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1 Infrastructure Optimization Analysis for Infrastructure Optimization Analysis for Core IO Case Study - Standardized at Core IO Case Study - Standardized at Company XYZ Company XYZ By : John Kane By : John Kane Microsoft Corporation Microsoft Corporation November 8, 2007 November 8, 2007
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Microsoft IO Desktop Case study - Standardize.ppt 2

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Page 1: Microsoft IO Desktop Case study - Standardize.ppt 2

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Infrastructure Optimization Analysis forInfrastructure Optimization Analysis forCore IO Case Study - Standardized at Core IO Case Study - Standardized at

Company XYZCompany XYZ

By : John KaneBy : John KaneMicrosoft CorporationMicrosoft Corporation

November 8, 2007November 8, 2007

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Agenda

Infrastructure Optimization Strategy and Research

The Value of IOM – Your Personal Analysis

Recommendations and Next Steps

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Infrastructure Optimization Management (IOM) Strategy and Benefits

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Desktop

Server

Generating ValueThroughImprovingIT OperationswithBest Practices

ManagingWindowsServers

Product Focused

Strategy

Microsoft-IDC Projects

ManagingtheWindowsDesktop

IdentityandAccessMgmt

SystemsMgmtServer

BusinessValue ofWindowsVista(Enterprise)

BusinessValue ofWindowsVista(Midmarket)

ManagingCollaborativeandMessagingSystems

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End-user Downtime

Poorly IntegratedSolutions

SecurityThreats

Manual Processes

TechnologyChange

InfrastructureComplexity

CostPressures

InflexibleArchitectures

IT ServiceManagement

IT Challenges Today

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Lower yourIT costs

Evolve IT to become a strategic asset

Improveyour businessagility

Realize theValue of your IT infrastructureinvestments

Our Goal

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Business ProductivityOptimization

Aspects of Infrastructure Optimization

Core InfrastructureOptimization

Application PlatformOptimization

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Aspects of Infrastructure Optimization

Business ProductivityOptimization Core Infrastructure

Optimization

Application PlatformOptimization

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Aspects of Infrastructure Optimization

Business ProductivityOptimization Core Infrastructure

Optimization

Application PlatformOptimization

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Managed ITInfrastructure

LimitedKnowledge

Capture

LimitedAutomation

Managed &Consolidated ITInfrastructure

ExtensiveKnowledgeCapture &

Use

ExtensiveAutomation

Uncoordinated,Manual

Infrastructure

KnowledgeNot Captured

Security Risk

Inefficient

FullyAutomated

Management

AutomatedKnowledge

Capture & Use

DynamicResource Usage

Business-linkedSLAs

Infrastructure Optimization Model

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Infrastructure Optimization Model

Managed ITInfrastructure

LimitedKnowledge

Capture

LimitedAutomation

Managed &Consolidated ITInfrastructure

ExtensiveKnowledgeCapture &

Use

ExtensiveAutomation

Uncoordinated,Manual

Infrastructure

KnowledgeNot Captured

Security Risk

Inefficient

FullyAutomated

Management

AutomatedKnowledge

Capture & Use

DynamicResource Usage

Business-linkedSLAs

Which of the descriptions abovebest matches your current IT environment?

Which of the descriptions abovebest matches your current IT environment?

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Annual IT Labor Costs Comparison by IT Optimization Level

Number of respondents = 141Source: IDC, 2006

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The Value of IOM? An Analysis of Company XYZ’s

Unique Opportunities and Value Potential

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Project Participants, Roles and RecapROI Analysis Project Overview

ROI analysis conducted to assess the costs and benefits of implementing the Core IO Case Study - Standardized for Company XYZThe project is managed by Jane Smith for the group

Tool, model and data are all third-party standard information created by leading industry research firms:

IDCthe premier global market intelligence and advisory firm in the information technology and telecommunications industries. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets, and our management team is comprised of experienced and respected industry luminaries.

Alineanthe leading developer of ROI and TCO analysis methodologies and tools. Over 10 years of intense experience in developing ROI and TCO models and tools. Largest database of IT spending and TCO benchmarks. Formed by Gartner alumni and original creators of Gartner TCO Manager/Analyst product line.

