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TABLE OF CONTENTS EXECUTIVE SUMMARY ERROR! BOOKMARK NOT DEFINED. NOVELL S TOTAL COST OF OWNERSHIP IS LOWER 3 SERVICE DRIVES TCO DIFFERENTIATION 3 LICENSING AND MAINTENANCE IMPACT ON TCO 4 RECOMMENDATIONS 4 THE IMPACT OF TCO IN IAM INVESTMENT DECISIONS 5 ANALYSIS METHODOLOGY 5 FINDINGS AND KEY STATISTICS 6 FINDINGS BY CUSTOMER SEGMENT 7 MASSIVE ENTERPRISES 8 LARGE COMPANIES 9 MEDIUM COMPANIES 10 THE IMPACT OF LICENSE FEES ON TCO 11 ONGOING APPLICATION INTEGRATIONS 14 VENDOR / PRODUCT SWITCHING COSTS 17 OTHER KEY STATISTICS 17 RECOMMENDATIONS 17 APPENDIX 1 - SCENARIOS 19 APPENDIX 2 KEY DATA 20 2

IN BRIEF s Total Cost of Ownership is Lower In our recent study of 50 IAM customers and systems integrators we found that s IAM user provisioning and web access management products demonstrate a lower total cost of ownership over five years. This finding was consistent for each of the three company categories researched (2,500+ users, 7,500+ users, and 40,000+ users). 2,500+ Person Firm 24% more than 7,500+ Person Firm 25% more than 40,000+ Person Firm 23% more than 0% 20% 40% 60% 80% 100% 120% 140% Competitive Set Our research indicates that the primary differentiator in TCO between leading IAM product vendors is services expense (competitors are 33% - 83% more expensive than, depending on the case) followed by operations expense (differences driven by downtime, patches, and audit reporting). Service Drives TCO Differentiation An existing IAM customer, a major US airline, noted that, With, we can configure over 90% of our drivers without any programming support; we have a team of business analysts and just one part-time programmer. This means the average scope of professional services engagements is typically lower with than with competitive products, allowing IAM customers to reduce TCO via services (doing the work in-house or doing less work overall). Most striking are the comments made by global and regional IAM professional services specialists. One systems integrator (SI) commented, When we integrate we look better. It is easier, since you don t need deep Java expertise like with other products. Does this translate to lower services expense? This same SI thinks so: Yes, is less than other products by 20%. Another SI gave one specific reason for this reduction: With, you can use one driver to connect hundreds of Unix servers; this is not available from any other competitor. This works for databases, too. 3

Licensing and Maintenance Impact on TCO Our research indicates that licensing has only a marginal impact on TCO, over five years of ownership. While license fees can be front and center during a software investment decision, over time maintenance, services, and operations expenses outpace license expense, even when discounted to present value. For some large deployments, expected services fees related to deployments are less than expected services fees related to competitive product deployments by an amount equal to or greater than s license fee. Recommendations When making IAM investment decisions: 1. Conduct a quantitative analysis of expected TCO, and think like a CFO. 2. Choose the least complex product and deployment plan. 3. Focus less on licensing and more on services and operations costs. 4. Don t be lured into switching IAM products based on license fees alone calculate TCO changes and make a quantitative decision. 4

