1. © 2009 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Economic challenges Technology answers Apps Modernization at the Italian Ministry of Education Dott. Paolo DeSantis, Director, MIUR Luc Vogeleer, CTO, Application Modernization Practice, HP Jürgen Kress, SOA Partner Adoption EMEA, Oracle

2. October 1, 2014October 1, 2014October 1, 2014October 1, 2014October 1, 2014 Over 25 years of collaborative partnership and joint engineering engagement Strong executive alignment More than 140,000 joint customers More than $6 billion in business 13 worldwide technology and competency centers More Oracle customers use HP servers than any other brand Industry’s best price/performance plus full operating system and platform coverage Hundreds of dedicated personnel offering joint support of solutions HP has 3000+ Oracle application professionals HP servers are Oracle’s database development platform HP and Oracle share a common perspective of current business challenges and a common vision on how to help companies succeed HP and Oracle

3. "Oracle believes that the HP Enterprise Services Agility Alliance is just what the market needs. We collaborate to support our clients' business objectives and, by bringing to market unique application modernization solutions, we help them to improve their business performance." - Charles Phillips, President, Oracle

4. MIUR: Ministero dell’Istruzione, Università e Ricerca The Ministry employs (on a permanent or temporary basis): 750,000 Teachers 250,000 School Administrative Staff 9,000School Principals for 40,000Schools 41 October 2014 The Ministry is a large, labor intensive Government Organization with an overall budget of 47.3 BLN € out of which 33.0 BLN € are cost of labor IT Systems are used by about 70,000 Users distributed on the whole Italian territory

5. MIUR: The Legacy Issue IT Systems supporting HR and Administrative processes were developed in the early 90s in CICS/COBOL/DB2 and than evolved over time with point solutions addressing new requirements. Need to optimize system maintenance costs and leverage existing MPI’ investment in systems and people High Costs Need to acquire speed and agility through architectural flexibility and extend to support web services Inflexibility Complexity has caused higher maintenance costs and increase complexity of the applications portfolio. Poor Manageability slow reaction time, high efforts due to reliance on outmoded development languages, methodologies and inflexible interfaces Long Time to Market MIUR was experiencing:

6. MIUR: The Business Issue In the early 2000s a substantial organizational change occurred due to new legislation. This implied: Increasing decentralization of Processes Ownership at School Level Moving portions of Administrative Processes from the Centre (Ministry Level) to the 20 different Italian Regions The Ministry’s strategy to devolve the management of education to each region was being hampered by ageing, inflexible, legacy systems. The Ministry soon realized the need for a large modernization program to move its Information System from a legacy platform to open systems in order to deal with the major Organizational Change

7. How did HP Enterprise Services Address the Opportunity? The solution required a strong mix of business and technology knowledge Proposed a multi-year series of projects to support the client’s transformation Strategy Completed an assessment to determine inventory and maintainability of current applications portfolio Assess Created a series of projects to be completed with an overall understanding of the current applications portfolio and infrastructure and desired/future state of operations Modernization Roadmap Designed an architecture solution to support the MIUR business model Enterprise Solution Leverage strong partnership model for key components of the solution (Oracle, Relativity) Technology Partners

8. Applications Modernization: Full Lifecycle Services Agility Realize the full value by providing critical support services, application management, infrastructure technical support, monitoring and control services, training coordination, and deployment Understand the legacy environment Define the Modernization Roadmap Design and build the solution Use the “RIGHT” modernization strategies Mitigate Risk during Journey

9. Applications Modernization Approach One Size Does Not Fit All – Modernization Journey Multiple Modernization Strategies are required to adequately address risk levels, benefit potentials, and business priorities of each application Modernization is about understanding the options and creating an “operationally safe” path to the agile enterprise state Analyze programs and data structures Create baseline statistics Mine business rules Identify candidate components with methods Abstract existing apps to “As-Is” Mode Analyze programs and data structures Create baseline statistics Mine business rules Identify candidate components with methods Abstract existing apps to “As-Is” Mode Re-learn Code optimization to improve runtime efficiency of an application Re-factor Move existing application to execute on a new operating system and/or platform Re-host Web-enable and/or “wrap” methods and connect points with standard service oriented interfaces Re-interface Forward engineer to new language and/or architecture Re-architect Consolidate or substitute functionality with COTS or regenerated application Replace De-commission applications Retire Define the Path Manage the journey Mitigate the risk Achieve agility Assess applications to gain an understanding of the applications’ complexity and develop a roadmap and business case/ROI using the right modernization strategies for each application Applications Assessments Re-learn Re-interface Re-host Re-factor Retire Replace Re-architect Re-learn Re-interface Re-host Re-factor Retire Replace Re-architect

