Early Adoption of Windows Vista Yields Strong …download.microsoft.com/documents/uk/technet/newsletter/...best practices, and savings potential for client infrastructure management

Early Adoption of Windows Vista Yields Strong Returns for Midsize Companies

Authored by:

Wipro Technologies Product Strategy & Architecture Practice (PSA)

April 2008

Copyright © Wipro Ltd. 2008. All rights reserved. No portion of this study can be used or reproduced without permis-sion of the author. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

Product Strategy & Architecture Practice

Early Adoption of Window Vista Yields Strong Returns for Midsize Companies

Table of ConTenTs

executive summary 1

Introduction 4

The Benefits and Costs of Windows Vista Deployment 6

The Benefits of Windows Vista Deployment 6

The Costs of Windows Vista Deployment 9

Subjective Feedback on Migration 10

Choosing the optimal Desktop Deployment strategy 11

Scenario 1: Deployment Via Managed Diversity 12

Scenario 2: Deployment Via an Automated Wipe and Load Upgrade 14

Scenario 3: Delayed Upgrade 15

More Ways to benefit from Windows Vista 17

Conclusion 20

appendices 21

Appendix A – Characteristics of Survey Participants 21

Appendix B – Features of Windows Vista Service Pack 1 22

Appendix C – ROI Model Details 23

Appendix D – Major Features of Windows Vista 25

Appendix E – Infrastructure Optimization 26



eXeCUTIVe sUMMaRY IT departments in midsize organizations are expected to improve the quality of services to PC end-users, cut IT support costs, and increase business flexibility. Compared to large enterprises, midsize companies have tighter IT budgets and fewer IT resources. With the release of the Windows Vista™ operating system at the end of 2006, IT managers faced the decision of when and how to deploy it across their organizations. To help answer these questions, Wipro Technologies interviewed 73 midsize companies that have begun deploying Windows Vista. Major findings include:

• Depending upon the deployment method chosen, Windows Vista ROI can be very strong—ranging from 81% to 104% for midsize organizations.

• With widespread application availability, the release of Service Pack 1, and more than half of all US companies either running or evaluating it, Windows Vista has entered the mainstream adoption phase. Midsize companies should plan to begin deploying Windows Vista during their next PC refresh cycle.

• Delaying the Windows Vista upgrade process can result in deployment costs that are twice as high as those organizations using a timely refresh-based upgrade, while foregoing the productivity benefits of Windows Vista. Running an outdated operating system may result in additional risks and costs as software suppliers drop application support, drivers for new hardware become unavailable, and PC vendors no longer ship the prior operating system pre-loaded.

Security benefits are significant. Windows Vista-based PCs are almost three times less likely to be infected with potentially unwanted software than Windows XP-based PCs. PCs running Windows Vista have 60% fewer malware infections than Windows XP SP2 PCs.

Windows Vista provides substantial cost savings compared with Windows XP for both users and IT departments, totaling $192/PC/year, as shown in Figure 1. New user tools like on-the-fly Search and the Windows Meeting Space collaboration tool can add an additional $59/year/user or more in productivity benefits.

FiguRE 1. Cost savings of $192/PC/year are possible with Windows Vista.

Total User Labor Savings

Total IT Labor Savings

$160

$140

$120

$100

$80

$60

$40

$20

0

Annual TCO Savings with Windows Vista

$150 Total User Labor Savings

$42 Total IT Labor

Savings

$23

$20

$127

User Self Support User Downtime Service Desk Desktop Engineering

$18

$4

PC Security

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Managed Diversity introduces Windows Vista into the environment as older PCs are refreshed with machines running the new operating system. This is the optimal approach for most midsize companies.

automated In-Place Wipe and load leverages desktop deployment automation technologies to simultaneously upgrade all of the organization’s PCs to Windows Vista. This is the highest payback alternative but is applicable to only a very small, highly automated subset of midsize companies.

Delayed Migration postpones the Windows Vista migration indefinitely, instead choosing to downgrade newly acquired PCs from Windows Vista to an earlier version of Windows. While attractive in the short term, it is by far the most costly over the long term.

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ManagedDiversity

Automated In-Place Wipe and Load

Delayed Upgrade

xp

xp

xp xp xp

Year 0 Year 1 Year 2 Year 3

TCO $/PC

TCO $/PC

Poor Excellent

Poor Excellent

TCO $/PC Poor Excellent

FiguRE 2. Windows Vista deployment methods.

There are three paths for deploying Windows Vista; each of which are presented in Figure 2. The best method is dependent on a company’s current IT infrastructure and level of automation.



Figure 4 documents the higher cost of a delayed upgrade, where rushed, non-automated in-place upgrades may be required as software application support is dropped by vendors, forcing an upgrade.

Managed Diversity requires an organization to run dual operating systems for a period of more than two years (assuming a three year refresh cycle). However, the added complexity of supporting two operating systems costs less than $50/PC/year, an outlay that is more than covered by the IT support savings and end-user productivity benefits of Windows Vista.

To further increase IT effectiveness, midsize organizations can use the new features in Windows Vista to implement operational best practices. Client configuration management has been made easier with improved group policy integration and standard imaging at build time. User Account Control (UAC) is a feature new to Windows Vista running at the operating system level. Changes in Windows Vista and UAC enable organizations to broadly adopt Standard User accounts, providing users with the flexibility to conduct non-threatening operating system changes and at the same time ensuring that critical system resources and configurations are not modified.

Additional benefit comes from the adoption of Microsoft Software Assurance, a volume licensing maintenance offering that provides upgrades, additional powerful PC management capabilities, access to Windows Vista Enterprise, and enhanced support and training services.

For the midsize organization, Windows Vista deployment using Managed Diversity is cost-effective, straightforward, and provides significant ROI. Organizations should begin migrating in 2008 to avoid the danger of their key applications becoming unsupported in the later years of the refresh cycle, as ISVs drop support for older operating system versions.

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$100,000

$80,000

$60,000

$40,000

$20,000

$0

FiguRE 4. Windows Vista migrations are twice as expensive if they are delayed and then require a rushed upgrade.

Delayed upgrades Cost at Least Twice as Much as More Timely Alternatives

NPV

of t

otal

Dep

loym

ent C

osts

Mgd Diversity In-Place Delayed

Managed Diversity 81% $29.794 $42

Automated In-Place 103% $78,206 $103

Delayed Migration n/a -$92,722 n/a

FiguRE 3. summary of Migration benefits.

Migration Approach iRR Yearly Benefit/PCNPV

Figure 3 provides an overview of Wipro’s financial modeling for each deployment option, assuming a 250 PC organization.



InTRoDUCTIon

IT departments in midsize organizations are expected to improve services to PC end-users, cut IT support costs, and increase business flexibility. Compared to large enterprises, midsize companies have tighter IT budgets and fewer IT resources. With the release of the Windows Vista™ operating system at the end of 2006, IT managers faced the decision of when and how to deploy it across their organizations. To help answer these questions, Wipro Technologies interviewed 73 midsize companies that have begun deploying Windows Vista. Their reasons for migrating to Windows Vista were diverse, but staying current with technology and improving security were the two biggest drivers, as shown in Figure 5.

The attractive financial results documented in this paper demonstrate that conducting a Windows Vista deployment is a sound business decision for midsize organizations. For companies with hesitations regarding the technology maturity of Windows Vista, key indicators (Figure 6) show that Windows Vista has entered the mainstream adoption phase.1 Organizations that have not yet begun planning for Windows Vista deployment should be doing so without delay.

