VALUE PROPOSITION FOR IBM eserver p5

Transcription

1 September 2004 MANAGEMENT BRIEF VALUE PROPOSITION FOR IBM eserver p5 Cost/Benefit Case for POWER5 Micro-Partitioning ITG International Technology Group 4546 El Camino Real, Suite 230 Los Altos, California Telephone: (650) Facsimile: (650)

2 Copyright 2004 by the International Technology Group. All rights reserved. Material, in whole or part, contained in this document may not be reproduced or distributed by any means or in any form, including original, without the prior written permission of the International Technology Group (ITG). Information has been obtained from sources assumed to be reliable and reflects conclusions at the time. This document was developed with International Business Machines Corporation (IBM) funding. Although the document may utilize publicly available material from various vendors, including IBM, it does not necessarily reflect the positions of such vendors on the issues addressed in this document. Material contained and conclusions presented in this document are subject to change without notice. All warranties as to the accuracy, completeness or adequacy of such material are disclaimed. There shall be no liability for errors, omissions or inadequacies in the material contained in this document or for interpretations thereof. Trademarks included in this document are the property of their respective owners.

3 TABLE OF CONTENTS EXECUTIVE SUMMARY 1 SUMMARY OF RESULTS 2 Basis of Calculations 2 Cost Picture 5 ERP Installations 5 WebSphere Installations 6 Micro-Partitioning Implications 7 Cost Impact 7 Real Time Enablement 8 DETAILED DATA 11 SAP Installations 11 Manufacturing Company 11 Energy Company 15 Transportation Company 18 PeopleSoft Installations 22 Financial Services Company 22 Business Services Company 26 Technology Company 29 Oracle Installations 32 Process Company 32 Retail Company 36 Healthcare Company 40 WebSphere Installations 42 Insurance Company 42 Telecommunications Company 46 Distribution Company 48 METHODOLOGY 50 Profiles 50 Configuration Sizing 50 Cost Calculations 51 Server Costs 51 Database Costs 51 List of Figures 1. ERP Installation Profiles Summary 3 2. Application Abbreviations 3 3. ERP Installation Cost Variations: eserver p5 and Integrity Configurations 5 4. ERP Installation Cost Variations: eserver p5 and Sun Fire Configurations 6 5. WebSphere Installation Cost Variations 6 6. Examples of ERP Workload Breakdowns 7 7. SAP Manufacturing Company: Configuration and Cost Comparisons SAP Manufacturing Company: eserver p5 Configuration SAP Manufacturing Company: Integrity Configuration SAP Manufacturing Company: Sun Fire Configuration SAP Energy Company: Configuration and Cost Comparisons SAP Energy Company: eserver p5 Configuration SAP Energy Company: Integrity Configuration 16 International Technology Group i

4 14. SAP Energy Company: Sun Fire Configuration SAP Transportation Company: Configuration and Cost Comparisons SAP Transportation Company: eserver p5 Configuration SAP Transportation Company: Integrity Configuration SAP Transportation Company: Sun Fire Configuration PeopleSoft Financial Services Company: Configuration and Cost Comparisons PeopleSoft Financial Services Company: eserver p5 Configuration PeopleSoft Financial Services Company: Integrity Configuration PeopleSoft Financial Services Company: Sun Fire Configuration PeopleSoft Business Services Company: Configuration and Cost Comparisons PeopleSoft Business Services Company: eserver p5 Configuration PeopleSoft Business Services Company: Integrity Configuration PeopleSoft Business Services Company: Sun Fire Configuration PeopleSoft Technology Company: Configuration and Cost Comparisons PeopleSoft Technology Company: eserver p5 Configuration PeopleSoft Technology Company: Integrity Configuration PeopleSoft Technology Company: Sun Fire Configuration Oracle Process Company: Configuration and Cost Comparisons Oracle Process Company: eserver p5 Configuration Oracle Process Company: Integrity Configuration Oracle Process Company: Sun Configuration Oracle Retail Company: Configuration and Cost Comparisons Oracle Retail Company: eserver p5 Configuration Oracle Retail Company: Integrity Configuration Oracle Retail Company: Sun Fire Configuration Oracle Healthcare Company: Configuration and Cost Comparisons Oracle Healthcare Company: eserver p5 Configuration Oracle Healthcare Company: Integrity Configuration Oracle Healthcare Company: Sun Fire Configuration WebSphere Insurance Company: Configuration and Cost Comparisons WebSphere Insurance Company: eserver p5 Configuration WebSphere Insurance Company: Integrity Configuration WebSphere Insurance Company: Sun Fire Configuration WebSphere Telecommunications Company: Configuration and Cost Comparisons WebSphere Telecommunications Company: eserver p5 Configuration WebSphere Telecommunications Company: Integrity Configuration WebSphere Telecommunications Company: Sun Fire Configuration WebSphere Distribution Company: Configuration and Cost Comparisons WebSphere Distribution Company: eserver p5 Configuration WebSphere Distribution Company: Integrity Configuration WebSphere Distribution Company: Sun Fire Configuration 49 International Technology Group ii

