Transcript Client Value Engagement Inviting the Client to CVE

IBM Client Value Engagement (CVE)
Information Management
Presented to the DB2 User Group
Speaker:
Worldwide CVE Program Leader: Justin Racklin
7/17/2015
© 2013 IBM Corporation
Agenda
1.
DB2 Value Areas
2.
Financial Fundamentals
3.
Sample Value Benefits
4.
Client Value Engagement (CVE) Overview
5.
Request a CVE
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© 2013 IBM Corporation
Goals of Today’s Presentation
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Understand Financial Fundamentals
Understand the Financial & Value Impacts of DB2
Determine Opportunities at Your Organization to Create Value
Request a Client Value Engagement (CVE)
© 2013 IBM Corporation
High Level DB2 Value Areas
Improve
System
Performance
Reduce IT
Infrastructure
Purchases
Improve
Administrative
Productivity
Reduce
Operational
Costs
Lessen the
Chance of a
Data Breach
More Effective Use of Person Resources Through Productivity Enhancements
Reduce Cost by Reducing the Need for Outside Consulting
Reduce Storage Growth Through Compression & ILM
Better Server Utilization
Reduce Requirements to Upgrade Servers
Reduce Power & Cooling Usage
Software Licensing, Hardware Costs, Power & Cooling Needs
Faster Time-to-Market for Applications & Better Quality with Less Errors
Better and More Accurate Reporting
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© 2013 IBM Corporation
DB2 Advanced Enterprise Edition (AESE):
DB2 AESE provides a comprehensive database solution. It is the ideal multi-workload database solution that offers
data warehousing, transactional and analytics capabilities in one package. It provides storage optimization, highly
reliable system availability, workload management & performance to help reduce overall database costs.
DB2 AESE Reduces Cost & Improves Profitability
Improve High
Availability &
Disaster Recovery:
Availability and data
loss prevention is
dramatically improved
with AESE. DB2
disaster recovery
HADR feature provides
for both partial and
complete data center
failures and pureScale
feature offers
clustering, automatic
load balancing across
all active members of
the cluster.
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Boost Performance
& System Utilization
DB2 AESE
performance
optimization
capabilities gives
administrators the
insight and ability to
optimize workload
execution. Features
such as Blu
Acceleration & Mixed
Workload
Management will help
control the growth of
hardware capital
expenditures &
software licensing
Improve Data
Management with
Automation:
Reduce App.
Development Timeto-Market:
Improved Analytics
& Data
Warehousing:
The cost of managing
data by automating
administration,
increasing storage
efficiency and
improving performance
with DBe AESE. By
automating tasks, DB2
is able to perform many
management tasks
itself, freeing up DBAs
to focus on new
projects
DB2 AESE eases the
cost of development
and reduced the timeto-complete projects
with data modeling
tools such as Data
Studio & Data Architect
and NoSQL Support.
Faster time to market
can increase business
results and improve
revenue
DB2 AESE analyzes
data and explores
information from
different perspectives
for a more extensive
view of your business.
Through its OLAP
Cubing Services,
Data Mining
Algorithms &
Warehouse Modeling
Utilities improved
business results &
increase revenue is
achievable
© 2013 IBM Corporation
What Do You Need To Justify
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BLU  DB2 AESE + Server HW
Compression  DB2 AESE
High Availability – pureScale  DB2 AESE + Server HW
High Availability – HADR  Server HW
Optim Query Workload Tuner  DB2 AESE or OQWT
Optim Performance Manager  DB2 AESE or OPM
Optim Configuration Manager  DB2 AESE or OCM
DB2 Recovery Expert  RE License
PureData  PureData HW
– For Transactions
– For Operational Analytics
– For Analytics
Plus Implementation and Testing Time
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Financial Fundamentals
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© 2013 IBM Corporation
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Key Strategy: Focus On Measureable
Its all about the metrics
If you cannot measure it, you
cannot manage it
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© 2013 IBM Corporation
Financial Fundamentals
 Capital Expenditures: Money spent to purchase physical items such as
servers, storages, machinery
 Operational Expenditures: Money spent on the functions of including
utilities, depreciation, taxes and personnel costs, R&D
 Hard Dollar: Measurable dollars that directly affect a clients bottom line
including revenue, reduce cost of sales, reduced expenses, time-to-market
 Soft Dollar: Areas that are more difficult to quantify and are subjective.