Data collectionReviews and additional interviews and refinementAssumptions / Scope

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Company XYZ Profile / Overview

Company XYZ was analyzed and the following company profile information was documented with the team:Industry: Financial ServicesLocation: United StatesGroup Analyzed: Mid-Market SegmentNumber of users supported: 5,000 users Users were distributed as follows:

Higher performance workers - 5.0% or 250 workers

Knowledge workers - 47.0% or 2,350 workers

Structured task workers - 33.0% or 1,650 workers

Data entry workers - 15.0% or 750 workers

Road warriors - 10.0% or 500 workers

The organization consists of the following site profile:3 headquarters / campus / main sites and 30 satellite / branch offices1 different countries / regions10 unique business units55.0% local IT support (versus remote with travel to provide local)

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Company XYZ Client Profile / Overview

Total number of PCs were found to be: 5,000 including 3,500 desktops and 1,500 laptops. The current PC profile was found to be as follows:

Microsoft Windows Vista / Vista Enterprise - 0.0% or 0 PCsMicrosoft Windows XP SP2 - 0.0% or 0 PCsMicrosoft Windows XP - 100.0% or 5,000 PCsMicrosoft Windows 2000 Pro - 0.0% or 0 PCsMicrosoft NT4 Workstation and Windows 95/98 - 0.0% or 0 PCsNon-Microsoft Client Computers - 0.0% or 0 PCs

Total number of thin clients were found to be: 0Total number of Microsoft Windows Mobile messaging devices was found to be 1,500 and Other mobile devices were: 0

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Company XYZ Server, Storage & Network Profile / Overview

The total number of servers was indicated to be 271, with the following workload profile:

143 File / Print Servers50 Directory / Networking Servers33 Security Servers28 Messaging and Collaboration Servers17 Other Servers

The current servers were determined to have the following operating system profile:

0 Windows NT Servers0 Windows 2000 Servers271 Windows Server 2003 servers0 Linux Servers0 UNIX Servers0 Other OS Servers

The total storage was determined to be 5,189.7 GB in total, with total per server of:

1,430.0 GB for File / Print Servers500.0 GB for Directory / Networking Servers330.0 GB for Security Servers2,441.4 GB for Messaging and Collaboration Servers488.3 GB for Other Servers

The organization was determined to spend $90,000 WAN networking fees between main sites and branch offices, and $500,000 annually on dedicated security hardware (not included in security servers above) for VPN, firewalls for offices

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Company XYZ Opportunities / Findings

Is currently at a Standardized infrastructure optimization level, on measured progressive levels of maturity, cost reductions and service from Basic, through Standardized and Rationalized, onto Dynamic.Currently spends $2,219.03 in total direct costs per user per year consisting of:$785.47 in IT operations and administration labor or equivalents per user per year ($3,927,350 total), including:

$331.38 per user ($1,656,900 total) for client computer operations and administration (including PC engineering, PC image management, PC security management and PC security risk mitigation)$210.02 per user ($1,050,100 total) for server operations and administration, server image management, server security patch management and server security risk mitigation$204.73 per user ($1,023,650 total) for service desk$39.34 per user ($196,700 total) for tools and directory management

Commits 32.89 total for in-house FTEs and 0.00 outsourced / contract total FTEs to core infrastructure management, including 24.39 for client computer operations and administration and 8.50 for server operations and administrationReceives an average of 5,048.0 service desk calls per month to the service desk per user including 398.8 escalated level 2 calls per month, and 368.5 escalated level 3/ dispatched calls per month$606.00 in IT capital per user per year including costs for PC hardware and software, thin client hardware and software, mobile messaging device hardware and software, server hardware and software, storage hardware and software, and dedicated security hardware costs$350.33 in additional operating expenditures (non-labor) per year including support and maintenance contracts, facilities and overhead costs, WAN bandwidth expendituresCurrently has $1,156,900 in total indirect (soft) costs ($231.38 per user) including costs for end user operations, service desk user impacts and availability.

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Current Practices Assessment

Basic - 1 Standardized - 2 Rationalized - 3 Dynamic - 4

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PC IO RecommendationsExamining the current practices, the analysis indicated that the organization could improve to a Rationalized level by implementing the following Optimized PC Infrastructure practices:

Optimized PC Infrastructure Recommended Practices Selected?

