© 2006 Copyright, Open Country. All rights reserved

© 2006 Copyright, Open Country. All rights reserved.

Open IT Forum Overview

Enabling Open IT

August 2006

© 2006 Copyright, Open Country. All rights reserved.Page 2

Open IT Forum: Agenda August 3/4 2006 Founder’s Dinner – 6pm (Social Event)

• Guest Speaker – Stuart Cohen, CEO Open Source Development Lab Founder’s Session

• 8:00-8:30am Continental Breakfast (Introductions)• 8:30-8:50am Agenda Review and Open IT Overview (Grove)• 8:50-9:20am Founder’s View – Why they joined Open IT

- Bill Vass, Vin Melvin, Sean Magee, Max Rayner• 9:20-9:50am Project Avalanche – Results, Lessons (Black)• 9:50-10:00am Break• 10:00-10:20am Open IT Project Process and Deliverables (Grove/Rayner) – Introducing Best IT

Solutions (BITS)• 10:20-11:50am Project Selection (Grove/Founders)

- IT Governance (Melvin), ITRP (Vass), SAAS (Rayner), Open Source Sandbox (TBD), Other• 12:00-1:00pm – Lunch, Open IT Model and Legal Structure (Grove/Radcliffe)• 1:00-1:45pm Project Working Groups – Output of Scope, Direction• 1:45pm-2:00pm Summary of Decisions, Actions, Issues• Next Meeting (October 5 Proposal)


Open IT Overview

Introductions Agenda/logistics Ideal Output of the meeting

• 3 projects committed, united passion to build Open IT Open IT Summary


The Opportunity: Solve IT Once

Open Source Model Works

Sharing/Improving of Code

Enterprise 1 Enterprise 2

Enterprise 3

Open IT Model Works

Enterprise n

Sharing/Improving of Solutions

Telco CRM Desktop


Open IT Forum – Introduction

Mission: Enable Open IT

Function: Manages collaborative groups, facilitate projects

Goal: Enhance Enterprise differentiation via IT

2006 Objective: 3 successful projects, 25+ members

2008 Vision: 1000 of Global 2000 belong to Open IT

• Average member clearly outperforms non-member

• Improves IT – Vendor relationships. >> differentiation Core Team: Michael Grove, Andrew Black, Jay Hansen, Laurent

Gharda, Bill French, and Mike Takamoto


Open IT Forum Value Proposition

Selective IP Sharing Legal Structure

Opportunity to share solutions, expertise, and results

Project based collaboration – increase innovation, reduces risk

Participative architecture – pooling of IP, and project contribution

Collective interface/leverage with certified vendors

Collaborative environment, expert facilitation of projects and management – Enabling Open IT


Open IT: What is Different

Membership Value Proposition

OCAvalanche

Gartner Executive Program

Management

Consultants

User Groups

Industry Groups

Standards Groups

IP Sharing Structure

Yes No No No No Maybe

Best IT Solutions (BITS)

Yes No Maybe No No No

Certified Vendor Interface

Yes No No No No No

IP Contribution (Open IT)

Yes No No No No No

Cum benefit from Members

Yes No No No No No

Sharing Resources/Results

Yes No No Maybe Maybe Maybe


Critical Success Factors

Do Culture Early Concrete Results Selecting Projects and Collaborations that “matter” Participative architecture


Participative Architecture

Number of Members

Cum Benefit to each Member

IP Contributions

Project Contributions


Open IT IP Contribution from Sun

CIO Handbook Sun IT Enterprise Architecture Sun IT Architecture / Summary of Major Architectural Components Sun IT Enterprise Architecture FY04-FY08 Sun IT Enterprise Architecture FY04-FY08 Executive Summary Sun IT Application Architecture Sun IT Portal Architecture Strategy Overview Edge WLAN Architecture Sun IT SOA Sun Software Vision Sun IT Metrics Dashboard Fact Sheet Sun IT Application Developer Handbook Canary Load Monitor tool Issue Tracker tool









Input

Max RaynerEVP Products & ServicesChief Information OfficerSurfControl

August 2006


Why I Joined Open IT

IT is too important to approach as a hobby

IT is needlessly plagued by appalling incompetence

IT gets away with malarkey that shouldn't be tolerated

IT leaders need know-how & market power to succeed


Getting IT Under Control

IT 1.0: Fundamental Engineering Flaws• IT/IS is at the "Apollo 1" stage

IT 1.5: Can We Avoid Further Disasters?• Why do we keep having "Challenger" events?