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FiguRE 5. survey respondents were most concerned with staying on a current operating system version and with improved security.

0% 20% 40% 60% 80%Note that participants were allowed to select more than one option.

Primary reason for deploying Windows Vista

Always Purchase PC's with latest operating system

Improved Security

Want to be off unsupported versions of Windows when support ends

Perceived IT cost savings

IT personnel prefer it

User requested it

63%

19%

34%

37%

45%

56%

Percentage of Respondents

FiguRE 6. Indicators that Windows Vista adoption has reached the mainstream.

Nearly half of all companies are either running or evaluating Windows Vista up from 29% in February 2007, and 12% in October 2006

Of those evaluating or using it, 35% are in some stage of migration

The release of Service Pack 1 signals to many companies that the platform has become more stable and mainstream

Applications are widely available—nearly 2,300 applications carry a Windows Vista Compatibility logo, and over 200 global enterprise applications are available

Windows Vista Enters the Mainstream

1 http://newsroom.cdw.com/news-releases/news-release-01-14-08.html

http://newsroom.cdw.com/news-releases/news-release-01-14-08.html



Using data from this and previous research, this paper charts the costs, benefits, and deployment alternatives for midsize organizations transitioning to Windows Vista:

• Section 1 of this paper documents the costs and benefits of adopting Windows Vista in a midsize organization.

• Section 2 describes three deployment alternatives for migrating to Windows Vista, with the pro, cons and ROI of each.

• Section 3 describes additional ways midsize organizations can benefit from Windows Vista, via the infrastructure management best practices that Windows Vista enables, the support and management tools provided by a Software Assurance volume licensing agreement, and the additional functionality of Windows Vista Enterprise Edition

Most of the data used in this paper comes from detailed interviews with 73 midsize organizations in the U.S., U.K. and Germany, that met the criteria shown in Figure 7. Where appropriate, information was also pulled from prior Wipro research and additional industry sources.

This paper was researched and analyzed by Wipro Technologies, a global systems integrator and Microsoft Global Services Partner. Wipro has more than 10,000 employees focused on delivering Microsoft technology solutions to customers around the world. As a Microsoft-certified Gold Partner, Wipro’s Technology Infrastructure Services (TIS) group has deployed and managed millions of PCs at hundreds of companies in dozens of countries. Wipro’s Product, Strategy, and Architecture (PSA) practice has analyzed over four million client systems, building a unique database of cost drivers, best practices, and savings potential for client infrastructure management.

Total number of PCs 50-250

% of PCs running Windows Vista

25% or greater

Location N. America & Europe

PC age >75% younger than 4 years Aged PCs have high break/fix costs that make differences in IT support costs difficult to analyze.

Industry All except government & education

Excluded industries have different acquisition models and costs than others.

FiguRE 7. screening factors for companies included in this research.

Attribute Criteria Comment

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1. The benefITs & CosTs of WInDoWs VIsTa DePloYMenTWindows Vista has many advantages—better manageability, improved user productivity, greater security, easier deployment, and more. (For a summary of Windows Vista features, see Appendix B.)

This section details the benefits and costs of Windows Vista deployment in midsize organizations.

The benefits of Windows Vista Deployment

Numerous studies have documented the cost, productivity, and process improvement benefits of Windows Vista. In the following sections, we highlight those features most relevant to midsize organizations.2

security Improvements

Enhanced security was the primary design goal of Windows Vista, and 56% of respondents cited improved security as one of their reasons for migrating to Windows Vista. User Account Control (UAC) makes it easier to use Windows with a Standard User account, which limits access to sensitive system resources and functions. Additionally, Windows Vista provides tools that help in addressing regulatory compliance requirements such as Sarbanes Oxley and Health Insurance Portability and Accountability Act (HIPAA) through sophisticated auditing, logging, filtering, and event triggers. Managing country-specific legal and regulatory requirements is easier with enhanced group policy management. The combination of Windows Vista clients with the upcoming Windows Server 2008 release will deliver important improvements, such as Network Access Protection (NAP), ensuring that clients connecting to the network are compliant with security policies.

Recent research has confirmed the superiority of Windows Vista security. The latest Microsoft Security Intelligence Report (January to June 2007) found that Windows Vista-based PCs are almost three times less likely to be infected with potentially unwanted software than Windows XP-based PCs because of Windows Defender.3 Data from the Microsoft Windows Malicious Software Removal Tool also shows that there were 60% fewer malware infections on Windows Vista than on Windows XP SP2.

Survey respondents found cost savings from Windows Vista’s improved security, as shown in Figure 8. Note that as the proportion of PCs running Windows Vista increases, so do the proportion of companies realizing savings. This is due to two factors—first, those with a high proportion of Windows Vista PCs have been running the operating system longer, and are therefore further along the learning curve. Secondly, scale advantages begin to manifest as the number of Windows Vista PCs increase. For midsize companies, Windows Vista delivers on its security promise.

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2 Wipro Technologies, “Global Infrastructure Optimization with Windows Vista”, January 2007; Al Gillen, et. al., “Analysis of the Business Value of Windows Vista”, IDC, December 2006; Wipro Technologies, ”Maximizing the ROI of Windows Vista Deployments”, August 2007; Wipro Technologies, “Reducing TCO with Windows Vista”, September 2007; Wipro Technologies, “Global Infrastructure Optimization with Windows Vista”, January 2007.

3 This report can be downloaded at http://www.microsoft.com/downloads/

80%

60%

40%

20%

0%

FiguRE 8. The greater the level of Windows Vista adoption, the more that organizations found security savings.

Windows Vista Adoption Drives iT Security Savings

Perc

ent o

f Com

pani

es

Real

izin

g Sa

ving

s

25% 26-50% Greater than 50%

Virus SupportAdware Support

Percent of PC Installed Base Running Windows Vista

“They have done a lot with the firewall protection. Also, Windows Vista has better virus protection.”

– survey respondent, Denver, CO, USA

http://www.microsoft.com/downloads/



IT labor savings with Windows Vista

Windows Vista has numerous features designed to reduce the IT labor required to manage and deploy PCs.2 These savings are often a key factor in making the business case for migration. It is worth noting that many of the TCO gains of Windows Vista are especially beneficial to smaller organizations. The various end-user support improvements, such as self-healing diagnostics and the ability of users to recover their own data, reduces burden on understaffed IT organizations. Earlier research has projected savings of $42/PC/year in reduced IT labor costs, as shown in Figure 9.2

Reduced service Desk Costs are driven by the improvements in reliability, manageability, security, and self-healing features of Windows Vista. These features reduce support requirements among end-users resulting in a reduction of demand for help desk support. Additionally, the new non-destructive re-imaging technique means damaged systems can be restored more quickly.

Improved Desktop engineering. Thanks to the new architecture of Windows Vista and its new imaging format (WIM), the same image can be applied to desktops, laptops, and Tablet PCs, and additional languages can also easily be added when using Enterprise and Ultimate Editions. The modular nature of the images makes them easier to update. Additionally, Windows Vista image-based setup now enables offline servicing of software updates, language packs, and drivers.

lower security Costs are the result of the fundamental redesign of the operating system and system services, as well as improved bi-directional firewall and malware detectors.

