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Peter Mathews
5 years ago
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2 ROI of Oracle Database Management Packs Noel Yuhanna Principal Analyst Forrester Research

4 Agenda Current trends in database management Lowering cost and improving efficiency ROI of Oracle Enteprise Manager study Key findings Recommendations 4 Entire contents 2007 Forrester Research, Inc. All rights reserved.

5 Trends in database management Data volumes growing at a fast pace: Doubles every months 35% of large enterprises have more than 1TB+ DB, heading to Petabytes Database management has become more challenging: Too many DBs Centralized administration, automation and virtualization Focus on lowering data management cost: Increasing cost Consolidation, automation and improved manageability Increased demand for high availability: More applications are maturing Clustering/grid, automated upgrade and troubleshooting Need for higher performance: Support for larger workload Cache Databases, scale-out clustering and grids Increasing demand for information management: Data sharing Structured, un-structured and semi-structured support. 5 Entire contents 2007 Forrester Research, Inc. All rights reserved.

6 DBA activity break-down: Load/Unload 5% Backup & Recovery 7% Security 3% Doc, licensing & training 5% Install, upgrade, patch, migration 35% Load/Unload 7% Backup & Recovery 9% Doc, licensing & training 5% Security 7% Install, upgrade, patch, migration 47% Performance & Troubleshooting 45% Performance & Troubleshooting 25% 6 Entire contents 2007 Forrester Research, Inc. All rights reserved.

8 Database-to-DBA ratio is increasing: Number of databases/instances DBMS version improvement Enhanced Manageability Current Avg. industry ratio 24: Entire contents 2007 Forrester Research, Inc. All rights reserved.

9 Database-to-DBA ratio is increasing: Number of databases/instances Enterprises using that use high degree of automation, tools and Enterprise Manager Entire contents 2007 Forrester Research, Inc. All rights reserved.

10 Focus shifting to manage many DB s collectively Patches Upgrade Diagnostic DBA Tuning Grid Change Mgt Enterprise Manager Databases 10 Entire contents 2007 Forrester Research, Inc. All rights reserved.

11 Automation helps lower cost and improve efficiency Automating activities for:» Performance and Tuning» Troubleshooting & Diagnostic» Change Manager» General administration and others Automation helps:» Improve DBA productivity by 20% or more» Minimize human errors by 25%» Improve application performance by 10% or more» Reduces CPU usage by 15% or more defer H/w upgrades» DBA s can support more databases. 11 Entire contents 2007 Forrester Research, Inc. All rights reserved.

12 Calculating ROI benefits for Oracle Enterprise Manager Forrester s Total Economic Impact (TEI):» Measures costs and benefits (areas that are typically accounted for within IT)» Also weighs the enabling value of a technology in increasing the effectiveness of overall business processes.» Serves an extremely useful purpose by providing a complete picture of the total economic impact of purchase decisions. 12 Entire contents 2007 Forrester Research, Inc. All rights reserved.

13 Four-step approach Forrester took 1. Reviewed Oracle Enterprise Manager value proposition. 2. Conducted in-depth discussions with five Oracle customers regarding their experiences with Oracle Enteprise Manager. 3. Constructed a financial value model representative of the data collected in the interviews. 4. Created a case study, which represents and examines the estimated value of the findings derived from the customer interview and analysis process and from Forrester s independent research. 13 Entire contents 2007 Forrester Research, Inc. All rights reserved.

14 Five large enterprises that we interviewed Customer #1: (Pharmaceutical) An $18 billion (sales) international pharmaceutical company with over 40,000 employees. It has been using Diagnostic Pack and Tuning Pack since 1999 on over 400 database instances. Customer #2: (Manufacturing) An European-based global manufacturer of mobile devices with sales of $18 billion. This organization has been using Oracles Enterprise Manager (Diagnostic Pack and Tuning Pack) for over 2 years against 700 Databases. Customer #3: (Financial) A leading Australian financial institution with over 30,000 employees doing business globally. It has been using the Diagnostic Pack and the Tuning Pack components of Oracle Enterprise Manager solution for over 2 years to help manage 275 databases. 14 Entire contents 2007 Forrester Research, Inc. All rights reserved.

15 Five customers profile cont d Customer #4: (Financial) One of the leading financial institutions in the US specializing in retail banking, mortgage and construction lending, investment and insurance services with over $15 billion in assets. The organization has been using Diagnostic Pack and Tuning Pack since 2004 to help manage 15 major databases and eight application servers. Customer #5: (Energy) A global leader in the power generation systems industry with annual revenues of over $10 billion serving customers in over 150 countries. It has been using Oracle Enterprise Manager Diagnostic Pack for almost 3 years. 15 Entire contents 2007 Forrester Research, Inc. All rights reserved.

16 Key objectives customers were trying to achieve with Oracle Enterprise Manager Reduce administration costs and Improve DBA productivity Reduce capital spending for servers and maintenance Make DBA perform more value-added advisory and strategic services - beyond basic administration. Wanted a centralized platform to proactively monitor alerts for databases/systems and servers/clusters 24X7 so problems could be resolved quickly. Ensure high availability of mission critical applications to internal and external users. Improve performance of their critical applications 16 Entire contents 2007 Forrester Research, Inc. All rights reserved.

