v proposition for ibm eserver p5 · opportunities will be far-reaching. technological change...

September 2004

International Technology Group4546 El Camino Real, Suite 230

Los Altos, California 94022-1069Telephone: (650) 949-8410Facsimile: (650) 949-8415Email: [email protected]

ITG

MANAGEMENT BRIEF

VALUE PROPOSITION FOR IBM eSERVER p5Cost/Benefit Case for POWER5 Micro-Partitioning

Copyright © 2004 by the International Technology Group. All rights reserved. Material, in whole or part, contained in thisdocument may not be reproduced or distributed by any means or in any form, including original, without the prior writtenpermission of the International Technology Group (ITG). Information has been obtained from sources assumed to be reliableand 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 notnecessarily reflect the positions of such vendors on the issues addressed in this document. Material contained and conclusionspresented in this document are subject to change without notice. All warranties as to the accuracy, completeness or adequacyof such material are disclaimed. There shall be no liability for errors, omissions or inadequacies in the material contained in thisdocument or for interpretations thereof. Trademarks included in this document are the property of their respective owners.

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TABLE OF CONTENTSEXECUTIVE SUMMARY 1

SUMMARY OF RESULTS 2Basis of Calculations 2Cost Picture 5

ERP Installations 5WebSphere Installations 6

Micro-Partitioning Implications 7Cost Impact 7Real Time Enablement 8

DETAILED DATA 11SAP Installations 11

Manufacturing Company 11Energy Company 15Transportation Company 18

PeopleSoft Installations 22Financial Services Company 22Business Services Company 26Technology Company 29

Oracle Installations 32Process Company 32Retail Company 36Healthcare Company 40

WebSphere Installations 42Insurance Company 42Telecommunications Company 46Distribution Company 48

METHODOLOGY 50Profiles 50Configuration Sizing 50Cost Calculations 51

Server Costs 51Database Costs 51

List of Figures1. ERP Installation Profiles Summary 32. Application Abbreviations 33. ERP Installation Cost Variations: eServer p5 and Integrity Configurations 54. ERP Installation Cost Variations: eServer p5 and Sun Fire Configurations 65. WebSphere Installation Cost Variations 66. Examples of ERP Workload Breakdowns 77. SAP Manufacturing Company: Configuration and Cost Comparisons 118. SAP Manufacturing Company: eServer p5 Configuration 129. SAP Manufacturing Company: Integrity Configuration 1310. SAP Manufacturing Company: Sun Fire Configuration 1411. SAP Energy Company: Configuration and Cost Comparisons 1512. SAP Energy Company: eServer p5 Configuration 1613. SAP Energy Company: Integrity Configuration 16

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14. SAP Energy Company: Sun Fire Configuration 1715. SAP Transportation Company: Configuration and Cost Comparisons 1816. SAP Transportation Company: eServer p5 Configuration 1917. SAP Transportation Company: Integrity Configuration 2018. SAP Transportation Company: Sun Fire Configuration 2119. PeopleSoft Financial Services Company: Configuration and Cost Comparisons 2220. PeopleSoft Financial Services Company: eServer p5 Configuration 2321. PeopleSoft Financial Services Company: Integrity Configuration 2422. PeopleSoft Financial Services Company: Sun Fire Configuration 2523. PeopleSoft Business Services Company: Configuration and Cost Comparisons 2624. PeopleSoft Business Services Company: eServer p5 Configuration 2725. PeopleSoft Business Services Company: Integrity Configuration 2726. PeopleSoft Business Services Company: Sun Fire Configuration 2827. PeopleSoft Technology Company: Configuration and Cost Comparisons 2928. PeopleSoft Technology Company: eServer p5 Configuration 3029. PeopleSoft Technology Company: Integrity Configuration 3030. PeopleSoft Technology Company: Sun Fire Configuration 3131. Oracle Process Company: Configuration and Cost Comparisons 3232. Oracle Process Company: eServer p5 Configuration 3333. Oracle Process Company: Integrity Configuration 3434. Oracle Process Company: Sun Configuration 3535. Oracle Retail Company: Configuration and Cost Comparisons 3636. Oracle Retail Company: eServer p5 Configuration 3737. Oracle Retail Company: Integrity Configuration 3838. Oracle Retail Company: Sun Fire Configuration 3939. Oracle Healthcare Company: Configuration and Cost Comparisons 4040. Oracle Healthcare Company: eServer p5 Configuration 4141. Oracle Healthcare Company: Integrity Configuration 4142. Oracle Healthcare Company: Sun Fire Configuration 4143. WebSphere Insurance Company: Configuration and Cost Comparisons 4244. WebSphere Insurance Company: eServer p5 Configuration 4345. WebSphere Insurance Company: Integrity Configuration 4446. WebSphere Insurance Company: Sun Fire Configuration 4547. WebSphere Telecommunications Company: Configuration and Cost Comparisons 4648. WebSphere Telecommunications Company: eServer p5 Configuration 4749. WebSphere Telecommunications Company: Integrity Configuration 4750. WebSphere Telecommunications Company: Sun Fire Configuration 4751. WebSphere Distribution Company: Configuration and Cost Comparisons 4852. WebSphere Distribution Company: eServer p5 Configuration 4953. WebSphere Distribution Company: Integrity Configuration 4954. WebSphere Distribution Company: Sun Fire Configuration 49

International Technology Group 1

EXECUTIVE SUMMARYA fundamental shift is occurring. New processors, and techniques such as simultaneous multi-threading (SMT) and virtualization are impacting performance and capacity utilization. Advances inmultiprocessor architecture, system management and provisioning define new opportunities toimprove IT efficiency.

Each of these technologies is significant. But their combined impact is cumulative. The potentialemerges to achieve non-incremental gains in IT cost-effectiveness across the entire enterprise ITinfrastructure.

This document deals with one aspect of this shift: the potential of new technologies to reduce thecosts of servers supporting business-critical applications. Specifically, it compares IT costs for the useof latest-generation IBM, Hewlett-Packard (HP) and Sun Microsystems (Sun) UNIX servers tosupport 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 WebSphere-based systems.

Results for these installations may be summarized as follows:

1. Server costs. Three-year hardware, systems software, maintenance and software support costsfor IBM eServer p5 servers are projected to be significantly lower than for equivalent HPmx2-based and Sun UltraSPARC IV-based platforms.

In SAP installations, eServer p5 server costs are projected to average 58.3 percent less thanequivalent HP and 75.4 percent less than equivalent Sun platforms. In PeopleSoftinstallations, the comparable figures are 54.4 percent and 70.7 percent less, and in OracleERP installations, 50.8 percent and 57.9 percent less than for HP and Sun respectively.

In installations employing customized systems built around WebSphere middleware andapplications, three-year eServer p5 server costs are projected to average 58.5 percent less thanequivalent HP, and 72.2 percent less than equivalent Sun configurations.

2. Database costs. Three-year license, update and support costs for database software also showsignificant variations.

Costs of Oracle on eServer p5 servers are projected to average 49.0 percent less than on HPand Sun servers for SAP systems; 51.3 percent less for PeopleSoft systems; 37.2 percent lessfor Oracle systems; and 38.5 percent less for WebSphere-based systems. The picture issimilar for IBM DB2 costs.

IT costs are, however, only part of the picture. Critical synergies are emerging between newtechnology 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-Partitioningcapabilities in particular.

Opportunities will be far-reaching. Technological change creates the potential not only to realizebreakthrough gains in IT cost-effectiveness, but also to realize a broader transformation of theprocesses through which IT delivers material business advantage.


SUMMARY OF RESULTS

Basis of CalculationsTechniques such as total cost of ownership (TCO) have become widely used in the IT world. Properlyused, they may provide useful insight into IT cost structures, and into the cost implications oftechnology choices. The effectiveness of any cost measurement exercise, however, depends heavilyon 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 followingapproach was adopted:

• Composite profiles. Data on application suites, workloads, databases, server configurations,service levels, capacity utilization and other subjects was collected from 42 companiesemploying SAP, PeopleSoft and Oracle ERP systems, and from 13 companies employingWebSphere-based systems.

Using this data, composite profiles of nine ERP and three WebSphere-based installationswere constructed. A “best practices” approach was employed; e.g., the experience of one userwith multiple SAP R/3 systems was combined with the experience of another in SAP datawarehouse deployment, and a third in consolidation of SAP non-production instances.

ERP installation profiles are summarized in figure 1. WebSphere-based profiles are aninsurance company with approximately $20 billion in assets, employing customized corebusiness systems, a data warehouse and e-commerce systems; a telecommunications companywith approximately $5 billion in revenues employing a mix of CRM, operational and businessintelligence systems; and an industrial distributor with approximately $2.5 billion in revenuesemploying WebSphere Commerce Suite.

For each composite profile, server and database configurations were determined. Three-yearhardware, hardware, systems software, maintenance and software support costs were thenprojected for these. Certain assumptions were made about configurations, performance andvendor pricing for HP, IBM, Sun and Oracle platforms employed in these calculations. Theseassumptions are detailed in the Methodology section of this report.

