Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle

Transcription

1 Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle This analysis was developed independently by leading ROI consultancy Alinean, Inc. to demonstrate the potential total cost of ownership savings and business value from consolidating your server and storage infrastructure with HP hardware and software solutions for Oracle environments. The results in this report were created from an analysis of a wide variety of HP customer profiles and industry research metrics. Financial calculations contained in the Alinean ROI Analyst software, an independent financial modeling tool developed by leading ROI consultancy Alinean, The IT Value Experts ( reflect these results.

2 An Alinean White Paper Paul Demopoulos

3 Published by: Alinean, Inc. 201 S. Orange Ave Suite 1210 Orlando, FL Tel: Fax: Web: September 2009 Copyright 2009, Alinean, Inc. All rights reserved. No part of this report may be reproduced or stored in a retrieval system or transmitted in any form or by any means, without prior written permission. All other trademarks are the property of their respective owners

4 EXECUTIVE SUMMARY... 1 SERVER AND STORAGE MIGRATION RESULTS SUMMARY... 2 CASE STUDY DETAILS... 4 Business Issues /Business Drivers... 4 Original Environment... 5 Proposed Solutions HP Integrity server(s), HP EVA Storage with HP Backup, Software and Training... 5 Financial Analysis... 6 BENEFITS OVERVIEW... 6 IT Cost Reductions...6 Server Software Costs... 6 Systems Management Labor... 7 Server Hardware Costs... 8 Power and Facilities Costs... 9 Storage System Purchases Backup Tape and Drive Costs Business Operating Efficiency and Strategic Advantage...11 MIGRATION AND METHODOLOGY CONCLUSION ABOUT ALINEAN...14 Appendices...15

5 EXECUTIVE SUMMARY This study examines the total costs incurred and the associated benefits from migrating and consolidating server and storage components of an Oracle solution running on a SUN Solaris environment to an HP server and storage environment. The analysis concludes that when all costs are assessed, the HP solution yields a lower total cost of ownership over three years. While providing significantly higher processor performance with greater storage capacity than the current SUN solution, the HP offering uses components that have been pre-tested with Oracle software solutions. Additionally, significant Oracle licensing benefits can be obtained when running Oracle on HP Integrity servers with Intel Itanium multi-core processors, because HP Integrity servers enable a lower Oracle license cost while delivering equivalent performance to that of multiple older SPARC/Solaris systems. With a leap in scalability, businesses look at HP Integrity servers based on Intel Itanium processors as a platform for satisfying both the need for greater performance from business critical Oracle databases and applications as well as improved IT efficiency through server consolidation. Notable benefits also result from reduced systems management labor of the streamlined server and storage configuration and the management tools that are integrated into HP solutions. Requirements to control escalating IT cost structures, the need for scalability, demands for improved customer service, and the need to quickly react to changing business conditions are challenges familiar to many businesses. These issues dominate conversations between the IT organization and the business groups they support. As a result and with recent economic conditions driving a renewed focus on cost control and standardization, Oracle database and application software users should carefully examine all the cost components required to support business-critical applications in their environments. Fortunately, relentless advances in technology efficiency and cost effectiveness allow for IT consolidation onto new platforms that can rapidly and effectively address these issues. This paper explores the question of whether the quantifiable benefits from technological improvements sufficiently outweigh the costs and risks of undertaking such a migration and explores the entire cost model including hardware (servers and storage), software licensing costs, systems management labor, power, facilities, tapes backups and other operating business costs. System migrations are among the best ways to improve Total Cost of Ownership (TCO). Migrating aging (three years or older) Sun SPARC systems to fewer, new, more energy efficient HP system alternatives leverages better designed, more intuitive and proactive supporting software with the added benefits of server and/or storage consolidation. Newer HP servers and storage arrays offer smaller footprints with greater processing and storage capacity, simplified management, reduced power and cooling requirements and frequently, lower software licensing costs. Similarly, increased reliability of new equipment contributes to more dependable business-critical operations, while projected savings can then be applied as needed to provision additional capacity which provides room for growth. Lastly, any migration should only be undertaken when there is confidence that the selected solution has been thoroughly tested with the applications to be deployed and proven to deliver the required benefits. For this study, Alinean, a leader in IT value measurement, teamed up with HP to assess the financial merits of consolidating server and storage infrastructure with HP hardware running Oracle software. This analysis was developed to demonstrate the business value in terms of total cost of ownership (TCO) savings by migrating from aging servers and storage to a consolidated and standardized HP Integrity Server and HP Storage solution. The results in this report were derived from analyses of a wide variety of HP customer profiles and industry research metrics. This case study depicts a company running Solaris based solutions for both applications and databases. While this study uses HP Integrity as an example for an effective SUN migration and consolidation, it is good to note that Alinean has shown similar results and offerings using the Alinean Assessment tool for customers preferring an x86 platform as offered with HP ProLiant servers. Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle 1

