Power Tools 1993 October

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MFA TOUR PRESENTATION SLIDE: Cover Slide - The Phones at HP are Ringing Off the Hook Key Points: o A recent article in Open Systems Today, talked about the "mainframe alternative" momentum and highlighted HP's leadership in this marketplace. o Proven success - Program in place 2 years - over 500 wins o HP recognized very early the opportunity for mainframe alternatives and poured many resources into making sure we had the mainframe class products, solutions and services to provide our customers with the BEST mainframe alternative. o Our efforts have and will continue to pay off, as more and more customers choose HP as their strategic data center vendor. o Who's calling and why? SLIDE: HP: The Mainframe Alternative - The Doors are Opening and HP delivers. KEY POINTS: o HP winning in every industry o This year, we more than doubled the number of MFA wins. o Large Fortune 100 companies are choosing HP as their strategic computer vendor - 2 years ago, we could not get audiences with CIOs (IBM or DEC bigots). Now these same customers are actively pursuing "mainframe alternatives" with HP. o HP's rapid ascension in the marketplace is demonstrated in the case of a very large Fortune 50 company; two years ago we had very little presence in the account; today, we have major rightsizing initiatives in over 90% of the business units. SLIDE: Mainframe Migration Alternatives and Drivers Key Points: o Recognized two trends in MFA o We've noticed a benefits continuum of cost savings on one side and competitive advantage on the other. 1) Cost savings - tend to "rehost" apps. Centralized implementations Centralized applications, data and systems management. IT not viewed as revenue generator, but as function that supports the businesses Customers who decide to "rehost" tend to move applications by transferring existing applications, i.e., Dun & Bradstreet, SAS, SAP; convert existing applications using conversion tools, i.e., Conveyor, Integris, Jacksonville; or replace aging mainframe applications that aren't meeting business needs with off the shelf applications, i.e., qad, Fourgen, etc... 2) Competitive advantage - Replicated sites Distibuted client/server Centralized system & network mgmnt. Optimum use of MIPS (Extension of data center to the desktop) IT is way to gain competitive advantage. Align IT process with business processes. Customers who decide to implement distributed, client/server technology often choose to rewrite new applications using the wide range of CASE and 4GL tools available, replace their existing applications with state-of-the-art client/server applications or surround their mainframe with new technology and still provide access to existing data/applications on the mainframe. o Frequently, customers first "rehost" for cost savings and then re-engineer to client/server. In fact, HP is doing this at our own Corporate Offices, first rehosting our Order Management Systems (HEART) off our Amdahl mainframe to an HP system, and then we will reengineer the application using client/server technologies. o Many customers choose to co-exist with their mainframes - short-term (during the transition) or long-term for those large customers with large amounts of data/applications residing on mainframes o No matter which implementation alternative customers choose, HP has the expertise to consult and deliver successful implementations. Let's look at a few customer examples of each architecture. SLIDE: Rehosting Slashes MIS Costs - Diner's Club Diner's Club is a great example of an HP 3000 MFA customer who was able to cut costs by over 50% and implement new solutions which allowed them to introduce new products before their competitors and improve overall customer service Key Points: o Major charge card franchise in Australia - 180,000 card holders, 85,000 establishments accept card o Increasing competition from other cards required lower operating costs and innovation and improvements in customer service o Hitachi Mainframe installed - Overall cost of operating very high (staff to operate/maintain, facility costs, software maintenance) o Australia needed to introduce three new customer products to have competitive advantage - Business cards with detailed customer statements, co-branded cards with major organizations (ie. AMA), Cards linked to frequent flier programs o New Zealand's Diner's Club had solution which could handle new products - this ran on HP 3000 at a much lower cost o Australia replaced Hitachi mainframe with HP 3000 955 (now a Corporate Business System) and adopted custom software o Operating costs were cut by 70%, system staff reduced from 12 working around the clock to 3 working one shift o New services successfully introduced and customer inquiry response times improved significantly o Total replacement took only 9 months SLIDE: Distributed Client/Server Architecture Improves Customer Service - Texaco Texaco Fuel and Marine Trading is a great example of a customer who has improved customer service by dramatically reducing the amount of time required to respond to customer requests. Texaco eliminated a division mainframe and replaced it with a new client/server implementation on HP 9000s. Key Points: o Sells 100 million