Financial Summary For WebLogic Migration Greenlight (Group 2 Apps) Apr 13, 2012

2 Business Problem Many of the SPE IT custom J2EE applications are currently using the Oracle WebLogic application server. The WebLogic technology is end of life and thus adds overhead in terms of cost of maintenance and support. There is a need to migrate to the better efficient and cost effective platforms to reduce cost of support and ease of maintenance/enhancement and development. Current version of WebLogic is at ‘End of Life” Many of the SPE IT custom J2EE applications are currently using the Oracle WebLogic application server. The WebLogic technology is end of life and thus adds overhead in terms of cost of maintenance and support. There is a need to migrate to the better efficient and cost effective platforms to reduce cost of support and ease of maintenance/enhancement and development. Current version of WebLogic is at ‘End of Life”

3 Background In 2009, SPE IT decided to leverage the open-source JBoss platform for all new custom development projects. Some of the benefits of the JBoss are reduced ongoing operational costs, improved IT productivity and time to market, and improved ability to consolidate virtualization. Following are some key issues with current WebLogic framework – –Complexity: - While WebLogic is extremely powerful, it is also very complicated, both to program and to administer. Today’s IT budgets require “do more with less” processes and staffing, making it difficult to sustain such server environments. –Productivity: - Developer productivity is also somewhat higher with Tomcat, particularly for those applications that do not require the complexity of WebLogic. Whereas a Java developer may take days to set up and configure instances of WebLogic, they can often do this in hours or even minutes for JBoss. –Heavy Weight: - Also driving complexity reduction is the need for IT agility. Whereas business applications used to take years to develop and deploy, business requirements now demand applications in weeks/months. This requirement drives architectural and process changes, including a transition to a more horizontal, lighter-weight, more modular deployment architecture. WebLogic is both too costly and too heavyweight to meet these requirements. –Costly: - Maintaining WebLogic is very costly, not the least because of the vendor’s service contract pricing, but also because of the amount of hardware required supporting a WebLogic instance and the associated space/power/cooling costs. Standardizing the framework of all the applications & aligning them on the single platform is the need of the hour as it offers a lot of benefits in terms of cost savings and ease of maintenance/support In 2009, SPE IT decided to leverage the open-source JBoss platform for all new custom development projects. Some of the benefits of the JBoss are reduced ongoing operational costs, improved IT productivity and time to market, and improved ability to consolidate virtualization. Following are some key issues with current WebLogic framework – –Complexity: - While WebLogic is extremely powerful, it is also very complicated, both to program and to administer. Today’s IT budgets require “do more with less” processes and staffing, making it difficult to sustain such server environments. –Productivity: - Developer productivity is also somewhat higher with Tomcat, particularly for those applications that do not require the complexity of WebLogic. Whereas a Java developer may take days to set up and configure instances of WebLogic, they can often do this in hours or even minutes for JBoss. –Heavy Weight: - Also driving complexity reduction is the need for IT agility. Whereas business applications used to take years to develop and deploy, business requirements now demand applications in weeks/months. This requirement drives architectural and process changes, including a transition to a more horizontal, lighter-weight, more modular deployment architecture. WebLogic is both too costly and too heavyweight to meet these requirements. –Costly: - Maintaining WebLogic is very costly, not the least because of the vendor’s service contract pricing, but also because of the amount of hardware required supporting a WebLogic instance and the associated space/power/cooling costs. Standardizing the framework of all the applications & aligning them on the single platform is the need of the hour as it offers a lot of benefits in terms of cost savings and ease of maintenance/support

4 Executive Summary Project Costs Internal Labor:$ 0 External Labor: $ 710,000 Other/Miscellaneous$ 0 Total Costs:$ 710,000 Project Benefits Hard $ Benefits:$ 247,700 Soft $ Benefits (Error prevention): $ 348,551 Soft $ Benefits (Efficiencies): $ 822,720 Total Project Benefits:$ 1,418,971 Five-year Summary and Payback Five-year total costs: $ 710,000 Five-year total benefits: $ 1,418,971 Five-year net benefit: $ 708,971 Internal Rate of Return 40.5% Net present %: $ 390,132 Payback: 25.5 months Funding Needed FY13 $ 710,000 Total Funding Need$ 710,000  Funding Request details : $ 710,000 o TCS Labor $ 337,868 o Project Manager for FY 13 $ 96,902 o QA Manager for FY 13 $ 66,150 o WDG Resource for FY 13 $ 56,360 o IDM Resource for FY 13 $ 56,360 o TCOE Resource for FY 13 $ 56,360 o Redhat Migration – Additional Funds $ 40,000 * Approx amount for FY13

5 Benefits Cost Avoidance $ 247,700  Reusability - Projects (Code Reusability)  Reusability - Enhancements (Code Reusability)  Mobile Development Readiness (Productivity Gains for apps that require mobile enablement)  Use of Free Developer tools instead of paying for development tooling on WebLogic  Reduction in License Fees/Maintenance savings from WebLogic to JBoss Risk Mitigation $ 348,551  Unsupported HW - Labor (Additional Time in Hrs required to fix a issue due to the lack of vendor/product support. Multipler is the # of issues / year / app)  Unsupported HW - Outage Cost (Multipler for the % chance of a hardware issue causing an $$ impact per app due to an outage)  Unsupported SW - Labor (Additional Time in Hrs required to fix a issue due to the lack of vendor/product support. Multipler is the # of issues / year / app)  Unsupported SW - Product Patches (Multipler for the % chance of a new vulnerability not being patched in a timely manner causing an $$ impact per app due to an outage or security bug)  Unsupported SW - Remediation of Security/Vulnerability Issues (Additional Time in Hrs required to fix a issue due to the lack of vendor/product support. Multipler is the # of issues / year / app)

6 Benefits Cost Efficiencies $ 822,720  Skill Set - Loss of productivity (Productivity Loss due to not finding resources for 1 month per resource * TCS attrition rate of 20% * ~100 resources working on J2EE projects)  Productivity Gains - Projects (Productivity Gain due to standard technology and open source (based on $$ spent on the construction phase of custom Java/J2EE projects) in FY 12)  Productivity Gains - Checkbooks (Productivity gain for the number of CB hours allocated to the applications in scope)  Productivity Gains - KLO (Productivity gain for the number of KLO hours allocated to the applications in scope)

7 High Level Project Timeline