Mainframe Economics

The customer and business value of improving economics through the concept of transaction density.

As digital transformation initiatives continue to grow in modern IT departments, one of the biggest challenges becomes one of prioritization. IT leaders are continually challenged to manage costs to be able to do both—drive new initiatives and keep the business running. In this context, one of the biggest opportunities is in managing economies on the mainframe platform. The ability to manage these economics through a concept called transaction density can have the surprising benefit of both reducing costs and increasing usage.

The State of Oregon has been a progressive leader on this front, managing IT costs and rate setting in order to meet the needs of their citizens. 

This report uncovers how:

  • Federal IT investment in FY 2016 was almost $80 billion—growing every year
  • Operations and maintenance takes a big chunk—$78 out of $100 goes to operations and maintenance
  • Economies of scale can exploit transaction density to deliver more services at better rates
  • Learn from the State of Oregon’s best practices to deliver 15 percent more service at 20 percent lower costs

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