Further information on profile installations, including configuration diagrams and costbreakdowns, may be found in the Detailed Data section. Additional detail on techniques usedto construct profiles may be found in the Methodology section.

Although profiles are based on actual user installations, they may not correspond to theapplications, workloads, server configurations employed by, or the costs experienced by anyindividual organization.

• System-level performance. Hardware acquisition, maintenance and systems software costsare materially affected by configuration sizes. This is also the case for databases and othersoftware 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 relyupon benchmarks that primarily measure CPU-level performance.


Figure 1ERP Installation Profiles Summary

SAP ERPCompany A B CIndustry Manufacturing Energy TransportationRevenues $5 billion $10 billion $2 billionApplications AP, AR, CO, GL, HR,

MM, PP, PS, SDAPO

AM, AP, AR, CO, GL,HR, PYMM, PM, PP, PS, SD

AM, AP, AR, CO, GL,PP, PS, SDBW, CRM

Number of Users 5,000 3,000 1,000

PEOPLESOFT ERPCompany D E FIndustry Financial Services Business Services TechnologyRevenues $20 billion $5 billion $2 billionApplications AM, AP, AR, BD, GL,

IM, PC, PJHR, BA, PY

AM, AP, AR, BI, GL,HR, BA, TL, PYEPM, EP, HRSS

MK, SL, SP, CT

Number of Users 1,700 1,200 2,000

ORACLE ERPCompany G H IIndustry Process Retail HealthcareRevenues $10 billion $20 billion $2 billionApplications AM, AP, AR, GC, GL,

OM, PMF, PR, PJCRM, DW, PLM

AP, GL, HR, PYLO, ME, PC, PJIP, IS, Portal

AM, AP, AR, GL, IMHR, AB, TA, TL, PYGrants, HRSS

Number of Users 2,000 1,500 500

Figure 2Application Abbreviations

AB: Advanced BenefitsAM: Asset ManagementAP: Accounts PayableAPO: Advanced Planning & OptimizationAR: Accounts ReceivableBA: Benefits AdministrationBD: BudgetsBI: BillingBW: Business Information WarehouseCO: ControllingCRM: Customer Relationship ManagementCT: CTI IntegrationDW: Data WarehouseEP: eProcurementEPM: Enterprise Performance ManagementGC: Global ConsolidationGL: General LedgerHR: Human ResourcesHRSS: HR Self-serviceIM: Inventory ManagementIP: iProcurement

IS: iStoreLO: LogisticsME: Merchandise ManagementMK: MarketingMM: Materials ManagementOM: Order ManagementPC: PurchasingPJ: ProjectsPM: Plant MaintenancePLM: Product Lifecycle ManagementPMF: Process ManufacturingPP: Production Planning & ControlPR: ProcurementPS: Project SystemPY: PayrollSD: Sales & DistributionSL: SalesSP: SupportTA: Training AdministrationTL: Time & Labor


In the early history of computing, central processing units effectively determined performance.But system architectures have become more sophisticated. The number of variables affectingactual performance has increased, and the effectiveness of overall architecture design andimplementation 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 aresignificant variations in design principles, technology content, and implementation andmanufacturing techniques that materially affect overall performance. Configuration sizing forthese 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 theefficiency with which it is used. A server that is underutilized, or poorly utilized, has asignificant 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, dynamicallocation of system resources to meet changing application requirements, virtualizationtechniques can significantly increase overall capacity utilization. This is particularly the casefor 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 creationof virtual system images as small as 0.1 CPU. HP has a similar, albeit less granular VirtualPartition (vPar) technology. vPar capability is, however, supported only for HP PA RISC-based servers, not for the company’s strategic Itanium-based Integrity platform.

Sun does not offer a comparable capability, although the company has described plans forvirtualization technology in its forthcoming Version 10 of the Solaris operating system.

For this reason, comparisons are based on overall system environments, including businessintelligence and Web-based as well as transaction-processing systems, and development, test,staging and other non-production as well as production systems. eServer p5 configurationsallow for the effects of Micro-Partitioning on overall capacity requirements.

Comparisons include eServer p5 models with IBM POWER5 dual-core 1.65 GHz CPUs; IntegritySuperdome, rx8620, rx7620 and rx4640 models with HP mx2 processor units, which consist of two1.1 GHz Itanium2 CPUs; and Sun Fire E2900, E4900 and E6900 models with Sun UltraSPARC IVprocessor 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 theirlatest-generation CPUs for one- and two-way configurations. Integrity 2600 models with 1.5 GHzIntel Itanium2 technology, and 280R models with the uniprocessor version of the 1.2 GHzUltraSPARC III CPU are thus employed in HP and Sun configurations respectively.

Clustered configurations employ IBM High Availability Clustered Multiprocessing (HACMP), HPServiceguard and Sun Cluster facilities.


Cost Picture

ERP Installations

Comparisons of three-year costs of eServer p5 and Integrity configurations in the composite ERPinstallations described in this report may be summarized as follows:

• Server costs. Combined three-year costs for hardware acquisition, maintenance and systemssoftware for Integrity configurations are in all cases projected to be significantly higher thanthose 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 andsupport are calculated for Oracle 10G and DB2 Version 8 for all configurations. Oracle RealApplication 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 thanthe 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. Incertain cases, disparities reflect use of DB2 Workgroup Server rather than the more expensiveDB2 Enterprise Server, which is positioned in the same manner as Oracle Enterprise Edition.

Cost variations are summarized in figure 3.

Figure 3ERP Installation Cost Variations: eServer p5 and Integrity Configurations*

SAPINSTALLATIONS

PEOPLESOFTINSTALLATIONS

ORACLEINSTALLATIONS

Range Average Range Average Range AverageeServer p5 server costs as% Integrity server costs 38.0 – 44.5 41.7 41.0 – 51.5 45.6 35.4 – 52.5 49.2

eServer p5 Oracle costs as% Integrity Oracle costs 42.3 – 60.3 51.0 20.6 – 61.9 48.7 34.1 – 71.0 62.8

eServer p5 DB2 costs as% Integrity DB2 costs 42.3 – 61.0 51.9 13.3 – 63.7 45.5 N/A N/A

* Results are specific to installations shown in Detailed Data section. See Methodology section for assumptionsemployed in calculations.

Disparities in projected server costs between eServer p5 and Sun Fire configurations are generallylarger than for eServer p5 and Integrity servers. In six out of nine installations, projected eServer p5server costs are less than a third of those for Sun Fire equivalents, and in the remainder they are lessthan half. Disparities in projected database costs show more variation. These variations aresummarized in figure 4.


Figure 4ERP Installation Cost Variations: eServer p5 and Sun Fire Configurations*

SAPINSTALLATIONS

PEOPLESOFTINSTALLATIONS

ORACLEINSTALLATIONS

Range Average Range Average Range AverageeServer p5 server costs as% Sun Fire server costs 21.5 – 30.8 24.6 26.4 – 34.0 29.3 28.4 – 46.1 42.1

eServer p5 Oracle costs as% Sun Fire Oracle costs 42.3 – 60.3 51.0 20.6 – 61.9 48.7 34.1 – 71.0 62.8

eServer p5 DB2 costs as% Sun Fire DB2 costs 42.3 – 61.0 51.9 13.3 – 63.7 45.5 N/A N/A

* Results are specific to installations shown in Detailed Data section. See Methodology section for assumptionsemployed in calculations.

Higher projected Sun Fire server costs compared to Integrity platforms are magnified because Sun hasnot to date offered UltraSPARC IV-based versions of its entry-level V440 and V880 servers, whichmay 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 arerequired) E4900 are thus employed. These correspond to the earlier Sun V1280 and 4800, which aremore 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 5WebSphere Installation Cost Variations*

INTEGRITY COMPARISON Range Average SUN FIRE COMPARISON Range Average

eServer p5 server costs as% Integrity server costs 37.5 – 57.6 41.5 eServer p5 server costs

as % Sun Fire server costs 24.9 – 36.7 27.8

eServer p5 Oracle costs as% Integrity Oracle costs 59.4 – 80.3 61.5 eServer p5 Oracle costs

as % Sun Fire Oracle costs 59.4 – 80.3 61.5

eServer p5 DB2 costs as% Integrity DB2 costs 58.3 – 80.4 59.5 eServer p5 DB2 costs as

% Sun Fire DB2 costs 58.3 – 80.4 59.5

• Results are specific to installations shown in Detailed Data section. See Methodology section for assumptionsemployed in calculations.

Disparities in projected server costs between eServer p5 and Sun Fire configurations are again largerthan for eServer p5 and Integrity servers. In two installations, projected eServer p5 server costs areless than a third of those for Sun Fire equivalents, and in the third they are less than half.