5 EXECUTIVE SUMMARY A fundamental shift is occurring. New processors, and techniques such as simultaneous multithreading (SMT) and virtualization are impacting performance and capacity utilization. Advances in multiprocessor architecture, system management and provisioning define new opportunities to improve IT efficiency. Each of these technologies is significant. But their combined impact is cumulative. The potential emerges to achieve non-incremental gains in IT cost-effectiveness across the entire enterprise IT infrastructure. This document deals with one aspect of this shift: the potential of new technologies to reduce the costs of servers supporting business-critical applications. Specifically, it compares IT costs for the use of latest-generation IBM, Hewlett-Packard (HP) and Sun Microsystems (Sun) UNIX servers to support enterprise resource planning (ERP) and customized systems in large companies. Cost comparisons are projected for specific installation profiles of nine companies employing SAP, PeopleSoft and Oracle ERP systems, and of three companies employing customized WebSpherebased systems. Results for these installations may be summarized as follows: 1. Server costs. Three-year hardware, systems software, maintenance and software support costs for IBM eserver p5 servers are projected to be significantly lower than for equivalent HP mx2-based and Sun UltraSPARC IV-based platforms. In SAP installations, eserver p5 server costs are projected to average 58.3 percent less than equivalent HP and 75.4 percent less than equivalent Sun platforms. In PeopleSoft installations, the comparable figures are 54.4 percent and 70.7 percent less, and in Oracle ERP installations, 50.8 percent and 57.9 percent less than for HP and Sun respectively. In installations employing customized systems built around WebSphere middleware and applications, three-year eserver p5 server costs are projected to average 58.5 percent less than equivalent HP, and 72.2 percent less than equivalent Sun configurations. 2. Database costs. Three-year license, update and support costs for database software also show significant variations. Costs of Oracle on eserver p5 servers are projected to average 49.0 percent less than on HP and Sun servers for SAP systems; 51.3 percent less for PeopleSoft systems; 37.2 percent less for Oracle systems; and 38.5 percent less for WebSphere-based systems. The picture is similar for IBM DB2 costs. IT costs are, however, only part of the picture. Critical synergies are emerging between new technology and the mandates for real-time business competitiveness in a wide range of industries. This is notably the case for the eserver p5 system architecture in general, and its Micro-Partitioning capabilities in particular. Opportunities will be far-reaching. Technological change creates the potential not only to realize breakthrough gains in IT cost-effectiveness, but also to realize a broader transformation of the processes through which IT delivers material business advantage. International Technology Group 1

6 SUMMARY OF RESULTS Basis of Calculations Techniques such as total cost of ownership (TCO) have become widely used in the IT world. Properly used, they may provide useful insight into IT cost structures, and into the cost implications of technology choices. The effectiveness of any cost measurement exercise, however, depends heavily on the assumptions employed, and on the accuracy of the data used as inputs. These issues received close attention in the research conducted for this report. The following approach was adopted: Composite profiles. Data on application suites, workloads, databases, server configurations, service levels, capacity utilization and other subjects was collected from 42 companies employing SAP, PeopleSoft and Oracle ERP systems, and from 13 companies employing WebSphere-based systems. Using this data, composite profiles of nine ERP and three WebSphere-based installations were constructed. A best practices approach was employed; e.g., the experience of one user with multiple SAP R/3 systems was combined with the experience of another in SAP data warehouse deployment, and a third in consolidation of SAP non-production instances. ERP installation profiles are summarized in figure 1. WebSphere-based profiles are an insurance company with approximately $20 billion in assets, employing customized core business systems, a data warehouse and e-commerce systems; a telecommunications company with approximately $5 billion in revenues employing a mix of CRM, operational and business intelligence systems; and an industrial distributor with approximately $2.5 billion in revenues employing WebSphere Commerce Suite. For each composite profile, server and database configurations were determined. Three-year hardware, hardware, systems software, maintenance and software support costs were then projected for these. Certain assumptions were made about configurations, performance and vendor pricing for HP, IBM, Sun and Oracle platforms employed in these calculations. These assumptions are detailed in the Methodology section of this report. Further information on profile installations, including configuration diagrams and cost breakdowns, may be found in the Detailed Data section. Additional detail on techniques used to construct profiles may be found in the Methodology section. Although profiles are based on actual user installations, they may not correspond to the applications, workloads, server configurations employed by, or the costs experienced by any individual organization. System-level performance. Hardware acquisition, maintenance and systems software costs are materially affected by configuration sizes. This is also the case for databases and other software products priced on a per processor basis. The metrics used to predict configuration sizes are, however, often inaccurate. For example, many organizations assume that comparable N-way systems deliver the same performance (i.e. that the performance of four-way servers from different vendors will be similar), or rely upon benchmarks that primarily measure CPU-level performance. International Technology Group 2

7 Figure 1 ERP Installation Profiles Summary SAP ERP Company A B C Industry Manufacturing Energy Transportation Revenues $5 billion $10 billion $2 billion Applications AP, AR, CO, GL, HR, MM, PP, PS, SD APO AM, AP, AR, CO, GL, HR, PY MM, PM, PP, PS, SD AM, AP, AR, CO, GL, PP, PS, SD BW, CRM Number of Users 5,000 3,000 1,000 PEOPLESOFT ERP Company D E F Industry Financial Services Business Services Technology Revenues $20 billion $5 billion $2 billion Applications AM, AP, AR, BD, GL, IM, PC, PJ HR, BA, PY AM, AP, AR, BI, GL, HR, BA, TL, PY EPM, EP, HRSS Number of Users 1,700 1,200 2,000 ORACLE ERP MK, SL, SP, CT Company G H I Industry Process Retail Healthcare Revenues $10 billion $20 billion $2 billion Applications AM, AP, AR, GC, GL, OM, PMF, PR, PJ CRM, DW, PLM AP, GL, HR, PY LO, ME, PC, PJ IP, IS, Portal Number of Users 2,000 1, AM, AP, AR, GL, IM HR, AB, TA, TL, PY Grants, HRSS Figure 2 Application Abbreviations AB: Advanced Benefits AM: Asset Management AP: Accounts Payable APO: Advanced Planning & Optimization AR: Accounts Receivable BA: Benefits Administration BD: Budgets BI: Billing BW: Business Information Warehouse CO: Controlling CRM: Customer Relationship Management CT: CTI Integration DW: Data Warehouse EP: eprocurement EPM: Enterprise Performance Management GC: Global Consolidation GL: General Ledger HR: Human Resources HRSS: HR Self-service IM: Inventory Management IP: iprocurement IS: istore LO: Logistics ME: Merchandise Management MK: Marketing MM: Materials Management OM: Order Management PC: Purchasing PJ: Projects PM: Plant Maintenance PLM: Product Lifecycle Management PMF: Process Manufacturing PP: Planning & Control PR: Procurement PS: Project System PY: Payroll SD: Sales & Distribution SL: Sales SP: Support TA: Training Administration TL: Time & Labor International Technology Group 3

