High Tech Firm Controls IT Costs and Improves Staff, Customer Communications
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1 Microsoft Volume Licensing Customer Solution Case Study High Tech Firm Controls IT Costs and Improves Staff, Customer Communications Overview Country or Region: United States Industry: Information technology Customer Profile Based in Marlboro, Massachusetts, Egenera has been shipping its data center virtualization system since It has offices throughout the U.S. and six global offices. Egenera employs more than 300 people. Business Situation Egenera needed to update its customer portal and improve internal communications. This effort prompted a reevaluation of its ad-hoc IT purchasing practices. Solution To simplify the acquisition of an IT environment to support strategic business goals, Egenera chose a Microsoft Enterprise Agreement that covers current desktop software and four servers. Benefits Increases the value of IT investments Saves approximately U.S.$212,000 over six years Saves up to $35,000 annually in desktop software licenses Improves customer service Increases intra-company communication Microsoft licensing policies provide a simple and cost-effective way to benefit from a core suite of integrated technologies. Egenera gained a technology infrastructure with long-term value. Technology, Egenera Egenera provides data center virtualization systems to enterprises worldwide. Since beginning operations in 2000, Egenera had acquired its internal-use software on an ad hoc basis. The company s IT infrastructure included open source solutions and other licensed software. This mixed environment did not scale with the company s desired level of employee collaboration and customer service. Egenera decided to standardize on a Microsoft solution and signed a Microsoft Enterprise Agreement license. This step simplified the acquisition of an easily-maintained Microsoft infrastructure, and is expected to result in savings of an estimated U.S.$212,000. Egenera customers are enjoying a user-friendly, reliable support portal and employees are creating online team sites and will be soon be using corporate-wide instant messaging to foster closer collaboration.
2 There had been a tendency in Egenera to build our own solutions. Microsoft technologies, which offer a standardized infrastructure at an attractive price point, are a better solution for Egenera. Technology, Egenera Situation Headquartered in Marlboro, Massachusetts, Egenera delivers enterprise computing solutions that simplify data center operations and infrastructure. The Egenera BladeFrame system's unique virtualization software, Egenera PAN Manager software, dynamically allocates and repurposes virtual and physical servers to applications as needed without manual intervention. Customers choose Egenera virtualization solutions to achieve higher resource utilization, faster application time to market, lower total cost of ownership, and overall data center agility. Since its inception in 2000, Egenera s management had acquired the company s internal-use software on a project-by-project basis. Over the years, this ad hoc approach to license management taxed administrative and IT employees. They had to ensure that Egenera remained in compliance with multiple purchase orders relating to different software versions operating across the company. Some proposed projects were not granted approval, based simply on the cost of acquiring additional server licenses. We were looking at ways to improve how we plan to purchase software to support our employees and our business goals, says Technology. So when we started preparing for several important IT projects in the spring of 2007, we took the opportunity to reevaluate our acquisition policies. We particularly wanted to find an alternative to how we purchased laptops from our OEM, with licenses for both the operating system and Microsoft Office tied to the specific machine. On average, we replace 30 percent of our laptops every year, and we had to repurchase the licenses for each one. In early 2007, Egenera management considered Microsoft Office SharePoint Server 2007 to replace a customer-facing portal, called SourceView, where customers could download software upgrades and bug fixes, and access documentation and FAQs. The existing portal was a highly customized Java application with an Oracle database back end, requiring IT staffers with skills in Oracle database administration and Java programming to accomplish minor configuration changes. According to Collins, the portal consumed more IT resources than its functionality warranted. The authentication, account creation, and single sign-on pieces were developed in house by an IT staffer no longer with the company. These Java applets were not as reliable as we would have liked, which inconvenienced our customers. IT staffers had to clean up scripts and recycle the servers, he says. We wanted a more reliable site that would provide better customer service and be easier to manage. Also, Egenera executives were excited about using Office SharePoint Server 2007 to create a new corporate intranet so that employees could communicate and collaborate more efficiently. Typically staff used the telephone or sent documents as e- mail attachments. The existing intranet was built on an Apache Web server running the Linux operating system, with a client user interface developed using the Java programming language. This solution offered limited document and content management capabilities. Employees in the company s product management department used Concurrent Versions System for their revision control and check-in and check-out functionality. According to Collins, it was a cumbersome process to ensure that permissions were set correctly and minor changes to the layout and structure to mirror product lines were sometimes impossible to perform.
