ID105 - Fortify Your IBM®         Lotus® Notes® and IBM®         Lotus® Domino® Infrastructure         Against a Competiti...
Agenda■   Define the Scenario■   Discuss the Methodology■   Review Customer Example                              2 |   © 2...
Scenario - A new version of Notes and Domino is released, and...■   “The Business” views this as an opportunity to re-visi...
Why Develop a Business Case?■   Understanding the costs helps you make better decisions     ─ What are my current costs to...
Agenda■   Define the Scenario■   Discuss the Methodology■   Review Customer Example                              5 |   © 2...
Recommended Approach           Baseline                      Optimize                         Evaluate●   Measure end user...
Agenda■   Define the Scenario■   Discuss the Methodology■   Review Customer Example                              7 |   © 2...
Baseline Domino Environment Overview – 7 days of activity                                                    |   © 2012 IB...
Baseline End User Demand Characteristics                                   |   © 2012 IBM Corporation
Baseline Database Usage Patterns                           |   © 2012 IBM Corporation
Baseline Session Concurrency by Server                                 |   © 2012 IBM Corporation
Baseline Overall Session Concurrency                               |   © 2012 IBM Corporation
Baseline Database Storage Usage                          |   © 2012 IBM Corporation
Baseline Network Compression                       |   © 2012 IBM Corporation
Optimize Server Consolidation Potential            131 Distributed                                                    * 8 ...
Optimize Storage Consolidation Potential w/o DAOS                                            |   © 2012 IBM Corporation
Optimize Network Demand From End User - Dallas                                         Dallas                             ...
Optimize Top 5 End User Demand Characteristics (Documents Read)                                         |   © 2012 IBM Cor...
Optimize Domino Platform Optimization and Licensing Review       −   Domino Platform Optimization           ●   Does optim...
Evaluate Financial Concepts       ■   Management accounting or managerial accounting is concerned           with the provi...
Evaluate   TCO: A Range of IT Cost Factors - Often not Considered  Availability                                     Secu...
Evaluate How to Approach a Business Case Comparison       ■   Bottom Up is an approach to creating a TCO model from the gr...
Evaluate Sizing the Competition       ■   HP® Sizing Tools            ─ http://h71019.www7.hp.com/ActiveAnswers/Secure/711...
Evaluate TCO ON-PREMISES with ECALs                                                   IBM Annual    MSFT Annual    Annual ...
Evaluate 2.1 Server Hardware                                                 IBM         MSFT                             ...
Evaluate2.2 Network Hardware                              IBM            MSFT                                             ...
Evaluate2.3 Hardware Maintenance                                                  IBM             MSFT                    ...
Evaluate   2.4 Operating System                                                         IBM              MSFT             ...
Evaluate   2.5 Administration                                      IBM           MSFT                                     ...
Evaluate   2.6 Additional Disk Storage                                                   IBM          MSFT                ...
Evaluate   2.7 Power and Cooling                                                   IBM         MSFT                       ...
Evaluate   2.9 Application Support Services                                          IBM          MSFT     Annualized Expe...
Evaluate   2.10 Deployment and Migration                                                   IBM           MSFT             ...
Evaluate   2.11 Co-existence                                                 IBM           MSFT     Annualized Expense    ...
Evaluate    TCO On-Demand                                                 IBM Annual    MSFT Annual    Annual Costs       ...
Evaluate           |   © 2012 IBM Corporation
Evaluate      Microsoft® TCO Comparison On-Demand vs On-Premises                                                          ...
Evaluate           TCO Comparison On-Premises IBM vs. Microsoft®                                                          ...
Evaluate           TCO Comparison On-Demand IBM vs. Microsoft®                                                         |  ...
Questions            |   © 2012 IBM Corporation
Legal disclaimer© IBM Corporation 2012. All Rights Reserved. The information contained in this publication is provided for...