8 In the early history of computing, central processing units effectively determined performance. But system architectures have become more sophisticated. The number of variables affecting actual performance has increased, and the effectiveness of overall architecture design and implementation has become increasingly important. This is particularly the case for the latest generation of UNIX servers. IBM s eserver p5, HP s Integrity and Sun Microsystems Sun Fire are highly complex systems. There are significant variations in design principles, technology content, and implementation and manufacturing techniques that materially affect overall performance. Configuration sizing for these platforms is thus based on system-level rather than CPU-level performance. Virtualization. The performance a system delivers does not, in itself, say anything about the efficiency with which it is used. A server that is underutilized, or poorly utilized, has a significant impact on IT cost structures because the organization is obliged to acquire, maintain and support other resources to execute workloads that it might have handled. Virtualization can thus have a significant cost impact. By enabling more flexible, dynamic allocation of system resources to meet changing application requirements, virtualization techniques can significantly increase overall capacity utilization. This is particularly the case for complex workloads such as those that characterize ERP or e-commerce environments. The eserver p5 is equipped with IBM Micro-Partitioning technology that enables the creation of virtual system images as small as 0.1 CPU. HP has a similar, albeit less granular Virtual Partition (vpar) technology. vpar capability is, however, supported only for HP PA RISCbased servers, not for the company s strategic Itanium-based Integrity platform. Sun does not offer a comparable capability, although the company has described plans for virtualization technology in its forthcoming Version 10 of the Solaris operating system. For this reason, comparisons are based on overall system environments, including business intelligence and Web-based as well as transaction-processing systems, and development, test, staging and other non-production as well as production systems. eserver p5 configurations allow for the effects of Micro-Partitioning on overall capacity requirements. Comparisons include eserver p5 models with IBM POWER5 dual-core 1.65 GHz CPUs; Integrity Superdome, rx8620, rx7620 and rx4640 models with HP mx2 processor units, which consist of two 1.1 GHz Itanium2 CPUs; and Sun Fire E2900, E4900 and E6900 models with Sun UltraSPARC IV processor units, consisting of two 1.2 GHz UltraSPARC III CPUs. Neither HP nor Sun has introduced low-end equivalents of the eserver p5-520 incorporating their latest-generation CPUs for one- and two-way configurations. Integrity 2600 models with 1.5 GHz Intel Itanium2 technology, and 280R models with the uniprocessor version of the 1.2 GHz UltraSPARC III CPU are thus employed in HP and Sun configurations respectively. Clustered configurations employ IBM High Availability Clustered Multiprocessing (HACMP), HP Serviceguard and Sun Cluster facilities. International Technology Group 4

9 Cost Picture ERP Installations Comparisons of three-year costs of eserver p5 and Integrity configurations in the composite ERP installations described in this report may be summarized as follows: Server costs. Combined three-year costs for hardware acquisition, maintenance and systems software for Integrity configurations are in all cases projected to be significantly higher than those of eserver p5 equivalents. This reflects higher eserver p5 system-level performance, the effects of Micro-Partitioning, as well as comparatively aggressive IBM pricing. Database costs. Three-year costs for database software acquisition, update subscriptions and support are calculated for Oracle 10G and DB2 Version 8 for all configurations. Oracle Real Application Clusters (RAC) solutions are employed in larger installations. Projected costs are again lower for eserver p5 than for Integrity and Sun Fire configurations, reflecting smaller numbers of CPUs in database server configurations. In certain cases, smaller eserver p5 configurations would enable use of Oracle Standard Edition rather than the more expensive Enterprise Edition, required for servers with more than four CPUs. Projected disparities in DB2 database costs are generally similar to those for Oracle. In certain cases, disparities reflect use of DB2 Workgroup Server rather than the more expensive DB2 Enterprise Server, which is positioned in the same manner as Oracle Enterprise Edition. Cost variations are summarized in figure 3. Figure 3 ERP Installation Cost Variations: eserver p5 and Integrity Configurations* eserver p5 server costs as % Integrity server costs eserver p5 Oracle costs as % Integrity Oracle costs eserver p5 DB2 costs as % Integrity DB2 costs SAP INSTALLATIONS PEOPLESOFT INSTALLATIONS ORACLE INSTALLATIONS Range Average Range Average Range Average N/A N/A * Results are specific to installations shown in Detailed Data section. See Methodology section for assumptions employed in calculations. Disparities in projected server costs between eserver p5 and Sun Fire configurations are generally larger than for eserver p5 and Integrity servers. In six out of nine installations, projected eserver p5 server costs are less than a third of those for Sun Fire equivalents, and in the remainder they are less than half. Disparities in projected database costs show more variation. These variations are summarized in figure 4. International Technology Group 5

10 Figure 4 ERP Installation Cost Variations: eserver p5 and Sun Fire Configurations* eserver p5 server costs as % Sun Fire server costs eserver p5 Oracle costs as % Sun Fire Oracle costs eserver p5 DB2 costs as % Sun Fire DB2 costs SAP INSTALLATIONS PEOPLESOFT INSTALLATIONS ORACLE INSTALLATIONS Range Average Range Average Range Average N/A N/A * Results are specific to installations shown in Detailed Data section. See Methodology section for assumptions employed in calculations. Higher projected Sun Fire server costs compared to Integrity platforms are magnified because Sun has not to date offered UltraSPARC IV-based versions of its entry-level V440 and V880 servers, which may be configured with up to four and eight CPUs respectively. Four- and eight-way models of the Sun E2900 or (if partitioning and/or high availability features are required) E4900 are thus employed. These correspond to the earlier Sun V1280 and 4800, which are more expensive than the V440 and V880. WebSphere Installations The pattern of projected server and database costs is generally similar for WebSphere installations. Variations are summarized in figure 5. Figure 5 WebSphere Installation Cost Variations* INTEGRITY COMPARISON Range Average SUN FIRE COMPARISON Range Average eserver p5 server costs as % Integrity server costs eserver p5 server costs as % Sun Fire server costs eserver p5 Oracle costs as % Integrity Oracle costs eserver p5 Oracle costs as % Sun Fire Oracle costs eserver p5 DB2 costs as % Integrity DB2 costs eserver p5 DB2 costs as % Sun Fire DB2 costs Results are specific to installations shown in Detailed Data section. See Methodology section for assumptions employed in calculations. Disparities in projected server costs between eserver p5 and Sun Fire configurations are again larger than for eserver p5 and Integrity servers. In two installations, projected eserver p5 server costs are less than a third of those for Sun Fire equivalents, and in the third they are less than half. International Technology Group 6

