Application Modernization: Preserve and Modernize to Prepare for the Organizational and Technology Challenges that Lie Ahead

Modernization: Preserve and Modernize to Prepare for the Organizational and Technology Challenges that Lie Ahead Brad Tagg and Chase Crowson September 10, 2013

Legacy Modernization on the CIO Agenda 2013 Gartner CIO Agenda Report CIO technologies Ranking of technologies CIOs selected as one of their top 3 priorities in 2013 Ranking 2013 2012 2011 2010 2009 Analytics and Business Intelligence 1 1 5 5 1 Mobile Technologies 2 2 3 6 12 Cloud Computing (SaaS, IaaS PaaS) 3 3 1 2 16 Collaboration technologies (workflow) 4 4 8 11 5 Legacy Modernization 5 6 7 15 4 IT Management 6 7 4 10 * Customer Relationship Management 7 8 18 * * Virtualization 8 5 2 1 3 Security 9 10 12 9 8 ERP s 10 9 13 14 2 *Not an option that year Source: 2013 Gartner CIO Agenda Report http://www.gartner.com/imagesrv/cio/pdf/cio_agenda_insights2013.pdf 2013 Unisys Corporation. All rights reserved. 2

I T S M The Evolution of Your Portfolio Current State Future State Multi-Dimensional Analysis Customized COTS Customized s Standardized COTS Workloads Dedicated Hardware Standardized Compute and Storage Fabrics Infrastructure Proprietary Standard and Software Defined Configurations Private Cloud PaaS IaaS SaaS I T S M 2013 Unisys Corporation. All rights reserved. 4

Modernization Challenges Capturing Unlocked Future Value Modernization can extract new and unanticipated returns from legacy investments Difficult to forecast and quantify such returns while making investment proposals Shortening Technology Lifecycles Consumer IT is moving so fast that enterprises are constantly playing catch up New devices, apps and social networks keep flooding the market Long Running and Costly Implementations Nice to have features accumulate into modernization projects tending to span 3-5 years With shortening budget cycles, margin for error of failure is decreasing. Perception as Cost vs. Innovation Enabler Need to portray modernization as an innovation driver rather than maintenance ROI perspectives often lacking in projections 2013 Unisys Corporation. All rights reserved. 5

Modernization Journeys Business Knowledge Modernization Journey Business Domain IT Domain As-Is Business Model New Business Needs Functionally-Equivalent Redesign Journey SOA Enablement Journey Language-to-Language Translation Journey To-Be Business Model As-Is s Re-hosting Journey Maintenance Journey To-Be s Portfolio Management & Strategy 2013 Unisys Corporation. All rights reserved. 6

Technical Maturity SOA Maturity Model Assess Technical esoa and Operational esoa maturity levels to provide a starting point (as-is) and target destination (to-be recommendation) Operational Maturity 2013 Unisys Corporation. All rights reserved. 7

A Pragmatic Approach: Systematic and Incremental Incremental, Multiple Modernization Journey Approach What are the barriers to modernizing your applications? Business Transformation Goals and Strategies We can't get budget approval for the program 45% 55% As Is Current State Needs Not Met IT Modernization on all Layers Apply multiple modernization journeys over time directed by a comprehensive portfolio management process To Be Future State Needs Met Business Managers don't want us to to touch their applications We have been unable to make a business case We lack the technical knowledge to modernize 37% 30% 23% 63% 70% 77% We lack the business knowledge to modernize 20% 80% Continuous Asset Management Loop Base: 182 IT decision-makers TRUE FALSE Source: A commissioned study conducted by Forrester Consulting, March 2013 2013 Unisys Corporation. All rights reserved. 8

Impact of Disruptive Trends on Modernization Cloud Computing Unlock potential of cloud computing to fuel business growth Empower business with enterprise intelligence for competitive advantage Big Data/Smart Computing Consumerization of IT/Mobility Give business the flexibility to innovate and connect with employees, partners and customers Interact with applications, social, data and engage with people in real time Social Computing Disruptive IT trends open the doors of opportunity for delivering greater business value through modernization 2013 Unisys Corporation. All rights reserved. 9

