How To Outsource Your Servers To Sungard

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1 Customer Success Story Deploys Comprehensive Disaster Recovery Plan, Reduces Costs, Gains $665,000 in Benefits with SunGard Managed Recovery Program OBJECTIVE BENEFITS ACHIEVED Be prepared for a disaster SunGard s Disaster Recovery Program provides highly reliable disaster recovery for. Combined with SunGard s Managed Services, this helped recover from a disaster with minimal data loss. Outsource IT infrastructure SunGard provides cost-effective hosting for 's servers, increasing reliability and reducing costs. Reduce costs will avoid $1,542,312 in IT, disaster recovery, and downtime costs by deploying the SunGard Managed Services, Hosting, and Disaster Recovery Programs.

2 HIGHLIGHTS: Goal: For to deploy a comprehensive disaster recovery plan and minimize the risk of system outages by outsourcing its data center and some key system administrative functions, while reducing costs. Solution: SunGard Hosting Services, Disaster Recovery Program, and Managed Services Results: has a systems management and disaster recovery process in place that helped the company recover from a major disaster. will reap substantial financial benefits from the deployment: A five-year, projected cumulative net benefit of $664,492, driven by cost avoidance, reduced downtime, and IT support savings. The project will have a return on investment of 76 percent and a payback period of four months. provides concrete and building materials to supply the construction industry throughout Nebraska and surrounding states. The company hosted its own servers and IT infrastructure, and had in place a rudimentary disaster recovery plan. felt that its onsite facility s IT system administration staff would not meet its future needs, and also recognized that it needed a more comprehensive disaster recovery plan. It wanted a solution that would accomplish the following: Put in place a reliable disaster recovery solution. had its own disaster recovery plan, but was not sure that the plan would completely serve the business if a disaster struck. was looking for a highly reliable disaster recovery solution that would allow the business to recover from a disaster quickly and with as little data loss as possible. Accommodate the transition from mainframe to server-based systems. had moved from a legacy mainframe system to a Lawson ERP server-based system. Its mainframe had once been housed in a very large, onsite, environmentally protected area that had since been turned into offices and other workspace. The new servers that run the company s financial, purchasing, point of sale, inventory, and payroll systems were hosted at its headquarters, in a room that was not safe from fire, water, natural disasters, and power failures. Several events emphasized the importance of a protected facility for s mission-critical systems. Once during a power surge and subsequent outage, upon entering the server room, discovered that the battery backup attached to the production server was emitting smoke. Another time a heavy rain forced to install Plexiglas over the server racks to avoid water dripping from the ceiling tiles. There were several times when the cooling was inadequate, prompting the IT staff to put a fan in the server room and prop the door open, leaving the system exposed to other risks. These and a variety of other environmental factors made it difficult for to ensure the stability of its infrastructure. had two options: Build a new server room, or find a hosting facility to house its server equipment. After a three-month study, concluded that it could not cost-effectively build a facility that would meet its needs and began a search for a reliable service to host its hardware.

3 SunGard was able to put together a customized package that was exactly what needed. They gave top-notch disaster recovery, and a package that met their needs for hosting. CUSTOMER PROFILE: supplies the construction industry with the materials needed to construct buildings, streets, and highways. Headquarters: Lincoln, Nebraska Industry: Construction Accommodate growth in IT infrastructure. Not only was s current server room inadequately protected, but its server room was also not large enough to handle growth. The company wanted to find a solution that would allow it to easily grow along with its needs for additional equipment. Reduce costs. was faced with hiring additional IT staff for managing servers and putting a disaster recovery solution into place. In addition, it was considering expanding and updating its server room, which would increase costs further. It wanted a solution that would reduce costs as much as possible. We knew that we had to do something new, remembers CIO Shawn Paskevic. The way things were simply wasn t sustainable over the long term. Chooses SunGard Managed Recovery Program and Hosting put together a detailed analysis of whether it made the most sense to build its own server room, host and administer its own infrastructure, and handle disaster recovery independently, or instead contract with an outside company. It determined that going to an outside service would better serve its needs and would also be more cost-effective. Once it determined that, it began a search for a company that would provide the best and most affordable services. It quickly decided that SunGard s Managed Services and Disaster Recovery Program combined with hosting services was the ideal fit because of SunGard s reliability, technology, customer service, and flexibility in meeting s needs. SunGard was able to put together a customized package that was exactly what we needed, Paskevic says. They gave us top-notch disaster recovery, and a package that met our needs for hosting. What really sold us was the way they were willing to tailor the managed services to exactly what we needed. Paskevic says that the package SunGard put together was extremely detailed and met s most important requirements.

