IBM SOLUTIONS FOR SIEBEL ENTERPRISE DEPLOYMENT

March 2005

International Technology Group4546 El Camino Real, Suite 230

Los Altos, California 94022-1069Telephone: (650) 949-8410Facsimile: (650) 949-8415Email: [email protected]

ITG

MANAGEMENT BRIEF

IBM SOLUTIONS FORSIEBEL ENTERPRISE DEPLOYMENT

Cost/Benefit Case for IBM eServer p5and TotalStorage Systems

Copyright © 2005 by the International Technology Group. All rights reserved. Material, in whole or part, contained in this document maynot be reproduced or distributed by any means or in any form, including original, without the prior written permission of the InternationalTechnology Group (ITG). Information has been obtained from sources assumed to be reliable and reflects conclusions at the time. Thisdocument was developed with International Business Machines Corporation (IBM) funding. Although the document may utilize publiclyavailable material from various sources, including IBM, it does not necessarily reflect the positions of such sources on the issues addressedin this document. Material contained and conclusions presented in this document are subject to change without notice. All warranties as tothe accuracy, completeness or adequacy of such material are disclaimed. There shall be no liability for errors, omissions or inadequacies inthe material contained in this document or for interpretations thereof. Trademarks included in this document are the property of theirrespective owners.

International Technology Group i

TABLE OF CONTENTSEXECUTIVE SUMMARY 1

COST PICTURE 2Costs and Benefits 2Summary of Results 2Basis of Projections 4

Composite Profiles 4Configurations 5

DIFFERENTIATORS 6IBM eServer p5 6

Overview 6System-level Performance 6System-level Efficiency 6Service Quality Optimization 8

IBM TotalStorage DS Systems 10Other Variables 11

DETAILED DATA 11

METHODOLOGY 18Configurations 18Costs 18

List of Figures1. Overall Three-year Costs Summary (with Oracle Databases) 32. Profiles Summary 43. IBM eServer p5 System Architecture 74. AIX 5L Security Functions 95. Retail Bank: Configuration and Cost Comparisons 126. Telecommunications Company: Configuration and Cost Comparisons 137. Life Sciences Company: Configuration and Cost Comparisons 148. Technology Company: Configuration and Cost Comparisons 159. Manufacturing Company: Configuration and Cost Comparisons 1610. Consumer Goods Company: Configuration and Cost Comparisons 1711. Scenario FTE Staffing Levels 19

International Technology Group 1

EXECUTIVE SUMMARYWhat is the future of customer relationship management (CRM) in large organizations? Certainthemes emerge clearly.

Organizations that initially deployed Siebel applications at the divisional or departmental level aremoving toward broader strategies. They are finding the challenges of deploying and operating diverse,sophisticated cross-organizational systems supporting large databases and user populationssignificantly greater than those faced in the past.

Front-end capabilities remain critical. But success will be increasingly dependent upon theeffectiveness of the underlying infrastructures that collect, transform, organize and distributeinformation to users and applications across the organization.

This report deals with one aspect of this new picture: the implications of server, storage and databasechoices for overall Siebel infrastructure costs. Specifically, IT costs are projected for six compositeSiebel enterprise installation profiles for scenarios built around latest-generation IBM, Hewlett-Packard and Sun Microsystems UNIX servers, and IBM and EMC disk storage systems.

Results may be summarized as follows:

• System costs. Three-year server and storage system costs for scenarios built around IBMeServer p5 and TotalStorage DS platforms are projected to average 51.7 percent less than forequivalent scenarios built around HP Integrity, and EMC Symmetrix DMX and Clariion CXplatforms; and 64.6 percent less than for scenarios built around Sun Fire servers and the sameEMC platforms.

Lower system costs for IBM scenarios reflect a number of factors. These include greatereServer p5 system-level performance compared to HP and Sun servers; greater DSperformance compared to EMC equivalents; and higher levels of system efficiency for bothsets of platforms enabled by new partitioning, virtualization, and system and workloadmanagement capabilities.

• Database costs. The higher performance and capacity utilization of eServer p5 platformsmean that fewer database server CPUs are required than for equivalent HP and Sunconfigurations. As a result, database costs are also lower.

In IBM scenarios, three-year costs for Oracle 10g database software and databaseadministration (DBA) personnel are projected to average 45.7 percent and 80.6 percent lessthan for HP/EMC and Sun/EMC scenarios respectively. If database servers are configuredwith IBM DB2 rather than Oracle 10g, comparable costs for IBM scenarios are projected toaverage 47.1 percent and 83.1 percent less respectively.

IT costs are, however, only part of the cost/benefit equation. The new technology capabilities of theeServer p5 and DS platforms, along with their strengths in availability, recoverability, security andother areas, are fundamentally synergistic with critical requirements for CRM success in largeorganizations.

The potential thus emerges not only to achieve breakthrough gains in IT cost-effectiveness, but also torealize a broader transformation of the full range of customer-facing and informational processes thatconstitute the Siebel enterprise environment.


COST PICTURE

Costs and BenefitsThe CRM world is changing. Market focus is shifting to enterprise-level solutions and cross-organizational integration. Systems are becoming increasingly complex and interdependent.Traditional boundaries between CRM and analytical applications are eroding.

At the same time, databases continue to expand, and data structures grow more complex. Reductionof back-end integration complexities is a critical priority. New pressures for real-time informationdelivery mean that data management and movement processes must be accelerated. Demands areescalating for 24x7x365 availability, more effective backup and recovery, and improved security.

