and Disaster Recovery Environment Corporate Technologies, Inc.
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1 A Presentation from the Infrastructure Services Group: To ACME Sciences Group Virtualization Assessment of Production and Disaster Recovery Environment Corporate Technologies, Inc. October 19, 2009
2 Virtualization Assessment Overview: ACME Sciences Group (ASG) engaged Corporate Technologies to conduct an analysis of the IT Infrastructure to assess the potential impact of adopting server virtualization technologies and developing a Disaster Recovery model based on virtualization. The activity resulted in Corporate Technologies providing recommendations pertaining to virtualization, storage consolidation, and disaster recovery. Also provided are basic financial models which are used in calculating ROI. Method: The six week activity involved applying a capacity measurement tool to collect data from the infrastructure. The accumulated data was analyzed for consolidation i and optimization i i opportunities i using virtualization technologies. Based upon the findings, CTI crafted high level configurations and calculated the projected savings using expense figures from ASG, average metropolitan area utility and facilities costs, and current list prices for new equipment. 2
3 Requirements ASG provided the following requirements used as the basis to evaluate virtualization opportunities Meet / exceed required performance metrics Production environment is able to sustain an entire server and/or storage controller failure without having a noticeable impact on performance Meet / exceed disaster recovery capabilities DR site should be capable of running approximately 75% of all machines in a reduced performance capacity Provide maximum availability and redundancy Meet or exceed current SLAs for application availability Provide room for an estimated 12 months of server / storage growth 3
4 Findings (Server Virtualization) ASG is an excellent candidate for server virtualization Server virtualization of production environment could yield an ROI of 396% over a three year period with a payback rate of 2.9 months. ** Overall low systems and storage utilization: Average CPU Utilization: 4.03% Peak CPU Utilization is: 8.78% All 69 out of 81 systems selected are eligible for consolidation ASG application suite receptive to virtualization Consolidation ratio is 69 to 3, representing a 96% decrease in total physical systems Virtualization will significantly simplify Disaster Recovery efforts ** Thi l l ti i b d fi i l d t i f ti th d ** This calculation is based on financial and systems information gathered during the assessment. A 3 year depreciation cycle was used. Where financial information was not provided local industry averages were used. Actual hardware and implementation costs, and other factors may vary these findings dramatically. Storage costs are not included. 4
5 Findings (Server Virtualization) Existing systems performance utilization charts indicate low utilization i Average CPU Utilization 4.0% Peak CPU Utilization 8.8% Graphs depicts processor utilization over the duration of the assessment and the distribution of server utilization. 5