Wipro’s research did not specifically probe for cost reductions, but the data is suggestive that savings are at least as high as those described in Figure 8. For example, Figure 9 shows a savings of up to five hours per year in combined help desk and desk side support for those companies that reported a savings. Notice again how the savings increase as the proportion of Windows Vista increases. Wipro found similar patterns in group policy configuration cost savings, of up to 12 hours/PC/year.

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Benefit Annual Benefit

Used in ROI Calculation?

Reduced service desk costs

$20/PC Yes

PC security $4/PC Yes

Desktop engineering $18/PC Yes

Even greater savings are possible by using Windows Vista tools to increase operational processes; see section 3 for details.

FiguRE 9. IT cost savings from Windows Vista total $42/PC/year.

Summary of iT Cost Savings from Windows Vista

3.0

2.5

2.0

1.5

1.0

0.5

0.0

FiguRE 10. savings Increase as Vista Proportion Rises.

Savings increase as Windows Vista Proportion Rises

Supp

ort S

avin

gs

(Hou

rs/P

C/Ye

ar)

25% 26-50% Greater than 50%

Percent of PC Installed Base Running Windows Vista

Help Desk Support Desk Side Support



end-User benefits

Previous research has shown significant benefits to business users in both reduced downtime and self-support, as well as increased productivity.2 Figure 11 summarizes the total end-user savings. The decrease in desk side and help desk costs in this survey, shown earlier in Figure 10, back up this prior research.

Benefit Annual Benefit/PC

Used in ROI Calculation?

Less user downtime $23 Yes

Less self-support $127 Yes

Improved search $59 No*

Windows Meeting Space $72 No*

There are many other areas of potential savings, such as electricity savings from group policies enforcing power-down rules.* The paper uses only the direct cost savings of reduced downtime and self-support

in calculating ROI, since productivity gains can vary widely by company. When these additional productivity tools are taken into account the ROI for Windows Vista is much higher.

FiguRE 11. end-User benefits from Windows Vista are even greater than IT cost savings.

Summary of End-user Benefits from Windows Vista

• LessUserDowntimeandSelf-Support.The reliability and self-healing features of Windows Vista reduce user troubleshooting time, decrease time spent on the phone with the help desk, and minimize the time spent on recreating lost data. Support for self-patching with Windows Update results in less user downtime.

• IncreasedUserProductivity. There are a number of features in Windows Vista that provide user productivity benefits. A new, “on-the-fly” search enables users to instantly find data not only in documents but also in emails, email attachments, calendars, and other types of files. Initial studies from IDC estimate a savings of $59/user/year in search costs, including 42% quicker search time and 16% fewer unsuccessful searches.2

Peer-to-peer collaboration is enhanced with Windows Meeting Space, which allows meeting attendees to transparently share files and presentations with other attendees, even automatically creating an ad-hoc wireless network if the attendees are meeting outside the office. Of the companies we had surveyed, 30% have tried Windows Meeting Space. They find an average time savings of 2.4 hours/month/user for those in the organization who use it (on average, around 25%).

service Pack 1 benefits

Windows Vista Service Pack 1 has fueled additional interest in Windows Vista adoption. Released in March 2008, SP1 delivers improvements and enhancements to existing Windows Vista features in three key areas:

• Reliability and performance improvements

• Administration experience improvements

• Support for emerging hardware and standards

Early SP1 tests show Microsoft more than doubled the mean number of hours between ’disruptions’. A full description of the features of Windows Vista Service Pack 1 can be found in Appendix B.

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The Costs of Windows Vista DeploymentThere are three main cost categories in deploying Windows Vista—the one-time fixed IT costs of planning including, image creation, application compatibility testing, and application remediation the variable IT costs such as migrating settings and files, that are incurred for each PC and the end-user labor costs related to training. Each of these is examined in more detail in the sections below.

Companies that use a multi-year period to migrate to Windows Vista need to consider an additional cost—the added complexity of managing more than one operating system at a time.

Deployment Costs

Fixed costs are one-time costs incurred during the initiation of an operating system deployment. The fixed costs reported by survey respondents are shown in Figure 12. At $37/PC, the fixed costs reported in this survey are somewhat lower than the costs found in earlier research.2

Application compatibility 68 $3,400 $14

Planning, image engineering, etc.

34 $1,700 $7

Hardware testing 43 $2,150 $9

Application packaging 42 $2,100 $8

fixed Cost Total 187 $9,350 $37

* The data in this table is taken from survey responses ** Assumes $50/hour burdened wage rate

FiguRE 12. fixed costs in Windows Vista deployments.

Fixed Costs - iT Labor* Total Hours Total Cost** Cost/PC (250 PCs)

Windows Vista has added a powerful suite of virtualization capabilities that minimizes the need for applications to be modified. The Program Compatibility Assistant automatically analyzes and sets an appropriate “compatibility mode” for an application, allowing it to run unchanged and with no further user intervention required. The Microsoft Application Compatibility Toolkit (ACT) helps analyze an application portfolio, inventorying, prioritizing, and rationalizing applications that need compatibility enhancement, and assists in creating and delivering compatibility changes. Virtual PC 2007 is an enhanced bridging technology that provides a safety net for non-compatible applications until they can be migrated. A PC running Virtual PC Express emulates an environment compatible with the application, including both a previous version the Windows operating system as well as hardware. These features, along with the improved desktop engineering capabilities mentioned earlier in the paper, mean Windows Vista deployment costs are lower than prior Windows versions.

Variable costs are incurred as each PC is deployed with the new operating system. These include IT labor costs for installation and user data migration, and the cost of required memory and video card upgrades. They also include a temporary increase in service desk costs of 10% as users become familiar with the new operating system. As shown in Figure 13, these variable costs experienced by the survey respondents averaged $275/PC, plus hardware upgrade costs, if required.

“Most of the end-users are already using Windows Vista in some version at home so they are familiar with the Windows Vista layout. This has eased the transition from XP to Windows Vista in the work environment.”

– survey respondent, Hertfordshire, UK

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End-users are also impacted by deployment, most directly in the time required to learn the new operating system, whether done by formal or on-the-job training. Our research showed an average of 2.4 hours of training per end-user, though the numbers varied quite a bit. 15% of companies did not provide any training at all. As Windows Vista gains rapid acceptance in the consumer space, many people are first learning Windows Vista at home, then bringing those skills to work.

IT deployment labor 4 $50,000 $200

Temporary service desk increase

.125 $6,250 $25 Assume 10% increase in service desk costs for three months

Memory/video upgrade – Varies $150 When upgrades are done on existing machines, some proportion will need to have hardware upgrades

Variable Cost Total 4.5 $56,250 + hardware

upgrade

$255 $375 if PC requires upgrading

FiguRE 13. Variable costs in Windows Vista deployments.

Variable Costs Hours/PC Total Cost Cost/PC Comment

“Running two operating systems in the same environment definitely increases our operational costs at the service desk. Our technicians must now be versed in both platforms, and we have to track fixes in duplicate.”

– Gopikrishna B.S., General Manager, Technology Infrastructure Services.

Wipro Technologies

Cost of Diversity

For companies that migrate to Windows Vista over time, additional operational complexity comes from managing an infrastructure containing two operating system versions. This complexity impacts image engineering, security, and most significantly, the service desk. Wipro estimates this extra complexity raises TCO by about $50/PC/year for the duration of time two operating systems are deployed concurrently.