barrels of fuel/lubricants a year. o Texaco needed to update an old, inflexible mainframe system used for order processing and invoicing in the o Saved $5M (payback in 2 years) by eliminating IBM 3090 and reducing the number of supporting IT systems for marketing, etc... o An equivalent IBM mainframe solution would have taken 4 years to customize vs 18 months on HP. o Wanted the ability to quote on-line price and availability. o PSO designed, piloted and implemented a desktop solution allowing users to access UNIX apps, E-MAIL, and IBM mainframe apps w/a Windows PC database extraction facility. Client/Server application o Increased end-user productivity with front-end system o Better access to information. o Rewrote order processing applications based on Informix. o Purchased off-the-shelf from Fourgen for accounting. o Centralized management of internal operations o Competitive advantage was main driver - but achieved cost savings as well. SLIDE: Whether rehosting or re-architecting with distributed client/server, customers require... o HP recognizes mainframe customers have specific needs and requirements. HP delivers solutions that address each of these requirements. 1) Cost-effective MF performance, expandability and functionality. Critical for those customers who are "rehosting". High-performance at competitive prices. 2) Tried and true operating environment with systems and network management tools that provide equivalent functionality to MF tools. Critical to customers who are choosing distributed, client/server - as distributed network/systems management is a major concern. 3) Mainframe class solutions and partners. This is a key differentiator for HP. We have more mainframe solutions on our platforms than any other vendor. In many cases, we have been the first port to another platform other than a mainframe. Important to both rehosting and distributed, client/ server. 4) Vendor expertise and services to plan and implement migrations. (Including financing and education). o HP has the products, services and experience to put the pieces of a successful mainframe migration together. Slide: Mainframe Alternative Customers Require - Cost effective solution with mainframe performance, functionality and expandability. Key Points: Mainframe customers expect high-performing, reliable systems. HP delivers high performance, air cooled, RISC based systems, for a fraction of the cost of a mainframe. Mainframe class expandability to handle demanding application requirements. (i.e., Memory, DASD) Unmatched by any other RISC based vendor. Support for 3480 tapes available by the end of "93. Silo support expected for early "94. Slide: From Desk-top to Data-Center Key Points: HP delivers the best price/performing systems in the industry. 710 TPS $8,258/TPS Equivalent performance to an IBM ES/9000 740 (~118 MIPS) Recent benchmarks - Oracle and Peoplesoft have proven HP systems capability in the data center - outperforming high-end 3090's for a fraction of the cost. You can expect performance to double over the next year - as we will be incorporating more processors at the the high end of the family. High reliability - our systems are so reliable the mean time between failure is greater than 3 years. Binary compatability provides maximum flexibility in scaling systems to meet your distributed environment needs. Power consumption, cooling requirements and footprint requirements (CBS is 1/10 the footprint of an equivalent mainframe) are other areas of cost reductions in implementing a mainframe alternative SLIDE: GTE Achieved Mainframe Performance at a Fraction of the Cost. This example demonstrates HP's high performing RISC based systems. GTE replaces an IBM 3090/600 system with high-end HP 9000 Series 870/200 for batch and OLTP applications. GTE Key Points: o GTE Telephone Operations provides phone service to 12 million customers in 41 states. o Regulated industries, i.e., Telecommunications spend hundreds of hours and thousands of dollars to prepare and file complex and time-consuming government-required reports. o GTE Telephone Operations had to satisfy reports for 41 different utility commissions and the FCC. o Besides reducing operating costs, GTE wanted to make information more available to remote offices. o After reviewing products from HP, IBM, Sequent, HP was selected as prime contractor for both hardware and consulting. o The application was an Oracle based application - 80% batch and 20% OLTP. The mainframe was an IBM 3090/600J. o GTE performed a benchmark and set criteria for one batch job to be completed in 5 hours on the HP system. The job took 1 hour on the mainframe - but with the cost savings, GTE set the criteria for 5 hours. Much to GTEs surprise, the benchmark on the HP system completed in 1.2 hours - almost equivalent performance to the mainframe for a fraction of the cost. o The HP system (HP 9000 870/2 performed within 12% of the 3090/600J with a payback time of 8 months. o HP Professional services to manage the project. o Eight months to implement from design to production. SLIDE: A Proven Operating Environment that Provides Reliability Key Points: o In addition to high-performance systems, we recognize mainframe alternative customers require operating environments that have equivalent reliability and