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

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Open source ECM is proven to :

* Lower Total Cost of Ownership

* Eliminate licensing fees and vendor lock-in

* Deliver faster proofs-of-concept

* Provide a complete solution for managing all enterprise content

Many companies are already leveraging open source ECM to take control of their ever growing business content at a fraction of the cost of proprietary ECM market solutions and without the danger of vendor lock-in.

The Ingres ECM Bundle for Alfresco enables innovative document management, team collaboration, and knowledge management applications.

Basing the ECM solution on Ingres Database guarantees unique high availability features that make compliance with auditing requirements an easier task, and cost much less.

Ingres CIO Doug Harr shares examples on how he uses content management solutions from Alfresco.

He also discusses the significant trends affecting the IT market today.

Embracing The New Economics of IT by adopting open source ECM will help companies to:

* better maintain their systems during the economic downturn,
* keep essential projects alive, and
* pursue innovation that can help guarantee a competitive advantage when conditions improve.

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  • Discussion points: Evidence of vendor lock-in is everywhere “Oracle rise prices because they can” You can protect yourself from vendor lock-in, and benefit dramatically by becoming vendor independent Break the lock-in by leveraging Open Source technologies. Benefit from commodity prices. Play vendors off against each other. Make it a buyers market.To do this effectively, you need around 15% of your application portfolio to be on an alternative platform. This buys you negotiating power.
  • Discussion points: Evidence of vendor lock-in is everywhere “Oracle rise prices because they can” You can protect yourself from vendor lock-in, and benefit dramatically by becoming vendor independent Break the lock-in by leveraging Open Source technologies. Benefit from commodity prices. Play vendors off against each other. Make it a buyers market.To do this effectively, you need around 15% of your application portfolio to be on an alternative platform. This buys you negotiating power.
  • Open Source and the New Economics of IT - Ingres CIO Doug Harr