Getting IT Under Control

IT 2.0: The Future of IT• Leveraging community to secure success • From trial and error to the "industrialization of IT"• "Building to code" rather than "coding to build"

In Engineering We Use Code Books• Nobody wastes time re-inventing trivia• Code books reflect prior wisdom• Proven design patterns assure success


Why I Joined Open IT - Others

Repeated Problem Solving Need for Collaboration Going beyond groups that talk to projects that walk Cumulative benefit from others – knowledge, IP,

Projects Project facilitation by experts Simple means of managing IP

• Avoiding commercial and Open Source pitfalls Results and Metric Driven Ability to meet others with shared interests








The Corporate Technology Collaboration and Exchange

History of PROJECT:avalanche

A gated community (Cooperative) that enable Avalanche Members:To contribute, legally distribute, and collaborate on shared intellectual property

Application code and components, documents, or spreadsheets, etc.

The Avalanche Cooperative Mission:Lower the overall cost of ownership for solutions focused on:

infrastructure, operational, and end user requirements

Through aStructured collaboration environment and process that facilitates intellectual

property collaboration and acquisition of the technical and business solutions.

Built by Corporations for the Benefit of Corporations


History

PROJECT:avalanche ObjectiveEvaluate the viability of a model that would

enable corporations to reduce costs by leveraging a model similar to open source.

Business CharterOctober 2003

February 2002 March 2004

Built by Corporations for the Benefit of Corporations

MissionSolve common problems once

through structured collaboration.

Founding Principles1. Created and controlled by corporations to serve

their information technology interests2. Legal IP sharing infrastructure3. Easy to use collaboration environment4. Structured process to engage5. Independently managed6. Measured by the value created


PROJECT:avalanche History

Digital Asset Management (DAM)• Members: Best Buy & Jostens

• Business requirement: joint development and deployment of a DAM solution

• WAS NOT SUCCESSFUL- No legal infrastructure to address IP issues- No shared workspace or repository

• Result- Formation of PROJECT:avalanche


Linux Application ServerResearch Project Members: Jostens, Select Comfort, Imation, Merrill Corporation

• Business requirement: - Understand the operational and deployment impact of using Linux at

the Oracle eBusiness application server layer- Theory: Linux will work, but what are the operational and

performance impacts using real world data• Vendor led project

- Domain expertise with Oracle, Linux, load / performance tools Research phase successful – No deployment Result

• White paper with results and specifics on deployment requirements• Deployment cook book with deployment release level requirements• Cook book approach for successful collaborative project execution• Start of the Oracle Collaboration Group


Enterprise Reporting Project

Members: ePredix, PDI, Jostens, Select Comfort

• Business requirement:- Deliver highly formatted reports to a large number of end

users• Commercial solutions did not provide the necessary ROI

- Theory: Open source solution(s) exist that could meet requirements

SUCCESSFUL PROJECT Result

• 6 open source projects comprise solution

• Members saved on average $150,000 with limited staff involvement


Telecommunication Project

Members: Jostens & Select Comfort• Business requirement

- Access to lower telecommunication products• Vendor led project

- Specific domain expertise in telecommunication industry SUCCESSFUL PROJECT – Repeatable Solution Result

• Average member savings 35%• 50% faster contracting and solution development• 75% increase in implementation and cutover to new contract.

Realized savings on average 5 months sooner than planned.