6 SERVER AND STORAGE MIGRATION RESULTS SUMMARY This study examined all costs associated with the acquisition and operation of a new consolidated solution versus continued support of the current SUN solution over a three year period. Hard (or direct) costs included hardware and software initial purchases, annual maintenance, internal labor and professional services fees for installation, configuration, migration and on-going systems support, facilities costs for power, cooling and datacenter floor space. Soft (or indirect) costs included employee productivity, revenue losses from downtime and opportunity costs related to business agility. Table 1 and Figure 1 (page 3) show that over the three year analysis period, a new HP solution yielded a 57.4% or $1,175,086 lower total cost of ownership compared to keeping the Solaris server solution. TCO Comparison Cumulative 3 Year Solution A: Current (AS IS) Environment 1 Solution B: HP Solutions for Oracle 2 Difference Savings (A - B) Difference Saving% (A - B)% IT Costs Server Hardware Costs $209,520 $95,710 $113, % Server Software Costs $868,794 $107,568 $761, % Storage System Purchases $95,700 $193,690 ($97,990) % 3 Systems Management Labor $651,960 $348,417 $303, % Power and Facilities Costs $52,530 $15,402 $37, % Migration and Professional Services Fees $0 $18,470 ($18,470) 0.0% Backup Tape and Drive Costs $10,452 $14,091 ($3,639) -34.8% 4 Total IT Costs $1,888,956 $793,348 $1,095, % Business Operating Costs Unplanned Downtime - Productivity Impact $69,450 $34,725 $34, % Planned Downtime - Productivity Impact $7,131 $3,565 $3, % Business Agility - Productivity Impact $19,432 $9,934 $9, % Total Business Operating Costs $96,013 $48,224 $47, % 1 Current Environment configuration was comprised of 2, 4-processor Solaris - RISC servers running applications, 4, 4-processor Solaris Risk servers running Oracle Enterprise Edition database software, and 4.2 Terabytes growing at 30% annually. 2 HP Solution configuration was comprised of 1, HP rx6600 series server running HP-UX 11i v3, EVA Files Servers, HP Storage Essentials, and HP Ultrium 1/8 G2 Autoloader Tape Backup system with 20 HP Ultrium 960 Cartridges (LTO3) as well as Professional Services and Training to complete the migration effectively. Furthermore, the new solution includes a 75% replacement of the current 4.2 Terabytes of storage and an additional 2.0 Terabytes provisioned initially to accommodate growth. 3 In order to accommodate a migration of 75% of existing storage as well as provision an additional two terabytes of storage to accommodate growth, the target system requires storage expenditures in excess of those shown in the current environment. 4 The new systems provisions a new back up tape drive that combined with consumable tables incurs costs in excess of what the current system would require if left unchanged. Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle 2

7 Business Strategic Costs Unplanned Downtime - Business Costs $55,961 $27,982 $27, % Planned Downtime - Business Costs $2,297 $1,150 $1, % Business Agility - Revenue Impact $5,246 $2,683 $2, % Total Business Strategic Costs $63,504 $31,815 $31, % Total $2,048,472 $873,387 $1,175, % Table 1 Breakdown of Total Cost of Ownership for scenario before and after migration to HP Server and Storage Figure 1 Breakdown of Total Cost of Ownership for scenario before and after migration to HP Server and Storage Comparing the current environment to that with the proposed solution can result in a 57.4% net reduction in TCO over the analysis period. Savings include: - Reduce IT Capital Costs (Hardware Server and Storage expenditures) by 5.2% - Improve IT Operations Productivity (IT Labor + Professional Services) by 43.7% - Reduce IT Operating Costs (Software, Tapes, Power and Floor space) by 85.3% - Reduce Business Risks (Business Operating and Strategic Costs) by 49.8% Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle 3

