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VOLUME 3 ISSUE 2<br />

closeup<br />

<strong>Micro</strong> <strong>Focus</strong><br />

Contents<br />

Tony Hill wins 'Technology<br />

CEO of the Year' Award<br />

News Update 2<br />

Alnova banks on the<br />

.NET platform<br />

Partner News 3<br />

Announcing <strong>Micro</strong> <strong>Focus</strong><br />

International plc<br />

Feature Article 4<br />

SOLCORP<br />

Customer Success 6<br />

Marketing Calendar<br />

Worldwide Events & Conferences 8<br />

Leading insurance provider estimates it will save more than<br />

$1 million a year by moving its applications and data store<br />

onto Windows-based server.<br />

<strong>Micro</strong> <strong>Focus</strong>, Cratos and <strong>Micro</strong>soft ®<br />

announced that they will work with<br />

Lombard Canada Ltd. to migrate its<br />

mainframe systems to a <strong>Micro</strong>soft<br />

software platform. Over the next 24<br />

months, Lombard will move all its<br />

applications onto a single platform,<br />

earning the company an anticipated<br />

significant return on investment.<br />

"We estimate this project will save us<br />

in excess of $1 million a year, but more<br />

importantly, it will enable us to become<br />

more competitive in our industry<br />

both today and in the future," said<br />

Peter Howling, vice president of IT,<br />

Lombard Canada Ltd. "Part of Lombard's<br />

competitive advantage is directly related<br />

to technology, and this migration will help<br />

us attract and retain the most talented IT<br />

people, who are looking to work with the<br />

latest technology."<br />

SUMMER 2005<br />

<strong>Micro</strong> <strong>Focus</strong>, Cratos and <strong>Micro</strong>soft ®<br />

help Lombard Canada Ltd.<br />

migrate its mainframe systems<br />

to Windows ® platform<br />

Lombard's mission-critical applications<br />

were residing on mainframe systems. With<br />

continuing decline on the ROI of these systems,<br />

the company needed a cost-effective<br />

alternative to replace its aging system.<br />

Following an extensive analysis and<br />

evaluation process, Lombard chose to<br />

move all its core applications, including<br />

financial, off the mainframe and onto<br />

Windows Server 2003 operating system<br />

and SQL Server. Lombard selected <strong>Micro</strong><br />

<strong>Focus</strong> Studio and <strong>Micro</strong> <strong>Focus</strong> Server to<br />

facilitate a rapid and low-risk re-hosting of<br />

mainframe applications.<br />

Recognized migration specialist Cratos<br />

was chosen to provide the necessary<br />

technical expertise, and will continue to<br />

work closely with Lombard to ensure the<br />

successful migration of the mainframe<br />

applications, data, processes and people.<br />

Email all correspondence to the editor via closeup@microfocus.com<br />

continued on page 2<br />

1


News Update<br />

<strong>Micro</strong> <strong>Focus</strong>, Cratos and <strong>Micro</strong>soft...<br />

"Lombard is among a leading group of<br />

companies that want to derive further<br />

value from their COBOL, CICS and JCL<br />

based legacy systems by migrating from<br />

the mainframe to the low cost, high<br />

performance Windows platform," said Ian<br />

Archbell, vice president of product<br />

management, <strong>Micro</strong> <strong>Focus</strong>. "We are<br />

pleased that our collaboration with Cratos<br />

and <strong>Micro</strong>soft will deliver a rapid migration<br />

solution for Lombard, lowering its IT<br />

hardware and software costs, while<br />

increasing its business agility."<br />

"By migrating to the new platform<br />

and running <strong>Micro</strong> <strong>Focus</strong> and<br />

<strong>Micro</strong>soft technology solutions,<br />

Lombard will enjoy the same<br />

end-user functionality with<br />

anticipated reduced development<br />

and deployment costs..."<br />

"We are delighted to be leading the<br />

'Lift and Shift' migration of Lombard's<br />

mainframe systems," said Andrew P. Wickett,<br />

chief executive officer, Cratos Technology<br />

Solutions. "By migrating to the new<br />

platform and running <strong>Micro</strong> <strong>Focus</strong> and<br />

<strong>Micro</strong>soft technology solutions, Lombard<br />

will enjoy the same end-user functionality<br />

with anticipated reduced development<br />

and deployment costs, and achieve an<br />

expected return of investment within less<br />

than 18 months."<br />

"Mainframe customers are facing<br />

several challenges, including a decrease in<br />

available technical skills, shortage of<br />

innovation in the ISV ecosystem, and a<br />

2<br />

"We are working with services<br />

partners like Cratos, and Mainframe<br />

Migration Alliance partners like <strong>Micro</strong><br />

<strong>Focus</strong>, to provide the resources, tools<br />

and education customers need to<br />

achieve a successful migration."<br />

need for increased flexibility. Migrating to<br />

newer technologies delivers the agility<br />

they need to adapt to continuously changing<br />

business requirements at a lower cost,<br />

without sacrificing the scalability, reliability<br />

and security they have come to expect<br />

from the mainframe," said Randy<br />

Lenaghan, director of financial services,<br />

<strong>Micro</strong>soft Canada. "We are working with<br />

services partners like Cratos, and<br />

Mainframe Migration Alliance partners<br />

like <strong>Micro</strong> <strong>Focus</strong>, to provide the resources,<br />