11 Micro-Partitioning Implications Cost Impact Although higher levels of system-level performance also played a major role, the Micro-Partitioning technology employed in eserver p5 servers contributed significantly to projected lower server and database costs for these compared to Integrity and Sun Fire platforms. By allowing more efficient use of overall capacity in increments as small as 0.1 of a CPU, Micro Partitions (MPs) enable higher levels of capacity utilization than could be achieved with dedicated servers or physical partitioning techniques. The effects are particularly significant in the following areas: Mixed workloads. ERP as well as WebSphere systems typically involve mixes of online transaction processing, batch and other types of workload. This is particularly the case when companies employ diverse suites incorporating supply chain management (SCM), financial, human resources (HR) as well as core ERP functions. Figure 6 shows examples. Figure 6 Examples of ERP Workload Breakdowns PEOPLESOFT USER Spooling 3% SAP R/3 USER Messaging & Enqueue 4% Online SCM/ERP 40% Batch 21% Online Financial 27% Online HR 12% Batch 25% Dialog 53% Update 15% Overall processing efficiency depends on how well capacity can be allocated and re-allocated to handle such mixes. Physical partitioning techniques such as IBM logical partitions (LPARs), HP npartitions (npars) and Sun Dynamic System Domains (DSDs) can, to some extent, be used to manage these processes. Micro-Partitioning, however, enables greater flexibility and granularity of changes on a continuous basis. Multiple production systems. Where multiple production instances are employed, there may be significant variations in workload distribution between these over time. In the SAP Manufacturing Company installation, for example, separate R/3 instances for the company s North American and European operations are located on the same physical servers. Peak activity between these varies because of differences in time zones. Using a combination of physical and logical partitions, capacity may be more efficiently utilized over a 24-hour period than if dedicated servers were employed. International Technology Group 7

12 Operational and business intelligence systems. The SAP Transportation, PeopleSoft Business Services and Oracle Process companies, along with all three WebSphere users, employ data warehouses, data marts and equivalents that exploit data generated by operational systems. In most organizations, normal practice has been to deploy business intelligence systems on separate dedicated servers. More effective overall capacity utilization can, however, be achieved by deploying these on the same servers, or within the same complex of clustered servers using Micro-Partitioning to manage capacity allocation on an ongoing basis. Non-production instances. In all installations, companies operate various non-production instances for such applications as development, test, sandbox, quality assurance, staging and education. These have in the past often been deployed on dedicated servers. Dedicated capacity for such instances is unused or underutilized for much of the time. Micro-Partitioning enables more efficient overall server utilization by allocating capacity to such systems on an as needed basis. The ability to work with sub-cpu capacity increments is also useful, particularly for smaller instances. Other applications. These include extract, transformation and load (ETL), backup and system management facilities. Usage patterns for these are again bursty ; i.e. capacity is often underutilized. Micro-Partitioning techniques offer a useful alternative to dedicated servers or physical partitions. Like other virtualization technologies, MPs generate system overhead, which increases in proportion to the number of MPs running on a single physical platform. Allowance was made for this effect in configuration sizing, using assumptions detailed in the Methodology section of this report. In most cases, however, system overhead was more than compensated for by improved capacity utilization. If, for example, the use of five MPs on a single server generated system overhead of 25 percent but enabled the company to realize savings of 40 percent in capacity compared to use of multiple dedicated servers, the net cost impact was positive. Concerns that virtualization would increase vulnerability to outages, because multiple systems were concentrated on single physical servers, also appear to be exaggerated. Experiences with physical partitions indicate that concentration risks can be addressed through effective use of clustered failover techniques, and there is no obvious reason why this should not also be the case for virtual partitions. Clusters are thus employed in most profile configurations for all vendor platforms. There are also further and from a business perspective potentially more important implications in the enablement of real-time operations. Real Time Enablement The ability to operate in real time is increasingly emerging as a critical competitive issue among users of ERP as well as other types of system. In practice, it means the ability to assemble, organize, distribute and exploit data rapidly, on a continuous basis. The benefits of reduced cycle times have been widely recognized and acted upon in operational environments. Reduced order-to-delivery and procurement cycles reduce manufacturing, logistics and inventory costs. Real-time inventory visibility enables more effective order promising. Continuous generation of forecasts enables better planning, capacity optimization and cost control. International Technology Group 8

