Future Mainframe

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    The future of the mainframe

    Gary Barnett

    October 2005

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    THE FUTURE OF THE MA INFRAME

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    The future of the mainframe

    I n 1 9 9 1 t h e t e c h n o lo g y w r i t e r St e w a r t A l so p w r o t e , I p r e d ic t t h a t

    t h e l a st m a i n f r am e w i l l b e u n p l u g g e d o n 1 5 M a r ch 1 9 9 6 . H o w e v e r ,

    d e s p it e t h e p r e d i c t i o n s o f cl i e n t- s e r v e r g u r u s t h r o u g h o u t t h e

    1 9 9 0 s t h e m a i n fr a m e d i d n t d i sa p p ea r . I n 2 0 0 4 , t h e I B M

    m a i n f r am e c el e b r at e d i t s 4 0 t h b i r t h d a y , a n d i n Ju l y 2 0 0 5 I B M

    u n v e i l e d i t s l a t e st o f f e r i n g , t h e z 9 , t h e r e s u l t o f o v e r $ 1 b i l l io n o f

    i n v e s t m e n t i n R& D . T h e m a i n f r a m e is n t g o i n g t o d i sa p p e a r a t a n y

    t i m e in t h e n e x t d e c a d e at l e a st . H o w e v e r , t h e m a i n f r a m e e n v i r o n m e n t i s s et t o c h a n g e si g n i f i c a n t l y o v e r t h e n e x t f i v e y e a r s ,

    w i t h t h e n u m b e r o f s m a l l m a i n f r a m e s s ee i n g a s ig n i f i ca n t d e c l in e ,

    w h i l e t h e n u m b e r o f l a r g e r m a i n f r am e s g r o w s s lo w l y , b u t s t e ad i l y .

    T h i s r e p o r t p r e s e n t s o u r p r e d i c t io n s f o r t h e m a i n f r a m e ; in w h i c h

    w e f o r e ca st t h a t o v e r t h e n e x t f i v e y ea r s t h e n u m b e r o f i n d i v i d u al

    m a c h i n e s w i l l f a l l , b u t t h e t o t a l n u m b e r o f d e p l o y e d MI PS w i l l

    c o n t i n u e t o r i s e.

    Key messages

    The mainframe is alive and well as a platform for verylarge workloads

    The mainframe is alive and well at the high end. IBM is keeping the

    promises that it made in its mainframe charter and continues to deliver

    steady improvements in price/performance. At the very high end (in the

    more than 2,000 MIPS category) IBMs new mainframe, the z9, has done

    a lot to secure the future of the zSeries.

    Mainframe price/ performance continues to improve

    but not at the same pace as x86

    The z9 delivers a huge improvement in total cost of ownership, providing

    nearly double the performance for a similar price. However, IBMs

    challenge is that, while it is steadily delivering price/performance

    improvements in the order of 1520% a year, x86 (Intel and AMD)

    price/performance improvements are running at almost double that pace.

    Despite the improvements, the cost viability of themainframe at the lower end is threatened

    The dramatic and continued improvements in the price and performance of

    non-mainframe technologies mean that the alternatives are becoming

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    increasingly attractive. IBM will find it increasingly difficult to justify thehuge price differential between a 1,000-MIPS mainframe and the

    equivalent computing power delivered on an x86. IBM needs to address

    this urgently, as the vast majority of mainframes belong in the sub-1,000

    MIPS category.

    Migration is an excellent option for some

    Migration away from the mainframe will be an excellent opportunity for a

    significant number of small mainframe users. But it wont be the cure-all

    approach that some migration enthusiasts claim. Migration needs to be

    considered as part of an overall approach to legacy modernisation and

    renewal many large companies will do a range of things, migrating some

    applications, replacing some, and leaving others where they are. The goal

    is to ensure that you deliver the functionality that the business needs

    today, are capable of delivering the changes that the business will ask for

    tomorrow, and are able to do so while keeping cost and risk at bay.