8 Factored into the TCO are implementation costs amortized over three years, with a cumulative investment of $406,490 including: - New Server Equipment - New Storage Equipment - Professional Services Comparing the costs and benefits of the proposed project using discounted cash flow analysis and factoring in a risk-adjusted discount rate of 9.5%, the proposed business case predicts: - Risk Adjusted Return on Investment (RA ROI) of 229% - Return on Investment (ROI) of 271% - Net Present Value (NPV) savings of $874,521 - Internal Rate of Return (IRR) of 153% - Payback period of 3.0 month(s) Note: The project has been risk-adjusted for an overall deployment schedule of 2 months so that realization of benefits is delayed that amount of time. The analysis includes 100.0% of direct benefits and 40.0% of indirect benefits. Due to the nature of the deployment, full benefits are assumed at 100.0% over each successive year of the analysis after the deployment period. The short payback period for 3.0 months results from the deferred nature of some expenditures relative to the immediate benefits resulting from avoiding continued expenditures on new hardware, software, labor and other costs related to the projected growth. CASE STUDY DETAILS Business Issues /Business Drivers Conversations between IT organizations and the businesses they support increasingly revolve around a number of critical issues that seem distinct but are often interrelated. As such, a new solution proposed for the existing Oracle Environment should be evaluated in the ways that it can address these issues most effectively. Specifically: Cost Control: Older solutions frequently experience increasing IT costs to maintain and support dated technology year after year. Even if business demands are falling, the fixed costs of supporting legacy equipment can mean that IT overhead becomes increasingly greater over time. Couple this concern with top down executive efforts to slash costs and IT is often expected to deliver the same or more capabilities with lower expenditures a near impossible task with an aging infrastructure. Scalability: When business demands grow as a result of increased competition or storage needs increase as a result of regulatory requirements for records retention, even in the face of static or falling revenues the need to be able to scale existing solutions cost-effectively to deal with that growth becomes a priority. Customer Satisfaction: More demanding, cost conscious customers typically require better performing systems, greater reliability, and the ability to change or re-prioritize processes. Changing Business Requirements: When business conditions change as indicated above, through regulatory actions, customer priorities, competitive pressures, or aggressive measures to control costs, IT organizations must respond or put the overall business at risk. In evaluating platforms for Oracle software deployments, each category above was examined to determine how its cost components impacted the migration to a new environment and whether the quantifiable benefits sufficiently exceed the costs and risks of undertaking such a migration. Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle 4

9 Original Environment This analysis of potential solutions reviewed a wide variety of HP customer profiles and industry research metrics and as a result, offers a case study scenario of a medium sized enterprise running Solaris based solutions for both applications and databases. A manufacturing organization running Oracle Enterprise Edition was selected as representative of this key environment as was the modeling of a business earning approximately $250 Million per year in the United States and experiencing moderate growth of approximately 5% annually. In order to reduce operating costs and improve service levels, a projection of consolidating 6 servers running various versions of SUN Solaris on SPARC Servers was undertaken. The goal was to migrate all of these onto a new server platform with industry standard storage and industry best practices for high availability and reliability. It was assumed that 25% of the workforce or 250 employees would utilize the Oracle application and database systems, and that one significant new application project would be undertaken annually; the ideal Server replacement cycle was 4 years. Finally, the following server configuration was modeled along with an assumption of some 4.2 Terabytes of mixed data storage. Current Operating Environment and Systems Server Function Age of Servers Quantity of Servers Average Processors per Server Average Price per Server Solaris RISC Application Server $18,000 Solaris RISC Database Server $18,000 Total of Current Servers 6 24 $108,000 Table 2 Current Operating Environment and Systems Profile Whether the reader s organization mirrors this scenario or has other UNIX, Linux, or Windows based solutions running Oracle on other competitive platforms, the concepts presented here remain applicable. Proposed Solutions HP Integrity server(s), HP EVA Storage with HP Backup Software and Training IT consolidation of older server platforms with more efficient and cost effective servers can reduce operating costs and improve service levels. Based on customer experiences and recommendations matching processor performance, the following scenario was selected as a target platform for IT consolidation. Solution Component Recommended Solution Quantity Purchase Price HP-UX Servers HP rx6600 series 1 HP-UX SW Licenses HP-UX 11i v3 6 Scalable NAS Solution: EVA File Services 2 Storage Software HP Storage Essentials 1 Tape Backup System HP Ultrium 1/8 G2 Autoloader 1 Tape Media HP Ultrium 960 Cartridges (LTO3) (20) 1 Professional Services Training HP EVA, CV and SE Startup Services HP EVA Administration (2 days) Total $290,512 Table 2 Proposed Operating Environment and Systems Profile Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle 5

