The Value of Legacy

Why COBOL is strategic in the 21st Century

John BillmanProduct Director, Net Express and Japanese Products

The Value of Legacy

• Legacy applications are a valuable resource

– An investment of over $5 trillion– …at the heart of every large enterprise– …running the world’s economy

• …which can be reused and extended

– As core services– …in new products– …delivered to new channels

• …providing enduring business value

– Reducing costs &– …driving agility– …with least risk

75% of the world's business

data is in COBOL

There are between 180 billion

and 200 billion lines of

COBOL code in use worldwide

15% of all new applications (5

billion lines) through 2005 will

be in COBOL. (Gartner)

Emergence of Service-Oriented Architectures

Focus on ‘re-use’ at the business level

…based on XML & Web services

Web services is independent and inclusive of:

– Any platform

– Any language

– Any architecture

J2EE and .NET

“The secret to success lies in building bridges between the old and the new”

Ovum: Legacy renewal, May 2004

Increased choice for the enterprise

Then Now

Moore’s law

Higher flexibility

Lower cost

Platform for extension

Increased scalability

UNIXMainframe

“Rip and Replace”

Cost

0 10 20 30 40 50 60 70 80 90 100 % Reuse

Package Implementation

Legacy Transformation

Legacy Modernisation

“Lift and Shift”

“Lift and Shift” - the best strategy

The Choices for Moving

The Lift & Shift Opportunity

Reduced Costs– 80% Savings in hardware and software achievable– Rapid ROI utilizing existing staff skills, data and applications

Increased Agility– Modern service-based architecture using XML, Web

Services– Leverage the .NET or J2EE Application Environments

Lower Risk– Combination of Micro Focus running on an Enterprise-

strength platform and System Integrator expertise provides low-risk route to lower TCO

Windows/UNIX Development & Deployment

Business Rule Development

Open MiddlewareComponent

Architectures

COBOL ModulesWeb Services

COM ComponentsEJBs

C, C++, JavaHTML, XML

OtherLanguages

.NETWeb Services

Java J2EEWebApp Servers

Faster Development, Flexible Deployment

Net Express with .NET– COBOL development environment– Take core COBOL business processes & extend them to meet today’s business

needs

Net Express Professional Edition

– Revolve + Net Express– Combine Analysis Tools with

Development Process

Server Express– UNIX/LINUX COBOL development

Application Server – Designed for performance and reliability

Enterprise Server – Scalable, Managed, Transactional COBOL Service Deployment Environment– Mainframe Transaction Option for CICS

Micro Focus Enterprise ServerMicro Focus Enterprise Server

Enterprise Server – All Platforms

LinuxLinux UNIXUNIX WindowsWindows

Micro Focus Application ServerCOBOL Run-Time System (RTS), Filehandler, etc.

Direct COBOLWeb service

COBOL/J2EEServices

MainframeTransaction

Option

Development Environment – CICS Application

EnterpriseServerMainframeTransaction

Option

CICSDefinition

Data

TN3270

CICSCOBOL

BMS

COBOLLoadlib

BMSLoadlib

Net Express with MTO

CICS (ES/MTO) Extension

COMMAREA

Interface Mapping Toolkit

EJB, JSP and Servlet Generator

BMS

Workflow Capture

Web service

.NETWinform/Webform

Web Enable, Move to SOA

Lombard Insurance - Overview

Lombard Canada Ltd. is one of the oldest property and casualty insurance operations in Canada

Commercial, personal, and specialized insurance Consolidated gross premiums written totaling C$

1.94 billion Total shareholders' equity of C$ 861.7 million Top 5 Insurance Company in Canada Wholly owned subsidiaries of Northbridge

Financial Corporation (NB on the TSE)

Lombard – Why Migration? Diminishing availability of the highly specialized

skill set required to maintain a mainframe environment

Shortage of innovation in the mainframe ISV ecosystem

Need for increased flexibility Desire to stay ahead of the curve and continuing

the tradition of technology leadership in the insurance industry

Significant Cost Savings

IBM MainframeIBM Mainframe(outsourced)(outsourced)