Characteristics Actions Cloud/SaaS Enablement Phase 1 Phase 2 Phase 3 Phase 4 Increase Marketability by Cloud Enablement Addressing Extensibility & Maintainability Efficient Adaptability to the Marketplace Large Customer Base & Full Multitenant Construct Common Platform Catalog Move to Cloud Feasibility Analysis Extension for UI Modernization and Mobile Common Component Libraries Common Accounting Service Library Move to Standard SOA Rules Engines Incorporated BPM / BAM and Service Orchestration Dynamic Assembly Catalog Services for Network and s Full Self-Service Isolated Business Line Driven LOB Platform Specific Secure Infrastructure Mixed Monolithic and Tiered Architecture Specific Data Solution Virtual Machine Image Design and Deployment Common Database Servers Standard Security Agile Development Methods Standard Development Environment Operational Characteristics Exposed Componentized Business Functions Common Governance Processes Component Based Development Component Architecture BPM & BAM Services Orchestration SOA Governance Service Oriented Modeling for Infrastructure Process Integration via Services Virtualized Data Services Virtual SOA Environment: Sense and Respond Rules Engines Advanced Security Model Business Capabilities via Context Aware Services Governance via Policy Business Process Modeling Dynamic Assembly Dynamically Reconfigurable Architecture Semantic Data Vocabularies Context-aware Event based: Sense and Respond Move to Cloud Progressive Levels of SaaS Modernization Paced by ROI 2013 Unisys Corporation. All rights reserved. 10

Unisys Services Portfolio Advise Cloud Computing Advisory Services Mobility Assessment Services Implement Intelligent Assessment ClearPath Advisory Services Big Data/Smart Computing Development Security Integration Testing Services ClearPath Development Consumerization of IT/Mobility Modernization Modernize Modernization Platform as a Service ClearPath Modernization Services Social Computing Manage Managed Services ClearPath Managed Services Embracing Disruptive IT Tends to modernize mission-critical applications in a timely and risk-averse manner 2013 Unisys Corporation. All rights reserved. 11

Unisys Modernization Approach Leveraging Disruptive Technologies Unisys Modernization Solutions assist clients in strategically prioritizing and delivering modernization initiatives that protect existing investments in enterprise applications while leveraging disruptive IT trends Unisys Hybrid Enterprise Recommendation: Modernization of business applications using key enabling trends, as opposed to costly and risky rip and replace, can significantly improve project success rates while providing a superior return on investment with a fraction of the implementation risk We focus on modernizing mission-critical business applications to extend the life of existing investments - as opposed to costly and high risk rip-and-replace initiatives 2013 Unisys Corporation. All rights reserved. 12

Modernization Platform as a Service (AMPS SM ) AMPS SM is a modernization solution using a service oriented approach. AMPS SM is a comprehensive combination of: Patent pending methodology Skilled architects (COEs) Software stack Cloud or on-premise subscription license model Value-added Software customizations AMPS SM enables: Faster time to benefit Information sharing across the enterprise Reduced cost of development Increases value and improves existing legacy systems Standardization across enterprise AMPS SM is attractive to organizations needing flexibility, agility, or are embarking on strategic business transformations. AMPS turns operations and maintenance into operations and innovation Confidential 2012 Unisys Corporation. All rights reserved. Page 13 2013 Unisys Corporation. All rights reserved. 13

