Welcome to Module 2 of the ClearPath Mainframe Awareness Certification course.

In this module you will learn how ClearPath fits in the client environment and how ClearPath provides a real boost to business profitability.

Upon completion of this module, you should be able to:

Describe the financial benefits of ClearPath ownership. Describe ClearPath financial agility. Identify ClearPath cost-saving solutions. Describe the ClearPath client base and their application of ClearPath products. The purpose of this module is to describe the financial agility of ClearPath systems. Unisys has pulled out the stops to ensure that the ClearPath system meets the clients business and financial needs and models.

We have seen this list before. It shows four primary areas of strength in regards to ClearPath servers.
Large businesses are looking for a competitive advantage, business agility, and measurable ROI for their IT expenditures. No product line delivers on those expectations better than Unisys ClearPath!

Too often clients focus in on a single financial dynamic without looking at all the costs brought throughout the lifecycle of the platforms and solutions; for example, system management costs or the cost incurred by an outage.
The ROI and long-term value of investing in ClearPathbased solutions and integration and automation of the existing and new ClearPath applications is significant and well-documented. It is important that clients know the value of their ClearPath applications to the business in concrete financial terms. ClearPath systems offer many economic benefits; these have been documented in the ClearPath Economic Benefits white paper. Unisys delivers agile, mission-critical IT environments to clients, but that is not all. In most cases Unisys is seen as a longterm strategic business partner.

Regarding the ROI of investing in ClearPaththe returns are in and the returns are significant.
ITCentrix (now Barometrix) conducted a detailed study of the economic advantages of ClearPath systems between 2000 and 2007 using data obtained from interviews with a number of ClearPath clients. The results are astounding as ClearPath brought its client base a whopping 1300% ROI. The slide represents a composite of client value studies performed under a program called ClearPath Application Value. The studies were intended to show the value, the ROI, delivered to the business by investments in ClearPath. These 13 clients are a global sample of the studies done during the program life from 2000 through 2007. ITCentrix was engaged to build the models and perform the client studies. ITCentrix, a software and services firm, maintains a comprehensive database of IT benchmarks that examines the business value of companies' applications. In analysis of thousands of companies, including ClearPath clients, ITCentrix found that the business impact a system has to a company far exceeds its hardware and software value.

TechRepublic recently reported that according to The Gartner Group, forty percent of all IT projects fail to meet business objectives, costing companies millions of dollars annually. These figures are astounding considering nearly one trillion dollars is spent worldwide each year on IT hardware, software, and services.
Lets take a look at how ClearPath helps clients to meet their IT dollar objectives.

Over the years Unisys has introduced a significant number of ClearPath business and technology flexibility features. One such feature is Pay-for-Use metering that allows clients to only pay for the performance and system usage incurred during the billing period.
ClearPath delivers agility for three key business functions: Business Processes IT procurement IT Infrastructure

This slide shows how ClearPath solutions facilitate business, financial, and technical agility. These solutions and environments are available for ClearPath clients today.
When we look at the Business Processes, we see that ClearPath brings many capabilities such as model-driven solution development that allows new solutions to be generated from business rules. We provide tools that enable business people themselves to generate enterpriseclass solutions. Service Oriented Architecture, SOA is a true enabler of the business agility, enabling integration of silo processes. ClearPath applications can fully participate in the enterprise-wide SOA solutions. For IT procurement, ClearPath offers flexibility options such as our Industry leading Pay-for-Use business models, ClearPath Cloud options, Open Source, and Capacity on Demand options.

IT infrastructure agility has been our focus for a long time. Here you see a few examples that provide flexibility for integration, automation, platform, software, capacity management, and system managementaddressing all the aspects of the IT infrastructure.
Furthermore, Unisys offers a rich set of ClearPath middleware technologies that enable an enterprise-wide and flexible IT infrastructure resulting in flexible business processes.

Lets take a moment to identify the financial benefits of ClearPath ownership.

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Perhaps at the top of the list of financial benefits are the two extremely flexible licensing models that ClearPath offers to clients. Unisys does not expect the client to pay for what they do not use. It is recommended that clients get licenses of ClearPath systems that includes sufficient reserve processing power to meet their greatest peak business demands. Consequently, Unisys only expects clients to pay for the resources they absolutely require. Thus, Unisys offers two extremely flexible, and very popular licensing options: Pay-for-Use Business models and a traditional business model with Capacity on Demand license options. Pay-for-use is based on the industry unique metering technology. This continues to be Unisys most popular business model. These two models will be discussed in detail in just a minute, but lets continue to list additional financial benefits of ClearPath ownership.