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Id105 fortify your ibm lotus notes and ibm lotus domino infrastructure against a competitive attack

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Id105 fortify your ibm lotus notes and ibm lotus domino infrastructure against a competitive attack

  1. 1. ID105 - Fortify Your IBM® Lotus® Notes® and IBM® Lotus® Domino® Infrastructure Against a Competitive Attack Michael Dudding michael_dudding@us.bm.com Wouter Aukema Wouter.Aukema@trust-factory.com© 2012 IBM Corporation
  2. 2. Agenda■ Define the Scenario■ Discuss the Methodology■ Review Customer Example 2 | © 2012 IBM Corporation
  3. 3. Scenario - A new version of Notes and Domino is released, and...■ “The Business” views this as an opportunity to re-visit the Notes decision ─ A strong desire to move to the “Cloud” ─ New executives have come on board and they are unfamiliar with the Notes interface ─ Competitors are whispering to anyone that will listen that Notes/Domino is a dead product – “You are going to be the last company running Lotus Notes” ─ Third Party vendors ship products with Microsoft® integration OOB. Limited or no support for Notes/Domino integration■ You believe that “The Business” is being irrational ─ You instinctively know that an upgrade is more cost effective than a migration ─ You think that there is a way to prove that Notes/Domino is the right choice for the company, but you do not know where to start 3 | © 2012 IBM Corporation
  4. 4. Why Develop a Business Case?■ Understanding the costs helps you make better decisions ─ What are my current costs today to support my Notes/Domino environment? ─ Which platform is best suited for my workload? ─ Which deployment model SaaS, On-Premises, or Hybrid is best suited for my needs? ─ Is competitive offering better suited than an upgrade?■ Numbers are real, not imagined ─ Technical challenges are just a speed bump to someone determined to move off of Notes and Domino. ─ Emotions are difficult to control. Numbers have a sobering effect 4 | © 2012 IBM Corporation
  5. 5. Agenda■ Define the Scenario■ Discuss the Methodology■ Review Customer Example 5 | © 2012 IBM Corporation
  6. 6. Recommended Approach Baseline Optimize Evaluate● Measure end user ● Determine if the current ● Compare “Future State” demand characteristics environment can be TCO with Alternatives as the basis of compare optimized to reduce overall cost – “Future ● Cloud vs. On-premises User Profiling ● Competitive Alternatives ● State” ● Document I/O including migration costs ● Session Concurrency ● Server Consolidation ● Network Traffic ● Storage Reduction ● Session Duration ● Network Utilization ● Database Transactions ● End User Patterns ● Storage Usage Profile ● Domino Platform ● Compression Usage ● Licensing Optimization | © 2012 IBM Corporation
  7. 7. Agenda■ Define the Scenario■ Discuss the Methodology■ Review Customer Example 7 | © 2012 IBM Corporation
  8. 8. Baseline Domino Environment Overview – 7 days of activity | © 2012 IBM Corporation
  9. 9. Baseline End User Demand Characteristics | © 2012 IBM Corporation
  10. 10. Baseline Database Usage Patterns | © 2012 IBM Corporation
  11. 11. Baseline Session Concurrency by Server | © 2012 IBM Corporation
  12. 12. Baseline Overall Session Concurrency | © 2012 IBM Corporation
  13. 13. Baseline Database Storage Usage | © 2012 IBM Corporation
  14. 14. Baseline Network Compression | © 2012 IBM Corporation
  15. 15. Optimize Server Consolidation Potential 131 Distributed * 8 Consolidated Non-Clustered Servers Clustered Servers over 100 in 3 Data Centers Distinct Locations * Based on Session Max Concurrency of 7,631 | © 2012 IBM Corporation
  16. 16. Optimize Storage Consolidation Potential w/o DAOS | © 2012 IBM Corporation
  17. 17. Optimize Network Demand From End User - Dallas Dallas 577 kbps w/o Network Compression Enabled | © 2012 IBM Corporation
