January 15, 2015

Statement of Work:

Enterprise Architecture Virtualization & Consolidation

Submitted by:

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Business Objectives For businesses of all sizes, technology is essential to enhancing the customer experience, empowering employee productivity, and driving innovation and differentiation—all vital components for success. In IT, where limited resources and budgets are the norm, cloud computing promises to help companies reduce cost and complexity in the IT equation and gain the flexibility and agility needed for success.

Cloud computing is an emerging and evolving architecture, and is an accepted business paradigm for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources. However, charting a clear course to the cloud isn’t easy. You need to cut through the marketing hype that surrounds the cloud, and then understand and discern the advantages and disadvantages of different implementations of cloud computing models. In addition, you need to determine which cloud alternatives are best suited to your company’s strategy, workload, performance and security needs; while taking into consideration your own in-house IT expertise and desire to “do it yourself”— now and in the future. SageLogix is an expert at helping small, medium and enterprise customers navigate these decisions that start with a Virtualization and Consolidation Analysis.

SageLogix starts by validating our Client’s Oracle hosting infrastructure and corresponding licensing requirements to provide a current state assessment and a proposed future roadmap that includes cost saving opportunities and system architecture optimization through analysis of the following: (a) Server and Database consolidation

(b) Lifecycle Inventory of hardware and vendor-supplied software (c) Capacity planning and future growth needs analysis

(d) Qualitative “Abilities “Assessment (availability, recoverability, flexibility, maintainability, etc.) (e) Quantitative Resource Utilization Measures (f)

Virtualization Opportunities

(g) Operating Systems (h) System Utilization

Methodology and Approach Data collection, analysis and solution modeling will be performed using advanced IT infrastructure analysis and design software called Lanamark Suite to accomplish the following objectives: (a) Collect hardware, software and performance data from the existing, running environment (b) Identify servers most suitable for virtualization

(c) Right‐size virtual infrastructure to avoid under‐provisioning or over‐provisioning

(d) Optimize resource allocation to virtualized servers to maximize utilization and minimize TCO

(e) Optimize performance and availability of virtualized servers by deploying them for redundancy and fail-over Copyright © 1/07/2015 SageLogix, Inc.

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Resource Utilization Patterns Critical Business cycles i.e., Month End

Agentless Data Collection

Information Gathering

License and Support Costs Software

Hardware

Business Initiatives

Consolidation

Infrastructure Refreshes

Virtualization

Proposed Solution and Benefits Benefits realized through the assessment and roadmap process may include, but are not limited to: • • • • • • • • • •

Cost Benefit Analysis with multiple roadmap scenarios, including expected ROI for each scenario Deployment costs reduction opportunities Management time cost reduction opportunities Increased performance and availability Lower integration costs Protection of hardware and software investments Cost and feature benefit between Oracle VM and VMware Cost and feature benefits among proprietary UNIX operating systems compared to Linux Advantages of Oracle Linux including the Unbreakable Enterprise Kernel Best practices recommendations

Assumptions

To perform the work outlined above, Vendor will collect and analyze information on the existing environment(s) and comprehensive system architecture. Data collection methods will include the use of an automated instrumentation collection tool that will require administrative access credentials to all systems under study; Client’s administrative resources will be required initially to configure the tool under vendor supervision, as Vendor ordinarily is not granted direct access. Instrumentation collection will not install agents, software or scripts on the target systems, nor will it write or modify any data or settings on those target systems. Instrumentation collection will coalesce the target system measurements into a Client-supplied Windows Server system, which, in turn, will upload the summarized instrumentation data via SSL to an external Internet site for analysis. Copyright © 1/07/2015 SageLogix, Inc. SageLogix.com 877-846-6731 [email protected]

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Vendor will perform system testing, data and statistical analysis, and will also host in-depth Client team interviews and discussions. As an outcome, Vendor will articulate a roadmap that will provide short-term gains as well as an actionable plan to address future needs, growth, performance, reliability, availability and cost savings opportunities. Data Collection and Usage Assumptions are as follows: • • • • • •

Vendor will not have direct Client database access, and will not retrieve any data from Client databases Vendor requires access to purely system-level performance metrics on the Client's business systems SSH and Windows RPC calls are made to target systems for metrics, no local scripts or agents are installed Collection/query system will need elevated rights to the monitored systems (possibly including sudo) Aggregation of data will be done on a Client controlled system (for firewall and security reasons) and then reviewed and uploaded to Vendor's analysis engine using an encrypted Internet connection If agreed to in advance, additional data, such as Database Automated Workload Repository metrics, may be supplied by Client to Vendor outside of the automated collection mechanism in order to facilitate more finegrained analysis of selected critical workloads