Productivity & security risk reduction are considered soft dollar benefits
 Productivity: A benefit that shows the value of automation. Software
automates many activities that a client currently conduct manually. This
benefit, in many instances, be one of your largest benefits.
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© 2013 IBM Corporation
Types of Financial Analysis
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Return-On-Investment (ROI)
Total Cost of Ownership (TCO)
Use this to justify a project
and investment in a solution
The project is already
confirmed. Key decision ss
to determine which solution
is least costly & expensive
vs.
How to Calculate:
How to Calculate:
Total Net Solution Benefits
÷
Investment
Total Solution Costs Including License,
Support, hardware Implementation,
On-going maintenance
© 2013 IBM Corporation
TCO Comparison: Comparing 2 Options
IBM Recommended Solution
IBM License + Implementation: $2,070,000
– Year 1 License + Maintenance: $1 Million
– Years 2-5 Maintenance: $200,000 per Year
– Labor - Cost to Retire 20 Applications:
$270,000
Initial Build: $1,485,000
– High Complexity: 41 Person weeks/App, 5
Applications
– Med Complexity: 25 Person weeks/App, 10
Applications
– Low Complexity: 8 Person Weeks/App, 5
Applications
Steady-State: $375,000
– .5 FTE for Optim Administrator
– 5 Year Cost
– 20 Application in Scope
Steady-State: $1,500,000
– .10 FTE per Application to Maintain
– 20 Applications In Scope
– 5 Year Cost
Implement/Build Updates: $111,000
– New functionality
– Fixes, etc
– Updates
Build/Implement Yearly Updates: $900,000
– New functionality
– Bug fixes
– Updates
Disk Infrastructure: $7,310
– With compression rate of 75%
– 225 GB (After compression)
– Capex: $25 per GB & Opex: $1.50 per
Disk Infrastructure: $36,562
– 1,125 GB (No compression)
– Combined Capital & Operating Expenditure
– Capex: $25 per GB & Opex: $1.50 per GB
5-Year TCO: $2,563,310
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Build Custom Solution
5-Year TCO: $3,921,562
© 2013 IBM Corporation
Financial Fundamentals: Putting It All Together
Client Goal
IT Cost
Reductions
Key Business Requirement
Improve IT
Resource
Utilization
Improve IT Staff
Productivity
Benefits
Improve Asset
Utilization
ROI
Operational
Efficiency
Typical Pains
 Applications load fluctuates, need to size for peaks
 Budget for capital expense is staying flat, but data
growth is increasing
 Unable to refresh test data, takes up to a week to get
refresh done
 IT staff consumed with tedious manual processes
 Data growth rate is increasing every year
 Duplicate applications due to acquisitions and mergers
Improve IT System
Availability
 Report batch processing is impacting the SLA
 Performance issues cause users to create manual
workarounds to meet deadlines
Improve Business
Controls
 Security policies are not consistently applied
 Data retention policies are not consistently
implemented (or don’t exist)
Reduce Business
Risk
 Shortened development cycle, more problems found
late in the application development cycle
 Application outages are impacting our business users
Hardware
Licenses
Costs
Implementation
Services
Maintenance
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© 2013 IBM Corporation
Financial Results From Client
Engagements
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© 2013 IBM Corporation
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The Value of Compression 3 Yr Savings $1.359 M
DB2 AESE optimizes storage using Adaptive Row Compression for row, table & page level
dictionaries that provides impressive compression ratios. Blu Acceleration provides extreme
compression through sophisticated encoding algorithms and column organized table data.