Centrally Managed PC Settings and Configurations

No or limited administrative rights assigned to end users Yes

Group Polices are used to prevent users from changing system settings that jeopardize PC reliability and security

Yes

Group Policies are used to ensure that users only install IT sanctioned software Yes

Push/pull automated software distribution and / or virtualized dynamic application delivery (streaming) Yes

Standard Desktop Strategy

Enforcing PC procurement policies for standardized hardware, software and system configurations Yes

Standardization upon the latest Windows operating system within 18 months of release (Vista / Vista Enterprise)

Yes

Use of a minimal number of corporate images Yes

Comprehensive PC Security

Notebooks and desktops are equipped with antivirus utilities No

Notebooks and desktops are equipped with anti-spyware/malware utilities No

Notebooks are protected by centrally managed PC firewalls Yes

Network Access Control (NAC) is used for PCs entering the network No

Automated patch distribution system is in place for all notebooks and desktops No

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PC IO RecommendationsExamining the current practices, the analysis indicated that the organization could improve to a Rationalized level by implementing the following Optimized Identity and Access Management with Active Directory practices:

Optimized Identity and Access Management with Active DirectoryRecommended Practices Selected?

Data Protection & Recovery

Backup/restore solution on all desktops, with an SLA No

PCs Managed by Group Policy Objects

Users are prevented from editing the registry Yes

Approved applications are published in the directory Yes

Operating system settings are configured by Group Policy Objects (GPOs) Yes

Start menu is configured and icons were limited / optimized Yes

Start-up and log-in scripts are pushed to PCs Yes

Internet settings are configured by GPOs Yes

Security settings were configured by GPOs Yes

Application settings were configured by GPOs Yes

Comprehensive Directory Solution

Standardizing on a single directory for authentication No

Simplified sign-on by synchronizing directories with meta directory service No

Automated password reset Yes

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PC IO RecommendationsExamining the current practices, the analysis indicated that the organization could improve to a Rationalized level by implementing the following Systems Management practices:

Recommended Practices Selected?

Reduction of Third-Party Application Directories

Reducing the number of third party application directories No

Automated User Provisioning

Use of packaging tools with automated software distribution No

Improved System Management

Use of packaging tools with automated software distribution Yes

Standardizing on a single systems management infrastructure No

Centrally managed PC applications No

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Server IO RecommendationsExamining the current practices, the analysis indicated that the organization could improve to a Rationalized level by implementing the following server practices:

Optimized Sever Infrastructure Recommended Practices Selected?

Improved Server Management Standards

Server clustering Yes

Load balancing within service/cluster Yes

Standardized Process for Server Adds, Moves and changes Yes

Virtualization Utilized Yes

Workload Management Utilized No

Standardized hardware Yes

ISO 27001 Certified No

Improved Ability to Add Server Capacity

Server Imaging or Cloning Yes

Standardized Images Yes

Automated deployment process Yes

Ability to deploy w/o downtime Yes

Automated integration with Systems Management Yes

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Server IO RecommendationsExamining the current practices, the analysis indicated that the organization could improve to a Rationalized level by implementing the following server practices:

Optimized Sever Infrastructure Recommended Practices Selected?

Improved Server Troubleshooting/Failure Resolution

Automated trouble handling Yes

Integrated with main trouble handling infrastructure Yes

Ability to decommission w/o downtime Yes

Integrated with Vendor QA infrastructure Yes

Improved New Server Software/Versions Management

Software Imaging or Cloning Yes

Standardized Images Yes

Automated deployment process Yes

Automated integration with Systems Management Yes

Improved Server User Administration (adds, changes, removals)

Automated Provisioning Yes

Automated De-commissioning Yes

Integration with central ID / Metadata Yes

Single Sign-On Yes

Improved Server Maintenance

Integration with predictive maintenance database Yes

Remote Diagnostics capability Yes

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Server IO RecommendationsExamining the current practices, the analysis indicated that the organization could improve to a Rationalized level by implementing the following server practices:

Optimized Sever Infrastructure Recommended Practices Selected?