6 Findings (Server Virtualization) Server virtualization of production environment could yield an ROI of 396% and a payback rate of 2.9 months with a reduced capital outlay of only 156K 3 Year Projection Existing Proposed Savings % of Total Savings System Administration Costs $594K $428k $166K 13% Power Costs $910K $163K $747K 58% Maintenance Costs $61K $18K $43K 3% Capital Costs $486K $156K $330K 26% IT Cost w/depreciation $1,759K $682K $1,077K Return on Investment 396% Payback (Months) 2.9 IT Saving 61% Assumptions: Consolidation is based on 69 physical servers consolidated to 5 virtual hosts Savings are based on an assumed 3 year IT spend of $1,759K with a 3 year capital outlay of $486K All pricing ii is list prices. Actual At capital outlay could be to be less Savings model does not include servers not captured in the assessment This claim is based on financial and systems information gathered during the assessment. A 3 year depreciation cycle was used. Where financial information was not provided local industry averages were used. Actual implementation costs and other factors may vary these findings dramatically. Storage considerations are not included. 6
7 Findings (Storage) ASG is an excellent candidate for storage consolidation Average storage Utilization: 44% Ratio of file systems allocation to total available storage : 93% Average storage utilization indicates over allocation of raw storage Wide range of transaction requirements per second Consolidation would improve overall system performance: Level s transaction requirements Reduces storage bottle necks on highly transactional systems Centralized storage would provide key benefits by: Simplifying virtualization, administration, and disaster recovery options Allowing for thin provisioning, data management options, and future growth 7
8 Findings (Storage) Existing storage performance utilization charts indicates low utilization i Read(KB/sec) File System Utilization (%) Total Disk Capacity Write(KB/sec) 2.45 TB 100 Total File System Capacity: 2.3 TB Average Storage Utilization 43.8% Average Reads /sec 1020 Average Writes/sec 457 Average IOPS 39 0 Graphs depicts storage utilization over the duration of the assessment. 8
9 Recommendations (Virtualization) CTI recommends virtualization of entire the production server environment Virtualization of entire ASG production servers would: Increase server utilization Lower capital and operating costs Improve application availability and portability Improve application and system recovery Additionally, virtualization of production servers will: Simplify DR Environment Reduce the number of physical systems Reduce the cost of the DR environment Reduce the complexity of the DR environment Improve the reliability of the DR environment CTI recommends the following hardware platform for production enterprise servers 5 Enterprise class servers consisting of: 8 CPUs, MB memory, 2 1GB NICs CTI recommendations meet or exceed ASG requirements 9
10 Recommendations (Virtualization) CTI recommends 5 enterprise class servers in the production environment Recommendation is based off of the following factors: Base line of 3 enterprise class servers Data collected from the production environment ASG requirements Servers not included in the data collection Clustering requirements Total Systems Chart below is used as a based line in sizing the proposed virtualization environment Before Virtualization Eligible Systems Consolidation Scenario and Platform Virtual Hosts Virtual Host CPU Utilization Virtual Memory Utilization With Virtualization Average Memory Per VM Racks Saved Eligible System Consolidation Ratio Total System Consolidation Ratio Moderate Consolidation % 58.19% 2.25 GB 4 96% 96% Scenario Aggressive Consolidation % 58.19% 2.75 GB 4 96% 96% Scenario The moderate scenario assumes max. loading of 70% CPU,70% RAM utilization, max 3000 IOP/s, 85% page file usage, memory pages/sec, 2147MB of file cache and a CPU queue of 4. The aggressive scenario assumes max. loading of 85% CPU,85% RAM utilization, max IOP/s, 90% page file usage, memory pages/sec, 2147MB of file cache and a CPU queue of 4. 10
