Information Technology plays an important role in Information Technology plays an important role in many organizationsmany organizations

IT related operational costs are high and no wonder IT related operational costs are high and no wonder that businesses ought to strive for their reductionthat businesses ought to strive for their reduction

For most banks, it was estimated that total For most banks, it was estimated that total operational IT costs oscillate at around 15% to 20% operational IT costs oscillate at around 15% to 20% of total operational costsof total operational costs

Businesses have taken a strong stance on operational Businesses have taken a strong stance on operational costs reduction and sought solutions to slash IT costs reduction and sought solutions to slash IT costscosts

For instance, Citigroup estimated that removal of For instance, Citigroup estimated that removal of redundant systems from their IT portfolio yields a redundant systems from their IT portfolio yields a savings potential of over 1 billion USDsavings potential of over 1 billion USD

So far, organizations have tried a number of So far, organizations have tried a number of approaches to cut IT costs which included head approaches to cut IT costs which included head count reduction, outsourcing, consolidating data count reduction, outsourcing, consolidating data centers or replacing old software and hardware with centers or replacing old software and hardware with its newer counterpartiesits newer counterparties

All these approaches, however, carry an element or All these approaches, however, carry an element or risk and might end-up costing a lot especially when risk and might end-up costing a lot especially when complex software environments are involvedcomplex software environments are involved

There exists one approach which enables IT costs There exists one approach which enables IT costs reduction at low-risk for both business and ITreduction at low-risk for both business and IT

By enabling control of MIPS consumption not only it By enabling control of MIPS consumption not only it is possible to achieve significant savings but also to is possible to achieve significant savings but also to improve performance of IT-systemsimprove performance of IT-systems

MIPS have envolved to become a measurement of MIPS have envolved to become a measurement of processing power and CPU consumptionprocessing power and CPU consumption

MIPS related costs are inevitable and high for those MIPS related costs are inevitable and high for those organizations which have grown on top of mainframesorganizations which have grown on top of mainframes

A former CIO of a corporation, once said: “MIPS and A former CIO of a corporation, once said: “MIPS and salaries are my highest unit cost per month”salaries are my highest unit cost per month”

The amount of MIPS used by the average IT The amount of MIPS used by the average IT organization is on the riseorganization is on the rise

IT analysts estimate that most large organizations IT analysts estimate that most large organizations utilizing mainframes should expect their systems’ utilizing mainframes should expect their systems’ MIPS consumption to increase by 15-20 per cent MIPS consumption to increase by 15-20 per cent annuallyannually

Each additional MIPS typically costs around GBP 2,500 Each additional MIPS typically costs around GBP 2,500 in hardware and software chargesin hardware and software charges

So if a company running a 10,000 MIPS system So if a company running a 10,000 MIPS system increases capacity by as little as ten per cent per increases capacity by as little as ten per cent per annum, the incremental cost will be in the region of annum, the incremental cost will be in the region of GBP 2.5 millionGBP 2.5 million

Despite the fact that the incurred MIPS related costs Despite the fact that the incurred MIPS related costs are substantial the majority of IT executives (60 %) are substantial the majority of IT executives (60 %) do not monitor MIPS usagedo not monitor MIPS usage

Therefore, reducing MIPS is indispensable and is one Therefore, reducing MIPS is indispensable and is one of the major priorities of mainframe users, due of the major priorities of mainframe users, due mainly to a weak economy and high software costs mainly to a weak economy and high software costs on the platformon the platform

Where does the accrual of MIPS happen?Where does the accrual of MIPS happen? MIPS consumption is directly driven by CPU usage,MIPS consumption is directly driven by CPU usage, and CPU usage depends on the applications’ codeand CPU usage depends on the applications’ code

Inefficient code of the applications is considered Inefficient code of the applications is considered to be one major driver for MIPS usageto be one major driver for MIPS usage

According to a financial services company According to a financial services company identified two lines of code that, once changed,identified two lines of code that, once changed, saved 160 MIPSsaved 160 MIPS

Given the market price of MIPS, the two lines of Given the market price of MIPS, the two lines of code contributed to substantial reduction of code contributed to substantial reduction of operational IT costsoperational IT costs

Why pay

more for

inneficient

code ?

The worldwide installed base of IBM mainframe exceededThe worldwide installed base of IBM mainframe exceeded14 Million MIPS by end of 2008 - up approximately 20 % 14 Million MIPS by end of 2008 - up approximately 20 %

fromfromyear-end 2007 and roughly double of what was five years year-end 2007 and roughly double of what was five years

ago.ago.

The need for controlling MIPS attributed costs is The need for controlling MIPS attributed costs is indispensableindispensable

given the high percentage they involve in the overall IT given the high percentage they involve in the overall IT costs.costs.

IdealMIPSusage

CodeCodeoptimizationoptimizationCOBOL · SQL COBOL · SQL

· JCL· JCLReduction Reduction

MIPSMIPS& I/O usage& I/O usage

BATCHBATCHwindow window reductionreduction

Implementing standards-oriented programming performance that allows:

Increasing performance that results in MIPS reductionIncreasing performance that results in MIPS reduction

More workload to be processed without adding additional More workload to be processed without adding additional resourcesresources

Allowing for growthAllowing for growth

Efficient COBOL Coding TechniquesEfficient COBOL Coding TechniquesSpecific rules for performance, typically oriented to the code level, may lead to Specific rules for performance, typically oriented to the code level, may lead to

significant improvement in performance, and should be a good starting point.significant improvement in performance, and should be a good starting point.More than 150 rules are available to achieve a better performance.More than 150 rules are available to achieve a better performance.

JCL standards and efficient useJCL standards and efficient useThe bad choices in JCL programming, may have a very negative effect on system The bad choices in JCL programming, may have a very negative effect on system

performance, specially in cases involving a very large amount of information.performance, specially in cases involving a very large amount of information.Increasing ‘parallelism’ and an intensive use of IBM utilities.Increasing ‘parallelism’ and an intensive use of IBM utilities.

SQL performance and tuningSQL performance and tuningThe vast majority of the top MIPS consuming operations in the production The vast majority of the top MIPS consuming operations in the production

environment involve the use of DB2. MIPS reduction at low-risk and also low-costenvironment involve the use of DB2. MIPS reduction at low-risk and also low-costby improving SQL code on the basis of mainframe usage.by improving SQL code on the basis of mainframe usage.

More than 200 rules and tips to improve DB2 performance.More than 200 rules and tips to improve DB2 performance.

SUCCESSFUL REAL CASESUCCESSFUL REAL CASE

ODATE OLD NEW REDUCTION

Day 1 3,28 1,26 - 61,59 %- 61,59 %Day 2 3,29 1,17 - 64,44 %- 64,44 %Day 3 3,46 1,28 - 63,01 %- 63,01 %Day 4 3,46 1,22 - 64,74 %- 64,74 %

SUCCESSFUL REAL CASESUCCESSFUL REAL CASE

ODATE OLD NEW REDUCTION

Day 1 73,91 32,32 - 56,28 %- 56,28 %Day 2 73,99 20,74 - 71,97 %- 71,97 %Day 3 91,82 32,90 - 64,17 %- 64,17 %Day 4 82,22 20,77 - 74,74 %- 74,74 %

ideas for today and tomorrow