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

© 2012 IBM Corporation

ID105 - Fortify Your IBM® Lotus® Notes® and IBM® Lotus® Domino® Infrastructure Against a Competitive Attack

Michael [email protected]

Wouter [email protected]

mailto:[email protected]

2 | © 2012 IBM Corporation

Agenda■ Define the Scenario

■ Discuss the Methodology

■ Review Customer Example


Scenario - A new version of Notes and Domino is released, and...

■ “The Business” views this as an opportunity to re-visit the Notes decision ─ A strong desire to move to the “Cloud”─ New executives have come on board and they are unfamiliar with the Notes interface─ Competitors are whispering to anyone that will listen that Notes/Domino is a dead product

– “You are going to be the last company running Lotus Notes”─ Third Party vendors ship products with Microsoft® integration OOB. Limited or no support for

Notes/Domino integration

■ You believe that “The Business” is being irrational ─ You instinctively know that an upgrade is more cost effective than a migration─ You think that there is a way to prove that Notes/Domino is the right choice for the company,

but you do not know where to start


Why Develop a Business Case?■ Understanding the costs helps you make better decisions

─ What are my current costs today to support my Notes/Domino environment?─ Which platform is best suited for my workload?─ Which deployment model SaaS, On-Premises, or Hybrid is best suited for my needs?─ Is competitive offering better suited than an upgrade?

■ Numbers are real, not imagined─ Technical challenges are just a speed bump to someone determined to move off of

Notes and Domino.─ Emotions are difficult to control. Numbers have a sobering effect





| © 2012 IBM Corporation

Recommended Approach

Baseline Optimize Evaluate

● Measure end user demand characteristics as the basis of compare

● User Profiling● Document I/O● Session Concurrency● Network Traffic● Session Duration● Database Transactions● Storage Usage Profile● Compression Usage

● Determine if the current environment can be optimized to reduce overall cost – “Future State”

● Server Consolidation● Storage Reduction● Network Utilization● End User Patterns● Domino Platform● Licensing Optimization

● Compare “Future State” TCO with Alternatives

● Cloud vs. On-premises● Competitive Alternatives

including migration costs






Domino Environment Overview – 7 days of activity

Baseline


End User Demand Characteristics

Baseline


Database Usage Patterns

Baseline


Session Concurrency by Server

Baseline


Overall Session Concurrency

Baseline


Database Storage Usage

Baseline


Network Compression

Baseline


Server Consolidation Potential

131 Distributed Non-Clustered

Servers over 100 Distinct Locations

* 8 Consolidated Servers Clustered in 3 Data Centers

* Based on Session Max Concurrency of 7,631

Optimize


Storage Consolidation Potential w/o DAOS

Optimize


Network Demand From End User - Dallas

Dallas

577 kbps w/o Network CompressionEnabled

Optimize


Top 5 End User Demand Characteristics (Documents Read)

Optimize


Domino Platform Optimization and Licensing Review

− Domino Platform Optimization● Does optimization on a different platform provided better TCO● Does LotusLive Notes make sense for some or all of your mail users

− Licensing Review● Are you on the right licensing model that matches your “Future State”● Are you leveraging the entitlements that come with your Notes Client licensing

Optimize


Financial Concepts

■ Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed forward-looking business decisions that will allow them to be better equipped in their management and control functions.

■ Total Cost of Acquisition (TCA) is a managerial accounting concept that includes all the costs associated with buying goods, services, or assets.

■ Total Cost of Ownership (TCO) is the life cycle cost view of an asset, which includes acquisition, setup, support, ongoing maintenance, service and all operating expenses. It focuses attention on the sum of all costs of owning an asset, as opposed to the initial or vendor cost, and is useful in outsourcing decisions.

