Financial SummaryFor

WebLogic Migration Greenlight(Group 2 Apps)

Apr 13, 2012

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Business Problem

• Many of the SPE IT custom J2EE applications are currently using the Oracle WebLogic application server. The WebLogic technology is end of life and thus adds overhead in terms of cost of maintenance and support. There is a need to migrate to the better efficient and cost effective platforms to reduce cost of support and ease of maintenance/enhancement and development.

• Current version of WebLogic is at ‘End of Life”

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Background

• In 2009, SPE IT decided to leverage the open-source JBoss platform for all new custom development projects. Some of the benefits of the JBoss are reduced ongoing operational costs, improved IT productivity and time to market, and improved ability to consolidate virtualization.

• Following are some key issues with current WebLogic framework –– Complexity: - While WebLogic is extremely powerful, it is also very complicated, both to program and to

administer. Today’s IT budgets require “do more with less” processes and staffing, making it difficult to sustain such server environments.

– Productivity: - Developer productivity is also somewhat higher with Tomcat, particularly for those applications that do not require the complexity of WebLogic. Whereas a Java developer may take days to set up and configure instances of WebLogic, they can often do this in hours or even minutes for JBoss.

– Heavy Weight: - Also driving complexity reduction is the need for IT agility. Whereas business applications used to take years to develop and deploy, business requirements now demand applications in weeks/months. This requirement drives architectural and process changes, including a transition to a more horizontal, lighter-weight, more modular deployment architecture. WebLogic is both too costly and too heavyweight to meet these requirements.

– Costly: - Maintaining WebLogic is very costly, not the least because of the vendor’s service contract pricing, but also because of the amount of hardware required supporting a WebLogic instance and the associated space/power/cooling costs.

• Standardizing the framework of all the applications & aligning them on the single platform is the need of the hour as it offers a lot of benefits in terms of cost savings and ease of maintenance/support

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Executive Summary

Project Costs• Internal Labor: $ 0• External Labor: $ 710,000• Other/Miscellaneous $ 0

Total Costs: $ 710,000

Project Benefits• Hard $ Benefits: $ 247,700• Soft $ Benefits (Error prevention): $ 348,551• Soft $ Benefits (Efficiencies): $ 822,720

Total Project Benefits: $ 1,418,971

Five-year Summary and Payback• Five-year total costs: $ 710,000• Five-year total benefits: $ 1,418,971• Five-year net benefit: $ 708,971• Internal Rate of Return 40.5%• Net present value @ %: $ 390,132• Payback: 25.5 months

Funding Needed FY13 $ 710,000

Total Funding Need $ 710,000

Funding Request details : $ 710,000o TCS Labor $ 337,868o Project Manager for FY 13 $ 96,902

o QA Manager for FY 13 $ 66,150o WDG Resource for FY 13 $ 56,360o IDM Resource for FY 13 $ 56,360o TCOE Resource for FY 13 $ 56,360o Redhat Migration – Additional Funds $ 40,000

* Approx amount for FY13

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Benefits

Cost Avoidance $ 247,700

Reusability - Projects (Code Reusability) Reusability - Enhancements (Code Reusability) Mobile Development Readiness (Productivity Gains for apps that

require mobile enablement) Use of Free Developer tools instead of paying for development

tooling on WebLogic Reduction in License Fees/Maintenance savings from WebLogic to

JBoss

Risk Mitigation $ 348,551

Unsupported HW - Labor (Additional Time in Hrs required to fix a issue due to the lack of vendor/product support. Multipler is the # of issues / year / app)

Unsupported HW - Outage Cost (Multipler for the % chance of a hardware issue causing an $$ impact per app due to an outage)

Unsupported SW - Labor (Additional Time in Hrs required to fix a issue due to the lack of vendor/product support. Multipler is the # of issues / year / app)

Unsupported SW - Product Patches (Multipler for the % chance of a new vulnerability not being patched in a timely manner causing an $$ impact per app due to an outage or security bug)

Unsupported SW - Remediation of Security/Vulnerability Issues (Additional Time in Hrs required to fix a issue due to the lack of vendor/product support. Multipler is the # of issues / year / app)

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Benefits

Cost Efficiencies $ 822,720

Skill Set - Loss of productivity (Productivity Loss due to not finding resources for 1 month per resource * TCS attrition rate of 20% * ~100 resources working on J2EE projects)

Productivity Gains - Projects (Productivity Gain due to standard technology and open source (based on $$ spent on the construction phase of custom Java/J2EE projects) in FY 12)

Productivity Gains - Checkbooks (Productivity gain for the number of CB hours allocated to the applications in scope)

Productivity Gains - KLO (Productivity gain for the number of KLO hours allocated to the applications in scope)

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High Level Project Timeline