THE IMPACT OF TCO IN IAM INVESTMENT DECISIONS Total Cost of Ownership (TCO) is back as a favored tool for IT investment decision making due to budget pressures across all industries. In order to determine if TCO is a viable differentiator on which to make investment decisions in the Identity and Access Management (IAM) space, Rencana conducted a multi-country, cross-industry study to compare TCO for products from different vendors. The Rencana IAM TCO study was conducted in August and September of 2010. During this time, Rencana solicited responses from nearly 50 systems integrators and IAM product customers in the United States and Europe. In order to collect adequate responses to guarded financial information, we guaranteed our respondents anonymity and confidentiality. We designed and executed a survey and interviewed respondents. This process provided our team with a set of quantitative and qualitative data that enabled us to analyze a cross-section of worldwide IAM experts and their experiences. This document describes our methodology, details key findings, and highlights certain key quotations used by our respondents to further describe their experiences with certain, Oracle, IBM, CA, and Courion IAM identity and access management products. ANALYSIS METHODOLOGY We conducted primary research by surveying and interviewing nearly 50 leading regional, national, and global systems integrators and IAM product customers of five different vendors (, Oracle, CA, IBM, and Courion) each with businesses of various scopes in the United States and Europe. Our primary research consisted of a survey containing a set of over 75 questions for each product / vendor combination and of follow-up and stand-alone interviews to validate and supplement data collected. Due to the sensitivity and variable nature of product pricing and other proprietary information, most data are averaged and reported in aggregate to obscure their source. The scope of our study considers traditional identity management and access management products hosted on-premise (rather than Software-as-a-Service) and installed and configured by the purchasing company or by the product purchaser s hired consultants. Our total cost of ownership (TCO) model is based on our experience with approximately 100 IAM projects across multiple industries in multiple countries. In order to highlight differences between products, we have eliminated certain TCO elements for which costs vary slightly between products. For example, the cost of general networking equipment has not been evaluated due its marginal impact on the cost difference between IAM products, since each of the products deployments will require a similar amount and configuration of general networking equipment. In comparing our IAM TCO model with that of models created by Gartner 1 and Forrester 2, we find that our model considers at least as many differentiating elements as those analysts models and is overall well customized to the IAM User Provisioning and Web Access Management product markets. 1 Gartner is a trademark of Gartner, Inc. Opinion based on publicly available information. 2 Forrester is a trademark of Forrester Research, Inc. Opinion based on publicly available information. 5

In order to standardize responses as much as possible, we produced three scenarios which respondents were able to reference. These scenarios hypothetically describe common IT environments at a medium size organization (2,500+ managed users), a large organization (7,500+ users), and a massive organization (40,000+ users). Each scenario is described in detail in Appendix 1. Our IAM TCO model considers key elements of cost, such as: Licensing Maintenance / product support Hardware External services from professional services firms, contractors, and vendor engineers Number of administrators and their salaries Training for administrators and end users Scheduled and unscheduled downtime Cost and frequency of upgrades Audit report generation We normalized all supplied data to hours and to United States Dollars (USD). Thus, if we were provided information in days or weeks, we converted the data at eight hours per day, five days per week. When provided data in Euros, we converted Euros to USD at 1.3! to the USD, which is a reasonable average euro-dollar exchange rate for 2010. All recurring costs were annualized and considered over a five-year term. We did not grow or inflate any recurring costs such as salaries or maintenance agreement payments. We did use the present value of all future payments /costs using a discount schedule for each organization size we considered: Medium Large Massive Discount Rate 12% 8% 6% The discount rate varies by the average cost of capital for a typical firm of a certain size. We assume that massive organizations have a lower cost of capital than smaller organizations due to their perceived stability and better access to capital. However, organizations discounts may be different, and it may therefore impact the total cost of ownership. However, we do not believe that using a different discount rate would significantly impact percentage differences in TCO by component (as shown in our analyses), since we use average and constant discount rates throughout our analyses. FINDINGS AND KEY STATISTICS Our team set out to analyze the IAM provisioning and web access management software market from the perspective of a financially concerned information technology manager. First, we established the total cost of ownership (TCO) model and our starting hypothesis. We initially assumed minor variability in the compared IAM products total cost of ownership. We began our analysis by asking the question: 6

Which IAM products have the lowest total cost of ownership? To answer this question, we had to answer three basic questions: 1. Do differences in licensing and maintenance expenses impact TCO? 2. Do differences in product integration and configuration service expenses impact TCO? 3. Do differences in operations and support expenses impact TCO? We executed primary research (see Analysis Methodology) and aggregated collected data from customers and systems integrators using Rencana s IAM TCO model. Our model calculates the present value of each answer to create a total cost of ownership for accurate comparison of each vendor s provisioning and web access management products over the course of five years. Findings by Customer Segment Our analysis finds that Identity Manager and Access Manager products have a lower total cost of ownership than competitive products because they are easier to configure, integrate, and administer. 2,500+ Person Firm 24% more than 7,500+ Person Firm 25% more than 40,000+ Person Firm 23% more than 0% 20% 40% 60% 80% 100% 120% 140% Competitive Set Figure 1 Total cost of ownership of IAM products compared by vendor and by size of organization Figure 1 indicates a significant difference in the total cost of ownership between and other vendors considered. To better understand the components and drivers of these results, we will analyze each data set by organization size, since that will be of the greatest use to most readers. 7