Improved Server Operating System Maintenance

Automated Patch testing Yes

Automated Patch deployment/rollback Yes

Remote Diagnostics capability No

Remote 'healing' capability No

Improved Server Application/Service Maintenance

Automated Patch testing Yes

Automated Patch deployment/rollback Yes

Ability to deploy w/o downtime Yes

Remote Diagnostics capability No

Remote 'healing' capability No

Integrated with trouble handling infrastructure Yes

Improved Server Storage and File Management

Automated Archiving of Content No

Hierarchical Storage Management (HSM) No

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Server IO RecommendationsExamining the current practices, the analysis indicated that the organization could improve to a Rationalized level by implementing the following server practices:

Optimized Sever Infrastructure Recommended Practices Selected?

Improved Server Backup and System Recovery

Automated Backup No

Automated Restore No

Recovery Automation Yes

Self Healing No

Improved Server Daily Monitoring

Thresholding of basic parameters No

Thresholding of advanced parameters No

Performance Tuning, Traffic Management, Capacity Management Yes

Thresholding of performance parameters No

Improved Server Threat / Situation Assessment

Integration with Intrusion Detection System (IDS) Yes

Standardized Security Process Yes

Automated System Isolation Yes

Out of band management Yes

Automated System Re-configuration No

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Expected IT Labor Productivity Improvements

Annual Labor Costs per User Current (As Is)

Optimized(To Be)

Annual Benefits per

User

PC Operations and Administration $331.38 $189.27 $142.11

Server Operations and Administration

$210.02 $141.35 $68.67

IT Service Desk $204.73 $90.27 $114.46

Tools and Directory Management $39.34 $33.61 $5.73

Total Annual Labor Costs per User $785.47 $454.50 $330.97

Total Annual Labor Costs $3,927,350 $2,272,500 $1,654,850

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Expected Additional Direct Cost Avoidance

Annual Costs per User Current (As Is) Optimized

(To Be)

Annual Benefits per

User

Client Hardware Purchases $427.38 $501.78 $0.00

Client Software Purchases $0.00 $52.98 $0.00

Client Maintenance and Support Contracts $90.00 $90.00 $0.00

PC Power $90.96 $61.40 $29.56

Server Hardware Purchases $78.62 $54.41 $24.21

Server Software Purchases $0.00 $22.08 $0.00

Server Maintenance and Support Contracts $128.49 $90.03 $38.46

Server Facilities and Overhead $22.88 $16.24 $6.65

WAN Network Bandwidth $18.00 $18.00 $0.00

Dedicated Security Hardware $100.00 $97.00 $3.00

Total per User per Year $956.33 $1,003.92 $101.88

Total per Year $4,781,650 $5,019,600 $509,400

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Additional Indirect Benefits

Additional Indirect and Business Benefits Annual Indirect and Business Benefits

per User

Reduced end user operations costs $114.53

Reduced service desk problem resolution downtime $41.44

Reduced PC unplanned downtime $15.45

Reduced PC planned downtime $0.91

Reduced server unplanned downtime $50.72

Reduced server planned downtime $0.52

Reduced security breach user impacts $9.95

Reduced PC data loss / recovery costs $0.96

Improving search effectiveness $40.91

Improving search efficiency $104.54

Improving business agility - new applications development and deployment

$341.78

Improving business agility – reorganizations, mergers and acquisitions

$125.61

Total Indirect and Business Benefits $847.32

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Recommended Microsoft SolutionsThe investment to achieve these best practices and implement the requisite infrastructure is estimated to be $1,227,285 initially, and $2,655,892 over the 3 year analysis period. The costs consist of $1,227,285 in capital investments, and $1,428,607 in operational investments.

Proposed Technology Needed to Implement Selected Best Practice Improvements Selected?

Windows Vista / Vista Enterprise upgrade Yes

Additional features of Windows Vista Enterprise No

Windows Server 2003 R2 upgrade No

Active Directory configured and deployed (upgrade or new implementation) No

The development and deployment of Group Policy Objects (GPO) Yes

The use of Microsoft Systems Management Server (SMS) 2003 (upgrade or new implementation)

No

Microsoft Desktop Optimization Pack for Software Assurance (SA) No

SoftGrid Application Virtualization No

Asset Inventory Services (AIS) No

Diagnostic and Recovery Toolset (DART) No

Advanced Group Policy Management (AGPM) No

Desktop Error Monitoring (MSCDEM) No

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Recommended Microsoft Solutions

Proposed Technology Needed to Implement Selected Best Practice Improvements Selected?