Evaluate


TCO: A Range of IT Cost Factors - Often not Considered

25

Integration– Integrated Functionality vs. Functionality to

be implemented (possibly with 3rd party tools)

– Balanced System– Integration of / into Standards

Further Availability Aspects– Planned outages– Unplanned outages– Automated Take Over– Uninterrupted Take Over (especially for DB) – Workload Management across physical

borders– Business continuity– Availability effects for other applications /

projects– End User Service– End User Productivity– Virtualization

Skills and Resources– Personnel Education– Availability of Resources

Availability– High availability– Hours of operation

Backup / Restore / Site Recovery

– Backup– Disaster Scenario– Restore– Effort for Complete Site Recovery– SAN effort

Infrastructure Cost– Space– Power– Network Infrastructure– Storage Infrastructure– Initial Hardware Costs– Software Costs– Maintenance Costs

Additional development and implementation

– Investment for one platform – reproduction for others

Controlling and Accounting– Analyzing the systems– Cost

Operations Effort– Monitoring, Operating– Problem Determination– Server Management Tools– Integrated Server Management –

Enterprise Wide

Security– Authentication / Authorization– User Administration– Data Security– Server and OS Security– RACF vs. other solutions

Deployment and Support – System Programming

– Keeping consistent OS and SW Level– Database Effort

– Middleware– SW Maintenance– SW Distribution (across firewall)

– Application– Technology Upgrade– System Release change without interrupts

Operating Concept– Development of an operating procedure– Feasibility of the developed procedure– Automation

Resource Utilization and Performance

– Mixed Workload / Batch– Resource Sharing

– shared nothing vs. shared everything– Parallel Sysplex vs. Other Concepts– Response Time– Performance Management– Peak handling / scalability

Routinely Assessed Cost Factors

Evaluate


How to Approach a Business Case Comparison

■ Bottom Up is an approach to creating a TCO model from the ground up. This requires working across IT disciplines to accurately estimate.

■ Top Down is an approach to creating a TCO model from a high level from typically a average user or server cost. This can be conducted with little or no input from IT stakeholders, but is highly subjective and difficult to defend. The value of conducting a top down TCO analysis is that it could open a dialog when the business is unwilling to consider other options.

Realistically, most if not all business case comparisons are a combination of the two approaches. The key is to document your assumptions and be able to defend your numbers to the business.

Evaluate


Sizing the Competition

■ HP® Sizing Tools─ http://h71019.www7.hp.com/ActiveAnswers/Secure/71110-0-0-0-121.html

■ Dell® Sizing Tools─ http://content.dell.com/us/en/enterprise/email-solution-strategy-design.aspx

■ IBM Sizing Tools─ http://www-304.ibm.com/partnerworld/wps/sizing/sizingguides.jsp

Evaluate

http://h71019.www7.hp.com/ActiveAnswers/Secure/71110-0-0-0-121.html


TCO ON-PREMISES with ECALs

IBM Annual Cost

MSFT Annual Cost

Annual Costs Savings Factor

2.1 Server Hardware $92,895 $367,261 $274,366 3.95 2.2 Network Hardware $18,579 $99,160 $80,581 5.34

2.3 Hardware Maintenance $8,309 $139,926 $131,617 16.84 2.4 Operating System $649 $89,503 $88,854 137.81

2.5 Administration $420,800 $1,294,455 $873,655 3.08 2.6 Additional Disk Storage $1,053,600 $1,182,200 $128,600 1.12

2.7 Power and Cooling $2,306 $96,120 $93,814 41.68 2.8 Application Software $614,200 $2,337,903 $1,723,703 3.81

2.9 Application Support Services $- $624,880 $624,880 - 2.10 Deployment and Migration $33,469 $3,563,300 $3,529,831 106.47

2.10 Co-exsitence $- $1,242,920 $1,242,920 - ON-PREMISES ANNUAL TCO FOR LS Demo $2,151,913 $10,670,367 $8,518,454 4.96

Evaluate


2.1 Server Hardware

IBM MSFT Back to TopInitial Capital Expense $278,685 $1,101,782 Number of servers multiplied by server unit cost

Annualized Expense $92,895 $367,261 Initial capital cost divided by server useful life

IBM Hardware

No. of Physical Servers* x Cost per Server = Initial Cost ÷

Server Useful Life

(Years)Annual Server

ExpenseHP ProLiant DL580 G7 (2.13 Ghz - 2p/8c, 105W per Core, 64GB RAM) 6

$13,679$82,074 $27,358

IBM Power 720 Express Model 8202-E4B3 (3 Ghz - 1p/8c, 40W per Core, 32GB RAM) 6 $32,768 $196,611 $65,537

$278,685 $92,895 * adjusted for clustering

MSFT Hardware

No. of Physical Servers* x Cost per Server = Initial Cost ÷

Server Useful Life

(Years)Annual Server

ExpenseAudiocodes Survivable Branch Appliance 6 $10,000 $60,000 $20,000 HP ProLiant DL580 G7 (1.86 Ghz - 2p/4c, 85W per Core, 64GB RAM) 26