10 To ensure adequate capacity, a 30% annual growth of data storage requirements was assumed over a three year analysis period. Note that this greater growth rate for data, well above the overall business growth rate of 5%, is common. 2.0 Terabytes (TBs) of addition storage are factored in this analysis to accommodate this growth. The scenario also assumes 75% of the existing 6.2 TB storage would be replaced resulting in 5.15 TB procured as part of a new scalable Network Attached Storage (NAS) Solution. Financial Analysis To answer whether the proposed solution offers an acceptable ROI and addresses the key business issues, the entire cost model including hardware (servers and storage), software (licensing costs and support), systems management, power, facilities, tape backup and incremental business expenses were examined. Overall, the proposed solution mapped favorably against the reported expense from the current scenario and offered additional capacity, reliability and flexibility to meet the business needs. Cash flows over the period were discounted using a rate of 9.5% to derive a Net Present Value of the project at $874,521 versus the $406,490 investment to achieve a Return on Investment of 270%. BENEFITS OVERVIEW Updating an aging Sun SPARC Oracle environment with HP servers and storage addresses the major economic concerns a typical customer may have with the resulting benefits of a rapid ROI and a lower TCO. IT Cost Reductions Analyzing the proposed solution impact on direct expenditures from the Information Technology (IT) budget can demonstrate where overall costs can be reduced through improved labor and processing efficiency. Server Software Costs The most significant savings in this analysis result from the software licensing expense and support of Oracle Database Enterprise Edition software. A projected $868,794 reduction in database licensing and support was calculated over a three year period as compared to costs associated with the continued growth and maintenance of the current Sun SPARC environment. Despite assumptions that licenses would be transferred, not acquired new in the target environment and that maintenance in the old environment would maintain historical rates and maintenance in the new environment be based on new, higher Oracle pricing,the license demand of growing current systems results in much higher costs. Oracle s pricing by platform is publicly available, so a detailed computation can rapidly be performed for any existing environment and often may be enough to justify the overall costs of migration. The following considerations apply to Oracle s licensing on both HP servers and its competitors: Oracle database licenses can be purchased on a per processor metric. In this model, a customer pays for the number of processors where the Oracle software is installed and/or running. Per processor licensing relieves the burden of having to track users, a particular issue recently, as increasingly more software audits discover both significant over-subscription and under-subscription of user licensed applications. While Oracle still uses the term per processor licensing, it is somewhat misleading in that it is an umbrella term for two distinct hardware based models. Enterprise Edition versions of Oracle products are in essence licensed per core whereas Standard Edition products are licensed by occupied processor socket. Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle 6

11 When licensing Oracle Enterprise Edition products on servers with multi-core processors, Oracle introduces a pricing factor called processor factor. Oracle allocates different processor factors to different processor families e.g. Intel multi-core processors have a factor of 0.5 vs. Sun SPARC s To determine the number of licenses required, the number of cores where Oracle is installed and/or running is totaled and multiplied by the processor factor. For calculating the number of licenses required for SE and SE1, Oracle equates an occupied processor socket to a license. For example, if two sockets are occupied then two licenses are required. Oracle Database SE can only be licensed for use with a server with a maximum capability of four sockets and Oracle Database SE1 is licensed for use with servers with maximum capability of two sockets (these products can also be used in RAC clusters with a total of 4 and 2 sockets per cluster for SE and SE1 respectively). SE and SE1 have much of the core functionality of the Oracle Database Enterprise Edition (EE) but lack many of the manageability and high availability features of EE. As the name implies Oracle Database EE is the version used by most Enterprise deployments and is the version used in this comparison. With each server vendor and processor configuration there are a variety of issues to consider from processor cores, to sockets, to multi-chip modules and daughter-boards. Careful identification of expected software pricing is key to determining the projected benefits of migration Oracle solutions to any new platform. Ultimately for IBM Power5 customers, as well as Sun/Fujitsu (T2, T2+, and SPARC Enterprise) customers, Oracle applies a processor core factor of.75. All Intel processor based servers have a processor core factor of.5, meaning that 1 license is required for each dual core Itanium processor. These factors have been taken into account for the scenarios in this analysis. Oracle offers both perpetual and term (or subscription) licenses for their software with the vast majority of customers choosing to purchase a perpetual license. While perpetual licenses offer the right to use the software indefinitely, assuming all support fees are maintained, they require a significant up-front expenditure. As a result, in some cases customers are moving to more predictable subscription models that do not involve front loading of software costs. Term licensing has been assumed for this analysis to better compare the before and after costs, however, where perpetual licenses are in place it assumed that any such licenses can be migrated to the new platforms and subsequent reductions in maintenance costs or cost avoidance related to system expansion will delivery similar benefits depending on the exact scenario. Systems Management Labor A second significant savings area, as shown in this migration case study, results from the improved manageability of consolidated server and storage platforms that are both smaller in number and include advanced tools. Reducing the direct IT labor necessary to both configure and maintain these products can flow directly to the bottom line through reduced labor expenditures. Whether the benefits are realized through attrition, reductions in force, or simply re-deploying resources and therefore avoiding costs of hiring in other value added areas, these benefits can be significant. This study projected $285,478 in Systems Management Labor costs savings, calculated over a three year period as compared to maintaining the current Sun SPARC environment. Some considerations that were key factors in achieving the benefits of migrating the current environment to HP servers and storage: Existing legacy systems with a variety of dated storage technologies result in excessive time spent provisioning new storage leading to a lack of time to address changing business requirements Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle 7

