“Learn about the 4 Key Steps to Application Modernization from Solutions Director Derek Britton along with our customer Jeroen van der Heijden, Chief Technical Officer at Raet. This presentation took place at the Gartner Symposium ITxpo in Barcelona on 7th November 2012.”

1. 4 Key Steps to Application Modernization
A Customer Perspective
Gartner Symposium ITxpo 2012
November 2012

2. Mainframe Value
 Robust
 Scalable
 High-performance
 Platform choice
 Improved TCO

3. Mainframe IT challenges vary by role
Head of Service Strategy Chief Technical
IT Ops Mgr Ops Mgr CTO QA Manager CIO
Development Delivery Mgr Manager Architect Analyst

4. We are running short
“Talent management processing
of batch Our mainframe environment can’t
My 3rd party suppliers won’t time we need to try to
is the #1 priority for and soon enough the new testing we need to do.
We know what
support We are stifled on 3270 and
change their pricing so weOur production system leaders,is difficult All our composite applications need
corporate butwe won’t be able to run
do, it up to decide My Java guys cut can’t meet demand because it
need to find a quickest takes priority and third on theto start. Everything front ends toMy enough but
Which is the more cost- from where list their
end-of-month in time – test against
code well mainframe takes too long to get application
effectivebuild of running the
way to way new last year” - PWC don’t have budget
frequently impacts ourrelates to
test the back-end – but our developers costly changes delivered.
weeverything else and they know nothing is
environment
business – what about our business experts
run schedules. We never for easy upgrade plus access or the knowledge.
there’s no the way of managing
services because I need We need no testto identify
don’t have We have first cases to
applications just aren’t
My teams everything else our testing isprocesses run the
just to the applications that of
We need to stop spendinghit test milestones. system atlas.
productive our All manual right now. speak of and use copies
should we use? enough to meet environment. are costing aon the there’s no
We are stifledus– 3270 and
but most
production datacomplex set of
nearly the our Op Ex on just
all backlog of business I have
All studies we do are immediately
Exhibiting common themes
keeping the lights on We need to find ways tocan’t meet demand because –
money mainframe applications it
automation oraprocess of
across variety behind
requirements out of date.
I can’t track changes I want to our Service
meet know how indicators – these towould up.
and it nothing else deliver
it takes too long are the
takes forever to set
Testing is hugely applicationsI only have a couple of
Which
We need to find ways to meet provide the same
I have 20% more made back to our we commitments which are any we need to changes
can overtake ones application assess first!
expensive in human
our Service commitments the applications that needs this original change request ourharder than ever
are making us business function
service delivery competition with
costs but also harder than ever do RAS but I’m paying a lot for
which are because it
most money – We won’t collaborate
projects to completethere is simply no
– superior IT
consumes over 50%have the skills toeach year. We need to fix
we of it properly unless we can all
this year than last joined up process functionality
mainframe resources them forward?
take this. use Eclipse
Head of Service Strategy Chief Technical
IT Ops Mgr Ops Mgr CTO QA Manager CIO
Development Delivery Mgr Manager Architect Analyst

5. Common themes
Which of our applications We must solve our Our mainframe testing We are running short
should we take forward? skills shortage is hugely expensive of processing time
We need factual insight We are stifled using We never hit our test We need to budget for
to shape our IT strategy 3270 software and QA milestones the mainframe upgrade
What is the impact of My teams aren’t We need 20% more We need to replicate
this system change? collaborating enough capacity for testing core systems quickly
Knowledge Development Quality Deployment
Head of Service Strategy Chief Technical
IT Ops Mgr Ops Mgr CTO QA Manager CIO
Development Delivery Mgr Manager Architect Analyst

6. Your Modernization Journey
Unified Mainframe Test Environment,
Portfolio Knowledge Application Test Data Application Service
and Management Development Management Deployment
Knowledge Development Quality Deployment
Enterprise Test
Enterprise Analyzer Enterprise Developer Enterprise Server
Server
Micro Focus Enterprise product set

7. Enterprise product set
Client Objectives Key Requirements Micro Focus Solutions
Application Service Delivery
Prioritization and cost containment of Understand the application landscape.
Modernization projects Simplify complexity Enterprise Analyzer
Modernization
Reduce cost of maintenance
Cut through traditional development
improving development group Enterprise Developer
processes and log jams
efficiency and quality
Aligned and Effective Improved Service Delivery Cycles Enterprise Test Server
Application Service Delivery
Exploit contemporary
technology for accelerated and Rapid, Cost-Effective Enterprise Enterprise Server
agile workload delivery Application Deployment