  18. 18. Optimize Top 5 End User Demand Characteristics (Documents Read) | © 2012 IBM Corporation
  19. 19. Optimize Domino Platform Optimization and Licensing Review − Domino Platform Optimization ● Does optimization on a different platform provided better TCO ● Does LotusLive Notes make sense for some or all of your mail users − Licensing Review ● Are you on the right licensing model that matches your “Future State” ● Are you leveraging the entitlements that come with your Notes Client licensing | © 2012 IBM Corporation
  20. 20. Evaluate Financial Concepts ■ Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed forward-looking business decisions that will allow them to be better equipped in their management and control functions. ■ Total Cost of Acquisition (TCA) is a managerial accounting concept that includes all the costs associated with buying goods, services, or assets. ■ Total Cost of Ownership (TCO) is the life cycle cost view of an asset, which includes acquisition, setup, support, ongoing maintenance, service and all operating expenses. It focuses attention on the sum of all costs of owning an asset, as opposed to the initial or vendor cost, and is useful in outsourcing decisions. | © 2012 IBM Corporation
  21. 21. Evaluate TCO: A Range of IT Cost Factors - Often not Considered  Availability  Security  Integration – High availability – Authentication / Authorization – Integrated Functionality vs. Functionality to – Hours of operation – User Administration be implemented (possibly with 3rd party  Backup / Restore / Site tools) – Data Security Recovery – Server and OS Security – Balanced System – Backup – RACF vs. other solutions – Integration of / into Standards – Disaster Scenario  Further Availability Aspects  Deployment and Support – Restore – Planned outages – System Programming – Effort for Complete Site Recovery – Keeping consistent OS and SW Level – Unplanned outages – SAN effort – Database Effort – Automated Take Over  Infrastructure Cost – Middleware – Uninterrupted Take Over (especially for DB) – Space – SW Maintenance – Power – Workload Management across physical – SW Distribution (across firewall) – Network Infrastructure borders – Application – Storage Infrastructure – Business continuity – Technology Upgrade – Initial Hardware Costs – Availability effects for other applications / – System Release change without interrupts – Software Costs projects  Operating Concept – Maintenance Costs – End User Service – Development of an operating procedure  Additional development and – End User Productivity – Feasibility of the developed procedure implementation – Investment for one platform – reproduction – Automation – Virtualization for others  Resource Utilization and  Skills and Resources  Controlling and Accounting Performance – Personnel Education – Analyzing the systems – Mixed Workload / Batch – Availability of Resources – Cost – Resource Sharing  Operations Effort – shared nothing vs. shared everything – Monitoring, Operating – Parallel Sysplex vs. Other Concepts – Problem Determination – Response Time – Server Management Tools – Performance Management Routinely Assessed – Integrated Server Management – Enterprise Wide – Peak handling / scalability Cost Factors | © 2012 IBM Corporation 25
  22. 22. Evaluate How to Approach a Business Case Comparison ■ Bottom Up is an approach to creating a TCO model from the ground up. This requires working across IT disciplines to accurately estimate. ■ Top Down is an approach to creating a TCO model from a high level from typically a average user or server cost. This can be conducted with little or no input from IT stakeholders, but is highly subjective and difficult to defend. The value of conducting a top down TCO analysis is that it could open a dialog when the business is unwilling to consider other options. Realistically, most if not all business case comparisons are a combination of the two approaches. The key is to document your assumptions and be able to defend your numbers to the business. | © 2012 IBM Corporation
