great lakes oracle conference (gloc) benefits of migrating to the cloud- mercury technology...
TRANSCRIPT
Benefits of Migrating to the Cloud
Eugene Breger/Mercury TechnologyLL06 (80)
May 19, 20168:30 AM – 9:30 AM EDT
Introduction / Agenda
• Your Oracle Applications Investment has already been made• Take Advantage of the Cloud• How do I get to the Cloud?• What version of Cloud makes sense for Enterprise Applications?
– Public, Private, Hybrid and Federated Versions– What are the options?
• Public Cloud (Amazon, Google, Microsoft)• Oracle – OMCS-OPC• Consulting Firms• Specialized Managed Applications Hosting Providers
• Questions to ask / Frequently asked Questions• How to move to the Cloud• Return on Investment Spreadsheet• Who is Mercury Technology?
Your Oracle Software Investment has been made
• Oracle Licenses have been purchased and Implementation Costs have been spent
• On-Going Operational Costs are NOT trivial for running on-premise EBS, Hyperion, Demantra, SOA, OBIEE, Siebel and other Oracle software
• IT budgets are constantly under pressure to do more with less• Security Threats and Compliance requirements are increasing dramatically• Businesses require 24x7x365 uptime for ERP Applications to support the
always connected employees, vendors and customers• Oracle Software has an advanced feature set that doesn’t exist in new
Fusion Cloud Application software• Gain the benefits of a SaaS delivered Application
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Take Advantage of the Cloud
• The Cloud may already be present at your shop– Public, Private, Hybrid, Federated
• Workday, SalesForce, AWS, Azure
• Why do this with on-premise licenses?– Preserve / Gain benefits
• Retain control over your own software• 24x7x365 support• Security • Disaster Recovery• Upgrades• Backups / Clones• Hardware Refresh
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How Do I get to the Cloud? 1
• 1) Use Public Cloud vendors and “do-it-yourself”
• 2) Use a Service Provider that provides Managed Applications– Consider Service Providers and their respective business models– Oracle Managed Cloud Services (OMCS / f/k/a OnDemand)
• Pro - Expertise• Con - High cost• Con - Mediocre service level• Pro - Author of the Software
– The Oracle Public Cloud (OPC) is a little different,” said Oracle CEO Larry Ellison. “The Oracle Public Cloud is both a platform as a service and applications as a service. The key difference is the Oracle Public Cloud is based on industry standards and supports full interoperability with other clouds and your datacenter on premise.”
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How Do I get to the Cloud? 2
– Consulting Firms• Pro - Business Knowledge of Oracle Applications • Pro - Able to beat OMCS on price and service level• Con - Not operating at scale• Con – Hosting, Hardware, Networking knowledge lacking• Con – Services not delivered in a SaaS manner
• Managed Applications Provider– Operating at Scale with Singular Focus to Deliver on-premise Applications in a SaaS manner.– Lower costs for Infrastructure Services (Hosting, Hardware, OS, Network)– Lower costs for Application Services (High level of Process Automation)– Highest level of Security Capability (Advanced Security Controls, Single Tenant Architecture)– Highest Level of Compliance Capability (SSAE16 SOC1 SOC2 etc.)– Highest Level of Redundancy and Disaster Recovery
• Multiple Enterprise Class Data Centers• High Uptime Capability (both Unplanned and Planned)
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Questions to ask of a prospective Cloud vendor
• What percentage of your Revenue is from Hosted Managed Applications?
• Have you achieved “Scale” in your Managed Applications Operations?
• What is your customer retention experience over the last 5 years?
• What is your average price increase/decrease over the last 10 years?
• What is your uptime service capability and track record for customers?
• Are your infrastructure and processes audited against industry standards (like SSAE16 SOC1 and SOC2)?
• Can I review your Compliance reports?
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Frequently Asked Questions
What is the process to move an Oracle ERP system?
Obtain backup of existing system and restore on
the Mercury Cloud servers
Migration can be from an in-house system or from
another hosting vendor
Brand new on-premise licensed software is also in
scope for cloud hosting
Frequently Asked Questions
How long does it take to Migrate?
