Taste of Success
IBM Systems Magazine, Mainframe - July/August 2012 - 7
IBM Systems Magazine, Mainframe - July/August 2012 - Dashboard: Pay by Phone - Current Conditions - Work Without Boundaries - Digital Personalities
IBM Systems Magazine, Mainframe - July/August 2012 - IBM Perspective: The Performance of Many, the Efficiency of One
IBM Systems Magazine, Mainframe - July/August 2012 - Trends: Why zBX Outperforms DIY When Deploying a Hybrid Infrastructure
IBM Systems Magazine, Mainframe - July/August 2012 - 11
IBM Systems Magazine, Mainframe - July/August 2012 - 12
IBM Systems Magazine, Mainframe - July/August 2012 - 13
IBM Systems Magazine, Mainframe - July/August 2012 - 14
IBM Systems Magazine, Mainframe - July/August 2012 - 15
IBM Systems Magazine, Mainframe - July/August 2012 - Q&A: Accurate TCO Analysis Demonstrates the True Value of System z
IBM Systems Magazine, Mainframe - July/August 2012 - 17
IBM Systems Magazine, Mainframe - July/August 2012 - 18
IBM Systems Magazine, Mainframe - July/August 2012 - 19
IBM Systems Magazine, Mainframe - July/August 2012 - 20
IBM Systems Magazine, Mainframe - July/August 2012 - 21
IBM Systems Magazine, Mainframe - July/August 2012 - IT Today: IBM's Integrated Solution for System z Streamlines Software Delivery
IBM Systems Magazine, Mainframe - July/August 2012 - 23
IBM Systems Magazine, Mainframe - July/August 2012 - 24
IBM Systems Magazine, Mainframe - July/August 2012 - 25
IBM Systems Magazine, Mainframe - July/August 2012 - Case Study: Taking Shelter From the Storm: Shelter Insurance employs a measured approach in adopting Linux on zEnterprise 114
IBM Systems Magazine, Mainframe - July/August 2012 - 27
IBM Systems Magazine, Mainframe - July/August 2012 - 28
IBM Systems Magazine, Mainframe - July/August 2012 - 29
IBM Systems Magazine, Mainframe - July/August 2012 - 30
IBM Systems Magazine, Mainframe - July/August 2012 - 31
IBM Systems Magazine, Mainframe - July/August 2012 - Cover Story: Internal Transformation: System z is at the center of initiative, which has saved the company $100 million so far
IBM Systems Magazine, Mainframe - July/August 2012 - 33
IBM Systems Magazine, Mainframe - July/August 2012 - 34
IBM Systems Magazine, Mainframe - July/August 2012 - 35
IBM Systems Magazine, Mainframe - July/August 2012 - 36
IBM Systems Magazine, Mainframe - July/August 2012 - 37
IBM Systems Magazine, Mainframe - July/August 2012 - Feature: Large Memory Tames Big Data: The System z stack evolves to deliver business value from more memory
IBM Systems Magazine, Mainframe - July/August 2012 - 39
IBM Systems Magazine, Mainframe - July/August 2012 - 40
IBM Systems Magazine, Mainframe - July/August 2012 - 41
IBM Systems Magazine, Mainframe - July/August 2012 - 42
IBM Systems Magazine, Mainframe - July/August 2012 - Tech Corner: A More Effective Comparison Starts With Relative Capacity
IBM Systems Magazine, Mainframe - July/August 2012 - 44
IBM Systems Magazine, Mainframe - July/August 2012 - 45
IBM Systems Magazine, Mainframe - July/August 2012 - 46
IBM Systems Magazine, Mainframe - July/August 2012 - 47
IBM Systems Magazine, Mainframe - July/August 2012 - Administrator: JES2 Helps Expedite the Relocation of Data Volumes
IBM Systems Magazine, Mainframe - July/August 2012 - 49
IBM Systems Magazine, Mainframe - July/August 2012 - 50
IBM Systems Magazine, Mainframe - July/August 2012 - 51
IBM Systems Magazine, Mainframe - July/August 2012 - Solutions: Double-Take Share 5.0 - Vanguard Security and Compliance Solutions - MegaCryption DB - ASG-TMON for DB2 - Reflection Suite for X - Orchestrated IT
IBM Systems Magazine, Mainframe - July/August 2012 - 53
IBM Systems Magazine, Mainframe - July/August 2012 - Advertiser's Index
IBM Systems Magazine, Mainframe - July/August 2012 - Stop Run: Wreck Diving Brings IBMer Face to Face With Lost History
IBM Systems Magazine, Mainframe - July/August 2012 - 56
IBM Systems Magazine, Mainframe - July/August 2012 - Cover3
IBM Systems Magazine, Mainframe - July/August 2012 - Cover4
IBM Systems Magazine, Mainframe - July/August 2012 - Reference Point - Global Events, Education, Resources for Mainframe
IBM Systems Magazine, Mainframe - July/August 2012 - BG1
IBM Systems Magazine, Mainframe - July/August 2012 - BG2
IBM Systems Magazine, Mainframe - July/August 2012 - IB Tape Storage
IBM Systems Magazine, Mainframe - July/August 2012 - T2
IBM Systems Magazine, Mainframe - July/August 2012 - T3
IBM Systems Magazine, Mainframe - July/August 2012 - T4
IBM Systems Magazine, Mainframe - July/August 2012 - T5
IBM Systems Magazine, Mainframe - July/August 2012 - T6
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