17 Sample organization that was created With revenue of over $1Billion global enterprise» Over 120+ servers running Linux, UNIX and Windows» One major data center and two regional data centers» More than 150 databases running Oracle 9i and Oracle 10g Challenges:» Ensuring performance and availability with a central tool to monitor all its Oracle databases.» Resolving problems quickly to minimize impact.» It had too many custom scripts being written and monitored by its DBA s; it wanted a way to automate their operational tasks.» Improving database-to-dba ratio. The Organization wanted to find a way to optimize DBA productivity» Containing the on-going capital cost with managing the apps. 17 Entire contents 2007 Forrester Research, Inc. All rights reserved.

18 DBA productivity savings: Oracle Enterprise Manager The organization achieved a risk-adjusted $509,339 in DBA labor savings (over a three year period) from using Oracle Enterprise Manager (Diagnostic and Tuning Packs). 18 Entire contents 2007 Forrester Research, Inc. All rights reserved.

19 DBA tasks used for Diagnostic Pack The Diagnostic Pack was used for the following tasks:» Performance analysis of current system state to be aware of any unknown issues» Historical performance analysis of system to be able to do trend analysis» Define monitoring thresholds for key metrics that met their business requirements» Set up and receive notifications for critical issues» Being able to diagnose issues quickly. 19 Entire contents 2007 Forrester Research, Inc. All rights reserved.

20 DBA tasks used for Tuning Pack The Tuning Pack was used for the following tasks:» Tune poorly performing SQL caused by missing indexes and statistics» Tune poorly performing SQL caused by bad execution plan design» Tune poorly performing SQL caused by bad SQL programming» Optimize indexes, materialized views for applications 20 Entire contents 2007 Forrester Research, Inc. All rights reserved.

21 DBA productivity using Oracle Enterprise Manager 75 Database-to-DBA Ratio :1 24:1 65:1 30:1 Sample Org. Industry Avg Current environment 150 Databases 4 DBAs 3 years projection after using Enterprise Mgr Assumption: 20% increase in DB/year 260 databases 4 DBAs 21 Entire contents 2007 Forrester Research, Inc. All rights reserved.

22 Business productivity achieved Avoiding downtime, increased availability The Organization achieved $2,599,315 in benefits from a reduction in system downtime, and a corresponding increase in availability (over a three year period) from the use of Oracle Enterprise Manager (Diagnostic and Tuning Packs). 22 Entire contents 2007 Forrester Research, Inc. All rights reserved.

23 Business productivity achieved Avoiding downtime, increased availability The Diagnostic & Tuning Packs were used for:» Downtime avoided by ADDM recommendations» Improvement in MTTR based on historical system performance analysis» Downtime avoided by proactive alerts and notifications» Improvement in SQL performance for existing application» Improvement in SQL Performance by introducing beneficial new indexes and materialized views 23 Entire contents 2007 Forrester Research, Inc. All rights reserved.

24 Capital expenditure savings (Servers) Diagnostic and Tuning Packs -The Organization achieved a $552,000 reduction in capital spending on servers monitored by Oracle Enterprise Manager (over a three year period) for the following:» Reduced the CPU utilization of database servers» Servers not purchased because of being able to handle more workload with less system resources 24 Entire contents 2007 Forrester Research, Inc. All rights reserved.

25 Risks taken into account for this ROI study The following general risks were considered in this analysis: Lack of corporate discipline in creating processes and procedures to best take advantage of the benefits. Lack of appropriate training for DBA s that will be responsible for working with Oracle Enterprise Manager. Failure to reduce, transfer, or redeploy DBA headcount and server hardware made redundant by deploying Oracle Enterprise Manager. Learning curve associated with benefits realization. Forrester has assigned a 10% risk reduction factor to all the benefits in recognition of the above risks 25 Entire contents 2007 Forrester Research, Inc. All rights reserved.

26 ROI study findings for Oracle Enterprise Manager Organizations that implement Oracle s Enterprise Manager should see significant savings in:» Increased DBA productivity. Allowing DBAs to attend other critical business requirements such as disaster recovery, planning, security and manage more databases.» Reduction in system downtime. A corresponding increase in availability for critical applications.» Lower of cost. A 20% reduction (over 3 years) in capital spending on servers monitored by Oracle Enteprise Manager. ROI achieved:» Risk-adjusted: Achieved a 100% ROI over a 3 year period; and a 16 month payback period.» Non-risk adjusted: Achieved a 122% ROI (non-risk adjusted) over a 3 year period; and a 15 month payback period. 26 Entire contents 2007 Forrester Research, Inc. All rights reserved.

27 Key recommendations Need for doing with less. The pace of business has grown significantly over the years. The need for deploying new databases more quickly, managing them more efficiently and cost-effectively, and yet improving DBA productivity. Database administration automation can help everyone. It can help improve DBA productivity and lower cost overall data management and infrastructure cost. New DBMS versions can improve overall manageability. With every new release DBMS are becoming more intelligent, automated and adaptive. Enterprises should consider upgrading by months of new release. Oracle Enterprise Manager can further help. It can minimize database administration complexity, improve DBA efficiency and lower costs. It can focus on centralized administration. 27 Entire contents 2007 Forrester Research, Inc. All rights reserved.

29 Disclosures The study was commissioned by Oracle and delivered by Forrester. Forrester maintained editorial control over the study, its findings, and financial data. The customer names for the interviews were provided by Oracle. This study is not an endorsement by Forrester of Oracle or its offerings. The study is not a competitive product analysis. Forrester makes no assumptions as to the potential ROI other enterprises will receive within their own environment. 29 Entire contents 2007 Forrester Research, Inc. All rights reserved.