It is from this perspective of strategic change that new IBM platforms should be viewed. Both theeServer p5 and the DS8000 are clear leaders in price/performance in their respective markets. Toachieve major gains in capacity utilization, both employ partitioning, virtualization, and system andworkload capabilities, which are – by wide margins – superior to those of any competitive platform.The low-end DS6800 is also a performance and cost leader in the small storage systems bracket.

This document deals primarily with the cost implications of these capabilities. But a firm distinctioncannot be drawn between cost issues and broader, less easily quantifiable benefits that may bedelivered in functionality, in service quality, and in the enablement of business advantage.

An efficient system delivers not only greater cost-effectiveness, but also reduced vulnerability toperformance bottlenecks, outages, loss of or damage to data, and security violations. It offers greaterpotential for server consolidation, and facilitates the simplification of underlying Siebel 7infrastructures. Funds, skills and organizational focus may be devoted to higher value-added tasks ofapplication delivery, rather than to making underlying platforms work properly.

Summary of ResultsFor IBM eServer p5 and TotalStorage DS scenarios, three-year hardware, maintenance, systemssoftware and facilities costs for servers and storage systems are projected to range from 43.3 percentto 66.8 percent less than for HP and EMC equivalents, and from 54.8 percent to 74.7 percent less thanfor Sun and EMC equivalents. Overall averages are projected to be 55.7 percent and 68.3 percent lessrespectively.

If three-year personnel costs for system and storage administration are included, overall system costsfor IBM scenarios are projected to range from 36.0 percent to 59.7 percent less than for HP and EMC,and from 41.6 percent to 69.9 percent less than for Sun and EMC equivalents. Overall averages areprojected to be 51.7 percent and 64.6 percent less respectively.

Three-year Oracle costs for IBM scenarios, including software and personnel costs for databaseadministration, range from 5.7 percent to 67.7 percent, and average 45.7 percent less than for HP andEMC equivalents; and range from 75.6 percent to 88.5 percent, and average 80.6 percent less than forSun and EMC equivalents.

If database servers are configured with Oracle, overall three-year costs for IBM scenarios are projectedto range from 32.4 percent to 62.4 percent, and to average 49.8 percent less than for HP and EMCequivalents. Compared to Sun and EMC scenarios, overall IBM costs are projected to range from 63.0percent to 79.2 percent less, and average 72.4 percent less. Figure 1 summarizes these results.


Figure 1Overall Three-year Costs Summary (with Oracle Databases)

Percentage differences in DB2 database costs are generally similar to Oracle. However, moreaggressive IBM software pricing and higher database administrator productivity mean that DB2 totalsfor all platforms are lower than those for Oracle in absolute terms.

If DB2 is employed instead of Oracle, overall three-year costs for IBM scenarios are projected torange from 34.4 percent to 60.1 percent less, and to average 50.7 percent less than for HP and EMCequivalents. Compared to Sun and EMC scenarios, overall IBM costs are projected to range from 58.9percent to 77.3 percent less, and average 71.8 percent less.

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

IBM HP/EMC SUN/EMC IBM HP/EMC SUN/EMC IBM HP/EMC SUN/EMC

$ Th

ousa

nds

HardwareSystems softwareMaintenanceFacilitiesDatabase softwarePersonnel

8,059

16,903

31,934

6,120

11,161

19,338

2,047

5,452

9,827

RETAILBANK

TELECOMMUNICATIONSCOMPANY

LIFE SCIENCESCOMPANY

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

IBM HP/EMC SUN/EMC IBM HP/EMC SUN/EMC IBM HP/EMC SUN/EMC

$ Th

ousa

nds

HardwareSystems softwareMaintenanceFacilitiesDatabase softwarePersonnel

1,396

2,159

3,940

702

1,079

1,958

543802

1,466

TECHNOLOGYCOMPANY

MANUFACTURINGCOMPANY

CONSUMER GOODSCOMPANY


Basis of ProjectionsComposite ProfilesA key prerequisite for effective cost assessment is that configurations for competitive platformsshould be properly sized. Rather than employing standardized industry benchmarks or generalizedcapacity planning assumptions, it was decided to base all platform configurations on actual userexperiences. The following approach was adopted:

• Composite profiles. Data on application suites, workloads, databases, server and storageconfigurations, service levels, capacity utilization and other subjects was collected from 27companies in 6 industries that had deployed Siebel solutions on IBM pSeries and eServer p5,HP Integrity and 9000 Series, and Sun Solaris servers; storage systems from these vendors,EMC and others; and Oracle and DB2 databases.

Using this data, six composite installation profiles were constructed. These are summarized infigure 2.

Figure 2Profiles Summary

Company A Company B Company CIndustry Retail Bank Telecommunications Life Sciences

Profile $250 billion assets$15 billion revenues15 million customers2,500 branches

$15 billion revenues20 million customersWire line, wireless, Internetaccess & business dataservices

$20 billion revenuesPharmaceuticalsConsumer productsInstitutional & retail markets

Siebel Applications Siebel FinanceBranch BankingCall Center/ServiceConsumer CreditMarketing, SalesAnalytics, ERM

Siebel CommunicationsCall Center/Service, CallCenter/Sales, COMeMarketing, eServiceMarketing, Sales,Incentive CompensationLoyalty Management, PRMMarketing Analytics

Siebel PharmaCall Center/Service,Marketing, eMarketing,Sales/Wireless SaleseSales, eService, AnalyticsConsumer HealthcareeDocs