$8,359$217,334 $72,445

HP ProLiant DL980 G7 (2 Ghz - 4p/6c, 105W per Core, 128GB RAM) 12 $36,499 $437,988 $145,996 HP ProLiant DL980 G7 (2.4 Ghz - 4p/10c, 130W per Core, 256GB RAM) 6

$64,410$386,460 $128,820

$1,101,782 $367,261

3 Years

3 Years

Evaluate


2.2 Network Hardware

IBM MSFT Back to TopInitial Capital Expense $55,737 $297,481 Initial capital cost of servers multiplied by network cost (%)

Annualized Expense $18,579 $99,160 Initial capital cost divided by hardware useful life

Initial Server Cost x

Network Cost (% of Initial Server

Cost) =Initial Network

Cost ÷

Network Useful Life

(Years) =

Annual Network Expense

IBM Network Hardware $278,685 20% $55,737 3 Years $18,579

Initial Server Cost x

Network Cost (% of Initial Server

Cost) =Initial Network

Cost ÷

Network Useful Life

(Years) =

Annual Network Expense

MSFT Network Hardware $1,101,782 27% $297,481 3 Years $99,160

Evaluate


2.3 Hardware Maintenance

IBM MSFT Back to TopAnnualized Expense $8,309 $139,926 Initial capital cost of hardware (servers & network) multiplied by annual maintenance cost (%)

Initial Server Cost +

Initial Network Cost =

Total Hardware Cost x

Annual Maintenance

Cost (%) =

Annual Maintenance

ExpenseIBM Annual Hardware Maintenance* 27,358 $55,737 $83,095 10% $8,309

* Hardware maintenance is included in the cost of the Power 7

Initial Server Cost +

Initial Network Cost =

Total Hardware Cost x

Annual Maintenance

Cost (%) =

Annual Maintenance

ExpenseMSFT Annual Hardware Maintenance 1,101,782 $297,481 $1,399,263 10% $139,926

Evaluate


2.4 Operating System

IBM MSFT Back to TopInitial Capital Expense $1,948 $268,510 Number of servers multiplied by server software unit cost

Annualized Expense $649 $89,503 Initial capital cost divided by server useful life

OS Cost per Server

3 yr Windows Enterprise $3,167 3yr Windows Standard $974

Total Server Demand x

Operating System Cost per Server = Initial Expense ÷

Server Useful Life =

Annual Expense

IBM Operating System Charges (Enterprise) 0 $974 $0 $0 IBM Operating System Charges (Standard) 2 $974 $1,948 $649 Total $1,948 $649

* The price of AIX and Linux is included in the cost of the Power 7 * From above section 3.1, above

OS Cost per Server Exchange Lync Total

3 yr Windows Enterprise $3,167 20 48 80 3yr Windows Standard $974 16 - 16

Total Server Demand x

Operating System Cost per Server = Initial Expense ÷

Server Useful Life =

Annual Expense

MSFT Operating System Charges (Enterprise) 80 $3,167 $253,366 $84,455 MSFT Operating System Charges (Standard) 16 $974 $15,144 $5,048 Total $268,510 $89,503

* From above section 3.1, above

3 Years

3 Years

SharePoint12 -

Evaluate


2.5 Administration

IBM MSFT Back to TopAnnualized Expense $420,800 $1,294,455 Administrators needed multiplied by user-defined average annual salary per FTE