Micro-Partitioning Implications

Cost Impact

Although higher levels of system-level performance also played a major role, the Micro-Partitioningtechnology employed in eServer p5 servers contributed significantly to projected lower server anddatabase 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, MicroPartitions (MPs) enable higher levels of capacity utilization than could be achieved with dedicatedservers or physical partitioning techniques. The effects are particularly significant in the followingareas:

• Mixed workloads. ERP as well as WebSphere systems typically involve mixes of onlinetransaction processing, batch and other types of workload. This is particularly the case whencompanies employ diverse suites incorporating supply chain management (SCM), financial,human resources (HR) as well as core ERP functions. Figure 6 shows examples.

Figure 6Examples of ERP Workload Breakdowns

Overall processing efficiency depends on how well capacity can be allocated and re-allocatedto handle such mixes. Physical partitioning techniques such as IBM logical partitions(LPARs), HP nPartitions (nPars) and Sun Dynamic System Domains (DSDs) can, to someextent, be used to manage these processes. Micro-Partitioning, however, enables greaterflexibility and granularity of changes on a continuous basis.

• Multiple production systems. Where multiple production instances are employed, there maybe significant variations in workload distribution between these over time.

In the SAP Manufacturing Company installation, for example, separate R/3 instances for thecompany’s North American and European operations are located on the same physicalservers. Peak activity between these varies because of differences in time zones. Using acombination of physical and logical partitions, capacity may be more efficiently utilized overa 24-hour period than if dedicated servers were employed.

SAP R/3 USERPEOPLESOFT USER

OnlineSCM/ERP

40%

Batch21%

OnlineFinancial

27%

OnlineHR12%

Spooling3%

Messaging& Enqueue

4%

Dialog53%

Update15%Batch

25%


• Operational and business intelligence systems. The SAP Transportation, PeopleSoftBusiness Services and Oracle Process companies, along with all three WebSphere users,employ data warehouses, data marts and equivalents that exploit data generated byoperational systems.

In most organizations, normal practice has been to deploy business intelligence systems onseparate dedicated servers. More effective overall capacity utilization can, however, beachieved by deploying these on the same servers, or within the same complex of clusteredservers using Micro-Partitioning to manage capacity allocation on an ongoing basis.

• Non-production instances. In all installations, companies operate various non-productioninstances for such applications as development, test, sandbox, quality assurance, staging andeducation. These have in the past often been deployed on dedicated servers. Dedicatedcapacity for such instances is unused or underutilized for much of the time.

Micro-Partitioning enables more efficient overall server utilization by allocating capacity tosuch systems on an “as needed” basis. The ability to work with sub-CPU capacity incrementsis also useful, particularly for smaller instances.

• Other applications. These include extract, transformation and load (ETL), backup and systemmanagement facilities. Usage patterns for these are again “bursty”; i.e. capacity is oftenunderutilized. Micro-Partitioning techniques offer a useful alternative to dedicated servers orphysical partitions.

Like other virtualization technologies, MPs generate system overhead, which increases in proportionto the number of MPs running on a single physical platform. Allowance was made for this effect inconfiguration sizing, using assumptions detailed in the Methodology section of this report.

In most cases, however, system overhead was more than compensated for by improved capacityutilization. If, for example, the use of five MPs on a single server generated system overhead of 25percent but enabled the company to realize savings of 40 percent in capacity compared to use ofmultiple dedicated servers, the net cost impact was positive.

Concerns that virtualization would increase vulnerability to outages, because multiple systems wereconcentrated on single physical servers, also appear to be exaggerated. Experiences with physicalpartitions indicate that concentration risks can be addressed through effective use of clustered failovertechniques, 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 inthe enablement of real-time operations.

Real Time Enablement

The ability to operate in “real time” is increasingly emerging as a critical competitive issue amongusers 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 operationalenvironments. Reduced order-to-delivery and procurement cycles reduce manufacturing, logistics andinventory costs. Real-time inventory visibility enables more effective order promising. Continuousgeneration of forecasts enables better planning, capacity optimization and cost control.


The focus of real-time strategies is now expanding beyond operational to higher value-addedprocesses such as decision-making and customer interaction. Among the companies that form thebasis of profiles, the following examples may be cited:

• SAP Manufacturing Company realized major gains in operational efficiency through earlierdeployment 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 supplychain optimization techniques using SAP Advanced Planning and Optimization (APO).

Effective use of APO requires that operational information be extracted from core productionsystems and distributed on a 24x7 basis to hundreds of decision makers worldwide. Thecompany’s SAP Business Information Warehouse (BW) has also moved to real-timeoperations for purchasing and inventory data, enabling the company’s global business units tobetter coordinate procurement initiatives.

• PeopleSoft Financial Services Company has established real-time database feeds betweencore financial systems and its PeopleSoft Enterprise Performance Management (EPM)environment. EPM is a sophisticated business intelligence system that collects, collates andinterprets critical financial data for management reporting and decision support applications.

As a result, the company is able to provide managers with continuously updated keyperformance indicator (KPI) reports. Users can also “drill-down” into data marts of currentinformation on a wide range of topics. These and other real-time capabilities have improvedthe speed and quality of decision-making throughout the company, and have enabled tocompany to accelerate planning, forecasting, budgeting and reporting cycles.

• Oracle Retail Company has launched multiple real-time initiatives. The company’s salesinformation is updated and transferred to replenishment and logistics systems on an ongoingbasis. Significant bottom-line improvements in costs and operational flexibility in these areashave been realized, and stock-outs have been largely eliminated.

The role of the company’s data warehouse has also expanded. The system had previouslybeen employed only for analytical purposes, and processing jobs were executed on a weeklyor monthly basis. It is now updated continuously with feeds from the company’s coresystems. Data is downloaded nightly to stores, where managers may view analyses of theprevious day’s sales results and make procurement and merchandising decisions accordingly.

• WebSphere Telecommunications Company has put in place mechanisms that transfer callrecords to its usage data warehouse and CRM systems in real time. Network optimization isimproved. Call center agents can deal with customer queries about recent calls, withoutwaiting 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 thatenables its customers to view inventory availability in real time, and to place orders and trackdelivery status on a 24x7 basis via the Internet. Risks that products will not be available, orwill not be delivered in time are minimized.

Other such examples might be cited. In varying degrees, all of the profile companies employ andbenefit from real-time applications, and, like many counterparts in a wide range of industries, plan toincrease use of these.

There are a number of prerequisites for real-time competitiveness. It may be necessary to removebottlenecks and delays in informational processes through reengineering, replacement of legacyapplications, or both.


There are also important implications for underlying IT infrastructures. For example, real-timeenvironments commonly result in the end of traditional batch cycles, and the substitution ofconcurrent online and batch processing. Movement of data between operational and businessintelligence systems may, similarly, become continuous. It may be necessary to execute ETL inparallel with operational processes, rather than during off-peak periods.

Real-time issues, as well as recoverability concerns and shrinking batch windows, are also changingbackup cycles. Backups that once occurred nightly or weekly are now, increasingly, being performedat multiple times during the day, or on an ongoing basis.

Real-time competitiveness thus means that companies must, to a much greater extent than inconventional environments, execute workloads concurrently rather than sequentially. Challenges aremagnified when – as is the case for ERP, e-commerce and other business-critical applications that arethe 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 tomaintain concurrent operations and contain risks of outages due to overloading; i.e. companiesadopting real-time competitive models should expect major increases in configuration sizes andcorresponding server and database costs.

Even if users were prepared to accept significant cost increases because of over configuration, thereare other potential drawbacks to this approach. The latencies generated by high-volume intra- andinter-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 processorcapacity, I/O and other system-level resources to be allocated, reallocated, monitored and managed ina highly granular manner, in real time.

The Micro-Partitioning capabilities implemented in eServer p5 servers, the workload managementfacilities that support them, and provision for high-speed partition-to-partition communications in theunderlying hardware platform and AIX environment clearly meet these requirements.


DETAILED DATA

SAP InstallationsManufacturing Company

Configuration and cost comparisons are summarized in figure 7, and detailed configurations areshown in figures 8, 9 and 10.

Figure 7SAP Manufacturing Company: Configuration and Cost Comparisons*

IBM Hewlett-Packard Sun MicrosystemsCONFIGURATIONDatabase Servers

2 x eServer p5-57016 x 1.65 GHzOracle RAC, DB2HACMP

2 x rx862028 x mx2Oracle RAC, DB2Serviceguard

rx46402 x (8 x mx2)2 x (4 x mx2)rx26002 x (2 x 1.5 GHz)5 x (1 x 1.5 GHz)Oracle, DB2

rx46404 x mx2

2 x E2000028 x 1.2 GHzOracle RAC, DB2Sun Cluster

E29002 x (8 x 1.2 GHz)2 x (4 x 1.2 GHz)280R2 x (2 x 1.2 GHz)5 x (1 x 1.2 GHz)Oracle, DB2

E29004 x 1.2 GHz

Application ServersProduction 13 x eServer p5-550

4 x 1.65 GHz4 x eServer p5-5202 x 1.65 GHz

17 x rx46404 x mx28 x rx26002 x 1.5 GHz

17 x E29004 x 1.2 GHz8 x 280R2 x 1.2 GHz

Non-production 6 x eServer p5-5504 x 1.65 GHz

rx46401 x (8 x mx2)5 x (4 x mx2)rx26002 x (2 x 1.5 GHz)7 x (1 x 1.5 GHz)

E29001 x (8 x 1.2 GHz)5 x (4 x 1.2 GHz)280R2 x (2 x 1.2 GHz)7 x (1 x 1.2 GHz)

SERVER COST ($000)Hardware 773 2,199 4,395Maintenance 179 331 1,214Systems software 219 220 220Software support 111 132 132Total 1,282 2,882 5,961ORACLE COST ($000)Licenses 1,478 3,072 3,072Updates & support 976 2,028 2,028Total 2,454 5,100 5,100DB2 COST ($000)Licenses 594 1,212 1,212Updates & support 445 909 909Total 1,039 2,121 2,121

*See Methodology section for assumptions employed in these calculations.


