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The Value of
Postgres to IT and
Finance
Migrate to an Enterprise Class Database.
Four weeks, minimal code changes.
Same skill sets, Similar tools. And cut
your Oracle spend by 70%.
where would
you invest
the savings?
© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
Mobile Enablement
Social Media
Visualization
Consumerization
Cloud Enablement
Big Data Insights
Analytics
Are you paying more for the database
and getting less out of applications?
April 2015 ID Number G00273643
GARTNER IMPACT APPRAISAL
State of Relational Open Source RDBMS
“By 2018, more than 70% of new in-house applications will be developed
on an OSDBMS and…”
“50% of existing commercial RDBMS instances will have been converted
or will be in process.”
Impact
“Relational OSDBMS has matured and can be considered as a standard
infrastructure choice for a large majority of new enterprise apps”
“Relational OSDBMS can be used today to replace existing internal
commercial RDBMS choices.”
–
–
–
–
© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
Gartner: Relational OSDBMS has matured and today can be considered as a standard
infrastructure choice for a large majority of new enterprise applications.
Figure 1. Relational Open-Source
DBMS Maturity Evaluation, 2009
Source: Gartner (April 2015)
Figure 2. Relational Open-Source
DBMS Maturity Evaluation, 2015
Source: Gartner (April 2015)
© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
We must run on Solaris.
Nothing beats the reliability of Solaris.
We will lose customers if we move off Solaris.
I could not sleep at night if we moved off Solaris.
We cannot run our business on Open Source Linux.
We have invested too much in Solaris to move now.
I built my career & this organization on Solaris!
Notable Quotes:
How many people recall the same reluctance
paying premiums for Solaris (UNIX)?
LANDMARK MOMENTS . . .
You have done this before! And it takes Leadership.
5© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
•  Commercial Relational Database is 35yrs old.
•  Management skill sets and operational staff are ubiquitous
•  Standards, best practices, and automation have reached their
highest levels, rates of change are consistent with commodity
products.
•  But pricing in the market continues to increase.
•  Artificial barriers like vendor lock-in and ULA’s reinforce a lop-sided balance
of power, protecting prices.
THE NEED FOR A GAME CHANGER IN OPERATIONAL DB
© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
MORE IMPORTANT:
Global competition demands investment in progressive
technologies that strengthen brand & usability, avoiding the risk
of displacement by new players in the market!
	
  
RELATIVE COST MOVEMENT FOR IT STACK COMPONENTS
© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
“Inventory the organization’s in-house developed applications
and evaluate the less critical and less risky applications for
conversion.”
“Begin to replace the RDBMS platform . . . with a Relational
OSDBMS.”
Recommendations
–
–
April 2015 ID Number G00273643
GARTNER IMPACT APPRAISAL
© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
Web apps
& Mobile
Custom apps
ISV apps
Oracle, SAP, MS
Prop. apps
APPS INVENTORY: DATABASE APPLICATIONS BY
COMPLEXITY
© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
CHANGING THE GAME ON ULAS
OBJECTION:
10© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
THE PATTERN OVER THE LAST 10 YEARS
Paying $4-6 Million for a 3 Year Term ULA
Extract larger discounts by committing to larger growth in license volume
The payment is sunk cost -- Use Oracle everywhere possible to get the ROI.
All licenses are rolled under a common CSI (recurring support), and there is no
going back
RESPONSES: STOP TRADING GROWTH FOR HIGHER DISCOUNTS
–
–
–
–
– Oracle will play this game all day long
First it gets Oracle licenses into apps where they are not needed
Second it contractually builds the CSI recurring revenue stream
CHANGING THE GAME ON ULAS
11© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
RESPONSES: STOP TRADING GROWTH FOR HIGHER DISCOUNTS
Stop the ULA, negotiate for lower growth rates, or move to an ELA.
Now you have the option
Construct a 3 year database migration plan
Migrate Custom Apps to an OS RDBMS (EDB)
Re-Provision those Oracle licenses to Apps of Record (ERP, CRM, etc.)
You might see higher prices, but in parallel you drop license volume
Target low to zero growth in purchased licenses for Apps of Record (ERP, CRM, etc.)
This creates room to re-provision licenses migrated from Custom Apps
Manage the common CSI by planning in advance for re-provisioning to
Apps of Record (ERP, CRM, etc.)
Oracle utilizes the ULA as a hedge
Oracle customers need a hedge as well---
–
–
–
–
–
–
–
–
COMPARATIVE DB PRICING SLIDE
COST PER CORE CALCULATION
© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
$5Bil company – Straw Man
•  100 - 150 total applications inventory
•  60 - 90 Apps are Custom Apps
•  40 - 60 Apps are based on Oracle
	
