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.,

Oracle – Benefits of Outsourcing the Management of Oracle Software

Introduction: In today’s fast changing, shirking scale of I.T investments , growing user needs, pressuring IT changes to be implemented as what we call “On-the fly” making irreversible changes on the way business needs are translated into IT Focus.Outsourcing of management of Oracle – which has established as a brand leader for its Database, application servers, developer toolkits, financial apps ,collaboration and messaging solutions which by far standout as fine products of I.T Excellence have been experiencing tremendous growth for one of the most important factors : “How to reduce costs?”

Latin America specially Venezuela has been one of the pioneering countries in the evolution of Information technology based apps and there is only one mantra “Change is constant.” It can be called appropriately as the “El-Dorado” or the valley of gold where IT solutions have always been implemented with fervor and great enthusiasm to define and help businesses grow fast and profitable.

Due to the various factors effecting Venezuela and Latam in general in all vertical and horizontal sectors IT managers have been very eager to help their core businesses prosper under conditions of devaluation of local currency, political instability, decreasing profit margins, shirking human capital, inability to raise capital goods ( like servers, dedicated links, software and apps) with low cost in-house expertise to raise the levels of automation to help increase productivity with alternate technology options and business cooperation with Asp’s (application service providers) and ISP (Internet service providers) positioning the whole enterprise via web services based technologies.

Out of the box approach for many providers has changed to integrated solutions and businesses have better SLAs (Service Level Agreements) , better administration and OOB (Out of Band) technologies have proved their reliability. Oracle has been a leader in the cultivation of this trend by appropriately supporting this ongoing trend very early on.

This white paper presents a view of the real situation which we live in, in the zone Americas and how messaging as an application can be outsourced to SP’s (service providers).

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.

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.

Outsourcing

Introduction to Outsourcing:

Outsourcing of I.T Applications, implies that corporations, companies who assign their I.T responsibilities to 3rd Party(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 methodology 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?

An ASP (application service provider) is one stop for all integration and management of Apps which are required by any business so that the core which is the human capital can focus on running their respective businesses and not involve in the expensive part of IT infrastructure and its management. The model below is a illustration of as how an ASP model is structured.

The interesting part of this is that the client focuses only on the requirements of his business leaving the ASP to implement appropriately.

ISVSoftware

End-User/

ClientsNetwork Services

Data Center FacilityApps ManagementTechnical Support

Change Management

Customization

ASP

Apps On Rent

Apps InstallationTelecom - Connectivity

Carrier / ISP

The ASP Value Chain:

Let’s now look at the ASP value chain which is generated as a result of total IT outsourcing management in the figure below:

Source: Lucent NPS 2003

Service Service IntegrationIntegration

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

SolutionsSolutionsProvisioningProvisioning

Customer Customer InterfaceInterface

CustomerCustomer

ASPASPPartner Management

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

Importance of Competencies when Selecting an ASP:

When opting between ASP’s or doing it himself the client must look very carefully at the statistical figure so as to calculate his TCO.

Source: Lucent 2003

Trends ASP

Below are the trends as observed worldwide in the forthcoming days.

Source: Lucent 2003

Biggest Web Service Challenges For I.T.ManagementSource : Infosys

Illustrated below are the challenges faced by Information Technology managers opting to make their business web enabled.

Advantages for outsourcing with an ASP: Focus – Oracle.

The advantages of outsourcing with an ASP are very clearly seen below, and it makes it too obvious what businesses have been missing for a very long time. The best part of this is that geographic locations no longer hold a considerable impact on businesses IT infrastructure. It is interesting to note that Oracle is in the process of seriously implementing Grid technology to reduce costs further.

Advantages: Focus – Oracle.Traditional

Customer

Customer

Customer

Customer

Customer

ASP

AuthorizedPartner

AuthorizedHosting TechnologyPartner

ISV / In-houseApplication

Data Center

Implementation

Product Support

OSS

ISV / In-house

Application / H.W / S.W-Administration

Telecom - Connectivity

Oracle Management – ASP.

One of the most effective methods to manage your Oracle database and applications is via web with OEM (Oracle Enterprise Manager) whether in-house or managed by an ASP.

Features of OEM.

OEM 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.

Lets now look at the various migration issues which can place “ Time to Market” way beyond the expected.