Number of Users 30,000 22,500 12,000

Company D Company E Company FIndustry Technology Industrial Manufacturing Consumer Goods

Profile $5 billion revenues50,000+ customersDirect & channels sales

$10 billion revenuesIndustrial equipmentDirect sales

$20 billion revenuesConsumer packaged goodsDirect & channels sales

Siebel Applications Siebel High TechCall CentereMarketing, Marketing,Wireless SalesCustomer Order ManagementPRM, Field ServiceAnalytics, ERM, UAN

Siebel IndustrialManufacturingMarketing, eSales, SalesCOM, Field Service, Analytics

Siebel Consumer GoodsMarketing, PRMSales/Wireless SalesRetail Execution, TradePromotions, Analytics

Number of Users 5,000 3,000 2,000

A best practices approach was adopted; e.g., the experience of one user with a large-scale callcenter system was combined with the experience of another with marketing and salesautomation, and a third with analytic applications.


• Overall installation. Organizations often focus platform comparisons on their principal CRMsystems. However, server and storage resources will also be required to support back-endmiddleware, extract, transformation and load (ETL), backup and recovery, and otherfunctions, along with development, test, and other non-production applications. These mayrepresent a large part of the overall base of Siebel resources, and should be allowed for.

One important eServer p5 strength is that it enables single physical servers to support a morediverse range of applications, workloads and functions than competitive platforms, whileretaining high levels of performance, capacity utilization and service quality. Evaluationapproaches that focus on limited, application- and workload-specific comparisons of serverperformance tend to understate this potential.

For this reason, configuration comparisons are based on server and storage resources requiredto support the entire Siebel 7 environment in installations.

Further information on profile installations, including configuration and cost breakdowns, may befound in the Detailed Data section. Additional detail on techniques used to construct profiles may befound in the Methodology section.

ConfigurationsConfigurations were developed as follows:

• Servers. For IBM scenarios, eServer p5 510, p5 550 and p5 570 models equipped withPOWER5 1.65 GHz CPUs and AIX 5L 5.3 were employed. HP equivalents were Integrityrx1620, rx2620, rx4640, rx7620 and rx8620 models equipped with 1.6 GHz Itanium 2 CPUsand HP-UX 11i Version 2.

Sun scenarios included Sun Fire E25K, E6900, E4900, E2900 and V890 models equippedwith UltraSPARC IV 1.2 GHz CPUs; V490 models equipped with UltraSPARC IV 1.05 GHzCPUs; and V240 models equipped with UltraSPARC IIIi 1.28 MHz CPUs. The Solaris 10operating system was employed in all scenarios.

Systems software stacks include operating systems; functionally comparable suites of IBMTivoli, HP OpenView, and Sun and Veritas system, workload and storage management tools;and IBM HACMP, HP Serviceguard and Sun Cluster facilities for clustered failover.

• Storage. IBM scenarios included DS8300 and DS6800 systems with Global Mirror remotereplication, FlashCopy point-in-time copy, and Subsystem Device Driver host accesssoftware; and DS4400 (formerly FAStT 700) and DS4300 (formerly FAStT 600) systemsequipped with Remote Mirror remote replication and FlashCopy tools.

EMC scenarios included DMX2000 and DMX800 systems equipped with Symmetrix RemoteData Facility (SRDF) remote replication, TimeFinder point-in-time copy, and PowerPath hostaccess software; and Clariion CX300 and CX500 systems equipped with MirrorView remotereplication, SnapView point-in-time copy, and Access Logix host access software.

• Databases. Configurations are based on Oracle 10g and DB2 Universal Database (UDB)Version 8.2, including Oracle Real Application Clusters (RAC) or DB2 Database PartitioningFeature (DPF) for installations employing database clustering. Larger Oracle configurationsinclude the company’s Diagnostic and Tuning Packs.

Certain assumptions were made about configurations, performance and pricing for EMC, HP, IBM,Sun and Oracle platforms employed in these calculations, and about staffing levels, salaries andpersonnel overhead. These are detailed in the Methodology section of this report.


DIFFERENTIATORS

IBM eServer p5OverviewLower IBM server costs are, to some extent, due to differences in pricing policy between IBM, andHP and Sun. More important, however, is that distinctive technological capabilities enablesignificantly higher levels of cost effectiveness.

The eServer p5 represents a major break with past approaches to UNIX server design. The systemcombines the characteristics of a high-performance RISC-based UNIX server with key featuresderived from mainframe architecture. It is the first UNIX server to incorporate such features.

Compared to HP’s Integrity and Sun Fire servers, the eServer p5 is significantly differentiated in thefollowing areas of capability.

System-level PerformanceThe eServer p5 emerged as an early industry leader in benchmark performance. User experiences haveconfirmed wide disparities in actual performance between the eServer p5 and competitive platforms.

Key strengths include faster processors and a more elegant dual-core implementation thancompetitive platforms; more advanced microelectronics technology across the entire system complex;better compiler- and operating system-level performance acceleration, including chip simultaneousmulti-threading; low symmetric multiprocessing (SMP) overhead; and more effective integration andoptimization of all performance-related features within the overall system architecture.

While the basic POWER5 unit delivers higher CPU-level performance than competitors such as theIntel Itanium 2 (employed in HP Integrity servers) and Sun’s UltraSPARC IV, other eServer p5design variables that contribute to system-level performance are also significantly more effective.

One implication is that industry standard benchmarks, which primarily measure CPU-levelperformance, tend to understate comparative eServer p5 performance. Actual disparities may be larger.