functionality of their mainframe data centers. o HP delivers leading industrial strength operating environments - HP-UX and MPE-IX. Both proven and leaders in the industry. o HP-UX growing at a rate of 3x the market. The best UNIX operating system in the industry. o MPE-IX voted the most reliable operating system by SLIDE: HP-UX The Proven, UNIX Mainframe Alternative Key Points: o In previous years UNIX has had a poor reputation for being capable of handling data center requirements. UNIX has been viewed as a "technical" operating environment, difficult to learn and use and lacking the reliability, and systems/network management tools required in a commercial environment. UNIX however, has grown up and now provides the same level of functionality and reliability required in data center environments. o HP shipping HP-UX for 10 years - thoroughly tested and proven reliable - targeted to commercial environments. o Datapro survey rated HP-UX the most reliable UNIX operating environment in the industry 12/92. o Shipping SMP version of the operating system for many years - have an optimized version for database requirements. o Over 15,000 applications available on HP-UX - including the leading mainframe applications and systems management tools, i.e., Legent, Computer Associates, Sterling... o 42% growth in '92, 47% mkt share accd to Aberdeen o HP #1 Commercial Unix vendor - Aberdeen Group SLIDE: OpenView: Integrated Systems and Network Management Key Points: o Regardless of the operating environment customers choose, OpenView HP's integrated systems/network manager runs on both MPE-IX and HP-UX. o OpenView continues to gain market acceptance. It has emerged as the leader in integrated network and systems management solutions for multivendor distributed systems management. o OperationsCenter provides capability to manage multi- vendor distributed network of systems from central location. Has the capability to easily integrate other systems management tools for common look and feel. o Hundreds of third parties are writing applications to integrate into OpenView - so a systems manager will have a similar look and feel to every application they use. o Provides the capability to set alerts for management by exception - so for example, if a system somewhere on the network reaches a certain level of capacity a message is sent to the central console for resolution. o Management activities initiated from a single window, which permits unattended lights out operation at remote sites. o Software Distributor provides single-point software distribution. Provides push or pull capability across a network. SLIDE: HP Delivers Solutions to Meet Your System Management Needs Key Points: o In addition to OpenView, we recognize that data centers have unique requirements of their own. o We have spent the past 5 years building expertise in managing and migrating mainframe data centers to HP systems. o We know each of these components listed in the circle are of critical importance to MIS managers. And we have solutions that address each of these issues. o HPs offering of systems and network tools outmatch any other vendors - plus we have developed OpenView to integrate these tools for single point of administration across decentralized environments. o HP partners with industry leaders to provide the leading system management solutions - i.e., Computer Associates, Legent, Sterling, Boole & Babbage, to name a few. SLIDE: Business Critical Systems Running on HP 9000s - BT British Telecom is running their mission-critical call accounting system on HP-UX. They are using HP's full suite of high availability products, as well as centralized systems management tools (OpenView, OmniBack) and distributed processing tools (Taskbroker) to provide high reliability as well as single point administration. This is a new application that was targeted for an IBM 3090/600 mainframe. HP proposed solution was selected over the mainframe for increased flexibility, high performance and cost (1/5 the mainframe solution). British Telecom Key Points: o One of the biggest UNIX system developments in Europe. o Governments' radical reforms in the telecommunications industry means dozens of public network operators will be licensed to carry voice/data nationwide. o BT's Inter-Network-Call-Accounting project, INCA is central to BT's ambitions in this market. o INCA provides accounting and information systems for operators o State-of-the art technology, high end UNIX servers 890's and midrange Series 800s and 700s. o Switchover/UX, and high availability RAID disks to store itemized call records and summary information. o Taskbroker to distribute processing to 700 clusters. o Rewritable optical disks o Mission critical application for logging use of network, computing costs and invoicing. o IEF case tools to develop application - full development cycle in less than 6 months - 3X the industry average. o Centralized systems management for backup and network management - Omniback and OpenView. SLIDE: HP Delivers Mainframe Class Solutions Another critical area to Mainframe Alternative Customers is in the applications and solutions arena. Key Points: o We have over 20,000 solutions running on our platforms. o Have more mainframe ISV solutions ported than any other vendor. o In