    Drag and drop migration technology is available today,and it works

    Several companies offer migration technology that makes it possible to

    take mainframe applications off the mainframe and move them to another

    platform. Companies like Micro Focus and Sun offer middleware thatnatively emulates the mainframe environment, making it possible to

    perform the migration without having to undertake a complete rewrite.

    Rip and rewrite is a high-risk, low-reward approach

    There are two approaches to the often talked about rip and replace

    approach. Both involve effectively switching one application off and

    replacing it with another. However, the way in which you choose to

    replace the old application has a huge impact on risk. If you opt to

    replace an old application with an off-the-shelf alternative then the risks

    that you encounter will be relatively well bounded. However, if you elect to

    completely rewrite your old application the risk profile changes

    dramatically. We would regard rip and rewrite as a last resort when it

    comes to legacy renewal Weve seen far too many projects of this nature

    flounder to regard it as an obvious choice.

    Application replacement w ill drive many migrations atthe low end

    At the lower end of the spectrum, we expect many of the migrations that

    occur to be driven by the acquisition of new applications. In some cases

    the new application will be a ported version from the same application

    that runs on the legacy platform. Here migration will be driven by

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    independent software vendors and their desire to lower the total cost ofacquiring their solution. In other cases, migration will be driven by the

    selection of a brand new application that runs on a lower-cost hardware

    platform.

    Messages for users

    Dont panic!

    The mainframe is fit and well

    There is no crisis (although with ongoing budget pressure it may feel like

    that at times). The mainframe is not going to disappear any time soon, nor

    is IBMs commitment to it.

    The skills crisis is a decade away

    The skills crisis that some commentators claim will bring the world of

    Cobol to a halt is at least a decade away, so there is no need for urgent

    action. However, employers need to consider the changing needs of a

    developer population that is undoubtedly getting older.

    You have plenty of choices

    You have choices, and the smart suppliers will be the ones that can help

    you take different approaches. Beware of the supplier that only talks about

    migration as opposed to legacy renewal.

    Do the analysis carefully

    You need to begin by being absolutely clear about why you need to look

    at legacy renewal and migration in particular. Are you looking for cost

    savings? Do you need more flexibility? What would the impact of migration

    be to the migrated applications and the applications that stay where

    they are?

    Take a systematic approach

    We strongly advise our clients to take a methodical and systematic

    approach It should start with a clear statement of needs, and then be

    followed by a detailed analysis of the alternatives. When examining the

    potential cost benefits, it is essential that you look at all the costs that

    each option will incur.

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    Messages for vendors

    Focus on choice: one size fits all wont work

    There is no single answer to the question of legacy renewal and

    modernisation. If you can only address one element (if youre a code

    analysis specialist or a migration specialist) then dont pretend that you

    have the answer because you dont. Its ok to play in a niche, but if you

    do so you need to be very careful that you develop the right partnerships

    to ensure that you can offer clients a range of options and help them to

    choose the most appropriate. If youre only going to tell your clients to

    migrate then both you and they are likely to be disappointed.

    Create a broader legacy renew al process to help clientsselect an approach

    Ultimately the doing it question is relatively easy to answer the hardest

    task is determining what the it should be. Vendors that have a

    methodology or process to help in this initial phase will benefit in two ways

    firstly theyll become part of the clients internal process, and secondly

    theyll be in a great position to bid for the doing it component.

    We would encourage vendors to go further and promote a standard

    approach to legacy renewal and modernisation.

    Mainframe application vendors need to take on thechallenge of mainframe pricing

    One of the biggest motivators among end-user organisations for migration

    is the licensing cost of mainframe software. Application vendors have to

    play a role in protecting their mainframe revenues over the long term by

    embracing more flexible licensing models. At a minimum, vendors need to

    support sub-capacity pricing; ideally, they should support licence scale-up

    and down on demand.