tools and education customers need to<br />

achieve a successful migration."<br />

For more information visit:<br />

www.cratos.ca<br />

Tony Hill wins ‘Technology<br />

CEO of the Year’ Award<br />

<strong>Micro</strong> <strong>Focus</strong> announced that Tony Hill has won the<br />

prestigious 'Technology CEO of the Year' Award at the<br />

UK Technology Innovation & Growth Awards 2005<br />

In just over three years, Tony has taken<br />

<strong>Micro</strong> <strong>Focus</strong> from an 'orphan' division<br />

spun out from Merant, plc (recently<br />

acquired by Serena Software) to a leader<br />

in legacy application development and<br />

deployment on contemporary platforms.<br />

He has also been an industry thought<br />

leader, changing the perception of legacy<br />

IT from that of a liability to an asset.<br />

The judges felt that Tony's visionary<br />

leadership and hands-on approach, combined<br />

with transforming <strong>Micro</strong> <strong>Focus</strong><br />

from a COBOL tools company to a worldclass<br />

leader in legacy modernization, were<br />

decisive factors in the decision to honor<br />

him with the award.<br />

Under Tony's leadership, <strong>Micro</strong> <strong>Focus</strong><br />

has established a strong ecosystem of<br />

partners addressing legacy IT issues, fostering<br />

an environment in which <strong>Micro</strong><br />

<strong>Focus</strong> has developed strong relationships<br />

About CRATOS Technology Solutions Inc.<br />

Cratos, established in 1999, is headquartered<br />

in Oakville, Ontario, a suburb of<br />

Toronto. Cratos is a software solutions<br />

company specializing in international<br />

banking and financial transaction processing.<br />

The majority of Cratos clients consist<br />

of banks and financial institutions who use<br />

the processing software for services such as<br />

Visa ® , MasterCard ® , Eurocard ® , smart cards,<br />

debit cards, other credit cards, store cards,<br />

private label cards and loyalty based<br />

products. Revenues are primarily<br />

generated from large financial institutions<br />

throughout North America, Europe and<br />

Australia. Projects undertaken by Cratos<br />

usually extend from a few months to over<br />

one year in duration.<br />

with industry leaders including CSC, EDS,<br />

HP, <strong>Micro</strong>soft, Oracle and others.<br />

More than 650 guests gathered to<br />

discover the winners of the awards. Now<br />

in their seventh year, the awards are<br />

designed to celebrate the companies and<br />

individuals that have demonstrated the<br />

innovation and entrepreneurial flair that<br />

is vital to the health and growth of the UK<br />

technology industry.<br />

"It is a great honor to receive this<br />

award," said Tony Hill, chief executive<br />

officer, <strong>Micro</strong> <strong>Focus</strong>. "<strong>Micro</strong> <strong>Focus</strong> has<br />

grown beyond all expectations over the<br />

last three years and together with our<br />

partners is helping businesses reduce<br />

costs, increase agility and mitigate risk by<br />

reusing legacy assets. This award reflects<br />

the hard work that the whole company<br />

has contributed over the last three years,<br />

and is a credit to the entire organization."


