This technology will allow the organization to

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capabilities of a single host, the organization does not need as much database partitioning. This technology will allow the organization to realize a significant cost savings over the life of the servers, especially when considering the annual growth in data assets. The model assumes 50 backups per production database, and a $0.04 cost per gigabyte. The average database backup for the organization is approximately 3TB, and over a three-year period, the organization will realize significant savings as its data assets continue to grow. TABLE 3 New Product Cost Avoidance Value Cost avoidance in that a company would not have to invest in another new product, including implementing, integrating, training, support resources, etc. No retraining is needed; BLU is seamlessly integrated into DB2. $150,000 Source: Forrester Research, Inc.
11 Total Benefits Table 4 shows the total of all benefits across the three areas listed above, as well as present values (PVs) discounted at 10%. These estimates are then risk-adjusted, providing a more conservative estimate for the business case. Over three years, the interviewed organization expects risk-adjusted total benefits to be a PV of more than $883,000. TABLE 4 Total Benefits (Risk-Adjusted) Year 1 Year 2 Year 3 Total Present Value (PV) Performance $163,625 $196,350 $235,620 $595,595 $488,048 Lower storage costs $67,500 $101,250 $151,875 $320,625 $259,147 New product cost avoidance $150,000 $0 $0 $150,000 $136,364 Total $381,125 $297,600 $387,495 $1,066,220 $883,558
12 COSTS The impact of cost is accrued in two different areas described below: increasing the investment in IBM and the organization’s internal preparation and planning costs, which together amount to approximately $247,000. Please note that the interviewed organization was currently on an IBM enterprise agreement, allowing it to purchase the upgrade within the terms of the purchase agreement. The cost for other organizations may vary. Customers with a different deployment can take advantage of TB-based pricing available from IBM, potentially reducing investment costs further. The organization saw the following costs: Increased investment in software licensing fees. Increased investment in annual software maintenance. Cost of implementation. Total Costs Table 5 illustrates the total incremental costs of the IBM platform for the interviewed organization. TABLE 5 Total Costs (Risk-Adjusted) Year 1 Year 2 Year 3 Total Present Value (PV) Incremental license $165,000 $0 $0 $165,000 $150,000 Maintenance $0 $33,000 $33,000 $66,000 $52,066 Implementation and professional services $50,000 $0 $0 $50,000 $45,455 Total $215,000 $33,000 $33,000 $281,000 $247,521 Source: Forrester Research, Inc. FLEXIBILITY Flexibility, as defined by TEI, represents an investment in additional capacity or capability that could be turned into business benefit for some future additional investment. This provides an organization with the “right” or the ability to engage in future initiatives but not the obligation to do so. There are multiple scenarios in which a customer might choose to implement IBM DB2 with BLU Acceleration and later realize additional uses and business opportunities. Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A).
13 RISKS Forrester defines two types of risk associated with this analysis: “implementation risk” and “impact risk.” Implementation risk

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