ACTIVATE BUSINESS WITH THE POWER OF I.T. Martin Beasley 1

Who is BMC? Business runs on IT. IT runs on BMC Software. Vision Our goal is to become the industry’s de facto management platform by which sophisticated organizations manage their IT services and infrastructure Key Strengths and Competitive Advantages Committed to heterogeneity – hardware, operating system, and application independent Support for cloud computing, virtual, distributed, and mainframe environments Pioneered concept of BSM Superior technology and product innovation R&D 20%+ of revenue Focused M&A 94 software technology patents Founded in 1980, 8th largest independent software company with over $1.9 billion in total bookings and revenue (through March 31, 2010) Corporate headquarters in Houston, with major development centers in San Jose, Austin, Lexington, Tel Aviv and India Financially strong – solid balance sheet Large base of customers in nearly every industry vertical

Expectations have never been higher Optimize IT Costs How do you get the most out of every person, asset, or project, and make better resource allocation and sourcing decisions? Improve Quality of Service How do you meet the performance expectations of your internal and external customers? Manage Risk How do you define and control risk? Increase Business Impact How do you ensure IT investments and operational decisions are aligned with business priorities? Provide Transparency How do you track cost and activities in your organization and share that with stakeholders?

BMC Market Penetration 15,000 customers in 132 countries Fortune 100: 94% Fortune 500: 81% Forbes Global 100: 96% Forbes Global 500: 86% Industry penetration (Forbes Global 500): Top 20 Commercial banks Top 20 Utilities Top 20 Telecommunications companies Top 10 Insurance companies Top 10 Chemical companies Top 10 Food companies Top 10 Media companies Top 10 Technology hardware companies Top 10 Health care equipment & services companies Top 10 Aerospace and defense

Industry leaders activate their business with BMC Software Banks Financial Services Healthcare Communications & Media Retailers Transportation 15,000 customers in all major industries Top 25 financial companies use BMC:* Banking, financial services, insurance 12 of top 12 companies in:* Communications, manufacturing, retail, services, etc. 98% of Forbes Global 100 97% of Fortune 100 and 89% of Fortune 500 Many of the most successful global companies have already realized the benefits of implementing Business Service Management solutions from BMC Software Industry-leading companies with advanced systems like Toyota and Amazon are excellent examples of companies that have activated their businesses with the power of IT. Can see that all 10 of the 10 largest companies in 6 major industries all rely on BMC software. And BMC Software remains extremely well represented in the other major industries as well. Forbes Global 100 = was 96% now 98% (* 2 non-customers are PetroChina and GazProm) Fortune 100 = was 99% now 97% (* 3 non-customers are ADM, Amerisourcebergen and Plains All American Pipeline) Fortune 500 = was 90% now 88% (* still waiting on triple check with account managers) *based on Fortune 100

Service Delivery Challenges Continue Improve Availability On average, large companies lose 10-15% of their revenue due to downtime Exceed Service Level Commitments 85% of companies have difficulty meeting service commitments Assure Recoverability 34% of customers rate disaster recovery in their top 3 challenges Reduce Mainframe Costs Companies typically buy more capacity every 18-24 months

Mainframe Cost Reduction Imperative Results from BMC’s annual mainframe survey: 65% concerned about reducing IT costs in the next year - the number one issue 84% expect growing or steady MIPs usage BMC MSM Survey, March 2010. over 1,700 participants from companies that own mainframes

BSM simplifies and automates hybrid IT management Customers, Suppliers, Partners, and Employees Physical Virtual Private Cloud IaaS PaaS SaaS Internal External 8

BSM helps you address critical initiatives BSM INITIATIVES Cloud Computing Data Center Automation IT Cost Transparency IT Decision Support Automation IT Governance, Risk, and Compliance IT Service Management Mainframe Cost Optimization Proactive Operations 9

