Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.ibd From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: Computers & Automation Date: Wed, 11 Nov 92 12:52:31 EST Message-ID: <3.1992Nov11.125231@AmeriCast.com> 11/11/92 TITLE Computers & Automation Systems Automation Tools Can Help Mainframe Users In Tough Times Ted Bunker In New York Holding down operating expenses has always been an issue for American Airlines' Dalton Wiley, but in recent years, as he puts it, there's been "a renewed interest in cost controls." So AMR Corp.'s American, like many other mainframe computer users, em- ploys systems-management automation tools to make their opera- tions more efficient. "We do it because we want to make some mo- ney, and that's been hard to do in our business for the past few years," Wiley said. As managing director of computing Computers & Automation systems, Wiley is responsible for planning and development for American's Sabre#m#cq#m# reservation system, among other things. Systems automation tools help United Telecommunications Inc.'s Sprint unit keep its 14 mainframes on-line and available around the clock, according to Larry Judy, a group manager who is responsible for automation in Sprint's four data centers. These tools are software programs that, for instance, monitor system performance and automatically identify potential problems before they occur and stall a machine or a network. Tools sup- plied by Legent Corp., Candle Corp., Boole & Babbage Inc. and Computer Associates International Inc. help mainframe operators cut costs and improve performance. In some cases they help pro- long the useful life of systems, allowing firms to defer capital outlays for new hardware or other upgrades. "Users want to main- tain the life of those systems," said Pat McBride, an analyst with Meta Group, a consulting and market research firm. McBride says users accomplish several aims by automating systems manage- ment. First, they improve the performance of their older machines, allowing them to handle growing demand for processing power. Second, they cut operating costs by decreasing the staff time needed to manage systems. By accomplishing all this, auto- mation tools allow companies the freedom to move applications onto smaller, more cost-effective computers, McBride says. Scru- tiny of new hardware investments has intensified during the last few years at Visa International. That, in part, is driving in- terest in automation tools like those offered by Legent and the others, according to Earl Harper, automation group leader for the credit card company. But, he said, "We've always been trying to get more out of our mainframes." By using products like Legent's OPS and AutoMate automation tools, Harper says Visa has reduced system outages and the time it takes to recover when an outage does occur. "That's where you improve the effectiveness of the system," Harper said. Outages can freeze applications and operations, destroy or send astray critical data and cause headaches among fellow employees and cus- tomers. John F. Burton, Legent's president and chief executive, says such concerns are driving double-digit growth for mainframe software, even as growth in demand for the big machines them- selves has cooled. Systems-management automation tools "allow you to use a mainframe longer," he said. Legent is considered a leading vendor of automation tools. Among the 130 such products Legent offers are programs that expand the data-storage capacity of disk drives, automate tape-library management and monitor sys- tems performance. They also enhance security, enable several systems to be managed from a single workstation, and provide ways to account for computer use so that systems-management groups can bill other units for processing time. Resource management is a big part of Legent's business, according to Scott Smith, an analyst for Donaldson, Lufkin & Jenrette Securities Corp. Legent's leading product in that area, Management Information and Control System, or MICS, by Smith's estimate accounts for 10% of the company's revenue. MICS is a monitoring program that creates a database detailing a data-center's operations. It features modules to track and record the function of specific systems, like International Business Machines Corp.'s CICS, a transaction processing program, and IBM's MVS, an operating system. MICS also has components to enable managers to track and record systems use and take advantage of that information to charge users for pro- cessing time. Mainframe users appear to be making some headway in their efforts to economize. Citing estimates by Computer Intelligence, a market research firm, Smith said the number of mainframes in use in the U.S. has declined 12% since 1989, while the number of mainframe-equipped data centers has dropped 9%. He says surveys indicate that 40% of large corporations either are consolidating their data centers or have recently completed a consolidation. Because of that shrinkage, growth has cooled in the market for large- system software, to about 10% from as much as 30%, which was common to the 1980s, Smith says. He estimates the size of the systems software market to be $14.79 billion in 1992, with IBM, Computer Associates and Legent the three market leaders, with shares of 78%, 12% and 3% respectively. That market could double in value over the next five years, yielding a 15% to 18% growth rate, Smith says. Much of that, in Smith's view, will come from demand for systems automation tools. Users like Harper, Judy and Wiley will always be on the lookout for those cost-saving tools. And they all expect mainframes to play a critical role in their systems over the long-term. This article is copyright 1992 Investors Business Daily. Redis- tribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM