Oracle – Benefits of Outsourcing The

Management Of Oracle Software

Anirudha Sharma Bhamidipati Anirudha Sharma Bhamidipati Systems ArchitectSystems ArchitectDayco Telecom C.A.,Dayco Telecom C.A.,

Daycohost Relationship with Oracle

• Daycohost is a Oracle Partner with Oracle for :

– General technology hosting.

– OPP Member - iPlatform CP.

• Fair % of Daycohost projects involve Oracle platform:

– More than 30 technical personnel with expertise in various levels across the range of Oracle products

– Solutions hosted using both 8i,9i Technology and 11i Applications across multiple Operating systems.

• Daycohost works closely with Oracle across various technology deployments

Agenda:

. Present day Information Technology (I.T) Crisis.

. Solution – Outsourcing.

. Why Outsource?

. ASP.

. How does ASP model work?

. Advantages: Focus – Oracle.

. Tips to Successful – ASP Outsourcing

. Migration Issues.

. How is the existing infrastructure affected?

. Why Linux? Building the case for Linux.

. Tests – Linux RH Advanced Vs. Solaris 8

. Case Study : Messaging in ASP model.

. Q & A.

Present day Information Technology (I.T) Crisis

Growing needs of users , providers & customers. High Capital Expenditure. Lower and still shrinking I.T budgets. Growing bandwidth costs. Growing complexity of Business Processes. Fast Growing Business Content. Higher Logical Security requirements. Better Management of I.T processes expected. Greater Integration of I.T investments expected -Defacto. Higher expectations from low investments in IT. Low Manpower hiring rates. Tough Political,Economic situations facing most Countries. Failing I.T returns due to Complexity and heterogenity.

Result : Greater focus on Optimization, cost reduction, centralization and faster changes and decisions in I.T management.

OutsourcingIntroduction to Outsourcing:

Outsourcing of I.T Applications, implies that corporations, companies who assign their I.T responsibilities to 3rd Partie(s) who will maintain and effectively respond to complete these responsibilities facilitating the Client concentrate on core business issues.Outsourcing also is divided into the following areas:

I.T Infrastructure.Business Apps.Human Capital for I.T.I.T Change Management.

Based on which providers are divided into two areas:

ASP ( Application Service Providers ) Development Oursourcing Providers

Why Outsource?Outsourcing is a method to achieve :

Better control on Core Business Issues. Non-Obsolute I.T Capital investments. Effective use of existing I.T Capital goods such as

Hardware and Software. Lowest Software Acquisition costs. Lower Costs in Manpower. Proven Logical and Physical security. Growing needs of users , providers & customers. Better bandwidth management to lower costs. Proper control over growing complexity of Business

Processes. Fast Growing Business Content is easily managed. Effectiveness in the Management of I.T processes. Greater Integration of I.T investments. High expectations from low investments in I.T

achived through Agreements. Valuable Consultancy and resources. Effective reuse of existing Human Capital.

ASP – Application Service Provider

Application Service Provider is one who provides the following:

Technology Expertise. Project Management Expertise. Business Domain & Integration

Expertise. 24x7x365 Application Support. 24x7x365 Infrastructure Availablity &

Network Operations Center. 24x7x365 Highly Trained Technical Tier

based Support. 24x7x365 Backup & Restore Services. 24x7x365 Data Replication Services. 24x7x365 Data storage on Demand

facility. 24x7x365 OOB (Out Of

Band)Infrastructure. 24x7x365 Network management. 24x7x365 Multiple Bandwidth

Providers. OSS Billing. Branch office Connectivity. 24x7x365 Global Load Balancing.

24x7x365 SLAs (Service Level Agreements)

24x7x365 Electrical Facilities along with Alternate Power Facilities.

24x7x365 Service Resolution. Anti-Sesmic & anti-Flooding Facility. High physical Security complex. CRM (Customer Relationship

Management). Online Ticketing. Business Continuity Planning

Capabilities. Flexible pricing structure. Highly available Logical security. Remote connectivity & diagnostic

tools. Multiple alliances with Software &

hardware providers.

How does the ASP model work?

