COBOL Product Update The Agent of Change

Ed Airey & Scot Nielsen

Micro Focus

Session Agenda

Industry Pressures

The IT Scorecard

Barriers to Innovation

Introducing Visual COBOL

The Road Ahead

Current Perspectives

FLAT US ECONOMIC GROWTH: 0.1% GDP

Current Perspectives

Flat US Economic

Growth: +0.1% GDP

Record US Debt: 16.6T

Job-less Recovery:

Unemployment at 7.9%

Downgraded S&P

Credit Rating: AA+ Sequestration:

85B in Budget Cuts

Current Perspectives

Flat US Economic

Growth: +0.1% GDP

Record US Debt: 16.6T

Job-less Recovery:

Unemployment at 7.9%

Downgraded S&P

Credit Rating: AA+ Sequestration:

85B in Budget Cuts

The Dow Jones reaches record 14,221 level on March 5th

Industry Pressures

FINED $1.5B FOR LIBOR RIGGING

NEWS

Industry Pressures

NEWS

IS TO CUT 2,500 JOBS FROM ITS FINANCIAL AND

RISK DIVISION

Industry Pressures

NEWS

IS TO CUT 4,000 JOBS IN 2013, SAVING $1B IN

COSTS

Industry Pressures

NEWS

ANNOUNCES IT WILL CUT 30% OF IT’S IT MANAGEMENT WITHIN IT’S DEFENCE SPACE & SECURITY UNIT

Industry Pressures

FINED $1.5B FOR

LIBOR RIGGING

NEWS

NEWS

IS TO CUT 2,500

JOBS FROM ITS

FINANCIAL AND

RISK DIVISION

NEWS

IS TO CUT 4,000 JOBS IN

2013, SAVING $1B IN

COSTS

NEWS

ANNOUNCES IT WILL CUT

30% OF IT’S IT

MANAGEMENT WITHIN

IT’S DEFENCE SPACE

NEWS

EVEN HOSTESS FILES FOR BANKRUPTCY. ASSET ACQUIRED BY PRIVATE INVESTORS

Government Legislative Action

• Fiscal Cliff Negotiations

• Debt Ceiling Debate

• Higher Tax Rates

• New US Healthcare Law

• Sequestration

• State & Local Gov. budget cuts

• IRS

The IT Scorecard

Scorecard Results

2013 IT budgets to increase spending by

1.4%

Scorecard Results

2013 IT spending facing challenges Expected 2.09T global spend. US to show 7.5% increase

Scorecard Results

Measured as a percentage of revenues, financial services firms spend more on IT than any other industry. Ranging from $270B to 460B

Scorecard Results

Financial services IT budgets equal 7.3% of their revenues, well above the industry average of 3.7%

Scorecard Results

Financial services IT budgets equal 7.3% of their revenues, well above the industry average of 3.7%

Measured as a percentage of revenues, financial services firms spend more on IT than any other industry. Ranging from $270B to 460B

2013 IT spending facing challenges Expected 2.09T global spend. US to show 7.5% increase

2013 IT budgets to increase spending by 1.4% to

$1.1 trillion

‘Keeping the Lights On’

70-80% of IT budget

IT Perceptions

57%

Significant differences in perception between IT and non-IT employees:

of IT leaders agreed that their organization was "distributed, agile, and flexible”

of business people outside IT agree

27%

Barriers to Innovation

Barriers to Innovation: IT Debt - -the backlog

46% did not know the value of their IT debt

44% have no structured process for measuring and managing IT Debt

45% without a process are not planning to implement one

57% say they have an unclear picture of their application portfolio

Source:

$1 trillion Global IT debt will rise to

by 2015

Barriers to Innovation: The Skills Challenge

Data gathered from a global survey of Academic leaders

1 in 4 Universities surveyed teach COBOL today

65% COBOL is uncool

65% state that COBOL is considered (by students) ‘uncool’ or is unheard of completely

5% of new graduates have COBOL language skills

10,000 US workers reaching retirement age (65) every day - Occurring over next 19 years. Representing 26% of US workforce

Barriers to Innovation: The Skills Challenge

Data gathered from a global survey of Academic leaders

5% of new graduates have COBOL language skills

10,000 US workers reaching retirement age (65) every day - Occurring over next 19 years. Representing 26% of US workforce

1 in 4 Universities surveyed teach COBOL today

65% COBOL is uncool

65% state that COBOL is considered (by students) ‘uncool’ or is unheard of completely

Amid this, 70% of all business Data Processing is still driven by COBOL

70

Barriers to Innovation: Disruptive Forces

DIS

RU

PT

IVE

TE

CH

NO

LO

GIE

S

Cloud

computing

Mobile

Social Media &

Collaboration

Analytics

& Big Data

Innovations to

Change the Face

of Business Digital Disruption –

CIOs, are you

disruptive enough?