Oracle Collaboration Group Members: 20 Members participating

• Business requirement: - Collaborate on specific issues related to the Oracle 11.5.10 upgrade

process VERY SUCCESSFUL PROJECT Result

• 11.5.10 upgrade areas covered:- Best practices – how to sell internally, project plans, elapse time

reduction 30%- Hardware considerations – requires more hardware than expected- Shared issue & resolution logs

• Expanded collaboration- M & A templates and best practices processes- Start of the Oracle Fusion Collaboration Group- Research into cooperative sandbox for Oracle Fusion collaboration- Research into Oracle eBusiness Suite Collaborative Operations


Lessons Learned

Concept is sound Real value can be delivered to Corporations Requires:

• Independent management

• Structured facilitated process

• Common- Collaboration tools- Workspace’s- IP Repository









Current/Pending Open IT Projects

Founders ForumAugust 4, 2006

Telco

CRM

Desktop

Current

Saved 35%

20 CompaniesParticipating

Phase 1 Complete

Pending

Software as a ServiceSecurity

BITS (best IT solutions)

Potential Projects

IT Governance

•Open Source•M&A

Beyond CIO Dashboard (ITRP)Desktop – Vista or Linux


Project Selection Criteria

Motivated Project Champion At least 3 members Alignment – fits internal list, opportunity for budget

savings, innovation – learning/risk improvement Measurable results achievable Differentiates Open IT from other venues Success will bring believers, more members 12 months duration or less, milestones

• Ideally a reasonable milestone by 10-5


Example: Desktop Project

The Facilitating Process 1. Three or More

Avalanche Members

2. CIO’s Set Direction, Scope, Goals, Team ID

3. Fact Finding Assessment – Issues/Needs/Outputs

4. Roadmap, Action Plan, Monthly/QTR Review

5. Best Practices, Measurement, Continuous Improvement

Milestone Scenario1. Sanmina, Sun, Ricoh, TBD

1. Aug. 4, 2006

2. Phases and scope defined: Open Source – non-office applications

2. Aug. 30, 2006

4. Team Assigned, project reviewed monthly

4. Oct. – Mar.

3. Status and opportunity of each member, options explored, phase 1 - pilot

3. Oct. 5, 2006

5. Results of pilot implementation, ITIL assessment, next steps

5. May, 2007









Proposed Topic: Software As A Service

MainframeMinicomputers

PCs & Client ServerDistributed Apps

Web ServicesTime

ValueValue of

Connecting Applications &

Alteration Agility

Value of Core

Applications


SAAS Ideal Is Attractive…

Traditional Software On-Demand Utility

Build Your Own Plug In & Subscribe


… and SAAS Beats Many Alternatives…R

OI

Time

Go Live~ 12 Months

RiskRisk

<50%<50%SuccessSuccess

27 monthBreakeven

Enterprise Software On Demand Computing

Time

Go Live~ 6 Weeks

Value to Customer

RiskRisk

RO

I

6 monthBreakeven

>90%>90%SuccessSuccess


… but SAAS-to-SAAS and SAAS-to-legacy Integration Can Be Daunting


SAAS Pain/opportunity: Leverage SAAS better

• Scope: Explore Best IT Solutions for SAAS use- Identify critical canonic integrations

• SAAS-to-SAAS and SAAS-to-legacy

- Milestones• Agree on list of interest by October 5th

- Desired output at a later date upon project end• 1) Cookbook with specific how-tos• 2) Suggested prescriptions for vendors along agreed areas

» Could include security, APIs, new standards, etc• 3) Plan and execution to influence vendors as needed


CIO Dashboard and Beyond

Demonstration of Sun Capability Next steps where collaborative efforts makes A what if project proposal

• Suggested Scope

• Desired Output – the successful outcome

• First step milestone by October 5th
















Key Elements to Foster Open IT

Vehicle to enable:• Minimal Legal expense and hassle to collaborate

• Ability to both control and share IP

• Clear corporate structure that allows members to direct the focus and priorities while minimizing management attention

• Scaleable processes – infrastructure, project management, IP distribution, commerce

• User driven projects where vendors are invited as needed

• .org to foster community and Open IT contribution

• Motivated management to facilitate projects, drive growth, and measure performance


Open IT Structure

OpenCountry

Open IT Forum

Open ITSiliconValley

Open ITUniversities

Open ITIndia

Project Project Project Project ProjectProject Project Project Project

Board 2 Open Country 2 Independents 1 Member

2 Members2 Open Country1 Independent

Based on project/group rules: Members can crossover in groups and projects

OpenIT.orgNon Profit

Community Model

Managed by Open IT Forum


Open IT IP Flow

OpenCountry

Open IT Forum


Open ITUniversities

Open ITIndia


Open IT.orgNon Profit

Community Model

IP from Projects can flow:•Back to project members•To the Sponsoring Group•Other Groups or all members•.org•Forum

