it operations with the mainframe: how the state of oregon has created customer value and economies...

IT Operations With the Mainframe: How the State of Oregon has Created Customer Value and Economies of Scale

Matthew Massey

Mainframe

State of Oregon

Enterprise Technology Services

MFT10S #CAWorld

Scott Fagen

CA Technologies

Chief Architect - Mainframe

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Abstract

How can you drive “best in class” IT operations while doing more with less? This session explores how IT infrastructure professionals can learn from the State of Oregon to understand best practices that improve collaboration, keep costs down and speed time to market.

Matthew MasseyState of Oregon

Enterprise Technology Services

Service Delivery Mainframe Manager

Scott FagenCA Technologies

Chief Architect -Mainframe


The Challenge: Get to an Economy of Scale in Mainframe

“…Economies of Scale are the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale, as fixed costs are spread out over more units of output.”

https://en.wikipedia.org/wiki/Economies_of_scale

INCREASE SERVICE VOLUMES

REDUCE TIME TO MARKET AND COST

State of Oregon Enterprise Technology Services (ETS)

Responsible for management of over 2300 UNIX, iSeries, Windows, Linux servers, and a 2700 MIPS mainframe

ETS responsible for software that runs agency applications on each of these computing platforms

Over 3600 networking devices and firewalls

Devices located in ETS facility and over 600 statewide agency locations

A mainframe warm Disaster Recovery (DR) site located in Montana

All Backups are replicated off site in Montana Source: www.oregon.gov


Reduce costsStabilize and reduce pricing of IT services

Approach to Economy vs. Value

Improve collaborationSimplify operations and management


The Results

Customers buy 15% more and it costs them 20% less

Source: Analysis of August 2013 - August 2015 Actual ETS Billing comparison and 2013-15 ETS Final Rate ScheduleE.pdf, 2015-17 ETS Rate Schedule.pdf -http://www.oregon.gov/DAS/ETS/Pages/rates.aspx


Decreasing CostsTo State’s Customers State Agencies

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

1 2

Mainframe Processing Rates

Series1

Series2

Series3

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

1 2

Data Storage Rates

Series1

Series2

2013-15 ETS Final Rate ScheduleE.pdf, 2015-17 ETS Rate Schedule.pdf - http://www.oregon.gov/DAS/ETS/Pages/rates.aspx

http://www.oregon.gov/DAS/ETS/Pages/rates.aspx


Increasing VolumesAugust 2013 - August 2015 Actual ETS Billing comparison.

August 2013 - August 2015 Actual ETS Billing comparison.


Recipe for Success – Giving Customers More for Less

Reducing Software Cost

Reduction in Software Cost by $2.1 million

per Year

Standardize/Simplify products/services delivered

Improved financial transparency

Direct association of costs to consumption

Improved partnerships with vendors

Customer Paying Less

Customers on average spend 20 % less on

services Reduction in hardware

cost

Reduction in software costs

Standardize

Building relationships with vendors

Keep costs consistent

Reducing Hardware Cost

15% Reduction in Hardware Cost

Standardize/Simplify hardware purchases –just in time purchasing

Improved financial transparency

Direct association of costs to consumption –right size

Improve/mature partnership with vendor

Selling More Services

Customers on average are purchasing 15% more units per year

Empower

Listen to their needs

Expanded training to customers

Combined training with vision

Develop customer forums

Source: Analysis of August 2013 - August 2015 Actual ETS Billing comparison and 2013-15 ETS Final Rate ScheduleE.pdf, 2015-17 ETS Rate Schedule.pdf -http://www.oregon.gov/DAS/ETS/Pages/rates.aspx


Ingredient List

Reduce product line -retire similar products, less to support

Reduce support barriers, when working with a smaller vendor support group

Building partnerships with major software vendors, building team philosophy

Focus on training for all staff (my staff and agency staff). We have that ability when we reduce the product line

Build outreach groups for products

Monthly tech meetings

Give customers a voice in any changes

Standardize the environment, for better support, faster and at a reduced cost

Use project tools, standards and methods to complete changes and upgrades

Use contracted resources for large upgrades, one offs, or major efforts that need staff augmentation or expertise

Come up with creative ways to contract software and services to manage costs

Leasing allows us to keep current on the latest hardware versions

Leasing allows us to get better performance

Working with customers to manage capacity and performance, thus balancing what is purchased based on need

Installing tools to be automated. Allows us to maximize energy for advancements or other areas of improvement. Finding efficiencies.

Best Practices for Creating an Economy of Scale


Projects for Success

CA Workload Automation ESP

Reduced Costs by over $100,000 a year

Customer know how to used the tool

Formal Training

Increased purchasing

IBM Test and Debug Tools

Reduced Costs by over $100,000 a year

Customer know how to used the tool

Formal Training

Increased usage

SDC Cross Platform Scheduler Tool Project Timeline

IBM Test & Debug tools Project Timeline


Q & A


For More Information

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