13 The focus of real-time strategies is now expanding beyond operational to higher value-added processes such as decision-making and customer interaction. Among the companies that form the basis of profiles, the following examples may be cited: SAP Manufacturing Company realized major gains in operational efficiency through earlier deployment of R/3 transaction-processing systems. The potential for further such gains has, however, now begun to diminish, and the focus of ERP strategy is moving to new supply chain optimization techniques using SAP Advanced Planning and Optimization (APO). Effective use of APO requires that operational information be extracted from core production systems and distributed on a 24x7 basis to hundreds of decision makers worldwide. The company s SAP Business Information Warehouse (BW) has also moved to real-time operations for purchasing and inventory data, enabling the company s global business units to better coordinate procurement initiatives. PeopleSoft Financial Services Company has established real-time database feeds between core financial systems and its PeopleSoft Enterprise Performance Management (EPM) environment. EPM is a sophisticated business intelligence system that collects, collates and interprets critical financial data for management reporting and decision support applications. As a result, the company is able to provide managers with continuously updated key performance indicator (KPI) reports. Users can also drill-down into data marts of current information on a wide range of topics. These and other real-time capabilities have improved the speed and quality of decision-making throughout the company, and have enabled to company to accelerate planning, forecasting, budgeting and reporting cycles. Oracle Retail Company has launched multiple real-time initiatives. The company s sales information is updated and transferred to replenishment and logistics systems on an ongoing basis. Significant bottom-line improvements in costs and operational flexibility in these areas have been realized, and stock-outs have been largely eliminated. The role of the company s data warehouse has also expanded. The system had previously been employed only for analytical purposes, and processing jobs were executed on a weekly or monthly basis. It is now updated continuously with feeds from the company s core systems. Data is downloaded nightly to stores, where managers may view analyses of the previous day s sales results and make procurement and merchandising decisions accordingly. WebSphere Telecommunications Company has put in place mechanisms that transfer call records to its usage data warehouse and CRM systems in real time. Network optimization is improved. Call center agents can deal with customer queries about recent calls, without waiting for these to post. Significant improvements in customer satisfaction have resulted. In addition, the WebSphere Distribution Company has put in place a self-service system that enables its customers to view inventory availability in real time, and to place orders and track delivery status on a 24x7 basis via the Internet. Risks that products will not be available, or will not be delivered in time are minimized. Other such examples might be cited. In varying degrees, all of the profile companies employ and benefit from real-time applications, and, like many counterparts in a wide range of industries, plan to increase use of these. There are a number of prerequisites for real-time competitiveness. It may be necessary to remove bottlenecks and delays in informational processes through reengineering, replacement of legacy applications, or both. International Technology Group 9

14 There are also important implications for underlying IT infrastructures. For example, real-time environments commonly result in the end of traditional batch cycles, and the substitution of concurrent online and batch processing. Movement of data between operational and business intelligence systems may, similarly, become continuous. It may be necessary to execute ETL in parallel with operational processes, rather than during off-peak periods. Real-time issues, as well as recoverability concerns and shrinking batch windows, are also changing backup cycles. Backups that once occurred nightly or weekly are now, increasingly, being performed at multiple times during the day, or on an ongoing basis. Real-time competitiveness thus means that companies must, to a much greater extent than in conventional environments, execute workloads concurrently rather than sequentially. Challenges are magnified when as is the case for ERP, e-commerce and other business-critical applications that are the focus of this report complex interdependent workloads must be supported. There are two potential outcomes. One is that a great deal of additional capacity will be required to maintain concurrent operations and contain risks of outages due to overloading; i.e. companies adopting real-time competitive models should expect major increases in configuration sizes and corresponding server and database costs. Even if users were prepared to accept significant cost increases because of over configuration, there are other potential drawbacks to this approach. The latencies generated by high-volume intra- and inter-system data transfers within large configurations could easily result in performance degradation, and increase risks of malfunctions affecting time-sensitive business processes. The other potential response to these challenges is to put in place solutions that enable processor capacity, I/O and other system-level resources to be allocated, reallocated, monitored and managed in a highly granular manner, in real time. The Micro-Partitioning capabilities implemented in eserver p5 servers, the workload management facilities that support them, and provision for high-speed partition-to-partition communications in the underlying hardware platform and AIX environment clearly meet these requirements. International Technology Group 10

15 DETAILED DATA SAP Installations Manufacturing Company Configuration and cost comparisons are summarized in figure 7, and detailed configurations are shown in figures 8, 9 and 10. Figure 7 SAP Manufacturing Company: Configuration and Cost Comparisons* CONFIGURATION Database Servers IBM Hewlett-Packard Sun Microsystems 2 x eserver p x 1.65 GHz Oracle RAC, DB2 HACMP 2 x rx x mx2 Oracle RAC, DB2 Serviceguard rx x (8 x mx2) 2 x (4 x mx2) rx x (2 x 1.5 GHz) 5 x (1 x 1.5 GHz) 2 x E x 1.2 GHz Oracle RAC, DB2 Sun Cluster E x (8 x 1.2 GHz) 2 x () 280R 2 x (2 x 1.2 GHz) 5 x (1 x 1.2 GHz) Application Servers 13 x eserver p x 1.65 GHz 4 x eserver p x 1.65 GHz Non-production 6 x eserver p x 1.65 GHz SERVER COST ($000) rx x mx2 17 x rx x mx2 8 x rx x 1.5 GHz rx x (8 x mx2) 5 x (4 x mx2) rx x (2 x 1.5 GHz) 7 x (1 x 1.5 GHz) E x E x 280R 2 x 1.2 GHz E x (8 x 1.2 GHz) 5 x () 280R 2 x (2 x 1.2 GHz) 7 x (1 x 1.2 GHz) Hardware 773 2,199 4,395 Maintenance ,214 Systems software Software support Total 1,282 2,882 5,961 ORACLE COST ($000) Licenses 1,478 3,072 3,072 Updates & support 976 2,028 2,028 Total 2,454 5,100 5,100 DB2 COST ($000) Licenses 594 1,212 1,212 Updates & support Total 1,039 2,121 2,121 *See Methodology section for assumptions employed in these calculations. International Technology Group 11

16 Figure 8 SAP Manufacturing Company: eserver p5 Configuration* DATABASE SERVERS eserver p x 1.65 GHz eserver p x 1.65 GHz #1 R/3 Central Instance (Database & Application Server) 8 CPUs #1 Non-production 10 CPUs 8 MPs APO #1 1 CPU #1 Non-production 1 CPU #2 Non-production 77 CPUs 12 MPs #2 R/3 #1 Database Server 4 CPUs #2 R/3 Central System & APO 1 CPU 2 MPs Archiving 1 CPU APPLICATION SERVERS 13 x eserver p x 1.65 GHz 4 x eserver p x 1.65 GHz Primary Systems LPARS Non-production 4 x eserver p x 1.65 GHz eserver p x 1.65 GHz 8 MPs eserver p x 1.65 GHz 2 MPs International Technology Group 12

