Archive for the ‘Cost’ Category
There is an article at SearchSAP.com describing how SAP infrastructure changes to databases, servers yield quick returns. The article quotes Derek Prior of AMR Research who says that “some are finding it cheaper to swap Oracle databases in a more Unix-oriented environment to DB2” and that companies are “realizing payback within nine to 10 months“.
This is consistent with what we are seeing at IBM. Here are a selection of quotes from organizations who recently swapped the database software for their SAP applications to DB2:
“The migration to DB2 was completed in three months. We estimate that database operational costs have been cut by 68 per cent… The migration was smooth and completed absolutely without a hitch.“—Ralf Rohrer, Head of Server and Storage Operations at Industrielle Werke Basel (IWB)
“Thanks to DB2, we are saving around 25 per cent on software licensing and maintenance fees – which means we have more money in the IT budget to spend on solutions that deliver additional competitive advantage for our business.“—Ozcan Soke, IT Manager, Borçelik
“Our database is now 43 per cent smaller than before, and some of the largest tables have been reduced by up to 70 per cent. Despite the compression, there has been no impact on batch performance, and our most important online transactions are actually 20 per cent faster with the new version of DB2.“—Roland Heim, SAP Basis Administrator, INTER Versicherungen
“Choosing DB2 has delivered significant benefits for our organization: database size has been reduced by 40 per cent and performance is 15 per cent above our targets.“—Brian Visser, IT Operations Director, Central Services at KONE
“We expected an improvement of around 20 per cent in terms of system response time, but we found that the new system was actually 40 per cent faster. The DB2 database is even more efficient than we had anticipated. This means that the investments in new server and storage hardware will actually last longer than planned, contributing to a better-than-forecast return on investment, which is very pleasing.“—Peter Boegler, Solution Architect at SAP IT
There are many more such quotes in the DB2 for SAP case studies.
International Technology Group (ITG) just completed a study of database-related costs. In this study, they interviewed several companies to formulate profiles for a telecommunications company, a financial services company, and a retail company. They then determined the database-related hardware, software, storage, and staff needs for these profiles. They base their projections on information gathered from organizations that use Oracle Database and DB2, together with “street pricing” information. ITG claim that:
…use of DB2 9.7 results in combined three-year costs for database software, disk and tape storage systems, servers and personnel that average 36 percent less than those for use of Oracle 11g…
Here is a nice chart that captures their findings for each of the tree profiles:
You can read the full report at VALUE PROPOSITION FOR IBM DB2 9.7: Cost Savings Potential Compared to Oracle Database 11g.
Last week, I blogged about More Oracle Price Hikes.
- In June 2008, Oracle raised the prices of its products by between 15 percent and 20 percent.
- In March 2009, Oracle changed their multiplier for systems using the POWER6 CPU, in effect raising their prices by 33 percent on POWER6.
- In July 2009, Oracle raised the price of their Management and Tuning packs for Oracle Database Enterprise Manager by more than 40 percent.
That’s a lot of price increases in little over a year! It can be difficult to picture what these price increases mean. To help, let’s consider a sample configuration: a server with 4 POWER6 CPUs running Oracle Database Enterprise Edition, Partitioning, Diagnostic Pack, and Tuning Pack. For this relatively simple configuration, Oracle has increased its list prices by 61 percent in the time period between May 2008 and July 2009.
This is quite a large price increase in such a short mount of time. Especially when you consider that, in this tough economic climate, everyone is operating under increasingly tight budgets. Depending on the status of contracts with Oracle, it could mean a 61 percent increase in annual maintenance and support costs for this sample configuration. Hopefully, Oracle customers have price increase protection in their current contracts, and are not being hit too hard by these increases. Of course, even if they were smart enough to put such protections in place, then they still need to worry about what happens when their current contracts expire and they need to renegotiate with Oracle. One can’t help wondering why companies should pay 61 percent more for the exact same levels of maintenance and support.
The Solitaire Report titled Whitepaper: DB2 Performance on IBM System p® and System x® contains lots of interesting information.
Solitaire analyzed different aspects of database operations on the IBM® System p® platform and the IBM® System x® platform. Their report is not based on benchmarking. It is based on “real world” data from more than 4,100 production systems. It is part of the ongoing Operational Characterization Master Study (OPMS) that has been conducted over the last 19 years.
The report has information about performance, reliability, staffing, and time-to-market effects. For instance, here is a chart that show the normalized amount of monthly outage time for IBM DB2 and Oracle Database on IBM System p. Note that this data was drawn from an analysis of 653 core systems.
Also, here is a chart that show the normalized staffing levels for IBM DB2 and Oracle Database on IBM System p. If you sum the data, IBM DB2 requires 43% less staff than Oracle Database on System p.
You can get all the details behind these charts and a lot more interesting information in the Solitaire Report.
IBM recently updated its eBook titled Proven Strategies for Uncovering Cost Savings with IBM DB2. This eBook is a quick read. It focuses on why DB2 is the best database for lowering IT costs. There is information about how DB2 helps you lower the 3 S’s: Server costs, Storage costs, and Staff costs.
Chris Kanaracus has written an interesting article titled Experts: Oracle Database Option Price Hikes No Accident. In this article, he talks about Oracle’s recent decision to raise the price of some Oracle Database add-ons by as much as 40 percent. Of course, these price increases are in addition to the Oracle price hikes from just last year: Oracle increases prices 15 to 20 percent: The joys of pricing power.
Kanaracus speculates that this is a calculated move by Oracle, intended to extract as much money as possible from its installed base. One might interpret this as Oracle showing disregard for its customers, and taking advantage of the fact that they are “locked in” to using Oracle Database. As you might imagine, an Oracle spokeswoman declined to address the company’s rationale for the price hikes.
Oracle executives have openly said that revenues from its Database business help drive its profitability and fund its acquisition activity. Are Oracle biting the hand that feeds them?
Here is a keynote presentation that I recently put together for the Break Free roadshow events. This presentation describes the staff, server, and storage costs for DB2 when compared with its major competitors. There is also a section that talks about moving from Oracle Database to DB2.