We are in the eternal struggle - trying to get Management to try LINUX on
the zSeries.
However, we are continually faced with the costs of Mainframe against Unix
and Windows Servers.

Does the note below make sense or is there a counter argument.

Look forward to help form the team.

Paul Tormey
LAN Services
Standard Bank of South Africa.

011 636 4103
083 252 5292
[EMAIL PROTECTED]

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]
Sent: 05 February, 2002 08:47
To: Lea Van Der Want
Subject: Mainframes are More Expensive Than Racked Servers



IT INSIGHTS FROM META GROUP --- February 05, 2002
Published in association with ITworld.com
http://www.itworld.com/newsletters
____________________________________________________________________________
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RESEARCH HIGHLIGHTS

* Mainframes Are More Expensive Than Racked Servers for Presentation
  and Application Levels
* Building the "Right" IT Organization
* Managing the Middleware Portfolio

IT RESOURCES

* Operations Excellence Infusion Program
* IT Portfolio Management Briefings
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FEATURED ARTICLE
MAINFRAMES ARE MORE EXPENSIVE THAN RACKED SERVERS FOR PRESENTATION AND
APPLICATION LEVELS

IBM and Computer Associates have been arguing that partitioned
mainframes running Linux are competitive with rack-mounted servers as
platforms for Apache Web servers and other presentation-level and
application-level uses. Some users, particularly in the financial
industry, are listening, and argue that more mature operations
processes and advanced staffing skills as well as the extra management
features of the mainframe make it the logical server for all aspects of
important Web sites.

Although staff and process maturity are a valid issue for some
mainframe-focused organizations, we believe Linux-based mainframe
partitions will not be competitive with "scale out" strategies based on
rack-mounted, low-end Intel server farms for "edge functions" long
term. Therefore, we believe the mainframe is the wrong platform for
edge functions such as Web presentation. Not only is the mainframe
hardware much more expensive per MIPS -- even with IBM selling Linux
partitions at half price -- but VM software adds additional expense and
support considerations. Personnel costs, which are the largest portion
of the cost of a data center, are fairly equal. However, new software
and skill development in the Web presentation arena is clearly focused
on scale-out approaches based on many blades of commodity servers and
network load balancers.

The mainframe's strengths are vital in large-scale DBMS server
environments, but are of far less value for relatively stateless edge
services. This is particularly true in the Web publish pattern, where
information is being published outbound from a Web site. In a Web
server farm, load balancing and redundancy is typically provided via
the network. If a server develops problems, network load balancers
simply fail-route traffic to another server in the rack that is running
the same load, and the bad unit can be pulled out and replaced with, at
most, minor interruption to processing.

The peaks and valleys of Web demand also make load management difficult
on a mainframe, where the goal is often to keep the entire system
operating at high capacities, such as 80% or higher. While robust
mainframe workload management enables management of fluctuating demand,
reallocating peak MIPS capacity is more expensive than with commodity
Wintel or Lintel server farms. On a server farm, on the other hand,
hardware costs are so low that the only important concern is that
adequate service be maintained to customers during peak times. The low
hardware -- and particularly software -- cost makes idle time on the
processors during low demand periods a minor concern.

One potential advantage of running the application and presentation
layers on the mainframe, with the database layer, is faster response
times. Each step in each transaction is milliseconds faster. However,
in most cases, this speed differential is unlikely to make enough
difference to justify the order-of-magnitude extra cost of the
mainframe solution.

The largest potential benefit from running edge services on the
mainframe is leveraging the most mature set of operations skill sets
and processes, as well as any excess cycles that may be available.
However, long term, we believe the momentum and focus of deploying edge
services on commodity scale-out solutions outweigh these benefits.

USER ACTION:  Although the mainframe can generally be a more dependable
platform, we do not believe the long-term challenges of maintaining
management skills to run Web presentation services on the mainframe or
the cost premium (vs. commodity servers) are justified for presentation-
layer infrastructure. Furthermore, the lack of ISV enthusiasm and the
decline in mainframe skills during the next five to seven years makes
this a doubtful option long term for most shops.

We recommend that organizations match the type of work being done and
the service-level goals, such as availability and scalability, to the
appropriate computing platform. A key consideration should also be
existing operations process maturity and staff skill levels. However,
workloads that easily scale out across multiple commodity servers
should not be centralized onto more expensive platforms simply because
of skill and process issues. In this case, the right answer is to
improve the skills and processes associated with running scale-out
environments.

META Group analysts Rakesh Kumar, Val Sribar, Brian Richardson, Rob
Schafer, Rich Evans, William Zachmann, and Philip Dawson contributed to
this article.

Read trend forecasts, cost-cutting ideas, and other information from
META Group's Enterprise Data Center Strategies advisory service.
http://itw.itworld.com/GoNow/a14724a51924a75999756a1
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Click here to access these Portfolio Management Research Briefings.
http://itw.itworld.com/GoNow/a14724a51924a75999756a6
________________________________________________________________________

BUILDING THE "RIGHT" IT ORGANIZATION

When modifying the IT organization, enterprises must consider existing
performance and work activities -- including how they relate to one
another -- as well as issues that the future organization intends to
improve/solve. Cross-process integration and governance models should
establish the baseline from which future directions may be mapped.
Learn more by listening to "Building the 'Right' IT Organization," a
series of three audio briefings presented by META Group analysts David
Cearley and Dan Vogel.

PART ONE: THE BASICS
http://itw.itworld.com/GoNow/a14724a51924a75999756a3

PART TWO: EVOLVING PLAN/BUILD/RUN MODELS
http://itw.itworld.com/GoNow/a14724a51924a75999756a4

PART THREE: GEOGRAPHIC IT ORGANIZATIONAL MODELS
http://itw.itworld.com/GoNow/a14724a51924a75999756a5
________________________________________________________________________

FEATURED RESEARCH
MANAGING THE MIDDLEWARE PORTFOLIO

Middleware supporting critical component models, application
integration, data management, and other core application functions
constitutes an increasing part of software expenditures. By 2003, most
IT organizations will have amassed a diverse collection of platform
components, including application servers, integration servers, data
integration mechanisms, legacy connectivity adapters, content managers,
commerce servers, and security apparatus. The convergence of e-business
platform components, growing overlap of middleware products, and
extensive availability of new e-business systems will create increasing
redundancy in most organizations' middleware portfolio. During 2003/04,
most Global 2000 IT organizations will struggle to reduce their
middleware portfolio to manageable size and to implement controls on
middleware investments.

Read the full-text of this article (free member login required).
http://itw.itworld.com/GoNow/a14724a51924a75999756a2
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INFUSION PROGRAM: OPERATIONS EXCELLENCE

Highly effective IT operations are critical to the rapid deployment and
successful management of all enterprise computing resources (hardware,
software, network, and personnel) needed to run business application
workloads. META Group's Operations Excellence Infusion program imparts
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transform their operations groups into powerful partners with business
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sessions, and ongoing analyst support focused on the following areas:

    * Data center and distributed operations
    * Technical support/engineering
    * Distributed and desktop computing
    * Help desk and customer service
    * Sourcing of operational components
    * Service-level agreement management
    * Asset management (hardware, software negotiations, tracking,
      inventory)
    * Rapid assimilation of new technologies
    * Operational processes (change management, capacity management,
      asset management, etc.)

For more information, please call 800-945-META (US) or 203-973-6700
(outside US), or click on the following link.

http://itw.itworld.com/GoNow/a14724a51924a75999756a0

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