  
	
  
	
  
Custom application footprint
•  2 dual socket, quad core servers
•  16 cores
•  16 cores/app x ~ 50apps = 800 cores
	
  
	
  
EXAMPLE: INVENTORY APPS BASED ON ORACLE
© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
Migration Apps: Middle Tier Inventory
50 apps x 16 cores = 800 cores
50% are the initial target (sweet spot)
APPLICATION MIGRATION PROCESS
© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
Pool 50% 30% 20%
Days/App 20 Days 40 Days 60 Days
# of apps 25 Apps 15 Apps 10 Apps
# of cores 400 Cores 240 Cores 160 Cores
Net Savings $3.7 Million $2.0 Million $1.2 Million
3 yr (Net) ROI 140% 109% 84%
800 CORES
FREE CASH FLOW MODEL – RE-PROVISIONING LICENSES
$0	
  
$500,000	
  
$1,000,000	
  
$1,500,000	
  
$2,000,000	
  
$2,500,000	
  
1	
  
2	
  
3	
  
4	
  
5	
  
6	
  
$1,227,000	
  
$1,884,000	
  
$2,269,000	
  
$1,041,000	
  
$384,000	
  
$0	
  
1	
   2	
   3	
   4	
   5	
   6	
  
Support	
   $136,000	
   $218,000	
   $272,000	
   $272,000	
   $272,000	
   $272,000	
  
License	
   $1,227,000	
   $1,884,000	
   $2,269,000	
   $1,041,000	
   $384,000	
   $0	
  
Free	
  Cash	
  Flow	
  Model:	
  	
  Re-­‐Provisioning	
  Licenses	
  
Support	
  
License	
  
Migration Plan: 50 Applications migrated over 3 years
Year 1 – 50% of cores, 500 person days labor, Re-Provision 33% per year
Year 2 – 30% of cores, 600 person days labor, Re-Provision 33% per year
Year 3 – 20% of cores, 600 person days labor, Re-Provision 33% per year
© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
CONVERSION ROI ANALYSIS _ 50% SWEET SPOT
© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
WHAT IS IT GOING TO TAKE?
THE ENTERPRISE CUSTOMER KNOWS THE PROBLEM
Paying way too much for Database Software
Runaway Recurring Maintenance Fees
THE TERRIBLE TOO’S
Too hard to fix, Too big, Too much risk
Too much resistance
THE GAME HAS CHANGED – SUBSTANTIALLY
Massive reduction in risk--
IT can get it done. Automation. Minimal code changes.
Effect change over time (3 years) with Best Practices
EDB has legitimized Open Source RDBMS
TIME FOR CFO’S TO LEAD . . .
© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
Thank you for your time!
Here are two important Gartner reports that we
will share with you
	
  
•  2014 Magic Quadrant for Operational Database
Management Systems
•  EnterpriseDB	
  is	
  in	
  the	
  Leader	
  Quadrant	
  with	
  Oracle,	
  IBM,	
  
MicrosoF	
  and	
  SAP	
  
	
  
•  April 21, 2015 - The State of Open Source RDBMS
•  This	
  report	
  recommends	
  to	
  decision	
  makers	
  to	
  add	
  an	
  open	
  
source	
  relaLonal	
  database	
  	
  
Questions?