Rather than looking at operating system diversity as a “problem”, Wipro views it as a normal condition in running an efficient and up-to-date IT infrastructure that stays current with technology. A long term plan for regular hardware refreshes and increased infrastructure optimization sets the stage for affordable managed diversity.

subjective feedback on Migration

In addition to the quantitative data collected, we asked respondents for their general impressions and other comments on the migration. The responses were varied, but can be summarized as:

• While the experience was smooth for some, others had initial problems that they were able to overcome. “There were some problems at first but we got the kinks out of it. Support is great.”

• Windows Vista is more resource intensive than its predecessor. “It is technically better, better hardware support, but uses more resources than other operating systems.”

• There were many positive comments on the new security features, both overall and specific features, “The incidence of Spyware has decreased” and “Windows Vista has better virus protection…”.

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• Cost savings were mentioned specifically in the areas of group policy, security, network connectivity, deployment, and Windows Meeting Space.

• The longer they were on Windows Vista, the more they liked it and the more benefits they saw.

• Many end-users liked the new Windows Vista interface, while others didn’t want to take the time to learn something new. End-user adoption was not seen as a major hurdle.

2. ChoosIng The oPTIMal DeskToP DePloYMenT sTRaTegYIn Wipro’s experience, the choice of deployment methodology is the biggest lever available to IT managers for maximizing the ROI of a Windows Vista upgrade. As shown in Figure 14, surveyed companies used a mix of approaches for bringing Windows Vista into their organizations. In this section, we analyze the costs and benefits of three different deployment methodologies.

Our research shows that for most organizations, a Managed Diversity approach (described in more detail below) is the most cost effective option for deploying a new operating system. Managed Diversity involves upgrading the PC operating system during the course of a three-year, pre-planned hardware refresh cycle.

An Automated In-Place Wipe and Load upgrade methodology updates existing systems en masse to Windows Vista. This approach provides superior returns for the relatively few organizations with highly automated and uniform infrastructure.

Delayed migration, where a company downgrades to a previous version of the operating system, is the most costly deployment alternative. This approach delays spending in the short term but can end up costing at least twice as much in the long-term because expensive, non-automated in-place upgrades are required when migration can no longer be delayed. In addition, the delayed approach sacrifices interim security and TCO benefits associated with the new operating system.

FiguRE 14. Companies acquired Windows Vista using a variety of approaches.

0% 10% 20% 30% 40% 50% 60% 70%

Method for Acquiring Windows Vista

We installed Windows Vista on new PCs as they arrived from the supplier

Windows Vista was pre-installed on new PCs we purchased

PCs running a previous version of Windows were upgraded to Windows Vista

48%

64%

42%

Total adds to > 100% because many companies used multiple deployment methods

In the following sections, the pros and cons of each of these three strategies is evaluated. Financial analysis is provided for each, using the cost and benefit data from the Section 1. Of course, organizations are diverse, so these models will not precisely reflect what any particular company experiences. However, the structure of the model is valid across organizations, and the assumptions can be customized and modified to reflect specific situations. (For all financial models, a Discount Rate of 10% is used for calculations.)4

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4 Discount Rate. A certain interest rate that is used to bring a series of future cash flows to their present value in order to state them in current, or today’s dollars. Use of a discount rate removes the time value of money from future cash flows.



ManagedDiversity

xp



• NoincrementalITlaborrequiredfordeployingeachPC• Hardwarecompatibilityissuesaddressedby

manufacturer• Noincrementalbusinessdisruption• Bystartingmigrationpromptly,acompanycan

ensure that its older operating system is phased out before support ends

• LowerriskfactorasthewholeITenterprise architecture is not changed abruptly

• Learningcurvemeanslaterdeploymentsare more efficient

Managed Diversity Pros

Managed Diversity Cons

• Complexityandhencecostincreasesfortheperiodwhile two operating systems are running

• TCObenefitsdelayedforthosemachinesstill running older operating system version

• Organizationswithoutahardwarerefreshcycle will be required to establish one

scenario 1: Deployment Via Managed Diversity

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The Managed Diversity approach brings in the new client operating system as part of an ongoing, typically three-year, hardware refresh cycle. With this approach, every year the oldest third of the PC installed base is replaced with new hardware running the most current operating system version. It thus takes three years to migrate the entire base to the new operating system. The key to the cost effectiveness of this approach is that there are no incremental IT labor variable deployment costs (other than a slight increase in help desk costs), since these costs were already planned for as part of the regular hardware refresh cycle. The major disadvantage is the additional complexity that comes from running dual operating systems concurrently for two years out of a three year refresh cycle.

Of the companies surveyed, 63% had a formal refresh cycle which averaged 3.5 years.

To build an ROI model for midsize companies using the Managed Diversity scenario, Wipro used the costs and benefits listed in Section 1. Appendix C details the costs and assumptions for this and later models. The results for a 250 PC organization, shown in Figure 15, show a very healthy Internal Rate of Return of 81%, with a Net Present Value of $29,794.5,6 Present Value of migration costs totaled $47,261.7

“Using the hardware refresh cycle to deploy an operating system solves many problems for us. Hardware compatibility issues are removed from the equation since this is now addressed by the hardware manufacturer. Since the user would receive a new PC regardless of the OS upgrade, there is little address business disruption by the deployment.”

– Mahest Esthuri, Outsourcing Practice Head at Wipro Technologies

5 IRR is the discount rate often used in capital budgeting that makes the net present value of all cash flows from a particular project equal to zero. Generally speaking, the higher a project’s IRR, the more desirable it is to undertake the project and if the IRR is greater than the project’s cost of capital, or hurdle rate, the project will add value for the company.

6 NPV is the present value of an investment’s future net cash flows minus the initial investment. If positive, the investment should be made (unless an even better investment exists); otherwise it should not be made.

7 Present Value is the value on a given date of a future payment or series of future payments, discounted to reflect the time value of money.



$50,000

$40,000

$30,000

$20,000

$10,000

$0

($10,000)

($20,000)

FiguRE 15. RoI is high for companies using the managed diversity approach.

Managed Diversity – 250 PC Environment

Year 1Year 0 Year 2 Year 3

$9,350

$3,021

$12,979

$41,479In-Place UpgradenPV $29,794IRR 81%net benefits $42/PC/yearMigr Costs $47,260

61%

16%

Method of Acquiring New PCs Without a Defined Hardware Refresh Program

7%

16%

Ad-hoc by group, based on business or IT input

Users make decisions about when to refresh their PCs

All at once to minimize hardware configurations

Don’t know

FiguRE 16. how companies acquired PCs if not through pre-planned hardware refresh.

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Recommendations for Managed Diversity

Implement a Proactive Refresh Cycle for PCs. 37% of the companies interviewed did not have a formalized, proactive refresh cycle; they used more informal approaches as shown in Figure 16. A three-year desktop refresh cycle (with one-third of the machines being replaced each year) strikes the optimal TCO balance between amortizing hardware costs and increased support costs for aging PCs. Additionally, proactively refreshing the oldest third of the installed base each year is an easy, yet cost effective way, to reduce hardware and operating system diversity. It is also the least expensive way to deploy new technology and more robust hardware capability and to support adjustment of the desktop/laptop mix. Companies without a formal refresh cycle in place should take this opportunity to adopt one, using the first refresh to remove support-intensive legacy hardware configurations and machines running pre-Windows XP SP2 operating systems. This may require that a higher than normal percentage of the PC base will need to be refreshed during the first year or two of the cycle, Figure 15 displays the ROI model.