ClearPath Modernization Services ClearPath Modernization solutions allow our ClearPath customers to exploit newer technologies while at the same time leveraging their investments in ClearPath s mission-critical application performance and reliability Model driven, visual development tools Unisys ClearPath modernization program allows our ClearPath customers to modernize their mission-critical ClearPath applications in a noninvasive way without the high cost and risk of ripand-replace Contemporary development environments Open-standards based integration appliances Web / SOA integration Java Integration Mobile enablement Enterprise Messaging Java Platforms Smartphone Integration Dedicated appliances for open standards based integration JProcessor eportal Agile Business Suite QProcessor eportal Next Generation Intel based servers with virtualization Enterprise Integration Web / SOA Integration Unisys provides contemporary Web, SOA, mobile, Java and.net solutions built on open standards while leveraging the mission-critical performance, security and reliability attributes of ClearPath 2013 Unisys Corporation. All rights reserved. 14

Unisys Mobility Solutions Mobile Solutions for Business Mobile Environment Management Mobile Enablement & Development Mobile Infrastructure Mobile Security Mobile Assessments & Consulting Enabling People Computing Unisys Mobility Solutions simplify enterprise mobility with an integrated solution designed to address business concerns and make people more effective by enabling companies to: Gain Insights and Control Business and operational insights help you securely manage mobile resources while identifying areas of inefficiencies Mobilize Information Improve employee productivity through enabling mobile access to existing enterprise or new applications Be Enterprise Agile Meet the demands of the mobile enterprise with reliable, secure, and agile processes and resources that support the growth and demands of mobile business 2013 Unisys Corporation. All rights reserved. 15

Unisys Managed Services Unisys Managed Services Enterprise Apps Custom Apps Business Analytics Management Secure Projects Lifecycle Management Flexible Resourcing Program & Service Management infrastructure: networks, data access, storage 2013 Unisys Corporation. All rights reserved. 16

New Zealand Transport Agency Develop a Mission Critical Modernization Roadmap Business Issue: The New Zealand Transport Agency (NZTA) wanted to modernize its IT infrastructure to increase the agency s flexibility and reduce its IT operational costs. Importantly, it needed to continue to deliver uninterrupted services to citizens during the migration. Unisys Response: The NZTA engaged Unisys to develop a Business-Critical Modernization Roadmap and conduct an IT modernization program. Unisys implemented a Windows-based Unisys ES7000 and ES3000 platform running Unisys Agile Business Suite and migrated the agency s Driver and Vehicle Registry system, containing more than 1.7 billion records. By modernizing rather than rebuilding this system, the NZTA avoided up to NZ$80 million expenditure and has significantly reduced the time it takes to incorporate legislative changes. The agency improved system response times by up to 40% and expects to cut its annual IT maintenance and operational costs by approximately 26%. It has also eliminated the risk of operating unsupported IT products. Benefits and Results: Reduced costs: Avoided up to NZ$80 million expenditure by modernizing rather than replacing systems and expects to cut annual IT maintenance and operational costs by 26% Improved customer services: Provided platform to begin developing new mobile and online channels, such as a mobile application that allows drivers to pay tolls using their mobile device Eliminated technology risk: Ensured the project was completed before legacy IT products reached end-of-life Improved transaction times: Cut the time it takes to retrieve or update data by 30% to 40% 2013 Unisys Corporation. All rights reserved. 17

US State Government Agency Enable Business Transformation Through SOA Services Business Issue: A US State Government Agency responsible for supervising programs that provide assistance and support to eligible families and individuals needed to meet an immediate regulatory change for an external data exchange requirement. Due to a portfolio of inflexible legacy applications and poor integration/ communication across these applications, agency was unable to easily address the rapidly changing regulatory environment and growing constituent needs while reducing costs. Unisys Response: Stand up a joint Unisys/Client Center of Excellence Provide organization change management and introduce strategic foundation/governance elements Introduce SOA Governance Technology (SOA Software) Execute on business driven modernization projects Develop the strategic foundation Benefits and Results: Identifying low risk, highly visible modernization projects to demonstrate initial successes Providing experienced SOA resources and Providing a proven methodology that the joint team can organize around 2013 Unisys Corporation. All rights reserved. 18