12 For some users, using NFS has resulted in significant savings in both storage infrastructure and IT operations. The ease of management delivered by NFS derives from the fact that network-attached storage (NAS) itself is a highly virtualized storage system because of the intelligence of its embedded file system 5 HP EVA virtualization technology delivers ease of management with Enhanced Command View. According to an Edison Study from January, : The new Command View application makes the EVA one of the easiest arrays to manage. the EVA is so easy to manage, IT organizations can use the same operational staff to manage both the EVA storage as well as their servers. Compared to traditional arrays that require significant training and understanding of storage technologies, the Command View EVA interface makes provisioning capacity easier. EVA Virtualized Storage: Virtualization within the EVA results in proven management efficiency, lowering operational costs and total cost of ownership compared to traditional arrays from vendors like EMC and Netapp (Edison study Jan. 2009). In Virtualized environments where server administrators are creating new virtual machines, this ease of management means that IT will spend less time provisioning EVA capacity and this ease of use translates to an array that s better suited to a virtualized infrastructure. Furthermore, HP offers pre-tested integration with Oracle database technologies for backup and recovery, data replication, and management software. Finally, the reduction in both Servers (from 6 to 1 initially and 9 to 2 over the three year analysis) and storage platforms drives reduced labor expense to manage, maintain and re-configure/provision hardware over the period. Historically, two thirds of IT budgets have been spent on ongoing support and maintenance of computing infrastructures. Consolidating and centralizing operations and administrative activities provides substantial opportunity for leveraging skills and improving IT efficiency. Reducing the physical number of supported devices in an organization also lowers change management and problem diagnosis requirements. HP further simplifies systems management for Integrity servers by imbedding powerful utilities and integrating with enterprise systems management frameworks, such has HP OpenView. Server Hardware Costs Server hardware migration results in savings as compared to the costs of continued maintenance and expansion of existing solutions. Given retirement lifecycles and increasing processing demands, regardless of business revenue growth, this study concluded that a single HP Integrity rx6600 server could likely replace six older Sun Solaris servers of four cores each. This reduction alone, coupled with the anticipated need to acquire additional Sun Solaris servers to accommodate retirement/replacement cycles of four year old equipment delivers greater processing performance immediately at a lower cost. A projected savings of $113,810 can result by avoiding approximately $209,520 in continued expenditures on the existing platform versus new server spending of $95, Gartner Research, 16 July 2008, ID Number G Pg1 6 Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle 8

13 With the availability of highly scalable enterprise class HP Integrity servers based on Intel Itanium processors, there are several benefits of server consolidation. Organizations can now economically upgrade to more scalable servers with greater processing power for high volume transaction processing applications and increased memory access for large decision support databases. Server consolidation provides an opportunity to leverage the flexibility of larger systems for multiple applications, which can significantly improve server resource utilization. Centralizing computing resources enables organizations to improve the efficiency of server management, as well as more easily leverage best practices and improve service levels. Enterprise Class Scalability: The raw processing power of the latest Itanium multi-core processors now rivals and even exceeds the performance of the fastest RISC based chips on the market. As Intel s largest partner, HP has worked closely with the chip manufacturer to build its Integrity line of servers to maximize the efficiency of the Itanium processors for real world application performance. The sx2000 chip sets available in HP s Integrity servers provide maximum memory and I/O bandwidth for the Itanium CPUs. Improved Utilization: Increased scale and performance also means that multiple applications and databases can be combined on a single physical server. Traditionally, organizations often purchased unique servers for each new application requirement. These servers were sized for anticipated peak workloads. As workloads change over time, or actual processing requirements differ from original expectations, most servers end up with either very low average utilization rates or quickly exceeding available processing capacity. Placing multiple Oracle databases on a single server platform allows administrators to balance available processing resources more evenly, and improve overall server utilization. Oracle databases can be consolidated on a single server by combining multiple instances, in separate virtual machines. The HP Integrity Virtual Machine enables the execution of multiple HP-UX instances on a single physical server. Power and Facilities Costs With increased focus on rising energy costs and concerns of global warming, many organizations are looking to server consolidation as a way to lower costs and reduce carbon emissions. Newer HP servers are certainly more energy efficient than older generations of equipment, but the monetary savings in facilities costs from server consolidation tends to be over shadowed by larger cost factors such as hardware, software and labor. From an economic perspective server consolidation is much more valuable in extending the life of the data center rather than directly lowering electrical costs. Many organizations are rapidly approaching capacity limitations in their data centers, including physical space as well as electrical and cooling capacity. These organizations simply can t add additional processing capabilities without consolidating and removing existing equipment. In these situations, server consolidation becomes a necessary strategy for satisfying growing computing requirements without undertaking expensive data center expansion costs. Without an analysis of the carbon impact on the environment, direct energy expenditures of the devices and their reduced data center footprint are expected to result in a savings of some $37,128. New technologies are simply more energy efficient and this contributes to a better TCO. Additionally, the choice of tiered storage in a single frame (and shelf) delivered with the HP EVA storage system offers the ability to house three different classes of storage within a single frame and within a single shelf. This means customers can buy a single array to centralize storage management, but deliver a choice of storage performance and cost to meet service level agreements for different business units. Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle 9