Figure 8SAP Manufacturing Company: eServer p5 Configuration*

* See Methodology section for assumptions employed in constructing this configuration.

DATABASE SERVERS

eServer p5-570 – 16 x 1.65 GHz eServer p5-570 – 16 x 1.65 GHz

#2 Non-production77 CPUs – 12 MPs

#1 Non-production10 CPUs – 8 MPs

#1 Non-production1 CPU

Archiving – 1 CPU

APPLICATION SERVERS

Production13 x eServer p5-550 – 4 x 1.65 GHz4 x eServer p5-520 – 2 x 1.65 GHz

Non-production4 x eServer p5-550 – 4 x 1.65 GHzeServer p5-550 – 4 x 1.65 GHz – 8 MPseServer p5-550 – 4 x 1.65 GHz – 2 MPs

#1 R/3 Central Instance(Database & Application Server)

Production – 8 CPUs

APO #1 Production1 CPU

#2 R/3 #1 Database ServerProduction – 4 CPUs

#2 R/3 Central System& APO Production

1 CPU – 2 MPs

Primary SystemsLPARSFailover


Figure 9SAP Manufacturing Company: Integrity Configuration*


DATABASE SERVERS

rx8620 – 28 x mx2 rx8620 – 28 x mx2

APO #1 Production4 CPUs

#1 Non-production4 CPUs

#2 Non-production12 CPUs – 2 nPars



APPLICATION SERVERS






Primary SystemsDSDsFailover

#1 Non-production2 x rx4640 – 8 x mx2rx4640 – 4 x mx22 x rx2600 – 2 x 1.5 GHz2 x rx2600 – 1 x 1.5 GHz

Archiving/Developmentrx4640 – 4 x mx2#2 Non-productionrx4640 – 4 x mx23 x rx2600 – 1 x 1.5 GHz

Production17 x rx4640 – 4 x mx28 x rx2600 – 2 x 1.5 GHz

Non-productionrx4640– 8 x mx25 x rx4640 – 4 x mx22 x rx2600 – 2 x 1.5 GHz7 x rx2600 – 1 x 1.5 GHz


Figure 10SAP Manufacturing Company: Sun Fire Configuration*


DATABASE SERVERS

E20000 – 28 x 1.2 GHz E20000 – 28 x 1.2 GHz



#2 Non-production12 CPUs – 2DSDs



APPLICATION SERVERS






Primary SystemsDSDsFailover

#1 Non-production2 x E2900 – 8 x 1.2 GHzE2900 – 4 x 1.2 GHz2 x 280R – 2 x 1.2 GHz2 x 280R – 1 x 1.2 GHz

Archiving/DevelopmentE2900 – 4 x 1.2 GHz#2 Non-productionE2900 – 4 x 1.2 GHz3 x 280R – 1 x 1.2 GHz

Production17 x E2900 – 4 x 1.2 GHzE2900 – 4 x 1.2 GHz8 x 280R – 2 x 1.2 GHz

Non-productionE2900 – 8 x 1.2 GHz5 x E2900 – 4 x 1.2 GHz2 x 280R – 2 x 1.2 GHz7 x 280R – 1 x 1.2 GHz


Energy Company


Figure 11SAP Energy Company: Configuration and Cost Comparisons*




2 x rx46404 x mx2Oracle, DB2

rx26002 x 1.5 GHz


2 x E29004 x 1.2 GHzOracle, DB2

280R2 x 1.2 GHz


4 x 1.65 GHz12 x rx46404 x mx2rx26002 x 1.5 GHzrx26001 x 1.5 GHz

12 x E29004 x 1.2 GHz280R2 x 1.2 GHz280R1 x 1.2 GHz

Non-production 2 x eServer p5-5708 x 1.65 GHz

rx762012 x mx2rx46408 x mx2rx46404 x mx22 x rx26001 x 1.5 GHz

E290012 x 1.2 GHzE29008 x 1.2 GHzE29004 x 1.2 GHz2 x 280R1 x 1.2 GHz

SERVER COST ($000)Hardware 512 1,215 1,799Maintenance 106 361 468Systems software 62 175 53Software support 26 105 32Total 706 1,856 2,352ORACLE COST ($000)Licenses 739 1,226 1,226Updates & support 488 809 809Total 1,227 2,035 2,035DB2 COST ($000)Licenses 297 487 487Updates & support 223 365 365Total 520 852 852



Figure 12SAP Energy Company: eServer p5 Configuration*


Figure 13SAP Energy Company: Integrity Configuration*


DATABASE SERVERS

eServer p5-570 – 8 x 1.65 GHz eServer p5-570 – 8 x 1.65 GHz

APPLICATION SERVERS

ProductioneServer p5-550 – 4 x 1.65 GHz – 3 MPs(Application, System Management &EDI Server)8 x eServer p5-550 – 4 x 1.65 GHz

Non-productioneServer p5-570 – 8 x 1.65 GHzeServer p5-570 – 8 x 1.65 GHz – 4MPs

R/3 Central Instance(Database & Application Server)

ProductionBackup Server

2 MPs

Non-production Systems

7 MPs

Failover

DATABASE SERVERS

rx7620 – 12 x mx2 rx7620 – 12 x mx2

APPLICATION SERVERS

Production12 x rx4640 – 4 x mx2rx2600 – 2 x 1.5 GHz(EDI Server)rx2600 – 1 x 1.5 GHz(System Management Server)

Non-productionrx7620 – 12 x mx2rx4640 – 8 x mx2rx4640 – 4 x mx22 x rx2600 – 1 x 1.5 GHz


Production

Failover


3 nParsrx2600 – 2 x 1.5 GHz

2 x rx4640 – 4 x mx2Backup ServerNon-production Systems


Figure 14SAP Energy Company: Sun Fire Configuration*


DATABASE SERVERS

E4900 – 12 x 1.2 GHz E4900 – 12 x 1.2 GHz

APPLICATION SERVERS

Production12 x E2900 – 4 x 1.2 GHz280R – 2 x 1.2 GHz(EDI Server)280R – 1 x 1.2 GHz(System Management Server)

Non-productionE2900 – 12 x 1.2 GHzE2900 – 8 x 1.2 GHzE2900 – 4 x 1.2 GHz2 x 280R – 1 x 1.2 GHz


Production

Failover


3 DSDs280R – 2 x 1.2 GHz

2 x E2900 – 4 x 1.2 GHzBackup ServerNon-production Systems


Transportation Company


Figure 15SAP Transportation Company: Configuration and Cost Comparisons*


2 x eServer p5-5504 x 1.65 GHzOracle, DB2HACMP

3 x rx46404 x mx2Oracle, DB2Serviceguard

2 x rx26002 x 1.5 GHz4 x rx26001 x 1.5 GHzOracle, DB2

3 x E29004 x 1.2 GHzOracle, DB2Sun Cluster

2 x 280R2 x 1.2 GHz4 x 280R1 x 1.2 GHzOracle, DB2


4 x 1.65 GHzeServer p5-5202 x 1.65 GHz

4 x rx46404 x mx23 x rx26002 x 1.5 GHz

4 x E29004 x 1.2 GHz3 x 280R2 x 1.2 GHz

Non-production eServer p5-5706 x 1.65 GHzeServer p5-5504 x 1.65 GHz

3 x rx46404 x mx22 x rx26002 x 1.5 GHz5 x rx26001 x 1.5 GHz

3 x E29004 x 1.2 GHz2 x 280R2 x 1.2 GHz5 x 280R1 x 1.2 GHz

SERVER COST ($000)Hardware 194 491 678Maintenance 49 74 179Systems software 37 114 66Software support 17 68 40Total 297 747 963ORACLE COST ($000)Licenses 118 279 279Updates & support 78 184 184Total 196 463 463DB2 COST ($000)Licenses 42 100 100Updates & support 32 75 75Total 74 175 175



Figure 16SAP Transportation Company: eServer p5 Configuration*


DATABASE SERVERS

pSeries 550 – 4 x 1.65 GHz pSeries 550 – 4 x 1.65 GHz

APPLICATION SERVERS

Production2 x pSeries 550 – 4 x 1.65 GHzpSeries 550 – 4 x 1.65 GHz – 2 MPs*pSeries 520 – 2 x 1.65 GHz