Massive Enterprises For massive enterprises those companies with global and complex IT operations and over 40,000 system users our research shows the total cost of ownership of s IAM product set to be substantially lower (approximately 24%) than competitive products. TCO 24% < Competitive Set Average % more (less) than Oracle (1%) 69% 3% 19% 54% 104% 457% Average % more (less) than 14% 56% (30%) 6% 39% 170% 458% Licensing & Maintenance Services Hardware Administrator Salaries & Training Downtime Patches & Upgrades Audit Reporting Figure 2 Total Cost of Ownership for Provisioning and Web Access Management Products Massive Enterprises Figure 2 shows that while there is some difference in licensing fees between competitive products, the largest driver of the difference in total cost of ownership for IAM products is professional services and contractors. In this graphic, we see that, over five years, customers and systems integrators report that Oracle, CA, IBM, and Courion customers spend an average of approximately 56% more on configuration and integration services than customers. One interviewee commented that, With [Identity Manager], we can configure over 90% of our drivers without any programming support; we just have a team of business analysts and one parttime programmer. The second largest differentiator is the cost of applying patches and upgrades. Customers and systems integrators tell us that, on average, non- customers spend nearly twice as much on patches, bug fixes, and upgrades as do IAM customers, over five years. During our interviews, customers told us that the products provide administrator tools for applying patches, bug fixes, and upgrades, which substantially reduces their overall administration time. We found that most survey respondents did not indicate a substantially reduced staff to operate IAM products, but that requires largely only business analysts to maintain and grow the IAM platform. This is in contrast to other products, which typically require additional programmers to update configuration details as managed target environments change. 8

Customers interviewed by our researchers indicate that none of the tools generally meet their total auditing and reporting needs. It is expected in large organizations that most customers will integrate their provisioning tools with access governance and recertification tools. Nevertheless, customers we spoke with indicate that and IBM have the best out-of-the-box reporting tools, which seems to be validated by their low Audit Reporting scores. Large Companies For large companies those with global and complex IT operations and over 7,500 system users our research show the total cost of ownership to be substantially lower for s products than for competitive products. TCO 25% < Competitive Set Average % more (less) than Oracle 5% 83% 118% 11% 54% 104% 457% Average % more (less) than (5%) 71% 7% 4% 39% 171% 458% Licensing & Maintenance Services Hardware Administrator Salaries & Training Downtime Patches & Upgrades Audit Reporting Figure 3 Total Cost of Ownership for Provisioning and Web Access Management Products Large Companies Large companies find similar TCO benefits from IAM as those of massive enterprises. Figure 3 shows that the difference in licensing fees between competitive products is negligible, on average, and thus the largest driver of the difference in total cost of ownership for IAM products is professional services and contractors. For large companies, we find that, over five years, customers and systems integrators report that customers spend approximately 71% less on configuration and integration services than customers of competitors. This substantial difference is confirmed by systems integrators, one of whom states, When we integrate, we look better. It is easier, since you don t need deep Java expertise like with other products. He continues, Yes, is less integration hours than other products by 20%. Another customer reports, With [Identity Manager], we can configure over 90% of our drivers without any programming support; we just have a team of business analysts and one part-time programmer. 9

The second largest differentiator is again the cost of applying patches and upgrades. customers and systems integrators tell us that, on average, large company customers also spend nearly half as much on patches, bug fixes, and upgrades, over five years. During our interviews, customers told us that the products provide administrator tools for applying patches, bug fixes, and upgrades, which substantially reduces their overall administration time. Customers interviewed by our researchers indicate that some of the tools meet their auditing and reporting needs. Unlike massive enterprises, most large company customers will integrate provisioning tools with access governance and recertification tools. Many large company customers we spoke with indicate that and IBM have the best out-of-the-box reporting tools, which was a substantial differentiator for them in their purchasing decision. The benefits of these tools seems to be borne out by the reported auditing and reporting expense that is 75% lower for customers than for Oracle, CA, IBM, or Courion IAM customers. Medium Companies For medium companies those with slightly less complex IT operations and over 2,500 system users our research show the total cost of ownership to be substantially lower for s products than for competitive products. TCO 23% < Competitive Set Average % more (less) than Oracle 21% 33% 2% 46% 2% 10% 457% Average % more (less) than 8% 38% (50%) 3% 39% 171% 458% Licensing & Maintenance Services Hardware Administrator Salaries & Training Downtime Patches & Upgrades Audit Reporting Figure 4 Total Cost of Ownership for Provisioning and Web Access Management Products Medium Companies Medium companies find slightly different cost drivers than those of massive enterprises or large companies. Figure 4 shows that the difference in licensing fees between competitive products is negligible, on average, and thus the largest driver of the difference in total cost of ownership for IAM products is operations costs. Medium company respondents reported 27% lower operations costs for IAM products versus competitive products. During our interviews, customers told 10