4 About s operations span the state of Nebraska and supply the construction industry with the materials needed to construct buildings, streets, and highways. The company s business interests also include mining, highway and road construction, finance, real estate development, agriculture, transportation, recreation, railroading, and warehousing. SunGard did an excellent job for us when we had to recover from a disaster. They provide an excellent service they care as much about our business as we do. Shawn Paskevic CIO It went into great detail, covering the detailed system administration that SunGard would provide, including things like patching and upgrading the Unix servers operating systems and performing nightly backups, she says. They also provide administration of our Oracle database as well as other important system management functions. They went far beyond what you would expect. SunGard s Managed Recovery Program (MRP) is structured around the specific needs of businesses and the requirements of their applications. With MRP, SunGard assumes full accountability for recovery management. SunGard assigns a dedicated Service Delivery Manager (SDM) to a company, acting as an extension of the company s team, reducing the cost and time required to send staff to a recovery site. The SDM has expert knowledge of the recovery program, including the workflow, timeline, and communication procedures. A single point of contact, the SDM coordinates test planning, test execution, test monitoring, post-test reporting, and the post-test reviews. During an actual recovery, the SDM is the liaison between the company and the SunGard recovery team. Migration to SunGard s data center, system management services, and disaster recovery program went very smoothly, Paskevic says. It was quite simple, she recalls. SunGard is very organized from a project management standpoint. We had weekly calls where they planned out everything. When it came time for deployment, we determined it was the right time to upgrade our server hardware and we had the new equipment shipped directly to SunGard. They had a weekend to cut everything over. It was amazing how well they handled it. Our users did not notice a thing.

5 s bottom line for the project: A five-year, projected cumulative net benefit of $664,492, driven by cost avoidance, reduced downtime, and IT support savings. The project will have a return on investment of 76 percent and a payback period of four months. SunGard provides hosting for us as well as disaster recovery. Their services are dependable and reliable. Our systems are extremely important for the functioning of our business, and we place absolute trust in SunGard to make sure they are up and running. Shawn Paskevic CIO The Bottom Line for As a result of the SunGard arrangement, has a protected, reliable, hosted production and test environment; a strong partnership with SunGard who administers the Unix operating system and Oracle database; and a comprehensive, tested, and proven disaster recovery plan. Using the service, was able to recover from a disaster, losing just 15 minutes of data. Without this relationship, it would have taken at least 10 days to get the system back into production, and it would have had to go to the previous night s backup, losing almost an entire day s worth of work for 100 people, and rekeying 10 day s worth of handwritten transactions. is also well-positioned for future growth, because SunGard will be able to host whatever hardware requires. In addition, will save a significant amount of money from the deployment: A five-year, projected cumulative net benefit of $664,492, driven by cost avoidance, reduced downtime, and IT support savings. The project will have a return on investment of 76 percent and a payback period of four months. I know that with SunGard, we have the highest level of reliability and service possible, Paskevic says. In the event of a disaster all has to do is declare it. has already recovered from a disaster with the service, and its effectiveness exceeded Paskevic s expectations. A staff member accidentally deleted the production database, bringing s system to a halt. Working alongside Ciber, which provides support for s Lawson (ERP) system administration, SunGard restored the system to within 15 minutes of when the data was deleted. Without SunGard, it would have taken far more time to fully restore the system and would have required the manual input of transactions that were conducted while the system was unavailable. SunGard does more than help recover from disasters it also helps ensure that s system runs smoothly on a day-to-day basis by monitoring s hosted hardware and software, Paskevic says.

