This document summarizes Broadlane's transition to virtualizing its data center infrastructure. Broadlane issued a request for proposals to 10 providers and selected Terremark after evaluating responses. Over a 3 month period, Broadlane migrated all production servers to Terremark's virtual platform. As a result, Broadlane consolidated over 600 physical servers into around 100 virtual servers, reducing energy usage by over 2.5 MWH annually and cutting CO2 emissions by 1,500 tons per year. Lessons learned included carefully profiling each server, ensuring software compatibility, checking licensing, and scaling host server memory.

1. Presentation Title Here
Michael Howell
Senior Vice President of Technology
www.broadlane.com

2. Agenda
 About Broadlane
 The challenge
 The process
 Implementation
 Results/benefits
 Advice/ Lessons

3. Broadlane is a unique company, focusing on reducing
healthcare providers costs. What makes us special?
 Price leadership
h High-quality National GPO portfolio driven by large, highly-committed anchor clients
h Aggressive and unique sourcing strategies
h Flexible custom contracting support for PPI (Producer Price Index)
 Continual market assessment and portfolio refreshment
 Focus on all controllable expense areas AND all levers of cost
 Comprehensive supply chain services, including outsourcing
h Contracting
h Pharmacy
h Capital Equipment
h Clinical Services
h Procurement
 Innovative technology
 Provider-aligned business model, based on performance

4. Broadlane has developed and operates custom supply
chain solutions for large, complex IDN clients
Hospitals 1,179
Ambulatory Care Centers 3,535
Radiology Centers 506
Pharmacies 517
Long Term Care Facilities 505
Physician Practices 34,235

5. Broadlane was increasing its data center footprint
due to growth
 Our company doubled the number of employees in 2004
 Our server count increased 300% in a two year period
 We went from 4 enterprise systems to more than 25
 Our IT operations budget doubled in 2005
 Our data center partner’s revenue was based upon physical assets
 Our in-house data centers were under powered and had insufficient
cooling
 Our production servers were utilized less than 10%

6. Something had to be done
 Negotiated with previous vendor, but we had a long
term contract in place and they only had one model
 Tried to scale back services, but the business would
not slow down
 Tried multiple instances of software on servers, but
reliability and management became an issue
 We began using virtualization in our test environments
and were realizing major benefits for cooling and power
 Decided to move our entire production environment to a
virtual platform at Terremark

7. The process
 Conducted an RFI with 10 local data center providers
 From that information, we chose three to participate in the RFP
 We conducted several rounds of meetings to normalize the
vendors responses
 Evaluated RFP’s on 11 categories and chose Terremark based
upon their customer support, tools, migrations strategy and
pricing model Scale
Categories Score Vendor 1 Terremark Vendor 3
Security and Operations 15 15 13 12
Support Levels 15 10 15 8
Migration Methodology 15 15 15 10
Backup Infrastructure 10 10 10 8
Customer Tools 10 8 10 5
Technologies 10 8 10 5
Asset Management 5 5 5 5
Analytics and Reporting 5 5 5 3
Additional Services 5 4 5 1
Company Background 5 5 5 5
Costing and pricing models 5 4 5 4
Total Score 100 89 98 67

8. Our planning began in May, while the actual
migration took only three months
July August September October
15 1 15 1 15 1 15
Network Configured
BroadLink® re-routing
Email Migration
Ticket System Replacement (Resolve)
Initial Data UAT Begins UAT Ends
8/15 8/29 Final Data
Migration Migration
Previous
Provider
Applications UAT
Contract
Ends
Code Freeze (6 weeks)
9/16 Go live Window 10/14
GO LIVE!

9. Production Server Count
0
20
40
60
80
100
120
140
160
Jul-08
Sep-08
Nov-08
Jan-09
Mar-09
Virtual
Servers
Servers
May-09 Physical
Jul-09
Sep-09
Nov-09
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
our production environment
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
Nov-12
Jan-13
Mar-13
We have realized a six to one consolidation ratio in

10. We have realized a four to one consolidation in our
corporate facilities avoiding 300 new server installs
450
400
Physical
350 Servers
Total
Tower II Server Count
300 Servers
250
200
150
100
50
0

11. Together Broadlane is saving or avoiding over 2.5 MWH of power
and 1,500k tons of CO2 per year by adopting virtualization
4,000,000 2,500
Actual
3,500,000
Projected
2,000
3,000,000
Resource
CO2 Tons per Year
Avoidance
KWh per Year
2,500,000
1,500
2,000,000
1,000
1,500,000
Resource
1,000,000 Savings
500
500,000
0 0
* Estimating an average of 7,000 kilowatt hours (kWh), and 4 tons of CO2 emissions a year per
virtual server

12. Any lessons from our virtualization strategy?
 Profile each server carefully, the devil is in the details
 Check your vendor lists and make sure they support
virtualization, you may need to upgrade to supported versions
 Check your software licensing
 Virtualizing servers is a good start, but more can be done with
desktop virtualization and cloud computing
 Memory is the key constraint for host servers, so scale it as
much as possible to achieve greater consolidation ratios

13. Advice
 Take your time on the RFP and contract
 Hire outside council that specializes in outsourcing if you don’t have
internally
 Hold all projects while completing the migration
 Standardize the menu of services with locked in pricing
 Build in flexibility for reducing services after a cliff period
 Market your initiative internally and externally and have a clear
communication plan

14. Thank You
Michael Howell
Senior Vice President of Technology
www.broadlane.com