Reduce hardware Diversity in the Installed base. The number of unique hardware configurations in a PC fleet has a dramatic impact on both deployment and operational costs. Minimizing the number of unique hardware configurations by purchasing similar models from the same vendor is a powerful way to reduce PC-related operating costs.

limit the Duration of Managing a Diverse os environment to Reduce Complexity Costs. This may mean temporarily modifying the hardware refresh cycle from four to three years. Because smaller organizations are more cost-sensitive on capital spending, another option would be to do an In-Place upgrade on those machines that are younger than a year and replace the remainder over the course of three years. This would allow a company to remain on a four-year refresh cycle while limiting the extra complexity of two operating systems to two years.

Use Thin Images to Reduce Image Diversity. A Thin Image contains the operating system, security software, and applications common to all users in an organization. A Thick Image contains the all of the components in a Thin Image, as well as the entire set of Line of Business applications. To minimize image diversity, Wipro recommends using Thin Images and then downloading the user-specific settings from Group Policies and applications from solutions like Microsoft System Center Configuration Manager 2007 or System Center Essentials 2007. Since the images are simpler, they are less expensive to create and support.



An Automated In-Place Wipe and Load upgrade deployment strategy updates all of the organization’s PCs to Windows Vista at the same time. Simultaneously, pre-planned hardware refreshes are deployed with the new operating system version.

If an organization meets the following criteria, an Automated In-Place Wipe and Load upgrade will maximize the ROI of a Windows Vista deployment:

• Majority of PCs are less than 1-year old and have an “Aero” capable video card and at least 1GB RAM (these PCs are probably earlier downgrades from Windows Vista)8

• The IT organization possesses the ability to conduct a completely automated (“zero touch”) deployment with an automated operating system upgrade tool such as the Microsoft Deployment Toolkit (formerly Business Desktop Deployment) in conjunction with an automated operating system distribution tool (such as Microsoft System Center Configuration Manager 2007)

This high level of process automation is not common. Our survey data reflects this—only three out of the 73 companies surveyed undertook a 100% Automated In-Place Wipe and Load upgrade approach.

In the creation of the ROI model for this scenario, we included the same fixed costs identified earlier, plus additional planning costs to prepare for the automated deployment. We also included a variable cost of $150 for video card and memory upgrade for the oldest 1/3 of machines. The only variable IT labor involved is in troubleshooting the small number of machines—typically around 3%—that fail to upgrade using the automated deployment tool.

Figure 17 displays the results of the ROI Model. Highly automated organizations using an Automated In-Place Wipe and Load upgrade can expect to receive an impressive IRR of 103%, with yearly benefits outweighing costs by over $100/PC. Present Value of total migration costs is $41,163. This finding reinforces the long-term advantages of investing in greater definition of IT infrastructure processes and more automation of those processes.

By contrast, companies with typical levels of process definition and automation will find in-place upgrades a much more costly approach compared to managed diversity, since variable costs are required for each PC deployed.

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Automated In-Place Wipe and Load

xp


•TCObenefitsareimmediatelyavailableforallPC’s•Environmentremainsstandardizedonasingle

operating system

in-Place Pros

•Feasibleonlyifthemajorityofthehardwarehasenough memory and an Aero-capable video card

•Veryexpensivewithoutautomateddeployments•Thehighestfixedcostsofallthreeoptions

in-Place Cons

scenario 2: Deployment Via an automated In-Place Wipe and load Upgrade

8 specifically, a DirectX 9 compatible graphics processor with a Windows Display Driver Model (WDDM) driver, Pixel Shader 2.0 in hardware, and a minimum of 128 MB of Video RAM

$60,000

$40,000

$20,000

$0

($20,000)

($40,000)

($60,000)

FiguRE 17. RoI is significant for highly-automated in-place deployments.

in-Place upgrade – 250 PC Environment


$41,163

$48,000$48,000$48,000

In-Place UpgradenPV $78,206IRR 103%net benefits $103/PC/yearMigr Costs $41,163



Recommendations for automated In-Place Wipe and load Upgrades

Assess carefully whether your organization’s current level of process automation is sufficient to make a totally automated in-place upgrade feasible. A good starting point is the Microsoft’s Deployment Toolkit (formerly BDD).9

If your organization is not yet ready for fully automated deployment—and in reality, few are—begin the process of increasing your level of Infrastructure Optimization. See Appendix E for more details and advice on how to get started.

Midsize companies, with tight IT budgets and capital spending constraints, tend to be conservative in their adoption of new technology of any sort. These companies, in an effort to retain a homogenous operating system environment or put off migration costs, delay adopting the current version of an operating system and instead “downgrade” newly-purchased PCs to a previous version of Windows. While this approach may avoid costs in the short term, in can be very costly in the long-term:

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9 See http://technet.microsoft.com/en-us/desktopdeployment/bb400917.aspx for a description of applying Business Desktop Deployment to mid-sized organizations.10 Ranger, Steve, “Gartner: Large Businesses Shouldn’t Skip Vista”, cnetnews.com, Dec 7, 2007.


Delayed Upgrade

xp xp xp


scenario 3: Delayed Upgrade

•Organizationremainsstandardizedonasingle operating system version

•Migrationcostsaredeferred•Duringthedelay,thenewoperatingsystemmatures

and more applications are made available for it

Delayed upgrade Pros

•BenefitstobothITandend-usersaredeferred•ApplicationanddriveravailabilityfallsfortheoldOS•Supportstafffordatedtechnologyishardertofind•Vendorsbegintodropsupport,regulatorycompliance

problematic, etc.•MigrationmaybeforcedbylackofOS/application

support, leading to costly in-place upgrades•PChardwarevendorsstopofferingpre-loadedversions

of the prior operating system

Delayed upgrade Cons

FiguRE 18. Delayed Migration is the least desirable Windows Vista migration option.

Delayed Migration – 250 PC Environment


In-Place UpgradenPV -$92,772IRR negativenet benefits n/aMigr Costs $92,722

$0

($20,000)

($40,000)

($60,000)

($80,000)

($100,000)

($120,000)

($140,000)

Figure 19 illustrates this tradeoff, which shows the approximate lifecycle stage for each operating system by year. Windows XP SP2 is clearly a mainstream operating system in 2008, and we anticipate that Windows XP SP3 will achieve mainstream status in 2009. But, assuming a refresh cycle of three years, a company that did not start upgrading until 2009 would not complete until nearly 2012 at the earliest—after Windows XP SP3 has left the mainstream. According to Gartner Group, software suppliers will probably start dropping support in early 2010 and by 2012; it will be common for ISVs not to support Windows XP for their new versions.10 Even a company that migrates over three years starting in 2008 will start to feel the pinch of lessened availability and support of applications and drivers in the last year of the migration.

http://technet.microsoft.com/en-us/desktopdeployment/bb400917.aspx



Recommendations for Delayed Upgrades

As shown above, delayed upgrades may reduce near-term cash outlays but end up being extremely expensive over the long-term. When building a business case for migration, be sure to take into account the risks of being on an out-dated operating system or unsupported application and the danger of a costly in-place upgrade should a rapid migration be required.

Ensure there are no regulatory or compliance issues with remaining on an older version of the operating system.