Large European Financial Institution Reduce risks and create a path for innovation by migrating legacy systems Business Issue: The customer needed to modernize their mission critical legacy Mid Office Mortgage processing solution to reduce risk of depending on an unsupported product and to allow for future innovations and alignment with the changing IT environment. The legacy application also had a significant impact on downtime, incase of downtime. Unisys Response: The customer contracted Unisys to modernize the legacy Mid Office Mortgage processing solution to a modern future proof solution. Unisys accepted all risks in the project by offering fixed price and fixed time combined with an off shore model and accepting ambitious acceptance criteria while minimizing impact on the customer s organization. Benefits and Results: Delivery within a short timeframe thereby reducing the business freeze period to a minimum. Delivering 95% better quality than market reference, resulting in an easy acceptance process. A supported and modernized future proof and maintainable solution. Easier alignment with the ever changing IT environment allowing for innovation and reducing cost. 2013 Unisys Corporation. All rights reserved. 19

Companhia Estadual de Águas e Estogos (CEDAE) Mobile Modernization through ClearPath eportal Business Issue: CEDAE wanted to improve customer services by putting more information into the customers hands with greater speed. The client wanted to provide its increasingly mobile customer base with direct online access to the company s services. But the existing back-end technology created cumbersome administrative processes and limited the speed with which updated data was published to the web. Unisys Response: Unisys addressed the above problems in the form of the ClearPath eportal solution that streamlined posting of data from an Enterprise Server Database (DMS II) on the ClearPath system to the Web and enabling mobile access. Our ClearPath eportal technology modernizes mission-critical applications without altering the applications for simplified access to services from the latest mobile devices. Benefits and Results: CEDAE customers pay bills anywhere using their smart phones Using their smart phones, the utility s customers can access a secure Web portal that displays a barcode for their bill Optical readers read the barcode from the smart phone screen and transmit the payment through the banking network, without requiring the customer to print a payment receipt Solution also allows CEDAE customers to view electronic proofs of payments and their payment history 2013 Unisys Corporation. All rights reserved. 20

How Can We Help You Get Started? Starting Points And The Lifecycle Advisory Implementation Modernization Management Identification and Prioritization of Modernization Opportunities & Roadmap Development Development, Testing, and Integration of COTS, Custom and ClearPath s Modernization and Modernization Platforms as a Service Management for COTS, Custom, and ClearPath s Irrespective of your starting point or your current relationship with Unisys, we can help you modernize and transform your portfolio of complex, mission-critical business applications 2013 Unisys Corporation. All rights reserved. 21

Why Unisys We are focused on getting best value from current applications while mapping a way forward not just rip and replace Unparalleled experience in high volume, mission-critical industry applications We have a global capability to deliver most cost-effectively Over 30 years of Services Experience Industry and Solution Domain Advantage - Experience that reduces risk. 40 Telcos, 22 of the top 25 banks, 1,500 government agencies High Volume Mission Critical Experience - over 150m voice mail users worldwide, 115m Brazilians votes, world s largest RFID system Pre-integrated Modernization Frameworks Unique 3D-Blueprinting modeling and design approach and over 18,000 prebuilt industry process models 7 CMMI level 5, 4 and 3 Centers Experience in modern application technologies & platforms including JAVA,.NET, Open Source, Unisys, IBM, Windows, UNIX, & numerous legacy technologies. 2013 Unisys Corporation. All rights reserved. 22

Related Sessions Wednesday 8:00 AM 8:50 AM Services: IT Wants to Say Yes by Annamarie Smith-Butz to learn more about Managed Services 9:00 AM 9:50 AM Mobility Solutions in the Evolving Workspace by Darren McGrath to learn more about mobile application enablement and new development 11:00 AM 11:50 AM From IT Administration to Business Innovation! by Isaac Levy to learn more about ClearPath Modernization 3:00 PM 4:00 PM ClearPath Session: MCP Guru Series: Modernization by Ralph Deyoreo to learn more about how eportal is being used to modernize ClearPath MCP applications 2013 Unisys Corporation. All rights reserved. 23