Managing IT and Your Business – Optimizing Mainframe Cost and Performance 10

Mainframe Cost Optimization TRANSACTION MANAGEMENT EVENT AND IMPACT MANAGEMENT CAPACITY DATA ADMINSTRATION RECOVERY MANAGEMENT DATA PERFORMANCE APPLICATION MODERNIZATION STORAGE OPTIMIZATION OUTPUT MANAGEMENT BATCH OPTIMIZATION MIDDLEWARE MANAGEMENT ENTERPRISE WORKLOAD AUTOMATION PERFORMANCE & AVAILABILITY MANAGEMENT APPLICATION PERFORMANCE MCO Get the best value for your money while making the best decisions for your business MIPS Cost Reduction Maximize computing resources at lowest cost Business Availability Avoid planned and unplanned outages Application Performance Optimization Manage and tune application environment 11

Cost Optimization -- Use Intelligent Tools Using the best tools Requirements Minimize use of MIPs Reduce peak period usage Automate processing dependencies How BMC Helps Constantly upgrading products to minimize MIPs usage Include intelligent processing to eliminate unnecessary work (job execution) Example: Large insurance company reduced MIPs usage with conditional reorg’s by 75% Using the best tools available to support the business and IT operations. Requirements Minimize use of MIPs Reduce peak period CP usage Use new system and subsystem routines and services Automate processing dependencies How BMC Helps Constantly upgrading products to minimize MIPs usage Exploit new services IBM introduces Include intelligent processing to eliminate unnecessary work (job execution) Example: Large insurance company reduced MIPs usage with conditional reorg’s by 75%

Cost Optimization -- Manage Mainframe Performance Manage performance Requirements Improve performance Automate monitoring and tuning Reduce risk of runaway processing Simplify and manage system proactively How BMC Helps Automates performance monitoring across the mainframe enterprise Handles static and dynamic tuning of applications Products designed to minimize MIPs usage Example: K&O reduced MIPs consumption of a DB2 application by 46% with SQL Performance Manage performance through automated monitoring and ongoing tuning of applications, eliminating unnecessary spikes in processing Requirements Improve performance Automate monitoring and tuning Reduce risk of runaway processing Simplify and manage system proactively How BMC Helps Automates performance monitoring across the mainframe enterprise Handles static and dynamic tuning of applications Products designed to minimize MIPs usage Example: K&O reduced MIPs consumption of a DB2 application by 46% with SQL Performance

Cost Optimization - Exploit Specialty Processors Reduce monthly variable workload charges and extend capacity through low-cost methods Requirements Maximize use of zIIPs for processing IBM authorized workloads Free up central processing resources to support increased business transactions How BMC Helps Automatically offloads DB2 performance and utility work to cheaper specialty processors Models capacity use of zIIPs for maximum cost reduction Maximize current IT investments by exploiting new technologies

Optimize Application Performance Monitor, tune and simplify management of applications and legacy environments Requirements Early detection and resolution of potential problems Efficient running applications—lowest MIPS consumption Simplify management of multi-tiered applications How BMC Helps Automated detection, notification and remediation of problems Offloads performance processing to low-cost specialty engines Expert advise based on environment and business operations

Why Reduce MIPS? Potential to reduce rolling 4 hour average MSU’s for VWLC customers Outsourced customers typically pay per MIP used. Delay expensive GP upgrades (PSLC & VWLC customers) Example: 3,000 Mip processor MLC costs for z/OS, DB2, CICS ≈ US$210,000 (if in the US)* Costs; On a z9EC 608 3073 Mips is 426 MSU’s, at a rate of $493 per MSU On a z10EC 508 3097 Mips is 377 MSU’s at a rate of $557 per MSU On a z196 506 3117 Mips is 384 MSU’s at a rate of $546 per MSU * - denotes not all MLC product listed. Example only. Does not cover fully burdened cost of MIP.