us that the products provide administrator tools for applying patches, bug fixes, and upgrades, which substantially reduces their overall administration time. Also, for this set of customers, differences in time required for administration have a more significant impact as a percentage of total cost. Secondly, non- customers and systems integrators report 38% higher services costs over five years. In general, medium companies report relatively less savings on services fees with (relative to larger organizations). It seems likely that medium company uses a higher percentage of procured services to configure basic services than does a larger organization, which likely uses more of its procured services on customization. The Impact of License Fees on TCO At the outset of our research we specifically asked the question, do differences in licensing and maintenance expenses impact total cost of ownership [of leading IAM products]? Our research and subsequent analysis provides an answer: Yes, but these costs are not as significant to the total cost of ownership as other costs. For large deployments (more than 30 applications integrated), initial costs such as licensing become irrelevant in determining the lowest TCO. This finding is compelling because we know that some software sales teams are competing on licensing price, which begs the question, if a sales team is offering their product for a $0 license, is that a significant enough discount to warrant buying from them? Our analysis shows that it is not. 11

We compared the lowest TCO product set with the competitive set. We analyzed the TCO of the competitive set with a $0 license fee (but all other factors remaining the same as in our earlier analysis) compared to IAM with a license fee (and all other factors remaining the same). For a massive enterprise, the TCO nears parity between the product vendors. Excess TCO with License Fees License Fee Average % more (less) than 4% 69% 3% 19% 54% 104% 457% (9%) Oracle without License Fees (100%) Average % more (less) than 56% (30%) 6% 39% 170% 458% 6% (100%) Competitive Set Average without License Fees (Oracle, CA, IBM, Courion) Services Hardware Administrator Salaries & Training Downtime Patches & Upgrades Audit Reporting Maintenance License Figure 5 The impact of $0 license fees on IAM TCO for massive enterprises The key take away from this analysis is that license cost, even if it is $0, is not significant enough to the total cost of ownership to use it as the single factor in making a product purchase decision. This analysis assumes approximately 10 common applications (AD, PeopleSoft HR, SAP ERP, etc.) will be integrated into the IAM architecture. An organization planning to integrate more applications should expected savings from $0 licensed software to be greater (than 4%); if the organization plans to integrate fewer than 10 applications, its expected savings from $0 licensed software will be less. Thus, for massive organizations that are expecting to integrate less than 10 applications into their IAM environment, TCO matters little; choose the product suite with the best feature set for your environment. However, if you intend to integrate 10 or more applications, then our analysis indicates s suite has a lower TCO than its competitors. 12

For large and medium companies, the impact of $0 software licenses is more pronounced. Excess TCO with License Fee License Fee Average % more (less) than <- 17% -> 83% 118% 11% 54% 104% 457% 1% (100%) Oracle without License Fee Average % more (less) than 71%) 7% 4% 39% 171% 458% (7%) Competitive Set Average without License Fee (Oracle, CA, IBM, Courion) (100%) Services Hardware Administrator Salaries & Training Downtime Patches & Upgrades Audit Reporting Maintenance License Figure 6 The impact of $0 license fees on IAM TCO for large companies 13

Excess TCO with License Fees License Fee Average % more (less) than <- 22% -> 33% 2% 46% 2% 10% 457% 24% Oracle without License Fees (100%) Average % more (less) than 38% (50%) (3%) 39% 171% 458% 11% Competitive Set Average without License Fees (Oracle, CA, IBM, Courion) (100%) Services Hardware Administrator Salaries & Training Downtime Patches & Upgrades Audit Reporting Maintenance License Figure 7 The impact of $0 license fees on IAM TCO for medium companies Large and medium organizations looking to lower their TCO below s expected TCO with a competitive product should expect to receive a $0 IAM software license and substantially conduct their own integration in order to lower expected TCO to be less than expected TCO with (with an average license fee and average services contract). Ongoing Application Integrations Organizations planning to integrate a substantial number of applications into their user provisioning environments should pay particular attention to the discrete cost of application integration for out-of-the-box and custom application integrations. Our analysis indicates that integrating applications is a differentiating factor of TCO between software vendor s user provisioning products. We analyzed two scenarios: 1) the cost of integrating 30 additional applications to an existing user provisioning environment, and 2) the cost of integrating 90 additional applications to an existing user provisioning environment. 14

