B2C Hosting

March 21, 2012

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Executive Summary

Business Problem:

The primary goal of the project is to provide a world class web hosting Infrastructure and web engineering support for Sony Pictures customer facing web sites and web applications. Currently, it’s targeted to support three major line of businesses within SPE.

- Sony Pictures Interactive (Sonypictures.com)- Produces award-winning content, websites and comprehensive digital marketing of Sony

Pictures Entertainment business and Production units- Crackle (SPT Crackle.com)

- SPE's premium video website featuring high quality original content and television shows, and feature films from the studio's library

- SPTI (SPTI Production and Platform Development)- Sony Pictures Television (SPT) hosts over 70 discrete branded international websites for

AXN, Animax, and Sony Entertainment Television Worldwide

Issues with the current model are:- Satisfactory support from SNEI - High cost of hosting & support

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Proposed Solution

The services provided by of IST will include:

- Systems Administrations/Engineering Serviceo OS Management (Primarily LAMP stacks)o Systems Monitoring

- Web Farm Management Serviceo Virtual Hosting Management (Apache Virtual Hosting and release management)o URLs / Redirect Management (New URL redirect and update)o File Management (Web content publishing management)o Scheduled Publishing Management (Web content publishing management)

- Network Management Serviceo Web Hosting Network Core Infrastructure managemento Web Network Security including Firewall and Intrusion Detection managemento Network Protocol Analysis and bandwidth management for billingo VIP and DNS update service

- Application Management Serviceo Open source application management such as Tomcat, Alfresco CMS, vBulletin,

Google search

- Database Management Serviceo Enterprise MySQL, and MS SQL management

- Storage/Backup Management Serviceo Web Hosting Shared Storage managemento Storage and backup monitoring

Host the websites within SPE’s data center and create a new group, Internet Systems Technology (IST), to support these sites.

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Executive Summary

Project Costs• Software: $

0K• Hardware $

1,073K• Internal Labor: $

222K• External Labor: $

271K• Other/Miscellaneous $

0K

Total Year One Costs: $ 1,566K

FY 13 Project Benefits• Hard $ Benefits: $

1,094K• Soft $ Benefits (Error prevention): $

0K• Soft $ Benefits (Efficiencies): $

0K

FY13 Project Benefits: $ 1,094K

Five-year Summary and Payback• Five-year total costs:

$8,450K• Five-year total benefits:

$9,912K• Five-year net benefit:

$1,461K• Internal Rate of Return

24.7%• Net present value @ 10%: $622K• Payback: 37 months

This project is in the FY13 BudgetFunding Needed FY13 $ 0KFunding Needed FY14 $ 0KFunding Needed FY15 $ 0K

Total Project Costs $ 0K

Depreciation:On Going Costs: $ 1,403K

FY14 FY15 FY16 FY17 FY18 FY19$187,957 $250,609 $250,609 $250,609 $250,609 $62,562

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Benefits

Cost Avoidance $1,896K 1,020K SonyPictures.Com Hosting & Support 876K Crackle.Com Hosting & Support

Risk Mitigation $0 0

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Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Project Timeline

2012 2013

Infrastructure Build Out

Migration Of Crackle.Com

Hire & Build ITS Team

Migration of SonyPictures.Com

Migration of First SPTI Web Site

Creation of Support Process

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Appendix

Current Operating Cost

• Sony Pictures Interactive (Sonypictures.com)– Avg. $85,000 per month to SNEI ($1.02M per year)

• Sonypictures.com - $70,000 per month (example below)

• Adam Sandler - $6,000• Games Network – $10,000

• Crackle– Avg. $73,000 per month ($876K per year)

• $63,000 per month to Level 3 Colocation datacenter in Emeryville• $10,000 per month to SNEI for Systems/Network Support

– Crackle expects to reduce their hosting budget drastically, if they can move out of Level 3 datacenter. They expect the hosting fee should be under $45,000