System-level EfficiencyThe performance of a server does not, in itself, say anything about the efficiency with which itoperates. Underutilized, or poorly utilized, server capacity impacts IT cost structures and may impairresponse times and service quality. The efficiency with which workload execution processes areorganized and managed thus becomes a critical variable of system effectiveness and costs.

From this perspective, the eServer p5 platform represents a major industry breakthrough. This isparticularly the case in the following areas:

• Partitioning and virtualization. The eServer p5 is equipped with Logical Partitioning(LPAR) technology that enables use of secure, dynamically reconfigurable physical partitionsrunning separate operating system copies and applications.

HP nPartitions (nPars) and Sun Dynamic System Domains (DSDs) offer functionally similarcapabilities. The IBM approach is, however, more granular – LPARs may be configured inincrements of one CPU, compared to two or four CPUs for HP nPars and four CPUs for SunDSDs – and offers greater management flexibility.


Micro Partitioning is a unique POWER5-based virtualization capability that enablesorganizations to create logical partitions employing as little as 1/10 of a CPU capacity. Thisresults in more flexible, dynamic allocation of system resources to meet changing workloadrequirements. Overall capacity utilization is materially improved.

HP offers a more limited Virtual Partition (vPar) capability only on its RISC-based 9000Series platform, and there is no direct Sun equivalent. The Containers feature of Solaris 10,while occasionally presented as an alternative to eServer p5 micro partitions, does not supportmultiple operating system copies.

In addition, distinctive eServer p5 Virtual I/O technology enables more efficient use of I/Oresources; and Virtual Storage and Virtual LAN technologies enable sharing of disk storageand LAN resources respectively across partitions. There are no direct HP or Sun equivalents.

Partitioning and virtualization capabilities are implemented through a firmware-based“hypervisor,” derived from mainframe technology. This is integrated into eServer p5 systemarchitecture as shown in figure 3.

Figure 3IBM eServer p5 System Architecture

APPLICATIONS

DATABASES/MIDDLEWARE

SYSTEM MANAGEMENT SERVICES

Resource Accounting & ChargebackApplication-based • Transaction-based • Partition-based

eWORKLOAD MANAGER (eWLM)

POWER5

VIRTUAL I/O & STORAGE

VIRTUAL LAN

Cross-partition Resource Management

HYPERVISOR

Inter-partition communications

LPAR LPAR MP MP MPLPAR

MP MPLPAR

MP MP

LPAR: Logical PartitionMP: Micro Partition


• System and workload management. The effectiveness of partitioning techniques is heavilydependent on the management facilities supporting them. This is particularly the case forserver consolidation applications. If system resources cannot be allocated efficiently, and re-allocated dynamically across partitions, capacity will be utilized in an inefficient manner.

The eServer p5 is equipped with exceptionally effective system and workload managementfacilities. These include the mainframe-derived eWorkload Manager (eWLM) as well assophisticated accounting tools that enable use of system resources to be tracked in a highlygranular manner by application, workload, partition, or combinations of these.

Management facilities are integrated into the overall eServer p5 system architecture and builtinto the AIX 5L environment, rather than – as is the case for HP, Sun and other competitiveequivalents – implemented as software overlays. System overhead is thus minimized.

These capabilities affect a number of IT cost items. High levels of system-level performance, andhigher levels of capacity utilization enabled by system efficiency strengths, result in smallerconfigurations. For example, an 8-way eServer p5 may be able to execute workloads for which a 20-way or larger Integrity configuration would be required.

Smaller configurations result in lower hardware costs, and may significantly reduce fees for databaseand systems software offerings priced on a per processor basis. Data center facilities and systemadministration costs may also be lowered. Benefits are magnified when, as is the case in the largerinstallation profiles presented in this report, the eServer p5 offers the potential for significantly higherlevels of server consolidation than may be realized with competitive platforms.

Service Quality OptimizationThe eServer p5 is equipped with industry-leading reliability, availability and serviceability (RAS)features that are derived not only from conventional UNIX server, but also from mainframe designs.

High levels of redundancy are built into all key components, including processor units (PUs), mainmemory, cache, controllers, bus structures, I/O subsystems, channels, adapters, power and cooling,connectors and other devices. Additional redundancy is provided by enabling isolation and correctionof faults within LPARs. Advanced microelectronics technology is employed to provide more than 200monitoring, diagnostic, and fault isolation and resolution functions.

Additional availability functions are built into the AIX 5L operating system and the IBM HighAvailability Cluster Multiprocessing (HACMP) environment, which is generally recognized as anindustry leader in clustered failover for UNIX systems. HACMP Extended Distance (HACMP/XD)supports high-speed failover between remote sites.

These capabilities are increasingly significant for the Siebel world. Any disruption of a customer-facing system affects the bottom line. A customer who experiences an outage – either directly (e.g.,because an Internet or telephone self-service system is down) or indirectly (e.g., because criticalsystems are not available to call center operators, branch tellers, sales personnel and others) – will bedissatisfied.

Dissatisfaction translates into customer loss. Even where customer defections cannot be tied to anyspecific experience, service quality shortfalls contribute to overall levels of satisfaction ordissatisfaction, which in turn materially affect attrition rates. Even if customers do not actually defect,experience suggests that they will be less receptive to purchasing other products or services from thesame company.


As databases and user populations expand, and access is extended to customers and partners via theInternet, maintenance of security and privacy controls become increasingly critical requirements.

The eServer p5 scores well in this area. AIX 5L is also equipped with a full range of securitycapabilities, including latest-generation authorization control, accounting and administration facilities.Representative functions are summarized in figure 4.