Storage: Data Managed Comparison
DB2 AESE
Storage Cumulative Cost Comparison
Current
Current
DB2 AESE
45,626
$1,593,878
39,675
34,500
30,000
$986,850
$459,000
4,725
6,019
7,507
$67,950
Start
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Year 1
Year 2
Year 3
Year 1
$153,113
Year 2
$258,069
Year 3
© 2013 IBM Corporation
DB2 Blu Reduces HW & SW Costs: 3 Year $.446 M
The amt of HW required is reduced with Blu Acceleration with its SIMD processing that multiplies
core performance, parallelism & optimal memory caching. AESE also provides MPP, Partitioning,
control over workloads as well performance management tools to tune your database
Cumulative Core Cost
Cumulative Core Growth
Current Process
Current Process
DB2 AESE with Blu
DB2 AESE with Blu
$892,884
30
20
$548,942
$446,442
15
10
10
$251,314
5
Year 1
15
$274,471
$125,657
Year 2
Year 3
Year 1
Year 2
Year 3
© 2013 IBM Corporation
Administrator Productivity: $.926 M
DB2 AESE provides autonomics which lowers the cost of managing data by automating
administration, storage efficiency & improving performance. By automating tasks such as
memory allocation, storage mgt & business policy maintenance, DBAs time is freed up
Cumulative IT Administrator Productivity
Current Process
Cumulative IT Administrator Cost
DB2 AESE
Current Process
DB2 AESE
$1,872,000
12.00
$1,248,000
8.00
$945,360
6.06
$624,000
4.04
4.00
$315,120
2.02
Year 1
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$630,240
Year 2
Year 3
Year 1
Year 2
Year 3
© 2013 IBM Corporation
Cost of Downtime: 3 Year $2.181 Million
DB2 HADR provides HA for site failures which prevents data loss by replicating data changes
to the standby servers. DB2 pureScale provides continuous availability through the use of
clustering. The system recovers nearly instantaneously from node failures.
Hours of Unplanned Downtime / Year
Current Process
Cumulative Unplanned Downtime Costs
DB2 AESE
Current Process
DB2 AESE
$3,271,860
6.00
$2,181,240
2.00
$1,090,620
$1,090,620
$727,080
$363,540
Hours / Year
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Year 1
Year 2
Year 3
© 2013 IBM Corporation
AESE Solution Blueprint
DB2 AESE Analytics, Data Warehouse & Marts
Category
System Performance & Utilization
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Top AESE Features
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Blu Acceleration
Data Partitioning
Actionable Compression
Continuous Ingest
Control Over Workloads
Massive Parallel Processing (MPP)
***Aggregates, Table Partitioning, MultiTemp Storage, Query Parallelism
***Also available DB2 ESE version
DB2 AESE’s Impact
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Reduces Hardware Cores Required
Reducing Hardware Cores Reduces SW Licenses
Reduces Data Center Power & Cooling
Improves End User Productivity
Improves Administrator Productivity
Improved SLAs & Reduce Fines
Greater Business Insights
 Cubing Services for OLAP
 Data Mining Algorithms
 Text Analytics
 Improve Analyst Productivity
 Increase Revenue
 Reduce Risk
BI / Analytics Development
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 Improves Development Time-to-Market
 Increases Developer Productivity
 Increases Revenue from Improved Time-toMarket
Disaster Recovery
 ***High Availability Disaster Recovery
(HADR)
 Improves SLAs
 Reduces Time & Cost of an Outage
 Reduces Probability of Any Lost Data
System Manageability
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 Improves Administrator Productivity
Disk Storage Requirements
 Blu Acceleration
 Row Compression
 Adaptive Row Compression
Blu Acceleration (load & go)
Time Travel Query
Infosphere Data Architect
***Infosphere Data Studio
Performance Manager
Query Workload Tuner
Configuration Manager
Workload Manager
pureQuery Runtime
 Reduce Storage Capital Expenditures
 Reduce Storage Operational Expenditures
© 2013 IBM Corporation
AESE Solution Blueprint
DB2 AESE OLTP & Transactional Systems
Category
Top AESE Features
DB2 AESE’s Impact
System Performance & Utilization
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Actionable Compression
Mixed Workload Management
Performance Tuning Tools
Fine Grained Control Over Workloads
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General Application Development
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Infosphere Data Architect
***Infosphere Data Studio
NoSQL Support
Time Travel Query