ISVSoftware

End-User/

Clients

Carrier / ISPNetwork

ServicesData Center Facility

Apps Management

Technical Support

Change Management

Customization

ASP

Apps On Rent

Apps Installation

Telecom - Connectivity

Source: Lucent NPS 2003

The ASP Value Chain

Service Service IntegrationIntegration

• Provide application customization services

• Provide business process design and integration

• Provide application aggregation services

• Provide application customization services

• Provide business process design and integration

• Provide application aggregation services

SolutionsSolutionsDistributionDistribution

• Provide data center and collocation services

• Administration of enabling network technology

• Provide network access and connectivity

• Provide data center and collocation services

• Administration of enabling network technology

• Provide network access and connectivity

SolutionsSolutionsProvisioningProvisioning

Customer Customer InterfaceInterface

CustomerCustomerCustomerCustomer

ASPASPASPASP

Partner Management

• Production and creation of content

• Application creation development

• Provide software applications - enabling application technology

• Administration of enabling application technology

• Production and creation of content

• Application creation development

• Provide software applications - enabling application technology

• Administration of enabling application technology

• Manage customer relationship

• Provide single point of contact for all issues

• Marketing and sales

• Manage customer relationship

• Provide single point of contact for all issues

• Marketing and sales

Value Chain

Source: Lucent NPS 2003

Importance of Competencies When Selecting an ASP

Source: Lucent NPS 2003

Trends ASP

Biggest Web Service Challenges For I.T.Management

27%

11%5%15%

42%

Vendor Support

UncertainTechnology

Technology/StandardsLimitationsBusiness Value

Complexity ofImplementation

Source : Infosys

Advantages: Focus – Oracle.

Traditional

Customer

Customer

Customer

Customer

Customer

ASP

AuthorizedPartner

AuthorizedHosting TechnologyPartner

ISV / In-houseApplication

Data Center

Implementation

Application / H.W / S.W-Administration

Telecom - Connectivity

Product Support

OSS

ISV / In-house

Oracle Management – ASP.

One of the most effective methods to manage your Oracle database and applications is via web with OEM (Oracle Enterprise Manager)

Features of OEMOEM is used to monitor the following issues:

End to End monitoring and problem response.

Event Monitoring.

Automate repetive Administration tasks.

Storage management.

Collaborative management.

Automated Discovery.

Associating Managed targets.

Blackout periods.

Service performance optimization.

Business Impact reporting.

Service level monitoring.

Application health Assesment.

Administrative impact reporting.

Instance Management.

Schema and Data management.

Security management.

Replication management.

Tips to Successful – ASP Outsourcing

Bring ASP in early.

Present specific Business Issues to be presented as a Tech Solution to check TCO factors.

Collaborate, don't dictate it stops 2 way communication.

Be clear about what you need from the ASP.

Be decisive after visiting the Data Center facility.

Prioritize on what u need from the ASP.

Set clear goals for the project and the SLA’s.

Think in versions of all software and hardware and its applications.

Ask questions regarding all factors including 24x7 support.

Learn the implications and train to administer apps.

Ask about implications.

Smile ,nod and then GO ahead.

Migration Issues.

General Issues:

Hardware Comparision.

Network Performance.

Oracle Versioning and binaries comparision.

Operating system comparision.

Telecom Facilities.

24x7 Support facilities.

OOB management.

Patch Management.

SLA compliance Levels.

Response time compliance and penalties.

Apps support.

Migration Issues.

Oracle Issues:

Installation of Oracle Database.

Java SDK Version,Kernel version,FS type.

Hard disk space and partitions.

TNSlistner Configuration.

Database Features.

Database Layout (Oracle BinariesControl files, Logs, Misc.Undo tablespace,

Users tablespace,Indexes) and SQL queries,PL/SQL scripts.

OEM (Oracle Enterprise management)

Data Guard.

Clustering and Load Balancing

O.S – Security, logfiles, tuning parameters.

Hardware Performance ( CPU(s) behaviour, hard disk I/O, Memory

refresh rates, NIC performace, Uplinking bandwidth)

How is the existing infrastructure affected?

Lowest I.T Acquisition Costs.

Lower I.T Administration Costs.

Less Intensive I.T management.

Proactive alignment with Business requirements.

Lower bandwidth requirements ( OOB via VPNs).

Better and firm control over Core Business.

Required Internal Service levels are insight.