Partner News<br />

Alnova Financial Solutions<br />

banks on the .NET platform<br />

Alnova Financial Solutions (Alnova) uses Net Express ® to expand<br />

the customer base of its Financial Solutions product suite by<br />

enabling its core retail banking solution to run on the low-cost,<br />

high-performance Windows ® .NET platform, while utilizing<br />

the existing and proven<br />

mainframe-based<br />

assets.<br />

Alnova, one of the solutions in the<br />

Accenture insurance and banking portfolio,<br />

is an end-to-end, modular banking system<br />

designed to provide retail banks with integrated<br />

customer-centric financial services. It<br />

allows financial institutions to solve many<br />

IT issues and to increase service capabilities<br />

and revenues while containing – and often<br />

reducing – costs.<br />

The Project<br />

Accenture observed a growing number<br />

of small to medium-sized banks (those with<br />

up to five million accounts) trying to<br />

compete with larger players while having<br />

to control IT costs and maintain customer<br />

focus. These small to medium-sized banks<br />

needed a flexible and scaleable IT solution,<br />

and Accenture wanted to provide a<br />

product tailored to their needs.<br />

"Only 10 developers had to work on<br />

the project, and some processes<br />

which are normally very time-intensive<br />

and complicated only took a few<br />

seconds..."<br />

Creating a solution from scratch would<br />

have been neither fast nor effective, and<br />

Accenture wanted to leverage its existing<br />

and proven Alnova mainframe-based<br />

system as far as possible. The goal was to<br />

create the Alnova .NET suite of products,<br />

which, in order to comply with maintainability<br />

and cost management requirements,<br />

had to be done by maintaining a<br />

unique business logic source code for any<br />

platform. The bulk of the mainframe system<br />

was written in COBOL, and Accenture<br />

turned to <strong>Micro</strong> <strong>Focus</strong> Net Express to<br />

support the re-use and extension of the<br />

existing Alnova mainframe application to<br />

the <strong>Micro</strong>soft ® .NET Framework.<br />

"We selected <strong>Micro</strong> <strong>Focus</strong> because it was<br />

the most mature compiler we looked at,<br />

with the highest mainframe compatibility<br />

and strong technical support. Our developers<br />

did not have to spend more time – and<br />

money – making changes to our existing<br />

source code,” said Zigor de la Quintana,<br />

alliances manager, Accenture.<br />

Making it work<br />

The existing Alnova mainframe system is<br />

large, consisting of 11 million lines of<br />

COBOL code across 5,500 COBOL programs.<br />

Accenture needed to re-use this business<br />

code while designing and implementing a<br />

contemporary technical architecture.<br />

Performance was also critical, as any<br />

solution for banks with five million or more<br />

accounts must be robust and scalable. The<br />

data access code was preserved to a very<br />

high level because Accenture adopted<br />

<strong>Micro</strong>soft SQLServer using OpenESQL<br />

support with-in Net Express.<br />

"Only 10 developers had to work on the<br />

project, and some processes which are<br />

normally very time-intensive and complicated<br />

only took a few seconds - Net Express<br />

was certainly the most user-friendly and<br />

flexible solution we evaluated," said<br />

Soledad Lahulla, product technical<br />

development director, Accenture.<br />

Accenture selected Net Express because<br />

it was the only solution they evaluated<br />

which included sufficiently strong mainframe<br />

COBOL compatibility. It also allowed<br />

Accenture's programmers to include some<br />

specific features of the Alnova platform<br />

without having to make any changes to the<br />

source code business logic. Only 10 developers<br />

were needed to compile the source<br />

code for the .NET platform.<br />

Using Net Express, Accenture successfully<br />

and rapidly migrated the COBOL core<br />

base of its application to Windows. Following<br />

the initial implementation, Accenture<br />

embarked on a series of large scale benchmarks<br />

to determine and prove the scalability<br />

of the migrated system. Using an 8-way<br />

machine attached by a 24 CPU application<br />

servers farm, Accenture was able to obtain<br />

250 transactions-per-second. This easily<br />

proved the performance and scalability of<br />

the solution, providing more than enough<br />

processing power for the target banks<br />

along with a dramatic reduction in<br />

hardware infrastructure.<br />

Alnova now delivers a large-scale<br />

mainframe COBOL application to a<br />

new and expanded customer base,<br />

with all the advantages associated<br />

with modern, agile business systems<br />

under <strong>Micro</strong>soft Windows...<br />

Winning new customers<br />

As a result of the migration, Accenture<br />

was able to incorporate new features in the<br />

existing system, and to wrap COBOL<br />

business logic using web services technology<br />

to align the solution to a services<br />

oriented architecture (SOA).<br />

Alnova now delivers a large-scale<br />

mainframe COBOL application to a new<br />

and expanded customer base, with all the<br />

advantages associated with modern, agile<br />

business systems under <strong>Micro</strong>soft Windows,<br />

and the Alnova .NET solution has already<br />

won several major customers.<br />

3


Feature Article<br />

Successful IPO in May 2005<br />

Commenting on the results, Tony Hill,<br />

Chief Executive Officer of <strong>Micro</strong> <strong>Focus</strong>, said:<br />