Delaying migration or planning to skip Windows Vista entirely risks an abrupt in-place upgrade of the entire base, as a key application becomes unavailable or unsupported. Unless a company has a highly standardized and automated infrastructure, this makes for an expensive, manual in-place upgrade. In computing the ROI model for this scenario, Wipro assumed that a company remained on Windows XP until 2011, at which point it was forced to migrate because of application availability issues. Assuming this cost-sensitive company had a four year refresh cycle, 75% of the machines would require an in-place upgrade without the benefit of automation. Figure 18 shows the same ROI analysis used for previous models; because the deployment occurs in the last year, there is no time for benefits to accrue. Most damaging to the ROI of the delayed upgrade is the dramatically increased migration costs. Figure 20 compares the Present Value of migration costs for all three deployment options. The “frugal” company delaying migration has ended up spending more than twice as much as those using the more timely scenarios, even taking into account the benefits of the delay in spending. The loss is compounded by the fact that TCO benefits for both end-users and IT have been lost during the interim.

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$100,000

$80,000

$60,000

$40,000

$20,000

$0

FiguRE 20. Windows Vista migrations are twice as expensive if they are delayed and then require a rushed upgrade.

Delayed upgrades Cost at Least Twice as Much as More Timely Alternatives

NPV

of t

otal

Dep

loym

ent C

osts

Mgd Diversity In-Place Delayed

FiguRE 19. The risks or delayed migration are apparent when looking over the long term.

Waiting until 2009 to deploy Windows Vista via a three year Managed Diversity refresh puts an organization at risk for the last two years of the cycle

Operating System Adoption Cycle*

Mainstream Lifecycle Phase

Vista 2010 XP SP2

2008

XP SP3 2009

XP SP3 2010

XP SP3 2011

XP SP3 2012

Vista 2009

Vista 2008

* This figure is conceptual to illustrate the point; the dates are not exact



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11 Barna, William, “Infrastructure Optimization: Driving Down Costs of the Business Desktop”, Microsoft White Paper, 2006

Those concerned about reliability should be reassured by the availability of Windows Vista Service Pack 1, which many companies interpret as a sign of an operating system entering the mainstream adoption phase.

When there is no choice but to delay upgrading, plan ahead by buying PCs fully capable of running Windows Vista and start improving Infrastructure Optimization so that the eventual deployment will be less costly.

3. MoRe WaYs To benefIT fRoM WInDoWs VIsTaThere are two additional areas where Windows Vista can add value to midsize organizations; areas that have been primarily restricted to large enterprises in the past. These include:

• Support for Infrastructure Optimization

• Availability of Software Assurance volume licensing agreements, which include additional functionality, support, and training.

Windows Vista support for Infrastructure optimizationInfrastructure Optimization (IO) refers to the set of practices, processes, and technologies required to optimally manage PCs and other IT infrastructure resources. Wipro’s experience is that Infrastructure Optimization is a primary lever for reducing costs and improving the quality of delivered services.11 (Appendix E contains a full description of Microsoft’s Infrastructure Optimization program.) For years, IT managers in large enterprises have invested in these processes and tools. However, in the past, many midsize companies found the cost and complexity of these tools exceeded their potential cost savings. Reaching higher levels of IO requires implementing best practices, many of which require or are made more straightforward with the new features in Windows Vista. Figure 21 lists some of the Infrastructure Optimization best practices enabled by Windows Vista.



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1. Controlling PC Configurations

With this best practice, IT groups determine which mobile PC settings are critical for reliability and security, and they use software policies to prevent unauthorized users from making changes, such as to the Windows registry or firewall settings. Active Directory and Group Policies are the main enablers of this best practice under Windows XP. However, the ability to implement this practice was restricted by the need to give some users administrative rights in order to accommodate legacy applications. With Windows Vista, User Account Control (UAC) and directory virtualization, IT groups can redirect many of these applications into running in standard user context. This best practice can now be implemented without replacing a large number of applications or buying third-party party workarounds.

2. Controlling Software Configurations

With this best practice, authorized software is delivered automatically through policy-based management. Mobile PC users may only install software that is advertised by IT groups in management software or directory services. Several Windows XP features support implementation of this practice, including Active Directory, Group Policies, Microsoft Installer and Microsoft System Management Server. However, legacy applications often required granting of administrator rights to users, which enabled users to install software on their own. As in the previous paragraph, the combination of UAC and directory virtualization makes it possible to redirect many of these applications into running in standard user context, where unauthorized software installations are easily prevented.

3. Operating System Standardization

Organizations that standardize on a single operating system save IT labor costs compared to those that run multiple systems. Application compatibility was a barrier for some organizations, which needed to keep older operating systems to accommodate legacy applications that were too expensive to replace. Windows Vista registry and directory virtualization reduces the number of application compatibility problems, thus allowing most legacy applications to run without error on Windows Vista.

4. Centrally Managed PC Firewall

Organizations with a centrally managed PC firewall can limit the ports on which PCs can send and receive traffic. Ports can be opened or closed in response to new security threats. Windows XP supports this best practice with Active Directory, Group Policies, and Windows Firewall. The improved firewall capability in Windows Vista and related group policies enable greater centralized control of ports and packet filtering than was possible with Windows XP.

5. Automatic User Data Backup

With this best practice, data on mobile PCs is reliably backed up, even when Road Warriors are away from the corporate network. Mobile workers can easily retrieve accidentally deleted documents. Under Windows XP, offline folders, which create a mirrored copy of the document directory on the server, provided some backup protection. However, offline folders can be complex to set up, and could be slow, sometimes discouraging their use. Retrieving accidentally deleted documents required help desk intervention, if it was possible at all. Backups were limited to those with ongoing fast connections to the corporate network. The new Windows Vista Backup and Restore center provides off-network users a way to easily and automatically backup to USB-based devices. Previous versions provide quick recovery for accidentally deleted files. Offline folders are now faster and easier to configure.

FiguRE 21. Best Practices Enabled by Windows Vista.



advantages of Microsoft software assuranceNearly half the organizations surveyed had either a Select License with Software Assurance or an Enterprise Agreement. Microsoft Software Assurance (SA) is a volume licensing maintenance offering that combines powerful new Microsoft desktop productivity software with enhanced support and training services. It includes new version upgrade rights and allows employees to use Microsoft software to work from home. The benefits of Software Assurance are summarized below.12

1. Access to Windows Vista Enterprise

2. Access to Microsoft Desktop Optimization Pack

3. Automatic access to new technology and to productivity benefits

4. Support, tools, and training to help customers deploy and use software more efficiently

Only those organizations purchasing SA have the option to use Windows Vista Enterprise (WVE). Windows Vista Enterprise is the premium edition of Windows Vista for businesses; it helps global organizations and businesses that have complex IT infrastructures lower IT costs, reduce risk, and stay connected. In addition to the core benefits of Windows Vista, Windows Vista Enterprise adds enhanced functionality in the areas of data protection, application compatibility, and world wide deployment:

1. Enhanced Data Protection with Windows® BitLocker™ Drive Encryption

2. Subsystem for Unix-Based Applications (SUA)

3. Licensing rights to 4 Virtual OS’es

4. Multi-lingual User Interface Packs (MUI)

Microsoft’s Desktop Optimization Pack (MDOP) enables additional Infrastructure Optimization best practices. It is a new product created from five technologies brought to Microsoft through acquisitions in 2006. MDOP includes:

• Microsoft Application Virtualization (formerly SoftGrid) enables deployment of software applications that are never installed to a “thick-client”. This minimizes regression testing, yet provides the software capability to users anywhere, on-demand. It can also turn Windows applications into centrally managed virtual services that are delivered to any desktop or laptop client worldwide.