• “More with less is achieved in the STP(shortest time path)”.

So ….Why Linux?

‘ The HUMAN MIND once streched by a NEW IDEA never goes back to its ORIGINAL Dimension.’ – Oliver Wendell Holmes

Building the Case for Linux

30 – 40 % lower hardware costs.

Open License on use of Linux OS distributions. No hidden costs. Most secure O.S & with proven Industry standards in DB.

Oracle Support for both Linux and its products.

This means lower support costs.

One of the largest and most technically invovative

products are being migrated to Oracle on Linux.

Collaboration is a integral part of this solution.

Largest and growing Linux users group worldwide.

Messaging costs one of the lowest and most

customizable.

Ongoing Improvement of services and client

demands can be met effectively.

Building the Case for Linux -TCO

Building the Case for Linux

Pros

Effective when primary consideration is reduced cost. Appropriate when analysis of the whole business is not feasible due to time, scope, or limited access to existing apps. Java based apps. Highly mobile and secure on the non secure internet. Easy Remote Management and administration. High level of Data Security and availability. Efective failover clustering and load balancing including over WANs. Great for BCP (Business Continutity Planning) requirements. Minimal impact on business context to client (user) base. Highest Level of customization of content FOR & BY THE USER can be achieved. Administrators have better sleep. Great management tools like OEM (Oracle Enterprise Manager & Data Guard), provide proactive reporting, recovery from human , system errors and disasters.

Cons Doubts on Little-to-no emphasis on benefits or value-added services of Linux distribution manufactures. O.S. rapid Change management. Hidden Costs – Like O.S. Support. Training Costs. Apps Non-availabilty and Migration to Linux.

Sample Prices of Hardware

Dell PowerEdge 6450 Dell PowerEdge 8450 Sun Enterprise 4500

Operating System Red Hat Linux Advanced Server 2.1

Red Hat Linux Advanced Server 2.1

Solaris 8.0 7/01

CPU 4x 700 MHz Pentium III Xeon 8x 700 MHz Pentium III Xeon 4-CPU: 4 x 450 MHz 8-CPU: 8 x 450 MHz UltraSPARC-II

CPU L2 Cache 2 MB 2 MB 8MB

Memory 4 GB 8 GB 4-CPU: 4 GB8-CPU: 8 GB

Internal Disk 4x 18 GB* 2x 36 GB* 2x 36 GB*

External Disk PowerVault 210S - 10x 18 GB* PowerVault 210S – 10x 18 GB* StorEdge D1000 – 8 x 36 GB*

NICs 2x 100 Mb/s (1 internal, 1 PCI card)

2x 100 Mb/s (1 PCI card) 1x 100 Mb/s (I/O card)

RAID Controller 2x PERC/2 Dual Channel 2x PERC/2 Dual Channel A3500FC RAID Controller

Video On-board On-board Remote console

Height 4 Rack Units (4U) or 7-inches

7 Rack Units (7U) or 12.25-inches

8 Rack Units (8U) or 14-inches

Price as configured $23,827 $52,310 4-CPU: $147,0858-CPU: $228,885

Source http://www.dell.com 5/7/02

http://www.dell.com 5/7/02

http://www.sun.com 5/7/02

Database Server Comparison: PowerEdge 6450 and 8450 vs. Sun Enterprise 4500

Sample Oracle Pricing

Oracle pricing is per CPU and is the same on all platforms. Some sample list pricing from Oracle’s web site is provided below.

4 CPUs 8 CPUs

Oracle9i Database Server Enterprise Edition

$136,000 $256,000

Source http://oraclestore.oracle.com 5/7/02

Hosting - ASP 4 CPUs 8 CPUs

Oracle9i Database Server Enterprise Edition $ 4,000 $8,000

Source Daycohost *

Tests

The workload consisted of simultaneously running the eight queries and measuring the elapsed time with the Oracle timing function. Simultaneous execution was achieved by starting each query in background mode in a simple shell script using the SQLPLUS command. The scripts were run directly on the database servers. Three runs were performed on each system, with the results averaged.Four- and eight-CPU test results are shown in below and overleaf, respectively.

