Mainframe Outsourcing

There are many reasons why companies choose to outsource their mainframe. One of the major reasons is economies of scale: cost per unit (e.g. per MIPS or MSU) for hardware and software falls dramatically as the mainframe gets larger.

Similarly, the cost of having the critical mass of specialist skills required to manage a mainframe is high, so it makes sense to be part of an environment where these resources are shared.

However, it is important to remember that outsourcing the work is not the same as outsourcing the responsibility.

Companies choosing to outsource their mainframe still need to be able to follow up on their outsourcer to ensure they are getting what they pay for, and to have a fact-based dialog with the outsourcer about optimization0.

The problem is that companies often end up lacking access to the required data and no longer have the skills to understand that data. They have lost the ability to follow up and the consequences can be expensive.

Recent research shows that most of the companies that have outsourced their IT infrastructure are not satisfied with their outsourcer. In our experience, most of the misunderstandings arise from lack of transparency.

Outsourced mainframe customers often lack transparency into how well their outsourcer manages the mainframe capacity and performance, relative to what is optimal for the customer.

The customer seldom has the data to communicate clearly with the outsourcer on capacity and performance issues. In many cases, the customer doesn’t even have the ability to validate whether the outsourcer is invoicing in a correct manner relative to the contract or if it is done in a fair manner relative to industry ‘best practice’.

With ITBI for z/OS, eventually complemented by Managed Service, SMT Data can help outsourced customers create and keep transparency in their outsourced mainframe environment, thereby achieving the following advantages:

  • Improved relation to the outsourcer.
  • Less resources used on the follow up.
  • Cost saving.
  • Cost avoidance.
  • Performance improvement.

For more information or to request a POC of ITBI for Z, please contact us here. You are also welcome to try our free version of ITBI.

SMT Data offers a specific service to outsourced customers with the objective of:

  • Validating whether the outsourcer is invoicing in a correct manner relative to the contract or in a fair manner relative to industry best-practice.
  • Controlling if the capacity usage (e.g. MIPS) on the invoice matches the measured usage as seen in the SMF Data.
  • Considering any hidden optimization potential and what specific actions the customer or outsourcer can take to achieve savings for the outsourced customer.
  • Evaluating any possible performance issue such as poor response time, and what options are available for addressing the eventual issues.

SMT Data’s 30 years long experience with Mainframe performance and capacity management shows that also in the best run environment it is possible to achieve a better performance at a lower cost.

Read more about SMT Data’s Mainframe Outsourcing Heath-Check service here.