    1. 1. Doug Harr, CIO, Ingres<br />
    2. 2. Agenda<br />
    3. 3. Introducing Ingres – Our Mission & Company<br />Greater Innovation<br />Reduced Costs<br />Ingres delivers Reduced Cost and Greater Innovation for business critical database workloads through our Open Source model.<br />Founded in 2006 and now more than 300 employees<br />Global presence with multi-language 24 by 7 support<br />Over 10,000 commercial customers in 58 countries<br />Revenue: from $26 M in 2006 to $68 M in 2008<br />35 year pedigree delivers: Performance, Scalability Security, High Availability with 24/7 Global Support<br />
    4. 4. Ingres in the Fortune 500 <br />Aerospace & Defense: 8 of Top 10<br />Retail<br />Financial: Top 20 Commercial Banks<br />
    5. 5. Ingres – Business Critical Acknowledgement<br />“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.”<br />Gartner – Cost Optimization of Open Source DBMSs May 2009<br />“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, <br />“…Ingres is the only one of the open source RDBMSs that has functionality that make high availability and disaster recovery possible”<br />“Gartner - How Open Source Impacts the RDBMS Jan 2009”<br />
    6. 6. Today’s Challenge<br />IT Exuberance<br />Fiscal Accountability<br />IT<br />Budgets<br />% IT expense<br />Do more with less<br />Time<br />Where to make the cuts?...<br />Fixed Costs<br />Variable Costs<br />New Projects<br />Staff<br />S/W Costs<br />Data Centre<br /><ul><li>Failed SLAs
    7. 7. Skills Loss
    8. 8. Demotivation
    9. 9. Failed business needs
    10. 10. Virtualization
    11. 11. Commodity H/W
    12. 12. Cloud Computing</li></ul>Vendor Lock-in = Premium pricing for commodity technology <br /><ul><li>These costs are escalating!</li></li></ul><li>Old vs New Economics<br />Vendor<br />Lock-in<br />Vendor<br />Lock-in<br />The Old Economics of IT<br />% IT expense<br />The New Economics of IT<br />Time<br />The Old Economics of IT<br />The New Economics of IT<br /><ul><li>Premium pricing for commodity technology
    13. 13. High up-front licenses
    14. 14. Costs always escalating (renewal trap)
    15. 15. Many hidden fees
    16. 16. Only choice of support and maintenance
    17. 17. Huge exit fees</li></ul>(CIO/CPO Investment preferences)<br /><ul><li>Commodity pricing (where appropriate)
    18. 18. No up-front licenses (releases capex)
    19. 19. Pay per use (matched to business needs)
    20. 20. Predictable on-going costs (no hidden fees)</li></ul>To break the lock-in you need to understand what it is<br />
    21. 21. Vendor Lock-In…<br />It exists… but most of it is not public.<br />
    22. 22. How Vendor Lock-In works<br />1st step - Technical Lock-in<br />2nd step - Commercial Lock-in<br />Site License Fee<br />Development<br />Hidden Fees<br />License Fee<br />Application server<br />DBMS<br />Year 1<br />Year 4<br />Year 5<br />Year 6<br />Year 2<br />Year 3<br />Operating system<br /><ul><li>Upfront license fee
    23. 23. High support fee increases
    24. 24. Hidden Fees
    25. 25. Renewals Trap
    26. 26. One stop shop
    27. 27. Use of proprietary functionality
    28. 28. No choice for support & maintenance
    29. 29. Enormous exit costs</li></ul>Escalating premium prices for commodity software products<br />
    30. 30. Breaking vendor commercial lock-In<br />Support Increment<br />Site<br />license<br />renewal<br />Proprietary<br />…hidden fees<br />Proprietary<br />No Upfront License<br />Fees<br />No Additional License<br />Fees<br />Open Source<br /><ul><li> No up-front license fees
    31. 31. No renewal traps
    32. 32. No hidden fees (Novation, FTE, etc)
    33. 33. Access to source code</li></ul>Leverage Open Source commercial model<br />
    34. 34. Proprietary<br /><ul><li> One stop shop
    35. 35. Use of proprietary functionality
    36. 36. No choice for support & maintenance
    37. 37. Enormous exit costs</li></ul>Vendor Alternatives…<br />Open Source<br />Development<br />Application server<br />DBMS<br />Operating system<br /> Open Standards<br /> Open Source Commercials<br /> Access to Source Code<br />4. Business Critical Offerings<br />
    38. 38. Ingres ECM Appliance & Bundles<br />Ingres<br />ECM Appliance<br />Document Mgmt<br />Image Mgmt<br />Records Mgmt<br />Open Source <br />business model reduces up front license costs up to 400%<br />$32k/CPU<br />3-4x Less than Documentum*<br />“ECM in a Box”<br />Integration Lowers Software Lifecycle<br />Costs<br /><ul><li> Faster Implementation
    39. 39. Faster updates
    40. 40. Easier backups</li></ul>Ingres 9<br />Apache Tomcat<br />Java<br />Linux<br />* based on Document Management functions, first year license & support costs<br />
    41. 41. Ingres Inside – Use of Alfresco Internally<br />
    42. 42. Ingres Inside – Edit Online (Webdav)<br />
    43. 43. Ingres Inside – Search MetaData<br />
    44. 44. Ingres Inside with Alfresco<br /><ul><li>Enterprise-Grade
    45. 45. Standards Support
    46. 46. JSR-170, JSR-168, SOAP, and more…
    47. 47. Highly Scalable
    48. 48. Customizable
    49. 49. Affordable
    50. 50. Handles all Core ECM Needs
    51. 51. Collaboration
    52. 52. Document Management
    53. 53. Web Content Management
    54. 54. Records Management</li></li></ul><li>Case Study: Alfresco ECM and JBoss App Server<br /><ul><li>A Facebook application that helps couples plan weddings.
    55. 55. Connected Weddings was developed and deployed on a commercial open source application development stack that includes the Ingres Database.</li></ul>Online Consumer Applications<br />Arlington, VA<br />Results<br /><ul><li>25,000 users registered within the first month
    56. 56. Easily scales without incurring prohibitive costs
    57. 57. Provides free, personalized site to end-users through the Web, iPhone, and Facebook.com
    58. 58. “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</li></ul>Challenges<br /><ul><li>Provide couples with social networking tools to help plan and manage wedding details
    59. 59. Leverage value of existing “Wedding Belles” book content
    60. 60. Create scalable foundation on which Web 2.0 functionality can be added
    61. 61. Ensure seamless integration and interaction with Facebook platform features
    62. 62. Be a long-term cost-effective solution</li></ul>Solution<br /><ul><li>Build a large-scale, commercial application using:
    63. 63. Alfresco Content Management Platform
    64. 64. JBoss Enterprise Middleware
    65. 65. Ingres Database
    66. 66. RedHat Operating System</li></li></ul><li>Summary<br /><ul><li>Commodity pricing
    67. 67. No up-front licenses
    68. 68. Pay per use
    69. 69. Predictable on-going costs </li></ul>Business critical infrastructure and development at a fraction of the cost<br />What next …?<br />Open Source<br />Contact us to help build a business case:<br /><ul><li>TCO model
    70. 70. Migration/Development estimates
    71. 71. Proof of concept</li></ul>Open Standards<br />
    72. 72. Contact Information <br />Doug Harr, CIO<br />Ingres Corporation<br />Desk: (650) 587-5505<br />Doug.Harr@ingres.com<br />http://blogs.ingres.com/dougharr/<br /><ul><li>Website
    73. 73. www.ingres.com
    74. 74. Downloads
    75. 75. esd.ingres.com
    76. 76. Community
    77. 77. http://community.ingres.com
    78. 78. Alfresco Content
    79. 79. http://www.ingres.com/products/icebreaker-ecm-appliance.php
    80. 80. White Papers
    81. 81. http://www.ingres.com/downloads/insights.php
    82. 82. Sales and Services
    83. 83. http://www.ingres.com/about/contactus.php</li></li></ul><li>Any Questions?<br />Reduced Costs<br />Greater Innovation<br />

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