Example – Bank : CPU Usage - Systems Monitoring We did a performance study of a Large Bank in Thailand. The are performing a core banking re-write with IBM. The were running the Tivoli Omegamon products on the same systems as BMC MainView products. We can see that same environment IBM products used 80 MIPs during peak time. 80 MIPs consumed – peak MIPs

Example – Bank: CPU Usage – BMC Systems Monitoring MainView uses 24 MIPs peak time 24 MIPs consumed – peak MIPs

Example – Bank: CPU Usage The same BMC study –can also see items that are causing problems. Such as someone running wrong workload at the wrong time, causing peak MIPS usage to go up, or take processing away from your online systems. Or effect on adding a speciality processor. Offload General Processing MIPs to Speciality Processors – you do not get licence fee charges on Speciality processors.

Example – Financial Institution, CPU Usage Another study showed non essential workload running during peak period. This pushes of your 4 hour rolling average that will cause additional charges from IBM for VWLC contracts. Non essential workload run during peak time

Example – Govt: DB2 Utilities DB2 Utilities use CPU during peak times R4HA Minimal zIIP utilisation A Government department in Australia, was running IBM’s inefficient DB2 Utilities during peak time. If you need to run utilities at this time, use you’re the most efficient that can even offload processing to zIIPS.

Example – Banking/Insurance: CPU peak usage IBM DB2 Utilities & SAS driving peak R4HA Another Study at another Bank that highlighted the MIPs cost of running SAS and Utilities during peak time.

Use Intelligent Tools – DB2 V10 Copy IBM Needed 25% more Elapsed Time 211% more CPU 32% of CPU was System overhead BMC had 29% zIIP enabled CPU Copy Plus For DB2 to DASD 37 Parts - by Part 45491553 rows DB DFORDBMT Share Level Change - Full Copy

Use Intelligent Tools – DB2 V9 Copy

Use Intelligent Tools – DB2 V10 Recovery IBM Needed: 65 times more elapsed time 300 times the CPU Recover Plus For DB2 Recover to Quiesce 37 Parts - by part 45491553 rows from table DB DFORDBMT 2325920 Log Records Backed Out

Use Intelligent Tools – DB2 V9 Recovery

Increase Business Availability Assure data and application availability, no matter how demanding. Requirements Reduce planned downtime Reduce time to restore for outages Fast, reliable recovery of data—regardless of reason Faster completion of maintenance and administration tasks How BMC Helps Faster diagnosis and triage – reduced MTTR Automated solutions Online database maintenance for high and near-continuous availability Preparation Time research and construction Outage Window Upgrading Application Without BMC Prep Time research and construction outage With

Value: Finish batch in the window, not in the Prime Shift Rolling Average MSU by Logical System 50 100 150 200 250 300 12 AM 2 4 6 8 10 12 PM MSU/hr MSUused MSU4hAvg 1 3 2 Three ways to flatten the curve. Get batch, where possible, out of the Prime Shift. More efficient use of resources by Prime Shift users Delaying workloads, where possible, to the second shift One of the reasons for increased MIP usage during the Prime Shift is the processing centers inability to complete the nightly batch, leaving a significant amount to process during the day. This situation can add to a higher MSU 4 hour average for the month and can significantly impact your software budget.

Typical Batch Flow Job1 Without Batch Optimizer Advanced Job2 Without 30 60 90 120 150 180 TIME (in minutes) 210 240 270 300 330 360 390 Step 2 Step 1 Step 5 Step 3 Step 4 Step 6 Job1 Without Batch Optimizer Advanced Step 2 Step 1 Step 5 Step 3 Step 4 Job2 Without Batch Optimizer Advanced

Adding Technology – MainView Batch Optimizer 30 60 90 120 150 180 210 240 270 300 330 360 390 Step 2 Step 1 Step 5 Step 3 Step 4 Step 6 Job1 With Batch Optimizer Advanced I/O Savings via DO Total Elapsed Time Saved Step 2 Step 1 Step 5 Step 3 Step 4 I/O Savings via DO Job2 With Batch Optimizer Advanced Time (in minutes)

Next Steps Work with us to identify where we can help We can analyze your systems data to look for improvements Understand what drives your costs, to understand how you can save

Questions? 32