    Mainframe application vendors need to broaden theirplatform support

    If youre a mainframe application vendor you should be looking at ways to

    broaden your platform support. If you currently have a large and loyal

    mainframe-based installed base then it wont make any sense to desert it,

    but you should look at the cost of porting your application so that it runs

    on non-mainframe platforms as well. One approach is certainly a drag and

    drop migration, using middleware to natively emulate the mainframe

    environment on non-mainframe platforms. This allows you to continue

    developing your mainframe code without having to dramatically re-tool

    and re-skill. A second option might be to make a move to Linux this

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    would allow you to continue selling for the mainframe (using themainframes Linux support), as well as the wide range of hardware

    platforms on which Linux runs.

    Messages for IBM

    This is happening now, do something

    The number of enquiries that were getting from our clients about the

    viability of the mainframe platform, mainframe migration and the future of

    Cobol has grown significantly in the past twelve months. Our clients, and

    yours, need to know what their options are.

    Currently, the choice that many see is, stay with IBM on the mainframe,

    or move to non-IBM hardware. Plainly this doesnt make sense IBM has

    a wide range of non-mainframe hardware offerings in the form of pSeries,

    iSeries and xSeries. Surely if people are going to move off the mainframe

    platform and a growing number will it makes sense for IBM to help

    them move to one of its non-mainframe platforms rather than to a

    competitors?

    In essence were saying, make sure that as many of the defections as

    possible are to other IBM technologies and not to a competitors.

    Talk about the mainframe charter more

    Over the past 18 months there have been a host of minor announcements,

    and some fairly major ones, that all contribute to IBMs delivery on the

    promises set out in the mainframe charter.

    In isolation these announcements often seem fairly insignificant to

    customers and analysts, but taken as a whole they can be used to

    demonstrate the significant progress (and investment) that IBM is making.

    Give your clients options and explain the differencesbetween them

    IBM is finding it increasingly difficult to explain the differences between the

    mainframe and its non-mainframe hardware portfolio. The traditional

    differences (reliability, availability, scalability and security) are being

    eroded very quickly. For most sub-1,000 MIPS deployments the quality-of-

    service differentiation simply no longer applies.

    IBM needs to develop a clear approach to determining which platform suits

    a particular client given their situation. IBM must accept that mainframe

    wont always be the right answer.

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    Support your ISVs by helping them port/ migrate

    IBM has been doing a great job of persuading ISVs to adopt a more

    sensible and long-term view of software pricing, but IBM is still only part of

    the way there.

    IBM needs to help ISVs in two ways:

    it should provide assistance to help them support more flexible pricing

    models

    it should be willing to help ISVs migrate their applications.

    Once again, the message here is that if IBM doesnt, then someone else

    will.

    Putting the mainframe in context

    Many legacy applications and systems are IT assets that have a particular

    combination of attributes: they manage resources that are crucial to the

    operation of the business, and they are seen as inflexible or brittle in the

    face of technological and business change.

    Increasing numbers of large businesses (and these are the ones which

    tend to host legacy systems) are looking to make significant adjustments

    to their IT portfolios in order to align IT expenditure and operations with

    business priorities. It is clear from this that if these grand ITtransformation projects fail to properly address legacy applications and

    systems, they themselves may well fail to deliver value.

    Analysis

    In general terms, the mainframe is fit and well. Brand-new mainframe

    MIPS shipments (as opposed to replacement MIPS) continue to grow by

    around 15% a year, and the number of lines of Cobol code in production

    continues to grow by between 3% and 5%. The mainframe isnt going to

    disappear tomorrow; indeed, we expect mainframes to be in production

    well into the next decade at least.

    While the number of deployed MIPS is set to grow, the number of

    deployed mainframes will decline. Essentially, at the high-end, mainframes

    are getting bigger while at the low-end a significant number of smaller

    mainframes will be switched off.

    Over the next five years smaller mainframes will come under intense

    pressure from x86-based (Intel and AMD) platforms as their

    price/performance improvements out-pace the mainframes by a significant

    margin. The price/performance gap is still widening, despite the excellent

    progress that IBM has made with the mainframe.