SQL Compatibility (Legacy Integration)
 Improves Development Time-to-Market
 Increases Developer Productivity
 Increases Revenue from Improved Time-toMarket
Disaster Recovery
 High Availability Disaster Recovery (HADR)
 pureScale (clustering)
 Improve SLAs
 Reduces Time & Cost of an Outage
 Reduces Probability of Any Lost Data
System Manageability
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 Improves Administrator Productivity
Disk Storage Requirements
 Row Compression
 Adaptive Row Compression
 XML Compression
Performance Manager
Query Workload Tuner
Configuration Manager
Workload Manager
pureQuery Runtime
Reduce Hardware Cores Required
Reducing Hardware Cores Reduced SW Licenses
Reduces Data Center Power & Cooling
Improves End User Productivity
Improves Administrator Productivity
Improved SLAs
Reduces Fines from Missed SLAs
 Reduce Storage Capital Expenditures
 Reduce Storage Operational Expenditures
***Also available DB2 ESE version
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© 2013 IBM Corporation
IBM PureData™ for Transactions Executive Summary
Recommended Solution
Priorities & Challenges
 Priority #1: Fully Deploy Application for US
IBM PureData™ System for Transactions is Optimized for
Performance, Scalability, High Availability and Automated
Management
 Priority #2: Reduce down time & latency while addressing
quality of service issues
 Priority #3: Reduce infrastructure complexity & modernize
architecture
1.
Provides continuous availability for OLTP & Data Availability
2.
Meets known 10 year capacity requirements and can be easily
expanded for future business growth
 Challenge #1: Ability to fully leverage application, 1% deployed
in US today, could only get to 50% with current architecture
3.
Meets application security requirements
4.
Reduced Total Cost of Infrastructure – self contained, simple
setup, administration, and maintenance effort
 Challenge #2: High Availability - not meeting SLAs
 Challenge #3: Infrastructure complexity = higher support costs
Business Results
Total Cost of Ownership
$20,000,000
Total Five Year Savings
$15,000,000
1. $13 M savings compared to Oracle Exadata Scenario
$10,000,000
2. $5.3 M savings compared to Oracle / P760 Scenario
3. $2.7 M labor and administration savings
$5,000,000
$0
Year 1
Year 2
IBM PureData
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Year 3
Oracle Exadata
Year 4
Year 5
Oracle P760
© 2013 IBM Corporation
DB2 AESE Benefit Summary
CVE Benefit Summary
Key Business & Technical Requirements
Business and Technical Priorities
Simplification
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Minimize data movement (mixed workloads)
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Consolidate Adhoc & Standard Reporting environments
Make data accessible and information actionable
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Empower End Users through increased performance
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Reduce Batch Processing Window to process latent demand
5 year Cumulative Benefits
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Total Benefit
Storage Savings
Admin Cost Savings
End User Cost Savings
Developer Cost Savings
$5,247,684
$2,191,076
$409,344
$842,566
$1,705,600
Manage fundamentals (efficiency, productivity, expenses)
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Effectively Manage Data Growth & Storage Costs
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Efficiently identify, diagnose and resolve performance issues
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Improve productivity of Admins, Developers, End Users
© 2013 IBM Corporation
5-Year AESE Benefits $2.3 Mil
The following benefits were determined through the CVE process based on on-site interviews, and
questionnaires. All of the benefits can be achieved through proper implementation as determined by the
solution blueprint within this CVE final deliverable
Performance Management
$2.06 Mil
End User Productivity
$0.68
Unplanned Downtime
$1.00
Process Upgrade
$0.07
DB Management Resources
$0.31
Storage Optimization
$0.24 Mil
Storage Capital
$0.02
Unplanned Downtime
$0.00
Backup Media
$0.20
DB Management Resources
$0.02
Software Maintenance
$0.02 Mil
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5-Year Cumulative Benefits
© 2013 IBM Corporation
Oracle Competitive
 Where is the financial value?