Anti-virus software No

Anti-spyware / malware software No

Network access control software No

Microsoft Identity Integration Server or other meta directory solution for directory and password synchronization

Yes

Self-service password reset software Yes

Microsoft Operations Manager (MOM) Yes

Server virtualization (Microsoft Virtual Server, VMware Virtual Infrastructure 3) Yes

Microsoft Visual Studio 2005 and .NET Framework No

Wise or InstallShield Packaging Tools No

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TCO ComparisonComparing the TCO of the current environment versus the proposed optimization plan indicates a total available savings of $2,741,704 per year (on average), and $8,225,110 cumulative over 3 year analysis period.

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TCO Summary (1-year average)

TCO Comparison Average by Year Solution A Current (As Is) - Standardized

Solution B Optimized (To

Be) - Rationalized

Difference(A - B)

Difference(A - B)%

IT Costs

Client Hardware Purchases $2,545,617 $2,669,612 ($123,995) -4.9%

Client Software Purchases $138,335 $226,635 ($88,300) -63.8%

Client Maintenance and Support Contracts $472,875 $472,875 $0 0.0%

PC Power $477,909 $322,590 $155,319 32.5%

Server Hardware Purchases $411,852 $284,070 $127,782 31.0%

Server Maintenance and Support Contracts $674,489 $485,138 $189,351 28.1%

Server Facilities and Overhead $120,004 $85,082 $34,922 29.1%

Server Software Purchases $49,638 $71,941 ($22,304) -44.9%

PC Operations and Administration $1,810,467 $1,034,056 $776,411 42.9%

Server Operations and Administration $1,147,446 $772,261 $375,185 32.7%

IT Service Desk $1,118,523 $493,179 $625,343 55.9%

Tools and Directory Management $214,921 $183,636 $31,285 14.6%

WAN Network Bandwidth $94,575 $94,575 $0 0.0%

Dedicated Security Hardware $525,417 $509,654 $15,762 3.0%

Additional OS Licensing Rights for Virtual PC with Vista Enterprise

$0 $0 $0 0.0%

Incremental Reduction in Image Management with Vista Enterprise

$0 $0 $0 0.0%

Optimized Infrastructure Investment - IT Capital Investment

$0 $160,000 ($160,000) 0.0%

Optimized PC Infrastructure Investment - IT Labor and Service

$0 $420,942 ($420,942) 0.0%

Total IT Costs $9,802,067 $8,286,247 $1,515,820 15.5%

Business Operating Costs

Optimized PC Infrastructure Investment - Business Unit Investment

$0 $55,260 ($55,260) 0.0%

End User Operations $2,607,319 $1,981,562 $625,756 24.0%

Service Desk Problem Resolution Downtime $317,288 $90,873 $226,415 71.4%

PC Unplanned Downtime $144,023 $59,596 $84,427 58.6%

PC Planned Downtime $47,181 $42,214 $4,966 10.5%

Server Unplanned Downtime $643,636 $366,516 $277,121 43.1%

Server Planned Downtime $7,152 $4,290 $2,862 40.0%

Security Breach User Impact $89,095 $34,744 $54,352 61.0%

PC Data Loss / Recovery $15,734 $10,489 $5,245 33.3%

Total Business Operating Costs $3,871,428 $2,645,544 $1,225,884 31.7%

Total $13,673,495 $10,931,791 $2,741,704 20.1%

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Benefits SummaryExamining the benefits from implementing the plan results in cumulative 3 year savings of $6,482,114 in direct benefits, and $6,359,680 in indirect (soft) benefits.