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    Mainframes run the w orld

    Despite the excitement that has surrounded the Web and new

    programming models like Java and J2EE (as well as Microsofts .NET),

    older, less trendy technologies account for the vast bulk of computer

    processing today.

    For example, Cobol remains the most widely deployed programming

    language in big business, accounting for 75% of all computer transactions

    and it is not going to go away. Cobol is pervasive in the financial sector

    (accounting for 90% of all financial transactions), in defence, as well as

    within established manufacturing and insurance sectors. We estimate that

    there are over 200 billion lines of Cobol in production today, and thisnumber continues to grow by between three and five percent a year.

    IBM and the mainframe

    IBM is the leading mainframe vendor, with over 70% market share.

    Therefore, while this report covers the global mainframe market it is

    largely dominated by IBM.

    IBM is committed to its mainframe technology: the recent release

    of the z9 (IBMs latest generation of the zSeries platform)

    demonstrated the fact that IBM is committed to supporting its existing

    clients and sees a long-term future in the platform. IBM has invested

    well over $1 billion in developing the z9, and has committed to

    continue investing heavily in mainframe R&D.

    IBM is improving the economics of the p latform: IBMs mainframe

    charter represents a commitment on IBMs part to its mainframe using

    clients. To drive down the total cost of the mainframe platform (that is,

    the cost of the hardware, software and administration) and to make it

    a first-class citizen in the (comparatively) new world of distributed

    computing.

    Concerns about the mainframe

    In spite of IBMs pretty impressive record of keeping the promises it madewhen it launched the mainframe charter, there are still serious concerns

    among our mainframe-using clients about the viability of the mainframe.

    Price

    The cost of mainframe hardware is still very high; in many cases

    Intel/AMD-based hardware is ten-times less expensive.

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    Cost of integration

    Although much has been done to make it easier to integrate mainframe-

    based applications with distributed applications, the integration of these

    two worlds is perceived by many as costly and complex.

    This perception would be partially addressed if IBM and other vendors in

    the mainframe integration space did a better job of explaining their

    capabilities today. However, even with the significant improvements of

    mainframe connectivity and in the platform itself (the latest release of

    CICS, for example, allows Cobol applications to publish and consume web

    services) the integration of legacy applications is still expensive and

    difficult.

    Cobol skills

    There is growing concern among our client base about the availability of

    Cobol skills. We do not believe that there will be an acute shortage of skills

    in the short term, because the fall in the number of Cobol developers will

    be offset by a comparable reduction in the amount of Cobol development

    that takes place. Over the longer term, we do see a shortfall in Cobol skills

    in the 20152020 timeframe as the older generation of Cobol developers

    (in the 4555 age range) leaves the workforce.

    Viable alternatives to the mainframe are emerging

    The price/performance advantage of non-mainframe platforms has

    traditionally been offset by the other virtues of the mainframe, particularly

    in terms of quality of service (reliability, availability, scalability and

    security), as well as manageability. Typical mainframe utilisation levels are

    more than double the typical utilisation level of an AMD or Intel-based

    machine, thanks to the mainframes support for virtualisation.

    However, things are changing rapidly. The reliability of non-mainframe

    platforms is closing on the mainframe, and technologies that used to be

    the preserve of the mainframe (notably virtualisation) are now crossing

    over to the world of Intel and AMD.

    The mainframe and the CIO agenda

    While the CIO may use different words, every CIOs agenda boils down to

    three things: cost, innovation and risk, as shown in Figure 1.

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    Figure 1 Cost, innova tion and risk

    Cost

    RiskInnovation

    Source: Ovum

    Ultimately, the CIO wants to support greater innovation, whilst lowering

    both cost and risk.

    The cost/ innovation/ risk equation embodies a dilemma

    However, this equation contains a built- in dilemma in that any

    improvement in one of the three factors is likely to have an adverse

    impact on the remaining two.

    Cost: how do you lower cost without reducing the number of things

    you can do or by cutting corners and exposing yourself to higher

    levels of risk?