Total Number of Servers ÷ Servers per FTE =

Number of FTE Needed x

Annual Salary per =

Total Annual Cost

IBM Administration Costs 34 50 1 $105,000 $105,000

Total Number of Users ÷ Calls per Day =


Annual Salary per =

Total Annual Cost

IBM Help Desk Costs 12,000 2,580 5 $55,000 $275,000

Total Number of Servers x

Monitoring Cost per Server per

Year =Total Annual

CostIBM Monitoring Costs 34 $1,200 $40,800

Annual Administration Costs $420,800

Total Number of Servers ÷ Servers per FTE =


Annual Salary per =

Total Annual Cost

MSFT Administration Costs 150 20 8 $105,000 $840,000

Total Number of Users ÷ Calls per Day =


Annual Salary per =

Total Annual Cost

MSFT Help Desk Costs 12,000 2,580 5 $55,000 $275,000


Monitoring Cost per Server per

Year =Total Annual

CostMSFT Monitoring Costs 150 $1,200 $179,455

Annual Administration Costs $1,294,455

Evaluate


2.6 Additional Disk Storage

IBM MSFT Back to TopInitial Capital Expense $2,026,800 $2,412,600

Annualized Expense $1,053,600 $1,182,200

Total Number of Mailboxes x Mailbox Size (GB) =

Number of (GB) Needed x

Cost per (GB) =

Total Capital Expesnse

IBM Mailbox Storage Requirements 12,000 5 GB 60000 $3.78 $226,800

Total Number of Users x

Desired User Storage (GB) =


Cost per (GB) =

Total Capital Expesnse

IBM Collaboration Storage Requirements 12,000 25 GB 300000 $6.00 $1,800,000

Total Capital Expesnse ÷

Storage Useful Life =

Total Annual Cost

Annualized Requirements 2,026,800 3 Years $675,600

Total Number of (GB)

Backed up x

Backup Storage Cost per GB per

Year =Total Annual

CostIBM Backup Requirements 360,000 $1.05 $378,000

Annual Storage Costs $1,053,600

Total Number of Mailboxes x Mailbox Size (GB) =


Cost per (GB) per =

Total Annual Cost

MSFT Mailbox Storage Requirements 12,000 5 GB 60,000 $5.91 $354,600

Total Number of Users x

Desired User Storage (GB) =


Cost per (GB) per =

Total Annual Cost

MSFT Collaboration Storage Requirements 12,000 25 GB 300,000 $6.86 $2,058,000

Total Capital Expesnse ÷

Storage Useful Life =

Total Annual Cost

Annualized Requirements 2,412,600 3 Years $804,200 Total Number

of (GB) Backed up x

Backup Storage Cost per GB =

Total Annual Cost

IBM Backup Requirements 360,000 $1.05 $378,000

Annual Storage Costs $1,182,200

Evaluate


2.7 Power and Cooling

IBM MSFT Back to TopAnnualized Expense $2,306 $96,120 Annual power usage multiplied by user-defined electricity price per kW.

IBM HardwareTotal Number

of Servers xNameplate Power per Server (Watts) x

Power Conversion

Factor =

Average Server Power Usage

(Watts) xHours per

Year ÷ Watts/Kilowatt =

Server Annual Power Usage

(kW)HP ProLiant DL580 G7 (2.13 Ghz - 2p/8c, 105W per Core, 64GB RAM)6 1680 5,040 8,736 1000 44,029IBM Power 720 Express Model 8202-E4B3 (3 Ghz - 1p/8c, 40W per Core, 32GB RAM)6 320 960 8,736 1000 8,387

6 960 8,387

Server Annual

Power Usage x PUE =

Infrastructure Annual Power

Usage (kW)

Total Annual Power Usage

(kW) x Price/kW hour =Annual Power

ExpenseTotal Annual Power Usage 8,387 2.5 12,580 20,966 $0.11 $2,306

MSFT HardwareTotal Number

of Servers xNameplate Power per Server (Watts) x

Power Conversion

Factor =

Average Server Power Usage

(Watts) xHours per

Year ÷ Watts/Kilowatt =

Server Annual Power Usage

(kW)Audiocodes Survivable Branch Appliance 6 150 450 8,736 1000 3,931HP ProLiant DL580 G7 (1.86 Ghz - 2p/4c, 85W per Core, 64GB RAM)26 680 8,840 8,736 1000 77,226HP ProLiant DL980 G7 (2 Ghz - 4p/6c, 105W per Core, 128GB RAM)12 2520 15,120 8,736 1000 132,088HP ProLiant DL980 G7 (2.4 Ghz - 4p/10c, 130W per Core, 256GB RAM)6 5200 15,600 8,736 1000 136,282

50 40,010 349,527

Server Annual

Power Usage x PUE =

Infrastructure Annual Power

Usage (kW)

Total Annual Power Usage

(kW) x Price/kW hour =Annual Power

ExpenseTotal Annual Power Usage 349,527 2.5 524,291 873,818 $0.11 $96,120

50%

50%

Evaluate


2.9 Application Support Services

IBM MSFTAnnualized Expense $0 $624,880 Initial support contract costs

Support Packs x Hourly Rate = Annual Cost

IBM Support Costs

Unlimited 24x7

Telephone $0 $0

Hourly incidents

purchased in minimum

blocks of 40 x Hourly Rate = Annual CostMSFT Support Costs 2920 Hours $214 $624,880