17 Figure 9 SAP Manufacturing Company: Integrity Configuration* DATABASE SERVERS rx x mx2 rx x mx2 #1 R/3 Central Instance (Database & Application Server) 12 CPUs #1 Non-production 8 CPUs #2 Non-production 12 CPUs 2 npars #2 R/3 Central Instance (Database & Application Server) 8 CPUs APO #1 4 CPUs #2 Non-production 4 CPUs #1 Non-production 4 CPUs APO #2 4 CPUs #1 Non-production 2 x rx x mx2 rx x mx2 2 x rx x 1.5 GHz 2 x rx x 1.5 GHz Archiving/Development rx x mx2 #2 Non-production rx x mx2 3 x rx x 1.5 GHz APPLICATION SERVERS 17 x rx x mx2 8 x rx x 1.5 GHz Primary Systems DSDs Non-production rx x mx2 5 x rx x mx2 2 x rx x 1.5 GHz 7 x rx x 1.5 GHz International Technology Group 13

18 Figure 10 SAP Manufacturing Company: Sun Fire Configuration* DATABASE SERVERS E x 1.2 GHz E x 1.2 GHz #1 R/3 Central Instance (Database & Application Server) 12 CPUs #1 Non-production 8 CPUs #2 Non-production 12 CPUs 2DSDs #2 R/3 Central Instance (Database & Application Server) 8 CPUs APO #1 4 CPUs #2 Non-production 4 CPUs #1 Non-production 4 CPUs APO #2 4 CPUs #1 Non-production 2 x E x 1.2 GHz E x 280R 2 x 1.2 GHz 2 x 280R 1 x 1.2 GHz Archiving/Development E2900 #2 Non-production E x 280R 1 x 1.2 GHz APPLICATION SERVERS 17 x E2900 E x 280R 2 x 1.2 GHz Primary Systems DSDs Non-production E x 1.2 GHz 5 x E x 280R 2 x 1.2 GHz 7 x 280R 1 x 1.2 GHz International Technology Group 14

19 Energy Company Configuration and cost comparisons are summarized in figure 11, and detailed configurations are shown in figures 12, 13 and 14. Figure 11 SAP Energy Company: Configuration and Cost Comparisons* CONFIGURATION Database Servers IBM Hewlett-Packard Sun Microsystems 2 x eserver p x 1.65 GHz Oracle RAC, DB2 HACMP 2 x rx x mx2 Oracle RAC, DB2 Serviceguard 2 x rx x mx2 2 x E x 1.2 GHz Oracle RAC, DB2 Sun Cluster 2 x E2900 Application Servers 9 x eserver p x 1.65 GHz Non-production 2 x eserver p x 1.65 GHz SERVER COST ($000) rx x 1.5 GHz 12 x rx x mx2 rx x 1.5 GHz rx x 1.5 GHz rx x mx2 rx x mx2 rx x mx2 2 x rx x 1.5 GHz 280R 2 x 1.2 GHz 12 x E R 2 x 1.2 GHz 280R 1 x 1.2 GHz E x 1.2 GHz E x 1.2 GHz E x 280R 1 x 1.2 GHz Hardware 512 1,215 1,799 Maintenance Systems software Software support Total 706 1,856 2,352 ORACLE COST ($000) Licenses 739 1,226 1,226 Updates & support Total 1,227 2,035 2,035 DB2 COST ($000) Licenses Updates & support Total *See Methodology section for assumptions employed in these calculations. International Technology Group 15

20 Figure 12 SAP Energy Company: eserver p5 Configuration* DATABASE SERVERS eserver p x 1.65 GHz R/3 Central Instance (Database & Application Server) Backup Server 2 MPs eserver p x 1.65 GHz Non-production Systems 7 MPs eserver p x 1.65 GHz 3 MPs (Application, System Management & EDI Server) 8 x eserver p x 1.65 GHz APPLICATION SERVERS Non-production eserver p x 1.65 GHz eserver p x 1.65 GHz 4 MPs Figure 13 SAP Energy Company: Integrity Configuration* DATABASE SERVERS rx x mx2 R/3 Central Instance (Database & Application Server) rx x 1.5 GHz Backup Server rx x mx2 Non-production Systems 3 npars 2 x rx x mx2 Non-production Systems APPLICATION SERVERS 12 x rx x mx2 rx x 1.5 GHz (EDI Server) rx x 1.5 GHz (System Management Server) Non-production rx x mx2 rx x mx2 rx x mx2 2 x rx x 1.5 GHz International Technology Group 16

21 Figure 14 SAP Energy Company: Sun Fire Configuration* DATABASE SERVERS E x 1.2 GHz R/3 Central Instance (Database & Application Server) 280R 2 x 1.2 GHz Backup Server E x 1.2 GHz Non-production Systems 3 DSDs 2 x E2900 Non-production Systems APPLICATION SERVERS 12 x E R 2 x 1.2 GHz (EDI Server) 280R 1 x 1.2 GHz (System Management Server) Non-production E x 1.2 GHz E x 1.2 GHz E x 280R 1 x 1.2 GHz International Technology Group 17

22 Transportation Company Configuration and cost comparisons are summarized in figure 15, and detailed configurations are shown in figures 16, 17 and 18. Figure 15 SAP Transportation Company: Configuration and Cost Comparisons* CONFIGURATION Database Servers IBM Hewlett-Packard Sun Microsystems 2 x eserver p x 1.65 GHz HACMP 3 x rx x mx2 Serviceguard 3 x E2900 Sun Cluster Application Servers 3 x eserver p x 1.65 GHz eserver p x 1.65 GHz Non-production eserver p x 1.65 GHz eserver p x 1.65 GHz SERVER COST ($000) 2 x rx x 1.5 GHz 4 x rx x 1.5 GHz 4 x rx x mx2 3 x rx x 1.5 GHz 3 x rx x mx2 2 x rx x 1.5 GHz 5 x rx x 1.5 GHz 2 x 280R 2 x 1.2 GHz 4 x 280R 1 x 1.2 GHz 4 x E x 280R 2 x 1.2 GHz 3 x E x 280R 2 x 1.2 GHz 5 x 280R 1 x 1.2 GHz Hardware Maintenance Systems software Software support Total ORACLE COST ($000) Licenses Updates & support Total DB2 COST ($000) Licenses Updates & support Total *See Methodology section for assumptions employed in these calculations. International Technology Group 18