many cases HP is the first port of these applications to an open environment, i.e., Dun & Bradstreet, CA, Andersen Foundation, Walker Interactive to name a few. o In addition, 92% of mainframe CASE solutions are available on HP systems. So mainframe customers can continue to use the tools and products they are CICS accustomed to in their mainframe environment. Key Points: o HP and IBM have announced plans to port IBM's CICS transaction processing monitor to HP-UX. o Customers who wish to migrate "home-grown" CICS/Cobol applications can easily do so with CICS on HP systems. o CICS port was announced 9/92, services and support will be available 2H93. o CICS is just one of multiple TP monitors customers can choose, i.e., Transarc/Encina which is the adopted standard for DCE, Top End or CICS. o CICS on HP systems will provide investment protection of customers existing applications. o In addition to CICS, HP has partnerships with conversion tool providers, such as Integris, Conveyor, VI/Systems and Jacksonville, to name a few. These partners have tools to convert/emulate homegrown applications onto HP systems today. We have many success stories that highlight these migrations. SLIDE: HP's Mainframe Alternative Application Migration Options In our experience of helping 500+ customers move off their mainframe to HP systems, we have recognized the following trends. Key Points: o Customers who rehost - tend to move applications off their mainframe by converting, transferring or replacing with off the shelf applications. o Customers who are reengineering to a client/server or a distributed environment, tend to rewrite applications, replace with off the shelf applications or choose to "surround" their mainframe applications with additional functionality. o CONVERT - If customers are running homegrown applications, i.e., CICS/COBOL/VSAM, DB2, converting the application may be the simplest way to move it to an HP system. HP has established relationships with many conversion partners who can convert these applications to Microfocus Cobol on HP or any other 4GL. o TRANSFER - HP has been very aggressive in making sure the leading mainframe software providers applications are available on HP systems. Transferring these applications is the easiest way to move to a lower cost alternative and doesn't require any new end-user training, i.e., moving Dun & Bradstreets Milleniumum. o REPLACE - Old mainframe applications that are outdated and aren't meeting the business needs are prime candidates for replacing with off-the-shelf applications. o SURROUND - Many of our customers have decided to leave their mainframes in tact as a database server and move applications off to HP systems. (Surrounding their applications with new technology). o REWRITE - Customers looking for the greatest competitive advantage are choosing to rewrite their applications using 4GLs and CASE tools - often moving to a distributed client/server implementation. SLIDE: Dun & Bradstreet Offload Mainframe Applications and Improve Competitive Advantage. D&B decided to look at their applications one at a time and transfer existing mainframe applications, i.e., SAS to an open low-cost solution. o D&B Software is the worlds largest provider of financial, human resource, logistics and manufacturing software, tools and services. o The Information Systems Division of North America was looking for a way to reduce MIS costs, improve productivity and provide a competitive advantage through IT. o They also wanted to position themselves for the future technology changes by moving to an open environment. o They formed a technology steering committee that consisted of the leading technologists within the company. The charter of this group was to identify the business needs and technology requirements to address the business needs. The deliverable of this team was a list of technology requirements for future IT developments and projects. Based on this list the company then sent out an RFP to 3-4 vendors who had solutions that addressed their requirements. o HP was selected as the vendor of choice, actually "HP won hands down" according to Steve Gold, VP of Information Systems Divison of North America. HP was selected because we had the best price/performance, support and expertise to deliver quality implementations. o D&B started their evolution to open systems within their Analytical Services Group. This group was responsible for developing cost compute models for customers. o These models were being developed using SAS on their IBM mainframes. Because the application is batch intensive, they were receiving poor response times with their mainframe. o D&B offloaded some of their SAS processing to HP 9000 Series 800s and increased the analytical services group productivity by 30%. o They also avoided an $800K expenditure of expected staff increases in adding new functionality to the mainframe. o Improved customer service and satisfaction by faster time-to-market. SLIDE: Hewlett-Packard Provides Mainframe Solutions Key Points: o HP has been very successful in establishing strong partnerships with leading mainframe ISV's. Here's a list of some of the leading mainframe ISV's who have ported their applications to HP. o In many cases, HP was the first port to open systems, i.e., Dun & Bradstreet, Walker Interactive, Computer Associates (Unicenter)... SLIDE: Sony Rehosts by Converting Existing Applications o One way to protect customers investment in software applications is to convert them using one of the many conversion/emulation tools that exist in the market today. o This is the approach Sony Display Device took. They migrated 632 programs and 60 VSAM files in less than 4 months, using a tool from VI/Systems. o Sony Display Device (SDD) is located in Singapore and is Sony's largest CRT plant. SDD was outsourcing their manufacturing applications and wanted to gain better control of their systems without a large cash outlay. o The options they were considering were purchasing an IBM ES9000/120 or moving to an open systems environment. o VI/Systems provided the conversion and since the applications have been in production, SDS has seen performance improvements in response times that are 1/2 that of the mainframe during month-end peak processing times. o The HP 9000 Series 800 has been configured for SNA connectivity to the IBM systems being used by other Sony Companies in Singapore and Japan. Thus, an end- user from their PC can access applications on the HP 9000 Series 800, Netware application on a Netware Server as well as applications on remote mainframes throughout the organization. SLIDE: Timex Corporation Replaces Mainframe Applications Here's an example of a customer who has chosen to REPLACE thier existing mainframe applications with off-the-shelf applications. Key Points: o Timex Corporation, an international watch manufacturer, had six major data centers worldwide running all their mission critical applications on a network of IBM 3090 and 43XX mainframes. o In process of replacing an entire network of 3090s and 43XXs with a network of HP 9000 Series 800s. o Replacing mainframe applications with Oracle applications and Oracle RDBMS. o Using Vectra PCs as clients running Newwave. o Have reduced MIS costs by 30% and did not experience any cost spike during the transition. SLIDE: HP and EDS Partner to Re-Engineer Cobb County Faced with a disparate group of systems from multiple vendors, Cobb County turned to HP and EDS to REWRITE their applications for maximum productivity. Key Points: o 3rd largest county in the state of Georgia o Disparate systems from Burroughs, Dec and Unisys required a large amount of re-entry. No integration between departments, i.e., police dispatch not integrated with detentions center. o Purchased 11 HP 9000 Series 800s running Ingres and customized software developed by EDS. o The solution provides over 70 integration points that will allow different departments to share data, i.e., police with detentions, detentions with legal, etc... o Also, utilizing high availability solutions from HP, i.e., Switchover/UX and MirrorDisk/UX are being utilized for high reliability in Computer Aided Dispatch. SLIDE: Fritz Companies Surround Mainframe for Improved Customer Service. Key Points: o Fritz Companies is the largest customs brokerage house in the U.S. Has traditionally relied on proprietary mainframes to support their import/ export transportation services. o To stay ahead of competitors, Fritz has begun to develop new functionality on HP 9000 Series 800s using Oracle CASE methods and RDBMS. o The applications provide a front-end to order information on the mainframe. o Combines distributed computing power with a new, integrated suite of 12 application modules, built on top of Oracle. o These application modules cover all aspects of Fritz's import/export services, including receiving of goods, warehousing, tariff documentation, and shipment tracking. o Implementing a distributed network with high availability solutions for 24 hour access to data. SLIDE: Vendor Expertise and Services to Plan, Implement and ... Regardless of which application migration methodologies customers choose, HP has the expertise, tools and experience to help customers achieve their business/technology goals. PSO Key Points: o Migrating applications off of mainframes can be a complex, lengthy process. Many times these are projects that span a couple of years. o HP has trained consultants who specialize in migration planning and project management. o We have 3,500 consultants worldwide who specialize in all areas of computing i.e., networking, performance, applications, systems management. o We pull together the right people to make every implementation a success. o Worldwide support - over 100 countries, 27 response centers.. o Ranked number 1 in Support by DataPro - 8 years in a row! o Our Professional Services organization has expertise in providing needs analysis, migration planning and implementations. o We have developed a thorough and comprehensive process that addresses every area of implementation - from aligning IT goals with the business goals, to implementation. o Our MFA Services begins with a comprehensive needs assessment to understand customers specific requirements. o Once we understand customers needs we define a target architecture and develop a migration plan in which HP Professional Services will act a prime contractor and project manager. o Educational services are often key to successful migrations. At HP we offer a wide range of courses tailored to help customers be