A Total Cost of Ownership Comparison for Mainframe Migration Case Study


This paper provides the results from two total cost of ownership (TCO) based studies to make a case for migrating from mainframes to open system alternatives.


This Total Cost of Ownership comparison for mainframe migration provides an invaluable resource for organizations moving from traditional mainframe systems to more flexible open systems. The landscape of IT infrastructure is rapidly evolving, with open systems offering a blend of scalability, reliability, and cost-effectiveness that mainframe setups struggle to match. Despite their historical dominance in the corporate data center, mainframes are increasingly considered less adaptable and more expensive in the long term.

These meticulously researched case studies delve into the intricacies of this shift. The first concerns a manufacturing company transitioning from a mainframe to an Itanium-based HP Integrity solution running Windows Server 2003. This move was a technological upgrade and a financial turning point. The company witnessed a significant reduction in annualized operating costs, underscoring the economic viability of such migrations.

Similarly, the second case study focuses on a financial services company. This firm downsized its mainframe installation, moving several high-demand applications to a mixed environment of HP Integrity and HP ProLiant servers operating on Red Hat Linux. The outcomes here further reinforce the narrative: substantial cost savings alongside enhanced computing power and efficiency.

The case studies analyze key metrics such as software cost comparisons, application reengineering, and migration costs. For instance, one of the case studies illustrates a yearly saving of $1.3 million in external contractor fees, coupled with a reduction in labor costs by $1.16 million annually. Additionally, there's a notable decrease in power and cooling requirements in the data center post-migration, further adding to the cost benefits.

This comprehensive case study analysis sheds light on the tangible financial advantages of migrating from mainframes to open systems. It serves as a roadmap for businesses considering a similar technological transition. It encapsulates the challenges, strategies, and outcomes of such a pivotal move, offering a clear and practical perspective on the modern IT landscape.

Main Contents:

  1. Economic Assessment of Mainframe vs. Open Systems: A detailed comparison of the total cost of ownership between traditional mainframe systems and modern open systems alternatives.
  2. Manufacturing Company Case Study: An in-depth analysis of a manufacturing company’s transition from a mainframe to an Itanium-based HP Integrity solution, highlighting financial and operational impacts.
  3. Financial Services Company Case Study: Examination of a financial services firm's downsizing from a mainframe to a mixed environment of HP servers, focusing on cost, efficiency, and performance.
  4. Cost-Benefit Analysis: A comprehensive look at the financial implications, including software costs, labor expenses, and data center requirements.
  5. Strategic Insights for Migration: Practical recommendations and strategies for businesses migrating from mainframe to open systems.

Key Takeaways:

  1. Significant Cost Reductions: The case studies demonstrate notable reductions in annualized operating costs, highlighting the financial benefit of migrating from mainframes to open systems.
  2. Enhanced Flexibility and Efficiency: Open systems provide greater adaptability and efficiency compared to traditional mainframe setups, as evidenced by the improvements seen in the case studies.
  3. Long-Term Financial Viability: The transition results in immediate cost savings and positions companies for sustainable financial health with reduced long-term expenses.
  4. Strategic Transition Roadmap: The document offers valuable strategic insights for businesses, guiding those embarking on a similar technological transition.
  5. Comprehensive Analysis Approach: By examining various aspects such as software costs, labor, and infrastructure needs, the study provides a holistic view of the migration process.

This Total Cost of Ownership comparison for mainframe migration is an essential guide for businesses navigating the complexities of IT infrastructure evolution, offering detailed case studies and strategic insights for successful technology transition.

CIOs can utilize this Total Cost of Ownership comparison for mainframe migration as a vital tool to address real-world challenges in their organizations. In the rapidly evolving landscape of IT infrastructure, CIOs are often at the crossroads of making critical decisions that impact both their companies' technological agility and financial health. This document serves as a comprehensive guide in several ways:

  1. Strategic Decision Making: It provides CIOs with concrete data and insights to make informed decisions about transitioning from mainframe to open systems. The detailed case studies illustrate the practical implications of such a move, enabling CIOs to foresee potential challenges and opportunities.
  2. Cost Management: One of the primary concerns for any CIO is managing costs effectively. This document highlights the Total Cost of Ownership in transitioning technologies, giving CIOs a clear understanding of the financial benefits and savings that can be realized over time.
  3. Technology Roadmap Planning: CIOs can gain insights into planning and executing a migration strategy by examining real-world case studies. This includes understanding the timelines, resource allocation, and potential risks involved.
  4. Vendor and Technology Evaluation: The document’s detailed analysis of the technologies used in the migration (such as HP Integrity and ProLiant servers, Windows Server 2003, and Red Hat Linux) assists CIOs in evaluating and selecting the right vendors and technology platforms for their migrations.
  5. Performance and Efficiency Optimization: Through this analysis, CIOs can understand how open systems can improve performance and efficiency in their IT operations, aligning with their goals of enhancing business processes and service delivery.
  6. Future-Proofing the IT Infrastructure: The insights provided in this document help CIOs strategize how to future-proof their organization's IT infrastructure, ensuring it is scalable, flexible, and capable of meeting evolving business needs.
  7. Stakeholder Communication and Buy-in: Armed with the knowledge from this case study, CIOs can effectively communicate the benefits and necessities of the migration to other stakeholders, facilitating buy-in and support for the transition.

In summary, this Total Cost of Ownership comparison for mainframe migration equips CIOs with a valuable resource, combining empirical data and strategic insights to navigate the complex process of IT infrastructure transformation effectively.




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