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

2. 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

3. 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?

4. 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

5. 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

6. 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 months

7. 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 over 1,700 participants from companies that own mainframes

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

9. 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

10. Managing IT and Your Business – Optimizing Mainframe Cost and Performance10

11. 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

12. 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%

13. 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

14. 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

15. 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

16. 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 Mips is 426 MSU’s, at a rate of $493 per MSU
On a z10EC Mips is 377 MSU’s at a rate of $557 per MSU
On a z 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.

17. 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

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

19. 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.

20. 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

21. 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.

22. 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.

23. 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 rows DB DFORDBMT Share Level Change - Full Copy

24. Use Intelligent Tools – DB2 V9 Copy

25. 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 rows from table DB DFORDBMT Log Records Backed Out

26. Use Intelligent Tools – DB2 V9 Recovery

27. 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

28. 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.

29. Typical Batch Flow Job1 Without Batch Optimizer Advanced Job2 Without30 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

30. Adding Technology – MainView Batch Optimizer30 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)

31. 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

32. Questions? 32