3 It was clear that there was a definite benefit to an enterprise agreement. The numbers supported our decision for the enterprise-wide Office SharePoint Server 2007 deployment alone. Technology, Egenera Our intranet had a very basic front end and the whole structure was no more than a collection of static pages, a company directory, and links to employee benefits, says Collins. Even for that, our departmental staff had to learn HTML and use a Web editor to update pages, which was time consuming. Egenera was planning other significant projects that included moving from Microsoft Exchange Server 2003 to Exchange Server 2007 and deploying Microsoft Office Communications Server 2007 to support presence awareness and security-enhanced Instant Messaging capabilities for employees in Egenera offices throughout the world. Finally, Egenera wanted to begin a gradual rollout of Microsoft Office Professional 2007 to coincide with its desktop computer and laptop refresh program. With these projects in mind, Collins consulted with Egenera s Microsoft contacts and with its VAR (Value Added Reseller) partner, Presidio, a Microsoft Gold Certified Partner. During initial meetings, all parties confirmed that Microsoft technologies would best support the company s long-term strategic vision. There had been a tendency in Egenera to build our own solutions, for example, a home-grown file repository sitting on top of Oracle for our customer-facing portal, says Collins. The people who had developed these applications were no longer at the company, and there were so many pieces of Java and XML code cobbled together, it was a support nightmare. Originally, these decisions were made based on comparing software licensing costs vs. developing applications on the Open Source platform, but the decision makers didn t factor in ongoing support costs. Microsoft technologies, which offer a standardized infrastructure at an attractive price point, are a better solution for Egenera. During these discussions, Presidio introduced Egenera to SoftwareONE. As a Microsoft LAR (Large Account Reseller), SoftwareONE provides software license procurement and software agreement management services to small, medium, and enterprise-level customers. Using a consultative approach, Microsoft, Presidio, and SoftwareONE presented licensing options for Egenera. They also helped the company decide what would be the most cost-effective, strategic approach to obtain the latest versions of Microsoft server and desktop technologies for its communication and collaboration requirements. Solution Egenera chose a Microsoft Core Client Access License (CAL) Suite agreement. This threeyear Enterprise Agreement volume licensing contract encompasses four foundational Microsoft server products: the Windows Server 2003 R2 operating system, Microsoft Exchange Server 2007, Microsoft Office SharePoint Server 2007, and Microsoft Systems Management Server 2003 R2. Egenera s Core CAL suite also includes Microsoft Office Professional 2007 and the Windows Vista Enterprise operating system for desktop computers. At more than 300 employees, Egenera just makes it into the enterprise category, and I wanted to provide a compelling business case to management, says Collins. It was clear that there was a definite benefit to an enterprise agreement. The numbers supported our decision for the enterprisewide Office SharePoint Server 2007 deployment alone. We also took advantage of Microsoft financing options, which enabled us to acquire the technology today to deploy later, according to the needs of our schedule.
4 With its Enterprise Agreement, Egenera acquired additional benefits under Software Assurance for Volume Licensing, a maintenance offering that it can use to amplify the value of its technology investment. Software Assurance provides access to new version rights of any software included under the agreement. The company plans to upgrade to Windows Server 2008 in the second half of 2008 and move from Windows XP Professional to Windows Vista as hardware is replaced. Egenera was also attracted to other components of Software Assurance, including predictable yearly payments, and a host of other benefits that would extend the ability of IT staff and information workers to make the most out of Egenera s technology investments. As its first priority, Egenera partnered with Presidio to replace its customer-facing portal with Office SharePoint Server 2007 and launch a new corporate intranet. The customer-facing Egenera Service Portal went live January 2008 and the intranet is currently under construction. Egenera is planning to roll out Office Communications Server 2007 to the IT and engineering departments in a pilot project in July Egenera plans the move to Exchange Server 2007 for later in Meanwhile, the company is rolling out Microsoft Office Professional 2007 to end users as part of its hardware refresh program. Benefits In the year since signing its Enterprise Agreement, Egenera increased the value of its technology acquisitions through significant cost savings, reduced administrative overhead, support tools, training, and other benefits under Software Assurance. Egenera employees are quickly deploying and familiarizing themselves with the new technology, reducing the time it takes for them to benefit from integrating it into their work lives. And with Microsoft server and desktop technologies in place, Egenera has the infrastructure it needs to scale customer service and boost internal communication and collaboration. Microsoft licensing policies provide a simple and cost-effective way to benefit from a core suite of integrated technologies, says Collins. Egenera gained a technology infrastructure with long-term value. Increasing the Value of Technology Investments Compared to purchasing its Microsoft technology the old way, through an Open License Agreement, Egenera is saving approximately U.S$172,000 in the first three years. After year three, when the Enterprise Agreement is renewed, Egenera is only required to pay for Software Assurance. Then the savings will increase to approximately $212,000 over six years. Because Egenera purchased Microsoft Office Professional 2007 licenses, it no longer will acquire that product from its OEM when new laptop or desktop purchases are made. For this reason, the company expects significant savings as it rolls out the latest version of desktop productivity software to its employees. We are achieving a savings of $350 per machine, says Collins. Our normal machine replacement rate hovers between 70 and 100 a year. So going forward, we can expect to save between $24,000 and $35,000 annually. Egenera has gained other ongoing benefits, including simplified license administration with standard, monthly payments that help it better control its IT costs and forecast IT budgets up to three years in advance. Egenera can take advantage of the annual true-up capability, which allows businesses to run software on desktops as they are acquired each year, then pay a