Figure 4AIX 5L Security Functions

System Security System ManagementWeb-based System Manager (WSM) securityCluster Systems Management (CSM) domainsecurityTivoli security management

Automated identity managementSecurity event management

Trusted Computing Base (TCB) managementEncryption Standards & Tools

Base system securityUser ManagementPassword managementAccess control listsAdvanced access control (NFS4 ACL)Enterprise Identity MappingMultiple authentication mechanisms

Local filesKerberosLDAP RFC 2307PKI X.509 certificate-basedPluggable Authentication Method

Auditing SubsystemAuditAudit EventsSystem integrity checker

OpenSSH encryptionOpen Secure Sockets Layer (OpenSSL)Network File System (NFS) encryptionPKCS #11 secure programming interfacesAIX Pseudo Random Number GeneratorCryptographic API Library

Network Security Encryption HardwareeBusiness Cryptographic Accelerator (SSL)4758 PCI Cryptographic CoprocessorIP Security Hardware Assist for 10/100 MbpsEthernetCertifications

Virtual private network (VPN)IP Security & Internet Key ExchangeNetwork filtering rules

Open Secure Shell (OpenSSH)KerberosTCP/IP securityNetwork servicesPublic key infrastructure (PKI)Secure remote shell commandsNetwork Information Services (NIS) and NIS+

U.S. Department of Defense C2FIPS 3 & 4 Crypto HardwareCommon Criteria CAPP/EAL 4+ICSA VPN

Other server vendors provide functionally similar capabilities for availability, recoverability, securityand other variables. eServer p5 service quality optimization is differentiated, however, both by thebreadth of functions provided by IBM, and the extent to which these are built into the overall systemhardware and software complex, rather than implemented as hardware add-ons and software overlays.


IBM TotalStorage DS SystemsLike the eServer p5, upon which it is based, the IBM TotalStorage DS8000 incorporates a number ofsignificant innovations in architectural design and technological implementation. Its strengths, likethose of the eServer p5, are particularly significant in three areas:

1. System-level performance. The DS8000 has also emerged as a performance leader inbenchmark tests, as well as in actual production conditions. In addition to the power suppliedby eServer p5 engines, innovative cache design, high-bandwidth internal data transfer and I/Omechanisms, and other new capabilities result in higher degrees of system-level throughputfor online and batch workloads than conventional storage system designs such as EMC’sSymmetrix DMX.

2. System-level efficiency. The DS8000 also delivers industry-leading virtualization and high-end system and workload management capabilities, which are again derived from mainframearchitecture. These capabilities, which include support for multiple LPARs on high-endDS8300 models, are expected to expand significantly in the future.

In addition to increasing capacity utilization for individual applications, these features offerthe potential to consolidate storage supporting diverse Siebel applications and workloads ontosingle platforms while retaining high levels of operating efficiency.

Capacity utilization is further improved by IBM SAN Volume Controller (SVC) network-based virtualization software, which is employed in IBM scenarios for the financial servicesand telecommunications company profiles. There is no comparable EMC offering.

3. Service quality optimization. RAS characteristics, including mainframe-derived features, areextensive and implemented with industry-leading microelectronics technology. OptimizedI/O-intensive performance, along with high-performance data replication tools such as IBMGlobal Mirror and Metro Mirror also minimize risks of loss or corruption of data in the eventof a system failure.

Other factors contributing to lower DS costs include more aggressive IBM pricing for replication andpoint-in-time copy tools, and the fact that host access functions incorporated in the IBM SubsystemDevice Driver are provided as part of the base DS8000 package. EMC charges separately forcomparable functions provided by its PowerPath software.

In addition, IBM has moved to four-year warranties for DS8000 hardware and systems software,including replication tools. EMC offers two-year hardware and 90-day software warranties.Maintenance and software support costs are thus significantly lower over time for the IBM platform.These differences contribute to lower overall DS8000 costs for the three-year comparisons employedin this report. Over a four- or five-year measurement period, disparities in overall costs would be agreat deal larger.

The DS6800, which is designed for smaller-scale applications, also incorporates key new technologyfeatures. High levels of microelectronics integration, in particular, result in an exceptionally smallfootprint, low environmental costs, and – because IBM is able to manufacture the system at a fractionof the cost of competitive equivalents – extremely aggressive price/performance positioning.


Other VariablesThe IBM DB2 database benefits from design efficiencies that result in higher performance thanequivalent Oracle configurations for certain applications and workloads. IBM pricing for DB2 is alsogenerally more aggressive than Oracle’s.

A broader factor contributing to lower IBM costs is the company’s implementation of autonomictechnologies across its entire product line. Autonomic computing, which has been the focus of a majordevelopment effort within IBM since the late 1990s, involves the application of artificial intelligence-like technologies to IT management and optimization tasks.

Autonomic technologies are built into eServer p5 and DS hardware and systems software, and into theDB2 environment. They result in higher system, storage and database administrator productivity,which is reflected in lower full time equivalent (FTE) staffing and personnel costs for these functions.

Service quality gains are also realized. Automated systems are more efficient, and less subject to errorthan manual practices. Risks of glitches causing outages, performance slowdowns, and data loss orcorruption are materially reduced.

DETAILED DATAApplication portfolios, along with configuration and breakdowns of three-year costs for profilecompanies are shown in figures 5 through 10.