Evaluate


2.10 Deployment and Migration

IBM MSFT Back to TopAnnualized Expense $33,469 $3,563,300 Number of server images to deploy multiplied by the number of man hours required to deploy the server image plus migration costs


Number of Man Hours =

Total Number of Man Hours

Required x Hourly Rate =

Total Deployment

CostIBM Deployment Planning Costs 34 18 612 $55 $33,469

Total Number of Mailboxes x

Upgrade Cost per Mailbox =

Total Annual Cost ÷

Length of Migration =

Annual Migration

CostIBM Mail Upgrade Costs to Version 8.5.2 0 40 $0 3 Years $11,156

Annual Deployment and Migration Costs $33,469


Number of Man Hours =


Required x Hourly Rate =

Annual Deployment

CostMSFT Deployment Costs 150 26 3889 $55 $212,680

Total Number of Mailboxes x Cost per Mailbox =

Total Migration Cost ÷


Annual Migration

CostMSFT Mail Migration Costs 12,000 $39 $468,000 3 Years $156,000

Total Number of

Applications xNumber of Man

Hours =


Required Hourly Rate =

Total Application Migration

MSFT Application Migration Costs 3,351 26 87126 $110 $9,583,860

Total Application Migration ÷


Annual Migration Cost

Annual MSFT Application Costs 9,583,860 3 Years $3,194,620

Annual Deployment and Migration Costs $3,563,300

Evaluate


2.11 Co-existence

IBM MSFTAnnualized Expense $0 $1,242,920 Annual Costs to support a Notes & Domiino infrastructure during a migration.

Hardware

Number of Production

Domino xIBM Server Run Rate =

Annual Run Rate

End of Year 1 66 $9,960 $657,360 End of Year 2 33 $9,960 $328,680 End of Year 3 8 $9,960 $79,680

$1,065,720

Server Software

Number of Production

Domino Servers PVUs x

Domino Server Renewal Rate per

PVU =Annual

Software CostEnd of Year 1 26400 $42.00 $1,108,800 End of Year 2 13200 $42.00 $554,400 End of Year 3 3200 $42.00 $134,400

$1,797,600

Annualized Co-existance Server CostsCo-existence

Expense ÷Server Useful Life

(Years)* = Annual ExpenseHardware $1,065,720 $355,240 Software $1,797,600 $599,200

$2,863,320 $954,440

Annual Client Software RenewalDomino

Users xNotes Client

Renewal Rate =Annual

Software CostEnd of Year 1 12,000 $24.04 $288,480 End of Year 2 12,000 $24.04 $288,480 End of Year 3 12,000 $24.04 $288,480

$865,440

Annualized Co-existanceClient CostsClient

Software ÷Server Useful Life

(Years)* = Annual Expense$865,440 3 Years $288,480

Total Annualized Co-existance Costs Server Costs + Client Costs = Annual Expense$954,440 $288,480 $1,242,920

3 Years

Evaluate


TCO On-Demand

IBM Annual Cost

MSFT Annual Cost

Annual Costs Savings Factor

3.1 Collaboration Services $864,000 $3,888,000 $3,024,000 4.50 3.2 Additional Service Offerings $872,400 $1,980,000 $1,107,600 2.27

3.3 On-Premises Infrastucture $99,600 $19,920 $(79,680) 5.00 3.4 Application Software $100,800 $- $(100,800) -

3.5 Desktop Client Upgrade $- $- $- - 3.6 Migration Services $240,000 $468,000 $228,000 1.95

3.7 Power & Cooling $12,108 $38,198 $26,090 3.15 CLOUD ANNUAL TCO FOR LS Demo $2,176,800 $6,355,920 $4,179,120 2.92

Evaluate


Evaluate


Evaluate

Microsoft® TCO Comparison On-Demand vs On-Premises


Evaluate

TCO Comparison On-Premises IBM vs. Microsoft®


Evaluate

TCO Comparison On-Demand IBM vs. Microsoft®


Questions


Legal disclaimer© IBM Corporation 2012. All Rights Reserved.

The information contained in this publication is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this publication, it is provided AS IS without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this publication or any other materials. Nothing contained in this publication is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software.

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