  23. 23. Evaluate Sizing the Competition ■ HP® Sizing Tools ─ http://h71019.www7.hp.com/ActiveAnswers/Secure/71110-0-0-0-121.html ■ Dell® Sizing Tools ─ http://content.dell.com/us/en/enterprise/email-solution-strategy-design.aspx ■ IBM Sizing Tools ─ http://www-304.ibm.com/partnerworld/wps/sizing/sizingguides.jsp | © 2012 IBM Corporation
  24. 24. Evaluate TCO ON-PREMISES with ECALs IBM Annual MSFT Annual Annual Costs Cost Cost Savings Factor 2.1 Server Hardware $92,895 $367,261 $274,366 3.95 2.2 Network Hardware $18,579 $99,160 $80,581 5.34 2.3 Hardware Maintenance $8,309 $139,926 $131,617 16.84 2.4 Operating System $649 $89,503 $88,854 137.81 2.5 Administration $420,800 $1,294,455 $873,655 3.08 2.6 Additional Disk Storage $1,053,600 $1,182,200 $128,600 1.12 2.7 Power and Cooling $2,306 $96,120 $93,814 41.68 2.8 Application Software $614,200 $2,337,903 $1,723,703 3.81 2.9 Application Support Services $- $624,880 $624,880 - 2.10 Deployment and Migration $33,469 $3,563,300 $3,529,831 106.47 2.10 Co-exsitence $- $1,242,920 $1,242,920 - ON-PREMISES ANNUAL TCO FOR LS Demo $2,151,913 $10,670,367 $8,518,454 4.96 | © 2012 IBM Corporation
  25. 25. Evaluate 2.1 Server Hardware IBM MSFT Back to Top Initial Capital Expense $278,685 $1,101,782 Number of servers multiplied by server unit cost Annualized Expense $92,895 $367,261 Initial capital cost divided by server useful life No. of Server Physical Useful Life Annual Server IBM Hardware Servers* x Cost per Server = Initial Cost ÷ (Years) Expense HP ProLiant DL580 G7 (2.13 Ghz - 2p/8c, $13,679 105W per Core, 64GB RAM) 6 $82,074 $27,358 3 Years IBM Power 720 Express Model 8202-E4B3 $32,768 (3 Ghz - 1p/8c, 40W per Core, 32GB RAM) 6 $196,611 $65,537 $278,685 $92,895 * adjusted for clustering No. of Server Physical Useful Life Annual Server MSFT Hardware Servers* x Cost per Server = Initial Cost ÷ (Years) Expense Audiocodes Survivable Branch Appliance 6 $10,000 $60,000 $20,000 HP ProLiant DL580 G7 (1.86 Ghz - 2p/4c, $8,359 85W per Core, 64GB RAM) 26 $217,334 $72,445 HP ProLiant DL980 G7 (2 Ghz - 4p/6c, 105W 3 Years $36,499 per Core, 128GB RAM) 12 $437,988 $145,996 HP ProLiant DL980 G7 (2.4 Ghz - 4p/10c, $64,410 130W per Core, 256GB RAM) 6 $386,460 $128,820 $1,101,782 $367,261 | © 2012 IBM Corporation
  26. 26. Evaluate2.2 Network Hardware IBM MSFT Back to TopInitial Capital Expense $55,737 $297,481 Initial capital cost of servers multiplied by network cost (%) Annualized Expense $18,579 $99,160 Initial capital cost divided by hardware useful life Network Cost (% Network Annual Initial Server of Initial Server Initial Network Useful Life Network Cost x Cost) = Cost ÷ (Years) = Expense IBM Network Hardware $278,685 20% $55,737 3 Years $18,579 Network Cost (% Network Annual Initial Server of Initial Server Initial Network Useful Life Network Cost x Cost) = Cost ÷ (Years) = Expense MSFT Network Hardware $1,101,782 27% $297,481 3 Years $99,160 | © 2012 IBM Corporation
  27. 27. Evaluate2.3 Hardware Maintenance IBM MSFT Back to Top Annualized Expense $8,309 $139,926 Initial capital cost of hardware (servers & network) multiplied by annual maintenance cost (%) Annual Annual Initial Server Initial Network Total Hardware Maintenance Maintenance Cost + Cost = Cost x Cost (%) = ExpenseIBM Annual Hardware Maintenance* 27,358 $55,737 $83,095 10% $8,309* Hardware maintenance is included in the cost of the Power 7 Annual Annual Initial Server Initial Network Total Hardware Maintenance Maintenance Cost + Cost = Cost x Cost (%) = ExpenseMSFT Annual Hardware Maintenance 1,101,782 $297,481 $1,399,263 10% $139,926 | © 2012 IBM Corporation
