Case Study
CalPERS Backbridge Decommission Project
Client Profile
The California Public Employees’ Retirement System (CalPERS) manages pension and health benefits for approximately 1.5 million California public employees, retirees, and their families. As of June 30, 2006, it has provided benefits to 1,048,895 active and inactive members and 448,271 retirees. CalPERS membership is divided approximately in thirds among current and retired employees of the state, schools, and participating public agencies.
Problem/Challenge/Requirements
During the mid-nineties, the California Public Employees Retirement System (CalPERS) undertook a major initiative to revamp its systems which resided on an IBM mainframe. The initiative’s main goals were to:
- Create an enterprise-wide, relational corporate database (CDB) implemented in Oracle that all systems could utilize
- Migrate applications to an object oriented platform that could easily adapt to new or changing business rules
This initiative, the CalPERS Online Member and Employer Transaction System (COMET), was only partially completed. While many systems were incorporated into COMET, a handful remained on the mainframe. The underlying corporate database, CDB, was the system of record for member and employer data, but legacy systems remaining on the mainframe had no means to directly query these data.
In order to enable systems in separate universes to share the same data source, CalPERS devised the Backbridge solution by which updates to CDB would be sent during nightly batch runs to mainframe member (MBR), employer (EPR), and member address (MBR ADDR) data files (key-sequenced indexed sequential). A series of batch PL/SQL programs extracted updates made during the day from CDB, formatted them to match the Virtual Storage Access Method (VSAM) record layouts and sent the data via FTP to the mainframe. Another program then conducted further transformations like packing fields and dealing with ASCII to EBCDIC translation. This solution worked reasonably well but had three main imperfections:
- Legacy programs did not have access to up-to-the-minute data, but only information from the previous day.
- Record deletions in CDB could be submitted by the batch processes, but they were not applied correctly to the VSAM file
- Significant costs were incurred supporting this infrastructure and dealing with data discrepancies and data cleanup it required
After considering alternatives, CalPERS determined that in order to retire the BackBridge infrastructure, legacy systems would have to be reengineered to utilize a middleware layer that would directly call CDB.
Trinity Technology Group began the Backbridge Decommission Project faced over 200 batch and online COBOL and Natural projects that access VSAM databases. Some of these batch programs required several hours to run. Access to the CBD had to be maintained 24/7. Performance had to be maintained as a resident data source was replaced by network access, a relational database replaced native flat files, and sequential and skip-sequential reads were eliminated. In addition, online requests had to maintain a < 1 second response time.
Approach/Implementation
Trinity Technology Group devised the Backbridge Decommission (BBD) to enable legacy programs to retrieve data directly from CDB. Trinity built a new middleware solution that allowed legacy online and batch programs access the CDB directly.
The overview of this process is shown as follows:
The EPR and MBR databases were decommissioned and the solution was deployed in a manner complete transparent to business functionality. Deployment included a “safety net” strategy that allowed for seamless rollback if necessary.
During an initial proof of concept (POC) phase (2-3 months), Trinity accomplished the following:
- Built and validated a middleware solution for legacy online and batch programs
- Implemented error management strategy
- Demonstrated load balancing
- Accommodated problematic programs (skip/sequential)
- Proved the solution can handle production volumes with less than 30% increase in completion times for production batch processing and negligible difference in production online response times
In addition, the actual implementation phase (6 months) accomplished the following:
- Acquired team commitments and management support
- Established development and test environments
- Conducted comprehensive testing
- Refined infrastructure
- Minimized modifications to existing programs
Trinity’s solution utilized the following physical architectural components:
- z/OS 1.5
- COBOL and Natural
- Common Modules (Assembler)
- Common Modules (COBOL)
- SoftwareAG EntireX Broker and RPC Client
- Windows 2000 SP4 VMWare, 2.2Ghz CPU X 4, 1Gb RAM
- SoftwareAG EntireX RPCServer implemented in Java
- 4 Online Servers
- 1 Batch Server
- JDBC thin driver
- HPUX 11i 800 MB CPU X 8, 12 Gb RAM
- ORACLE 9.2.0.5
- PL/SQL Packaged Procedures
- 1 Gigabit Network – TCP/IP
This architecture is illustrated as follows, showing new components in orange:
Results
Shortly after implementation, CalPERS CEO Fred Buenrostro wrote:
“On November 11th, the Legacy Enrollment Database and its associated "backbridge" process were decommissioned. For those of you who have lived the pain of reconciling data discrepancies between COMET and the legacy systems, the significance of this achievement is huge! The solution went into production seven weeks ahead of schedule and well under budget (the budget was originally estimated at $4-5 million, but delivered for only $1.2 million) and the ongoing annual savings to CalPERS is estimated at $500,000 - $700,000. However, the greatest benefit to this project is that we've eliminated a major source of our data integrity and redundancy problems.”