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–
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Reduce cost of licensing
Reduce cost of hardware requirements
Reduce IT manageability
Improved Performance
Sample of PureData for Transactions vs. Exadata
3 Year Cost Comparison
Exadata X4-2
$16,890,971
PureData for Transactions
$5,084,438
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© 2013 IBM Corporation
KPIs To Focus On For Your Business
 How Can DB2 Affect the Revenue & Profitability of Your Company?
– Improve New Customer Acquisitions: What’s the current rate?
– Improve the Number of Cross and Up-Sell Opps: How many customers?
– Reduce Customer Churn (Lost Customers): How many do you lose?
New Customer Acquisition & Conversion
Current State
Cumulative Increased Revenue
IBM Big Data
IBM Big Data
$303,750
5,175
$202,500
4,500
Total Customers Added / Yr
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$101,250
Year 1
Year 2
Year 3
© 2013 IBM Corporation
Client Value Engagement (CVE)
Program Overview
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© 2013 IBM Corporation
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CVE Program Client Overall Mission:
What We Provide…
1. Provide a Framework for Clients & IBMers to Work Effectively Together
2. Supply Clients Economic & Financial Impact Summaries
3. Help Client’s Communicate IT Benefits to Non-Technical Audiences
4. Build Better Relationships with Our Clients With High Quality Resources
5. Create a Professional Deliverables That Summarizes All Keep Aspects
of Solution to An Organization
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© 2013 IBM Corporation
Value Methodology Overview
Define & Identify
technical & business
Problems / Challenges
Identify Technical &
Business Challenges
Identify Future Process
& Costs with the
Recommended
Solution (To-Be)
Determine
Current (AsIs) Costs
Identify Current
Process and Costs
(As-Is)
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Determine
Future (ToBe) Costs
Technical
Solution
Blueprint
CVE
Engagement
Summary &
Final Analysis
CVE
Final Results
Measure the
Difference Between
As-Is & To-Be
© 2013 IBM Corporation
CVE: Basic Process Plan
CVE is lightweight and flexible process designed to provide clients an easy to follow
programmatic project plan. CVE project plans are adjusted per client requirements
Client Introduction
Organize
Introduce the CVE to the client Executive Sponsor
Charter: Document Objectives, Milestones, Schedules
Interview & Discovery
Interview client to collect data for analysis
Confirm & Validate Results Confirm assumptions & results before final presentation
Deliver Final Results
Present Findings to Executive Sponsor
Economic Results
Financial Benefits Summary
Solution Blueprint
Architecture, Process Documentation
Average client resource time is 2-4 hours
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© 2013 IBM Corporation
CVE Offerings: By Solution & Use Case
Solution Focus Areas
 Core Database
– DB2 AESE
– DB2 Blu
 Engineered Systems
– PureData for Transactions (PDT)
– PureData fo Analytics (PDA)
 System Z
– DB2 Analytics Accelerator (IDAA)
Use Case Level CVE
 Data Warehouse Modernization
 360 Degree View of Customer
 Security & Fraud Intelligence
 Real-Time Decisions
 Data Exploration
 Information Governance
–
–
–
–
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Infosphere Guardium
Infosphere Optim
Infosphere MDM
Information Server (Integration)
© 2013 IBM Corporation
Strategy for Building Value
Client
Value
Engagement
1. Focus On The Needs of the Business & End Users
2. The Four C’s: Collaborate, Create, Calculate & Communicate
3. Meet all key people, build consensus, gain trust, be consultative
Top 10 “Must Answer” DB2 Value Questions
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
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Who are your client’s line of business (LOB) key stakeholders?
How can you monetize the data?
How fast are decisions made today & how fast do they need them to be?
What are your KPIs? How will improving them make a difference?
What new data sources can add the most value?
What are your key outcomes & where do they need improvement?
How does your client compete against their competitors?
Where are resources being wasting? (Name their top 3)
What are the consequences of not having a data management strategy?
What are the top business & technical risks?
© 2013 IBM Corporation
Engage With IBM with a CVE
•Contact Your Local Sales Leader for Your Account
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