Modernizing on IBM Z Made Easier With Open Source Software

1. Modernizing Development on IBM Z using Open Source Al Gillen Group VP, Software Development and Open Source January 2021 © IDC

2. Agenda OSS Use Today 2 © IDC Essential Guidance Realities of Supporting OSS IBM Z and OSS The Value of Commercially Supported OSS

3. Open Source Software is Widely Used Today 77% of Organizations use Open Source Today; 7% More Plan to Begin Using Soon 3 No OSS in use, no future plans for use 22% No OSS in use, plan to use in next 12-24 months 7% Currently use, plan to reduce in 12-24 months 4% Currently use, no change of usage in 12-24 months 13% Currently use, adding more in next 12-24 months. 54% QS6. Does your company currently use or plan to use OSS to support enterprise workloads or in software that your organization writes? QS6A. Why have you not yet used any OSS in your company's servers or cloud instances? © IDC n =200, n=56 Source: IDC US Open Source Software Use Survey, October 2019 Can't use b/c of existing contracts… Key apps not supported on OSS OSS did not meet our needs Security concerns Well served by other SW solutions IP concerns 0 20 40 Current Use Nonuser Justifications Percent

4. OSS is Widely Used in Development; Community Involvement Grows Sharing Internal Code as OSS, not so Much Today 4 © IDC Q7. Do you use external OSS in your development work? Q8. Do you collaborate on industry-specific open source products, or might you do so in the future? Q9: Do you share internal creations as OSS? n =200, 200 Source: IDC US Open Source Software Use Survey, October 2019 Use External OSS in Dev, 76% Don't use External OSS, 20% Not sure, 4% Q7: External OSS Use Today We share software we create as OSS today, 18% Don't share any of our technology as OSS today, 29% Don't share our SW as OSS today, hope to in the future, 53% Q9: Share Our Code as OSS Collaborate OSS industry solutions today, 65% Don't collaborate on OSS, 10% Don't collaborate on OSS, hope to in future, 25% Q8: External Collaboration

5.  Developing using OSS offers: • Modernizes skills • Vastly expands access to developers • Skills readily transferable  Applications built using OSS • Become more portable • Longer shelf life • More supportable  Collaboration with the larger community • Ability to start up community projects with industry peers • Collaborate on solutions across platforms © IDC 5 Enabling Standardization with Open Source Software

6. © IDC 6 Value Expected Focused More on Benefits and Speed, Less on Cost Q6. What are the benefits your organization gets or expects it will get from using open source software? n =200 Source: IDC US Open Source Software Use Survey, October 2019  Best technology  Competitive advantage  Speed/ease of development  Cost benefits 30 40 50 60 70 Accelerated dev, test and prototyping Reduced software/subscription costs Exposure to emerging tech for our devs and ops Access to tech allowing better/faster innovation Develop using OSS services, code & microservices (% of Respondents) Anticipated Benefits of OSS

7. 40 45 50 55 60 Data management LoB Software Infrastructure Software DevOps Software Ops Software API mgmt, msg queuing, streaming Dev Tools Modern App Platform (Containers) Deploy Plats (PaaS, FaaS, Serverless) App Server Platforms Private Cloud (% of Respondents) OSS Use in CY2019 OSS Expected Use in CY2021 © IDC 7 OSS Usage in 2019 and Projected for 2021 Q4/5: For each of these classes of software, today and in 24 months in the future, what percent of your total software is/will be open source software? Base = Companies that use at least some OSS in their environments n = 126, 137, 112, 124, 118, 108, 144, 118, 135, 134, 136 Source: IDC US Open Source Software Use Survey, October 2019  OSS continues to dilute proprietary software  Virtually every market segment has OSS competitors today  Developers are particularly heavy users of OSS  But devs tend to be do-it- yourselfers with OSS  Leads to a reduced focus on devs by commercial OSS

9. Acquisition Costs Staff Labor Costs Infrastructure Costs Downtime/ IT Staff Downtime/ Users All software comes with:  IT staff training /expertise  Deployment costs  Lifecycle expectations  Support obligations  Maintenance – fixes, patches, security issues  Recovery from downtime  Decommissioning costs © IDC 9 The Realities of Supporting Software Source: IDC, 2021

11.  IBM is a major supporter of open source software • Long time sponsor of OSS foundations • OSS available on all IBM platforms • IBM contributes and open sources technologies • Rocket Software is one of a finite number of Z-focused OSS vendors (and key IBM partner)  Substantial investment in open source enablement • Developer ecosystem • Application ecosystem • Portability of solutions • Portability of skills  Long term platform viability • Relevance • Extensibility 11 © IDC IBM Z and Open Source Software

12.  Scripting language  Well suited for Web workloads  General purpose language  Available for most platforms  Large skilled workforce 12 © IDC OSS Solutions for z/OS  Source control system  Performant, lightweight  Java library  Build tool for apps  Secure sockets layer  Transport layer security  Package management system  Dependency management

13. 3.5 4.6 4.0 6.5 1.7 2.6 1.9 3.4 2.3 3.5 1.7 2.0 0 2 4 6 8 10 12 PHP (2020) PHP (2024) Python (2020) Python (2024) Use Among Professional Developers Heavy Use Moderate Use Infrequent Use 13 © IDC PHP and Python Usage Among WW Devs 7.4 10.8 7.6 11.8 Source: IDC PaaSView and the Developer, 2020 (IDC #US46799420, Aug 2020) Millions of Developers, Worldwide

15.  Community support may or may not be available when needed  Community may or may not be able to address problems  Solutions often require update of products  Customers take responsibility for verifying the security of code and dependencies  Frequent updates to code base  Customers need to stay engaged with community to be aware of issues 15 © IDC Challenges of Using Community OSS n = 200 Source: IDC Open Source Software Use Survey, Oct 2019