Vendor will provide the following deliverables: • • • • •

Project kick-off meeting, scheduled to include relevant Client management and administrators Necessary software, scripts and queries to be dispatched to target systems for system metrics collection System Architecture Consolidation Assessment document that provides a comparative cost/benefit analysis for up to 4 mutually agreed upon scenarios (as compared to the current-state baseline) Server Virtualization, Consolidation and Capacity Planning Report Management Review Presentation

In addition to the fundamental System Architecture Consolidation, the following areas of interest to Client can be addressed in the final Assessment report: • • • • •

Performance impact of a shift to solid state disk (SSD) storage hardware technologies Benefits and expected changes of transitioning backup from a tape-dominant to disk-dominant backup model Key success factors and checklist items for transition to data center hosting facilities Potential licensing impacts and licensing strategies resulting from consolidation alternatives Comparison of existing proprietary chipset technology to Intel/AMD x86 as consolidation/virtualization targets

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Required Client Assistance and Tasks Client will complete these tasks for the project in accordance with the schedule listed below or as mutually agreed upon: (a) Provide all required access to systems to collect analysis information around servers, storage, etc.

(b) Provide detailed information on all relevant software and hardware expenditures, potentially including

support invoices.

(c) Access to System Administrators as required, typically 24 to 32 hours during the engagement.

requirement will be formally defined and mutually agreed upon during the kickoff meeting.

This

(d) Access to Oracle Database Administrators, typically 8 to 24 hours during the engagement. This requirement

will be formally defined and mutually agreed upon during the kickoff meeting.

(e) Access to business sponsors for interviews concerning strategic initiatives affecting infrastructure within the

new few years.

(f)

Access to the required facilities, servers, accounts and IT resources as appropriate.

(g) The data collector for the analysis will require a dedicated, physical or virtual Windows Server 2008 R2 or Windows Server 2012 system that is available 24x7 throughout the collection period. The data collector, in turn, will connect to target systems via SSH (usually port 22) for UNIX/Linux systems and via WMI, Perfmon and Remote Registry for Windows systems. Detailed technical requirements for collector software, memory and storage, as well as required network ports and target credentials will be made available to the Client prior to the kickoff of the engagement. The collector will require Internet access to perform an encrypted upload of the aggregated metrics to Vendor's analysis engine.

License Reviews

For more than 10 years SageLogix has been helping Oracle customers optimize and organize their Oracle software investments. Through services tailored to each client and a holistic approach, our license optimization expertise can quickly assess license compliance and identify cost saving opportunities. •

• • •

Strategy – SageLogix will assess the business needs and evaluate your current Oracle Licensing to create an actionable plan to increase your total ROI. Design – SageLogix will collaborate with you to design an architectural roadmap that will achieve business and IT financial and operational goals. Implementation – SageLogix will assist with the implementation of the proposed architecture while mentoring on operational best practices and technology features. Production Support – SageLogix can provide support with our Strategic Support Services organization. This can help reduce costs.

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Additional Capabilities • • • • • •

Build-out of VMware vCenter virtualization cluster(s) Build-out of Oracle VM virtualization cluster(s) Oracle database migration including Minimal downtime migration Cross-architectural transition Physical-to-virtual machine transition

Key Personnel Assigned for Each Party (a) Vendor: (b) Client:

Name/Title: Randy Cunningham – Solutions Architect, Christa Harris – Account Executive

Name/Title:

Payment Schedule; Bonding Payment Schedule; Vendor will include reference PO number on all related invoiced fees and expenses authorized by this SOW.

Total estimated fees for this SOW are $___________ based upon business and technical requirements known to date. Prepay amount of $____________ to be invoiced at commencement of project and payment of $____________ on the completion of the project.

Any payment may be withheld if Client is not reasonably satisfied with the progress Vendor is making on development of the deliverables under this SOW. Any withheld payments will be made once Client is reasonably satisfied with the progress.

Price does not include any major expenses including out-of-town travel, or software licensing costs for Client. Should major expense items be required, Vendor will discuss with Client before proceeding with the expense. Signing below represents agreement with the preceding terms and conditions and possession of proper authority to bind the company under applicable laws. SageLogix, Inc

Client

By:

By:

Title:

Title:

Print Name: Date:

Print Name: Date:

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Appendix A – A SageLogix Financial Institution Case Study: Impacts of Virtualization on a SageLogix client For a large Financial Institution, SageLogix performed an in-depth analysis of their current IT infrastructure to demonstrate how virtualization could help meet the customer’s needs without adversely impacting overall performance or uptime. Included in this analysis was a cost comparison of virtualization products by Oracle and VMware.