• Microsoft Asset Inventory Service translates software inventory into business intelligence

• Microsoft Diagnostics and Recovery Toolset allows for quick repair of unbootable or locked-out systems. Restores lost data and removes malware from infected systems using existing antivirus software, while the system is safely offline. Diagnoses system and network issues.

• Microsoft Advanced Group Policy Management enhances Group Policy through change management tools.

• Microsoft Desktop Error Monitoring provides IT with awareness and insight into application and operating system failures.

These are important capabilities for organizations of any size. Prior research has found potential savings of $118/PC/year from deploying MDOP technology.13

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12 The Software Assurance program is described at http://www.microsoft.com/licensing/sa/default.mspx13 Wipro Technologies, “Microsoft Desktop Optimization Pack for Software Assurance”, March 2007.

http://www.microsoft.com/licensing/sa/default.mspx



ConClUsIonWindows Vista brings substantial benefits in IT and user labor savings, as well as important new tools for supporting Infrastructure Optimization. The biggest lever available to IT managers for maximizing the ROI of a Windows Vista upgrade is the choice of deployment methodology. For most midsize organizations, a Managed Diversity approach, upgrading during hardware refresh, provides the best ROI. Organizations with high levels of IT automation will receive the maximum return from using an Automated In-Place Wipe and Load upgrade methodology, updating their existing systems en masse to Windows Vista. The biggest danger comes from delaying the move to Windows Vista by downgrading new PCs, which results in higher deployment spending over the long term, as well foregoing TCO benefits in the interim.

While each organization is different, the analysis in this paper showed returns from 81% to 103% for organizations who made timely upgrades using the deployment methodology most appropriate for their situation. User productivity benefits and improved Infrastructure Optimization automation, not included in the ROI calculations, mean the actual return will likely be even higher.

With benefits clear, and Windows Vista now a mainstream operating system, 2008 is the year that midsize organizations should begin to deploy Windows Vista. Timely deployment means additional security, as well as end-user and IT productivity savings. Delaying deployment risks unsupported software and increased migration costs without providing any corresponding benefits.

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aPPenDIX a. ChaRaCTeRIsTICs of sURVeY PaRTICIPanTsIn total, Wipro spoke with 73 companies in the United States and Europe (UK and Germany, only). The chart below provides an overview of the geographical breakdown of participating organizations:

By industry, the largest segment was services companies which included consulting, IT, legal and HR service companies—in addition to a few specialized services companies. The chart below provides an overview of the industry breakdown of survey participants:

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81% U.S.A.

19% Europe

Distribution by Region

15%, Other

39% Services

7%, Financial

8%, Logistics

8%, Retail

11%, Medical/Bio-Science 12%, Manufacturing

Distribution by industry



aPPenDIX b. feaTURes of WInDoWs VIsTa seRVICe PaCk 1Windows Vista Service Pack 1 has fueled additional interest in Windows Vista adoption. Released to OEM partners and MSDN subscribers in February, 2008, it was made available to all other Windows Vista subscribers on March 15th. SP1 will deliver improvements and enhancements to existing Windows Vista features in three key areas:

• Reliability and performance improvements

• Administration experience improvements

• Support for emerging hardware and standards

Through the Windows Vista Customer Experience Improvement Program (CEIP) and Online Crash Analysis (OCA), Microsoft has gathered information on specific features that improve Windows Vista. A small selection of the Windows Vista SP1 improvements include:

• Resolution of common crashes and hangs that exist today in Windows Vista. These include issues relating to Windows Calendar, Windows Media Player, and a number of drivers included with Windows Vista.

• Support for hot patching, a reboot-reduction technology designed to improve uptime.

• Improved power consumption when the display is not changing by allowing the processor to remain in its sleep state—consuming less energy.

• SP1 simplified alternative computing models (e.g., Terminal server, virtualized Desktops)

- Remote Desktop Protocol (RDP) streamlined to use less bandwidth

- Improves printing during a Terminal Server Session

• SP1 made it easier for users to help themselves, helping to lower support costs

- Network Diagnostics are expanded to help troubleshoot problems connecting to file shares

- Support for SSTP simplifies certain kinds of VPN connections by allowing VPN traffic to securely flow through firewalls configured to block other types of VPN traffic commonly found at hotels and coffee shops

• Improved the success of peer-to-peer connections, such as Windows Meeting Space or Remote Assistance applications, when both PCs are behind symmetric firewalls

• SP1 addressed a significant portion of crashes caused by Microsoft code

- Microsoft analyzed a large set of the most common system crashes and application failures reported by Windows Vista customers

- With SP1, we fixed the majority of application and OS crashes analyzed that are traced to Microsoft code

- Early SP1 tests show Microsoft more than doubled the mean number of hours between ‘disruptions’ as compared to the initial release version.

• More responsive

- Improvements to reduce the time to resume from standby and hibernate

- More responsive while copying large files

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aPPenDIX C. RoI MoDel DeTaIls

page 23 of 28

Fixed Costs Total Effort, Hours

Total Effort, Hours

Total Effort, Hours

Application Compatibility 68 68 68 Survey findings

Image Development 34 34 34 Survey findings

Hardware Testing 43 43 43 Survey findings

Application Packaging 42 42 42 Survey findings

Preparation for Automated Deployment

0 200 0 Wipro estimate

fixed Cost Total 187 387 187

Variable Costs (hours per PC)

*

OS Deployment/IT Labor 0 0 4 Survey findings. There are no additional variable costs for a Managed Diversity deployment, since it is part of a regularly planned hardware refresh.

Temporary Increase in Service Desk

.125 .125 .125 Survey findings showed a 10% increase in help desk costs for an estimated three months following deployment of Windows Vista

Labor to Resolve Automated Deployment “Breaks”

0 .12 0 Assume 3% of automated deployments fail, and it takes 4 hours to fix each one. Averaging across the entire base yields .12 hr/PC

Variable Cost Total (hours per PC)

.125 .245 4.125

Variable Cost Total (hours across all PCs)

31.25 61 1031

Deployment Costs Model – Standardization 250 PC Environment

Managed Diversity

in-Place upgrade

Delayed upgrade

Explanation



Model assumptions:

• Windows Vista license costs are covered either by Software Assurance (for in-place deployment) or by licenses that ship with hardware (for management diversity and delayed deployment)

• No hardware peripherals need to be replaced. A few companies in the survey noted that some outdated peripherals, e.g. scanners, didn’t have drivers available for Windows Vista and needed to be replaced.

• Applications upgrades, if required, cause no additional cost. Most application upgrades come with additional functionality and features that would have prompted an upgrade even without an operating system migration. Testing of the upgrades is included under “application compatibility”.

The Windows Vista benefits used in calculating ROI are shown below.

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Benefit Annual Benefit

Reduced service desk costs $20/PC

PC security $4/PC

Desktop engineering $18/PC

Less user downtime $23/PC

Less self-support $127/PC

Total $192/PC

Cost Savings used in ROi Calculations



aPPenDIX D. MaJoR feaTURes of WInDoWs VIsTa foR MIDsIZe CoMPanIesThis section contains a brief summary of the major features of Windows Vista:

1. Increasing user productivity by making it easier to find and use information.

• Powerful, integrated search capabilities save users time by helping them quickly find just about anything on their PCs.

• New user interface (Windows Aero) provides better stability, improved user experience, richer visualization, and easier navigation.

2. enhanced data protection and security make computing safer, and easier to achieve compliance with regulations and policies.

•Windows BitLocker Drive Encryption protects data if the mobile computer is lost or stolen.