"We are pleased to announce a strong set<br />

of full-year results, building on the<br />

substantial revenue and operating profit<br />

growth the Company has achieved since its<br />

independence in August 2001. We believe<br />

this financial performance is further<br />

endorsement of our technology leadership<br />

and our strong and growing network of<br />

business partners.<br />

As companies around the world seek to<br />

reduce operating cost and become more<br />

agile, so they are increasingly looking to<br />

exploit their investment in legacy IT assets.<br />

By helping our customers manage legacy<br />

more effectively and drive reuse within<br />

contemporary contexts, <strong>Micro</strong> <strong>Focus</strong><br />

unlocks business value. Moreover, our<br />

evolutionary approach comes with much<br />

less risk than alternative strategies based<br />

on wholesale system replacement.<br />

Our business model is continuing to<br />

prove its value. In recent months we have<br />

achieved greater penetration of our target<br />

markets and, following the IPO and the<br />

repayment of debt, we are financially well<br />

positioned to maintain profitable growth<br />

and generate cash. The Company<br />

continues to make good progress and is<br />

well positioned for continued growth in<br />

the year ahead."<br />

4<br />

Announcing:<br />

<strong>Micro</strong> <strong>Focus</strong> International plc<br />

On May 17, 2005 <strong>Micro</strong> <strong>Focus</strong> International plc ("<strong>Micro</strong> <strong>Focus</strong>" or "the Company";<br />

LSE: MCRO.L) announced its maiden preliminary results as a listed company on<br />

the main market of the London Stock Exchange ("the IPO")<br />

"In recent months we have achieved<br />

greater penetration of our target markets<br />

and, following the IPO and the<br />

repayment of debt, we are financially<br />

well positioned to maintain profitable<br />

growth..."<br />

Tony Hill, <strong>Micro</strong> <strong>Focus</strong> CEO and Tracey Pierce, Head of Company Services UK & International, London Stock Exchange.<br />

The <strong>Micro</strong> <strong>Focus</strong> business traces its<br />

origins back to 1976. <strong>Micro</strong> <strong>Focus</strong> Group plc<br />

which was founded in 1983 and had its<br />

ordinary shares listed on the London Stock<br />

Exchange and American Depositary<br />

Receipts quoted on NASDAQ, purchased<br />

Intersolv, Inc. in a share-for-share exchange<br />

offer in 1998 and the combined entity was<br />

named MERANT plc ("MERANT"). In<br />

August 2001 following a strategic decision<br />

by MERANT to refocus its business,<br />

MERANT sold the operations that form the<br />

Operating Company to Golden Gate<br />

Capital, a US-based private equity fund.<br />

Since that time, we have refocused the<br />

business on legacy development and<br />

deployment, what we describe as "unlocking<br />

the value of legacy", a strategy which<br />

has formed the basis of our success over<br />

the past four years.<br />

Our Business<br />

The need for companies to increase<br />

their agility while, at the same time, reducing<br />

costs and minimizing risk has led many<br />

to look for ways to capitalize on their<br />

investment in legacy technology. As much<br />

as 80% of an organization's software<br />

budget may be used to maintain and<br />

operate legacy applications which have<br />

traditionally been too inflexible to<br />

integrate with one another or with newer<br />

technologies. The lower cost of contemporary<br />

platforms combined with technical<br />

advances, such as security, flexibility and<br />

scalability, and the emergence of enabling<br />

technologies, such as Web services and<br />

service-oriented architectures, has driven<br />

many organizations to look for ways to<br />

re-use their legacy investments. It should<br />

be borne in mind that such legacy assets<br />

might be as little as five years old.


Organizations seeking to modernize<br />

their IT infrastructure broadly have the<br />

following alternatives:<br />

• Improve the development infrastructure for<br />

their current applications and platforms by<br />

increasing developer productivity and lowering<br />

development costs. We refer to this as<br />

Leverage and Extend;<br />

• Extend critical legacy applications and services<br />

on current platforms to new internal and<br />

external user communities by using the<br />

Internet and contemporary architectures,<br />

also part of Leverage and Extend;<br />

• Move legacy applications from current high<br />

cost or end-of-life platforms, such as the<br />

mainframe to more contemporary, open and<br />

flexible platforms such as Windows, UNIX and<br />

Linux. We refer to this as Lift and Shift; and<br />

• Replace legacy applications on mainframes<br />

with new packages or new custom-built<br />

applications which run on more contemporary,<br />

open and flexible platforms, such as<br />

Windows, UNIX and Linux, often referred<br />

to in the industry as 'rip and replace'.<br />

Our legacy application development<br />

and deployment software enables our customers<br />

to improve their development<br />

infrastructure, to extend legacy applications<br />

to new users and to move them to<br />

contemporary platforms. We believe that<br />

the high costs and risks associated with<br />

large-scale replacement projects are rarely<br />

viable in today's climate of tight cost and<br />

risk management and are, in most<br />

instances, unnecessary.<br />

Customers and Partners<br />

Our expertise, developed over 30 years,<br />

with a strong record of technology innovation<br />

in legacy development and deployment<br />

solutions has resulted in more than<br />

one million licensed users of our software<br />

around the world. Our customers include<br />

more than 70 of the Fortune Global 100<br />

companies. They include companies which<br />

operate in a wide range of industry sectors,<br />

including financial services, insurance and<br />

government, of varying sizes and over a<br />

wide geographic area. Approximately 49<br />

percent of our turnover is derived from<br />

North America, 38 percent from Europe<br />

and the Middle East, and 13 percent from<br />

the rest of the world. No single customer<br />

dominates. Because our products are<br />

<strong>Micro</strong> <strong>Focus</strong> opens trading at the London Stock<br />