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ClearPath offers additional flexible licensing options with many economic benefits. The ClearPath Cloud is designed to supplement the clients existing ClearPath environments, when needed. Providing shorter term and low risk options to meet specific project needs. Workload specific value pricing is available for targeted workloads such as development, BIS, and AB Suite. Unisys Leasing and other financial institutions offer a variety of leasing options for example for clients who prefer an OPEX versus CAPEX financial approach. This and many other options ensure the ability to meet virtually any financial requirement. A large number of Open Source products are available for the ClearPath clients. While these products typically have support subscription licensing fees, they are low cost and very attractive especially in public sector.

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One of the most important advantages of the Service Oriented Architecture is the ability to reuse existing applications and data assets enterprise-wide. This enables fast implementations of new business requirements, with less cost and less risk. ClearPath offers many technologies for this as you will see later in this module and in Module 3. While SOA offers many options for enterprise-wide integration, the clients can also use the rich set of ClearPath middleware technologies to integrate heterogeneous environments without SOA. Integrating virtually with any application or data on any platform. ClearPath performance redistribution is a unique feature that allows clients easily to distribute their licensed capacity across the processors and partitions any way they want.

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The ability to run hundreds of mission critical applications under one instance of an operating system provides economic benefits such as savings due to lower cost of operations, fewer operating system licenses, lower cost of system management versus managing large server farms. As described earlier, the ClearPath Integrated Stack reduces risk and costs since the clients does not need to do the labor-intensive and timeconsuming integration; it is done by Unisys! ClearPath system management tools offer powerful automation of system management operations across the datacenter, reducing risks and costs.

Unisys offers many business models, platform and software options for implementing Business Continuance and Disaster Recovery. The fully automated Disaster Recovery eliminates human errors and facilitates fastest possible recovery in case of disasters, natural or man-made.

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Lets take a closer look at the unique, ClearPath licensing models: Capacity on Demand and Pay-for-Use. One of the key features of these options is that they enable clients to license or access more capacity on a temporary basis. In the Traditional Business Model, available since the dawn of the IT, the client initially buys enough capacity to handle their peak loads. Consequently, during the light load periods they are still paying for the extra capacity. Available since 2001 the ClearPath Capacity options enable clients to license extra temporary capacity to handle processing peaks such as month end or seasonal processing. This enables the client to license lower initial capacity and license additional capacity as needed. These options are available for every ClearPath system licensed with the traditional model.

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The unique Pay-for-Use business models are based on metering technology and allow the clients to pay for resources as they consume them. With this technology the client has access to 100% of the processing power, but only pays for what is used. Currently, we offer two Pay-for-Use business models: Base-plus-Usage, which establishes a billing period that includes a base amount of usage and any additional usage. Pre-paid Performance, which allows the client to pre-pay for usage, much like a phone card.

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Lets look at the Traditional Business Model with Capacity on Demand licensing. At the point of the initial system purchase, the client licenses a specific level of system capacity. The license is provided to the client as a performance key. The client can also adjust, through a standard upgrade purchase, a lower or higher performance key for normal processing. Capacity on Demand options allow the client to purchase additional capacity (additional performance keys) for temporary use. Additional temporary capacity is licensed in one day increments. It can be a small percentage of the overall processor performance or it can be a large increase. And it is not a matter of upping or downing processors, but rather adding capacity in incrementssmall or largematching the business needs.

Clients use Capacity on Demand to access temporary capacity to handle seasonal peaks such as month-end or quarter-end processing, sales campaigns, or planned and unplanned events.
The Capacity on Demand Emergency Recovery and Disaster Recovery options enable the additional capacity to handle backup systems. Most clients use these arrangements, often in multiple locations. The Capacity on Demand options are very popular and very attractively priced.

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Metering technology and the Pay-for-Use licensing, business models are two major Unisys innovations.
Pay-for-Use is an economic model that allows clients to pay for system resources as they consume them. In Pay-for-Use the extra capacity is always on and available to the business instantaneously. With pay-for-use clients can transition from a capital expense model to an operating expense model. Pay-for-Use offers a better match of revenues to expenses. From a financial perspective, organizations like having expenses aligned with the associated revenue stream. Metering is the Unisys innovative technology that allows the client to instantaneously tap into extra resources, as needed, and then measures or meters the resources that are consumed. Unisys has several metering related patents.

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The Pay-for-Use business models enable ClearPath clients to react to the changing business demands and market movements by instantly and automatically tapping into additional performance to handle sudden capacity and performance requirements. The Pay-for-Use business models help the client to handle requirements such as:
Seasonal peaks even when they differ from year-to-year Promotions requested by marketing and sales departments Unpredictable and fluctuating load requirements caused by the Internet

Fast moving price wars

New business functions Unplanned work Emergencies and disaster recovery Modeling the system to the actual specific business needs of a client is what the ClearPath mainframe is all about.

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So, what about the business bottom line?

The financial benefits of metering and Pay-for-Use are significant and include: Lower up-front capital IT investment. Clients only license up front their average run rate, not their peak level of performance. In addition, the monthly costs incurred over time for metered processing power usage are treated as operating expenses, not capital expenses. Pay only for what is used. Once metering begins, utilization is viewed in aggregate over the course of a month. The monthly usage report shows the base amount of processing power licensed up front, netted against the total used that month. The client only incurs additional charges if they use more than what was licensed up front. A better match of revenues to expenses. When the client is in a period of increased revenue generating activity, for example during a seasonal busy period, the increased revenue that generates the need for additional system usage is tied to the associated expenses incurred. When revenue-generating activities are in non-peak periods, and the system isnt used as much, associated expenses decrease as well. Business risk is reduced. Again, clients only pay for what they use, and revenue is earned before expense is incurred.

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The Pay-for-Use business models offer tremendous operational benefits, including:

The adaptability and flexibility of metering means that the client can quickly respond to changes in demand, whether those changes are expected (like to meet peaks or seasonal demand) or unexpected (for instance a promotion that drives more activity than originally forecasted). With metering, clients know they will have the resources on hand to be able to meet service level agreements, even in times of unexpected demand. And they have the opportunity to improve service levels if desired. Clients get more work done, in less time with metering, which means they may be able to eliminate a workload shift. For instance a 3rd shift that runs batch could be eliminated because the 2nd shift now has enough processing power to complete the batch run during their shift. Finally, metering simplifies capacity planning, because with the extra resources that come with the system, planning for resource needs 3 to 5 years down the road is not as much of a concern. The performance is already there!

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ClearPath servers offer the best Pay-for-Use business model, and metering technology in the industry. It provides clients with fine granular control and flexibility unmatched by other vendors. With pay-for-use and metering, clients pay for only the resources they require to process their business IT activities. Nothing less, nothing more. Unisys also provides clients with the tools to control capacity usage. Thus, clients are in total control over their system usage and their financial expenditures. This level of control is a ClearPath competitive advantage. Lets spend a few minutes learning about optional ClearPath solutions that offer significant cost savings for ClearPath clients.

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Companies spend millions of dollars annually on production output. This includes reports, billings, invoices, and other printed materials that are integral to business operations. In this electronic age, we are inundated by print. How do clients manage it and deliver the right information to users, where and when they need it? Unisys has the Solution: Enterprise Output Manager! Unisys created Enterprise Output Manager or EOM, formerly DEPCON, an enterprise output management software product, with a unique file masking capability that identifies data, transfers, converts, processes, distributes, and outputs files across system architectures and mediums. Its menu-driven tools let sites monitor, edit, modernize, re-route, and consolidate application output from many platforms, including Unisys, IBM, Windows, Oracle, HP, UNIX, and Linux systems. EOM can process enterprise application output produced by various vendors such as, Unisys, Oracle, PeopleSoft, COBOL, other legacy applications, and other client-written applications.

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EOM is able to receive files from Output Manager or Output Manager applications on other systems, NET API, Web services, systems using LPR/LPD protocol or raw TCP protocols, Message Queuing interfaces, systems without full-time network connections, files written into a local or network directory by another application, COM Output Manager interface, and e-mail message bodies and/or e-mail attachments through the Output Manager e-mail interface to an e-mail client. But wait, there is more!

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EOM enables enterprises to print, distribute, and manage documents from the cloud. This is done securely to ensure that data was not altered during transmission. How is this done? EOM is a Cloud Aware Application which is configurable to make printers at the clients site, Cloud Aware Printers. EOM provides our clients an instant cost savings by eliminating the need to purchase Cloud Aware Printers, which are currently being advertised and sold by IT vendors. Enterprise Output Manager is just one way that Unisys works to save our clients their IT dollars, improve business processes, and increase productivity. Click the Web and information icons to learn more about Enterprise Output Manager.