Non-productionpSeries 570 – 6 x 1.65 GHz – 3 MPspSeries 550 – 4 x 1.65 GHz – 6 MPs*

R/3 Database ServerProduction

Production SupportStaging

CRM Database ServerProduction

Failover*Clustered failover for central instance server

4 MPs

R/3 Database ServerNon-production

CRM Database ServerNon-productionBW Data Mart

ProductionDevelopment

Backup Server

9 MPs


Figure 17SAP Transportation Company: Integrity Configuration*


DATABASE SERVERS

rx4640 – 4 x mx2 rx4640 – 4 x mx2

BW Data MartProduction

Development

APPLICATION SERVERS


Production Support

Non-productionrx4640 – 4 x mx22 x rx2600 – 2 x 1.5 GHzrx2600 – 1 x 1.5 GHz

Production3 x rx4640 – 4 x mx2rx4640 – 4 x mx2*3 x rx2600 – 2 x 1.5 GHz

Non-production2 x rx4640 – 4 x mx2rx4640 – 4 x mx2*2 x rx2600 – 2 x 1.5 GHz5 x rx2600 – 1 x 1.5 GHz


rx2600 – 1 x 1.5 GHz

R/3 Database ServerStaging

rx2600 – 2 x 1.5 GHz

CRM Production DatabaseServer

rx2600 – 1 x 1.5 GHz

Backup Server


Figure 18SAP Transportation Company: Sun Fire Configuration*


DATABASE SERVERS

E2900 – 4 x 1.2 GHz E2900 – 4 x 1.2 GHz

BW Data MartProduction

Development

APPLICATION SERVERS


Production Support

Non-productionE2900 4 x 1.2 GHz280R 2 x 1.2 GHz2 x 280R 1 x 1.2 GHz

Production3 x E2900 – 4 x 1.2 GHzE2900 – 4 x 1.2 GHz*3 x 280R – 2 x 1.2 GHz

Non-production2 x E2900R – 4 x 1.2 GHzE2900 – 4 x 1.2 GHz*2 x 280R – 2 x 1.2 GHz5 x 280R – 1 x 1.2 GHz


280R – 1 x 1.2 GHz

R/3 Database ServerStaging

280R – 2 x 1.2 GHz

CRM Production DatabaseServer

280R – 1 x 1.2 GHz

Backup Server


PeopleSoft Installations

Financial Services Company


Figure 19PeopleSoft Financial Services Company: Configuration and Cost Comparisons*



eServer p5-5504 x 1.65 GHzOracle, DB2


rx762012 x mx22 x rx26002 x 1.5 GHzOracle, DB2

rx26002 x 1.5 GHz


E490012 x 1.2 GHz2 x 280R2 x 1.2 GHzOracle, DB2

280R2 x 1.2 GHz

Application & Web ServersProduction 4 x eServer p5-550


5 x rx46404 x mx26 x rx26002 x 1.5 GHz

5 x E29004 x 1.2 GHz6 x 280R2 x 1.2 GHz

Non-production eServer p5-5706 x 1.65 GHzeServer p5-5504 x 1.65 GHz

rx46408 x mx24 x mx22 x rx26002 x 1.5 GHzrx26001 x 1.5 GHz

E29008 x 1.2 GHz4 x 1.2 GHz2 x 280R2 x 1.2 GHz280R1 x 1.2 GHz

SERVER COST ($000)Hardware 482 1,270 2,134Maintenance 90 253 399Systems software 100 145 123Software support 48 87 74Total 720 1,755 2,730ORACLE COST ($000)Licenses 1,168 2,293 2,293Updates & support 771 1,514 1,514Total 1,939 3,807 3,807DB2 COST ($000)Licenses 466 986 986Updates & support 350 739 739Total 816 1,725 1,725



Figure 20PeopleSoft Financial Services Company: eServer p5 Configuration*


DATABASE SERVERS

eServer p5-570 – 12 x 1.65GHz

APPLICATION & WEB SERVERS

Production3 x eServer p5-550 – 4 x 1.65 GHz(Application Servers)eServer p5-550 – 4 x 1.65 GHz – 3 MPs(Application Server, Production ProcessScheduling & System Management Server)3 x eServer p5-520 – 2 x 1.65 GHz(Web Servers)

Non-productioneServer p5-570 – 6 x 1.65 GHz – 3 MPseServer p5-550 – 4 x 1.65 GHz – 2 MPs

Finance & HR System:Production Database &

Batch Servers

ETL Subsystem

Backup Server

Failover

6 MPs

eServer p5-570 – 12 x 1.65GHz

EPM Production &Development/Test

5 MPs

eServer p5-550 – 4 x 1.65 GHz

Finance & HR Non-production Systems

3 MPs


Figure 21PeopleSoft Financial Services Company: Integrity Configuration*


DATABASE SERVERS

rx8620 – 20 x mx2


Production5 x rx4640 – 4 x mx22 x rx2600 – 2 x 1.5 GHz(Production Process Scheduling& System Management Servers)4 x rx2600 – 2 x 1.5 GHz

Non-productionrx4640 – 8 x mx2rx4640 – 4 x mx22 x rx2600 – 2 x 1.5 GHzrx2600 – 1 x 1.5 GHz


Batch ServersETL Subsystem

Failover

2 nPars

rx8620 – 20 x mx2

EPM Production &Development

2 nPars

rx7620 – 12 x mx2


3 nPars

2 x rx2600 – 2 x 1.5 GHz

EPM Development &Test

rx2600 – 2 x 1.5 GHz

Backup Server


Figure 22PeopleSoft Financial Services Company: Sun Fire Configuration*


DATABASE SERVERS

E6900 – 20 x 1.2 GHz


Production5 x E2900 – 4 x 1.2 GHz2 x 280R – 2 x 1.2 GHz(Production Process Scheduling& System Management Servers)4 x 280R – 2 x 1.2 GHz

Non-productionE2900 – 8 x 1.2 GHzE2900 – 4 x 1.2 GHz2 x 280R – 2 x 1.2 GHz280R – 1 x 1.2 GHz


Batch ServersETL Subsystem

Failover

2 DSDs

E6900 – 20 x 1.2 GHz

EPM Production &Development

2 DSDs

E4900 – 12 x 1.2 GHz


3 DSDs

2 x 280R – 2 x 1.2 GHz

EPM Development &Test

280R – 2 x 1.2 GHz

Backup Server


Business Services Company


Figure 23PeopleSoft Business Services Company: Configuration and Cost Comparisons*




rx46404 x mx2Oracle, DB2


E29004 x 1.2 GHzOracle, DB2



6 x rx46404 x mx24 x rx26002 x 1.5 GHzrx26001 x 1.5 GHz

6 x E29004 x 1.2 GHz4 x 280R2 x 1.2 GHz280R1 x 1.2 GHz

Non-production eServer p5-5708 x 1.65 GHz

rx46408 x mx2rx26001 x 1.5 GHz

E29008 x 1.2 GHz280R1 x 1.2 GHz

SERVER COST ($000)Hardware 347 788 1,252Maintenance 84 118 223Systems software 74 79 55Software support 27 48 33Total 532 1,033 1,563ORACLE COST ($000)Licenses 515 832 832Updates & support 340 549 549Total 855 1,381 1,381DB2 COST ($000)Licenses 297 466 466Updates & support 223 350 350Total 520 816 816



Figure 24PeopleSoft Business Services Company: eServer p5 Configuration*


Figure 25PeopleSoft Business Services Company: Integrity Configuration*


DATABASE SERVERS



Production5 x eServer p5-550 – 4 x 1.65 GHz(Application Servers)eServer p5-550 – 4 x 1.65 GHz – 4 MPs(HR Self-service & eProcurement Server)3 x eServer p5-520 – 2 x 1.65 GHz(Web Servers)

Non-productioneServer p5-570 – 8 x 1.65 GHz

Finance & HR SystemProduction Database &

Batch Servers

Failover


Test & DevelopmentSystems

6 MPs

DATABASE SERVERS

rx7620 – 12 x mx2


Productionrx4640– 4 x mx2(HR Self-service Server)rx2600 – 2 x 1.5 GHz(eProcurement Server)rx2600 – 1 x 1.5 GHzSystem Management Server)5 x rx4640 – 4 x mx2(Application Servers)3 x rx2600 – 2 x 1.5 GHz(Web Servers)

Non-productionrx4640 – 8 x mx2 – 2 nParsrx2600 – 1 x 1.5 GHz


Batch Server

Failover

rx7620 – 12 x mx2

Finance & HR SystemDevelopment

2 nPars

rx4640 – 4 x mx2

Finance & HR SystemTest & Education


Figure 26PeopleSoft Business Services Company: Sun Fire Configuration*


DATABASE SERVERS

E4900 – 12 x 1.2 GHz


ProductionE2900 – 4 x 1.2 GHz(HR Self-service Server)280R – 2 x 1.2 GHz(eProcurement Server)280R – 1 x 1.2 GHzSystem Management Server)5 x E2900 – 4 x 1.2 GHz(Application Servers)3 x 280R – 2 x 1.2 GHz(Web Servers)