Trinity Technology Group concluded this project, accomplishing the following:
- Deployed on time and on budget, with no production downtime
- Created a stable environment with no production downtime or significant issues
- BackBridge successfully decommissioned
- Although batch performance was 1.2 to 3 times longer in the new infrastructure, the overall impact did not translate into a similar increase in total batch processing time.
- No noticeable change in online performance.
- All legacy programs, including “problematic” programs that perform sequential reads, are accommodated in the new infrastructure.
- Enhancements included 11 annual programs
Future
The success of this project underscores Trinity Technology Group’s ability to provide technically feasible, advanced middleware solutions for production applications. Trinity crafts cost-effective solutions that can accommodate legacy programs performing both direct and skip/sequential database accesses with minimal or no changes. Furthermore, this solution is scalable to handle large volumes of database calls under actual production conditions, and it can be configured and tuned to achieve similar performance results in production as during testing.
Enterprise Service Bus (ESB) Implementation
Client Profile
The California Public Employees’
Retirement System (CalPERS) manages pension and
health benefits for approximately 1.5 million California public employees, retirees, and
their families. As of June 30, 2006, it has
provided benefits to 1,048,895 active and
inactive members and 448,271 retirees. CalPERS
membership is divided approximately in thirds
among current and retired employees of the
state, schools, and participating public
agencies.
Problem/Challenge/Requirements
CalPERS employed Enterprise
Architecture Integration (EAI) products to
integrate business to business (B2B) and
Application to Application (A2A) functionality.
EAI product allows CalPERS investment managers
and custodians, such as State Street Bank to
send investment data to CalPERS for updating
internal financial applications. EAI product
also allows CalPERS to exchange health-related
data with health carriers.
CalPERS
also uses EAI/ESB product for Government to
Government (G2G) integration such as File/Data
exchange between State Controller’s Office and
CalPERS
CalPERS wished to extend its
architectural base by adding service oriented
architecture (SOA) components. SOA components
would allow CalPERS to develop web services that
allow authorized users to draw data and business
functionality from standalone legacy
applications across the Internet.
Approach/Implementation
Traditional EAI is an
asynchronous message-based communication from
one location to another. It employs “loose
coupling;” that is to say, EAI products can
interact with multiple data sources and
applications regardless of their operating
system or native technology. EAI products also
include the option for synchronous messaging
through remote procedure calls (RPC).
Enterprise Service Bus (ESB) is
a commercial off the shelf (COTS) software
product. However, it is not a single application
but rather a combination of SOA tools that
provide the same benefits as EAI, but extends it
to add web service support. With web service
support added, any authorized user can be given
access to native databases and applications
through a web browser. ESB utilizes the SOAP,
Java messaging service (JMS) and xml standards.
Because ESB is a combination of
tools that were to be added to an existing
environment, Trinity consultants performed a
thorough evaluation of the suitability of
grafting ESB onto the CalPERS enterprise before
proceeding with an implementation. Once ESB was
functioning, additional services were created
and made available for further application
development.
The following diagram
illustrates how ESB provides interconnectivity
to legacy applications and databases. It
includes CalPERS’ custom-built services,
Logging, Cryptography, and Cross Reference
Lookup.

Results
ESB functionality was achieved in a totally
transparent manner. Currently, CalPERS
enterprise can make use of its functionality.
Future
In addition to the developed
services which are now available for use within
CalPERS, additional services will soon be
available to extend this functionality.
