Abstract
The competitive market opportunity and risk to any enterprise organization
comes from outside the organization. There are market forces represented by
customers, technologies, outsourcers external to the organization that need to
be managed. IT iterations are used to be responsive to these market forces,
creating value based on automation of business process that permits offering
quality. CIO' s understand how to create the enterprise market positioning via
automated process responsive to direction from the CEO and the Board of
Directors.
The CFO ability to manage IT cost forces inside the organization has been
limited. For good reason does the CFO eschew controlling or implementing micro
management of IT spending. The decisions are complex and the risk of failure
high because mistakes in judgment can destroy the enterprise. The CIO comes
with special experience and training that is very specialized.
IT is a world of its own. But, changes in the market warrant CFOs taking a new
look at IT decision making process because the cost structures have become so
dramatically differentiated. Now it is possible for the CFO to take a high
level look at the cost of a distributed server data centers vs. the cost of
System z implementations, because the costs are different by a factor of 10.
IBM has just eliminated its distributed data centers and moved to a mainframe
centric architecture for IT. This represents a dramatic change in the industry
driven by the IBM CFO predictions of the impact of rising energy costs on
distributed data center operations.
Server vendors adapt business strategy to focus on real time exchange of
information on enterprise networks and the Internet. Network computer systems
hardware leverages integration and messaging software. Network storage systems
are adapting to the Internet. SOA provides significant advantage to the
mainframe because operating costs are lower and actual costs can be managed
with creative financing packages.
CFOs have positioned to help implement business strategy relative to real time
exchange of information. Enterprise networks are built on data centers that
leverage the Internet. A focus on network computer systems hardware has hidden
the need to leverage shared workload and integration of applications. System z
acts as a consolidated server technology enabling implementation of network
solutions in a shared workload environment that attacks cost and complexity,
accelerates service delivery, and provides mobility with security. Shared
workload analysis looks at core elements of server business strategy.
Decisions based on shared workload to include provision for end�]to�]end
architecture that extends technology across scalable processor architectures.
The cost of electricity and infrastructure are central aspects of CFO
analysis. With the costs of electricity skyrocketing, and the availability of
electricity questionable, CFOs worldwide are looking at alternatives to
sprawling, expensive data centers full of distributed servers.
IBM financing can lower the out of pocket cost of technology acquisition.
Financing immediately frees cash that would be tied up in computers to invest
in the core business. Investment in the core business matters. IBM financing
group will take a trade in on almost anything.
IBM financing packages are each unique. They take into account the trade in,
the hardware, the software and services that need to be financed in the
context of what interest rate is available for this financing. Sometimes,
using a refresh approach to upgrading a mainframe means that the payments for
the new unit go down This is due to the fact that in refreshing and old box to
have the capacity of the new System z10, there is a higher trade in value at
the end of the lease cycle and the cost is less, because the value is more.
Research Methodology
WinterGreen Research authors use a structured, consistent, and detailed
research approach. The methodology supports an analytical approach to market
research. In depth comparisons are made of many aspects of the market. Data
relating to Industry segments is developed to permit presentation of forecasts
and market share positioned to have substantive value.
Research has been automated using automation of interactive surveys that
implement delta trend analysis and instant messaging in combination with
e�]mail. Automation is made possible because of a proprietary engine that
implements multi�]layered cell based analysis. Modular systems support dynamic
computing that use a graphical configuration engine to reach more people in a
research modality.
Full spectrum research and information services, including market reports,
customized research, and customer interviewing are available, reports and
research are positioned to provide strategic value to industry participants,
strategic planners, and product managers.
New systems combine sales tools and independent industry analysis, seeking to
leverage the expertise of the sales force and combine it with the skepticism
of the analysts to provide accurate return on investment analysis.
Table of Contents
CFO IT STUDY EXECUTIVE SUMMARY
- CFO IT Study - Executive Summary
- CFO IT Cost Benefit Analysis
- Mainframe Runs at 85% Utilization Typically
- Distributed Processors Operating at 15% Utilization Typically
- Quantity of Information Doubling every 7 Months
- IT Data Centers Aging and Needing Replacement
- SOA Development Tools Support Line of Business Developers
- WinterGreen Research Provides ROI Based Chargeback Analysis Studies
1. IT Cost Reduction
- Enterprise IT Consolidation
- Distributed Data Center Replacement
- Single Platform Solution
- Correlation between Automated Process and Increase in Profitability
- Integrated Enterprise Value Analysis
2. IT Health Tracking
- Measurement of Value and Risk for an Enterprise Organization
- Risk Analysis Tracking SOA as a Mainframe Technology
- IT Health Track Tool Risk Detection
- Integrated Enterprise Value Tracking
3. Mainframe vs. Distributed Return on Investment (ROI) Executive Summary
- Mainframe is a Green Machine - Overview
- Advantage Mainframe
- Mainframe as a Green Machine
4. Real Time Internet Processing
5. Cost of Electricity Escalating
6. Security Cost Analysis - Mainframe vs. Distributed System
7. Number of Servers - Web Application
- Hardware and Software Cost Differential Mainframe vs. Distributed
8. Complexity of Computing Environment Function of Increasing Workload
- SOA Market Share
- SOA Market Forecasts
- IBM System z Advantages
- Distributed Systems Churning the Databases
- Network System Cost Comparisons on Mainframe vs. Distributed Servers
9. SLA Service Level Availability
- System Reliability Return on Investment
- ROI Engine Presentation Page: Summary Page
- ROI Engine Presentation Page: Drill down Page
10. IBM Financing
- Using IBM Financing, Sometimes After An Upgrade The Total Charges Are Less
Conclusion