23 Figure 16 SAP Transportation Company: eserver p5 Configuration* DATABASE SERVERS pseries x 1.65 GHz R/3 Database Server Support Staging CRM Database Server 4 MPs pseries x 1.65 GHz R/3 Database Server Non-production CRM Database Server Non-production BW Data Mart Development Backup Server 9 MPs APPLICATION SERVERS 2 x pseries x 1.65 GHz pseries x 1.65 GHz 2 MPs* pseries x 1.65 GHz Non-production pseries x 1.65 GHz 3 MPs pseries x 1.65 GHz 6 MPs* *Clustered failover for central instance server International Technology Group 19

24 Figure 17 SAP Transportation Company: Integrity Configuration* DATABASE SERVERS rx x mx2 R/3 Database Server Support rx x mx2 BW Data Mart Development rx x 1.5 GHz R/3 Database Server Staging Non-production rx x mx2 2 x rx x 1.5 GHz rx x 1.5 GHz rx x 1.5 GHz CRM Database Server rx x 1.5 GHz Backup Server APPLICATION SERVERS 3 x rx x mx2 rx x mx2* 3 x rx x 1.5 GHz *Clustered failover for central instance server Non-production 2 x rx x mx2 rx x mx2* 2 x rx x 1.5 GHz 5 x rx x 1.5 GHz International Technology Group 20

25 Figure 18 SAP Transportation Company: Sun Fire Configuration* DATABASE SERVERS E2900 R/3 Database Server Support E2900 BW Data Mart Development 280R 1 x 1.2 GHz R/3 Database Server Staging Non-production E R 2 x 1.2 GHz 2 x 280R 1 x 1.2 GHz 280R 2 x 1.2 GHz CRM Database Server 280R 1 x 1.2 GHz Backup Server APPLICATION SERVERS 3 x E2900 E2900 * 3 x 280R 2 x 1.2 GHz *Clustered failover for central instance server Non-production 2 x E2900R E2900 * 2 x 280R 2 x 1.2 GHz 5 x 280R 1 x 1.2 GHz International Technology Group 21

26 PeopleSoft Installations Financial Services Company Configuration and cost comparisons are summarized in figure 19, and detailed configurations are shown in figures 20, 21 and 22. Figure 19 PeopleSoft Financial Services Company: Configuration and Cost Comparisons* CONFIGURATION Database Servers IBM Hewlett-Packard Sun Microsystems 2 x eserver p x 1.65 GHz Oracle RAC, DB2 HACMP eserver p x 1.65 GHz 2 x rx x mx2 Oracle RAC, DB2 Serviceguard rx x mx2 2 x rx x 1.5 GHz 2 x E x 1.2 GHz Oracle RAC, DB2 Sun Cluster E x 1.2 GHz 2 x 280R 2 x 1.2 GHz Application & Web Servers 4 x eserver p x 1.65 GHz 3 x eserver p x 1.65 GHz Non-production eserver p x 1.65 GHz eserver p x 1.65 GHz SERVER COST ($000) rx x 1.5 GHz 5 x rx x mx2 6 x rx x 1.5 GHz rx x mx2 4 x mx2 2 x rx x 1.5 GHz rx x 1.5 GHz 280R 2 x 1.2 GHz 5 x E x 280R 2 x 1.2 GHz E x 1.2 GHz 2 x 280R 2 x 1.2 GHz 280R 1 x 1.2 GHz Hardware 482 1,270 2,134 Maintenance Systems software Software support Total 720 1,755 2,730 ORACLE COST ($000) Licenses 1,168 2,293 2,293 Updates & support 771 1,514 1,514 Total 1,939 3,807 3,807 DB2 COST ($000) Licenses Updates & support Total 816 1,725 1,725 *See Methodology section for assumptions employed in these calculations. International Technology Group 22

27 Figure 20 PeopleSoft Financial Services Company: eserver p5 Configuration* DATABASE SERVERS eserver p x 1.65 GHz Finance & HR System: Database & Batch Servers ETL Subsystem Backup Server 6 MPs eserver p x 1.65 GHz EPM & Development/Test 5 MPs eserver p x 1.65 GHz Finance & HR Nonproduction Systems 3 MPs APPLICATION & WEB SERVERS 3 x eserver p x 1.65 GHz (Application Servers) eserver p x 1.65 GHz 3 MPs (Application Server, Process Scheduling & System Management Server) 3 x eserver p x 1.65 GHz (Web Servers) Non-production eserver p x 1.65 GHz 3 MPs eserver p x 1.65 GHz 2 MPs International Technology Group 23

28 Figure 21 PeopleSoft Financial Services Company: Integrity Configuration* DATABASE SERVERS rx x mx2 Finance & HR System: Database & Batch Servers ETL Subsystem 2 npars rx x 1.5 GHz Backup Server rx x mx2 EPM & Development 2 npars rx x mx2 Finance & HR Nonproduction Systems 3 npars 2 x rx x 1.5 GHz EPM Development & Test APPLICATION & WEB SERVERS 5 x rx x mx2 2 x rx x 1.5 GHz ( Process Scheduling & System Management Servers) 4 x rx x 1.5 GHz Non-production rx x mx2 rx x mx2 2 x rx x 1.5 GHz rx x 1.5 GHz International Technology Group 24