Figure 5Retail Bank: Configuration and Cost Comparisons

IBM HP/EMC Sun/EMCCONFIGURATIONData Servers eServer p5 570*

16 x 1.65 GHz2 LPARseServer p5 570*16 x 1.65 GHz2 LPARs, 9 MPseServer p5 57012 x 1.65 GHzeServer p5 5708 x 1.65 GHz

Oracle RAC, DB2HACMP

rx8620*32 x 1.6 GHz3 nParsrx8620*28 x 1.6 GHzrx862020 x 1.6 GHzrx762012 x 1.6 GHzrx46408 x 1.6 GHzrx46406 x 1.6 GHz3 x rx46404 x 1.6 GHzrx16201 x 1.6 GHz

Oracle RAC, DB2Serviceguard

E25K44 x 1.2 GHzE25K44 x 1.2 GHz3 DSDsE690024 x 1.2 GHzE690020 x 1.2 GHz2 x E290012 x 1.2 GHz2 x V8908 x 1.2 GHzV8906 x 1.2 GHzV2402 x 1.28 GHz

Oracle RAC, DB2Sun Cluster

Application &Web Servers

5 x eServer p5 5708 x 1.65 GHz5 x eServer p5 5504 x 1.65 GHz

12 x rx46408 x 1.6 GHz5 x rx46404 x 1.6 GHz

15 x V8908 x 1.2 GHz2 x V8906 x 1.2 GHz4 x V4904 x 1.05 GHz

Storage TotalStorage DS83002 x 24 TB2 LPARs eachGlobal Mirror, FlashCopy,Subsystem Device DriverSAN Volume Controller(2 LPARs)

Symmetrix DMX20002 x 33 TB

SRDF, TimeFinder,PowerPath

Symmetrix DMX20002 x 33 TB


SYSTEMS COST ($000)Hardware 2,456 5,715 9,734Maintenance 326 1,589 2,497Systems software 1,382 2,684 2,707Facilities 206 391 499Personnel 527 702 819Total 4,897 11,081 16,256ORACLE COST ($000)Software 2,349 4,928 14,702Personnel 813 894 976DB2 COST ($000)Software 1,293 2,917 9,351Personnel 466 466 544TOTAL COST ($000)With Oracle 8,059 16,903 31,934With DB2 6,656 14,464 26,151

*Clustered configuration


Figure 6Telecommunications Company: Configuration and Cost Comparisons

IBM HP/EMC Sun/EMCCONFIGURATION

Data Servers eServer p5 570*8 x 1.65 GHz2 LPARseServer p5 570*8 x 1.65 GHz2 LPARs, 3 MPseServer p5 5504 x 1.65 GHz5 MPseServer p5 5504 x 1.65 GHz4 MPseServer p5 5102 x 1.65 GHz


2 x rx7620*16 x 1.6 GHz2 nPars eachrx46406 x 1.6 GHz4 x rx46404 x 1.6 GHzrx26202 x 1.6 GHzrx16201 x 1.6 GHz


2 x E6900*24 x 1.2 GHz2 DSDs eachV8908 x 1.2 GHz2 x V8906 x 1.2 GHzV8904 x 1.2 GHz2 x V4904 x 1.05 GHz3 x V2402 x 1.28 GHz




5 x rx46408 x 1.6 GHz11 x rx46404 x 1.6 GHz

8 x V8908 x 1.2 GHz14 x V4904 x 1.05 GHz

Storage TotalStorage DS83001 x 26 TB1 x 21 TB2 LPARs each

Global Mirror, FlashCopy,Subsystem Device DriverSAN Volume Controller(2 LPARs)

Symmetrix DMX20001 x 32 TB1 x 28 TB




SYSTEMS COST ($000)Hardware 2,018 3,990 5,727Maintenance 208 1,032 1,619Systems software 1,145 1,962 1,999Facilities 182 290 414Personnel 644 702 878Total 4,197 7,976 10,637ORACLE COST ($000)Software 1,354 2,616 8,050Personnel 569 569 651DB2 COST ($000)Software 719 1,590 5,867Personnel 311 311 389TOTAL COST ($000)With Oracle 6,120 11,161 19,338With DB2 5,227 9,877 16,893



Figure 7Life Sciences Company: Configuration and Cost Comparisons


4 x 1.65 GHz2 LPARs, 2 MPseServer p5 550*4 x 1.65 GHz2 LPARs, 4 MPseServer p5 5504 x 1.65 GHz5 MPs


rx7620*8 x 1.6 GHz2 nParsrx4640*8 x 1.6 GHz2 nPars4 x rx46404 x 1.6 GHz2 x rx26202 x 1.6 GHz


E4900*12 x 1.2 GHz2 DSDsE2900*12 x 1.2 GHzV8906 x 1.2 GHz4 x V4904 x 1.05 GHz




7 x rx46404 x 1.6 GHz5 x rx26202 x 1.6 GHz

13 x V4904 x 1.05 GHz2 x V4902 x 1.05 GHZ2 x V2402 x 1.28 GHz

Storage TotalStorage DS68001 x 12 TB1 x 9 TB

Global Mirror, FlashCopy,Subsystem Device Driver





SYSTEMS COST ($000)Hardware 457 1,226 1,906Maintenance 189 309 557Systems software 257 1,219 1,190Facilities 71 179 201Personnel 468 644 702Total 1,442 3,577 4,556ORACLE COST ($000)Software 280 1,468 4,864Personnel 325 407 407DB2 COST ($000)Software 180 763 3,307Personnel 233 311 311TOTAL COST ($000)With Oracle 2,047 5,452 9,827With DB2 1,855 4,651 8,174