RISCRISC

AS/400AS/400

Lombard – Migration Approach

Phase 1 - MigrationPhase 1 - Migration- CARP Sub-systemCARP Sub-system- Personal Insurance SystemPersonal Insurance System- Commercial Insurance SystemCommercial Insurance System

Phase 2 - MigrationPhase 2 - Migration- Finance Systems- Finance Systems

Phase 3 - MigrationPhase 3 - Migration- MIS and Business Support Systems- MIS and Business Support Systems

Projected ROI = 18 Months!Projected ROI = 18 Months!

Lombard – Current Systems

– IBM H70 - 200 MIPS (S/390) running z/OS (hosted at external supplier)

– COBOL for MVS 1.2– CICS T/S 2.2– VSAM– DB2– GTAM

– Assembler– JCL– EZ Sockets– AS/400 Interfaces

(LU6.2)– SAS– SELCOPY– Documerge – formatting

and printing output

Phase 1 – Personal and Commercial Insurance Systems

Lombard – Target Environment

– Microsoft Windows Server 2003 Enterprise– Convert all DB2, VSAM & GTAM to Microsoft SQL

Server– Migrate all COBOL to Micro Focus ES/MTO– Re-write Assembler into Cobol or C#– Utilize Micro Focus JCL Handler– Convert AS/400 interfaces (LU6.2) to Web Services– Third Party Software

– Migrate SAS to Windows version– Replace SELCOPY with Windows version– Replace Documerge with Windows version

– Microsoft SourceSafe for Code Management

Lombard – Target Environment

Websphere PL

B ChoiceCL Regions

Micro Focus P. Line

Micro FocusCL Billing

DocumergeInfopac

SQLDatabase

SQLDatabase

SAN

SASAcceptance/

SystemsTEST

TESTUnit

2 x 4 CPU Application 2 x 4 CPU Application Servers (split workload Servers (split workload + backup) 32GB RAM+ backup) 32GB RAM

2 x SQL/Data Servers2 x SQL/Data Servers(passive backup; (passive backup; clustered)clustered)

Yellow Servers = Internet = Internet

Green Servers = Production = Production

Red Servers = Development = Development /Admin/Admin

Lombard – Phase 1A CARP Sub-system: handed over to Lombard on

April 25th, 2005– 37 Cobol Programs– 16 BMS CICS Maps– 145 Cobol Copybooks– 3 Assembler Programs – 12 GTAM (Assembler Tables) – 7 VSAM files– 2 DB2 tables– 2 Flat/Sequential files– 4 JCL Streams – with 21 JCL Jobs/Proc

92.3% of COBOL code retained!!92.3% of COBOL code retained!!

Lombard – Why Migration?

““We estimate this project willWe estimate this project will save us in excess of $1 million a save us in excess of $1 million a yearyear, but more importantly, it will enable us to , but more importantly, it will enable us to become more become more

competitivecompetitive in our industry both today and in the future.” in our industry both today and in the future.”

““Part of Lombard’s competitive advantage is directly related to Part of Lombard’s competitive advantage is directly related to technology, and this migration will help us technology, and this migration will help us attract and retain attract and retain

the most talented IT peoplethe most talented IT people, who are looking to work with the , who are looking to work with the latest technology.”latest technology.”

experienceΔΔInsurance

Peter Howling, Vice President of IT, Lombard Canada Ltd.:Peter Howling, Vice President of IT, Lombard Canada Ltd.:

Software licensing costs projected to fall from 12% of IT Budget Software licensing costs projected to fall from 12% of IT Budget to 2-4%to 2-4%

Customer Story - SOLCORP Business Challenges:

• Price/Performance a key decision factor in new accounts

• Need to maintain and enhance competitive edge

• Seamless Integration with other insurance and financial systems

Technical Challenges:• Deliver Managed code solution reusing existing COBOL

mainframe DB2 code in service based architecture

• Match or exceed mainframe performance and scalability

Solution: • Micro Focus Net Express with .NET combined with

Microsoft Windows Server 2003 and SQLServer

Results:• Successful migration of Batch and On-line parts of the

system

• Exceptional scalability to >2 million policies

• Agile system, with COBOL business processes exposed as Web services

1 million lines of mainframe COBOL reused in .NET

CPUs 4 8 12

# Policies

700,000 1,400,000 2,100,000

Bertelsmann Business Challenge

– Very high running costs of VSE application

– Lock-out from new user interface technologies to improve competitiveness

Solution– Converted to run on Windows in

ASCII against UDB databases

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

Choice Cost Bottom Line

Rewrite in Java

€4-5m 15 Man Years, Risky, Expensive

Move to z/OS

€3.6m Still not agile

Migrate to AS/400

€3.0m Non Strategic

Migrate to Windows

€1.2m Strategic, Agile, Reduced TCO

Alnova Financial Solutions (Madrid-based banking application provider in Accenture’s insurance and banking portfolio)

Business Challenge– Target low end market using mainframe assets for its Alnova

Financial Solutions product suite– Strategic commitment to .NET

Solution– Migrate Enterprise Banking application – 5500 COBOL programs - 11 million lines of code…– 1600 transactions, 2000 JCL steps, DB2 database…– To Windows 2000 on 8-way Intel servers running SQL Server

Outcome– Successful migration to Windows and .NET– Achieved >240 transactions-per-second on 8-way processor– Single-sourced business rules for both platforms

Business Challenges:• Price/Performance a key decision factor in new accounts

• Need to maintain and enhance competitive edge

Technical Challenges:• Maintain Common Business Logic across Mainframe, UNIX and Windows

• Deliver Scalable, Robust, High Performance System

Solution: • Micro Focus Net Express combined with Microsoft Windows Server 2003 delivering scalable operating

environment

Result:• Successful Benchmark at over 800 TPS

COBOL scales new heights on Windows

RESULTS SUMMARY

DB Server on Win2K

DB Server on Win2K3

Configuration Online Test (TPS)

FNS/SQL Server CPU Usage

Batch Test (Acc/Hr)

FNS/SQL Server CPU Usage

Online Test (TPS)

FNS/SQL Server CPU Usage

Batch Test (Acc/Hr)

FNS/SQL Server CPU Usage

CONF1 (16Way) 816 91/69 19.85 Million 84/91 811 92/57 19.9 Million 83/82 CONF2 (8Way) 528 95/42 13 Million 92/50 538 96/38 12.8 Million 90/49 CONF3 (4Way) 358 94/27 9.1 Million 94/32 334 96/21 8.9 Million 95/28

Benchmarking ES/MTO Performance Measurement Methodology

– Measure same CICS COBOL transaction (OLTP) workload on mainframe and Enterprise Server w/ MTO

– Compute MIPS rating equivalent for Windows platforms– Generate Price / Performance ratios– Create Return On Investment (ROI) Calculator

COBOL implementation of TPC-C– Intentionally untuned for any one subsystem– Mirrors typical CICS transaction (database) mix

Apples for Apples - Uses all subsystems for presentation logic, business logic and data storage– COBOL language and runtime system– 3270 terminal I/O– CICS transaction management system– DB2 database management system

Mainframe Functionality, Performance, Reliability, Availability, Serviceability, Scalability, Security

Performance Results Given Enterprise-class Hardware …

– Unisys ES7000 8 x Intel 3.0 GHz Xeon 32-bit processor, 8GB RAM– EMC2 1 terabyte Storage Area Network (SAN)– CISCO network

… and Enterprise-class Software …– Micro Focus Net Express and Micro Focus Enterprise Server w/ MTO – Microsoft Windows 2003 Server– IBM UDB 8.1 database management system

… we can estimate …– 1715 MIPS equivalent for each 8-way processor group– Price / Performance advantage of 20x over zSeries upgrade pricing in the 5000-10000