Exchange. (Left to right: Mike Gilbert, Michael Kearney,<br />

Richard Lloyd and Tony Hill).<br />

deeply integrated into our customers' core<br />

IT systems, we have been able to create<br />

and maintain long-term relationships with<br />

them. We sell our software through three<br />

channels:<br />

• Direct customers buy our software to maintain<br />

and operate core legacy business applications<br />

and pay license and maintenance fees<br />

direct to us;<br />

• Indirect customers buy our software and pay<br />

license and maintenance fees through<br />

packaged application providers and<br />

systems integrators; and<br />

• Resellers sell <strong>Micro</strong> <strong>Focus</strong> software in<br />

geographic areas where <strong>Micro</strong> <strong>Focus</strong><br />

does not have a presence.<br />

We have developed a strong platform,<br />

technology, service and application<br />

partner ecosystem to expand our ability<br />

to develop, market and distribute our<br />

products, and to further support our<br />

customers' legacy modernization<br />

initiatives. For example:<br />

<strong>Micro</strong> <strong>Focus</strong> is a member of the IBM<br />

Advanced Partnerworld program. We are a<br />

<strong>Micro</strong>soft ® Gold Certified Partner and a<br />

premier member of <strong>Micro</strong>soft's Visual<br />

Studio ® Industry Partner program. In 2004,<br />

we jointly announced the formation of the<br />

Mainframe Migration Alliance (MMA) with<br />

<strong>Micro</strong>soft.<br />

We founded the Migration and<br />

Transformation Consortium, a global<br />

network of companies which specialize in<br />

modernizing legacy systems with a<br />

combination of our software, specialist<br />

technology and legacy expertise.<br />

Many systems integrators such as EDS,<br />

Accenture and CSC work with us to provide<br />

migration and deployment services which<br />

use our Lift and Shift software to minimize<br />

the risk of moving to a contemporary<br />

platform.<br />

Our application partners offer a range<br />

of packaged applications which feature<br />

the latest technology innovations that can<br />

be implemented across a wide range of<br />

mainframe and contemporary platforms.<br />

Long-term customer relationships have<br />

resulted in a relatively stable stream of<br />

revenue from recurring maintenance fees,<br />

as well as from license fees from packaged<br />

application providers.<br />

Strategy<br />

Our objective is to be the leading global<br />

provider of legacy development and<br />

deployment software. We believe we will<br />

achieve this with the strategies outlined<br />

below.<br />

We will endeavor to strengthen<br />

relationships with existing customers by<br />

promoting our complementary Leverage<br />

and Extend and Lift and Shift solutions. We<br />

believe that opportunities also exist to help<br />

systems integrators develop and deploy<br />

their own legacy applications.<br />

The market for mainframe migration is<br />

expanding rapidly. We have been involved<br />

in more than twenty Lift and Shift projects<br />

since we launched the software in April<br />

2004. We aim to increase awareness of this<br />

product through marketing and by<br />

establishing alliances with large systems<br />

integrators, and software and hardware<br />

vendors, including members of the MMA.<br />

The increasing level of interest from<br />

customers and the growth in the average<br />

size of projects is, we believe, evidence that<br />

the market for mainframe migration<br />

continues to grow.<br />

We aim to increase indirect sales<br />

through packaged application providers,<br />

systems integrators and resellers by<br />

strengthening existing relationships with<br />

key industry players such as Accenture, EDS<br />

and CSC, and by developing new relationships<br />

with other industry leaders.<br />

We intend to continue to focus on selling<br />

software licenses and the associated<br />

continued on page 6<br />

5


maintenance, and to rely on our systems<br />

integrator partners for professional<br />

services.<br />

We will endeavor to continue to<br />

develop innovative technology and will<br />

further invest in expanding the features<br />

and functionality of our technology and<br />

products. We intend to maintain a leading<br />

position in our market for legacy application<br />

development and deployment software<br />

by co-operating with our partners to<br />

expand the coverage of our technologies<br />

and products.<br />

By helping our customers manage<br />

legacy more effectively and drive<br />

reuse within contemporary contexts,<br />

<strong>Micro</strong> <strong>Focus</strong> unlocks business value.<br />

We will pursue selected technologybased<br />

acquisitions to take advantage of<br />

the growing mainframe migration market.<br />

This will enable us to ensure that our<br />

technologies cover all the necessary legacy<br />

and contemporary architectures, platforms<br />

and applications. Any acquisition will be<br />

incremental and will be selected to supplement<br />

existing products and to expand our<br />

customer base.<br />

Outlook<br />

As companies around the world seek to<br />

reduce operating cost and become more<br />

agile, so they are increasingly looking to<br />

exploit their investment in legacy IT assets.<br />

By helping our customers manage legacy<br />

more effectively and drive reuse within<br />

contemporary contexts, <strong>Micro</strong> <strong>Focus</strong><br />

unlocks business value. Moreover, our<br />

evolutionary approach comes with much<br />

less risk than alternative strategies based<br />

on wholesale system replacement.<br />

Our business model is continuing to<br />

prove its value. In recent months we have<br />

achieved greater penetration of our target<br />

markets and, following the IPO and the<br />

repayment of loans, we are financially well<br />

positioned to maintain profitable growth<br />

and generate cash. The Company continues<br />

to make good progress and is well<br />

positioned for continued growth in the<br />

year ahead.<br />

For more information visit:<br />

www.microfocus.com<br />

6<br />

Customer Success<br />

<strong>Micro</strong> <strong>Focus</strong> migrates<br />

SOLCORP's insurance policy<br />

administration system<br />

to <strong>Micro</strong>soft .NET<br />

Founded in 1980, SOLCORP,<br />

a wholly owned subsidiary of EDS,<br />

provides software solutions and<br />

consulting services for the life insurance<br />

and wealth management industries.<br />

SOLCORP's solutions are designed to<br />

help their customers – insurers with<br />

worldwide offices and high policy<br />

volumes – reduce their administration<br />

costs. Ever conscious of their customer's<br />

pressures to respond to business quickly<br />

while reducing IT costs, SOLCORP sought a<br />

way to improve the performance of their<br />

flagship product, INGENIUM ® , and allow<br />

customers the option of standardizing on<br />

the low cost, high performance Windows<br />

platform, rather than having dedicated<br />

servers specifically for their policy administration<br />

systems. According to industry<br />

analyst firm Celent Communications,<br />

SOLCORP INGENIUM "boasts top notch<br />

scalability matched by few competitors."<br />

SOLCORP's INGENIUM is a high-performance,<br />

Web services enabled policy<br />

administration system that scales to highvolume<br />

environments, providing robust,<br />

full-function processing for an extensive<br />

range of life and investment products. It is<br />

available to customers running on<br />

platforms ranging from the high end<br />

mainframe IBM OS/390 to the powerful,<br />

latest Intel-based CPU running on<br />

<strong>Micro</strong>soft Windows.<br />

Challenges<br />

As a policy administration system that<br />

supports the entire lifecycle of a contract<br />

(from the acquisition of new business to<br />

final settlement) INGENIUM contained<br />

over one million lines of proven COBOL<br />

and DB2 mainframe code. Although<br />

INGENIUM was already running across<br />

multiple platforms, many customers felt<br />

Windows was enterprise ready, and SOL-<br />

CORP responded by embarking with<br />

<strong>Micro</strong> <strong>Focus</strong> on a move to re-use, migrate<br />

and benchmark INGENIUM on Windows<br />

and .NET using Net Express with .NET, one<br />

of the products collectively known as<br />

<strong>Micro</strong> <strong>Focus</strong> Studio, to optimize performance<br />

and scalability for deployment on<br />

Application Server, one of the products<br />

collectively known as <strong>Micro</strong> <strong>Focus</strong> Server.<br />