System Average Query Time (sec)

Performance:DellAdvantage

Price asConfigured(see Table 1)

Price:DellAdvantage

Price/|Performance:DellAdvantage

Sun Enterprise 4500 w/ 4 CPUs

66.85 1 $147,085 1 1

Dell PowerEdge 6450 w/ 4 CPUs

39.58 1.69X $23,827 6.17X 10.43X

Hosting ASP Pricing –Dell PowerEdge 6450 w/ 4 CPUs per month

X X $ 2779.81 X x

Note : 4-CPU Test Results: PowerEdge 6450 vs. Sun E4500 w/ 4 CPUsIn the 4-CPU comparison, the Dell PowerEdge 6450 completed the eight queries in an average time of 39.58 seconds, 69% faster than the Sun E4500’s 66.85 seconds. The Dell system tested was 6.17 times less expensive than the Sun, giving Dell an overall price/performance advantage of 10.43X.

Tests

System Average Query Time (sec)

Performance:DellAdvantage

Price asConfigured(see Table 1)

Price:DellAdvantage

Price/Performance:DellAdvantage

Sun Enterprise 4500 w/ 8 CPUs

35.54 1 $228,885 1 1

Dell PowerEdge 8450 w/ 8 CPUs

22.92 1.55X $52,310 4.38X 6.79X

Note: 8-CPU Test Results: PowerEdge 8450 vs. Sun E4500 w/ 8 CPUsThe 8-CPU comparison between the Dell PowerEdge 8450 and the Sun E4500 is similar: the eight queries take an average of 22.92 seconds on the Dell system, 55% faster than the 35.54 seconds on the 8-way Sun. With a price 4.38 times less than that of the comparably equipped Sun E4500, the PowerEdge 8450 has a 6.79X price/performance advantage.

Based with DELL whitepaper ESG.

Why is Messaging so Important?

It’s all about EAI (Enterprise Application Integration) and thethe Portal. Inside companies ( E-mail users) B2B – Business to Business B2C – Business to Customers B2G – Business to Government (E-Governance)

A Little Bit of History

Message Management(Journalizing, Tracking …)

Message Routing and Transformation

Business Logic

Message Oriented Middleware

The Network

Message Oriented Middleware

Business Logic

Business EventManagement

Business Intelligence Workflow Tracking/Auditing Routing – Publish/

Subscribe Transformation DistributionNetworking API’s

Message Distribution

Message Routing and Transformation

Business Logic

Message Management( Ticket Tracking)

Integration within an Enterprise

• To implement cross-departmental business processes

Finance

Sales

Marketing

InternetLAN

Intranet

Operations

B2B - Business to Business

Manufacturer

Customer

Supplier

InternetLANWAN

• For efficient supply-chain management • To integrate with partners, vendors and customers• To expand delivery channels

B2C - Business to Customers

Corporate data

Back OfficeFront Desk

Accounting

Manufacturing

Human Resources

Customer Support

Sales ForceAutomation

Marketing

InternetWebServer

Intranet

To improve customer responsiveness

Calendar

E-mail

VoicemailFiles

Search

Microsoft Outlook

Fax Voice

WirelessWeb

iMeeting

Introducting the most complete Messaging SuiteIntroducting the most complete Messaging Suite

EmailEmail

VoicemailVoicemail

CalendarCalendar

FilesFiles

App View

System Architecture View

Web based….. 30,000 Users Per Database

Case Study : Messaging in ASP model.

• All Information In The Database and Encrypted. (15 Security Certifications)• Single search for all data sources with ultra search.• Less disk space usage for user data.• Single backup.• Anti-virus features for E-mail.• Inbound, outbound emails retain and archive.• Server side rules.• Web based user interface and access to popular email clients.• Multiple domains can be hosted effectively.

The above makes Oracle Collaboration suite Service Provider friendly.

Features of Oracle based Email.

Industrial strength, standards based email server IMAP4, SMTP, POP3, HTTP

Rich SPAM and Virus checking / blocking tools Built in List-server capabilities Webmail client Native support for OiD Support for Outlook through Oracle Connector for Outlook Migration Tools from popular servers

Exchange, Notes, GroupWise, OpenMail

Features of Oracle based Calender.

