Kinder Morgan AT&T Story

Question 1

Simplicity is Bliss In 2014 KM underwent a significant of its business structure. As your leadership said in Shareholder Letter 2014 “ Change is an Opportunity” May I suggest that equally applies to IT. Iv’e heard some say it’s akin to chenging a tire on a moving car!

Industry leaders say:

Answer 1

80% of existing apps will have to be modernized within the next 6 years as they will no longer be relevant to the business or affordable.

2 out of 3 CIOs say their applications portfolios aren’t aligned to their business strategy

2 out of 3 CIOs don’t know the true breakdown of costs of running their portfolios

50% of all CIOs don’t have the expertise, resources or budget to modernize their applications

60% of all CIO’s admit they lack the right strategy to transform their organization’s portfolio

Question 2

Change

Answer 2

Business demands for new technology, new processes and new functionality require constant adaptation of existing enterprise application portfolios — new solutions, new delivery models, new strategies. Yet continuous cycles of change are disruptive and require harmonizing the “old” and the “new.” This entails a transition from a mindset that presumes a linear view of applications and supporting services (design-build-run) to a full life cycle view to accommodate change (design-build-run-modernize and start again). Application modernization is the “glue” that enables this link and sustains the impact of the constant cycle of change in application portfolios.

Question 3

Cost

Answer 3

Organizations’ focus on cost of IT operations is a top imperative. Tight budgets accentuate this challenge. High costs associated with managing legacy applications, the failure to optimize existing applications, and the imperative to rationalize sprawling application portfolios are just some of the key targets that application modernization initiatives address in organizations’ ongoing cost takeout goals

Question 4

CORE Systems

Answer 4

The “legacy” applications run the business and cannot be ignored. At the same time, adopting new technologies is a competitive necessity for business growth. Not only must core systems perform needed functionality and business processes, but they must also enable new functionality. Application modernization ensures that core systems are optimized, do not impair competitiveness and remain vital to business goals.

Question 5

CONTROL

Answer 5

Gaining control of enterprise application strategies and the life cycle to support, maintain and optimize enterprise application portfolio is a business best practice. Without a focus on application modernization, this best practice — being in control — is not possible. Few organizations have the internal skills and expertise, as well as the needed tools, vision, or objectivity to carry out application modernization initiatives effectively and efficiently.

Question 6

ATT Challenge

Answer 6

• Improve IT service provided to business customers
• Reduce operational costs and achieve agility
• IT environment of over 170 billing applications, nearly 30 mission-critical platforms: HP-UX, Linux, IBM mainframes and Solaris.
• Get to common environment for all applications

Question 7

SOLUTION

Answer 7

• CSC’s Migration Services re-factored legacy applications from COBOL to Java at scale
• CSC helped AT&T migrate their application portfolio to an AT&T cloud infrastructure

Question 8

RESULTS

Answer 8

• Mission-critical upgrades completed
• Cloud-enabled applications for Linux deployment
• Operating expenses lowered
• AT&T can easily deliver new features on its billing platform
• Modernization program on track to reduced infrastructure by 50% saving $billions over the next 5 years

Question 9

In Summary

•INCREASED Market Agility and Responsiveness

Answer 9

REALIZE
CLOUD BENEFITS

Enable existing application investment to operate in and receive business benefits of cloud computing

TIME-TO-MARKET

Re-architect applications using modern languages and platforms to accelerate market responsiveness

EMPOWER BUSINESS

Modernized applications can more quickly adapt and respond to the demanding requirements of the business

Question 10

•IMPROVED ROI and Cost Control

Answer 10

EXTEND LIFE OF IT ASSET

Extend the investment in existing application portfolio and unlock business functionality for new access models

TRANSFORMATION COSTS

Clients are provided with predictable costs for transforming legacy applications to run in the cloud, which are also lower than other alternatives

OPERATING COSTS

Replace expensive or obsolete operating platforms or languages that are costly and difficult to maintain

Question 11

REDUCED Business and Operational Risks

Answer 11

STANDARDS ADHERENCE

Migration of applications in accordance with an overall enterprise architecture

TALENT CONSTRAINTS

Remove dependence on scarce programming language skills or application knowledge

MITIGATE UNCERTAINTY

Manage expectations associated with time-to-value in realizing benefits of cloud computing.