During the course of this study detailed performance metrics were gathered from one their current environments consisting of 38 physical servers including HP Itanium, PA-RISC and x86 servers, all providing a variety of services including Oracle databases, SAP, and mission-critical business applications. After analyzing the data it was noticed that while some servers where highly utilized, others were consistently idle, indicating inefficient use of some hardware. Upon completion of this case study it was found that the customer could significantly reduce their total cost of ownership in four primary areas: • • •

•

Maximize cost savings through the implementation of Oracle’s Virtualization product offerings. Consolidation of physical servers from 38 to 10, reducing annual hardware support costs. Reduction of their physical data center footprint by 78%, which in turn reduces total power consumption, cooling requirements and physical space needs. Decrease Oracle licensing costs by reducing the number of physical server cores throughout the data center.

These are some of the vital statistics illustrating the cost benefits of migrating their current platform into a consolidated, virtualized infrastructure:

40 35 30 25 20 15 10 5 0

500,000 Current Infrastructure Number of Number of Servers CPU Cores

Virtualized Infrastructure

400,000 300,000

Current Infrastructure

200,000 100,000 0

Total Heat Dissipation BTU/h

Virtualized Infrastructure

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Vital statistics Continued Illustrating the cost benefits of migrating their current platform into a consolidated, virtualized infrastructure:

3,000 2,500

2,000

Current Infrastructure

1,500 1,000 500

0

Total Main Memory GB

140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Total Annual Energy Costs $

Virtualized Infrastructure

800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0

Current Infrastructure Carbon Footprint /yr kg

Virtualized Infrastructure

Current Infrastructure Virtualized Infrastructure

In addition to these quantitative benefits, the customer would also obtain: improved scalability through the use of a homogeneous interconnected architecture; applications that previously resided on physical servers with no redundancy could now take advantage of Oracle’s high availability configuration within Oracle VM without additional hardware or software costs; better manageability through the use of a uniform platform architecture and operating system.

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Appendix B – A SageLogix Insurance Provider Case Study: Impacts of Virtualization on a SageLogix client For a large Insurance Provider, SageLogix performed an in-depth analysis of their current IT infrastructure to quantify how virtualization could help meet the customer’s needs while improving performance, availability and scalability.

The recommended architecture transitions the Insurance Provider toward a private cloud processing model that is state-of-the-art, flexible, manageable, reliable and cost-effective. The entire transition, performed in phases, can be done while the client conducts business as usual, irrespective of the location or type of technology assets in use at any given time.

Accordingly, SageLogix recommended that the client adopt a reference architecture for its data center platform. This architecture promotes prompt and straightforward migration of the existing VMware virtual guests to the new infrastructure, while providing ample headroom for virtualization of existing x86 physical machine workloads during the course of the transition.

Ultimately, the platform cluster will also be able to host the existing Oracle database workloads in very large memory virtual machines that can be incrementally added to the virtualization cluster. The recommended platform strives to provide the modularity and commoditization of hyper-converged compute solutions while providing needed flexibility and choice for virtualization software and storage solutions.

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These are some of the vital statistics illustrating the cost benefits of migrating their current platform into a consolidated, virtualized infrastructure: Compute Server Platform Total Power Consumption Reduction: A total of either 5 or 6 blades are recommended, based on the measured workload and allowing for new, near-term application expansion. The workload could be handled by 4 blades, based on the workload analysis, but a minimum of 5 blades are recommended to provide for N+1 HA capabilities and absorb future application needs. For additional HA capacity or resilience, a 6 blade configuration in two chasses is recommended. The total power consumption for 5 blades is 3.0 kW; for 6 blades it is 3.6 kW. This compares to a total power consumption figure of 7.3 kW for the existing servers that were measured.

8 7 6 5 4 3 2 1 0

Current Infrastructure OVM Infrastructure Power Consumption in kW

Software Licensing and Support Total Cost Reduction: Compared to leading VM option, we have the ability to offer total cost reduction of over 80% in software costs on your existing hardware. They are able to manage infrastructure that licensing costs will be reduced by:

70,000 60,000 50,000

Current Infrastructure

40,000 30,000

OVM Infrastructure

20,000 10,000

0

Software Costs $

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Appendix B – Sample Data Collection Output

Virtual Infrastructure Analysis Output

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Hardware Analysis Output

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Hardware Utilization Analysis Output

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Appendix C – Technical Requirements for Collector System System Requirements for Lanamark Explorer Host System

Copyright © 1/07/2015 SageLogix, Inc. SageLogix.com 877-846-6731 [email protected]