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.

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 configuration. Clustering and Load Balancing O.S – Security, logfiles, tuning parameters. Hardware Performance ( CPU(s) behaviour, hard disk I/O, Memory

refresh rates, NIC performance, Uplinking bandwidth)

How is the existing infrastructure affected?

Business infrastructure is affected in 99.9% as noted with many of our existing clients as the following:

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 VPN’s). Better and firm control over Core Business. Required Internal Service levels are insight.• “More with less is achieved in the STP (shortest time path)”.

The above to happen will require a mutual understanding and a effort to change the way IT operates.

So….Why Linux?

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

I remember when once when every IT professional said “ Linux is free so what !”

Look today what has happened, every one says – “ This is the best thing to happen in a long time!”

Every IT professional in his respective area of activity has to look to reduce operational costs, improve reliability and provide extra functionality to his or her users and provide Unbreakable security, Linux through its various distributions has been just delivering as required and is scaling fast.

Building the Case for Linux.

Below are a few issues which can be used to build the case for a shift 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.

TCO (Total Cost of Ownership)

This is an important factor to judge what to choose as a business owner or an IT manager or an IT professional to strongly believe and prove Linux is here to help businesses reduce costs.

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 manufacturers. 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 consoleHeight 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 CPUsOracle9i Database Server Enterprise Edition

$136,000 $256,000

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

Hosting - ASP 4 CPUs 8 CPUsOracle9i 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 CPUs

In 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.

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 on DELL whitepaper ESG.

Why is Messaging so Important?

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

Integration within an Enterprise To implement cross-departmental business processes

Finance

Sales

Marketing

InternetLAN

Intranet

Operations

B2B - Business to Business

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

Manufacturer

Customer

Supplier

InternetLANWAN

B2C - Business to Customers

To improve customer responsiveness

Corporate data

Back OfficeFront Desk

Accounting

Manufacturing

Human Resources

Customer Support

Sales ForceAutomation

Marketing

InternetWebServer

Intranet

Introducing the most complete Messaging Suite

Web based: 30,000 per database instance.

Web Based Email Client

Centralized Database with all features of Collaboration and messaging:

Linux Powered Collaboration & Messaging suite Architecture:

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 Calendar.

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

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

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

in the Data Center

Wireless

Analog

Web or Client

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

Documents Files E-mails Appointments Conferences Web pages Voicemails

Case Study in ASP Model

Description Cost

Front 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

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

Daycohost is a web hosting solution provider interested in offering you innovative Internet solutions through an entire infrastructure, leading technology and expertise to support the growth and development of your enterprise in the Internet.

Daycohost key aspects to support your business needs are:

1. Infrastructure totally equipped and built using international standards and leading technology.

2. Direct connectivity to the Internet backbone through multiple suppliers, ensuring high-quality and reliable connection.

3. Logical and physical security. 4. An expert and professional team. 5. Alliances with the major technologies and Internet services

providers.

Daycohost installed the most important Data Center of Venezuela, created to host advanced Internet services and business applications and supported by Verio, an American Internet services leading provider.

Verio, the American subsidiary of NTT, the largest telecommunications company in Japan, operates from its data centers located in the U.S. and connects its services around the world through its global communication network.

To be the first Venezuelan provider of Internet services covering national and international markets and offering innovative solutions using high technology, and qualified personnel.

To provide the necessary infrastructure for the hosting of web pages, dedicated servers, co-located centers and e-commerce solutions, using state-of-the-art technology.

Some of the Internet services we offer you are:

Web Site Hosting. Dedicated Servers. Virtual Private Servers (VPS). E-commerce solutions through the use of safe transactions using the

best technology. Co-located server’s solutions with redundant connectivity. Fast and easy solutions to have presence in the World Wide Web. Any other customized Internet service designed to fulfill your needs.

Therefore, we are committed to offering you the best service and price options in the market. “Never doubt that a small group of committed people can change the world.” – Margaret Mead.Presented By: Anirudha Sharma Bhamidipati Systems ArchitectDayco Telecom C.A., Caracas, Venezuela.Website: http://www.daycohost.comE-mail: as@daycohost.comDirect: +58-212-999-9080Fax: +58-212-999-9011Mobile: +58-416-7272611