MIPS range

Enterprise Performance , major cost savings

Interface Mapping Toolkit (IMTK)

COBOLInterface

(Linkage Section)

COM

Web Services

JavaApplication

Server

EnterpriseServer

EJBInterface

TestClient

Non-ESWindows only

Generation Deployment

Linkage items in your COBOL program…

…map on to fields in your web service interface

The Interface Mapping Toolkit

Deploy Web Services to Enterprise Server

…and call your Web Service from any client you like

Mapping COBOL Programs as EJB

COBOLProgram

Checker

InterfaceMapper

IDTIDT Map. XMLMap. XML

INTINT Data Dict. Data Dict. XMLXML

EJB EJB ClassesClasses

EJB, JSP and Servlet Generator

ServletServletClassesClasses

JSPJSP

J2EE

Java Connector Architecture

Web Container

JSP/Servlet

EJB Container

EJB

Micro Focus Enterprise Server

Micro FocusResource Adaptor

Application Contract (CCI)

EJB Methods

Transaction MgmtConnection Mgmt

Security Mgmt

BINP – Micro Focus Binary Protocol

System Contract with J2EEApplication Server

COBOL – an equal player in .NETCOBOL – an equal player in .NETCOBOL generates IL as other Microsoft languagesCOBOL generates IL as other Microsoft languagesCOBOL is deployed inside the .NET Framework under the CLRCOBOL is deployed inside the .NET Framework under the CLRCOBOL gains access to Framework classes and functionalityCOBOL gains access to Framework classes and functionality

COBOL Inside the .NET Framework

COBOL C# VB.NET …

MSIL (Intermediate Language)

.NET Framework

FrameworkClasses ADO.NET Winforms Webforms

Com

mon

Lan

guage R

un

time

Win32

Micro F

ocus

Ap

plication

Server

Visu

al Stu

dio .N

ET

2003

Net E

xpress w

ith .N

ET

COBOL Development COBOL Deployment

Create, Reuse and Extend

Reuse existing COBOL Business logic in .NET

Use Procedural or Object Oriented COBOL under .NET

Extend COBOL applications to utilize .NET functionality– Access to .NET Framework Classes

program-id. ShowMessageBox as "ShowMessageBox". environment division. configuration section. repository. class Message-Box as "System.Windows.Forms.MessageBox".

data division. working-storage section. procedure division. invoke Message-Box "Show" using "Hello COBOL World". end program ShowMessageBox.

Moving to ADO.NET

Existing OpenESQL applications can be reused under .NET

EXEC SQL SELECT A.NAME ,A.SALARY INTO :STAFF-NAME:STAFF-NAME-NULL, :STAFF-SALARY:STAFF-SALARY-NULL FROM STAFF A WHERE ( A.ID = :STAFF-ID )

END-EXEC

ADO.NET classes can be called directly from COBOL

OpenESQL mapped to ADO.NET

COBOLEXECSQL

COBOLEXECADO

ODBC ADO.NET

Database (SQL Server, Oracle, …)

COBOL, C#, VB, …

OpenESQLAssistant

or

Connected and Disconnected Data Access

ADO.NET provides for Connected and Disconnected data access

Disconnected data access liberates SQL application from a continual connection to a database

Enhance the performance of web and other applications

Share data across composite applications

Make ISAM and other data available to non-COBOL applications

Export data to XML

ApplicationRead / Write RDB ISAM

Connected Data Access

Application

RDB ISAM

Disconnected Data Access

COBOL, C#, VS.NET Program

COBOL, C#, VB.NET Program

Dataset(s)

Download

Upload

Expose COBOL as Web Services Use Visual Studio .NET to create and extend COBOL

applications

CLASS-ID. Stock INHERITS WEBSERVICE. REPOSITORY. CLASS WEBSERVICE AS "System.Web.Services.WebService" CLASS WEBMETHOD AS "System.Web.Services.WebMethodAttribute". OBJECT. PROCEDURE DIVISION. METHOD-ID. StockQuote CUSTOM-ATTRIBUTE IS WEBMETHOD.