Case Study
Virtual Information System Architecture (VISA)
Client Profile
The California Public Employees’
Retirement System (CalPERS) manages pension and
health benefits for approximately 1.5 million California public employees, retirees, and
their families. As of June 30, 2006, it has
provided benefits to 1,048,895 active and
inactive members and 448,271 retirees. CalPERS
membership is divided approximately in thirds
among current and retired employees of the
state, schools, and participating public
agencies.
Problem/Challenge/Requirements
In 2005, CalPERS’ leadership
determined that its IT environment was no longer
adequate to meet rapidly changing business
needs. Its current environment consisted of
numerous standalone systems and databases that
were increasingly difficult to maintain, costly
to support, and unresponsive to growing needs.
CalPERS further determined it
would be best served with IT environment that
facilitates the reuse of infrastructure and
business services, which any authorized party
could use to respond to business needs.
Publishing these services and providing a
coherent framework within which to manage them
would accommodate current and yet-to-be-defined
business requirements.
This new enterprise architecture
was to be based on an industry standard
architecture approach known as Service Oriented
Architecture (SOA) and was named CalPERS
“Virtual Information Systems Architecture” (VISA).
Because SOA implementation
represents a leading edge technology, CalPERS
first engaged Trinity Technology Group to launch
a prototype development phase. This prototype
phase would determine whether full scale
development was feasible.
Upon the prototype’s acceptance, VISA
Phase I was designed to setup the SOA
infrastructure suite that includes hardware and
software. VISA Phase I implements
production quality common infrastructure
services such as Logging, Cryptography and Cross
reference lookup.
Approach/Implementation
As successful existing SOA
implementations were still few in number,
Trinity Technology Group began at the ground
level, asking very basic questions about how
SOAs function in the real world. Trinity
researched and evaluated the then-current state
of the art concerning:
§
Available SOA
standards
§
Security and
identity management (SAML, X509, and LDAPv3)
§
Enterprise Service Bus
(ESB)
§
Orchestration of
services and user activity using Business
Process Execution Language (BPEL)
§
Messaging (JMS)
§
Service
registration and repository (UDDIv3)
§
Granularity (fine
grained versus coarse grained services)
§
Frameworks
§
Quality of
service using Web Services Management tool
§
Governance using
Web Services Management tool
Specifically, Trinity sought to
determine how an SOA implementation would
function alongside CalPERS existing system.
The following diagram
illustrates the deployment configuration for
this prototype implementation:

Results
In the six month prototype
phase, Trinity successfully crafted a working
SOA environment able to function within CalPERS
existing environment.
The prototype project leveraged
existing JCAPS ESB technology and utilized Open
Source alternatives to proprietary software.
Using this approach, the Trinity saved CalPERS
approximately $400,000.
Trinity determined that
achieving the espoused benefits of a
service-oriented architecture requires
understanding of how to use the architecture
appropriately. Trinity also determined that
application of standard legacy
application-oriented analysis and design
techniques would not yield the
appropriate use of the architecture.
Rather, Trinity recommended
CalPERS adopt and promote a service-oriented
analysis and design methodology. The
methodology must provide a framework that drives
analysis from a business process through to a
service identification and specification level.
The methodology must provide a logical basis for
how to identify and categorize services from
descriptions of required function. This
approach, coupled with appropriate guidelines
and principles for designing stateless,
independent, and highly reusable services are
critical to success.
As a result of the successful
acceptance of VISA Prototype phase,
Trinity continued with the successful
development of VISA Phase
I. Trinity selected and implemented the
best solution for managing and securing services
using a policy-based security mechanism, using
standards such as BPEL, WSDL, LDAPv3, UDDIv3,
SAML and X509. This application has been
accepted by CalPERS and is now available for use
within CalPERS enterprise architecture.
Future
As of 2Q 2008, Trinity continues
with the development of VISA Phase II,
which will provide additional services for
CalPERS enterprise within the structure
successfully created in Phase I..
The success of this project
underscores Trinity Technology Group’s ability
to provide technically feasible, advanced SOA
solutions for production applications. Trinity
crafts cost-effective, leading edge solutions
that can accommodate legacy programs’ continued
use within a state of the art configuration.
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