14 Storage System Purchases Storage requirements continue to grow dramatically within IT, despite a continued decrease in unit costs of that storage. For this analysis, the scenario called for the provisioning of considerable additional storage as well as replacement of a 75% of existing storage to enable the benefits of better systems management and ensure the business needs were met proactively. New storage system purchases of $193,690 were projected versus a current scenario expenditure of $95,700 to support anticipated growth. In this analysis these new storage purchases can be seen as funded from the projected Server Hardware, Systems Management Labor, and Power and Facilities cost savings described above. The additional expenditure of $97,990 provides benefits to the organization in terms of ensuring that data is always available and minimizing chances of data loss through the choice of appropriate RAID protection levels and the inclusion of HP s Command View EVA with Replication Solution manager. This means data is secured and protected even allowing for multiple drive failures (vraid 6) through double parity support. Furthermore, with these tools, ease of configuration, and the integrated management interface contribute to the improved performance of Systems Management Labor discussed above. Other ancillary benefits associated with the new storage platforms include: Increased data protection afforded by more reliable storage and secure replication tools ensure that losses associated with unplanned down time are minimized. Losses associated with planned downtime are also minimized due to increased productivity delivered with the Storage Essentials Oracle Viewer which allows Systems Management to graphically depict the paths each Oracle data element will traverse and provides associated monitoring tools to rapidly determine the root cause of any failure. HP s Dynamic Capacity Management (DCM) is also reflected in the target number of new servers as it reduces Oracle customer investment by efficiently managing growth. HP StorageWorks EVA Dynamic Capacity Management software provides an ideal solution to the storage provisioning problems encountered in Oracle environments. The traditional way to manage ( provision more, so I don t have to keep reconfiguring ) and allocate storage ( estimate how much the app will need then add some extra headroom just in case ) results in over provisioned capacity. The HP solution enables timely disk-space provisioning for a growing database, and the ability to reclaim and right-size the database as the space requirements wane. HP StorageWorks EVA Dynamic Capacity Management provides a powerful tool set and an ideal solution to the storage provisioning problems in an Oracle environment enabling an Oracle Database administrator to right-size storage provisioning in real-time. Doing so requires minimal hands-on effort with the use of easy-to-create policies. As IT looks to reduce costs, the EVA delivers with it s ability to house three different classes of storage within a single frame and within a single shelf. This means customers can buy a single array to centralize storage management, but deliver a choice of storage performance and cost to meet service level agreements with the business while keeping related storage overhead costs of different frames and shelves low. Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle 10

15 Backup Tape and Drive Costs Tape backup requirements must mirror the requirements of primary storage to ensure the security of enterprise data. In this analysis, despite the projected increase in storage, a projected increase in Backup Tape and Drive costs of $3,639 over the analysis period provisions new tape drives and media to cover 75% of current storage as well as all newly added storage. This new capability with greater capacity per tape and higher transfer rates from HP StorageWorks Ultrium tape products reduce negative impacts on system performance and improve recovery from downtime, contributing to the indirect benefits of business efficiency and accelerated business growth discussed below. Business Operating Efficiency and Strategic Advantage Over and above the hard cost savings of server migration and consolidation, the major benefit of improving service levels and systems availability have already been touched upon above in discussing the value of provisioning the latest HP Integrity servers, storage, and support products built for enterprise class high availability. In order to quantify these benefits, the study modeled the costs of downtime from both lost employee productivity and customer facing revenue generating applications for planned system maintenance and unplanned outages. The business impact of revenue losses were calculated by multiplying the revenue losses by the company s incremental net margin. The HP Integrity solution was projected to reduce the opportunity costs of unplanned downtime, business agility, and planned downtime an impressive 49.8%. However, due to the nature of these benefits, any contribution to workforce productivity or revenues is further reduced by an indirect scalar to reflect the indirect and less predicable impact these technologies can ultimately have on a complex working environment. HP invests significant resources in testing, certifying and working across Oracle databases and applications to ensure the EVA is the best platform to house critical business data. The HP EVA has been certified with Oracle Database and applications and overall HP has more certified storage and server products with Oracle than any other vendor. Applications running on virtualized servers can create performance challenges for traditional array vendors. The combination of High Performance Fibre Channel disk drives (HDDs), Fibre Attached Technology Attached (FATA) storage and Solid State Disks (SSDs) speed transactions to enable faster Oracle Database performance. Use of SSDs for Oracle indexes and log files are examples where SSDs can enhance the performance of Oracle OLTP, DSS, and mixed workload environments. For Oracle customers, this means the EVA can match performance and caching needs -- delivering better performance and improving efficiency. The virtualization technology within the EVA spreads data across all spindles in the disk group. This means that data can be read and written across multiple spindles at the same time, increasing application performance which coupled with the high performance controllers of the EVA6400 and EVA8400, is important in a virtualized environment to ensure applications can get reliable, fast access to data. Costs of Unplanned Downtime HP EVA6400 and EVA8400 s build on the integration of the EVA product family integration with Oracle Database for backup and recovery, data replication, and management software. Integration of HP solutions with Oracle database means improved failover efficiency, faster access to applications for enhanced productivity, continued availability, and data protection. HP DataProtector is a backup and recovery tool that can be integrated into RMAN to backup Oracle databases and HP StorageWorks Business Copy EVA is an array based application that enables Oracle customers to recover an Oracle database in seconds instead of hours using DP Instant Recovery. Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle 11