Microsoft IIS

AS

P.N

ET

CO

BO

L

COBOLApplication

Why use XML?

XML brings data to the web XML is now commonly deployed as an

integration piece between applications or application components (EAI, B2C and B2B)

XML is a simple but extensible and mature technology

By accessing XML from COBOL it becomes easier to Integrate COBOL business logic and data to systems across the enterprise

A key technology to enable e-business

Micro Focus COBOL/XML Syntax

Provide a higher level COBOL orientated approach to COBOL/XML

Adds significant new syntax to handle XML documents to consume, create, update and XML documents from COBOL– Based on familiar approach used with COBOL I/O

support– Provides both SAX style or DOM style parsing

Map to/from XML W3C Compliant Schemas

CBL2XMLCOBOLRecord

XMLSchema

Basic MF COBOL XML handler…$set sourceformat(free) p(prexml) o(basic.pp) endp SELECT myxml ASSIGN ADDRESS OF mybuff

ORGANIZATION IS XML DOCUMENT-TYPE "mybuff.xsd"FILE STATUS IS mybuff-status.

XD myxml.01 myxml-name PIC X(80) IDENTIFIED BY "name".WORKING-STORAGE SECTION.01 mybuff PIC X(80) VALUE "<name>Barry &amp;

Laurence</name>".01 mybuff-status PIC S9(9) COMP-5.PROCEDURE DIVISION. OPEN INPUT myxml READ myxml DISPLAY "Status: " mybuff-status DISPLAY "Name : " myxml-name CLOSE myxml STOP RUN.

Business Challenges:• Differing requirements for on-line single share order entry and high

volume bulk share processing• Security. Integrity, and Consistency of Share Processing an absolute

requirement Technical Challenges:

• Integrate 3rd Party System running on UNIX with existing Windows based COBOL System ‘Mozart’.

• Deliver Robust, Reliable High Performance System Solution:

• Micro Focus Net Express XML Early Adopter Software enabled data integration between the two separate systems

• A small XML I/O processor was built that delivered bulk orders to ‘Mozart’ via XML and returned the status back

Result:• Successful integration of new Share System for bulk orders without

impacting existing system

Integrate Disparate Business Systems

Deutsche Bank Luxembourg

Deutsche Bank Luxembourg Outline Architecture

UNIX Windows

RPMS Export/Import

Flat file

MercatorEAI tool(mapping and data transformation)

XML

COBOL Import/ExportXML

Mozart OMS(NX application)

OracleDatabase

Why COBOL is strategic in the 21st Century Reuse COBOL assets

– 200 billion lines of COBOL in use today– 75% of business data processed in COBOL– 15% of all new programs will be written in COBOL

Reuse COBOL Skills Powerful Development environments improve

programmer productivity COBOL remains a strong business class language

delivering performance and maintainability “Its not your Fathers COBOL!”

– COBOL is now a “First Class Citizen” in .NET– COBOL is Object Orientated– COBOL works with other technologies in the enterprise (not

just .NET, also J2EE, XML and Web services)

Legacy Platforms and Legacy Environments should be differentiated from mission critical business logic

How can I help? Teach more COBOL

– Part of the future Howling envisions includes bringing in new talent, which likely won't have a strong mainframe skill set. "We've outlived and outgrown the mainframe," Howling said. "With [recent] graduates, you start talking mainframe and they're not interested … that's where my talent pool is coming from, and they won't be learning COBOL in universities."

Show COBOL is has moved beyond the mainframe Show COBOL is modern, agile and strategic Show how COBOL has a future Show how COBOL works within the enterprise

today Show why COBOL is a valuable and strategic skill

for a 21st Century IT Graduate

Help build the next generation of COBOL Programmers!

Why COBOL is strategic in the 21st Century

John BillmanProduct Director, Net Express and Japanese Products