• Sony Pictures Television International– Avg. $15,000 per month ($180K per year) to CopperFrog Drupal Hosting

provider

DESCRIPTION RATE USAGE UNITS TOTALTotal FeesBandwidth – Backbone $9 142.8 Mbps $1,285 Managed Storage $2.00 3,560.0 GB 7,120 Production $1,565 27 Instance 42,255 Non-Production 1,155 15 Instance 17,325 TOTAL INVOICE $67,985

Function Description Qty CostNetwork Core - Cisco 6509-E Routers/Switches 2 $265,000.00ADC (Application Delivery Controllers) - A10 5520 Load Balancer 2 $260,000.00Network Aggregate (TOR) Switches - Cisco Nexus 5010 (10G and 1G) with 10G SFPs 7 $100,000.00Enterprise Network Firewall - Cisco ASA 5585-X S40 Firewall 2 $112,000.00Out of Band Serial Console - Serial / Modem Terminal Server 1 $30,000.00Two Factor Authentication - RSA/Secure Auth 2 $40,000.00

Storage Network Attached Storage - NetApp 3240 or Isilon (10TB) 2 $180,000.00Security Change Management Auditing, Configuration Control and Compliance - Solidcore or Tripwire

Total $987,000.00

Data Center Rack and Cable Plant build out - 8 Racks, 4 Ports FOP and 24 UTP back to Network $30,000.00Network ARIN (America Registry for Internet Numbers) - AS(Autonomus System) and Address Space Request $5,000.00Network Network 10G Circuit - Initial Circuit Installation $1,000.00Network Network PDU Installation $20,000.00Migration External Load Testing Service for the Migration $20,000.00

Total $76,000.00

Internal Labor Internal Labor (5 FTEs - $76.00 per hour rate) $790,400.00Network DNS Management for external DNS $50,000.00Network 2 x Redundant Carriers 10G Network Circuit $96,000.00

Tool Incident/Service Ticket Management Systems $5,000.00

Data Center8 Racks (@$25.75 per SF based on 8.5 SF per 19 inch rack - $17K per Year)Power (@$150 per 1Kwh, assumption 20Kwh - $36K per Year)

$53,000.00

Maintenance Network, Storage Hardware/Software Maintenance $250,000.00Security DDoS (Distributed Denial of Service) Attack Mitigation Service such as Prolexic, Verisign, Neustar

Total $1,244,400.00

Network

Initial Infrastructure Cost

One Time Initial/Migration Cost

Operating Expenses (Yearly)

Infrastructure Initial/Operating Cost Analysis

High Level Migration Plan

1. Build out Core Infrastructure at El Segundo Datacenter1. Order 2 x 10G IP transit cross connect and Infrastructure Hardware2. Order ARIN for AS and Portable IP space3. Setup production network, VPN to peers, server farms, and storage4. Setup Monitoring systems5. Setup/Migrate Incident/Service ticketing systems

2. Validate Infrastructure fail-over1. Validate BGP, HSRP, VRRP for network fail-over2. Validate Server Load balancing and NAS Storage controller fail-over

3. Perform Infrastructure security assessment1. Address any critical security issues

4. Critical Services Migration1. DNS Migration (Service from SNEI to UltraDNS)2. Web Farm Migration (initial Apache image migration)3. Storage Migration (data migration from SNEI to SPE)4. Database Migration (MySQL data migration from SNEI to SPE)5. CDN Updates (Content Distribution Network updates for the new Origin servers)

5. Load Testing1. Prepare environment for real load simulation from the external load test vendor2. Run simulated peak load along with DDoS simulation (Network, Server, and Storage fail-over and design

validation)3. Make necessary design and configuration changes to the environment if needed4. Run another load test for the final confirmation of the Infrastructure performance

6. Final Cut-over1. Communicate with line of businesses2. Synchronized all data from SNEI to SPE (Storage, Web/Server configuration, and Database)3. DNS Cut-over4. Validation