  28. 28. Evaluate 2.4 Operating System IBM MSFT Back to Top Initial Capital Expense $1,948 $268,510 Number of servers multiplied by server software unit cost Annualized Expense $649 $89,503 Initial capital cost divided by server useful life OS Cost per Server 3 yr Windows Enterprise $3,167 3yr Windows Standard $974 Total Server Operating System Server Annual Demand x Cost per Server = Initial Expense ÷ Useful Life = Expense IBM Operating System Charges (Enterprise) 0 $974 $0 $0 3 Years IBM Operating System Charges (Standard) 2 $974 $1,948 $649 Total $1,948 $649 * The price of AIX and Linux is included in the cost of the Power 7 * From above section 3.1, above OS Cost per Server Exchange SharePoint Lync Total 3 yr Windows Enterprise $3,167 20 12 48 80 3yr Windows Standard $974 16 - - 16 Total Server Operating System Server Annual Demand x Cost per Server = Initial Expense ÷ Useful Life = Expense MSFT Operating System Charges (Enterprise) 80 $3,167 $253,366 $84,455 3 Years MSFT Operating System Charges (Standard) 16 $974 $15,144 $5,048 Total $268,510 $89,503 * From above section 3.1, above | © 2012 IBM Corporation
  29. 29. Evaluate 2.5 Administration IBM MSFT Back to Top Annualized Expense $420,800 $1,294,455 Administrators needed multiplied by user-defined average annual salary per FTE Total Number Number of FTE Annual Total Annual of Servers ÷ Servers per FTE = Needed x Salary per = Cost IBM Administration Costs 34 50 1 $105,000 $105,000 Total Number Number of FTE Annual Total Annual of Users ÷ Calls per Day = Needed x Salary per = Cost IBM Help Desk Costs 12,000 2,580 5 $55,000 $275,000 Monitoring Cost Total Number per Server per Total Annual of Servers x Year = Cost IBM Monitoring Costs 34 $1,200 $40,800 Annual Administration Costs $420,800 Total Number Number of FTE Annual Total Annual of Servers ÷ Servers per FTE = Needed x Salary per = Cost MSFT Administration Costs 150 20 8 $105,000 $840,000 Total Number Number of FTE Annual Total Annual of Users ÷ Calls per Day = Needed x Salary per = Cost MSFT Help Desk Costs 12,000 2,580 5 $55,000 $275,000 Monitoring Cost Total Number per Server per Total Annual of Servers x Year = Cost MSFT Monitoring Costs 150 $1,200 $179,455 Annual Administration Costs $1,294,455 | © 2012 IBM Corporation
  30. 30. Evaluate 2.6 Additional Disk Storage IBM MSFT Back to Top Initial Capital Expense $2,026,800 $2,412,600 Annualized Expense $1,053,600 $1,182,200 Total Number Number of (GB) Cost per Total Capital of Mailboxes x Mailbox Size (GB) = Needed x (GB) = Expesnse IBM Mailbox Storage Requirements 12,000 5 GB 60000 $3.78 $226,800 Total Number Desired User Number of (GB) Cost per Total Capital of Users x Storage (GB) = Needed x (GB) = Expesnse IBM Collaboration Storage Requirements 12,000 25 GB 300000 $6.00 $1,800,000 Total Capital Storage Useful Total Annual Expesnse ÷ Life = Cost Annualized Requirements 2,026,800 3 Years $675,600 Total Number Backup Storage of (GB) Cost per GB per Total Annual Backed up x Year = Cost IBM Backup Requirements 360,000 $1.05 $378,000 Annual Storage Costs $1,053,600 Total Number Number of (GB) Cost per Total Annual of Mailboxes x Mailbox Size (GB) = Needed x (GB) per = Cost MSFT Mailbox Storage Requirements 12,000 5 GB 60,000 $5.91 $354,600 Total Number Desired User Number of (GB) Cost per Total Annual of Users x Storage (GB) = Needed x (GB) per = Cost MSFT Collaboration Storage Requirements 12,000 25 GB 300,000 $6.86 $2,058,000 Total Capital Storage Useful Total Annual Expesnse ÷ Life = Cost Annualized Requirements 2,412,600 3 Years $804,200 Total Number of (GB) Backup Storage Total Annual Backed up x Cost per GB = Cost IBM Backup Requirements 360,000 $1.05 $378,000 Annual Storage Costs $1,182,200 | © 2012 IBM Corporation