11 Recommendations (Storage) CTI recommends ASG consolidate the production storage environment ASG should consolidate the storage environment to: Improve storage utilization Centralize storage management Improve available storage tools ASG should use consolidated storage to: Lower capital and operating costs Improve application availability Improve data management Improve data recovery Lower operational impacts. (i.e. backups) CTI recommends the following hardware platform for the production storage environment: High End clustered SAN class storage, 8.4 TB of raw 15K FC disk (approximately 6 TB usable), 56 TB of raw SATA disk (approximately 38 TB usable) Simplify DR development by: Reducing complexity of storage requirements for DR Improving data movement between production site and DR site Reduces backup time requirements CTI recommendations meet or exceed ASG requirements 11
12 Recommendations (Storage) Description Capital Outlay Capital Outlay Increase Without Disaster Recovery 3 Year Savings ROI Payback months High End Storage $634K $148K $821K 47% 28.8% 22.6 Assumptions: Consolidation is based on 69 Physical Servers consolidated to 5 Virtual hosts Savings S i are based on an assumed 3 year IT spend of $1,759K with a 3 year capital outlay of $486K All Pricing is list prices. Actual capital outlay will most likely be less Savings model does not include systems not captured in the assessment 12
13 Recommendations (Disaster Recovery) CTI recommends ASG implement a disaster recovery site with ihvirtualization i and storage consolidation i Lower cost entry to establish DR Minimal amount of hardware is required System administration workload should not increase DR requirements are simplified: DR model mirrors production Storage is managed as a single entity Virtualization of DR environment should: Improve application availability (SLAs) and data recovery Minimize down time CTI recommends the following hardware platform for DR 3 Enterprise class servers consisting of: 8 CPUs, MB memory, 2 1GB NICs Mid Range SAN class storage, 62 TB of raw SATA disk (approximately 40 TB usable) CTI recommendations meet or exceed ASG requirements 13
14 Recommendations (Disaster Recovery) Disaster recovery with server virtualization and storage consolidation is significantly less costly than implementation of current production environment Description Capital Outlay Capital Outlay Increase With Disaster Recovery 3 Year Savings Disaster recovery (includes virtualization platform and consolidated storage) $460K (350K) $350K 43% Assumptions: Base line disaster recovery is based on mirroring the current production environment in the disaster recovery site. The assumption uses 81 standalone servers with locally attached storage as the failover systems. Capital out lay is calculated as : 81 servers * $10,000 = 810K Other infrastructure costs (network, power, cooling and increased system administrations are not included) All Pricing is list prices. Actual capital outlay will most likely be less 14
15 Next Steps Next steps should focus on validating and refining solution and pricing Refine hardware configuration and financial analysis Detailed workshop planning session to: Validate solution with ASG technology team Develop architecture for production and DR Develop migration strategy and implementation plan Identify services requirements Further analysis and final selection of an approach Finalize hardware requirements and pricing Tune financial analysis to assist in business case 15