16 With today s knowledge worker directly dependant on access to systems and data, productivity suffers any time systems or data is unavailable. Estimating downtime at 0.5% of annual work hours and impacting 20% of the 250 person workforce indicated that current downtime could be costing the enterprise nearly $70,000 through the analysis period based on fully burdened employee labor rates. With HP Solutions engineered to deliver five nines (99.999) of availability, no Single Point of Failure, and Integration with Oracle database for backup and recovery, data replication, and management software; a conservative 50% reduction in downtime has been projected. This benefit can flow directly to the bottom line and contribute $34,725 in this analysis. Downtime also has a predictable impact on the business itself through reduced interactions, whether impacting customer service and long term satisfaction levels or specific transactions. And if revenue is directly tied to work productivity above, that also may contribute. But conservatively estimating business revenue losses at $15,000 per hour down time, application of the same 50% reduction introduced above in unplanned downtime contributes $27,979 after reducing this value for scope (20%) and incremental contribution margin (13.5%). Business Agility Systems availability can be enhanced through server consolidation by leveraging systems management best practices and upgrading to more reliable systems. The HP Integrity servers have been engineered from the ground up for mission critical levels of high availability with many levels of internal error checking and redundant components. Business Copy EVA full copies (snapclone) and space-efficient snapshots are tuned for Oracle ASM support. This allows powerful leverage of Oracle critical business data for secondary tasks and allows multiple application mission-critical storage activities simultaneously. Applications provisioning can be accelerated and the average annual value in productivity from better performing applications can be quantified. With a typical provisioning time per database application of 45 days, a 50% improvement with HP Solutions coupled with a conservative 20% application rate for indirect benefits improves business agility. Planned Downtime Reducing business risk with solutions that are pre-tested and certified across Oracle database and applications ensures that planned outages require the absolute minimum amount of time. Increased visibility of the storage architecture from Storage Essentials Oracle Viewer means that System Management personnel can strategically plan any outage. This provides a holistic view of storage from a business application level down to the spindle which helps Oracle customers to verify database paths are implemented as designed, prevent planned SAN downtime from impacting database availability, and predict what data may be impacted by SAN configuration changes. Measuring the end user impact and the business contribution effect, as was done above, for unplanned downtime, and similarly mitigated due to the indirect nature of these results, yields a small but measurable contribution of some $1,147 over this analysis. MIGRATION AND METHODOLOGY The HP Solutions for Oracle TCO Calculator has been designed to recommend HP Platforms and solutions based on a modeling of the current server, storage, and application/database environment. Based on a series of parameters that expose the criticality of data, size of the user community, desired server refresh rate, and growth projections among other values, the tool compares processing power and storage needs to select a good fit solution. However, the tool presents this data as an abstraction, so for the purpose of determining if further assessments should be considered, actual solution quotes and specific migration plans should be undertaken to refine any TCO analysis before relying on the results. Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle 12

17 This document and the accompanying tool help to introduce and explain the categories of benefits that can reasonably be expected when undertaking a migration project like the one described in this paper. For each of the categories, HP customers have routinely experienced improvements along the lines of those included here. CONCLUSION Cost control that positions an enterprise for growth and effective performance yields dividends in every business climate. However, during an economic downturn with the promise of a recovery in the not too distant future, migration to a more robust platform can ensure that an enterprise: retains its customers against competitors, improves the bottom line, and reduces long term risk of calamity. Whether the reader s organization mirrors the scenario or rather has other UNIX, Linux, or Windows operating systems running Oracle on any other competitive platform, the concepts presented here remain applicable. For example, while many businesses might choose high availability options with at least two target servers to further reduce risk or alternatively defer storage purchases as long as possible to realize greater benefits from continued declines in storage pricing, the number of discrete scenarios can vary widely. Financial calculations contained in the Alinean ROI Analyst software, an independent financial modeling tool developed by leading ROI consultancy Alinean, The IT Value Experts ( reflect the results of the scenario used for this analysis and support the modeling of different environments. An organization can comfortably undertake the migration projects necessary to ensure its long term future success with minimal risk by choosing a stable partner who has a solid, long-term product roadmap; that offers flexible solutions that are optimized for Oracle databases and applications; is able to improve manageability through technological enhancements, and offers a forward looking perspective to ensure capacity for growth,. Strong Partner For Oracle based applications, choosing a vendor with pre-built, pre-tested integration between servers, storage and Oracle Database and applications can reduce risk and increase project success. Five Nines (99.999%) of reliability should be the standard required of all servers and storage while seeking a portfolio of server/storage products and configurations to ensure the best solution for any environment or situation. Change Ready With competition driving near constant change in the application software industry, enterprises must be prepared to deal with new versions, patches and enhancements. Relying on a vendor to continually test, pre-integrate and certify their offering with emerging Oracle solutions can reduce internal costs and ensure no surprises will be encountered in the future when changes are required. Cost Effective To continually reign in costs, every company must demand price to performance ratios and infrastructure costs that rival the best in the industry along with companion tools to ensure improved staff performance, requiring less staff over the long term. Reducing up front investment and improving overall performance and utilization that allows buyers to get the most from their investment. Mitigate Risks Investments that work from the beginning of the rollout period ensure that payback is rapid and the enterprise remains a viable competitor while improving the long term ability to support its workers and customers. Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle 13

18 ABOUT ALINEAN Since 1994, the Alinean team has been the pioneering builder of tools to help quantify and improve the ROI and TCO of IT investments. Alinean was named for the Spanish word for Align, matching the Alinean mission as the leading developer of analytical tools to help IT vendors, consultants and IT executives align IT investments with business strategies. The Alinean team has over a decade of experience in the practical development and application of ROI and TCO methodologies, models and tools to optimizing IT investment decision making. In 1994, the Alinean team formed Interpose, the original pioneers of ROI tools, developing analytical software for over 50 major IT vendors and consulting companies worldwide, and creating the industry standard TCO Manager and TCO Analyst software. Interpose was sold to Gartner in 1998, where the team continued their developments and marketing of ROI and TCO software tools. The original team reunited to form Alinean in 2001, once again becoming the leading pioneers and developers of ROI sales and analytical tools. Current customers include leading IT solution providers such as HP, IBM, Dell, Intel, Symantec, NetIQ, EMC, SAP, Oracle, SBC, and Microsoft, as well as leading consultancies and Global 1000 companies. Additional information about Alinean and helpful ROI educational resources can be found at This tool, model and report were independently developed by the ROI / TCO experts from Alinean, Inc., the leading developer of research, methodologies and software tools to measure and quantify the value and return on investment (ROI) from Information Technology (IT) solutions. With a database of over 20,000 IT organizations, Alinean has the unique capabilities to analyze and compare costs, and predict the impact of best practices and projects on organization financial performance and budget savings. ALINEAN'S TEAM HAS OVER A DECADE OF EXPERIENCE IN THE PRACTICAL LEAN BUSINESS AND APPLICATION OF ROI AND TCO METHODOLOGIES, MODELS AND IT VALUE OPTIMIZATION TOOLS INCLUDING THE FIRST INDUSTRY STANDARD PRODUCTS (TCO MANAGER AND TCO ANALYST SOFTWARE) DEVELOPED BY ALINEAN'S PREDECESSOR COMPANY (INTERPOSE) THAT WAS SOLD TO GARTNER GROUP IN SINCE ITS 2001 INCEPTION, ALINEAN SOLUTIONS HAVE BEEN USED FOR MORE THAN $32 BILLION OF IT PURCHASE DECISIONS. CURRENT CUSTOMERS ARE NINE OF THE TOP TEN GLOBAL IT VENDORS, LEADING CONSULTANCIES AND GLOBAL 1000 COMPANIES Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle 14

19 Appendices Company Profile What is the closest industry match to your company / organization? Where are the primary locations for your data center operations? Manufacturing United States What is the annual revenue for your organization? (in millions) $250.0 What is the average annual growth in computing requirements (percent)? 5.0% How many users will access the applications for this project? 250 What is the number of new application projects per year? 1.0 Current (As Is) Server Configuration Please enter the current server configuration that is under consideration for consolidation and/or business continuity. Current Operating Environment and Systems Server Function Age of Servers Quantity of Servers Average Processors per Server Average Price per Server Solaris - RISC Application Server $18,000 Solaris - RISC Database Server $18,000 Total of Current Servers 6 24 $108,000 Average server replacement period (years) 4.0 Current (As Is) Storage Configuration How much current storage capacity is associated with the specified servers? (in TBs) 4.2 What additional storage capacity is needed for the upgrade? (in TBs) 2.0 Total storage capacity requirements (calculated): 6.2 What percentage of the current storage capacity is being replaced? 75.0% What is your average annual growth rate for storage capacity? 30.0% What is your current edition of Oracle database software: SE or EE? Oracle EE Total-Cost-of-Ownership (TCO) Analysis for HP Solutions for Oracle 15