6 We re extremely glad we did it SunGard has delivered on everything they ve promised and more. We consider SunGard not an outside vendor they re more like an extension of our own staff. If they find any kind of issue, such as if you re low on disk space or memory, they alert you, she says. That way, problems are solved before they even occur. has gained substantial financial benefits from the service. By deploying the SunGard services, did not have to build a tier-4 data center with base room, generator, redundant UPS, and redundant air conditioning, a savings of $288,600. In addition, the company did not have to hire staff to run the data center. All this adds up to a projected, cumulative $644,312 in savings over five years. In addition, the fast disaster recovery saved at least $50,000. also did not have to hire staff for managing the database and UNIX hardware, for an additional, cumulative, projected savings of $848,000 over five years. Paskevic concludes that, One thing you have to keep in mind is that we re a 100-year-old company, and we re used to doing everything ourselves, so going to an outsourcing arrangement was a big change for us. We re extremely glad we did it SunGard has delivered on everything they ve promised and more. We consider SunGard not an outside vendor they re more like an extension of our own staff.

7 7 The following chart provides a detailed, five-year analysis Project Summary ROI: 76% Payback Period: 4 months Cumulative Net Value: $664,492 Project Costs Start Up Year 1 Year 2 Year 3 Year 4 Year 5 TOTAL Investment $20,000 $20,000 Ongoing Costs $171,564 $171,564 $171,564 $171,564 $171,564 $857,820 Total Project Costs $20,000 $171,564 $171,564 $171,564 $171,564 $171,564 $877,820 Benefits Start Up Year 1 Year 2 Year 3 Year 4 Year 5 TOTAL DR Mgmt. Avoidance $288,600 $67,000 $69,010 $71,080 $73,213 $75,409 $644,312 Downtime Avoidance $0 $0 $0 $50,000 $0 $50,000 IT Support Savings $160,000 $164,800 $169,600 $174,400 $179,200 $848,000 Total Benefits $288,600 $227,000 $233,810 $240,680 $297,613 $254,609 $1,542,312 Financial Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Net Value $268,600 $55,436 $62,246 $69,116 $126,049 $83,045 Cumulative Net Value $268,600 $324,036 $386,282 $455,398 $581,447 $664,492 Return on Investment (ROI) is the percentage return expected over a specified period of time. ROI is the net benefit divided by the total costs. This ROI metric is good for assessing the multiplier provided by the benefits relative to the total investment and costs. cumulative net benefit $455,398 $386,282 $324,036 $581,447 $664,492 Payback Period (or breakeven) is the timeframe it takes for the project to yield a positive cumulative cash flow. Payback period is a key measurement of risk but does not take into account cash flows after the payback period. YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 ROI and Payback should be used in conjunction to understand the rate, size, and timing of the return. 5-year cumulative benefit = $664,492 Net Value (or Net Benefit) is the benefit delivered to the organization for the investment made in the project. Net Value is calculated by taking the total benefit minus the project costs. IT Support Savings 55% DR Mgmt. Avoidance 42% IT Support Savings 55% About SunGard Availability Services SunGard Availability Services provides disaster recovery, managed IT, information availability consulting services, and business continuity management software to over 8,000 customers in North America and Europe. SunGard Availability Services 680 East Swedesford Road Wayne, PA Downtime Avoidance 3% 2012 SunGard. SUC-066 Trademark information: SunGard and the SunGard logo are trademarks or registered trademarks of SunGard Data Systems Inc. or its subsidiaries in the U.S. and other countries. All other trade names are trademarks or registered trademarks of their respective holders.