Initial Test Round - Approx. 2-4 Months
Final Cutover – 4 Hours + Validation
What does a vendor like Mercury do?
performs all the technical migration steps and
technical testing efforts (excludes Functional
Testing, Interface Testing, and Custom Code
Remediation efforts)
What does the customer do?
Functional Testing, Custom Code Remediation,
Integration Testing efforts, Training and End-User
Communication
What kind of Savings do I get from a Managed Applications Provider?
• Real, immediate savings is achieved– Flexible contract term with fixed Pricing up to 60 months– Hardware costs and support costs are eliminated– Network cost and support costs are eliminated– Labor costs for Technical DBA and System Admins are eliminated– IT Security and Compliance costs are eliminated
• Transferring Ownership and Responsibility for Operations to Service Provider– Management Time and Costs eliminated– Unexpected costs are eliminated
• Total Savings can range from 30% - 50% over current IT costs
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In-House Private Cloud Costs Qty Unit Year 1 Year 2 Year 3 Year 4 Year 5 Total (5 Years)
Direct server Hardware * Need to find these numbers
DELL Server Cost / 7 Year straight line depreciation (5 Year ??) 35,000$ 35,000$ 35,000$ 35,000$ 35,000$ 175,000$
DELL Hardware Servers Annual Support 9,210$ 9,210$ 9,210$ 9,210$ 9,210$ 46,050$
DELL Software Support 30,000$ 30,000$ 30,000$ 30,000$ 30,000$ 150,000$
NetApp Storage Area Network Purchase depreciation 54,000$ 54,000$
Red Hat Linux Maintenance Support Fees 5,000$
Oracle support savings due to licenses reduction / Support Fees
NetApp Storage Area Network Annual Support 60,000$ 60,000$ 60,000$ 66,000$ 66,000$ 312,000$
Total Direct server Hardware Costs 193,210$ 134,210$ 134,210$ 140,210$ 140,210$ 742,050$
Data Center Utilities & Other Costs
Power Consumption Costs (0.12 per kWH) - Estimate *This
must be validated. 10,000 $1.20 12,000$ 12,000$ 12,000$ 12,000$ 12,000$ 60,000$
Data Center Space including UPS & HVAC Assets - Estimate
*This must be validated. 40 Rack Units 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 75,000$
Total Utilities & Other Costs 27,000$ 27,000$ 27,000$ 27,000$ 27,000$ 135,000$
Internal Direct Labor (Salaries + Direct Overheads + Inflation)
LINUX Admin Support 1 88,500$ 88,500$ 91,155$ 93,890$ 96,706$ 99,608$ 469,859$
OFFSHORE DBAs + 1 OFFSHORE Linux Admin 205,000$ 205,000$ 215,250$ 226,013$ 237,313$ 244,433$ 1,128,008$
Total Internal Labor (Salaries + Overheads + Inflation) Costs 293,500$ 306,405$ 319,902$ 334,019$ 344,040$ 1,597,867$
Ancillary Technology Products & Services
Annual DBA Audit/Health Check or External Assistance (external party) 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 50,000$
DR hosting service fees at the colocation 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 250,000$
Total Ancillary Technology Products & Services 60,000$ 60,000$ 60,000$ 60,000$ 60,000$ 300,000$
Outside Services
Tape Rotation Services * This must be validated 14,400$ 14,400$ 14,400$ 14,400$ 14,400$ 72,000$
Internal Software Audit Costs * This must be verified. Can we
stop paying to any external party, if we outsource? 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 50,000$
Total Outside Services' Costs 24,400$ 24,400$ 24,400$ 24,400$ 24,400$ 122,000$
Grand Total (Annual Expense of hosting internally) 598,110$ 552,015$ 565,512$ 585,629$ 595,650$ 2,896,917$
Hosting Company Annual Billing (Best Estimate So Far) 450,000$ 450,000$ 450,000$ 450,000$ 450,000$ 2,250,000$
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Who is Mercury Technology?
• Dedicated Managed Oracle Application Provider
• Leader in driving Cloud Adoption of Oracle Applications
• Oracle Technology Experts
• Security, Compliance, Disaster Recovery and Archiving Experts
• 15 year track record Providing Managed Applications in a Private Cloud
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