ICWA modernized their aging mainframe platform to reduce costs and improve agility. They rehosted existing COBOL applications to a Micro Focus platform running on Linux servers with a DB2 database. This allowed them to compile the existing COBOL code with minimal changes, improving disaster recovery capabilities while gaining a 10% reduction in IT operating costs within 12 months. Key success factors included full executive support, dedicated resources, and a focused proof of concept to validate the technical feasibility before full implementation.

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 more cost- takes priority and third on theto start. Everything front ends toMy enough but
Which is the quickest 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 theour 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 toautomationdemand because –
can’t
mainframe applications it
moneymeet 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. Micro Focus and ICWA:
Insuring a successful migration

11. ICWA: some context
 The Insurance Commission of Western Australia (ICWA) is the sole compulsory Third Party Insurer
for motor vehicle personal injuries in Western Australia
 Provides unlimited cover to every owner and driver of a vehicle registered in Western Australia
 RiskCover Division manages the self-insurance and risk management arrangements of Western
Australian public authorities
 A government trading enterprise with 360 staff
 Own and manage $3.5b CTP fund and manage RiskCover fund on behalf of WA State Government

12. Context and Problem
 Aging Z9 Mainframe platform
 Specialised support and ‘black box’ mentality towards mainframe
 Limited resource available in marketplace to support and maintain environment
 High cost of ownership
 Limiting impact on Disaster Recovery capability
 Limited agility

13. Specific issues
 High locked-in cost
 Platform couldn’t easily support new initiatives
 The need to protect existing systems to leverage longer
 Need a contemporary platform on which systems could be easily leveraged and
enhanced without requiring “legacy” skills
 No mainframe in DR

14. Who identified and initiated the project?
 IT Division identified options to re-use trusted mainframe applications, without
replacing core systems, by re-hosting them to a new platform
 Initiative driven by the Chief Information Officer

15. Project objectives
 Reduced reliance on vendors
 Cost savings
 Productivity gains
 Support of new business initiatives through improved integration capability
 Enhanced Disaster Recovery capability

16. Specific goals and timelines
 Improved internal understanding of environment resulting in reduced reliance on
vendors
 Approx 10% efficiency improvement in IT operating costs
 Enhanced Disaster Recovery capability that exceeds organisational RPO and RTO
 12 months to deliver and implement new Micro Focus platform

17. Options considered
 Replace core systems with COTS solution
 Re-write core systems
 Re-host and leverage existing systems

18. What we did
 What approaches/strategies used?
 Decided to move applications to a new platform
• with the COBOL code recompiled (but largely untouched)
 This would deliver the fastest benefits including cost savings and web services enablement
 What technologies leveraged?
 Micro Focus COBOL/CICS platform running on Linux Intel servers and a DB2 UDB database

19. Challenges faced
 Aging unsupported platforms interfaced with the mainframe
 Finding enough business resource
 The ‘known unknowns’ and ‘unknown unknowns’
 Introduce new security and printing systems to replace Z series specific software
 Scepticism within the organisation!

20. How we overcame them
 Ensured full Board and Executive support
 Ensured commitment from business divisions
 Additional resources fixed unanticipated issues
 Assessed every COBOL program and all batch jobs
 Continually documented the environment as we progressed
 Encouraged project staff to push the limits
 Leveraged Micro Focus skills and experience

21. Lessons learned
 These are complex projects that need organisational commitment
 Treat this as a priority and reduce the number of other projects
 Focus resource on the project outcome – don’t try to do too much
 Identify and secure commitment from key technical and business experts early on

22. Recommendations to other users
 Treat it as a business, not an IT project
 Thoroughly understand how all interfacing systems utilise the mainframe
 Proof of concept needs to focus on interfacing systems not just the core platform
 Make sure key people are identified
 Don’t overtest!!!

23. What would we do differently?
 Where possible, stop other projects requiring the same resources
 Dedicate more technical and business division staff to the project than we initially had
 Involve the business more in the upfront planning and Proof of Concept (confirmed
technical feasibility)
 Commit more project administration resource

24. Critical success factors
 All core systems continue to operate as they did on the mainframe
 No impact on system performance
 Diminished reliance on outsource vendor
 Improved Disaster Recovery capability
 IT operating costs significantly reduced
 Java and COBOL can co-exist happily
 Small, committed, passionate team
 Three month PoC before undertaking

25. Results
 Significant cost savings
 A faster, more streamlined platform
 Higher online system availability
 Better printing facilities and user self help
 Faster web services enablement
 Closer working relationship between IT and business divisions
 12 month payback on ROI
 Mainframe now switched off

26. In summary ...
 We met all our initial goals
 New system is supported and managed in house the same as all other systems
 Significantly improved Disaster Recovery capability
 We achieved the success criteria and business benefits proposed in the business
case – Project was a success
 This should have been done a long time ago...!

27. QUESTIONS?

28. Thank you