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The Value of Postgres to IT and Finance

  • 1. The Value of Postgres to IT and Finance Migrate to an Enterprise Class Database. Four weeks, minimal code changes. Same skill sets, Similar tools. And cut your Oracle spend by 70%.
  • 2. where would you invest the savings? © Copyright EnterpriseDB Corporation, 2015. All rights reserved. Mobile Enablement Social Media Visualization Consumerization Cloud Enablement Big Data Insights Analytics Are you paying more for the database and getting less out of applications?
  • 3. April 2015 ID Number G00273643 GARTNER IMPACT APPRAISAL State of Relational Open Source RDBMS “By 2018, more than 70% of new in-house applications will be developed on an OSDBMS and…” “50% of existing commercial RDBMS instances will have been converted or will be in process.” Impact “Relational OSDBMS has matured and can be considered as a standard infrastructure choice for a large majority of new enterprise apps” “Relational OSDBMS can be used today to replace existing internal commercial RDBMS choices.” – – – – © Copyright EnterpriseDB Corporation, 2015. All rights reserved.
  • 4. Gartner: Relational OSDBMS has matured and today can be considered as a standard infrastructure choice for a large majority of new enterprise applications. Figure 1. Relational Open-Source DBMS Maturity Evaluation, 2009 Source: Gartner (April 2015) Figure 2. Relational Open-Source DBMS Maturity Evaluation, 2015 Source: Gartner (April 2015) © Copyright EnterpriseDB Corporation, 2015. All rights reserved.
  • 5. We must run on Solaris. Nothing beats the reliability of Solaris. We will lose customers if we move off Solaris. I could not sleep at night if we moved off Solaris. We cannot run our business on Open Source Linux. We have invested too much in Solaris to move now. I built my career & this organization on Solaris! Notable Quotes: How many people recall the same reluctance paying premiums for Solaris (UNIX)? LANDMARK MOMENTS . . . You have done this before! And it takes Leadership. 5© Copyright EnterpriseDB Corporation, 2015. All rights reserved.
  • 6. •  Commercial Relational Database is 35yrs old. •  Management skill sets and operational staff are ubiquitous •  Standards, best practices, and automation have reached their highest levels, rates of change are consistent with commodity products. •  But pricing in the market continues to increase. •  Artificial barriers like vendor lock-in and ULA’s reinforce a lop-sided balance of power, protecting prices. THE NEED FOR A GAME CHANGER IN OPERATIONAL DB © Copyright EnterpriseDB Corporation, 2015. All rights reserved. MORE IMPORTANT: Global competition demands investment in progressive technologies that strengthen brand & usability, avoiding the risk of displacement by new players in the market!  
  • 7. RELATIVE COST MOVEMENT FOR IT STACK COMPONENTS © Copyright EnterpriseDB Corporation, 2015. All rights reserved.
  • 8. “Inventory the organization’s in-house developed applications and evaluate the less critical and less risky applications for conversion.” “Begin to replace the RDBMS platform . . . with a Relational OSDBMS.” Recommendations – – April 2015 ID Number G00273643 GARTNER IMPACT APPRAISAL © Copyright EnterpriseDB Corporation, 2015. All rights reserved.
  • 9. Web apps & Mobile Custom apps ISV apps Oracle, SAP, MS Prop. apps APPS INVENTORY: DATABASE APPLICATIONS BY COMPLEXITY © Copyright EnterpriseDB Corporation, 2015. All rights reserved.
  • 10. CHANGING THE GAME ON ULAS OBJECTION: 10© Copyright EnterpriseDB Corporation, 2015. All rights reserved. THE PATTERN OVER THE LAST 10 YEARS Paying $4-6 Million for a 3 Year Term ULA Extract larger discounts by committing to larger growth in license volume The payment is sunk cost -- Use Oracle everywhere possible to get the ROI. All licenses are rolled under a common CSI (recurring support), and there is no going back RESPONSES: STOP TRADING GROWTH FOR HIGHER DISCOUNTS – – – – – Oracle will play this game all day long First it gets Oracle licenses into apps where they are not needed Second it contractually builds the CSI recurring revenue stream
