Open Source and the New Economics of IT - Ingres CIO Doug Harr

Doug Harr, CIO, Ingres

Agenda

Introducing Ingres – Our Mission & Company
Greater Innovation
Reduced Costs
Ingres delivers Reduced Cost and Greater Innovation for business critical database workloads through our Open Source model.
Founded in 2006 and now more than 300 employees
Global presence with multi-language 24 by 7 support
Over 10,000 commercial customers in 58 countries
Revenue: from $26 M in 2006 to $68 M in 2008
35 year pedigree delivers: Performance, Scalability Security, High Availability with 24/7 Global Support

Ingres in the Fortune 500
Aerospace & Defense: 8 of Top 10
Retail
Financial: Top 20 Commercial Banks

Ingres – Business Critical Acknowledgement
“The use of open-source DBMSs for mission-critical applications carries far more risk — the exception is Ingres. Ingres has been available for over 25 years and has a broad base of customers with mission-critical applications today. Issues of scalability, reliability and maturity are not a problem for the Ingres DBMS.”
Gartner – Cost Optimization of Open Source DBMSs May 2009
“In the RDBMS market, open source software is being adopted in two areas: open source RDBMSs and the open source OS Linux as a platform on which to run an RDBMS”… Linux as an RDBMS platform is expected to see growth of approximately 20% in 2009,
“…Ingres is the only one of the open source RDBMSs that has functionality that make high availability and disaster recovery possible”
“Gartner - How Open Source Impacts the RDBMS Jan 2009”

Today’s Challenge
IT Exuberance
Fiscal Accountability
IT
Budgets
% IT expense
Do more with less
Time
Where to make the cuts?...
Fixed Costs
Variable Costs
New Projects
Staff
S/W Costs
Data Centre

Failed SLAs
Skills Loss
Demotivation
Failed business needs
Virtualization
Commodity H/W
Cloud Computing

Vendor Lock-in = Premium pricing for commodity technology

These costs are escalating!

Old vs New Economics
Vendor
Lock-in
Vendor
Lock-in
The Old Economics of IT
% IT expense
The New Economics of IT
Time
The Old Economics of IT
The New Economics of IT

Premium pricing for commodity technology
High up-front licenses
Costs always escalating (renewal trap)
Many hidden fees
Only choice of support and maintenance
Huge exit fees

(CIO/CPO Investment preferences)

Commodity pricing (where appropriate)
No up-front licenses (releases capex)
Pay per use (matched to business needs)
Predictable on-going costs (no hidden fees)

To break the lock-in you need to understand what it is

Vendor Lock-In…
It exists… but most of it is not public.

How Vendor Lock-In works
1st step - Technical Lock-in
2nd step - Commercial Lock-in
Site License Fee
Development
Hidden Fees
License Fee
Application server
DBMS
Year 1
Year 4
Year 5
Year 6
Year 2
Year 3
Operating system

Upfront license fee
High support fee increases
Hidden Fees
Renewals Trap
One stop shop
Use of proprietary functionality
No choice for support & maintenance
Enormous exit costs

Escalating premium prices for commodity software products

Breaking vendor commercial lock-In
Support Increment
Site
license
renewal
Proprietary
…hidden fees
Proprietary
No Upfront License
Fees
No Additional License
Fees
Open Source

No up-front license fees
No renewal traps
No hidden fees (Novation, FTE, etc)
Access to source code

Leverage Open Source commercial model

Proprietary

One stop shop
Use of proprietary functionality
No choice for support & maintenance
Enormous exit costs

Vendor Alternatives…
Open Source
Development
Application server
DBMS
Operating system
Open Standards
Open Source Commercials
Access to Source Code
4. Business Critical Offerings

Ingres ECM Appliance & Bundles
Ingres
ECM Appliance
Document Mgmt
Image Mgmt
Records Mgmt
Open Source
business model reduces up front license costs up to 400%
$32k/CPU
3-4x Less than Documentum*
“ECM in a Box”
Integration Lowers Software Lifecycle
Costs

Faster Implementation
Faster updates
Easier backups

Ingres 9
Apache Tomcat
Java
Linux
* based on Document Management functions, first year license & support costs

Ingres Inside – Use of Alfresco Internally

Ingres Inside – Edit Online (Webdav)

Ingres Inside – Search MetaData

Ingres Inside with Alfresco

Enterprise-Grade
Standards Support
JSR-170, JSR-168, SOAP, and more…
Highly Scalable
Customizable
Affordable
Handles all Core ECM Needs
Collaboration
Document Management
Web Content Management
Records Management

Case Study: Alfresco ECM and JBoss App Server

A Facebook application that helps couples plan weddings.
Connected Weddings was developed and deployed on a commercial open source application development stack that includes the Ingres Database.

Online Consumer Applications
Arlington, VA
Results

25,000 users registered within the first month
Easily scales without incurring prohibitive costs
Provides free, personalized site to end-users through the Web, iPhone, and Facebook.com
“We now have an end-to-end open source platform that will enable us to scale quickly and cost effectively.”Dan Kerzner, CEO, New Gravity Ventures

Challenges

Provide couples with social networking tools to help plan and manage wedding details
Leverage value of existing “Wedding Belles” book content
Create scalable foundation on which Web 2.0 functionality can be added
Ensure seamless integration and interaction with Facebook platform features
Be a long-term cost-effective solution

Solution