16 Summary Virtualization of server environment should generate significant savings to fund storage consolidation which together should enable implementation of disaster recoveryat significantly lower capital costs 3 Years Solution ROI Payback Savings Capitol Outlay (Months) Increase Virtualization 396% 2.9 $1,077K ($330K) Storage 28.8% K $148K The capital costs to implement DR should be dramatically reduce Description Disaster recover (includes virtualization platform and consolidated storage) Capital Outlay Capital Outlay Increase Disaster Recovery Savings $460K (350K) $350K 43% The stability, flexibility and sustainability of the production environment should significantly improve 16
17 Appendices Appendix A Appendix B Appendix C Inventory Overview Virtualization Target Layout Financial Analysis 17
18 Inventory Overview Appendix A Source systems 18
19 Appendix A Inventory Overview Source systems (cont) 19
20 Appendix A Inventory Overview Source systems (cont) 20
21 Inventory Overview Appendix A Source systems (cont) 21
22 Appendix B Virtualization Target Layout 22
23 Appendix B Virtualization Target Layout 23
24 Appendix B Virtualization Target Layout 24
25 Financial Analysis Appendix C 25
26 Enter BASELINE IT TCO Summary Value Below Five Year Straight line Verion 1.0 Four year straight line 16 Q1 Q2 Q3 Q4 YEAR 1 YEAR 2 YEAR 3 Three year straight line 12 Existing Environment: 81 MS Windows/Linux Servers ROI 396.3% Payback 2.9 End Date Current Book Savings 61.2% Depreciation: IT Assume assets fully depreciated INPUT SECTION: - Number of Existing Servers: 81 - New Servers/Year (Growth): 8.1 default 10% of Z11 Planned Upgrades: - New Servers/Year (Refresh): 8.1 default 10% of Z11 81,000 4,050 4,050 4,050 4,050 16,200 32,400 48, , ,000 Average Server Replacement Cost: $10,000 default $7.5k 81,000 4,050 4,050 4,050 4,050 16,200 32,400 48, , ,000 Cost of Maint/Server/Year $500 default $500 - % of Servers more than 3 yrs old 50% default 25% Data Center Improvements - Number of Sysadmins 2 default to Z11/40 POWER CALCULATIONS Total Depreciation 8,100 8,100 8,100 8,100 32,400 64,800 97, , ,000 % Time Utilized on Server Mgmt 75% default 75% $/KWH $0.20 Book Value Balance Effective number of Sysadmins 1.5 Cap$/KW $2,775 Infrastructure costs per KW Cash Costs: Effective Server:Sysadmin ratio for New 54 Raw ratio = 40.5 Efficiency 25% Percentage of power going to servers System Administration ,000 45,000 45,000 45,000 45, , , , ,000 Cost of Power/Server/Year $3, > Watts/Server 450 OLD SERVER: Ave Watts/Server Add'l Sysadmin for New Servers 18, ,000 36,000 54,000 Fully Burdened Sysadmin Cost/Year $120,000 Default $100k Cost/Yr 3, OLD SERVER Cost/Year Power & Cooling Costs 275,671 68,918 68,918 68,918 68, , , , ,014 Watts/Server 350 NEW SERVER: Ave Watts/Server Add'l Power for New Servers 27, ,567 55,134 82,701 Cost/Yr 2, NEW SERVER: Cost/Year - Break/Fix Maitnenance 20,250 5,063 5,063 5,063 5,063 20,250 20,250 20,250 60, #VM's/Server CONSOLIDATION SCENARIO: Ongoing FMV Lease - Assume None - Number of New Servers: 5 TOTAL Average Cost/New Server: $20,466 default $20k $102,330 Total Cash Costs $118,980 $118,980 $118,980 $118,980 $475,921 $521,488 $567,056 $1,564,465 Number of Remaining Servers 12 $0 Sysadmin Productivity Enhancement: 28% default 28% Capital: SAN Costs $0 Planned Upgrades: - Server Growth , ,000-81,000 81,000 81, ,000 INFORMATION FOR REPORT: Old New Savings % of Raw Savings Server Refreshment/Replacement 8 81, ,000-81,000 81,000 81, ,000 Sysadmin Costs $594,000 $427,680 $166,320 13% Other Datacenter Improvements - Power Costs $909,715 $162,226 $747,489 58% - Capital Costs $486,000 $155,611 $330,389 26% Total Capital , , , , ,000 Maintenance Costs $60,750 $18,000 $42,750 3% Three Year Accessed TCO $508,321 $586,288 $664,256 $1,758,865 Raw Savings $2,050,465 $763,518 $1,286,948 IT Savings w/depreciation $1,758,865 $681,584 $1,077,282 61% TOTAL COSTS through 2008 Verion 1.0 Option Consolidated Windows & Linux Environment IT TCO Summary Return on Investment 396.3% Payback (Months) 2.9 IT Savings 61.2% Q1 Q2 Q3 Q4 YEAR 1 YEAR 2 YEAR 3 Book Value TOTAL COSTS Balance through 2008 Proposed Environment: Consolidated Windows & Linux Environment Cash Costs: VM System Administration ,600 32,400 32,400 32,400 32, , , , ,800 Add'l Sysadmin for New VM Servers 12, ,960 25,920 38,880 Power & Cooling Costs 17 54,075 13,519 13,519 13,519 13,519 54,075 54,075 54, ,226 Add'l Power for New Servers 0 Break/Fix Maitnenance 12 6,000 1,500 1,500 1,500 1,500 6,000 6,000 6,000 18,000 System Admin Non-VM Servers Est. Trade-in for Existing Equipment (Cash) Total Cash Costs $47,419 $47,419 $47,419 $47,419 $189,675 $202,635 $215,595 $0 $607, , % Capital: Consolidation Scenario 9,557 9,557 9,557 9,557 38,226 38,226 38, ,679 $102, Server Growth (New Servers) (Virtual) 1 20, ,466 20,466-40, Total Capital 9,557 9,557 9,557 9,557 38,226 58,692 58, ,611 Note: There is ~ $500K quote for installation. This will be offset by early reallocation of resources Note: There is ~ $100K quote for an internet solution. This enables rapid response to addressing reset Note: There is ~ $300K quote for probes. This is being reviewed/negotiated. Depreciation: Consolidation Scenario 102,330 5,117 5,117 5,117 5,117 20,466 20,466 20,466 40, ,330 Server Growth (New Servers) (Virtual) 20, ,093 8,186 49,118 61,398 Total Depreciation $122,796 $5,117 $5,117 $5,117 $5,117 $20,466 $24,559 $28,652 $90, Three Year Accessed $210,141 $227,195 $244, ,304 TCO $681,584 IT Budget Impact Summary YEAR 1 YEAR 2 YEAR 3 TOTAL 286, , , ,559 Cash Costs Depreciation 11,934 40,241 68, ,722 Capital 123, , , ,389 1,089,561 Savings Net Savings $421,954 $462,401 $523,315 $1,407,670 10/5/2009 Page 1 of 1 base Options
27 Enter Value BASELINE IT TCO Summary Below Five Year Straight line Verion 1.0 Four year straight line 16 Book Value Balance Q1 Q2 Q3 Q4 YEAR 1 YEAR 2 YEAR 3 Three year straight line 12 Existing Environment: 81 MS Windows/Linux Servers ROI 26.8% Payback 22.6 Depreciation: End Date Current Book IT Savings 46.7% Assume assets fully depreciated INPUT SECTION: - Number of Existing Servers: 81 - New Servers/Year (Growth): 8.1 default 10% of Z11 Planned Upgrades: - New Servers/Year (Refresh): 8.1 default 10% of Z11 81,000 4,050 4,050 4,050 4,050 16,200 32,400 48, , ,000 Average Server Replacement Cost: $10,000 default $7.5k 81,000 4,050 4,050 4,050 4,050 16,200 32,400 48, , ,000 Cost of Maint/Server/Year $500 default $500 - % of Servers more than 3 yrs old 50% default 25% Data Center Improvements - Number of Sysadmins 2 default to Z11/40 POWER CALCULATIONS Total Depreciation 8,100 8,100 8,100 8,100 32,400 64,800 97, , ,000 % Time Utilized on Server Mgmt 75% default 75% $/KWH $0.20 Effective number of Sysadmins 1.5 Cap$/KW $2,775 Infrastructure costs per KW Cash Costs: Effective Server:Sysadmin ratio for New 54 Raw ratio = 40.5 Efficiency 25% Percentage of power going to servers System Administration ,000 45,000 45,000 45,000 45, , , , ,000 Cost of Power/Server/Year $3, > Watts/Server 450 OLD SERVER: Ave Watts/Server Add'l Sysadmin for New Servers 18, ,000 36,000 54,000 Fully Burdened Sysadmin Cost/Year $120,000 Default $100k Cost/Yr 3, OLD SERVER Cost/Year Power & Cooling Costs 275,671 68,918 68,918 68,918 68, , , , ,014 Watts/Server 350 NEW SERVER: Ave Watts/Server Add'l Power for New Servers - 27, ,567 55,134 82,701 Cost/Yr 2, NEW SERVER: Cost/Year Break/Fix Maitnenance 20,250 5,063 5,063 5,063 5,063 20,250 20,250 20,250 60, CONSOLIDATION SCENARIO: #VM's/Server Ongoing FMV Lease - Assume None - Number of New