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Operations Sentinel (formerly named Single Point Operations) provides clients with an enterprise-wide system management solution that simplifies, automates, monitors, and manages multiple heterogeneous systems, streamlines operations, and provides real-time health status for the entire data center infrastructure. The environments that Operations Sentinel can manage range from large, centralized data centers with multiple mainframe-class systems to fully distributed environments. The managed systems can be of one type or many different types, including ClearPath MCP and OS 2200 systems, Microsoft Windows, Solaris, UnixWare, Linux, AIX, HP-UX, SVR4, other UNIX systems, VMS, and other system types, including environmental equipment. Operations Sentinel allows on-call operators and administrators to remotely access the ClearPath operational environment. In other words, at 2:00 AM in the morning, the on-call administrator can handle an emergency from home in his or her bathrobe and slippers. The strong automation capabilities of Operations Sentinel saves time, reduces errors, saves resources, and saves money! 26

Unisys ensures 100% code and data compatibility between ClearPath software releases. Unisys also ensures 100% code and data compatibility between ClearPath platforms. This means that theres no need to change ClearPath applications, data, and databases when new systems are purchased or with new software upgrades.
This is a tremendous economical benefit for ClearPath clients. In other environments installing new software releases often requires costly, risky, and time-consuming changes to applications and data. These costs can be significant and are often ignored when TCOs are calculated. Each OS 2200 and MCP system software release includes approximately 150 products. All of the Unisys software is developed, tested, and qualified to function correctly in an integrated manner.

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The Coordinated Unisys Development includes:

Hardware Operating System Compilers Middleware Database Engines Transaction Managers Hardware and software architecture

Firmware
This integrated development and release process brings significant savings to the clients since they are not required to perform complex integrations, saving time, costs, and reducing risks. The Unisys ClearPath integrated development process results in the ClearPath high availability, which is also a major economic benefit to our ClearPath clients.

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ClearPath Cloud: Development and Test is a unique Unisys, enterprise-class, hosted public cloud. Using the ClearPath Cloud: Development and Test offering, CIOs can optimize the allocation of their investments across their ClearPath application portfolio, gain additional flexibility and deliver accelerated functionality to their business.
ClearPath Cloud: Development and Test initiates a new business model for development and functional testing of ClearPath-based applications. This offering enables CIOs to optimize the allocation of investments across their ClearPath application portfolio. ClearPath Cloud: Development and Test augments and extends existing development resources. Whether development is performed on a separate system, a partition, or a shared production resource, targeted projects can proceed faster with lower risk. Through this platform as a service (PaaS), Unisys-hosted public cloud offering, incremental cloud-based development and test resources can be acquired and aligned exactly with project requirements. This offering supplements the clients existing development environment with shortterm access to additional resources as needed.

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Development Blocks provide Fine Grained Adaptability. Leveraging the short term licensing model clients can achieve just the right resource to dedicate to a project. If the scope expands then more time can be added. Clients can start with a smaller level of resources and upgrade as needed. Therefore the ClearPath Cloud can deliver a very high return on investment without excessive resource commitment.
With the inherent flexibility of sourcing projects in the ClearPath Cloud, long capital planning and review cycles can be eliminated. By not taking ownership of assets that have to be depreciated, target projects can be completed quickly. One of the properties of the ClearPath Cloud is the ability to provision multiple independent Virtual Servers which can help in removing roadblocks in the development pipeline. One significant challenge for executives is the ability to create more value from the limited IT budgets available. The ClearPath Cloud helps in many ways. One pathway is to start high cost, high risk projects in the Cloud prior to making major commitments to permanent infrastructure upgrades. This recognizes that many projects fail to gain acceptance leaving companies with an unwanted fixed infrastructure. By progressing the project incrementally initially in the cloud, clients can insure that stakeholders are committed to the long term before making the necessary fixed investments.

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It is highly recommend that you take a few minutes to open and read through the white paper titled, Delivering Value: The Economics of ClearPath Systems. This white paper describes all of the economic benefits of ClearPath systems.
There are two links provided. Click the textual hypertext link to access the document directly from the Unisys Web site. Or, click the information icon to read it from the course folder.

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This white paper is based on a study completed by Wikibon. Wikibon conducted indepth interviews with senior personnel who employ Unisys mainframe integrated stacks. The mainframe systems all supported mission-critical OLTP. Key findings of this study include:
1.CapEx costs of the integrated stacks were higher than open systems, but the software development, operational costs and maintenance costs of the integrated stacks were significantly lower. Overall the cost of a typical mainframe integrated stack mission-critical OLTP system was 19% lower than open systems. 2.Perhaps the most important finding was that the availability and speed of change for the integrated stack was significantly better, leading to potential improved productivity for the end user. About 80% of the total cost to the business are the enduser costs, and small improvements in productivity have significant effects of the overall cost efficiency of the OLTP systems. 3.Wikibon concluded that for performance and security critical OLTP systems that need high levels of availability and business continuance, mainframes are the most cost effective solution in the marketplace. Current users of mainframes should continue to utilize them and expand their usage when new projects require the functionality of mainframes. 4. 32

1.Speed of change was identified by 5 of the 7 participants as a key benefit of the integrated platform. The speed at which they could make changes, test the changes and introduce them into the marketplace gave them a competitive edge in the marketplace. 2.One banking clients efficiency ratio was about 20 basis points compared with an industry average of 50 basis points (50 cents on the dollar). 3.Availability was found to be very high by all 7 of the participants.

