RUNNER

April 29, 2014

Executive Summary Business Problem:– cineSHARE, ACORN and EAGL are critical components of major digital media workflows supporting

various SPE business operations– cineSHARE, ACORN and EAGL are 9, 8 and 7 years old, respectively, and in the fast-changing digital

media technology landscape, these applications are inadequate in functionality to meet customer demand

– Each application has amassed significant technical debt impacting system reliability as well as the ability to be responsive to new enhancement requests The last major EAGL release took 3.5 months in the QA phase. Significant manual regression testing and the corresponding

bug fixes as well as a challenging code base were contributing factors. Last year DMG teams spent more time fixing bugs and addressing production issues versus time spent on new development

of features

– An increasing number of workflows are unpredictable or have large spikes of utilization that exhaust DMG’s resources

– Additionally, with three separate applications and repositories, DMG often replicates assets across systems to support multiple workflows ,which increases infrastructure costs and maintenance overhead.

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Proposed Solution

• The Runner project will build a new digital media platform and several web applications (user experiences) to replace cineSHARE+, ACORN, and EAGL.

• Included in scope:– New platform and web applications to be hosted on AWS– Migration of DMG-integrated systems such as SPT B2B, SPHE

Connect, and Worldwide Theatrical Publicity Sites– IDM integration for central authentication– GPMS integration for product master data– Migration of Screening Room Online – Storage management and file transfer services provided by

MCS– Migration of assets and metadata to AWS

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Financial Summary

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Year One Project Costs with IT Five-Year Summary and Payback Software: $0 Five-Year Total Cost: $3,292,210Hardware: $0 Five-Year Total Benefit: $7,012,715Internal Labor: $437,760 Five-Year Net Benefit: $3,643,505External Labor $1,065,433 Internal Rate of Return: 24%Misc./Other: $0 Net Present Value at 10%: $1,382,801TOTAL $1,503,193 Payback in Months: 28.42

Funding by Fiscal YearFY14 - Actual (funded by Sony Tech) $1,369,164

FY15 - IT Funded $1,503,193

FY16 $419,853subtotal - IT Funded $1,923,046

Depreciation: $2,962,989 TOTAL $3,292,210

Ongoing Costs: $77,000

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Category $ Benefit Description

Cost Avoidance $6,431,873

•5 Year Benefits• Avoidance in the duplication of assets due to multiple repositories/systems

(Yearly, increases by 25% YoY)• FY14 IT Infrastructure Refresh (Servers, Storage, Tape Library), One time• Reduction in Contract Developers (2) - cineSHARE+ (TCS Fixed Bid), Yearly• Reduction in Contract Developers (2) - EAGL, Yearly

Cost Efficiencies $580,842 • System Administration (1)

Intangible Benefits N/A

• Reduced future maintenance costs: 50%+ of DMG application labor spent addressing issues• External cost avoidance - improves customer satisfaction and lessens

incentives for LOBs to use less secure third-party systems• Better Performance/Reliability - fewer rush charges, missed deadlines due to

slow and/or limited capacity in ingest/export• By increasing the efficiency of development on the new platform, fiscal

benefits to SPE associated with future DMG efforts will be realized sooner/with less effort/cost• Improved Logging for Audit Tracking and Security• DMG storage requirements have been growing at ~25% YoY, consistently for

the past several years. Delaying the migration would increase the costs for the current 2 PB migration by approx 25% each year.

Benefits

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Competitive Analysis• WB and FOX have packaged based software solutions that

have been significantly customized/enhanced to meet business needs– WB leverages North Plains Systems, though most customization is

done around the platform– FOX Leverages Artesia, though heavily customized creating upgrade

challenges• Disney Studio has a custom solution that was developed and

has been upgraded over time• Paramount recently developed a new solution for asset

management

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Timeline

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Appendix

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Security, Risk and Compliance Considerations

• Work with Compliance to align the problems this solution is addressing.