Servers: 5 TOTAL Average Cost/New Server: $20,466 default $20k $529,532 Total Cash Costs $118,980 $118,980 $118,980 $118,980 $475,921 $521,488 $567,056 $0 $1,564,465 Number of Remaining Servers: 12 Sysadmin Productivity Enhancement: 28% default 28% Capital: SAN Costs $427,202 Planned Upgrades: - Server Growth , ,000-81,000 81,000 81, ,000 INFORMATION FOR REPORT: Old New Savings % of Raw Savings Server Refreshment/Replacement 8 81, ,000-81,000 81,000 81, ,000 Sysadmin Costs $594,000 $427,680 $166,320 21% Other Datacenter Improvements - Power Costs $909,715 $162,226 $747,489 92% - Capital Costs $486,000 $634,368 -$148,368-18% Total Capital , , , , ,000 Maintenance Costs $60,750 $18,000 $42,750 5% TOTAL COSTS through 2008 Three Year Accessed TCO $508,321 $586,288 $664,256 $1,758,865 Raw Savings $2,050,465 $1,242,274 $808,191 IT Savings w/depreciation $1,758,865 $937,905 $820,960 47% Verion 1.0 Option Consolidated Windows & Linux Environment IT TCO Summary Return on Investment 26.8% Payback (Months) 22.6 IT Savings 46.7% Q1 Q2 Q3 Q4 YEAR 1 YEAR 2 YEAR 3 Book Value Balance TOTAL COSTS through 2008 Proposed Environment: Consolidated Windows & Linux Environment Cash Costs: VM System Administration ,600 32,400 32,400 32,400 32, , , , ,800 Add'l Sysadmin for New VM Servers 12, ,960 25,920 38,880 Power & Cooling Costs 17 54,075 13,519 13,519 13,519 13,519 54,075 54,075 54, ,226 Add'l Power for New Servers 0 Break/Fix Maitnenance 12 6,000 1,500 1,500 1,500 1,500 6,000 6,000 6,000 18,000 System Admin Non-VM Servers Est. Trade-in for Existing Equipment (Cash) Total Cash Costs $47,419 $47,419 $47,419 $47,419 $189,675 $202,635 $215,595 $0 $607, , % Capital: Consolidation Scenario $529, ,453 49,453 49,453 49, , , , ,436 Server Growth (New Servers) (Virtual) 1 20, ,466 20,466-40, Total Capital 49,453 49,453 49,453 49, , , , ,368 Note: There is ~ $500K quote for installation. This will be offset by early reallocation of resources Note: There is ~ $100K quote for an internet solution. This enables rapid response to addressing reset Note: There is ~ $300K quote for probes. This is being reviewed/negotiated. Depreciation: Consolidation Scenario 529,532 26,477 26,477 26,477 26, , , , , ,532 Server Growth (New Servers) (Virtual) 20, ,093 8,186 49,118 61,398 Total Depreciation $549,998 $26,477 $26,477 $26,477 $26,477 $105,906 $110,000 $114,093 $260, Three Year Accessed TCO $295,582 $312,635 $329,688 $937, ,626 IT Budget Impact Summary YEAR 1 YEAR 2 YEAR 3 TOTAL Cash Costs 286, , , ,559 Depreciation (73,506) (45,200) (16,893) (135,599) Capital (35,812) (56,278) (56,278) (148,368) 833,240 Savings Net Savings $176,928 $217,375 $278,289 $672,592 9/15/2009 Page 1 of 1 MOS TCO-ROI Sun server plus FAS3140_NO DR Options
28 Enter Value BASELINE IT TCO Summary Below Five Year Straight line Verion 1.0 Four year straight line 16 Book Value Balance Q1 Q2 Q3 Q4 YEAR 1 YEAR 2 YEAR 3 Three year straight line 12 Existing Environment: 81 MS Windows/Linux Servers ROI -16.7% Payback 53.0 Depreciation: End Date Current Book IT Savings 35.8% Assume assets fully depreciated INPUT SECTION: - Number of Existing Servers: 81 - New Servers/Year (Growth): 8.1 default 10% of Z11 Planned Upgrades: - New Servers/Year (Refresh): 8.1 default 10% of Z11 81,000 4,050 4,050 4,050 4,050 16,200 32,400 48, , ,000 Average Server Replacement Cost: $10,000 default $7.5k 81,000 4,050 4,050 4,050 4,050 16,200 32,400 48, , ,000 Cost of Maint/Server/Year $500 default $500 - % of Servers more than 3 yrs old 50% default 25% Data Center Improvements - Number of Sysadmins 2 default to Z11/40 POWER CALCULATIONS Total Depreciation 8,100 8,100 8,100 8,100 32,400 64,800 97, , ,000 % Time Utilized on