Many customers felt Windows was<br />

enterprise ready, and SOLCORP<br />

responded by embarking with<br />

<strong>Micro</strong> <strong>Focus</strong> on a move to re-use,<br />

migrate and benchmark INGENIUM<br />

on Windows and .NET using<br />

Net Express with .NET...<br />

Solutions<br />

The combination of the Lift and Shift<br />

and Leverage and Extend solutions from<br />

<strong>Micro</strong> <strong>Focus</strong> enabled SOLCORP to provide<br />

customers the best of both worlds with<br />

INGENIUM; it now runs in parallel on both<br />

the mainframe and in the Windows and<br />

<strong>Micro</strong>soft .NET environment, opening up<br />

options and new markets for SOLCORP.<br />

SOLCORP selected <strong>Micro</strong> <strong>Focus</strong> Studio and<br />

Server to help them with the migration


ecause of the high level of support for<br />

mainframe code, focus on performance<br />

and the ease and flexibility of the tooling.<br />

Together, they have achieved performance<br />

and scalability on Windows with<br />

INGENIUM that enables SOLCORP's<br />

customers to deliver high volume,<br />

low-cost products and process large<br />

numbers of new contracts per day.<br />

The cost of Windows hardware and<br />

software provides significant savings<br />

compared to the mainframe,<br />

enabling insurers to drastically reduce<br />

their initial hardware and software<br />

expenses.<br />

Using <strong>Micro</strong> <strong>Focus</strong> Lift and Shift,<br />

<strong>Micro</strong>soft and SOLCORP moved the application<br />

from mainframe DB2 database<br />

architecture to a <strong>Micro</strong> <strong>Focus</strong> Server and<br />

<strong>Micro</strong>soft SQLServer architecture. With<br />

mainframe COBOL dialect support in<br />

<strong>Micro</strong> <strong>Focus</strong> Studio, the migration of the<br />

batch mainframe and DB2 to Windows<br />

and SQL Server involved changes to less<br />

than 100 lines of the one million lines of<br />

COBOL code, while the migration of a<br />

similarly sized online application to managed<br />

COBOL code running under the .NET<br />

Framework was achieved with changes to<br />

less than one percent of the code.<br />

Product Solution<br />

Using <strong>Micro</strong> <strong>Focus</strong> Leverage and<br />

Extend, SOLCORP has been able to deliver<br />

a system that is agile with a high degree<br />

of interoperability with other systems,<br />

and integrate and extend INGENIUM into<br />

the .NET Framework using Net Express<br />

with .NET to provide support for<br />

managed COBOL code. The open design<br />

of INGENIUM.NET means that in addition<br />

to the Web interface, COBOL business<br />

functionality can be accessed through<br />

published API's, ACORD XML and Web<br />

services. Indeed, the architecture of<br />

INGENIUM.NET uses Web services to<br />

invoke the core COBOL based INGENIUM<br />

code from the Java-based PATHFINDER<br />

component. "INGENIUM exposes all of its<br />

functions as Web services, and this ability<br />

to unlock the core COBOL business<br />

processes is invaluable for a contemporary<br />

insurance system. With Web services, we<br />

can provide simplified integration with<br />

customers, distributors and other business<br />

partners," said Steve Eaton, vice president<br />

of marketing, SOLCORP.<br />

Results<br />

The migration of INGENIUM online and<br />

batch processing to Windows and the<br />

.NET Framework using <strong>Micro</strong> <strong>Focus</strong> Studio<br />

and Server was completed with speed and<br />

success. The new version of INGENIUM,<br />

named INGENIUM.NET, was launched in<br />

spring 2005 and has delivered benefits in<br />

terms of lower operating costs, performance,<br />

scalability, agility and flexibility. The<br />

cost of Windows hardware and software<br />

provides significant savings compared to<br />

the mainframe, enabling insurers to drastically<br />

reduce their initial hardware and<br />

software expenses and continue to enjoy<br />

lower costs going forward. "The move to<br />

Windows and .NET has meant lower costs<br />

for maintenance, with very low IT<br />

infrastructure support. There is no need<br />

for specialized mainframe support in<br />

addition to regular Windows desktop<br />

support – which means cost savings and<br />

efficiency for our clients,” said<br />

Todd Haney, vice president of product<br />

management, Strategy and Global<br />

Initiatives,SOLCORP.<br />

"<strong>Micro</strong> <strong>Focus</strong> and <strong>Micro</strong>soft have<br />

helped us position INGENIUM to a<br />

wider range of customers without<br />

sacrificing the security or scalability<br />

we enjoy on the mainframe version..."<br />

INGENIUM.NET brings the same scalability<br />

that the system is known for on its<br />

UNIX and mainframe platforms. Data<br />

access, which is critical to most COBOL<br />

business systems, was a key issue.<br />

SOLCORP, <strong>Micro</strong>soft and <strong>Micro</strong> <strong>Focus</strong><br />

worked closely on ensuring maximum<br />

performance and scalability for data<br />

access including optimizing the behavior<br />

of bulk FETCH/INSERT SQL requests. The<br />

resulting improved performance delivers<br />

multiple benefits including a reduced<br />

batch window, improved resource utilization<br />

and greater online availability.<br />

Following successful benchmarking,<br />

INGENIUM is now able to run an estimated<br />

90 percent of the North American<br />

life insurance market, reaching 2.1 million<br />

policies on 12 CPU machines running<br />

Windows (see figures below) and<br />

positioned to exploit the capabilities of<br />

the <strong>Micro</strong>soft .NET Framework.<br />

CPUs 4 8 12<br />

Policy Processing 700,000 1,400,000 2,100,000<br />

Volume<br />

INGENIUM System Scalability By CPU<br />

"INGENIUM exposes all of its functions as<br />

Web services, and this ability to unlock<br />

the core COBOL business processes is<br />

invaluable for a contemporary insurance<br />

system. With Web services we can provide<br />

simplified integration with customers, distributors<br />

and other business partners,"<br />

said Eaton.<br />

"<strong>Micro</strong> <strong>Focus</strong> and <strong>Micro</strong>soft have<br />