10. The Transformation Strategy IBM 3090 Core systems Accounting, HR Transactional Cobol CICS DB2 Batch Cobol DB2 Schools Inf. System Power Builder Informix Current system Target system Oracle Applications Batch Cobol Microfocus Oracle J2EE Oracle Linux Oracle Re-host Replace Re-factor Re-write 90% 10% Re-architect The most appropriate Transformation Strategy was selected for each Group of Applications based on Business Case

11. The Software Migration Journey From Jan 06 to Mar 06 16 Application Areas 200.000 function points 20.000.000 Lines of code 19.000 programs 1.350 DB2 tables 1.100 user functions 2.200 screens Effort: 376 m*days From Apr 06 to Jun 06 1 user function 3 screens 107 programs Effort: 463 m*days From Jul 06 to Sep 07 3,599 batch programs re- hosted 1,538 JCL transformed into Unix shell 7,540 TP programs re- architected 2,213 Screens transformed 736 TP User function Effort: 7,709 m*days Transformation & UATTransformation PilotTechnical assessment Staffing (people): 78 20 47 15

12. Technical Assessment Parameters

13. The COBOL-Java Conversion Strategy Conversion Effort > Rewrite Effort Conversion Effort < Rewrite Effort Seldom updated Frequently updated Automated conversion after removing only halting barriers (66%) Automated conversion after removing of all barriers (1%) Rewrite (33%) Not Critical ProgramsCritical Programs

14. The Software Transformation Approach On slides with subtitles, the subtitle text box position is as follows −Horizontal – 0.51” from top left corner −Vertical – 1.36” from top left corner Relativity (now Microfocus) Transformation Assistant) Relativity (now Microfocus) Transformation Assistant) WIDE In-house developed Tool (Web Interface Development Engine) WIDE In-house developed Tool (Web Interface Development Engine) Insulate Cobol Business Logic Eliminate User Interface Transform link between programs Re-factor Cobol Business Logic Eliminate translation and language barriers Eliminate dead code and dead data Adapt source code to new DBMS Transform Cobol Business Logic to Java Re-architect User Interface Re-architect Navigation and Control Prepare and Test Quality Review/ Remove errors Perform functional testing (EDS internal) User Acceptance Testing (Final Customer)

15. Project Results: Better Support to Business Processes Improved User Interface (3270 to GUI) Improved Navigation Better Systems Performances End-User productivity even doubled in terms of daily operations along some Business Processes ((ex. daily teachers’ contracts from 10.304 to 17.312)

16. 161 October 2014 Project Results: Cost Savings The program has been completed according to the initial Roadmap which was developed also taking into consideration the significant Organizational Change Management effort −90%> of the Program has been completed after 24 months from Program start (90%> of functionalities available to final Users) Hardware and Software License (including Maintenance) cost savings: −In 2007 costs were 7,4M$. In 2008, after AMOD project the cost was reduced by 2 M €. In 2009 the cost will be reduced by 3,4 M €. Simplification of Application Portfolio −Portfolio size has been reduced by 33%, from 218KFPs, to 145KFPs Application Maintenance and New Development cost Saving −New software architecture has reduced by 38% the FPs development cost from the old COBOL environment −In 2008 enhanced or developed FPs have been around 27K. In the new architecture costs shifted from 9.9M€ (Cobol environment) to 6,2M€ (new environment)

17. Project Financial Results Total Project Cost of 11 Millions €. Estimated Cost Recovery in 18 Months from the main release of the modernized Applications

18. Modernizing Applications…The Journey Modernization of the IT portfolio is about understanding the options and creating an “operationally safe” path to the agile enterprise state. Illustrative RPG PL1 CICS IMS DB2 ISAM VSAM OS390 AS400 COBOL Legacy Applications Legacy Applications 3270 Retain and Enhance Migrate Platforms Rewrite to new Languages Replace with Packages Remove from Service  Define the path…  Take and Manage the journey…  Mitigate the risk…  Reduce the cost…  Achieve agility… Mitigating Operational Risk To Business Continuity

19. Applications Modernization Transformation Experience Workshop A unique, slide-free and practical workshop Nine stages, one goal: Simulate your complete applications modernization journey in only a day! Your benefits: Faster cost savings, quality improvements, agility and compliance Realize critical success factors Identify quick wins Gain stakeholder buy-in Traction to any project Leverage best practices Align all actors on one roadmap Modernization strategies Datacenter transformation People & Process Architecture Technologies Applications Lifecycle Business Outcomes Key stages Transformation Experience “break-through“ “major change“ “adoption“ “best practices“ “know-how“ “roadmap“

20. 201 October 2014 While at Oracle OpenWorld…. Visit HP in Moscone South, Booth #1301 Assess your IT environment – for a chance to win an HP Mini Notebook and donate to Feeding America! Modernization Impact QuizModernization Impact Quiz Take the TCO Challenge Storage and Server Assessment Adaptive Infrastructure Maturity Model ERP Optimization Assessment

21. Technology for better business outcomes