    Risk: how can you reduce risk without spending more or doing less?

    Innovation: how can you increase the rate at which you innovate

    without spending more money or putting up with higher levels of risk?

    The most successful IT decisions address all three issues at once

    We use these three factors as a tool in helping CIOs to develop a strategy

    and make key decisions. CIOs need to identify initiatives that bring

    benefits in each of the three factors, while ensuring that one attribute isnt

    over-stressed at the expense of the others.

    We also use this approach when talking to vendors about their offerings

    if a salesperson cannot explain how the product will help to address at

    least one, but preferably all three, of these issues, then its going to be a

    tough sell.

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    Cost will never come off the agenda

    Cost will never cease to be a key priority for IT managers. While the

    painful cost reduction targets of 2001/2002 may be behind us, every CIO

    that we speak to talks about continued downward pressure on core IT

    spend. Many are now reporting that there is new money flowing into IT

    but this new investment is, more often than not, tied to very specific

    business programmes and goals.

    With cost still taking a high priority, the question then becomes, how do I

    lower costs to free-up resources to support innovation? Essentially, the

    task is to fund the innovation budget by saving costs elsewhere.

    The key to this lies in understanding your current cost base, and the

    contribution that your key expenses make to the business.

    CIOs have to adjust their spending patterns

    We have developed a simple approach to investment prioritisation that we

    regularly use with clients.

    The basic premise of our approach can be summarised as follows:

    the goal should be to target expenditure and investment at activities

    that differentiate the business and to lower the cost of those activities

    that while they may be essential dont deliver competitiveadvantage.

    We dont pretend that this is rocket science or that its a particularly new

    idea, but we do use it as a framework when looking at how our clients

    need to develop and validate strategy.

    We classify the activities (and the applications, processes and systems

    that support each class of activity) that a business undertakes according to

    three broad types:

    utility activities necessary for the business to function, but that do

    not differentiate the business from its competitors

    process/assembly activities where the offer or product that thebusiness sells is created

    delivery the point at which the offer or product is

    presented/exposed to clients and partners.

    Each class of activity has a different set of priorities:

    utility lower cost, simplify and stabilise

    assembly manage cost, integrate and modernise

    delivery invest, integrate and enhance.

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    When we map existing expenditure against these categories, we frequentlyfind that the investment and spending patterns that are currently in play

    are the polar opposite of these goals, as shown in Figure 2.

    Figure 2 IT spending is biased tow ards non-differentiating functions

    Utility

    Assembly

    Delivery

    Differentiation

    Utility

    Assembly

    Delivery

    Spend

    Source: Ovum

    Although the balance varies according to the individual client and the

    sector that the client operates in, around 60% of IT budget is spent on

    delivering and maintaining utility activities, with the assembly and delivery

    categories left to fight over the remaining 40%. Once we look at spendingpatterns, we notice that the greatest proportion of IT spend is frequently

    directed at those activities that differentiate the company the least. Part of

    the process of legacy renewal and modernisation is the modification of this

    balance so that, ideally, the bulk of IT spend is directed at differentiating

    activities.

    What we want to do is find a way of lowering the costs associated with

    those utility activities in order to release resources so that they can be

    invested in activities and processes that do differentiate the company from

    its competition.

    What do CIOs think about the mainframe?

    Many of our CIO clients make the same criticisms of the mainframe today.

    They say:

    it is expensive

    it is inflexible

    it is hard to integrate with the rest of the IT system.

    Of course, many of them have good things to say about the mainframe as

    well the mainframe is still regarded as the most reliable and secure

    computing platform there is. However, increasingly, the cost and lack of

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    flexibility outweigh the demonstrable reliability, availability, scalability andsecurity attributed that the mainframe boasts.

    Interestingly, very few of our CIO clients believe that the mainframe is

    going to die or disappear at any time in the foreseeable future, but the

    key challenges remain.

    How do you lower the cost of running legacy applications?