Rich resource scheduling Book resources based upon attributes or hierarchy Approve/reject resource request through workflow integration Real-time scheduling

iMeeting integration Schedule and Join an iMeeting through calendar Access iMeeting archive through Calendar

Connector for Outlook Presents Oracle Calendar in Outlook Server-side rules including Out-of-office Assistant Delegated management of email folders IMAP performance optimizations

Features of Oracle based Files.

Collaborate on creation: share, edit, version. Flexible user access. Web user interface and Windows Explorer access.

Features of Oracle based iMeeting.

Cobrowse - Synchronous HTML-based browsing of Internet or Intranet sites Document Presentation - Present MS Office, HTML, text, and image files Whiteboard - Select from a palette of tools to draw or annotate on screen Desktop Sharing - Share any region, application, or entire Windows PC desktop Chat - Public, private, or group chat with Online Presence in a meeting Voice Streaming - Listen-only voice streaming from any telephone to attendees Store - Store all documents and transcripts securely in database. Playback - Playback recorded meetings from the Archives Deploy - As Hosted Service or Enterprise License.

Features of Oracle Voicemail & Fax

Wireless

Analog

Web or Client

Voice Messages accessible from the phone and other devices Substantial cost savings in consolidating voice & email

infrastructure in the Data Center

EmailVoicemail

Fax

Features of Oracle Wireless & Voice

• Integrated wireless• Voice Collaboration• Personalized access to critical messages• Information finds you where you are • Standards support

Features of Oracle Synch Server

SyncML server built into Collaboration Suite Many existing SyncML clients

Nokia Ericsson And other manufacturers.

Information is automatically synchronized with clients No additional coding required

Features of Oracle UltraSearch

UltraSearch

Appointments

Emails

FilesDocuments

Voicemails

Web Pages

Conferences

Case Study in ASP Model

Messaging and collaboration – TCO Study based on the similar Hosting services in Venezuela.

TCO in Venezuela.TCO in Venezuela.

Under ASP Model for 1000 users with all ASP Services including the general configuration:

2 – Front-end Oracle 9i AS servers with RedHat linux 9 Professional.

2 – Back-end Oracle 9i DB RAC servers with RedHat linux AS.

Case Study in ASP Model

Description CostFront End Web Servers – 9iAS(Dell 2650 – 2 CPU @Xeon GAL 2.8GHz, 12 GB RAM / 2x36GB SCSI Raid 1,RHLinux 9 Professional) as on 17 august 2003 dell-ven

$ 24,530

Front End Web Servers – 9iAS(Dell 2650 – 2 CPU @Xeon GAL 2.8GHz, 8 GB RAM / 3x73GB SCSI Raid 5 ) as on 17 august 2003 dell-ven

$ 42,720

Cost of Oracle Licensing(Including Support of both Oracle apps and Linux) per month

$ 8,000

Cost of Infrastructure / year (Bandwidth + Electricity + Housing + Administration of 4 hours a month + 5 GB Backup)

$ 20,000

Final Costs per month ( Given that contract period is 2 years)

$ 11, 635.42

Per User Cost (1000 users) $ 11.63$ 11.63

Why spend more…..when u get the very best for Less!

AQ&Q U E S T I O N SQ U E S T I O N SA N S W E R SA N S W E R S

Anirudha Sharma Bhamidipati Anirudha Sharma Bhamidipati Systems ArchitectSystems Architect

Dayco Telecom C.A., Caracas, Venezuela.Dayco Telecom C.A., Caracas, Venezuela.Website: http://www.daycohost.comWebsite: http://www.daycohost.com

E-mail: as@daycohost.comE-mail: as@daycohost.comDirect: +58-212-999-9080Direct: +58-212-999-9080Fax: +58-212-999-9011Fax: +58-212-999-9011

Mobile: +58-416-7272611Mobile: +58-416-7272611

Anirudha Sharma Bhamidipati Anirudha Sharma Bhamidipati Systems ArchitectSystems Architect

Dayco Telecom C.A., Caracas, Venezuela.Dayco Telecom C.A., Caracas, Venezuela.Website: http://www.daycohost.comWebsite: http://www.daycohost.com

E-mail: as@daycohost.comE-mail: as@daycohost.comDirect: +58-212-999-9080Direct: +58-212-999-9080Fax: +58-212-999-9011Fax: +58-212-999-9011

Mobile: +58-416-7272611Mobile: +58-416-7272611