Non-productionE2900 – 8 x 1.2 GHz – 2 DSDs280R – 1 x 1.2 GHz


Batch Server

Failover

E4900 – 12 x 1.2 GHz

Finance & HR SystemDevelopment

2 DSDs

E2900 – 4 x 1.2 GHz

Finance & HR SystemTest & Education


Technology Company


Figure 27PeopleSoft Technology Company: Configuration and Cost Comparisons*




rx46404 x mx2Oracle

E49008 x 1.2 GHzE29008 x 1.2 GHzOracle, DB2Sun Cluster

E29004 x 1.2 GHzOracle



3 x rx46404 x mx23 x rx26002 x 1.5 GHzrx26001 x 1.5 GHz

3 x E29004 x 1.2 GHz3 x 280R2 x 1.2 GHz280R1 x 1.2 GHz

Non-production eServer p5-5708 x 1.65 GHz

rx46404 x 1.2 GHz7 x rx26002 x 1.5 GHzrx26001 x 1.5 GHz

E29004 x 1.2 GHz7 x 280R2 x 1.2 GHz280R1 x 1.2 GHz




Figure 28PeopleSoft Technology Company: eServer p5 Configuration*


Figure 29PeopleSoft Technology Company: Integrity Configuration*


DATABASE SERVERS



Production2 x eServer p5-550 – 4 x 1.65 GHz(Application Servers)eServer p5-550 – 4 x 1.65 GHz – 2 MPs(Application & System Management Server)2 x eServer p5-520 – 2 x 1.65 GHz(Web Servers)

Non-productioneServer p5-570 – 8 x 1.65 GHz – 5 MPs

Production DatabaseServers

Failover


Non-production DatabaseSystems

4 MPs

DATABASE SERVERS


Production3 x rx4640 – 4 x mx23 x rx2600 – 2 x 1.5 GHzrx2600 – 1 x 1.5 GHz(System Management Server)

Non-productionrx4640 – 4 x mx27 x rx2600 – 2 x 1.5 GHzrx2600 – 1 x 1.5 GHz

rx4640 – 8 x mx2

Production DatabaseServer

Failover

rx4640 – 8 x mx2

Database ServerDevelopment & Test

rx4640 – 4 x mx2

Database ServerStaging


Figure 30PeopleSoft Technology Company: Sun Fire Configuration*


DATABASE SERVERS


Production3 x E2900 – 4 x 1.2 GHz3 x 280R – 2 x 1.2 GHz280R – 1 x 1.2 GHz(System Management Server)

Non-productionE2900 – 4 x 1.2 GHz7 x 280R – 2 x 1.2 GHz280R – 1 x 1.2 GHz

E4900 – 8 x 1.2 GHz

Production DatabaseServer

Failover

E2900 – 8 x 1.2 GHz

Database ServerDevelopment & Test

E2900 – 4 x 1.2 GHz

Database ServerStaging


Oracle Installations

Process Company


Figure 31Oracle Process Company: Configuration and Cost Comparisons*

IBM Hewlett-Packard Sun MicrosystemsCONFIGURATIONProduction Servers

eServer p5-57016 x 1.65 GHzOracle RACHACMP

4 x eServer p5-57012 x 1.65 GHz2 x eServer p5-5706 x 1.65 GHzOracleHACMP

eServer p5-5202 x 1.65 GHzHACMP

3 x eServer p5-5201 x 1.65 GHz

rx862020 x mx2Oracle RACServiceguard

2 x rx46404 x mx2OracleServiceguard

rx762012 x mx2Oracle

rx46404 x mx2Serviceguard

5 x rx762012 x mx24 x rx26002 x 1.5 GHz

E690020 x 1.2 GHzOracle RACSun Cluster

2 x E29004 x 1.2 GHzOracleSun Cluster


E29004 x 1.2 GHzSun Cluster

5 x E290012 x 1.2 GHz4 x 280R2 x 1.2 GHz

Non-production ServerseServer p5-57016 x 1.65 GHzOracle RACHACMP


2 x rx46404 x mx2Oracle, Serviceguard

rx26002 x 1.5 GHz


2 x E29004 x 1.2 GHzOracle, Sun Cluster

280R2 x 1.2 GHz

SERVER COST ($000)Hardware 1,002 2,257 2,408Maintenance 175 407 551Systems software 204 219 163Software support 102 131 98Total 1,483 3,014 3,220ORACLE COST ($000)Licenses 1,865 2,625 2,625Updates & support 1,231 1,733 1,733Total 3,096 4,358 4,358



Figure 32Oracle Process Company: eServer p5 Configuration*


PLM & CRM Production &System Management Server


3 MPs

iProcurement/Supplier Portal


2 MPs

ERP Production Database Server


– – Failover

3 x eServer p5-520 – 1 x 1.65 GHz

ERP Production Application Servers

4 x eServer p5-570 – 12 x 1.65 GHz

3 MPs each

Development & Test Server


6 MPs

Data Warehouse Production &Development Server


2 MPs


Figure 33Oracle Process Company: Integrity Configuration*


PLM Production Server

rx4640 – 4 x mx2


rx4640 – 4 x mx2


rx8620 – 20 x mx2

Failover

3 x rx2600 – 2 x 1.5 GHz


5 x rx7620 – 12 x mx2

3 nPars each


rx8620 – 24 x mx2

3 nPars


rx7620 – 12 x mx2

2 nPars

Development & Test Servers

rx4640 – 4 x mx2

rx4640 – 4 x mx2

rx2600 – 2 x 1.5 GHz

CRM Production Server

rx4640 – 4 x mx2

System Management Server

rx2600 – 2 x 1.5 GHz


Figure 34Oracle Process Company: Sun Configuration*


PLM Production Server

E2900 – 4 x 1.2 GHz


E2900 – 4 x 1.2 GHz


E6900 – 20 x 1.2 GHz

Failover

3 x 280R – 2 x 1.2 GHz


5 x E2900 – 12 x 1.2 GHz

3 DSDs each


E6900 – 24 x 1.2 GHz

3 DSDs


E4900 – 12 x 1.2 GHz

2 DSDs


E2900 – 4 x 1.2 GHz

E2900 – 4 x 1.2 GHz

280R – 2 x 1.2 GHz

CRM Production Server

E2900 – 4 x 1.2 GHz


280R – 2 x 1.2 GHz


Retail Company


Figure 35Oracle Retail Company: Configuration and Cost Comparisons*


eServer p5-5708 x 1.65 GHzOracle RACHACMP

2 x eServer p5-5708 x 1.65 GHzHACMP

2 x eServer p5-5504 x 1.65 GHzHACMP



5 x rx46408 x mx2Serviceguard

rx46408 x mx24 x mx2rx26002 x 1.5 GHz1 x 1.5 GHz


5 x E29008 x 1.2 GHzSun Cluster

E29008 x 1.2 GHz4 x 1.2 GHz280R2 x 1.2 GHz1 x 1.2 GHz

Non-production ServerseServer p5-5708 x 1.65 GHzOracle RACHACMP






SERVER COST ($000)Hardware 372 899 1,179Maintenance 56 111 226Systems software 119 85 130Software support 55 51 78Total 602 1,146 1,613ORACLE COST ($000)Licenses 739 1,366 1,366Updates & support 488 902 902Total 1,227 2,268 2,268



Figure 36Oracle Retail Company: eServer p5 Configuration*


APPLICATION SERVERS

Failover

FINANCE, HR & SCM SYSTEM

Production Database Server3. eServer p5-570 – 8 x 1.65 GHz

Production Application Servers4. 5.

2 x eServer p5-570 – 8 x 1.65 GHz6.

Development, Test & Sandbox Server

eServer p5-570 – 8 x 1.65 GHz7. 4 MPs

iProcurement/Supplier Portal, SystemManagement & Backup Server


3 MPs

iStore/Customer PortalInternet Payments


2 MPs


eServer p5-550 – 4 x 1.65 GHz8. 3 MPs

OTHER SYSTEMS

2 x eServer p5-550 – 4 x 1.65 GHz


Figure 37Oracle Retail Company: Integrity Configuration*



rx4640 – 8 x mx2


rx4640 – 8 x mx2

2 DSDs


rx4640 – 8 x mx214. 2 nPars

OTHER SYSTEMS

Failover


Production Database Server13. rx7620 – 12 x mx2

Production Application Servers11. 12. 3 x rx4640 – 8 x mx2

10.


rx7620 – 12 x mx29. 2 nPars

rx4640 – 8 x mx2rx4640 – 4 x mx2

APPLICATION SERVERSBackup Server

rx2600 – 2 x 1.5 GHz2.


rx2600 – 1 x 1.5 GHz1.