The cost difference in integrating 30 additional applications to an existing user provisioning environment can be significant between vendors products. Our scenario assumes that of the 30 integrated applications, 20 use vendors out-of-the-box connectors, and 10 use custom developed connectors. TCO Savings per 30 Applications ~ $17,500 per connector ~ $21,000 per connector Average % more (less) than 46% more <- (Hundreds of Thousands of $) -> Oracle ~ $26,650 per connector ~ $28,450 pre connector Average % more (less) than ~ $27,100 per connector ~ $ 29,300 per connector 20 Out-of-the-Box Connectors 10 Custom Connectors Figure 8 Average OOTB and custom connector integration costs by vendor, with professional services In this case, we find that there is a significant difference between the average costs of integrating an application using an out-of-the-box connector ($17,500 per connector for vs. ~$27,100 for competitors). Multiplied over 20 applications, the savings provide are substantial. While custom connectors also appear to enjoy a similar cost advantage, some interview respondents noted frustration with custom connectors in general. One interviewee thought that s custom connector effort would be similar to IBM or Oracle, indicating that the level of technical expertise required is fairly high across all the products researched. 15

Many clients have over the years indicated their intention to manage tens or hundreds of applications through integration with an IAM environment. In that scenario, using the cost-perapplication integration approach, we find the difference in TCO represents hundreds of thousands of dollars. TCO Savings with 90 Integrated Applications Average % more (less) than 34% more <- (Hundreds of Thousands of $) -> Oracle (1%) 69% 3% 19% 54% 104% 457% 42% Average % more (less) than 14% 56% (30%) 6% 39% 170% 458% 46% Licensing & Maintenance Services Hardware Administrator Salaries & Training Downtime Patches & Upgrades Audit Reporting 90 More Connectors Figure 9 TCO of different vendors after integrating 100 applications According to our analysis, customers who hire professional services to integrate 90 or more applications for provisioning have a TCO less than competitive set customers by an amount equal to licensing and five years maintenance. This point again reinforces our finding that services are the number one driver of total cost of ownership. 16

Vendor / Product Switching Costs Does it ever make sense to switch from one IAM vendor to another? Not if the organization has already implemented the software. We considered eight scenarios under which an organization might consider switching products. Based on this analysis, it generally does not make sense to switch products after having purchased one of them. However, if your organization plans to integrate more than 30 applications into its IAM environment, and you have not yet started with the deployment, then it does make sense to consider the impact of a switch to. Those customers who own a non- IAM product, have not yet integrated it with their IT environment, and decide to switch should expect to a lower TCO after the 32 nd application integration. It is important to note that our analysis assumes the organization will complete these integrations within two years of switching. The longer the integration time, the more applications are required to reduce TCO via switching. Other Key Statistics See Appendix 2 Key Data for data behind calculations: out-of-the-box provisioning connectors require up to 75% less systems integrator time to deploy than competitive products. custom provisioning connectors require up to 30% less systems integrator time to deploy than competitive products. averages 20%+ less systems integration fees for a comparable provisioning project at companies of all sizes. IAM products require an average of 81% less time to generate required audit reports. IAM products experience an average of 55% less downtime. IAM products require a team of business analysts rather than a team of developers to operate and maintain (little direct cost savings, but big qualitative difference). Recommendations It is commonly thought that services are a primary driver of total cost of ownership for IAM software. However, it is not common to think of software license as potentially irrelevant to the TCO buying decision. By building a comprehensive TCO model, we can analyze the true cost components of IAM and evaluate differences between market options. Our recommendations for those attempting to make a financially rational decision are: 17

1. Total cost of ownership can vary significantly between leading products. Don t assume all leading products will produce the same result. Evaluate your options and think like a CFO. 2. Ease of integration is the most significant factor in differentiating TCO between product vendors and is realized initially via your consultants and going forward via your team s ability to continue integrating a large portion of your organization s critical applications. Simpler is better. 3. Focus less on licensing and maintenance costs and more on services and operations costs. It s easy to focus on concrete items like licensing because it is typically a defined figure that is charged as a single fee. However, managing services scope and planning IAM operations in advance of the deployment can significantly reduce TCO. 4. The present value of five years product maintenance and operations are, on average, significantly greater than initial license expenses; don t be lured into switching products based on an offer of a lower license expense alone. TCO can be more substantially reduced by choosing a vendor with a lower total services expense than one with lower licensing or maintenance costs. 18