    How do you make it easier and less expensive to modify and enhance

    legacy applications?

    How do you make it easier and less expensive to integrate legacy

    applications with the rest of the IT system?

    There isnt a simple solution to these challenges nor is it likely to be the

    same for any two clients. Legacy renewal and modernisation combines a

    set of techniques and approaches, which if combined and applied

    properly will deliver lower cost, greater flexibility and increased

    integration.

    Migration forms part of an overall approach to legacyrenewal

    Migration away from the mainframe addresses the issue of hardware cost.

    However, bear in mind that hardware costs represent a relatively small

    proportion of the cost of owning software. Even if you do migrate anapplication away from the mainframe you still need to maintain it and

    integrate it.

    Mainframe migration is not an end in itself, it is one approach to the larger

    challenge of legacy renewal. We define legacy systems thus:

    legacy systems are those that are designed and built in such a way

    that they significantly resist any modifications and evolutions which are

    required to support business change and/or those systems that rely on

    technology that is no longer cost effective.

    The goal of legacy renewal is to change legacy applications so that they

    become:

    easier to integrate

    easier to change

    less expensive to run.

    Migration is firmly focused on the last of these (cost), although it is true

    that in some cases a migration will make integration and enhancement

    easier as well.

    We list four broad categories of legacy modernisation:

    access/extension

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    integration

    re-engineering

    platform migration.

    In Figure 3, we give an overview of each approach, and its benefits.

    It is important to note that, in practice, any legacy renewal or

    modernisation initiative is likely to combine two or more of these

    approaches.

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    Figure 3 Legacy renewal technology categories in overview

    Access/

    Extension

    Integration Re-

    engineering

    Platform

    Migration

    Description Middleware

    servers used for

    creating newuser interfaces

    for applications

    on client-serveror web

    platforms.

    Includes

    terminalemulation

    Sophisticated

    middleware that

    enables peer-to-peer

    relationships

    between legacysystems and

    other platforms.

    System

    metadata isexposed to

    programmersthrough

    advanced tools

    Analysis/

    development

    tools andassociated

    middleware,

    which helpusers re-factor,

    re-code and re-

    host elements

    of legacyapplications

    Tools and

    middleware that

    support themigration of

    legacy code

    from themainframe to

    another

    platform

    withoutrequiring the

    Cobol code tobe significantly

    rewritten

    Maturity Mature Established Mature butevolving

    Mature butevolving

    Benefits A quick way to

    extend accessto new

    platforms and

    users

    Sophisticated

    offeringscapable of

    enabling

    evolution oflegacy systems

    in line withmodernarchitectural

    approaches &

    initiatives

    The only way to

    deal with somelegacy systems,

    particularly

    where lack ofskills is the

    main issue orwhere vendorsare burning

    platforms

    Often delivers

    rapid costsavings as a

    result of the

    transition to alower-cost

    hardwareplatform

    Can make it

    easier to extend

    and integrateapplications

    once moved

    Drawbacks Often based onproprietary,

    inflexible

    technology.Integration is

    simplistic andfocused on thelegacy system

    acting as a

    server

    Analysis anddesign, and a

    long-term

    evolution planare important

    but not alwayseasy to justify.Skills may be

    an issue

    Can becomplex,

    expensive and

    risky. Systemsthat are still

    evolvingpresentparticular

    problems

    Cost can varyconsiderably

    depending on

    the originalapplication.

    Can be difficult

    to migratepartial

    workloads

    because ofinter-application

    dependencies

    Source: Ovum

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    The mainframe population 20052010Over the next five years the number of individual mainframes will decline

    by around one third. However, the total number of deployed mainframe

    MIPS will rise by at least 10% annually over the same period.

    The decline in the number of mainframes will be driven by a number of

    factors:

    mainframe consolidation smaller mainframes being consolidated onto

    a smaller number of large machines

    application replacement mainframes being switched off as

    applications are replaced with non-mainframe alternatives drag and drop migrations where existing mainframe applications are

    moved, intact, to a non-mainframe platform.