Figure 38Oracle Retail Company: Sun Fire Configuration*



E2900 – 8 x 1.2 GHz


E2900 – 8 x 1.2 GHz

2 DSDs


E2900 – 8 x 1.2 GHz15. 2 DSDs

OTHER SYSTEMS

Failover


Production Database Server16. E4900 – 12 x 1.2 GHz


3 x E2900 – 8 x 1.2 GHz19.


E2900 – 12 x 1.2 GHz20. 2 DSDs

E2900 – 8 x 1.2 GHzE2900 – 4 x 1.2 GHz

APPLICATION SERVERSBackup Server

280R – 2 x 1.2 GHz21.


280R – 1 x 1.2 GHz22.


Healthcare Company


Figure 39Oracle Healthcare Company: Configuration and Cost Comparisons*


eServer p5-5504 x 1.65 GHzOracle3 x eServer p5-5202 x 1.65 GHz

rx46408 x mx2rx26002 x 1.5 GHzOracle

6 x rx26002 x 1.5 GHz2 x rx26001 x 1.5 GHz

E29008 x 1.2 GHz280R2 x 1.2 GHzOracle

6 x 280R2 x 1.2 GHz2 x 280R1 x 1.2 GHz

Non-production ServerseServer p5-5504 x 1.65 GHzOracle

rx46404 x mx2Oracle

rx26002 x 1.5 GHz


280R2 x 1.2 GHz

SERVER COST ($000)Hardware 77 228 260Maintenance 17 26 60Systems software 6 23 27Software support 3 14 16Total 103 291 363ORACLE COST ($000)Licenses 118 346 346Updates & support 78 228 228Total 196 574 574



Figure 40Oracle Healthcare Company: eServer p5 Configuration*


Figure 41Oracle Healthcare Company: Integrity Configuration*


Figure 42Oracle Healthcare Company: Sun Fire Configuration*


Production Database Server

E2900 – 8 x 1.2 GHz

HRSS Server

280R – 1 x 1.2 GHz

CRM Server

280R – 2 x 1.2 GHz


E2900 – 4 x 1.2 GHz

280R – 2 x 1.2 GHzReporting Server

280R – 2 x 1.2 GHz

Production Application Servers

5 x 280R – 2 x 1.2 GHz

Recovery Manager Server

280R – 1 x 1.2 GHz

Production Database Server23. eServer p5-550 4 x 1.65 GHz


3 x eServer p5-520 2 x 1.65 GHz26.

CRM, HRSS, Reporting, RecoveryManager & Development System

eServer p5-550 4 x 1.65 GHz27.

6 MPs


rx4640 – 8 x mx2

HRSS Server

rx2600 – 1 x 1.5 GHz

CRM Server

rx2600 – 2 x 1.5 GHz


rx4640 – 4 x mx2

rx2600 – 2 x 1.5 GHzReporting Server

rx2600 – 2 x 1.5 GHz


5 x rx2600 – 2 x 1.5 GHz

Recovery Manager Server

rx2600 – 1 x 1.5 GHz


WebSphere Installations

Insurance Company


Figure 43WebSphere Insurance Company: Configuration and Cost Comparisons*


eServer p5-57016 x 1.65 GHzeServer p5-57012 x 1.65 GHzOracle RAC, DB2HACMP

rx862020 x mx2rx762016 x mx2Oracle RAC, DB2Serviceguard

rx762012 x mx2Oracle, DB2

rx26002 x 1.5 GHz

E690020 x 1.2 GHzE690016 x 1.2 GHzOracle RAC, DB2Sun Cluster

E490012 x 1.2 GHzOracle, DB2

280R2 x 1.2 GHz

Application ServersProduction eServer p5-570

16 x 1.65 GHzHACMP



rx862020 x mx2rx46404 x mx2Serviceguard

7 x rx26002 x 1.5 GHz

E690020 x 1.2 GHzE29004 x 1.2 GHzSun Cluster

7 x 280R2 x 1.2 GHz

Non-production eServer p5-5504 x 1.65 GHzHACMP


rx26002 x 1.5 GHz


280R2 x 1.2 GHz

SERVER COST ($000)Hardware 504 1,385 2,237Maintenance 81 259 406Systems software 164 198 146Software support 76 119 88Total 825 1,961 2,877ORACLE COST ($000)Licenses 1,294 2,050 2,050Updates & support 854 1,353 1,353Total 2,148 3,403 3,403DB2 COST ($000)Licenses 519 890 890Updates & support 390 668 668Total 909 1,558 1,558



Figure 44WebSphere Insurance Company: eServer p5 Configuration*


WEB SERVERS3 x eServer p5-520 – 2 x 1.65 GHz


Core Business System:Production Database & Batch

Server

Failover


Data WarehouseETL SubsystemBackup Server

Development & Test

7 MPs


Customer Portal/Self-service:Development & Staging

Server

3 MPs


Customer Portal/Self-serviceSystem & Directory Server

2 MPs


Core Business System:Production Application Servers


6 MPs


Figure 45WebSphere Insurance Company: Integrity Configuration*


WEB SERVERS5 x rx2600 – 2 x 1.5 GHz

Failover

rx4640 – 4 x mx2

Customer Portal/Self-serviceDevelopment

rx4640 – 4 x mx2

Customer Portal/Self-serviceSystem

rx7620 – 16 x mx2


Server

rx8620 – 20 x mx2

Development & TestETL Subsystem

4 nPars

rx8620 – 20 x mx2


5 nPars

rx7620 – 12 x mx2

Data Warehouse:Production & Database Server

2 nPars

rx2600 – 2 x 1.5 GHz

Directory Server

rx2600 – 2 x 1.5 GHz


rx2600 – 2 x 1.5 GHz

Backup Server

rx2600 – 2 x 1.5 GHz

Customer Portal/Self-serviceStaging


Figure 46WebSphere Insurance Company: Sun Fire Configuration*


WEB SERVERS5 x 280R – 2 x 1.2 GHz

Failover

E2900 – 4 x 1.2 GHz

Customer Portal/Self-serviceDevelopment

E2900 – 4 x 1.2 GHz

Customer Portal/Self-serviceSystem

E6900 – 16 x 1.2 GHz


Server

E6900 – 20 x 1.2 GHz

Development & TestETL Subsystem

4 DSDs

E6900 – 20 x 1.2 GHz


5 DSDs

E4900 – 12 x 1.2 GHz

Data Warehouse:Production & Database Server

2 DSDs

280R – 2 x 1.2 GHz

Directory Server

280R – 2 x 1.2 GHz


280R – 2 x 1.2 GHz

Backup Server

280R – 2 x 1.2 GHz

Customer Portal/Self-serviceStaging


Telecommunications Company


Figure 47WebSphere Telecommunications Company: Configuration and Cost Comparisons*




rx26002 x 1.5 GHzOracle, DB2


280R2 x 1.2 GHzOracle, DB2


4 x 1.65 GHz7 x rx46804 x mx2

7 x E29004 x 1.2 GHz

Non-production Development ondatabase server

rx46404 x mx2rx26002 x 1.5 GHz

E29004 x 1.2 GHz280R2 x 1.2 GHz

SERVER COST ($000)Hardware 470 1,377 2,247Maintenance 81 287 430Systems software 124 182 165Software support 58 109 99Total 733 1,955 2,941ORACLE COST ($000)Licenses 1,663 2,801 2,801Updates & support 1,098 1,849 1,849Total 2,761 4,650 4,650DB2 COST ($000)Licenses 668 1,124 1,124Updates & support 501 843 843Total 1,169 1,967 1,967