• User Account Control reduces the attack surface area while minimizing disruptions to user productivity.

• Enhanced online security with Windows Vista browser protected mode and anti-phishing help protect user identity and data.

• A re-engineered code base developed using a security-centric development lifecycle has increased intrinsic security and reliability.

•More secure wireless connections protect mobile workers on the go.

• Granular event logging, auditing, and tracking enable compliance.

3. Reducing the cost and complexity of deploying, managing, and supporting PCs.

•New imaging format allows for hardware and language independence to reduce number of desktop images needed when deploying to corporate PCs with a variety of hardware and language settings.

•Advanced Group Policies better manage critical usage scenarios and corporate PCs.

•Self-healing and better supportability reduce helpdesk calls.

4. enabling a better connected, more collaborative, and more secure mobile workforce.

•Windows Meeting Space for ad-hoc, peer-to-peer meetings.

•Configuring access to any type of wireless network with a single, easy user interface.

•A new sleep mode combines the resume speed of Standby mode with the lower power consumption of Hibernation.

•Built-in diagnostics, SuperFetch™ and Windows ReadyBoost™ capabilities for a more reliable, high performing and responsive PC and higher user productivity.

• Faster and more intelligent synchronization for online/offline folders.

•Faster and more powerful browsing of network resources.

• An automatic Backup and Restore Center for creating easy local backups when away from the office.

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aPPenDIX e. InfRasTRUCTURe oPTIMIZaTIonThe following paragraphs give an overview of Infrastructure Optimization. See www.microsoft.com/io for a full description and for advice on how to implement it in your organization.

The Infrastructure Optimization Model has been developed using industry best practices and Microsoft’s own experiences with its enterprise customers. A key goal for Microsoft in creating the Infrastructure Optimization Model was to develop a simple way to use a maturity framework that is flexible and can easily be used as the benchmark for technical capability and business value.

The first step in using the model is to evaluate what maturity level you are at in the model. Once the current maturity level has been established, the next step is to use the model to develop a plan on how to progress through each maturity level in order to reach the target level needed for maximum business benefit.

basic: “We fight fires”The Basic IT infrastructure is characterized by manual, localized processes; minimal central control; and nonexistent or unenforced IT policies and standards regarding security, backup, image management and deployment, compliance, and other common IT practices. There is a general lack of knowledge regarding the details of the infrastructure that is currently in place or which tactics will have the greatest impact to improve upon it. Overall health of applications and services is unknown due to a lack of tools and resources. There is no vehicle for sharing accumulated knowledge across IT. Companies with Basic infrastructure find their environments extremely hard to control, have very high desktop and server management costs, are generally very reactive to security threats, and have very little positive impact on the ability of the business to benefit from IT. Generally, all patches, software deployments, and services are provided high touch and high cost.

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www.microsoft.com/io



Companies benefit substantially by moving from this type of Basic infrastructure to a Standardized infrastructure, helping them to dramatically reduce costs through:

• Developing standards, policies, and controls with an enforcement strategy.

• Mitigating security risks by developing a “defense in depth” posture: a layered approach to security at the perimeter, server, desktop, and application levels.

• Automating many manual and time-consuming tasks.

• Adopting best practices, such as those of the IT Infrastructure Library (ITIL); the SysAdmin, Audit, Network, and Security Institute (SANS); and so on.

• Aspiring to make IT a strategic asset rather than a burden.

standardized: “We're gaining Control”The Standardized infrastructure introduces controls through the use of standards and policies to manage desktops and servers; how machines are introduced to the network; and the use of Active Directory services to manage resources, security policies, and access control. Companies in a Standardized state have realized the value of basic standards and some policies, yet are still quite reactive. Generally, all patches, software deployments, and desktop service are provided through medium touch with medium to high cost. However, they have a reasonable inventory of hardware and software and are beginning to manage licenses. Security measures are improved with a locked-down perimeter, but internal security may still be a risk.

Companies benefit by moving from this Standardized state to a Rationalized state with their infrastructure by gaining substantial control over the infrastructure and having proactive policies and processes that prepare them for the spectrum of circumstances from opportunity to catastrophe. Service management is a concept and the organization is taking steps to recognize where to implement it. Technology is also beginning to play a much larger role moving toward a Rationalized infrastructure by becoming a business asset and ally rather than a burden.

Rationalized: ”We enable business“The Rationalized infrastructure is where the costs involved in managing desktops and servers are at their lowest and processes and policies have matured to begin playing a large role in supporting and expanding the business. Security is very proactive, and responding to threats and challenges is rapid and controlled.

The use of zero-touch deployment minimizes cost, time to deploy, and technical challenges. The number of images is minimal and the process for managing desktops is very low touch. They have a clear inventory of hardware and software and purchase only the licenses and computers they need.

Security is extremely proactive with strict policies and control from desktop to server to firewall to extranet.

Companies benefit on a business level by moving from this Rationalized state to a Dynamic state. The benefits of implementing new or alternative technologies to take on a business challenge or opportunity far outweigh the incremental cost. Service management is implemented for a few services with the organization taking steps to implement more broadly across IT. Companies contemplating the value of Dynamic state generally are looking for their IT infrastructure to provide business advantage.

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Dynamic: “We’re a strategic asset”Companies with a Dynamic infrastructure are fully aware of the strategic value their infrastructure provides in helping them run their business efficiently and staying ahead of competitors. Costs are fully controlled. Integration between users and data, desktops and servers, and collaboration between users and departments is pervasive, and mobile workers have nearly on-site levels of service and capabilities regardless of location. (Note that, for midsize companies, the majority of infrastructure optimization benefits are available by reaching the rationalized level. Dynamic optimization benefits are focused primarily on large corporations.)

Processes are fully automated, often incorporated into the technology itself, allowing IT to be aligned and managed according to the business needs. Additional investments in technology yield specific, rapid, measurable benefits for the business.

The use of self-provisioning software and quarantine-like systems for ensuring patch management and compliance with established security policies allows the dynamic organization to automate processes, thus improving reliability, lowering costs, and increasing service levels.

Companies benefit from increasing the percentage of their infrastructure that is Dynamic by providing heightened levels of service, competitive and comparative advantage, and taking on bigger business challenges. Service management is implemented for all critical services with service level agreements and operational reviews.

Copyright © Wipro Ltd. 2008. All rights reserved. No portion of this study can be used or reproduced without permission of the author. For additional reproduction rights and usage information, go to www.wipro.com. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

Other names and brands may be claimed as the property of others. Printed in USA

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aboUT WIPRo PRoDUCT sTRaTegY & aRChITeCTURe PRaCTICeThe Wipro Product Strategy & Architecture (PSA) Practice is a division of Wipro Technologies, a global technology services division of Wipro Ltd. (NYSE-WIT). Wipro’s PSA Practice has more than 10 years experience in researching, analyzing and documenting the business value of technology solutions. Wipro’s PSA practice helps enterprises and technology vendors develop innovative and effective product and IT strategies that enable them to expand their market opportunities, extend their competitive advantage and economize their business operations. In addition to consulting with technology vendors, practice consultants and technologists work with global enterprises and service providers in architecting and implementing large-scale systems. This practical hands-on experience gives Wipro’s PSA Practice consultants and technical architects first-hand knowledge that informs their business analysis work.

For further information, contact [email protected] or visit www.wipro.com/pes/services/psa

www.wipro.com

mailto:[email protected]

http://www.wipro.com/pes/services/psa

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