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Benefits Summary Benefits Summary Year 1 Year 2 Year 3 Total

Total Benefits (to Solution B from Current (AS IS))

$3,257,178 $4,592,788 $4,991,829 $12,841,795

Top Benefits

PC Operations and Administration $532,908 $758,506 $826,771 $2,118,185

End User Operations (Indirect) $429,502 $611,325 $666,344 $1,707,172

IT Service Desk $429,219 $610,922 $665,904 $1,706,045

Improve Search Efficiency (Indirect) $392,006 $557,956 $608,172 $1,558,134

Server Operations and Administration $257,517 $366,532 $399,520 $1,023,570

Server Unplanned Downtime (Indirect) $190,208 $270,730 $295,095 $756,033

Service Desk Problem Resolution Downtime (Indirect)

$155,405 $221,193 $241,100 $617,698

Improve Search Effectiveness (Indirect) $153,394 $218,330 $237,980 $609,704

Server Maintenance and Support Contracts $144,219 $198,668 $211,232 $554,118

Current Business Agility - New Applications Development and Deployment (Indirect)

$128,169 $182,427 $198,845 $509,441

All other included benefits $444,630 $596,199 $640,866 $1,681,695

Total Top Benefits $3,257,178 $4,592,788 $4,991,829 $12,841,795

Direct Benefits $1,657,164 $2,315,435 $2,509,516 $6,482,114

Indirect Benefits $1,600,015 $2,277,352 $2,482,314 $6,359,680

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Top Benefits

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Benefits By Goal and Stakeholder

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Investment RequiredThe total investment is expected to be $1,227,285 in non-recurring Initial costs, with an additional $2,655,892 cumulative recurring costs over the next three years.

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Investment Breakdown

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Investment Summary

Investment Summary Initial Year 1 Year 2 Year 3 Total

Total Investment $1,227,285 $1,421,663 $3,472 $3,472 $2,655,892

Capital Expenditure

Virtualization Software Licensing (IT) $480,000 $0 $0 $0 $480,000

PC Hardware Upgrade Costs (IT) $371,985 $0 $0 $0 $371,985

Windows Vista Operating System Upgrade Costs (IT)

$264,900 $0 $0 $0 $264,900

MOM Licensing Costs (IT) $110,400 $0 $0 $0 $110,400

Security and Identity Access Management Utilities (IT)

$0 $0 $0 $0 $0

Client Access Licenses (IT) $0 $0 $0 $0 $0

PC New Hardware Costs (IT) $0 $0 $0 $0 $0

Group Policy Software Utilities (IT) $0 $0 $0 $0 $0

Exchange Server 2003 Licensing Costs (IT) $0 $0 $0 $0 $0

Server Hardware Purchase Costs (IT) $0 $0 $0 $0 $0

New Mobile Messaging Devices (IT) $0 $0 $0 $0 $0

New Thin Clients (IT) $0 $0 $0 $0 $0

Application Development and Customization Software (IT)

$0 $0 $0 $0 $0

SMS Hardware and Software (IT) $0 $0 $0 $0 $0

Windows Server 2003 Operating System Licensing Costs (IT)

$0 $0 $0 $0 $0

Active Directory Hardware and Software Upgrades or Additions (IT)

$0 $0 $0 $0 $0

Microsoft Desktop Optimization Pack Hardware and Software (IT)

$0 $0 $0 $0 $0

Server Hardware Upgrade Costs (IT) $0 $0 $0 $0 $0

Software Assurance (IT) $0 $0 $0 $0 $0

Personal Productivity Software (IT) $0 $0 $0 $0 $0

Business Application Software (IT) $0 $0 $0 $0 $0

Total Capital Expenditure $1,227,285 $0 $0 $0 $1,227,285

Operating Expenditure

PC Upgrade IT Labor and Services (IT) $0 $839,909 $0 $0 $839,909

Group Policy IT Labor and Services (IT) $0 $220,811 $0 $0 $220,811

Server Training and Learning (IT) $0 $137,587 $0 $0 $137,587

Upgrade User Task Productivity Impact (BU) $0 $87,946 $0 $0 $87,946

User Training and Learning Costs (BU) $0 $62,144 $0 $0 $62,144

MOM IT Labor and Services (IT) $0 $40,218 $0 $0 $40,218

Incremental Best Practice Implementation Labor Costs (IT)

$0 $17,358 $3,472 $3,472 $24,302

Incremental Service Desk Calls - User Downtime (BU)

$0 $10,818 $0 $0 $10,818

Upgrade Downtime Impact (BU) $0 $4,872 $0 $0 $4,872

Security and Identity Access Management Utilities IT Labor and Services (IT)

$0 $0 $0 $0 $0

Microsoft Desktop Optimization Pack IT Labor and Services (IT)