IP Contribution by Members to:• Projects•Groups•Forum•.org

IP from Groups can flow:•To members•To other Groups•All members•.org•Forum


Open IT Business Model

OpenCountry

Open IT Forum


Open ITUniversities

Open ITIndia



•Forum initial capital from Open Country•Employees – initially OC, later Forum•Income Sources – Annual Member fees, transactions from IP and project content•% Fees go to Groups (10-20%)•May commercialize some IP•Provide Infrastructure for IP, etc

Forum

• Initial Capital from Open Country•Employees – initially Forum, later .org•Income Sources – Annual Member fees, % transactions from IP and project content•Contributes back to the community – Open IT, other charitable activities related to IT

. org

•Initial Capital from Forum•Employees from Forum•Income Sources - % Member Fees, % of transactions from Projects/IP

Groups

Projects •Facilitator provided by Forum•Resources provided by Project members•Vendors/Consultants can be invited – they can contribute resources and IP•Project outputs can be distributed for free or fee•Forum has first right to commercialize


Open IT Legal Structure

OpenCountry

Open IT Forum


Open ITUniversities

Open ITIndia



Projects are governed by a standard agreement•Requires 3+ members and a designated lead•Options provided for use of IP, commercialization of Project output•Projects follow a standard process – measured value •Project have a finite life

Non-profitPromotes Open IT communityMembers automatically belongVendors, non-members, individuals can joinIP Managed by the Forum

. org

C Corp Subsidiary of Open Country•Fire Protection is of Open Country change in control•Managing Entity for “Group” subsidiaries of Forum•Managing Director for Open IT .org

Forum

Groups are subsidiaries of ForumGroup size 20-40Minimal governanceForum provides ManagementFocus and Direction – Exec Steering committeeIP managed by Forum

Groups









Projects

First Priority • Dashboard• Sox• Security

Second Priority• Desktop• Open Source BITS• Data Warehouse• SAAS• Vendor Management

Other • VoIP• Oracle API for Web Services


Project Definition

Define Project Scope Output Milestones – Oct 5th

Resources Next Step









Projects

First Priority – First milestone, Oct 11 2006. • Dashboard – Sun (Leslie Lambert/Robert Worall) and Ricoh (Sean

Magee)• Sox – Sanmina (Vin Melvin) and Photon Dyanamics (Lee Penning)• Security – Agile (Sunny Azadeh) and Surf Control (Max Rayner)

Second Priority• Desktop• Open Source BITS• Data Warehouse• SAAS• Vendor Management

Other • VoIP• Oracle API for Web Services


Project Charter

Derive value for members by sharing, identifying, and developing proven techniques and tools to manage SOX related controls.


Deliverables/Output

A baseline IT general controls framework that is consistent across all member companies.

• Define a standard set of controls from existing company inputs

• Rationalize non-consistent controls against PCOAB guidance to establish core baseline for members.

• Identify for core controls best mgmt processes and automation techniques or opportunities.


Deliverables/Output

Share Application Control Frameworks between companies

Identify Common Application Controls

Establish Common Interface list and programming related control guidelines, (timeliness, accuracy, completeness)

Propose a packaging structure for controls documentation

At Project Conclusion, Prepare and present to partners a complete lessons learned session, results of rationalization, and proposal for potential next phase(s).

Product: A controls documentation repository for sharing review. A review of controls viewed as necessary and unecessary. A standard set of controls for IT GC and Application Related.


Security Project

Step 1: Obtain security policies and procedures from Sun and other Members.

Step 2: Schedule series of events to discuss best practices approach for security policies and procedures.

• GOAL: Arrive at an OpenIT Best Practice for Security Step 3: Discuss Architecture options for implementing

security Step 4: Obtain lists of current projects from Members

and filter based on security related topics Step 5: Determine if a collaborative security project(s) is

feasible among the OpenIT Members Review at October 11th Meeting.