    The vast majority of this decline will come from small mainframes (sub-

    100 MIPS machines). Indeed, we expect the number of larger mainframes

    (those supporting workloads of 1,000 MIPS and over) to grow.

    The mainframe today

    Arguably, the mainframe is in better shape today than it has been for

    several years. IBMs recently launched z9 mainframe delivers more or less

    double the performance of its predecessor for broadly the same price. IBMis pushing the use of the mainframe for non-traditional workloads (notably

    Linux and Java) and is winning converts.

    Weve divided mainframes into different classes in terms of their size (as

    measured in MIPS):

    0100 MIPS tiny

    101500 MIPS small

    5011,000 MIPS medium

    1,0014,000 MIPS larger

    4,001+ MIPS super-sized.

    We estimate that the distribution of deployed mainframes in 2005,

    according to these classes, is as follows:

    more than 4,000 MIPS 3%

    1,0014,000 MIPS 8%

    5011,000 MIPS 26%

    101 500 MIPS 30%

    less than 100 MIPS 34%.

    In other words, we believe that the vast majority of deployed mainframes

    belong in the sub-1,000 MIPS class.

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    The small mainframe is an endangered species

    We believe that the small mainframe (sub-500 MIPS) is an endangered

    species. We expect the number of mainframes in the tiny and small

    categories to decline significantly over the next five years.

    The number of normal-sized mainframes is also set to decline at an albeit

    smaller rate.

    By contrast, we believe that the number of larger mainframes (in the large

    and super-sized classes) will grow slowly over the same period. By 2010,

    we believe the distribution of mainframes according to our classification

    will be:

    more than 4,000 MIPS 5%

    1,0014,000 MIPS 13%

    5011,000 MIPS 31%

    101500 MIPS 28%

    less than 100 MIPS 23%.

    Forecast mainframe population

    Our estimates for the number of mainframes in production over the period

    20052010 are shown in Figure 4.

    Figure 4 Mainframe population 20052010

    2005 2006 2007 2008 2009 2010

    More than 4,000

    MIPS 498 503 510 521 534 544

    1,0014,000 MIPS 1,185 1,220 1,257 1,294 1,327 1,353

    5011,000 MIPS 4,025 3,905 3,768 3,617 3,436 3,265

    101500 MIPS 4,633 4,309 3,964 3,607 3,247 2,922

    Less than 100MIPS 5,319 4,787 4,189 3,561 2,937 2,350

    Total 15,660 14,724 13,688 12,600 11,481 10,434

    Source: Ovum

    Mainframe migration

    The mainframe migration market will grow gradually over the forecast

    period, peaking in 2009 before beginning to fall off.

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    Although the mainframe migration market will never represent amultibillion-dollar revenue opportunity, it should be viewed as a subset of

    the much larger legacy renewal/modernisation market.

    Figure 5 gives a breakdown of mainframe migrations by type.

    Figure 5 Breakdown of migrations by type

    Number of off mainframe migrations by platform

    2005 2006 2007 2008 2009 2010

    >1000 3 5 8 10 16 20

    501 - 1000 mips 16 24 27 30 36 34

    101 - 500 mips 104 146 155 161 180 162

    < 100 mips 173 239 269 283 312 294Total 295 414 460 483 544 510

    2005 2006 2007 2008 2009 2010

    > 1000 2 3 4 4 5 5

    501 - 1000 mips 4 6 7 8 9 9

    101 - 500 mips 89 97 86 89 90 81

    < 100 mips 216 239 269 283 280 264

    Total 310 346 366 383 385 359

    2005 2006 2007 2008 2009 2010

    >1000 5 6 7 9 11 15501 - 1000 mips 62 91 102 113 136 129

    101 - 500 mips 104 81 103 107 90 81

    < 100 mips 43 53 60 63 31 29

    Total 213 231 273 292 268 254

    Number of replacements/rewrites

    Number of "upward" migrations

    Source: Ovum

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