5 predetermined price for the licenses at each anniversary date. and grant access easier and more intuitively than before. The Egenera Service Portal (ESP) is a reliable resource for our customers, who no longer have to contend with problematic account creation and sign-on procedures. Technology, Egenera Using support tools available under Software Assurance, Egenera s IT staff can improve the business value of the company s new technologies. The company used training vouchers, which it redeemed with New Horizons Computer Learning Center, a Microsoft Gold Certified Partner, to train IT staff on SharePoint technologies and Exchange Server Thanks to this training, we can optimize end-user experience by efficiently deploying and maintaining these products, says Collins. We saved time and money deploying Office SharePoint Server. And thanks to Microsoft elearning, many people in different departments have taken the step to educate themselves about SharePoint technologies, improving productivity, and reducing our help-desk and training costs. Using another feature of Software Assurance, the Home Use Program, Egenera can increase the value of its IT investments. Egenera employees are just beginning to take advantage of this program: they can get a licensed copy of Microsoft Office Professional 2007 for use at home, where they can learn about the latest version s new features. Collins expects that the Home Use Program will cut training costs and give Egenera staff more flexibility in work options. Enhancing Customer Service Egenera s new customer portal that it built using Office SharePoint Server 2007 helped contribute to improved customer service. The Egenera Service Portal (ESP) is a reliable resource for our customers, who no longer have to contend with problematic account creation and sign-on procedures, says Collins. The portal now has a much better user interface, and it s easier to navigate. And in IT, we can create accounts Boosting Communication and Collaboration The company is excited about the potential of its new intranet, currently under construction. Because SharePoint technologies are so easy to use, Collins reports that information workers are already creating team sites on the fly and assigning access rights to individuals to support collaboration on crossfunctional teams. He set up a SharePoint site in less than an hour for the product management team, including 10 different product versions and sub sites. They took what I had done and are continuing to customize the site to meet their needs, he says. From an IT perspective, this intuitive technology takes a burden off my group. And the tight integration with Office Professional 2007 will be an added bonus. People can assign tasks and share calendars from within Office SharePoint Server to increase collaboration and efficient team work. Egenera is also planning to take advantage of the workflow capabilities built into Office SharePoint Server 2007 to automate collaborative and administrative process. For example, the company is streamlining its process to bring newly hired employees into the company, which now occurs within a Java application, but will be migrated to a SharePoint-based workflow. Managers will have a check list to follow that outlines a prescribed series of steps. These involve automated forms distribution and messages among several departments, including human resources, tech support, and reception, explains Collins. Egenera sales representatives and IT support staffs in offices around the world are looking forward to the time when the company rolls out Office Communications Server 2007 in order to streamline communications with
6 For More Information For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) In Canada, call the Microsoft Canada Information Centre at (877) Customers who are deaf or hard-ofhearing can reach Microsoft text telephone (TTY/TDD) services at (800) in the United States or (905) in Canada. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to: For more information about SoftwareONE products and services, visit the Web site at: For more information about Presidio products and services, visit the Web site at: colleagues. We see instant messaging and presence awareness as the first step towards ubiquitous communications within Egenera, says Collins. For example, the help desk can use it to communicate about a support issue, to give advice, and to deliver files. Or a sales rep in a demo can quickly connect to our network to check if a subject matter expert is online to answer a tricky question from a customer. Collins concludes, Since acquiring our Microsoft solution, we are well on the way to achieving a new paradigm of productivity at Egenera. Microsoft Volume Licensing Microsoft Volume Licensing offers customized programs that are designed to meet the needs of your business. Tailored for companies of different sizes and purchasing preferences, these Volume Licensing programs provide simple, flexible, and affordable solutions that can help you manage your licenses with ease. Whether you have five or thousands of desktop PCs, Microsoft Volume Licensing has the right program for you. To acquire the latest Microsoft technology at a significant cost savings through Microsoft Volume Licensing, contact your Microsoft Partner or local reseller. To learn more about Microsoft Volume Licensing, visit: For more information about Egenera products and services, call (508) or visit the Web site at: Software and Services Microsoft Server Product Portfolio Microsoft Exchange Server 2007 Microsoft Systems Management Server 2003 R2 Windows Server 2003 R2 Microsoft Office Microsoft Office Professional 2007 Microsoft Office Communications Server 2007 Microsoft Office SharePoint Server 2007 Windows Vista Partners Presidio SoftwareONE Hardware Servers: Egenera Desktop: Dell Latitudes This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Document published July 2008
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