the value of postgres to it and finance

The Value of Postgres to IT and Finance Migrate to an Enterprise Class Database. Four weeks, minimal code changes. Same skill sets, Similar tools. And cut your Oracle spend by 70%.

where would you invest

the savings?

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Mobile Enablement Social Media Visualization Consumerization Cloud Enablement Big Data Insights Analytics

Are you paying more for the database and getting less out of applications?

April 2015 ID Number G00273643 GARTNER IMPACT APPRAISAL

State of Relational Open Source RDBMS

“By 2018, more than 70% of new in-house applications will be developed on an OSDBMS and…”

“50% of existing commercial RDBMS instances will have been converted or will be in process.”

Impact

“Relational OSDBMS has matured and can be considered as a standard infrastructure choice for a large majority of new enterprise apps”

“Relational OSDBMS can be used today to replace existing internal commercial RDBMS choices.”

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Gartner: Relational OSDBMS has matured and today can be considered as a standard infrastructure choice for a large majority of new enterprise applications.

Figure 1. Relational Open-Source DBMS Maturity Evaluation, 2009 Source: Gartner (April 2015)

Figure 2. Relational Open-Source DBMS Maturity Evaluation, 2015 Source: Gartner (April 2015)


We must run on Solaris. Nothing beats the reliability of Solaris. We will lose customers if we move off Solaris. I could not sleep at night if we moved off Solaris. We cannot run our business on Open Source Linux. We have invested too much in Solaris to move now. I built my career & this organization on Solaris!

Notable Quotes:

How many people recall the same reluctance paying premiums for Solaris (UNIX)?

LANDMARK MOMENTS . . .

You have done this before! And it takes Leadership.

5 © Copyright EnterpriseDB Corporation, 2015. All rights reserved.

•  Commercial Relational Database is 35yrs old. •  Management skill sets and operational staff are ubiquitous

•  Standards, best practices, and automation have reached their highest levels, rates of change are consistent with commodity products.

•  But pricing in the market continues to increase.

•  Artificial barriers like vendor lock-in and ULA’s reinforce a lop-sided balance of power, protecting prices.

THE NEED FOR A GAME CHANGER IN OPERATIONAL DB


MORE IMPORTANT : Global competition demands investment in progressive technologies that strengthen brand & usability, avoiding the risk of displacement by new players in the market!

RELATIVE COST MOVEMENT FOR IT STACK COMPONENTS


“Inventory the organization’s in-house developed applications and evaluate the less critical and less risky applications for conversion.”

“Begin to replace the RDBMS platform . . . with a Relational OSDBMS.”

Recommendations

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April 2015 ID Number G00273643 GARTNER IMPACT APPRAISAL


Web apps & Mobile

Custom apps

ISV apps

Oracle, SAP, MS Prop. apps

APPS INVENTORY: DATABASE APPLICATIONS BY COMPLEXITY


CHANGING THE GAME ON ULAS

OBJECTION:


THE PATTERN OVER THE LAST 10 YEARS

Paying $4-6 Million for a 3 Year Term ULA Extract larger discounts by committing to larger growth in license volume The payment is sunk cost -- Use Oracle everywhere possible to get the ROI. All licenses are rolled under a common CSI (recurring support), and there is no going back

RESPONSES: STOP TRADING GROWTH FOR HIGHER DISCOUNTS

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– Oracle will play this game all day long

First it gets Oracle licenses into apps where they are not needed Second it contractually builds the CSI recurring revenue stream

CHANGING THE GAME ON ULAS


RESPONSES: STOP TRADING GROWTH FOR HIGHER DISCOUNTS

Stop the ULA, negotiate for lower growth rates, or move to an ELA. Now you have the option Construct a 3 year database migration plan Migrate Custom Apps to an OS RDBMS (EDB) Re-Provision those Oracle licenses to Apps of Record (ERP, CRM, etc.) You might see higher prices, but in parallel you drop license volume

Target low to zero growth in purchased licenses for Apps of Record (ERP, CRM, etc.) This creates room to re-provision licenses migrated from Custom Apps Manage the common CSI by planning in advance for re-provisioning to Apps of Record (ERP, CRM, etc.)

Oracle utilizes the ULA as a hedge Oracle customers need a hedge as well---

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COMPARATIVE DB PRICING SLIDE

COST PER CORE CALCULATION


$5Bil company – Straw Man •  100 - 150 total applications inventory •  60 - 90 Apps are Custom Apps •  40 - 60 Apps are based on Oracle

Custom application footprint

•  2 dual socket, quad core servers •  16 cores •  16 cores/app x ~ 50apps = 800 cores

EXAMPLE: INVENTORY APPS BASED ON ORACLE


Migration Apps: Middle Tier Inventory 50 apps x 16 cores = 800 cores

50% are the initial target (sweet spot)

APPLICATION MIGRATION PROCESS


Pool 50% 30% 20%

Days/App 20 Days 40 Days 60 Days

# of apps 25 Apps 15 Apps 10 Apps

# of cores 400 Cores 240 Cores 160 Cores

Net Savings $3.7 Million $2.0 Million $1.2 Million

3 yr (Net) ROI 140% 109% 84%

800 CORES

FREE CASH FLOW MODEL – RE-PROVISIONING LICENSES

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

1 2 3 4 5 6

$1,227,000

$1,884,000 $2,269,000

$1,041,000

$384,000

$0

1 2 3 4 5 6 Support $136,000 $218,000 $272,000 $272,000 $272,000 $272,000

License $1,227,000 $1,884,000 $2,269,000 $1,041,000 $384,000 $0

Free Cash Flow Model: Re-‐Provisioning Licenses

Support

License

Migration Plan: 50 Applications migrated over 3 years Year 1 – 50% of cores, 500 person days labor, Re-Provision 33% per year Year 2 – 30% of cores, 600 person days labor, Re-Provision 33% per year Year 3 – 20% of cores, 600 person days labor, Re-Provision 33% per year


CONVERSION ROI ANALYSIS _ 50% SWEET SPOT


WHAT IS IT GOING TO TAKE?

THE ENTERPRISE CUSTOMER KNOWS THE PROBLEM Paying way too much for Database Software Runaway Recurring Maintenance Fees

THE TERRIBLE TOO’S

Too hard to fix, Too big, Too much risk Too much resistance

THE GAME HAS CHANGED – SUBSTANTIALLY Massive reduction in risk-- IT can get it done. Automation. Minimal code changes. Effect change over time (3 years) with Best Practices EDB has legitimized Open Source RDBMS

TIME FOR CFO’S TO LEAD . . .


Thank you for your time! Here are two important Gartner reports that we will share with you

•  2014 Magic Quadrant for Operational Database

Management Systems •  EnterpriseDB is in the Leader Quadrant with Oracle, IBM, MicrosoF and SAP

•  April 21, 2015 - The State of Open Source RDBMS •  This report recommends to decision makers to add an open source relaLonal database

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