1. META Group Compaq Executive Briefing: Managing Infrastructure Consolidation Brian Richardson Program Director Server Infrastructure Strategies Brian Richardson Program Director Server Infrastructure Strategies www.metagroup.com

2. © 2000 META Group Inc., Stamford, CT-USA, +1 (203) 973-6700, metagroup.com 2 Brand Vulnerability 2001+ Business Scenario  Managing business externalization (and numerous POIs)  Entire enterprise may be affected by single outage of an application  QoE is driving a robust infrastructure  Managing business externalization (and numerous POIs)  Entire enterprise may be affected by single outage of an application  QoE is driving a robust infrastructure

3. © 2000 META Group Inc., Stamford, CT-USA, +1 (203) 973-6700, metagroup.com 3 Brand Vulnerability E-business brand exposure requires investment in a scalable and highly available infrastructure 2001+ Business Scenario  Managing business externalization (and numerous POIs)  Entire enterprise may be affected by single outage of an application  QoE is driving a robust infrastructure  Managing business externalization (and numerous POIs)  Entire enterprise may be affected by single outage of an application  QoE is driving a robust infrastructure

4. © 2000 META Group Inc., Stamford, CT-USA, +1 (203) 973-6700, metagroup.com 4 Consolidation Critical Issues  Setting appropriate expectations & adopting a TCO perspective  Consolidation must be an ongoing process, not a one-time exercise  Following a step-wise infrastructure consolidation roadmap  Maintaining consistent service levels with a tiered architecture  Setting appropriate expectations & adopting a TCO perspective  Consolidation must be an ongoing process, not a one-time exercise  Following a step-wise infrastructure consolidation roadmap  Maintaining consistent service levels with a tiered architecture

5. © 2000 META Group Inc., Stamford, CT-USA, +1 (203) 973-6700, metagroup.com Setting Appropriate Expectations ThenNow 5

6. © 2000 META Group Inc., Stamford, CT-USA, +1 (203) 973-6700, metagroup.com 6 Adopting A TCO Perspective 20th Century Infrastructure Drivers  Adopt a TCO perspective for infrastructure management  One-time costs  Recurring costs  Optimize management of the:  Most valuable resources (staff resources)  Fastest growing costs (storage)  Consolidation must be an ongoing exercise  Adopt a TCO perspective for infrastructure management  One-time costs  Recurring costs  Optimize management of the:  Most valuable resources (staff resources)  Fastest growing costs (storage)  Consolidation must be an ongoing exercise

7. © 2000 META Group Inc., Stamford, CT-USA, +1 (203) 973-6700, metagroup.com 7 Adopting A TCO Perspective 20th Century Infrastructure Drivers  Adopt a TCO perspective for infrastructure management  One-time costs  Recurring costs  Optimize management of the:  Most valuable resources (staff resources)  Fastest growing costs (storage)  Consolidation must be an ongoing exercise  Adopt a TCO perspective for infrastructure management  One-time costs  Recurring costs  Optimize management of the:  Most valuable resources (staff resources)  Fastest growing costs (storage)  Consolidation must be an ongoing exercise One-time (upfront) costs are only 30% of the TCO pie

8. © 2000 META Group Inc., Stamford, CT-USA, +1 (203) 973-6700, metagroup.com 8 Where We Want To Be

9. © 2000 META Group Inc., Stamford, CT-USA, +1 (203) 973-6700, metagroup.com 9 A Stepwise Consolidation Approach A Step-Wise Consolidation Roadmap Efficiency High Low Complexity Low High 1 2 3 4 5 3a Physical co-location Storage 2000/01 “Legacy” Like workload 2001/02 Mixed workload 2002/03 System sprawl  Set management expectations and identify costs impacted by consolidation  Balance efficiency and complexity  Maintain consistent service levels (wait for mature tools)  Set management expectations and identify costs impacted by consolidation  Balance efficiency and complexity  Maintain consistent service levels (wait for mature tools)

10. © 2000 META Group Inc., Stamford, CT-USA, +1 (203) 973-6700, metagroup.com 10 A Stepwise Consolidation Approach A Step-Wise Consolidation Roadmap Efficiency High Low Complexity Low High 1 2 3 4 5 3a Physical co-location Storage 2000/01 “Legacy” Like workload 2001/02 Mixed workload 2002/03 System sprawl  Set management expectations and identify costs impacted by consolidation  Balance efficiency and complexity  Maintain consistent service levels (wait for mature tools)  Set management expectations and identify costs impacted by consolidation  Balance efficiency and complexity  Maintain consistent service levels (wait for mature tools) Plan on implementing consolidation and standardization initiatives for the next 4-6 years

11. © 2000 META Group Inc., Stamford, CT-USA, +1 (203) 973-6700, metagroup.com 11 Managing Infrastructure Consolidation  Prioritize resource management  Focus on recurring and people-driven costs  Establish a consolidation road map  Set expectations, wait for mature tools, and standardize  Balance robustness and TCO  Prioritize time to implementation and infrastructure robustness over minimizing TCO  Prioritize resource management  Focus on recurring and people-driven costs  Establish a consolidation road map  Set expectations, wait for mature tools, and standardize  Balance robustness and TCO  Prioritize time to implementation and infrastructure robustness over minimizing TCO

12. © 2000 META Group Inc., Stamford, CT-USA, +1 (203) 973-6700, metagroup.com 12 Business Impact: To support e-business initiatives, IT infrastructure must be viewed as an investment, not just a cost Managing Infrastructure Consolidation  Prioritize resource management  Focus on recurring and people-driven costs  Establish a consolidation road map  Set expectations, wait for mature tools, and standardize  Balance robustness and TCO  Prioritize time to implementation and infrastructure robustness over minimizing TCO  Prioritize resource management  Focus on recurring and people-driven costs  Establish a consolidation road map  Set expectations, wait for mature tools, and standardize  Balance robustness and TCO  Prioritize time to implementation and infrastructure robustness over minimizing TCO Bottom Line