Tassie retailer sticks faithfully with IT it knows

Coogans disdains the cloud to remain grounded with its new mainframe, writes Trevor Clarke.

By InvestSMART · 19 Feb 2013

By InvestSMART ·
19 Feb 2013

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Coogans disdains the cloud to remain grounded with its new mainframe, writes Trevor Clarke.

Tasmanian retailer Coogans has bucked the trend towards cloud computing and upgraded its Unisys mainframe systems for its mission-critical applications and online infrastructure.

The retailer is one of only a half-dozen organisations in Australia to use Unisys' mainframe systems and has been a loyal client of the IT provider and its predecessor, Burroughs, since before 1965.

Over one weekend recently, Coogans deployed one mainframe - the latest Unisys Libra 460s - at each of its Hobart and Moonah locations in Tasmania and migrated its real-time custom production application, called COSFAR (or Coogans Online Stock, Financial And Rental System), which was written in 1992 and is the centrepiece of the retailer's IT architecture.

"As the whole company is run using a real-time application - every aspect of the company is fed into this application - should we have a disastrous crash of our production machine, we can actually switch, probably within about one hour, to our DR [disaster recovery] environment and carry on going," said IT manager Peter Jandera. "Because they are completely separate we also have an offline backup of our entire environment."

While globally, mainframe market share is in gradual decline and many in the IT market believe mainframe computers are dying out and either virtualised environments on x86 servers or a cloud computing service is the way of the future, mainframe market presence from the likes of IBM and Unisys, and Fujitsu in Japan, remain strong and a viable platform for many industries.

After IBM updated its mainframe line in 2010, mainframe vendors in Australia exceeded their highest yearly revenues in the six months to March 2011 to more than $115 million, according to IDC data.

In Australia there are about 60 mainframe users among large banks, government departments, retailers and airlines.

Internationally, retailers such as Sears and Tesco still use mainframes.

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Frequently Asked Questions about this Article…

What did Tasmanian retailer Coogans do with its IT systems and why does it matter to investors?

Coogans upgraded its Unisys mainframe systems, deploying Unisys Libra 460s at its Hobart and Moonah stores and migrating its real‑time COSFAR application. For investors, this highlights a deliberate, capital-backed choice to maintain on‑premises mainframe infrastructure rather than move to the cloud — signalling a focus on stability and continuity for a mission‑critical retail operation.

What is COSFAR and why is it central to Coogans’ business operations?

COSFAR (Coogans Online Stock, Financial And Rental System) is a real‑time custom production application written in 1992 that feeds every aspect of the company’s operations. Because the business runs on this application, Coogans prioritised mainframe upgrades to ensure reliable transaction processing and inventory control.

Why did Coogans choose to stick with mainframe technology instead of moving to cloud computing?

According to Coogans’ IT manager, the mainframe environment offers proven real‑time reliability and a rapid disaster recovery capability. The retailer values the separation between production and its disaster recovery environment, plus an offline backup of the full environment — features they believe are best served by their Unisys mainframes rather than a cloud migration.

How quickly can Coogans switch to disaster recovery if their production mainframe fails?

Coogans reports it can likely switch to its disaster recovery (DR) environment within about one hour if there is a disastrous crash of the production machine, allowing the retailer to continue operating with minimal interruption.

What does the article say about the broader mainframe market and vendors investors should watch?

The article notes that while mainframe market share is gradually declining globally, major vendors like IBM, Unisys and Fujitsu remain strong and the platform is still viable for many industries. This suggests investors tracking enterprise IT vendors should consider that mainframes remain an important niche with steady demand.

How large is the mainframe user base in Australia and what sectors rely on it?

The article estimates about 60 mainframe users in Australia, concentrated among large banks, government departments, retailers and airlines — sectors that typically require high reliability and real‑time processing.

Did mainframe vendors in Australia see recent revenue growth that investors should note?

Yes. After IBM refreshed its mainframe line in 2010, mainframe vendors in Australia reportedly exceeded their highest yearly revenues in the six months to March 2011, reaching more than $115 million, according to IDC data cited in the article.

Do other major retailers still use mainframes, and what does that mean for retail IT investment trends?

International retailers such as Sears and Tesco continue to use mainframes. For investors, this indicates that while cloud and x86 virtualisation are popular, established retailers may continue to invest in or maintain mainframe platforms where they provide scalable, reliable transaction processing.