  31. 31. Evaluate 2.7 Power and Cooling IBM MSFT Back to Top Annualized Expense $2,306 $96,120 Annual power usage multiplied by user-defined electricity price per kW. Average Server Power Power Server Annual Total Number Nameplate Power Conversion Usage Hours per Power Usage IBM Hardware of Servers x per Server (Watts) x Factor = (Watts) x Year ÷ Watts/Kilowatt = (kW) HP ProLiant DL580 G7 (2.13 Ghz - 2p/8c, 105W per 6Core, 64GB RAM) 1680 5,040 8,736 1000 44,029 50% IBM Power 720 Express Model 8202-E4B3 (3 Ghz - 1p/8c, 40W per Core, 32GB320 6 RAM) 960 8,736 1000 8,387 6 960 8,387 Server Infrastructure Total Annual Annual Annual Power Power Usage Annual Power Power Usage x PUE = Usage (kW) (kW) x Price/kW hour = Expense Total Annual Power Usage 8,387 2.5 12,580 20,966 $0.11 $2,306 Average Server Power Power Server Annual Total Number Nameplate Power Conversion Usage Hours per Power Usage MSFT Hardware of Servers x per Server (Watts) x Factor = (Watts) x Year ÷ Watts/Kilowatt = (kW) Audiocodes Survivable Branch Appliance 6 150 450 8,736 1000 3,931 26 HP ProLiant DL580 G7 (1.86 Ghz - 2p/4c, 85W per Core, 64GB RAM) 680 8,840 8,736 1000 77,226 50% 12 HP ProLiant DL980 G7 (2 Ghz - 4p/6c, 105W per Core, 128GB RAM) 2520 15,120 8,736 1000 132,088 HP ProLiant DL980 G7 (2.4 Ghz - 4p/10c, 130W per 6Core, 256GB RAM) 5200 15,600 8,736 1000 136,282 50 40,010 349,527 Server Infrastructure Total Annual Annual Annual Power Power Usage Annual Power Power Usage x PUE = Usage (kW) (kW) x Price/kW hour = Expense Total Annual Power Usage 349,527 2.5 524,291 873,818 $0.11 $96,120 | © 2012 IBM Corporation
  32. 32. Evaluate 2.9 Application Support Services IBM MSFT Annualized Expense $0 $624,880 Initial support contract costs Support Packs x Hourly Rate = Annual Cost Unlimited 24x7 IBM Support Costs Telephone $0 $0 Hourly incidents purchased in minimum blocks of 40 x Hourly Rate = Annual Cost MSFT Support Costs 2920 Hours $214 $624,880 | © 2012 IBM Corporation
  33. 33. Evaluate 2.10 Deployment and Migration IBM MSFT Back to Top Annualized Expense $33,469 $3,563,300 Number of server images to deploy multiplied by the number of man hours required to deploy the server image plus migration costs Total Number Total Total Number Number of Man of Man Hours Deployment of Servers x Hours = Required x Hourly Rate = Cost IBM Deployment Planning Costs 34 18 612 $55 $33,469 Annual Total Number Upgrade Cost per Total Annual Length of Migration of Mailboxes x Mailbox = Cost ÷ Migration = Cost IBM Mail Upgrade Costs to Version 8.5.2 0 40 $0 3 Years $11,156 Annual Deployment and Migration Costs $33,469 Total Number Annual Total Number Number of Man of Man Hours Deployment of Servers x Hours = Required x Hourly Rate = Cost MSFT Deployment Costs 150 26 3889 $55 $212,680 Annual Total Number Total Migration Length of Migration of Mailboxes x Cost per Mailbox = Cost ÷ Migration = Cost MSFT Mail Migration Costs 12,000 $39 $468,000 3 Years $156,000 Total Number Total Number Total of Number of Man of Man Hours Application Applications x Hours = Required Hourly Rate = Migration MSFT Application Migration Costs 3,351 26 87126 $110 $9,583,860 Total Application Length of Annual Migration ÷ Migration = Migration Cost Annual MSFT Application Costs 9,583,860 3 Years $3,194,620 Annual Deployment and Migration Costs $3,563,300 | © 2012 IBM Corporation