$0 $0 $0 $0 $0

Server Hardware and OS Deployment Labor (IT) $0 $0 $0 $0 $0

Application Development and Customization Labor and Services (IT)

$0 $0 $0 $0 $0

Other Business Unit Costs (BU) $0 $0 $0 $0 $0

Other IT Costs (IT) $0 $0 $0 $0 $0

Exchange 2003 Deployment Labor and Services (IT)

$0 $0 $0 $0 $0

SMS IT Labor and Services (IT) $0 $0 $0 $0 $0

Active Directory IT Labor and Services (IT) $0 $0 $0 $0 $0

Total Operating Expenditure $0 $1,421,663 $3,472 $3,472 $1,428,607

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Cumulative Costs vs. Cumulative Benefits

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ROI Analysis

ROI Analysis (Solution B) (Probable Case) Initial Year 1 Year 2 Year 3

Benefits (to Solution B from Current (AS IS)) $0 $3,257,178 $4,592,788 $4,991,829

Cumulative Benefits $3,257,178 $7,849,966 $12,841,795

Investment (Solution B) $1,227,285 $1,421,663 $3,472 $3,472

Cumulative Investment $1,227,285 $2,648,948 $2,652,420 $2,655,892

Cash Flow ($1,227,285) $1,835,515 $4,589,316 $4,988,357

Cumulative Cash Flow ($1,227,285) $608,230 $5,197,546 $10,185,903

ROI 384%

Risk Adjusted ROI 319%

NPV Savings $8,075,926

IRR 211%

Payback period (including deployment period) 10 month(s)

Risk Adjusted Discount Rate 9.5%

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Summary of Core IO ROI AnalysisOverall, the proposed infrastructure optimization project is expected to take Company XYZ from:

its current Standardized level

to Rationalized.

The proposed improvements, from the current (as is) IO level, to the proposed (to be), is projected to yield the following results:

Reduces net total costs per user per year from $2,450.41 to $2,312.87

Improves overall IT productivity through task automation and proactive avoidance, reducing labor related efforts on Client and Server IT Operations and Administration from:

32.89 full time equivalents (FTEs) in-house resources to 18.49 FTEs under the optimization plan, a reallocation opportunity of 14.40 FTEs (Year 1)

0.00 FTE out-sourced / contract resources to 0.00 FTEs under the optimization plan, a reallocation opportunity of 0.00 FTEs (Year 1)

Reduce the need for managed services from $0 to $0 per year (Year 1)

Reduces service desk calls from 5,048.0 total calls per month to 2,852.1 total calls per month

Helps avoid net total capital expenditures for servers, client computers and software of $848,875 over the next 5 years.

Helps avoid net total support and maintenance contract and other non-labor operating expenditures of $2,069,687 over the next 5 years.

Has the potential to reduces indirect costs such as end user operations and downtime per user from $231.38 to $111.42 per year, a savings of $119.95 per year per user

Yields a total of $6,482,114 in direct benefits, and $6,359,680 in indirect benefits over the next 3 years (risk adjusted results)

The project will requires a $1,227,285 initial investment and $2,655,892 cumulative investment over 3 years.

Comparing costs and benefits, the project is expected to deliver:

Risk Adjusted ROI of 319%

Net Present Value (NPV) savings of $8,075,926

Payback period of 10.0 month(s)

Risk adjustments include deployment period of 3 months and adoption curve of 100.0%,100.0%, and 100.0% over each successive year of the analysis.

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Next Steps

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IDC Research

IDC Core Infrastructure Optimization White Papers The relationship between IT labor costs and best practices for managing t

he Windows desktop The relationship between IT labor costs and best practices for identity an

d access management with Active Directory Windows Server Best Practices (TBD) The relationship between IT labor costs and best practices for Systems M

anagement Server Messaging and Collaboration Best Practices (TBD) Developing an IO Strategy (TBD) Analysis of the value of Windows Vista

Microsoft White Papers Infrastructure Optimization: Driving Down the Costs of the Business Desk

top Microsoft Desktop Optimization Pack for Software Assurance - Wipro

Product Strategy and Architecture Practice’s Analysis of Features, Cost Benefits, and Effects on IT Best Practices that Improve IT Infrastructure Optimization

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This analysis report should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of the report. This analysis report is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT.