8. Modernization: sound practice
Package 10x cost
COST Rewrite 4x cost
Modernize 1x cost Lowest cost
Package Medium risk
RISK Rewrite High risk
Modernize Low risk Lowest risk
Package 2-3 years
TIME TO
Rewrite 3-5 years
VALUE
Modernize 4 months Shortest time
Package 0/10 competitive advantage
COMPETITIVE
ADVANTAGE Rewrite 6/10 competitive advantage
(0 – 10)
Modernize 10/10 competitive Greatest advantage
advantage

9. Thank you

10. Real life replatforming
Jeroen van der Heijden
CTO – Raet
7 November, 2012

11. Raet
Acquisition by strong international
Growth
investor CVC Capital Partners
Internationalization No1 strategic
“from Payroll to priority
Total HR Solution”
Multilanguage; Support Dutch
Shifted to SaaS multinationals
Development and growth
in HR BPO Standalone eHRM
International acquisitions
Market leader with focus on
Focus on and large innovation, mobile and self-
growth in Personnel service
and Salary
Administration
14,000 customers
2.7m people on our systems
time
1962 1995 2006 2011

12. Raet

13. About Raet
• No. 1 IT services provider in HR and payroll services in the
Netherlands
• Founded in 1965; based in Amersfoort, The Netherlands
• Both SaaS solutions for HR / payroll and HR outsourcing
• More than 2 million salary and pension calculations every month
for clients
• Market share of 35+% and more than 14,000 client organizations.
• International expansion started with new brandname: Youforce

14. Client base
• Businesses: including banks, insurance companies, industry,
retailers, ICT companies.
• Healthcare: including hospitals, home care organisations, mental
health institutions, nursing homes.
• Government: including local authorities, provinces, police forces,
fire brigade.
• Education: including schools on every education level.
• Pension funds

15. Explosive growth of eHRM portal
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0

16. Introducing Gemal
• Batch-oriented payroll engine for Not for Profit market in NL
• 1,1M payslips monthly
• COBOL / JCL / Rexx on z/OS
• DB/2 database
• Total storage on mainframe: 1 TB
• Code 40+ years old
• Development team: 30, average age 55+

17. Reasons for replatforming
• Need for improved flexibility in capacity
• Wanted to move from batch oriented to real time user experience
• Ageing workforce: 7 programmers out of 30 soon to retire
• Desire to standardise IT architecture
• Mainframe maintenance and running costs in a highly cost-
competetive market (need to protect business advantage)
• Drastic TCO reduction
Raet

18. The proposed change
• z/OS => Windows
• DB2 => Microsoft SQL Server
• Endevor => Team Foundation System
• TSO/ Mainframe Express => Micro Focus technology
Technologies leveraged
• COBOL
• JCL
• REXX (to be abandoned following move to Cloud)

19. In a picture
Gemal Wintel

20. Pre-migration Assessments
- automated technology to quickly and accurately plan the project

21. … the bad and the ugly
• Lots of undocumented Rexx and system dependant JCL
• Lots of undocumented intermediate files, containing complex data
structures
• Project took 20 months instead of 9 months

22. Batch duration on Mainframe in Jan 11

23. Batch duration on Wintel in March 11
Salarisproducties maart
Tijd tussen afroepe en beschikbaar zijn
20:00:00
16:00:00
dossier on line
12:00:00
8:00:00
4:00:00
0:00:00
1 501 1001 1501 2001 2501 3001
Aantal verwerking

24. Batch duration on Wintel in Sep 11
Salarisproducties September
Tijd tussen afroep en beschikbaar zijn dossier on line
12:00:00
8:00:00 Toekomstig SLA
4:00:00
0:00:00
1 501 1001 1501 2001 2501 3001 3501
Aantal verwerkingen

25. Project gains
• Mainframe cost savings: €1.000.000+ p.a.
• Need fewer staff to run the new system: - 2 FTE
• Speed:
– Processing PostNL:
 20+ hours on mainframe
 <6 hours on Windows
• Processing power boost - up from 130K calculations to 250K
• Opportunities to improve flexibility
– Additional processing power at reasonable cost

26. Gemal in the Cloud
• New Micro Focus Enterprise Server for Windows Azure
• The great compatibility from mainframe to Windows now moves
into the Cloud
• Suddenly, applications on legacy platforms will run on leading
edge technology

27. Summary
• Replatforming Mainframe to Windows using Micro Focus
Enterprise Server is a great opportunity
– Not easy
– Very rewarding
• Enterprise Server for Azure is opening up completely new
opportunities

28. QUESTIONS?

29. Thank you