29 Figure 22 PeopleSoft Financial Services Company: Sun Fire Configuration* DATABASE SERVERS E x 1.2 GHz Finance & HR System: Database & Batch Servers ETL Subsystem 2 DSDs 280R 2 x 1.2 GHz Backup Server E x 1.2 GHz EPM & Development 2 DSDs E x 1.2 GHz Finance & HR Nonproduction Systems 3 DSDs 2 x 280R 2 x 1.2 GHz EPM Development & Test APPLICATION & WEB SERVERS 5 x E x 280R 2 x 1.2 GHz ( Process Scheduling & System Management Servers) 4 x 280R 2 x 1.2 GHz Non-production E x 1.2 GHz E x 280R 2 x 1.2 GHz 280R 1 x 1.2 GHz International Technology Group 25

30 Business Services Company Configuration and cost comparisons are summarized in figure 23, and detailed configurations are shown in figures 24, 25 and 26. Figure 23 PeopleSoft Business Services Company: Configuration and Cost Comparisons* CONFIGURATION Database Servers IBM Hewlett-Packard Sun Microsystems 2 x eserver p x 1.65 GHz HACMP 2 x rx x mx2 Serviceguard 2 x E x 1.2 GHz Sun Cluster Application & Web Servers 6 x eserver p x 1.65 GHz 3 x eserver p x 1.65 GHz Non-production eserver p x 1.65 GHz SERVER COST ($000) rx x mx2 6 x rx x mx2 4 x rx x 1.5 GHz rx x 1.5 GHz rx x mx2 rx x 1.5 GHz E x E x 280R 2 x 1.2 GHz 280R 1 x 1.2 GHz E x 1.2 GHz 280R 1 x 1.2 GHz Hardware ,252 Maintenance Systems software Software support Total 532 1,033 1,563 ORACLE COST ($000) Licenses Updates & support Total 855 1,381 1,381 DB2 COST ($000) Licenses Updates & support Total *See Methodology section for assumptions employed in these calculations. International Technology Group 26

31 Figure 24 PeopleSoft Business Services Company: eserver p5 Configuration* DATABASE SERVERS eserver p x 1.65 GHz Finance & HR System Database & Batch Servers eserver p x 1.65 GHz Test & Development Systems 6 MPs APPLICATION & WEB SERVERS 5 x eserver p x 1.65 GHz (Application Servers) eserver p x 1.65 GHz 4 MPs (HR Self-service & eprocurement Server) 3 x eserver p x 1.65 GHz (Web Servers) Non-production eserver p x 1.65 GHz Figure 25 PeopleSoft Business Services Company: Integrity Configuration* DATABASE SERVERS rx x mx2 Finance & HR System Database & Batch Server rx x mx2 Finance & HR System Development 2 npars rx x mx2 Finance & HR System Test & Education APPLICATION & WEB SERVERS rx x mx2 (HR Self-service Server) rx x 1.5 GHz (eprocurement Server) rx x 1.5 GHz System Management Server) 5 x rx x mx2 (Application Servers) 3 x rx x 1.5 GHz (Web Servers) Non-production rx x mx2 2 npars rx x 1.5 GHz International Technology Group 27

32 Figure 26 PeopleSoft Business Services Company: Sun Fire Configuration* DATABASE SERVERS E x 1.2 GHz Finance & HR System Database & Batch Server E x 1.2 GHz Finance & HR System Development 2 DSDs E2900 Finance & HR System Test & Education APPLICATION & WEB SERVERS E2900 (HR Self-service Server) 280R 2 x 1.2 GHz (eprocurement Server) 280R 1 x 1.2 GHz System Management Server) 5 x E2900 (Application Servers) 3 x 280R 2 x 1.2 GHz (Web Servers) Non-production E x 1.2 GHz 2 DSDs 280R 1 x 1.2 GHz International Technology Group 28

33 Technology Company Configuration and cost comparisons are summarized in figure 27, and detailed configurations are shown in figures 28, 29 and 30. Figure 27 PeopleSoft Technology Company: Configuration and Cost Comparisons* CONFIGURATION Database Servers Application & Web Servers IBM Hewlett-Packard Sun Microsystems 2 x eserver p x 1.65 GHz HACMP 3 x eserver p x 1.65 GHz 2 x eserver p x 1.65 GHz Non-production eserver p x 1.65 GHz SERVER COST ($000) 2 x rx x mx2 Serviceguard rx x mx2 Oracle 3 x rx x mx2 3 x rx x 1.5 GHz rx x 1.5 GHz rx x rx x 1.5 GHz rx x 1.5 GHz E x 1.2 GHz E x 1.2 GHz Sun Cluster E2900 Oracle 3 x E x 280R 2 x 1.2 GHz 280R 1 x 1.2 GHz E x 280R 2 x 1.2 GHz 280R 1 x 1.2 GHz Hardware Maintenance Systems software Software support Total ORACLE COST ($000) Licenses Updates & support Total DB2 COST ($000) Licenses Updates & support Total *See Methodology section for assumptions employed in these calculations. International Technology Group 29

34 Figure 28 PeopleSoft Technology Company: eserver p5 Configuration* DATABASE SERVERS eserver p x 1.65 GHz Database Servers eserver p x 1.65 GHz Non-production Database Systems 4 MPs 2 x eserver p x 1.65 GHz (Application Servers) APPLICATION & WEB SERVERS eserver p x 1.65 GHz 2 MPs (Application & System Management Server) 2 x eserver p x 1.65 GHz (Web Servers) Non-production eserver p x 1.65 GHz 5 MPs Figure 29 PeopleSoft Technology Company: Integrity Configuration* DATABASE SERVERS rx x mx2 Database Server rx x mx2 Database Server Development & Test rx x mx2 Database Server Staging APPLICATION & WEB SERVERS 3 x rx x mx2 3 x rx x 1.5 GHz rx x 1.5 GHz (System Management Server) Non-production rx x mx2 7 x rx x 1.5 GHz rx x 1.5 GHz International Technology Group 30