©2007 Microsoft Corporation. All rights reserved.Microsoft, Active Directory, Axapta, BizTalk, Microsoft Dynamics, SharePoint, Windows, and Windows Server are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries.

Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this report may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of Microsoft Corporation.

Microsoft may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this analysis. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this analysis does not give you any license to these patents, trademarks, copyrights, or other intellectual property of Microsoft.

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Appendix A: Additional Benefits – Vista Enterprise

Additional Benefits of Vista Enterprise Annual Benefits per PC for Vista Enterprise

Additional OS Licensing Rights for Virtual PC with Vista Enterprise $0.00

Incremental Reduction in Image Management with Vista Enterprise $0.00

Improve UNIX Interoperability with Vista Enterprise $0.00

Protection of Data with Vista Enterprise$0.00

Total Additional Benefits of Vista Enterprise $0.00

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Appendix B: Estimated MDOP Costs and BenefitsThe Microsoft Desktop Optimization Pack for Software Assurance

(MDOP) is a dynamic desktop solution available to Software Assurance (SA) customers, which employs innovative technologies to help reduce the TCO of the Windows desktop by accelerating OS and application management, and enhancing IT responsiveness and end-user uptime.

MDOP is a product suite of technologies that includes:SoftGrid Application Virtualization: Microsoft SoftGrid Application Virtualization dynamically delivers applications to PCs reducing application deployment and support costs.Asset Inventory Services (AIS): Microsoft Asset Inventory Services provides intelligence about installed software on an organization’s PCs.Diagnostic and Recovery Toolset (DART): Microsoft Diagnostic and Recovery Toolset reduces the time it takes the service desk to diagnose and repair PCs.Advanced Group Policy Management (AGPM): Microsoft Advanced Group Policy Management simplifies the management of Group Policy Objects in an organization. Desktop Error Monitoring (MSCDEM): Microsoft System Center Desktop Error Monitoring enables IT to proactively manage problems with applications and system components that crash or cause live PCs to hang

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Appendix B - continued

For 3 Year Analysis Period Per PC Total

Total MDOP Implementation Costs

$0.00 $0

Total MDOP Benefits $0.00 $0

Net Benefits $0.00 $0

ROI (Net Benefits / Costs) 0% 0%

Note: this assumes 100% benefit realization over 3 years and 0 month Implementation Period

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Appendix B - continued

Cost Type

SoftGrid AIS DART AGPM MSCDEM

3-Year License

Total

Hardware

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Software $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

IT Labor $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

User Labor

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Total $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

The table below summarizes estimated costs per PC to deploy MDOP:

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Appendix B - continued

Benefit Type One-Time Annual 3-Year Total

Best Practice Sustain Benefits $0.00 $0.00

Best Practice Implementation Benefits

$0.00 $0.00

Other IT Labor Benefits $0.00 $0.00

User Labor Benefits $0.00 $0.00

Total $0.00 $0.00 $0.00

This tool estimates 4 types of benefits that MDOP enables. The first 3 impact IT Labor. The 4th impacts user labor (an indirect/intangible benefit).

•Best Practice "Sustain" Benefits: MDOP is expected to significantly reduce the costs to maintain (or enhance benefits of) 5 of the 7 IDC best practices. This is an annual/on-going benefit that applies to any of these 5 best practices that the company has already implemented or plans to implement.

•Best Practice Implementation Benefits: MDOP also can help to significantly reduce the costs of implementing 5 of the 7 best practices. This is a one-time benefit for any of the 5 best practices that the company plans to implement.

•Other IT Labor Benefits: MDOP also enables various other benefits that are not modeled via the IDC best practices. Example: DART's ability to reduce help desk issue resolution time.

•User Labor Benefits: MDOP can significantly reduce user labor (e.g. PC issue resolution time and downtime)

These benefits (per PC) are summarized below:

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Appendix B - continued

Best Practice Best Practice Implementation Benefits

Annual Best Practice Sustain Benefits

Standard Desktop Strategy

$0.00

$0.00

Single Systems Management Tool

$0.00

Automated Packaged Software Distribution

$0.00

Centrally Managed PC Settings & Configurations

$0.00

Comprehensive PC Security $0.00

Total $0.00 $0.00

The best practice-enabled benefits per PC are shown below by best practice: