2. Mainframe Migration to Windows Ian Archbell VP Product Management Micro Focus “Lift and Shift” mainframe applications to Windows

3. A world leader in unlocking the value of legacy A world leader in unlocking the value of legacy  Founded in 1976 and independent in August 2001  Global company with 500+ employees world-wide  Principal offices in the US, UK & Japan Blue chip customer base Blue chip customer base  150K customers  80% of the Global 2000  Global ISV partners (PeopleSoft, Lawson Assoc, FNS,..) Strong partner community Strong partner community  Microsoft (MMA, VSIP, Gold certified)  Tier 1 SI’s (Accenture, CSC, EDS, HP Services,…) Unlocking the value of legacy Micro Focus – at a glance

4. Mainframe migration is very specialized Mainframe migration is very specialized  No significant information sharing  No significant marketing around migration capabilities There is no established ‘mainframe migration’ industry There is no established ‘mainframe migration’ industry  No best practices  No widely recognized ISV’s or System Integrator community  No specialized events Customers have a difficult time getting the information they need… Customers have a difficult time getting the information they need… …and are at the mercy of the mainframe vendor’s opinion about the wisdom of migrating off the mainframe Mainframe Migration Alliance

5. “Add a server here. Upgrade a storage solution there. Throw in a database. And before you know it, the IT system that was once your pride and joy has become an albatross. A complex, hard-to-manage albatross that’s holding your company ransom. Time for change.” Extract from IBM advertisement, November 2004 Time for Change

6. The good… The good…  RAS, scalability, high-volume transaction processing the bad… the bad…  Complex, resource intensive, expensive …and the ugly …and the ugly  Lack of responsiveness to the business  Locked-in, high cost of hardware & software Huge investment in applications, skills and data The IBM Mainframe

7. Cost reduction Cost reduction Experiencing capacity problem Experiencing capacity problem Contract lease/renewal up in next 12-18 months Contract lease/renewal up in next 12-18 months Planning a mainframe upgrade or an addition Planning a mainframe upgrade or an addition Initiative to move to.NET Initiative to move to.NET E-business initiative E-business initiative Desire to implement SOA Desire to implement SOA Desire to move to Web services Desire to move to Web services It’s all about lowering costs and increasing agility Migration Drivers

8. Focus on lowering cost and risk Modernization choices

9. Transactions & Batch encapsulate workflow – (CICS & IMS) Transactions & Batch encapsulate workflow – (CICS & IMS) Business rules are defined in COBOL Business rules are defined in COBOL Data reflects the business Data reflects the business But do you really want your: But do you really want your:  Assembler  Adabas  CSP  Natural  IDEAL  IDMS  Unsupported products? Unlock the value of legacy assets The Value of Legacy

10. 38,000 mainframes 500 MIPS Mainframe replacement Workloadmigration Opportunity in excess of $3bn? The Opportunity

11. Mainframe VSE, MVS, OS/390 VSAM, DB2, Oracle CICS COBOL 3270 Legacy Intel, Sparc, POWER POWER Windows, UNIX, Linux SQL Server, Oracle, UDB CICS Cobol, Pl1 3270 “Lift and Shift” Presentation Application Transaction Monitor Monitor DBMS O/S H/W Windows, UNIX, Linux RDB (& XML).NET, J2EE COBOL.NET, VB Java, C# Windows, XML Web Services Web Services Extend (ISAM) (CICS API) (COBOL) Micro Focus Enterprise Server (3270) All trademarks acknowledged Micro Focus delivers a mainframe on Windows Migration by OSI Stack

