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The Business Case

For CloudFrame
July 30, 2021

“ It is not enough to modernize to an application on the cloud,

you need to modernize to a Cloud Application.

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Business Case Overview

Reality: business evolution is not slowing down especially in terms of velocity or volume.

Objective: to reduce costs, achieve business agility, infrastructure resiliency, and cloud readiness.

Measuring Business Value

- You can implement successfully and sustainably
- Your customer and partner ecosystem demands
- Your team is excited about creating.

Results Matter:
- Reduce technical debt
- Reduce costs 75% compared to mainframe
- Converge on Enterprise DevOps
- Improve ‘time to market’
- Modernize applications in ¼ the time
- Recoup investment within 12 months.

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Business Case Overview

Mainframe to Modernized 12-Factor Java Application Business Case — Six Main Elements

Strategic Context Obstacles Economic Analysis Strategic Goal Risks Big Picture

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Business Case Findings

• MONI is a top-10 MIPS consumer

Strategic Context for • MONI is predominantly batch

• MONI is mature
the Application • MONI is not a core business application
Modernization • MONI is fairly-well isolated
• MONI data is not transactional.

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Business Case Findings

Options for MONI Modernization

Modernize to 12-Factor
Do Nothing Reduce MIPS
Java Application
Not acceptable! Cost savings only! Reduce technical debt,
improve time to market,
converge on Enterprise
DevOps, reduce costs.

RECOMMENDATION

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Renovate
Automated transformation from COBOL to Cloud Native Java,
refactored and optimized into the Spring Boot framework. Renovate
solves Java code quality concerns using rules-driven refactoring to
consistently achieve SonarQube “A” rating, and 100% runtime
functional and data equivalency.

1 2
Modernize COBOL
Applications To Innovate Your
Business
Modernize COBOL to Java Spring
Boot SonarQube “A“ rated code
adhering to 12 Factor Application
Principles. Cloud Native solutions for
JCL, SORT, VSAM.
Higher Project Success
Rates by Reducing
Complexity and Risk
CloudFrame’s automated migration, test
case generation, and backward
compatibility to data and integrations,
increases certainty of successful
outcomes, on time, on budget.
3
4X Faster Path to Cloud
and Cloud Native Services
COBOL applications can be moved
to public or hybrid Clouds up to 4X
faster to accelerate adoption of
Cloud Native services.

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Business Case Findings

Application • No in-house subject-matter expertise

• MONI was written 15+ years ago
Modernization — • Tightly coupled legacy dependencies
Obstacles & Constraints • 5,469 unique jobs runs across D-W-M cycles
• 1,069 JCL SORTs, 239 unique
• ~3,500 distinct datasets
• 2TB of pre-relational data
• 80 COBOL programs, 60 batch, 20 CICS
• 8 E-Ztrieve reports.

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Business Case Findings

Approach Options using CloudFrame Renovate

APPLICATION DATA
OPTIMIZATION
MODERNIZATION MIGRATION

HORIZONTAL APPROACH

Organize workstreams to deliver end to end modernized code and data

organized and optimized by business function.

VERTICAL APPROACH

Organize workstreams to deliver end to end modernized code, then

migrated data, then optimized by business function.

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Business Case Findings

Tradeoffs
HORIZONTAL APPROACH VERTICAL APPROACH
Best for independent workloads where business Best for integrated workloads with business value
value is realized with units of delivery; e.g. CICS realized only with complete modernization; e.g.
transactions. batch jobs and subsystems.
PROS PROS
• Iterative delivery in End-State Architecture • Fastest path to modernization and cloud migration
• Factory scalable approach • Factory scalable approach

CONS • Lowest risk, simple ‘Change Data Capture and

Compare’ regression testing in Phase I for complete
• Higher risk
application
• Exponential testing complexity
CONS
• Requires lead time for SME business process and data
optimization workstream • Elongated delivery of End-State Architecture
RECOMMENDATION

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Business Case Premise

Step 1 —Parallel Production Pilot using Horizontal Modernization Approach.

Create a MONI Pilot deployment using CloudFrame Renovate™, stage binary data.

Step 2 — Data Re-architecture.

Decouple mainframe dependencies, migrate data to UTF8, source data from PADT.
Pilot for 90 days, cutover, decommission MONI mainframe application and data.

Step 3 — Optimization.
Optimize MONI for ‘Cloud Economics’ in Morgan Stanley’s choice of infrastructure.

© Copyright 2021 CloudFrame, Inc. All Rights Reserved.

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Business Case Findings

• Reduce technical debt

• Reduce costs 75% compared to mainframe
Economic Analysis • Improve ‘time to market’

— •
•
Modernize applications in ¼ the time
Recoup investment within 12 months.
ROI / TCO

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Business Case Findings

• Focus on calibrating and proving out the

technical aspects of the journey

Strategic Goals a) Migration to Java 12-Factor Application

b) Deployment to any infrastructure
c) Data re-architecture
d) Optimization

• Leverage global Java talent pool

• Converge on Enterprise DevOps
• Create a model for ‘Migration Factory’
• Pivot to ‘Cloud Economics’.

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Business Case Findings

Phased and Iterative Approach for Production Pilot

Phase I – Pilot Begins Phase II – Data Re-architecture Phase III - Optimization

• Design end-state and target
architectures, obtain all approvals
• Provisioning infrastructure
• Modernize MONI using CloudFrame
Renovate across multiple sprints
• Refactor Renovated CICS APIs
• Adopt DevOps CI/CD pipelines
• Coordinate Job schedulers
• Determine PADT suitability, if not
design mainframe data extract
• Automate CDCC data reconciliation
• Stage data in binary form
• DevOps Strategy Gap Identification
• Data re-architecture to UTF-8 ASCII
with Cloud Native Service(s)
• Streamlining of unnecessary over-
processing due to data re-architecture
• DevOps Gap Remediation
• Automate new CDCC data
reconciliation per data re-architecture
• Establish ‘Go Live’ criteria
• Audit, refactor, optimize code and data
for ‘Cloud Economics’
• Implement business process
optimizations
• Plan decommissioning of MONI
mainframe application and data

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Business Case Findings
Technical Element
Legacy application
programming language
Legacy 4th GL for reporting E-ZTrieve
and utility
Legacy job scheduling
Legacy job scheduling
Legacy online transaction
processing
Legacy Sort Utility
File systems
© Copyright 2021 CloudFrame, Inc. All Rights Reserved.
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A Modern Vision for the MONI Application
Current State Phase I – Target State Phase II – Target State Phase III – Target State
COBOL Java Spring Boot Services Refactored to use Cloud Native Optimized for Cloud
Storage Economics
Rewritten in COBOL and
migrated with CloudFrame
JCL Java Spring Batch Programs Simplified by reductions in sorting Streamlined and consuming
data over 1,000 times 20% less CPU, storage TBD
Tivoli Decision Support TDS + TBD TDS + TBD TBD
(TDS)
CICS Java Spring Boot Services Cloud Native Function as a
Service (FaaS)
DFSORT / SYNCSORT Java Spring Batch Programs Code retired by using NoSQL or Code retired by using NoSQL
SQL indices for queries or SQL indices for queries
QSAM, VSAM, GDG CloudFrame emulated file Migrate to UTF-8 Cloud Native
systems NoSQL or Relational
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Business Case Findings

Key Activities: Phase I

APPLICATION
ARCHITECTURE MODERNIZATION DATA MIGRATION PILOT

Design end- and target- state • Provision infrastructure • Monitor efficacy of deployments
architectures • Understand Morgan Stanley
• Install CloudFrame data policies and standards per data strategy, and MONI
• Understand Morgan Stanley application, Reconciliation
Infrastructure and DevOps • Migrate MONI application • Develop PADT data strategy,
• Monitor NFRs, particularly cycle
policies and standards • Package code into projects contingency EDB and CPS
time, tune as necessary
• Design Logical and Physical • Adopt CI/CD pipelines • Design data reconciliation jobs
• Triage issues
models for Phase I and II • Design file transfer jobs if using
• Deploy data extracts and • Update end- and target- state
• Create capacity plan reconciliation jobs on EDB and CPS
architectures
• Design data strategy for mainframe
• Conduct retrospective to inform
UTF-8 migration in Phase II • Stage data using CloudFrame Migration Factory Model design
• Review and revise as emulated files
necessary to achieve • Deploy MONI Java Applications
Architecture and SecArch
• Activate schedules for file
approvals transfers (EDB, CPS only)

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Business Case Findings

High-Level Milestones
Milestone 8/30/21 10/1/21 10/29/21 11/3/21 12/31/21 1/28/22 2/25/22 4/1/22 4/29/22 6/3/22 7/1/22 7/29/22
Enterprise Developer Licensing Finalized
Project team onboarded and knowledge transfer
Data strategy finalized for PADT vs EDB and CPS, etc.
End- and Target-state architectures ready for review and approval
Decision: All End- and Target-state architectures approvals received
Infrastructure provisioned
COBOL, JCL, SORT Renovated to Java, integrated to CI/CD pipeline Dev. Env.
Data sourcing reconciliation jobs developed and tested infrastructure
Decision: Resolution for use of E-Ztrieve (rewrite/retire) provisioning can
Data sourcing and data reconciliation jobs ready for Pre-Pilot
pull forward this
work to increase
Data staged
confidence
Application deployed and ready for Pre-Pilot validation
Decision: Parallel pilot begins
Decision: Pivot or Preserve decision on Vertical vs Horizontal approach
Data Migration and Code Streamlining Finalized
DevOps Gaps Closed
Revised CDCC Data Reconciliation Finalized
Decision: Production Parallel Begins
MONI mainframe decommissioning planning
Decision: Cutover decision, go live?
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Business Case Findings

• Last man standing internal costing model

• Legacy resource availability
The Risk of Doing • Unscalable legacy architecture

Nothing • Costs, inflexibility, and risk of being left

behind.

© Copyright 2021 CloudFrame, Inc. All Rights Reserved.

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Business Case Findings

• A proven modernization approach that

adds no processing latency

Application Portfolio • Low risk but value additive phases –

Immediate Cost Reduction / No Data
— Changes

The Bigger Picture • A combination of low risk, quick but

tangible wins, with minimal infrastructure
investment
• Convergence with the corporate DevOps
operating model.

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Tangible Benefits

Reduced Cost • Fully automated transformation to Cloud Native

Java, refactored and optimized into the Spring
Boot framework
• Convergence on Morgan Stanley Technology
Strategy with pivot to Cloud Economics

Quality • Automated generation of JUnit regression test

cases with 80% code coverage, or more
• Highly performant, with cycle time similar or
better than Cobol
• 100% Functional and data equivalency

© Copyright 2021 CloudFrame, Inc. All Rights Reserved.

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Tangible Benefits

Risk • Lowest risk approach to modernization, due to

backward compatibility with mainframe data
and fully automated code generation

Speed • Fastest time to benefits realization, 400%

faster according to our customers

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Intangible Benefits

Innovation • Participation in digital transformation initiatives,

open-source ecosystem, cloud technologies,
and Morgan Stanley DevOps Operating Model

Control • Freedom from vendor lock-in

• Flexible deployment options
• Progressive modernization: decouple COBOL
to Java modernization, Cloud deployment, and
data migration

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Intangible Benefits

Confidence • Having modern vision in future use of legacy

system (Mindshift)
• Remove dependency on legacy technologies
and declining COBOL talent pool

Culture • Reinforces learning organization mindset

• Cultivate modern skills
• Recruitment of top tech talent
• Innovation mindset

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In Conclusion

CloudFrame is Bringing Cloud

Economics to Mainframe
Workloads!

© Copyright 2021 CloudFrame, Inc. All Rights Reserved.