APPENDIX 1 - SCENARIOS We presented these hypothetical company scenarios to survey and interview respondents to ensure consistency. However, when discussing actual customer deployments for specific company operations, we discussed real company experiences in real IT environments. Scenario 1: A Massive organization with over 40,000 staff, global operations, and very complex IT operations with significant dedicated IT staff. These organizations are often Global 1000 companies or state, provincial, or federal governments in the U.S. or Europe. IT Environment Type Specific Instance ERP SAP Financials HR SAP HR Directory Microsoft Active Directory Email Lotus Notes Database Oracle 10g, DB2 Mainframe RACF, zos Help Desk Remedy CRM Siebel Platforms Windows & Unix Business Processes User On-boarding User termination Request system access Request access removal Access Recertification Report generation Scenario 2: A Large organization with over 7,500 staff, national or global operations, and complex IT operations with dedicated IT staff. IT Environment Type Specific Instance ERP SAP Financials HR PeopleSoft Directory Microsoft Active Directory Email Microsoft Exchange Database Oracle 10g Mainframe - Help Desk Remedy CRM Salesforce Platforms Windows & Unix Business Processes User On-boarding User termination Request system access Request access removal Access Recertification 19

Report generation Scenario 3: A Medium organization with over 2,500 staff, regional, national, or global operations, and a more straightforward IT environment and a dedicated IT staff. IT Environment Type Specific Instance ERP Microsoft Navision HR PeopleSoft Directory Microsoft Active Directory Email Microsoft Exchange Database Microsoft SQL Server Mainframe - Help Desk Numara CRM Salesforce Platforms Windows Business Processes User On-boarding User termination Request system access Request access removal Access Recertification Report generation APPENDIX 2 KEY DATA Key data are presented via a summary view of Rencana s IAM TCO model. Each entry in the model is an aggregate representation of the average of each survey response and interview. Data were gathered, normalized, added to the model. Each cell of the model contains an average function in order to reduce errors and to make each response anonymous. The summary view presented sums the responses specific to user provisioning products and web access management products, which were analyzed individually. At the time of publication, Courion does not sell a web access management product, and thus data and calculations related to Courion are representative of the user-provisioning product only. Our reported statistics and model take this data into account explicitly removing only the web access management portion from the competitive set average. Seats Discount Rate Entry Server Mid Server High Server Admin $ End User $ Massive 40,000 6% $ 1,000 $ 2,900 $ 8,500 $ 40 $ 25 Large 7,500 8% $ 1,000 $ 2,800 $ 6,500 $ 40 $ 27 Medium 2,500 12% $ 1,000 $ 2,700 $ 5,500 $ 40 $ 30 *Note: When appropriate, Euros have been converted to US Dollars at 1.30 Euros to the USD Figure 10 Data common throughout model Admin and End User rates are per hour Server rates are per server of specified type Seats and discount rate are specific to the size of the organization 20