successful in migrations. o Courses cover everything from Open Systems Concepts, Hands-on workshops to programming and systems management classes o Provide customized training at your facility or at an HP office. o Most of the customer successes you've heard about today Channel Partner have been managed by HP's Professional Services. Key Points: o Channel partners are key to the success of our MFA program. o We have developed partnerships with leading integrators who also specialize in mainframe migrations, i.e., EDS, CSC, IISI, Wesson, Taylor & Wells, to name a few. o HP works closely with partners to ensure the best technical resources are available to our customers. o We jointly conduct seminars, advertising and team Flexible selling with many of these channel partners. Financing: o HP offers a variety of financing options to ease the move to HP systems, including flexible lease options and buyouts of existing leases. SLIDE: HP Professional Services provide a total solution to Cotter Canada Many of the customer case studies we've discussed today were implemented by HP's Professional Services Organization. Here's one more great example of HP's leadership in this area. (Cotter formerly Macleod-Stedman) Background: o Cotter Canada is a $100 million wholesale distributor that supplies over 300 independently owned hardware stores in Canada (similar to Tru-Value in the U.S.) o Cotter Canada formed in 1992 when U.S. based Cotter & Co. (8,000 stores in 30 countries) acquired financially troubled Macleod-Stedman Key Points: o Two incompatible mainframes installed - IBM 4381 and Honeywell Bull o Needed to cut costs quickly, MIS asked to consolidate operations. Mainframes 17 years old could not keep up with current business needs had to be replaced o HP Professional Services provided complete migration and implementation services and served as prime contractor o HP 3000 960 and 922, DRC distribution software, and financial acct. from HP installed o New system on-line in 7 months - total investment including services $600,000 o Operating and development costs reduced 1 million from 2.8 million to 1.8 million o Annual software maintenance costs fell from high of $400,000 to $50,000 o MIS staff trimmed from 21 to 16. Accounting staff from 40 to 30 o New systems are meeting business demands and provided critical management information during the Cotter acquisition SLIDE: HP's Mainframe Alternative Initiatives NOTE: It may not make sense to show this slide to customers - but it could be useful in presentations to channel partners. o National Practice(s) - 1) MFA - extensive, mainframe migration training, including application migration, change management system sizing, network & systems management and other elements critical in moving to an open systems environment. 2) Client/server - teams assist in proof-of-concept o Flexible financing and leasing options - will buy out existing mainframe leases o Focused channel partner programs - key ISV's, i.e., Computer Associates, Dun & Bradstreet, SAS, SAP as well as integrators - EDS, IISI, CSC. - joint advertising & marketing (i.e., Seminars) - packaging of products (i.e., free trial copy of CA with every HP system) o Specific programs to meet customer needs, i.e., Turnkey, HP OpenWarehouse (for data respositories) and packaged MFA bundles. - HP OpenWarehouse provides a complete set of tools that have been tested by HP that will extract data from the mainframe, "clean up" the data and transfer to an - HP system for decision support types of activities. o Trained sales force - in mainframe technology and market as well as in "selling high". Practice consultative selling with HP executives. Training is focused and on-going. o Seeding our technical consultants with hundreds of professionals who have extensive mainframe and project management experience SLIDE: HP Stands Out as the Only Mainframe Alternative Key Points: o HP has been very successful with our mainframe alternative program over the past two years. o The phones at HP keep ringing off the hook because we are a leader in this industry. o We have a solid financial situation - unlike most other vendors in this industry. Our 2nd quarter results were outstanding 21% growth in revenue and 28% growth in orders over last year. This is phenomenal growth especially compared to other computer vendors. o We excel in our technologies - leading standards bodies, ensuring the highest quality in our state- of-the-art RISC-based systems. o Leader in price/performance 710 TPS $8,258/TPS - the best in the industry o Programs to package solutions for our customers and you can expect to see more programs coming from HP. o Leading ISV solutions and tools - ensure that HP has all the functionality and applications required in a commercial environment. o Highest quality support - MTBFs measured in years. Highest rated support vendor in the industry - Datapro o Field teams who are committed to making each of our customers successful - being a trusted advisor, a member of their team. One of the highest compliments HP recently received was from a large Fortune 100 Consumer Products Company, the MIS Director stated that if "the HP consultant wasn't wearing his HP name badge, he would have sworn that the consultant was working for them". *************