Gartner and Forrester agree

New Generation technology is taking up a lot of mindshare

new budget

new skills

new technology

new processes

Requiring

Barriers to Innovation: Disruptive Forces

DIS

RU

PT

IVE

TE

CH

NO

LO

GIE

S

Cloud

computing

Mobile

Social Media &

Collaboration

Analytics

& Big Data

Innovations to

Change the Face

of Business Digital Disruption –

CIOs, are you

disruptive enough?

Gartner and Forrester agree

New Generation technology is taking up a lot of mindshare

new budget

new skills

new technology

new processes

Requiring

It’s Time to

Think Differently.

To Think Smarter.

The Road Ahead

Smart Thinking

REDUCTION OF

BACKLOG / IT DEBT

DIS

RU

PT

IVE

TE

CH

NO

LO

GIE

S

New Architecture

Mobile

Cloud

Development

Efficiency

Skills and

Organization

IT Innovation – Smart Thinking

Modernization

: Clearing a

Pathway to

Success

53% Success with

Application Modernization

30% Success with

replacing application with a COTS package

4% Success

when re-writing application from scratch

42% Chance of

project failure or excessive delays

Package:

A Customer Perspective: Application Modernization

Package

Rewrite

Modernize

COST

RISK

TIME TO

VALUE

COMPETITIVE

ADVANTAGE

(0 – 10)

Lowest cost

High risk

Medium risk

Low risk

2-3 years

3-5 years

4 months

4x cost

10x cost

1x cost

0/10 competitive advantage

6/10 competitive advantage

10/10 competitive

advantage

Lowest risk

Shortest time

Greatest

advantage

Package

Rewrite

Modernize

Package

Rewrite

Modernize

Package

Rewrite

Modernize

Introducing Visual COBOL

Forces of Change

REDUCTION OF BACKLOG / IT DEBT

DISRUPTIVE TECHNOLOGIES

Embracing Innovation

REDUCTION OF

BACKLOG / IT DEBT

DIS

RU

PT

IVE

TE

CH

NO

LO

GIE

S

New Architecture

Mobile

Cloud

Development

Efficiency

Skills and

Organization

Embracing Innovation

Cloud

Mobile

New Architecture

Skills and

Organization

Development

Efficiency

Efficiency Highly effective development results with Visual COBOL

• Faster code compile, edit and debug process

• 30% improvement in developer productivity

• Greater development team collaboration

• Advanced COBOL development tooling – background

parsing, autocomplete, smart editing, etc.

• Unified development environment supporting efficient

cross-team development

• Developer collaboration across all languages

Benefits Capability

Industry standard development tools

34

Skills & the Organization Bridge the Skills Gap with Visual COBOL

• Address the skills challenge issue

• Attract a new talent pool

• Protect the value & importance of your core

apps

• Works with industry standard IDEs - Visual

Studio and Eclipse

• Consistent development experience for C/C++,

.NET, Java and COBOL developers

• Smart editing tools make cutting “new” COBOL

code easier to learn than ever

Benefits

Capability

Cloud Computing Scalable, cost-effective application deployment to the Cloud

• Up to 70% reduction in IT costs

• Increased application reliability,

availability and serviceability

• Rapid service delivery

Benefits

Capability

• Deploy existing on-premise COBOL

applications into the Cloud

• Access data from SQL Azure, Amazon

S3 and other Cloud data storage

• Supports Amazon and Azure Cloud

models

Mobile Computing Enhance the User Experience with Visual COBOL

• Build vibrant user interfaces. Deliver a

better user experience

• Respond to consumer service demands

• Get ahead of the competition.

• Access COBOL applications and data from

IPhone, Android, Windows 8, and

Blackberry devices

• Create Web 2.0 & HTML 5 applications

• Build SOA-enabled systems

Benefits

Capability

Architecture Portable, agile, application deployment with Visual COBOL

• Reduce your Time to Delivery by up to

50%

• Flexible application deployment & greater

choice

• Build once. Deploy anywhere!

• Enterprise-wide portability of COBOL

business apps

• Application deployment across 50+

platforms including Windows, Unix, Linux,

z/Linux, .NET, and JVM.

• Integration with modern technologies such

as XML, SOA, Web Services, and

Relational Databases

Benefits

Capability

Choose your development

platform

Build your application as you do today

Embrace the IDE

Modernize your apps

Cloud and Mobile

Moving to Visual COBOL

Delivering More Value

COBOL Product Roadmap

Scot Nielsen

Micro Focus

R3/4

JVM COBOL Preview

JVM COBOL Launch

2.0

JDBC support

Pure JVM

2.1

Web Container support under Tomcat

Web services, JSP and Servlet deployment

2.2

Web container support for

WebLogic,

Websphere,

JBOSS

2.3

EJB container

COBOL JVM Roadmap

From desktop to J2EE EJB deployment…

…re-use core COBOL apps directly within the Java Virtual Machine

Performance

The #1 Development toolset for COBOL

Summary Point

• Your Future requires Innovative Thinking

• For Enterprise Application Development, the solution is:

www.visualcobol.com/

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