  • 11. CHANGING THE GAME ON ULAS 11© Copyright EnterpriseDB Corporation, 2015. All rights reserved. RESPONSES: STOP TRADING GROWTH FOR HIGHER DISCOUNTS Stop the ULA, negotiate for lower growth rates, or move to an ELA. Now you have the option Construct a 3 year database migration plan Migrate Custom Apps to an OS RDBMS (EDB) Re-Provision those Oracle licenses to Apps of Record (ERP, CRM, etc.) You might see higher prices, but in parallel you drop license volume Target low to zero growth in purchased licenses for Apps of Record (ERP, CRM, etc.) This creates room to re-provision licenses migrated from Custom Apps Manage the common CSI by planning in advance for re-provisioning to Apps of Record (ERP, CRM, etc.) Oracle utilizes the ULA as a hedge Oracle customers need a hedge as well--- – – – – – – – –
  • 12. COMPARATIVE DB PRICING SLIDE COST PER CORE CALCULATION © Copyright EnterpriseDB Corporation, 2015. All rights reserved.
  • 13. $5Bil company – Straw Man •  100 - 150 total applications inventory •  60 - 90 Apps are Custom Apps •  40 - 60 Apps are based on Oracle       Custom application footprint •  2 dual socket, quad core servers •  16 cores •  16 cores/app x ~ 50apps = 800 cores     EXAMPLE: INVENTORY APPS BASED ON ORACLE © Copyright EnterpriseDB Corporation, 2015. All rights reserved.
  • 14. Migration Apps: Middle Tier Inventory 50 apps x 16 cores = 800 cores 50% are the initial target (sweet spot) APPLICATION MIGRATION PROCESS © Copyright EnterpriseDB Corporation, 2015. All rights reserved. Pool 50% 30% 20% Days/App 20 Days 40 Days 60 Days # of apps 25 Apps 15 Apps 10 Apps # of cores 400 Cores 240 Cores 160 Cores Net Savings $3.7 Million $2.0 Million $1.2 Million 3 yr (Net) ROI 140% 109% 84% 800 CORES
  • 15. FREE CASH FLOW MODEL – RE-PROVISIONING LICENSES $0   $500,000   $1,000,000   $1,500,000   $2,000,000   $2,500,000   1   2   3   4   5   6   $1,227,000   $1,884,000   $2,269,000   $1,041,000   $384,000   $0   1   2   3   4   5   6   Support   $136,000   $218,000   $272,000   $272,000   $272,000   $272,000   License   $1,227,000   $1,884,000   $2,269,000   $1,041,000   $384,000   $0   Free  Cash  Flow  Model:    Re-­‐Provisioning  Licenses   Support   License   Migration Plan: 50 Applications migrated over 3 years Year 1 – 50% of cores, 500 person days labor, Re-Provision 33% per year Year 2 – 30% of cores, 600 person days labor, Re-Provision 33% per year Year 3 – 20% of cores, 600 person days labor, Re-Provision 33% per year © Copyright EnterpriseDB Corporation, 2015. All rights reserved.
  • 16. CONVERSION ROI ANALYSIS _ 50% SWEET SPOT © Copyright EnterpriseDB Corporation, 2015. All rights reserved.
  • 17. WHAT IS IT GOING TO TAKE? THE ENTERPRISE CUSTOMER KNOWS THE PROBLEM Paying way too much for Database Software Runaway Recurring Maintenance Fees THE TERRIBLE TOO’S Too hard to fix, Too big, Too much risk Too much resistance THE GAME HAS CHANGED – SUBSTANTIALLY Massive reduction in risk-- IT can get it done. Automation. Minimal code changes. Effect change over time (3 years) with Best Practices EDB has legitimized Open Source RDBMS TIME FOR CFO’S TO LEAD . . . © Copyright EnterpriseDB Corporation, 2015. All rights reserved.
  • 18. Thank you for your time! Here are two important Gartner reports that we will share with you   •  2014 Magic Quadrant for Operational Database Management Systems •  EnterpriseDB  is  in  the  Leader  Quadrant  with  Oracle,  IBM,   MicrosoF  and  SAP     •  April 21, 2015 - The State of Open Source RDBMS •  This  report  recommends  to  decision  makers  to  add  an  open   source  relaLonal  database