  34. 34. Evaluate 2.11 Co-existence IBM MSFT Annualized Expense $0 $1,242,920 Annual Costs to support a Notes & Domiino infrastructure during a migration. Number of Production IBM Server Annual Hardware Domino x Run Rate = Run Rate End of Year 1 66 $9,960 $657,360 End of Year 2 33 $9,960 $328,680 End of Year 3 8 $9,960 $79,680 $1,065,720 Number of Production Domino Server Domino Renewal Rate per Annual Server Software Servers PVUs x PVU = Software Cost End of Year 1 26400 $42.00 $1,108,800 End of Year 2 13200 $42.00 $554,400 End of Year 3 3200 $42.00 $134,400 $1,797,600 Co-existence Server Useful Life Annualized Co-existance Server Costs Expense ÷ (Years)* = Annual Expense Hardware $1,065,720 $355,240 3 Years Software $1,797,600 $599,200 $2,863,320 $954,440 Domino Notes Client Annual Annual Client Software Renewal Users x Renewal Rate = Software Cost End of Year 1 12,000 $24.04 $288,480 End of Year 2 12,000 $24.04 $288,480 End of Year 3 12,000 $24.04 $288,480 $865,440 Client Server Useful Life Annualized Co-existanceClient Costs Software ÷ (Years)* = Annual Expense $865,440 3 Years $288,480 Total Annualized Co-existance Costs Server Costs + Client Costs = Annual Expense $954,440 $288,480 $1,242,920 | © 2012 IBM Corporation
  35. 35. Evaluate TCO On-Demand IBM Annual MSFT Annual Annual Costs Cost Cost Savings Factor 3.1 Collaboration Services $864,000 $3,888,000 $3,024,000 4.50 3.2 Additional Service Offerings $872,400 $1,980,000 $1,107,600 2.27 3.3 On-Premises Infrastucture $99,600 $19,920 $(79,680) 5.00 3.4 Application Software $100,800 $- $(100,800) - 3.5 Desktop Client Upgrade $- $- $- - 3.6 Migration Services $240,000 $468,000 $228,000 1.95 3.7 Power & Cooling $12,108 $38,198 $26,090 3.15 CLOUD ANNUAL TCO FOR LS Demo $2,176,800 $6,355,920 $4,179,120 2.92 | © 2012 IBM Corporation
  36. 36. Evaluate | © 2012 IBM Corporation
  37. 37. Evaluate Microsoft® TCO Comparison On-Demand vs On-Premises | © 2012 IBM Corporation
  38. 38. Evaluate TCO Comparison On-Premises IBM vs. Microsoft® | © 2012 IBM Corporation
  39. 39. Evaluate TCO Comparison On-Demand IBM vs. Microsoft® | © 2012 IBM Corporation
  40. 40. Questions | © 2012 IBM Corporation
  41. 41. Legal disclaimer© IBM Corporation 2012. All Rights Reserved. The information contained in this publication is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this publication, it is provided AS IS without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this publication or any other materials. Nothing contained in this publication is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in this presentation to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in this presentation may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. Nothing contained in these materials is intended to, nor shall have the effect of, stating or implying that any activities undertaken by you will result in any specific sales, revenue growth or other results. Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the users job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here. All customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer. IBM, the IBM logo, Lotus, Lotus Notes, Notes, Domino, Quickr, Sametime, WebSphere, UC2, PartnerWorld and Lotusphere are trademarks of International Business Machines Corporation in the United States, other countries, or both. Unyte is a trademark of WebDialogs, Inc., in the United States, other countries, or both. HP, the HP logo, are either registered trademarks or trademarks of Hewlett-Packard Development Company, L.P. in the United States, and/or other countries. Dell, the Dell logo, are either registered trademarks or trademarks of Dell Inc. in the United States, and/or other countries. Microsoft and Windows are trademarks of Microsoft Corporation in the United States, other countries, or both. MSFT is the registered NASDAQ stock symbol of Microsoft Corporation in the United States. Intel, Intel Centrino, Celeron, Intel Xeon, Intel SpeedStep, Itanium, and Pentium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. UNIX is a registered trademark of The Open Group in the United States and other countries. Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both. Other company, product, or service names may be trademarks or service marks of others. 41 | © 2012 IBM Corporation

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