12. Central States Health and Life Company (USA) Central States Health and Life Company (USA) Financial Network Services (Australia) Financial Network Services (Australia) Quebec Loisirs (Canada) Quebec Loisirs (Canada) Solcorp (Canada) Solcorp (Canada) Sompo Insurance (Japan) Sompo Insurance (Japan) St. Louis PSRS (USA) St. Louis PSRS (USA) Tulane University (USA) Tulane University (USA) Western Australia DoIR (Australia) Western Australia DoIR (Australia) Alnova (Spain) Alnova (Spain) Bern Swiss Bertelsmann (Switzerland) Bern Swiss Bertelsmann (Switzerland) Bertelsmann Media (Poland) Bertelsmann Media (Poland) Donauland Bertelsmann (Austria) Donauland Bertelsmann (Austria) Eurocopter an EADS company (Germany) Eurocopter an EADS company (Germany) France Loisirs Suisse (Switzerland) France Loisirs Suisse (Switzerland) Hannover Re (UK) Hannover Re (UK) ICS ComptenceCentre (Austria) ICS ComptenceCentre (Austria) LR-Medienverlag Cottbus (Germany) LR-Medienverlag Cottbus (Germany) Royal Borough of Windsor and Maidenhead (UK) Royal Borough of Windsor and Maidenhead (UK) Many have already successfully migrated to Windows Some Successful Migrations

13. Business Challenge Business Challenge  Very high running costs of VSE application  Lock-out from new user interface technologies to improve competitiveness Solution Solution  Converted to run on Windows in ASCII against UDB databases Outcome Outcome  Batch performance and on-line performance improved  Saving 600k Euros per annum  Positioned to be more agile – new user interface coming Better performance, lower costs and more agility Bertelsmann

14. Dept of Industry & Resources, WA Migrated in 4 months Business Challenges: Business Challenges:  Outsourced mainframe services @ $1.7m and increasing  Need to minimise cost and risk Technical Challenges: Technical Challenges:  8 information systems, 1000 CICS and batch programs, 1500 copybooks and DB2 database. Solution: Solution:  CICS/COBOL with UDB databases on Microsoft Windows  Compile results (996 OK, 5 SQL, 1 Bind, 1 COBOL)  Batch performance and on-line performance improved  Reduced annual running costs by more than 50%  60% saving in support staff

15. Given Enterprise-class Hardware … Given Enterprise-class Hardware …  Unisys ES7000 8 x Intel 3.0 GHz Xeon 32-bit processor, 8GB RAM, EMC 2 1 terabyte Storage Area Network (SAN)  CISCO network … and Enterprise-class Software … … and Enterprise-class Software …  Micro Focus Enterprise Server  Microsoft Windows 2003 Server  IBM UDB 8.1 database management system … we estimate … … we estimate …  1350 MIPS equivalent for each 8-way processor group Price / Performance 20x better than zSeries* *upgrade pricing in the 5000-10000 MIPS range Performance Results

16. ROI Calculator on MMA Site ROI Calculator on MMA Site  Input transaction size, frequency for a single migrated application  Calculates 5-year ROI based on mainframe MIPS upgrade charges  http://www.microfocus.com/mma http://www.microfocus.com/mma Savings of up to 85% of mainframe h/w and s/w costs ROI Calculator

17. Visit the Micro Focus MMA web site Visit the Micro Focus MMA web site  http://www.microfocus.com/mma http://www.microfocus.com/mma Visit the MMA web site Visit the MMA web site  http://www.mainframemigration.org http://www.mainframemigration.org Try the ROI Calculator Try the ROI Calculator  http://www.microfocus.com/mma http://www.microfocus.com/mma Or call 1800 444 050 Getting more information…

18. Dramatically lower hardware and software costs Dramatically lower hardware and software costs  …of IBM mainframe COBOL/CICS applications ….to a modern, open and extensible platform ….to a modern, open and extensible platform  …with "Lift and Shift" migration …delivered through system integrators …delivered through system integrators  e.g. Accenture, EDS, CSC your mainframe applications to a more agile platform Unlocking the value of legacy Lift and Shift

19. “We have seen outstanding results by migrating our IT operation to the Windows environment through Micro Focus’ solutions.” “Moving to Windows is a critical business decision for us because it provides a low cost, strategic platform to leverage critical value from our existing IT assets.” Léo Théberge, Chief Information Officer, Québec Loisir Unlocking the value of legacy Quebec Loisirs

20. © 2005 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Unlocking the value of legacy