Figure 48WebSphere Telecommunications Company: eServer p5 Configuration*


Figure 49WebSphere Telecommunications Company: Integrity Configuration*


Figure 50WebSphere Telecommunications Company: Sun Fire Configuration*


APPLICATION SERVERS6 x E2900 – 4 x 1.2GHz

Failover

E6900 – 20 x 1.2 GHz

CRM Production

Billing Production

Financial SystemProduction

3 DSDs

E6900 – 20 x 1.2 GHz

Operational SupportSystem Production

Usage DataWarehouse

2 DSDs

E6900 – 20 x 1.2 GHz

Development & Test

5 DSDs

E2900 – 4 x 1.2 GHz

ETL Subsystem

DEVELOPMENT & TESTE2900 – 4 x 1.2 GHz2 x 280R – 2 x 1.2 GHz

Failover


CRM Production

Billing Production


3 MPs



Usage DataWarehouse

ETL Subsystem

4 MPs


Development & Test

8 MPs

APPLICATION SERVERS5 x eServer p5-550 – 4 x 1.65 GHz

APPLICATION SERVERS6 x rx4640 – 4 x mx2

Failover

rx8620 – 20 x mx2

CRM Production

Billing Production


3 nPars

rx8620 – 20 x mx2


Usage DataWarehouse

2 nPars

rx8620 – 20 x mx2

Development & Test

5 nPars

rx4640 – 4 x mx2

ETL Subsystem

DEVELOPMENT & TESTrx4640 – 4 x mx22 x rx2600 – 2 x 1.5 GHz


Distribution Company


Figure 51WebSphere Distribution Company: Configuration and Cost Comparisons*




rx26002 x 1.5 GHzOracle, DB2


280R2 x 1.2 GHzOracle, DB2

Application ServersProduction eServer p5-550

4 x 1.65 GHzHACMP

3 x eServer p5-5504 x 1.65 GHz2 x eServer p5-5202 x 1.65 GHz


rx26001 x 1.5 GHzServiceguard

3 x rx46404 x mx23 x rx26002 x 1.5 GHz2 x rx26001 x 1.5 GHz


280R1 x 1.2 GHzSun Cluster

3 x E29004 x 1.2 GHz3 x 280R2 x 1.2 GHz2 x 280R1 x 1.2 GHz

Non-production Development ondatabase server

rx26002 x 1.5 GHzServiceguard

rx46404 x mx2

280R2 x 1.2 GHzSun Cluster

E29004 x 1.2 GHz




Figure 52WebSphere Distribution Company: eServer p5 Configuration*


Figure 53WebSphere Distribution Company: Integrity Configuration*


Figure 54WebSphere Distribution Company: Sun Fire Configuration*


E2900 – 4 x 1.2 GHz


E2900 – 4 x 1.2 GHz

Commerce AnalyzerDevelopment & Test

E2900 – 4 x 1.2 GHz

Development & Test

E2900 – 4 x 1.2 GHz

Payments Manager

3 x 280R – 1 x 1.2 GHz

Directory, Load Balancing &System Management

WEB SERVERS3 x 280R – 2 x 1.2 GHz

Failover

3 x E2900 – 4 x 1.2 GHz


280R – 2 x 1.2 GHz

Development & Test

WEB SERVERS2 x eServer p5-520 – 2 x 1.65 GHz

Failover



4 MPs



3 x eServer p5-550 – 4 x 1.65 GHz

Production Application Servers4 MPs


Payments Manager, Directory, LoadBalancing & System Management

rx4640 – 4 x mx2


rx4640 – 4 x mx2


rx4640 – 4 x mx2

Development & Test

rx4640 – 4 x mx2

Payments Manager

3 x rx2600 – 1 x 1.5 GHz

Directory, Load Balancing &System Management

WEB SERVERS3 x rx2600 – 2 x 1.5 GHz

Failover

3 x rx4640 – 4 x mx2


rx2600 – 2 x 1.5 GHz

Development & Test


METHODOLOGY

ProfilesProfiles used in this document are composites based on data reported by selected companiesemploying SAP, PeopleSoft and Oracle ERP systems, and WebSphere-based systems on IBM(RS/6000 and pSeries), HP (PA RISC and Integrity) and Sun servers.

Not all of the companies on which profiles are based employed current technology servers. Wherethis was the case, configurations were updated to current technology models using vendorperformance data, industry norms or combinations of these. For example, Sun 4800 servers with 121.2 GHz UltraSPARC III CPUs were updated to E4900s with 8 1.2 GHz UltraSPARC IV CPUs. Thesame approach was applied to other server platforms.

Configurations were rounded to the next largest processor or cell board increment of currenttechnology IBM, HP and Sun models; e.g., an HP configuration equivalent to 7.26 mx2 CPUs wasrounded to an rx4640 with 8 mx2 CPUs; an IBM configuration equivalent to 4.8 POWER5 CPUs wasrounded to a eServer p5-570 with 6 POWER5 CPUs.

Configuration SizingFor configuration sizing purposes, it was assumed that IBM eServer p5-520, 550 and 570 modelsemploying POWER5 1.65 GHz CPUs delivered twice the system-level performance of equivalentpSeries 630 (two to four-way) and 650 (six- to eight-way) models employing the same number ofPOWER4 1.45 GHz CPUs. Performance of 12- and 16-way eServer p5-570 configurations wasprorated accordingly, assuming the same level of symmetric multiprocessing (SMP) efficiency as forcomparably sized models of the pSeries 670.

It was further assumed that, for the applications and workloads addressed by this report, eServer p5models delivered 1.35 times greater performance than equivalent HP models with the same number ofmx2 CPUs, and Sun models with the same number of UltraSPARC IV CPUs.

Additional assumptions were made where appropriate for each profile and configuration for overheadgenerated by N-way symmetric multiprocessing, physical partitioning (HP nPartitions, IBM LPARsand Sun Dynamic System Domains), clustering (HP Serviceguard, IBM HACMP and Sun Clusterfacilities) and – for eServer p5 configurations – Micro-Partitioning.

For each eServer p5 configuration employing Micro-Partitioning, an assumption of between 10percent and 40 percent improvement in system-level capacity utilization was applied. Percentageswere based on the application mixes supported, and on previous levels of capacity utilization whenthese were hosted on dedicated servers or in physical partitions.

For clustered configurations, it is assumed that standby servers are employed for non-criticalproduction applications, or for development, test and other non-production purposes; i.e. there is noidle capacity. Actual practice may vary.


Cost Calculations

Server Costs

Server costs for all profiles and configurations include hardware and systems software licenseacquisition, and 24x7 hardware maintenance and systems software update and support costs.Hardware maintenance and systems software update and support costs are for a three-year period.

Hardware and maintenance costs include system units, processors, cell boards (where applicable),memory, power supplies, rack-mount housings and other components that would normally beemployed for the applications and workloads in profiles.

All database servers are configured with one gigabyte (GB) of main memory per CPU, and allapplication servers with one gigabyte per CPU. IBM eServer p5 servers supporting Micro Partitionsare configured with the company’s Virtualization Engine. Costs do not include external storage,networking or peripheral equipment.

Systems software costs include operating systems, as well as clustering tools where appropriate. Inaddition, HP database servers are configured with HP-UX Workload Manager, providing functionsequivalent to those built into the AIX operating system; and Sun database servers are configured withVeritas Volume Manager.

Costs for hardware acquisition, maintenance and systems software license acquisition are based onvendor list prices minus a uniform discount of 30 percent. Systems software update and support costsfor all vendors are based on 20 percent year of discounted license acquisition costs.

Database Costs

Oracle acquisition costs are based on list prices of $40,000 per CPU for Oracle Enterprise Edition and$15,000 per CPU for Oracle Standard Edition, and $20,000 per CPU for Oracle Real ApplicationClusters (RAC). Configurations include Oracle Diagnostic and Tuning Packs based a list price of$3,000 per processor. A 30 percent discount is assumed. Update subscription and support costs arecalculated as 22 percent per year of the discounted acquisition cost over a three-year period.

DB2 acquisition costs are based on list prices of $26,500 and $7,500 per CPU for DB2 Enterprise andWorkgroup Editions respectively, again discounted by 30 percent. Update subscription and supportcosts are calculated as 25 percent per year of the discounted acquisition cost over a three-year period.

International Technology Group4546 El Camino Real, Suite 230

Los Altos, California 94022-1069Telephone: (650) 949-8410Facsimile: (650) 949-8415Email: [email protected]

ITG

ABOUT THE INTERNATIONAL TECHNOLOGY GROUP

ITG sharpens your awareness of what’s happening and your competitive edge. . . this could affect your future growth and profit prospects

The International Technology Group (ITG), established in 1983, is an independent research andmanagement consulting firm specializing in information technology (IT) investment strategy, cost/benefit metrics, infrastructure studies, deployment tactics, business alignment and financial analysis.

ITG was an early innovator and pioneer in developing total cost of ownership (TCO) and return oninvestment (ROI) processes and methodologies. In 2004, the firm received a Decade of EducationAward from the Information Technology Financial Management Association (ITFMA), the leadingprofessional association dedicated to education and advancement of financial management practicesin end-user IT organizations.

The firm has undertaken more than 100 major consulting projects, released approximately 160management reports and white papers, and delivered nearly 1,800 briefs and presentations toindividual clients, user groups, industry conferences and seminars throughout the world.

Client services are designed to provide factual data and reliable documentation to assist in thedecision-making process. Information provided establishes the basis for developing tactical andstrategic plans. Important developments are analyzed and practical guidance is offered on the mosteffective ways to respond to changes that may impact or shape complex IT deployment agendas.

A broad range of services is offered, furnishing clients with the information necessary to complementtheir internal capabilities and resources. Customized client programs involve various combinations ofthe following deliverables:

Status Reports In-depth studies of important issues

Management Briefs Detailed analysis of significant developments

Management Briefings Periodic interactive meetings with management

Executive Presentations Scheduled strategic presentations for decision-makers

Email Communications Timely replies to informational requests

Telephone Consultation Immediate response to informational needs

Clients include a cross section of IT end users in the private and public sectors representingmultinational corporations, industrial companies, financial institutions, service organizations,educational institutions, federal and state government agencies as well as IT system suppliers,software vendors and service firms. Federal government clients have included agencies within theDepartment of Defense (e.g. DISA), Department of Transportation (e.g. FAA) and Department ofTreasury (e.g. Mint).

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