4.Six of the seven organizations interviewed believed that the comparative operational (Opex) costs of running the operations of the Unisys mainframe integrated stacks were significantly lower than equivalent open systems that had similar functionality and similar availability designs. 5.All 7 companies used the Unisys metering system, which allows additional hardware to be available to handle peaks (such as month-end, year-end or seasonal peaks) and paid for only as used. With a typical peak-to-average ration of 2:1, this allowed significant lowering of both hardware and software costs of about 30%.

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1.The support costs were much lower for the class of application (mission critical OLTP) being run on the mainframe. For some participants it was difficult to compare support with equivalent systems, but where it was possible to compare costs were 50% to 80% lower. 2.The Unisys mainframe systems almost never went down. If there were problems, they were easy to identify and fix. There are two links provided on the slide. Click the textual hypertext link to access the document directly from the Unisys Web site. Or, click the information icon to read it from the course folder.

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So, what do ClearPath clients have to say about their ClearPath ownership?

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TravelSky Technology Limited is the airspace manager for the country of China, responsible for the reservations, booking, and boarding of all passengers in China. This quote came from a case study.
We have had a strategic business relationship with our Unisys team for more than 20 years, says Mr. Xia Huasheng, general manager of operations at TravelSky. They understand the airline industry and have provided TravelSky with superior solutions and services, so we welcomed their advice on how to enhance our IT capabilities.

TravelSky has realized the following ClearPath benefits:

Agility: Easily supported a 20% increase in peak processing requirements during the Olympics, compared to the average number of transactions per second handled during an active 3-month period in the previous year Availability: Enabled real-time data delivery and secure, continuous business operations for smooth passenger reservations and departure control

Growth: Provides capacity needed to meet double-digit annual traffic growth

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Norwich and Peterborough Building Society is a medium-sized building society in the United Kingdom responsible for supporting mission-critical banking activities.
Expanding our use of the Pay-for-Use business model in conjunction with the improved total cost of ownership of the Next-Generation Server Architecture has improved capacity and capabilities, whilst reducing our costs says Nigel Warnes, N&Ps Technical Services Manager. Norwich and Peterborough have realized the following ClearPath benefits:

Cost: Reduced annual computing costs by 20%

Availability: Developed comprehensive business continuity capabilities continued compliance with Financial Services Authority (FSA) standards and

Future-proof: Implemented a flexible, consistent platform architecture across production, development and disaster recovery environments

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CEDAE is the water control agency for the city of Rio de Janeiro.
We needed web-enablement tools capable of fitting seamlessly into our mainframe environment, reducing complexity, and driving efficiencies, says Roberto Queroy, CEDAEs IT Manager. We also wanted to put more information into our customers hands with greater speed by allowing a secure, direct line between the transactions and data residing on our Unisys ClearPath systems and the Web. CEDAE realized the following ClearPath benefits: Efficiency: Reduced total web management staff by 30% via the use of a more modern web-enablement toolset Simplicity: Replaced the complex intermediate steps previously used to make information available online with a fast, automated process Security: Provided best practices-based safeguards that allow secure access to mainframe transactions and data via the Internet

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EMC (Employers Mutual) is a mid-range business, full-range insurance company located in the United States Midwest.
Rick Gass, senior vice president of productivity and technology sums up the longterm business value of Unisys solutions: The ClearPath Dorado Server and BIS environment has put EMC in a position where we feel we can take on whatever comes to us. Its a true competitive weapon. We get a lot of flexibility with the Pay-for-Use business model, Gass says. The MIPs are in a bucket and can be used as required. When you need more power, you turn up the juice and take advantage of it and when you dont, you back it off and save. Unisys has been there through it all with EMC, recalls Gass. Whenever we run into a new challenge, we know that we can look to Unisys to help us develop a solution.

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ClearPath provides real solutions to business problems. As clearly shown in this module, ClearPath offers not only a stable and reliable computing platform, but they return significant value and offer costsaving solutions.
ClearPath clients appreciate the business and licensing models and the effort- and cost-saving solutions such as Enterprise Output Manager and Operations Sentinel. ClearPath is not just another piece of iron, it is a valued business partner.

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You have reached the end of Module 2.

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