Figure 8Technology Company: Configuration and Cost Comparisons


2 x 1.65 GHz2 LPARs, 2 MPseServer p5 510*2 x 1.65 GHz2 LPARs, 5 MPseServer p5 5102 x 1.65 GHz4 MPs


2 x rx4640*4 x 1.6 GHzrx46404 x 1.6 GHz2 x rx26202 x 1.6 GHzrx16201 x 1.6 GHz


2 x V890*4 x 1.2 GHz3 x V4904 x 1.05 GHzV4902 x 1.05 GHz2 x V2401 x 1.28 GHz




4 x rx46404 x 1.6 GHz5 x rx26202 x 1.6 GHz

6 x V4904 x 1.05 GHz2 x V4902 x 1.05 GHz4 x V2402 x 1.28 GHz2 x V2401 x 1.28 GHz

Storage TotalStorage DS68002 x 7 TB

Global Mirror, FlashCopy,Subsystem Device Driver

Clariion CX5001 x 9 TB1 x 7 TB

MirrorView, SnapView,Access Logix



SYSTEMS COST ($000)Hardware 303 502 718Maintenance 118 159 320Systems software 139 312 259Facilities 55 111 132Personnel 351 468 527Total 966 1,552 1,956ORACLE COST ($000)Software 105 282 1,659Personnel 325 325 325DB2 COST ($000)Software 82 182 935Personnel 233 233 233TOTAL COST ($000)With Oracle 1,396 2,159 3,940With DB2 1,281 1,967 3,124



Figure 9Manufacturing Company: Configuration and Cost Comparisons


2 x 1.65 GHz4 MPseServer p5 510*2 x 1.65 GHz

Oracle, DB2HACMP

rx4640*4 x 1.6 GHzrx2620*2 x 1.6 GHzrrx16201 x 1.6 GHz

Oracle, DB2Serviceguard

2 x V490*4 x 1.05 GHzV4902 x 1.05 GHz

Oracle, DB2Sun Cluster


4 x eServer p5 5102 x 1.65 GHz

3 x rx26202 x 1.6 GHz2 x rx16201 x 1.6 GHz

2 x V4904 x 1.05 GHz3 x V2402 x 1.28 GHz

Storage TotalStorage DS44001 x 6 TB1 x 4 TB

Remote Mirror, FlashCopy





SYSTEMS COST ($000)Hardware 172 223 286Maintenance 0 61 105Systems software 71 233 195Facilities 40 55 63Personnel 234 234 234Total 517 806 883ORACLE COST ($000)Software 22 110 912Personnel 163 163 163DB2 COST ($000)Software 18 49 532Personnel 78 78 78TOTAL COST ($000)With Oracle 702 1,079 1,958With DB2 613 933 1,493



Figure 10Consumer Goods Company: Configuration and Cost Comparisons


2 x 1.65 GHz4 MPseServer p5 510*2 x 1.65 GHz3 MPs

Oracle, DB2HACMP

2 x rx2620*2 x 1.6 GHzrx26202 x 1.6 GHz

Oracle, DB2Serviceguard

V490*4 x 1.05 GHzV490*2 x 1.05 GHzV2402 x 1.28 GHz

Oracle, DB2Sun Cluster


3 x eServer p5 5102 x 1.65 GHz

3 x rx26202 x 1.6 GHz2 x rx16201 x 1.6 GHz

4 x V4902 x 1.05 GHz2 x V2402 x 1.28 GHz

Storage TotalStorage DS43002 x 4 TB

Remote Mirror, FlashCopy

Clariion CX3002 x 4 TB


Clariion CX3002 x 4 TB


SYSTEMS COST ($000)Hardware 140 166 216Maintenance 0 46 95Systems software 64 163 157Facilities 37 55 63Personnel 117 176 176Total 358 606 707ORACLE COST ($000)Software 22 33 596Personnel 163 163 163DB2 COST ($000)Software 18 27 319Personnel 78 78 78TOTAL COST ($000)With Oracle 543 802 1,466With DB2 454 711 1,104



METHODOLOGY

ConfigurationsConfigurations are based on data reported by the companies that contributed to installation profiles.Information included Siebel applications and modules, and related third-party tools employed; installedbases of servers, storage systems, and systems and database software; workload characteristicsincluding numbers of users; service quality levels; and business continuity arrangements.

Not all companies surveyed employed current technology servers or storage systems. Where this wasthe case, server configurations were updated to current technology models using vendor performancedata, industry norms, or combinations of these. Storage configurations were updated based oninstalled capacity in gigabytes or terabytes as well as performance parameters.

Server configurations were rounded to the next largest processor or cell board increment of currenttechnology, while storage systems were similarly rounded to the next largest increment of diskcapacity offered by vendors.

Configurations were developed as follows:

• Servers. Configurations were sized using platform- and application-specific values developedby the International Technology Group (ITG) for the platforms indicated for comparativesystem- and cluster-level performance; and for the effects of partitioning, virtualization, andsystem and workload management capability on capacity utilization.

• Storage. IBM TotalStorage DS8300 and DS6800, and EMC Symmetrix DMX configurationswere sized using platform- and application-specific system-level performance and efficiencyvalues developed by ITG. In IBM scenarios for the retail bank and telecommunicationscompany, allowance was also made for the effects of IBM SAN Volume Controller networkvirtualization software employed for certain applications.

Equivalent performance was assumed for IBM DS4300 and DS4400, and EMC ClariionCX300 and CX500 systems respectively; i.e. configurations are the same size.