IAM Oracle IAM Competitve Set IAM 5 Yr TCO w/o User Training $ 5,225,703.96 $ 2,518,732.40 $ 1,677,616.48 $ 6,745,802.22 $ 3,477,426.68 $ 2,137,845.27 $ 6,289,735.15 $ 3,075,955.96 $ 2,023,871.42 5 Yr TCO w/ User Training $ 21,066,973.80 $ 5,726,589.54 $ 2,865,711.72 $ 30,512,468.89 $ 8,290,176.68 $ 3,920,345.27 $ 19,231,401.81 $ 5,674,143.46 $ 2,975,746.42 Licensing $ 1,085,000.00 $ 395,416.67 $ 145,797.62 $ 1,159,375.00 $ 427,187.50 $ 172,187.50 $ 1,231,718.75 $ 358,750.00 $ 139,921.88 Average / user $ 27.13 $ 52.72 $ 58.32 $ 28.98 $ 56.96 $ 68.88 $ 30.79 $ 47.83 $ 55.97 Maintenance $ 231,640.00 $ 84,141.67 $ 30,748.81 $ 231,875.00 $ 85,437.50 $ 34,437.50 $ 253,788.50 $ 72,965.47 $ 28,350.00 Summary First Year $ 1,316,640.00 $ 479,558.33 $ 176,546.43 $ 1,391,250.00 $ 512,625.00 $ 206,625.00 $ 1,485,507.25 $ 431,715.47 $ 168,271.88 Subsequent Years $ 231,640.00 $ 84,141.67 $ 30,748.81 $ 231,875.00 $ 85,437.50 $ 34,437.50 $ 253,788.50 $ 72,965.47 $ 28,350.00 Five Year PV $ 2,119,297.06 $ 758,246.21 $ 269,941.31 $ 2,095,535.38 $ 795,604.84 $ 325,954.57 $ 2,256,351.58 $ 673,386.36 $ 266,507.62 Entry-level servers 9.10 5.25 15.45 10.50 6.50 7.80 $ 3.88 $ 3.25 $ 4.45 Mid-level servers 10.83 9.36 5.50 12.00 8.29 3.33 $ 8.75 $ 5.01 $ 2.25 High-end servers 9.67 - - 9.50 6.00 1.33 $ 5.29 $ 2.17 $ 0.58 Five Year PV $ 122,683.33 $ 31,461.11 $ 30,300.00 $ 126,050.00 $ 68,700.00 $ 24,133.33 $ 31,604.38 $ 17,228.75 $ 6,088.33 Contractor $ 135.35 $ 135.35 $ 135.35 $ 164.17 $ 164.52 $ 165.95 $ 170.63 $ 170.71 $ 171.07 ProServ Firm $ 192.16 $ 192.16 $ 192.16 $ 190.00 $ 190.00 $ 190.00 $ 211.67 $ 211.67 $ 211.67 Vendor Engineer $ 210.94 $ 210.94 $ 210.94 $ 216.67 $ 216.67 $ 216.67 $ 238.54 $ 238.54 $ 238.54 Reported Total Hours 12,460 5,710 4,785 11,232 1,668 2,378 $ 8,908.00 $ 3,416.17 $ 2,934.38 Internal Hours 4,038 2,121 1,686 5,254 2,205 1,373 $ 3,038.50 $ 1,241.25 $ 943.33 Contractors 7,220 3,687 2,939 9,453 4,703 3,667 $ 8,246.67 $ 4,273.79 $ 3,394.17 Engineering 385 99 67 2,130 1,438 188 $ 1,386.25 $ 868.75 $ 174.71 Sum Total 11643 5907 4692 16837 8345 5228 $ 12,671.42 $ 6,383.79 $ 4,512.21 Services Fees $ 1,263,508.73 $ 624,664.09 $ 495,360.32 $ 2,135,527.78 $ 1,145,061.98 $ 693,312.70 $ 1,901,597.22 $ 1,021,730.77 $ 641,935.62 OOTB Adapter OOTB Adpater Works 46% 46% 46% 75% 75% 75% $ 0.75 $ 0.75 $ 0.75 Total Custom Hours 1665 568 447 2368 1285 645 $ 1,840.63 $ 747.25 $ 496.25 Internal Hours 954 234 49 390 153 123 $ 577.50 $ 198.13 $ 170.63 Contractor Hours 104 104 104 150 150 150 $ 155.04 $ 155.04 $ 155.04 Engineering Hours Sum Total 1058 340 156 540 303 273 $ 732.54 $ 353.91 $ 327.16 Customizaton Fees 17537 17737 17936 26652 26706 26920 $ 29,304.74 $ 29,499.40 $ 29,734.28 Custom Adapter Average Custom Req's Total Custom Hours 1245 820 769 1700 1187 813 $ 1,700.00 $ 1,186.67 $ 813.33 Internal Hours 113 428 38 360 240 193 $ 330.00 $ 240.00 $ 168.33 Contractor Hours 201 201 201 225 225 225 $ 211.25 $ 211.25 $ 211.25 Engineering Hours 41 41 41 94 94 94 $ 93.75 $ 93.75 $ 93.75 Sum Total 356 670 280 679 559 512 $ 635.00 $ 545.00 $ 473.33 Customizaton Fees 42035 42035 