helped us position INGENIUM to a wider<br />

range of customers without sacrificing the<br />

security or scalability we enjoy on the<br />

mainframe version, which many of our<br />

customers continue to use. It truly is the<br />

best of both worlds," said Blair Goulet,<br />

senior vice president, Strategy and Global<br />

Initiatives, SOLCORP.<br />

7


Workshop Marketing Calendar<br />

<strong>Micro</strong> <strong>Focus</strong> recently held two workshops<br />

at Southern Methodist University,<br />

Dallas, TX and Loyola University, Chicago,<br />

IL. The workshops were designed for IT/IS<br />

teaching faculty to upgrade their skillsets<br />

with the latest COBOL .NET technology.<br />

The workshop host was a well known<br />

lecturer and author of COBOL books,<br />

Wilson Price. His latest book 'COBOL and<br />

.NET' is available bundled with <strong>Micro</strong><br />

<strong>Focus</strong> Net Express with .NET.<br />

Attendee responses were overwhelmingly<br />

positive. "This kind of support from<br />

<strong>Micro</strong> <strong>Focus</strong> is critical to higher education.<br />

Will Price did an excellent job and the<br />

workshops benefited from the guest<br />

speakers, especially Mr. John Billman of<br />

<strong>Micro</strong> <strong>Focus</strong>. Also the presence of<br />

Paul Halpern from <strong>Micro</strong> <strong>Focus</strong> helped<br />

explain the Academic Grant Program to<br />

the attendees. These workshops help<br />

faculty keep current with the latest IT<br />

technologies, in particular the new world<br />

of legacy programming,” said Professor<br />

Ronald Kizior, Loyola University.<br />

<strong>Micro</strong> <strong>Focus</strong> speaker, John Billman,<br />

product director of Net Express and<br />

Japanese products, discussed legacy applications<br />

and why they are important assets<br />

to organizations. He raised the importance<br />

of training students to work in this<br />

new COBOL legacy environment.<br />

8<br />

Programming legacy<br />

for the 21st century:<br />

Academic faculty workshop<br />

a resounding success<br />

IBM speakers, Bill Seubert, zSeries software<br />

IT architect and Paul Newton, senior<br />

software engineer, spoke about the IBM<br />

Academic Initiative which offers open<br />

standards/source, IBM technologies and<br />

educational resources to help faculty and<br />

students stay current with the IT industry.<br />

<strong>Micro</strong>soft speakers, Mike Wons,<br />

technology strategy director, spoke about<br />

mainframe migration status and<br />

Spyros Sakellariadis, migration alliance<br />

director, discussed the Mainframe<br />

Migration Alliance (MMA) and the significance<br />

of mainframe migration to the IT<br />

community.<br />

<strong>Micro</strong> <strong>Focus</strong><br />

training<br />

educate • explore • experience<br />

Get ahead with <strong>Micro</strong> <strong>Focus</strong> Training!<br />

For more information visit<br />

www.microfocus.com/training<br />

North America<br />

September 12-15<br />

HP Technology Forum<br />

www.hptechnologyforum.com<br />

September 18-21<br />

Serena XChange 2005<br />

www.serenaxchange.com<br />

September 18-21<br />

Credit Directions Conference<br />

www.cgi.com/cgi/html/event/creditdirections2005/<br />

home.shtml<br />

October 17-20<br />

Gartner ITxpo<br />

www.gartner.com/2_events/symposium/<br />

worldwide.html<br />

Lift and Shift Migration Events<br />

September 15 - Montreal<br />

September 20 - Toronto<br />

September 27 - Dallas<br />

September 29 - Philadelphia<br />

Australia<br />

August 30 - September 2<br />

<strong>Micro</strong>soft Tech.Ed<br />

www.microsoft.com/australia/events/teched2005/<br />

default.aspx<br />

November 15-18<br />

Gartner Symposium ITxpo<br />

www.gartner.com/2_events/symposium/2005/<br />

ps13.jsp<br />

France<br />

September 9 - Cobol@Work<br />

Thème : COBOL, J2EE et NET<br />

September 20 - Journée de présentation<br />

Thème : Migration des applications<br />

Mainframes en partenariat avec<br />

September 23 - Tune In To Cobol<br />

Thème : Web Services & SOA<br />

October 7 - Cobol@Work<br />

Thème : Migration Mainframe<br />

October 21 - Tune In To Cobol<br />

Thème : Cartographie et Analyse des<br />

applications COBOL<br />

For a complete listing of our worldwide events,<br />

visit us at www.microfocus.com/events<br />

WWNLCLSU0805

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