All IBM and EMC configurations employ RAID 5 technology, 146 GB 10K RPM drives, and2 Gbps Fibre Channel interfaces. Terabyte figures are for “raw” capacity.

• Databases. Configurations were based on the appropriate version of Oracle 10g and DB2required by the size of database servers. Oracle RAC and DB2 DPF were employed for high-end clustered configurations in the profiles for the retail bank, and the telecommunications,life sciences and technology companies.

Configurations include servers, storage and – where appropriate – databases employed for ETL,enterprise information management (EIM), middleware and backup applications, as well as fordevelopment, test and other non-production functions.

CostsSystem costs for all scenarios include hardware acquisition, maintenance and systems software forservers and storage systems, along with database software. Maintenance costs are for a three-yearperiod, net of warranties. Systems and database software costs include license fees as well as updateand support subscriptions, also for three years net of warranties.


Costs for these items were projected based on discounted “street prices” for the vendors, products andconfigurations indicated. For database cost projections, either processor- or user-based pricingschemes offered by Oracle or IBM were employed. Calculations were based on the least expensiveoption for each configuration.

Personnel costs were projected based on staffing levels reported by companies that contributed toinstallation profiles. Numbers of FTEs for database administration and system and storageadministration employed for projections are indicated in figure 11.

Figure 11Scenario FTE Staffing Levels

Scenario IBM HP/EMC Sun/EMCRetail BankOracle DBAs 2.5 2.75 3.0DB2 DBAs 1.5 1.5 1.75System & Storage Administrators 2.25 3.0 3.5Telecommunications CompanyOracle DBAs 1.75 1.75 2.0DB2 DBAs 1.0 1.0 1.25System & Storage Administrators 2.75 3.0 3.75Life Sciences CompanyOracle DBAs 1.0 1.25 1.25DB2 DBAs 0.75 1.0 1.0System & Storage Administrators 2.0 2.75 3.0Technology CompanyOracle DBAs 1.0 1.0 1.0DB2 DBAs 0.75 0.75 0.75System & Storage Administrators 1.5 2.0 2.25Manufacturing CompanyOracle DBAs 0.5 0.5 0.5DB2 DBAs 0.25 0.25 0.25System & Storage Administrators 1.0 1.0 1.0Consumer Goods CompanyOracle DBAs 0.5 0.5 0.5DB2 DBAs 0.25 0.25 0.25System & Storage Administrators 0.5 0.75 0.75

Personnel costs were calculated using annual salary assumptions of $87,015 and $83,163 for Oracleand DB2 DBAs respectively, and $62,637 system and storage administrators. Salaries are increasedby 24.6 percent to allow for benefits, bonuses, training/education and related items. Theseassumptions reflect prevailing levels in large U.S. companies.

Facilities costs were projected using a loaded assumption of $250 per square foot per year includingreal estate, power and cooling costs. Calculations allow for space occupied by IT hardware as well asservice clearances, site infrastructure support equipment, aisles and other areas typically found withindata centers. Practices and costs may vary in individual installations.

All vendors whose products are employed in calculations discount widely on a case-by-case basis,and actual prices paid for hardware, software and services may vary. This is also the case forpersonnel and facilities costs. Costs projected in this report may thus not correspond to thoseexperienced by any individual organization.

International Technology Group4546 El Camino Real, Suite 230

Los Altos, California 94022-1069Telephone: (650) 949-8410Facsimile: (650) 949-8415Email: [email protected]

ITG

ABOUT THE INTERNATIONAL TECHNOLOGY GROUP

ITG sharpens your awareness of what’s happening and your competitive edge. . . this could affect your future growth and profit prospects

The International Technology Group (ITG), established in 1983, is an independent research andmanagement consulting firm specializing in information technology (IT) investment strategy, cost/benefit metrics, infrastructure studies, deployment tactics, business alignment and financial analysis.

ITG was an early innovator and pioneer in developing total cost of ownership (TCO) and return oninvestment (ROI) processes and methodologies. In 2004, the firm received a Decade of EducationAward from the Information Technology Financial Management Association (ITFMA), the leadingprofessional association dedicated to education and advancement of financial management practicesin end-user IT organizations.

The firm has undertaken more than 100 major consulting projects, released approximately 160management reports and white papers, and delivered nearly 1,800 briefs and presentations toindividual clients, user groups, industry conferences and seminars throughout the world.

Client services are designed to provide factual data and reliable documentation to assist in thedecision-making process. Information provided establishes the basis for developing tactical andstrategic plans. Important developments are analyzed and practical guidance is offered on the mosteffective ways to respond to changes that may impact or shape complex IT deployment agendas.

A broad range of services is offered, furnishing clients with the information necessary to complementtheir internal capabilities and resources. Customized client programs involve various combinations ofthe following deliverables:

Status Reports In-depth studies of important issues

Management Briefs Detailed analysis of significant developments

Management Briefings Periodic interactive meetings with management

Executive Presentations Scheduled strategic presentations for decision-makers

Email Communications Timely replies to informational requests

Telephone Consultation Immediate response to informational needs

Clients include a cross section of IT end users in the private and public sectors representingmultinational corporations, industrial companies, financial institutions, service organizations,educational institutions, federal and state government agencies as well as IT system suppliers,software vendors and service firms. Federal government clients have included agencies within theDepartment of Defense (e.g. DISA), Department of Transportation (e.g. FAA) and Department ofTreasury (e.g. Mint).

Documents

IBM SOLUTIONS FOR SIEBEL ENTERPRISE DEPLOYMENT