Dashboard Project

Define• Make Sun Dashboard easy to install, generic, less Sun specific, “scope & scrub”• Possibly create an appliance for ease of deployment

Scope• Need to decide which modules to make “core”• Make Dashboard architecture flexible, easy to expand with other data feeders

Output• Easy installable modules• Comprehensive documentation set• ROI tools

Milestones• Scope of work document complete by September• Milestones to be determine the scope of work document

Resources• Sun, Ricoh can allocate a person, Andrew Black to also look a code

Next Steps• Have 5 look at product to help determine needs and what core set of functionality should

be included. Use Webex to do this. Leslie has action item to complete by end of month.


Summary Next Meeting – Oct 11 Issues to Address

• Clarifying the uses cases between the Forum, Groups, Projects Actions

• Describe more clearly the project management approach, Open IT Forum facility role, member role, third party role

• Talk to current Cannery users and see if they want to join the group• Set up rules re use of member people (anti-poaching), defining who teams

collaborate at both the group and project level• Open IT Forum to collect use cases from members and evolve infrastructure

support. • Open IT Forum will review with members their list of both funded and

unfunded projects and then facilitate member communication• Open IT Forum will gather Open IT contribution from members, and add

them to the list available IP/data• Open IT Forum will draft legal structure and review with members


Open IT Forum Overview

Solving IT Once

August 2006


Backup Slides


Open IT Forum Membership Options

Membership Gold Silver Bronze Contributor

Annual Dues $100K $40K $20K No Fee

No. of Collaborative Projects

5 2 1 0

Project Leadership Yes Yes No No

Exec Policy Board Yes No No No

Cooperative Board of Director Opportunity

Yes No No No

Access to Reports, Roadmap, Data

All Collaborative Projects

Collaborative

Projects

Summary + Web

community


ITRP Vision

ERP Functions for IT “Run your shop like you know you

should be”• Assets (Software, Hardware,

Network)- What are they- Where are they- Contracts- Ongoing tracking

• Performance• Lifecycle management

• Projects- Formation- Staffing- Status- Financials

• People- Project assignments- Resource availability- Contractor management- People Management

• Skills inventory• Retention and

development plans• Financials

CIO Sr. IT Business

ITRPCollaborationEnvironment

Member onboarding data used effective collaboration

Project data

Ruby on RailsMySQL

Sun MetricsCIO dashboard

Project datamodel

ERP like datamodel

Java / PHPOracle

Sun Canary

Agent based monitoring tool

Data capture

Scripting language performance data

Java / PHPOracle

Coeus Savvy

Asset management

Financial management

telecomm

Contract management

Cold FusionSQL/Server

HotGigsContractor MGT

TBDFTE MgmtSkills etc

LINKAGE to Projects

Cold Fusion Ruby on RailsSQL/Server

Pentaho – Data Warehouse / Analytics / Reporting / Dashboards

Dashboards & views for IT & BusinessHosted application

Outgrowth of the Avalanche Onboarding ProcessCould be delivered as a suite of applications


Release 1 Approach

OperationalUsers Operational

UsersOperational

UsersOperational

UsersOperational

Users

OperationalUsers

CIO Sr. IT Business



Project data

Ruby on RailsMySQL

Sun MetricsCIO dashboard

Project datamodel

ERP-like datamodel

Java / PHPOracle

Sun Canarymonitoring tool

Data capture

Performance data

Java / PHPOracle

Coeus Savvy

Asset management

telecomm finc’l mgmt

Contracts



FTE MgmtSkills etc

Linkage to Projects






Ruby on RailsMySQL

Release 2 Approach

OperationalUsers

CIO Sr. IT Business

Java / PHPOracle


MORE Common Operational UI

OperationalUsers

Operational InterfacesMS

Project

HelpDesk Tools ESM

Tools

Avalanche MembersBuild & share interfaces

to common operational tools

Discovery Tools

Teleco Bills



Project data

Sun Canarymonitoring tool

Data capture

Performance data

Coeus Savvy

Asset management

telecomm finc’l mgmt

Contracts


FTE MgmtSkills etc

Linkage to Projects


Deliver ITIL Capabilities

Several releases down the road

CIO

Sr. IT

Business

Operational Users

Projects

ESM

Help Desk

Other