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

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

Agenda
■ Define the Scenario
■ Discuss the Methodology
■ Review Customer Example

2 | © 2012 IBM Corporation

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


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


Agenda


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

Agenda


Baseline

Domino Environment Overview – 7 days of activity


Baseline

End User Demand Characteristics


Baseline

Database Usage Patterns


Baseline

Session Concurrency by Server


Baseline

Overall Session Concurrency


Baseline

Database Storage Usage


Baseline

Network Compression


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


Optimize

Storage Consolidation Potential w/o DAOS


Optimize

Network Demand From End User - Dallas

Dallas

577 kbps
w/o Network
Compression
Enabled


Optimize

Top 5 End User Demand Characteristics
(Documents Read)


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


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.

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

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.


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


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


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
$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
$64,410
130W per Core, 256GB RAM) 6 $386,460 $128,820
$1,101,782 $367,261


Evaluate

2.2 Network Hardware

Initial 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


Evaluate

2.3 Hardware Maintenance

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 (%) = Expense
IBM 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 (%) = Expense
MSFT Annual Hardware Maintenance 1,101,782 $297,481 $1,399,263 10% $139,926


Evaluate

2.4 Operating System

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

Evaluate

2.5 Administration

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

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

of Servers ÷ Servers per FTE = Needed x Salary per = Cost
MSFT Administration Costs 150 20 8 $105,000 $840,000

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

Evaluate

2.6 Additional Disk Storage

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


Evaluate

2.7 Power and Cooling

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


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


Evaluate

2.10 Deployment and Migration

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


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


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


Evaluate


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


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 user's 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.

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