IBM Systems Magazine, Mainframe - July/August 2012 - 20

Q&A
horsepower. With a mainframe, you only pay for the new capacity you’re getting. The existing capacity is paid for, even though you get a completely new box. With distributed technology, when you replace a server, you have to buy a complete new piece of hardware with no rebate or trade-in value from the old system. That may apply to the software as well.

“We’ve even heard of a couple of customers who included the CORPORATE JET in their mainframe costs!”
—David Rhoderick

Q. With so many factors in play, your team recommends companies perform a workload analysis to determine the true TCO. Why do you feel that’s the most accurate approach? A. There’s a direct linkage between IT workload and revenue, and hence

On the Web
Eagle Eye
IBM’s Eagle Studies provide a clear view of true technology costs www.ibmsystemsmag.com/mainframe/ Business-Strategy/ROI/total_cost_of_ ownership

profit; so accurate TCO measurement and analysis will lead to better decision making that’s focused on business growth. To do that, it’s essential to analyze workloads and their costs. Almost all companies we deal with have different situations and costs, so an individual analysis makes the most sense.

Tipping the Scale
Labor expenses should influence IT acquisition decisions www.ibmsystemsmag.com/mainframe/ Business-Strategy/ROI/mainframe_TCO

Hurdling Barriers to Success
IBM demonstrates how Cognos on System z is less expensive than x86 deployments http://ibmsystemsmag.com/mainframe/ Business-Strategy/BI-and-Analytics/ Hurdling-Barriers-to-Success

System z10 and the Data Center
Mainframe helps the data center achieve lower TCO and less power consumption www.ibmsystemsmag.com/mainframe/ trends/z-os/System-z10-and-theData-Center

Q. What are the steps in calculating actual TCO? A. First of all, establish the company’s true workload measurements—whether they’re transactions per second, reports per hour, messages per second, or whatever. Now you’ve got a common metric. If you’re comparing a mainframe with a distributed server, they both have to achieve this same workload measurement. Then design or configure how big those systems need to be and determine all of the components of those configurations. This is what we call TCA—total cost of acquisition—how much hardware and software you need. But that’s only the first step. The next step is to figure out how much floor space, labor, networking, power, cooling and so on are required. Then you need to decide if disaster recovery capabilities are needed. When all of these steps are completed, you’ve derived the TCO for each alternative.

Q. Another key part of this process involves analyzing a company’s platform utilization. Why is that so important? A. Platform utilization exposes efficiency. In particular, if you drive your systems at 100 percent utilization, the cost per unit of work comes down dramatically. Because PCs can’t run at 100 percent, you need a lot more PCs and infrastructure to come close to the mainframe’s capacity. A nd that drives up overall costs. Q. For organizations beginning this kind of an analysis, where’s the best place to start? A. At IBM, we have the Eagle team, which can be engaged very quickly. These experts can come in and help customers understand all of the aspects that I’ve explained in terms of the total cost of ownership. It’s what I call the true TCO analysis. These analyses are provided at no cost to the customer—typically in four weeks. That’s where I think they should start. Q. So the customers set the parameters and the Eagle team conducts the study based on their requirements?


http://www.ibmsystemsmag.com/mainframe/Business-Strategy/ROI/total_cost_of_ownership http://www.ibmsystemsmag.com/mainframe/Business-Strategy/ROI/mainframe_TCO http://www.ibmsystemsmag.com/mainframe/Business-Strategy/BI-and-Analytics/Hurdling-Barriers-to-Success http://www.ibmsystemsmag.com/mainframe/trends/z-os/System-z10-and-the-Data-Center

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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