16.  Support programs to meet customer’s needs (8x5, 24x5, 24x7, etc.)  Vetting/hardening of community code  Software composition analysis, license verification  Confidence/assurance of quality of those updates  Steady stream of vetted updates delivered without having to engage directly with the community (i.e., maintenance)  Alerts for security vulnerabilities  Community engagement on your behalf 16 © IDC Why Supported OSS has Value n = 200 Source: IDC Open Source Software Use Survey, Oct 2019

17.  Infrastructure efficiency  Downtime impacts • Staff • End users/Customers  Acquisition costs • Typically not a savings area  Staff labor costs 17 © IDC Cost Savings Contributors Acquisition Costs Staff Labor Costs Infrastructure Costs Downtime/ IT Staff Downtime/ Users Source: IDC, 2021

19. Advice for the IT Buyers 19 © IDC 1. The future of software is dominated by open source solutions 2. Most new software built today is open source 3. Technologies used across multiple platforms offer value in terms of skills availability, app portability and long-term support 4. Commercially supported OSS generally offers a better value proposition for end users – except in unusual circumstances 5. Buyers increasingly participating in OSS projects, and often, launching their own OSS projects

20. For More Information LinkedIn https://www.linkedin.com/company/idc Twitter https://twitter.com/@IDC www.idc.com Al Gillen agillen@idc.com @algillen 732-784-7240 © IDC 20

21. Managed Open Source: Rocket® Open AppDev for Z Peter Fandel, Director of Product Management 1/28/2021

22. z/OS: security, availability and high transaction processing z/OS is used by • The top 66 Banks in the World • Over 100 countries and government agencies • 21 of the 25 largest insurance companies • 90% of the credit card companies • 70% of the Global Fortune 500 companies Consistency Availability Performance z/OS

23. Poll 1 Are you using open-source languages and tools in production on your z/OS environment?

24. Benefits of modernizing in-place Those who modernize in place are: US healthcare company with $700 million in annual revenue did a deep cost analysis and decided re-platforming wasn’t an appropriate path, when they saw for every $1 spent to modernize their IBM environment, they’d have to spend $2 to re-platform, with an uncertain success. 7/7 more satisfied vs re-platformers in all user aspects 2.5% annual savings vs re-platforming annual revenue growth 5% criteria “IBM Z is very important (…). To kind of shock and reload or to reinvent the wheel would have been extremely costly and time prohibitive for us.” - IBM Z modernizer

25. Commercially-supported open source Accelerate modernization with innovation Supports hybrid-cloud strategy Cloud-native technology Extend DevOps to z/OS Modernization outcomes Benefits of using open on z/OS Integrates modern app components Enable next-gen developers & tools Accelerates dev, test and prototyping “35% of IBM Z businesses have executive initiatives in place . . . and it is growing” - IDC

26. Poll 2 What are the obstacles preventing the increasing use of z/OS open source within your organization?

27. Adopting open on z/OS Considerations for… User experience Security Version latency Expert support Ongoing maintenance Compliance Security vulnerabilities 78% 53% 63%

28. Rocket® Open AppDev for Z

29. More than code… 29 Rocket® Open AppDev for Z New technology for rapid security updates World-class support Secure delivery and deployment It's about security, compliance and support 20+ open-source languages and tools

30. Popular tools in the distributed world curated for traditional systems Developer Operator Security

31. Escalated secure access from trusted sources 31 Supported by Rocket Do-it-yourself, complex deployment, no support

32. © Rocket Software, Inc. or its affiliates 1990–2019. Company Confidential. For Internal Use Only. Conda workflow – example Git for z/OS 32 > conda install –channel local-file-channel git > conda install –channel condaserver.rocketsoftware.com git Download solution bundle air-gapped system? yes no Channel update script Rocket secure conda channel Rocket Portal Your on premise conda channel Initially (and periodically for updates)

33. World-class support and community engagement We live and celebrate the mission-critical platforms that drive your business. • One class of support—Everyone is a priority • Support professionals—9-years average tenure • 96%+ customer satisfaction rating—Best in our segment • Training and developing next generation talent with Rocket.Build & RocketShips • We won’t allow a customer or partner to fail. Ever. At Rocket, we’re a different kind of software company— supporting your success drives everything we do The Rocket Forum Create your forum account www.rocketsoftware.com/forumregister As a member, you can: • Keep up with product news, information, updates, and help chart product development • Take advantage of peer learning, content and knowledge sharing, and grow in your professional development and reputation as a subject matter expert • Build relationships with fellow customers, subject matter experts, and Rocketeers Our virtual headquarters for customers, prospects, partners and Rocketeers, your destination to discuss "all things Rocket”

34. Adopting open on Z In summary… User experience Security Version latency Ongoing Maintenance Compliance Security Vulnerabilities 78% 53% 63% conda automated porting Expert support 24x7 support

35. The Rocket Forum Create your forum account www.rocketsoftware.com/forumregister As a member, you can: • Keep up with product news, information, updates, and help chart product development • Take advantage of peer learning, content and knowledge sharing, and grow in your professional development and reputation as a subject matter expert • Build relationships with fellow customers, subject matter experts, and Rocketeers Our virtual headquarters for customers, prospects, partners and Rocketeers, your destination to discuss "all things Rocket”

36. Next steps • Read the IDC report: new research proves that modernizing legacy platforms drives legendary results • Read the IDC tech spotlight: Making open source work for you: Achieving Optimum Speed, Security, and Value Download free IDC whitepaper info.rocketsoftware.com/idc Download free IDC whitepaper info.rocketsoftware.com/idc

37. Thank you!