Server Mgmt 75% default 75% $/KWH $0.20 Effective number of Sysadmins 1.5 Cap$/KW $2,775 Infrastructure costs per KW Cash Costs: Effective Server:Sysadmin ratio for New 54 Raw ratio = 40.5 Efficiency 25% Percentage of power going to servers System Administration ,000 45,000 45,000 45,000 45, , , , ,000 Cost of Power/Server/Year $3, > Watts/Server 450 OLD SERVER: Ave Watts/Server Add'l Sysadmin for New Servers 18, ,000 36,000 54,000 Fully Burdened Sysadmin Cost/Year $120,000 Default $100k Cost/Yr 3, OLD SERVER Cost/Year Power & Cooling Costs 275,671 68,918 68,918 68,918 68, , , , ,014 Watts/Server 350 NEW SERVER: Ave Watts/Server Add'l Power for New Servers - 27, ,567 55,134 82,701 Cost/Yr 2, NEW SERVER: Cost/Year Break/Fix Maitnenance 20,250 5,063 5,063 5,063 5,063 20,250 20,250 20,250 60, CONSOLIDATION SCENARIO: #VM's/Server Ongoing FMV Lease - Assume None - Number of New Servers: 8 TOTAL 8.63 Average Cost/New Server: $20,466 default $20k $807,538 Total Cash Costs $118,980 $118,980 $118,980 $118,980 $475,921 $521,488 $567,056 $0 $1,564,465 Number of Remaining Servers: 12 Sysadmin Productivity Enhancement: 28% default 28% Capital: SAN Costs $643,810 Planned Upgrades: - Server Growth , ,000-81,000 81,000 81, ,000 INFORMATION FOR REPORT: Old New Savings % of Raw Savings Server Refreshment/Replacement 8 81, ,000-81,000 81,000 81, ,000 Sysadmin Costs $594,000 $427,680 $166,320 35% Other Datacenter Improvements - Power Costs $909,715 $186,050 $723, % - Capital Costs $486,000 $945,924 -$459,924-97% Total Capital , , , , ,000 Maintenance Costs $60,750 $18,000 $42,750 9% Three Year Accessed TCO $508,321 $586,288 $664,256 $1,758,865 Raw Savings $2,050,465 $1,577,653 $472,812 IT Savings w/depreciation $1,758,865 $1,128,532 $630,333 36% TOTAL COSTS through 2008 Verion 1.0 Option Consolidated Windows & Linux Environment IT TCO Summary Return on Investment -16.7% Payback (Months) 53.0 IT Savings 35.8% Q1 Q2 Q3 Q4 YEAR 1 YEAR 2 YEAR 3 Book Value Balance TOTAL COSTS through 2008 Proposed Environment: Consolidated Windows & Linux Environment Cash Costs: VM System Administration ,600 32,400 32,400 32,400 32, , , , ,800 Add'l Sysadmin for New VM Servers 12, ,960 25,920 38,880 Power & Cooling Costs 20 62,017 15,504 15,504 15,504 15,504 62,017 62,017 62, ,050 Add'l Power for New Servers 0 Break/Fix Maitnenance 12 6,000 1,500 1,500 1,500 1,500 6,000 6,000 6,000 18,000 System Admin Non-VM Servers Est. Trade-in for Existing Equipment (Cash) Total Cash Costs $49,404 $49,404 $49,404 $49,404 $197,617 $210,577 $223,537 $0 $631, , % Capital: Consolidation Scenario $807, ,416 75,416 75,416 75, , , , ,992 Server Growth (New Servers) (Virtual) 1 20, ,466 20,466-40, Total Capital 75,416 75,416 75,416 75, , , , ,924 Note: There is ~ $500K quote for installation. This will be offset by early reallocation of resources Note: There is ~ $100K quote for an internet solution. This enables rapid response to addressing reset Note: There is ~ $300K quote for probes. This is being reviewed/negotiated. Depreciation: Consolidation Scenario 807,538 40,377 40,377 40,377 40, , , , , ,538 Server Growth (New Servers) (Virtual) 20, ,093 8,186 49,118 61,398 Total Depreciation $828,004 $40,377 $40,377 $40,377 $40,377 $161,508 $165,601 $169,694 $372, Three Year Accessed TCO $359,124 $376,177 $393,231 $1,128,532 1,116,253 IT Budget Impact Summary YEAR 1 YEAR 2 YEAR 3 TOTAL Cash Costs 278, , , ,736 Depreciation (129,108) (100,801) (72,494) (302,402) Capital (139,664) (160,130) (160,130) (459,924) 642,613 Savings Net Savings $9,533 $49,981 $110,895 $170,410 9/15/2009 Page 1 of 1 MOS TCO-ROI Sun server plus FAS3140_With DR Options
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