42035 56521 56521 56521 $ 54,209.15 $ 54,209.15 $ 54,209.15 # of Admins 3.40 2.63 2.37 4.03 2.90 2.38 $ 3.29 $ 2.50 $ 2.22 Training End user hours 16 16 16 24 24 24 $ 12.69 $ 12.69 $ 12.69 Administrator hours 156 156 156 213 213 213 $ 165.83 $ 165.83 $ 165.83 Administrators 3 3 2 4 3 2 $ 3.29 $ 2.50 $ 2.22 Total End User 633,651 118,810 39,603 950,667 178,250 59,417 $ 507,666.67 $ 95,187.50 $ 31,729.17 Total Administrator 275 213 191 528 377 290 $ 346.61 $ 265.64 $ 231.98 End user Training $ $ 15,841,270 $ 3,207,857 $ 1,188,095 $ 23,766,667 $ 4,812,750 $ 1,782,500 $ 12,691,666.67 $ 2,570,062.50 $ 951,875.00 Administrator Training $ 10,990 $ 8,506 $ 7,637 $ 21,108 $ 15,086 $ 11,587 $ 13,864.58 $ 10,625.60 $ 9,279.17 Total Training $ 15,852,259 $ 3,216,363 $ 1,195,732 $ 23,787,775 $ 4,827,836 $ 1,794,087 $ 12,705,531.25 $ 2,580,688.10 $ 961,154.17 Downtime Outage hours / year 24 24 24 41 41 41 $ 35.52 $ 35.52 $ 35.52 Scheduled restarts 10 10 10 12 12 12 $ 8.28 $ 8.28 $ 8.28 % users affected 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% $ 0.00 $ 0.00 $ 0.00 Cost of downtime $ 85,169.95 $ 17,246.91 $ 6,387.75 $ 131,428.57 $ 26,614.29 $ 9,857.14 $ 109,482.14 $ 22,170.13 $ 8,211.16 Five Year PV $ 358,766.81 $ 68,861.93 $ 23,026.40 $ 553,624.95 $ 106,263.13 $ 35,532.79 $ 461,178.61 $ 88,518.92 $ 29,599.40 Upgrades Contractor Hours 219.22 219.22 219.22 454.00 454.00 454.00 $ 483.50 $ 483.50 $ 483.50 Cost of Upgrades / Patches $ 42,125.54 $ 42,125.54 $ 42,125.54 $ 86,260.00 $ 86,260.00 $ 86,260.00 $ 104,356.67 $ 104,356.67 $ 104,356.67 Five Year PV $ 177,448.11 $ 168,195.08 $ 151,853.15 $ 363,358.50 $ 344,411.17 $ 310,948.00 $ 439,588.24 $ 416,665.91 $ 376,182.43 Audit reports Hours / year 54.08 54.08 54.08 301.60 301.60 301.60 $ 245.20 $ 245.20 $ 245.20 Cost of Reporting $ 2,163.12 $ 2,163.12 $ 2,163.12 $ 12,064.00 $ 12,064.00 $ 12,064.00 $ 9,808.00 $ 9,808.00 $ 9,808.00 Five Year PV $ 9,111.84 $ 8,636.70 $ 7,797.55 $ 50,817.96 $ 48,168.05 $ 43,488.02 $ 41,314.86 $ 39,160.50 $ 35,355.64 Administrator Salaries $ 1,144,358.83 $ 841,637.93 $ 683,877.54 $ 1,359,189.38 $ 926,308.73 $ 684,907.48 $ 1,108,553.74 $ 797,306.17 $ 639,847.78 Administrator Training $ 10,990 $ 8,506 $ 7,637 $ 21,108 $ 15,086 $ 11,587 $ 13,864.58 $ 10,625.60 $ 9,279.17 Cost of downtime $ 358,766.81 $ 68,861.93 $ 23,026.40 $ 553,624.95 $ 106,263.13 $ 35,532.79 $ 461,178.61 $ 88,518.92 $ 29,599.40 Cost of Upgrades / Patches $ 177,448.11 $ 168,195.08 $ 151,853.15 $ 363,358.50 $ 344,411.17 $ 310,948.00 $ 439,588.24 $ 416,665.91 $ 376,182.43 Cost of Reporting $ 9,111.84 $ 8,636.70 $ 7,797.55 $ 50,817.96 $ 48,168.05 $ 43,488.02 $ 41,314.86 $ 39,160.50 $ 35,355.64 Present Value of 5 Years of Operations Costs $ 1,700,675.11 $ 1,095,837.39 $ 874,191.22 $ 2,348,099.13 $ 1,440,236.79 $ 1,086,462.95 $ 2,064,500.04 $ 1,352,277.09 $ 1,090,264.41 Figure 11 Comprehensive TCO Analyses 21

To discuss this report, please contact: Rencana LLC Steve Curtis Principal 949.385.0513 steve@rencanallc.com All rights reserved. Reproduced and distributed to a Limited Access audience by Inc. with permission. 22