Download - Open Source and the New Economics of IT - Ingres CIO Doug Harr

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Page 1: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Doug Harr, CIO, Ingres

Page 2: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 2© 2009 Ingres Corporation

Agenda

“Not your Dad’s

Ingres”

New Economics

of IT Expenditure

s

Balancing IT budgets with Open

source

Alfresco Success Stories

Page 3: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 3© 2009 Ingres Corporation

Introducing Ingres – Our Mission & Company

Ingres delivers Reduced Cost and Greater Innovation for business critical database workloads through our Open Source model.

• Founded in 2006 and now more than 300 employees

• Global presence with multi-language 24 by 7 support

• Over 10,000 commercial customers in 58 countries

• Revenue: from $26 M in 2006 to $68 M in 2008

Reduced Costs

Greater Innovation

35 year pedigree delivers: Performance, Scalability Security, High Availability with 24/7 Global Support

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Slide 4© 2009 Ingres Corporation

Ingres in the Fortune 500

Aerospace & Defense: 8 of Top 10

Financial: Top 20 Commercial Banks

Retail

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Slide 5© 2009 Ingres Corporation

Ingres – Business Critical Acknowledgement

“The use of open-source DBMSs for mission-critical applications carries far more risk — the exception is Ingres. Ingres has been available for over 25 years and has a broad base of customers with mission-critical applications today. Issues of scalability, reliability and maturity are not a problem for the Ingres DBMS.” Gartner – Cost Optimization of Open Source DBMSs May 2009

“In the RDBMS market, open source software is being adopted in two areas: open source RDBMSs and the open source OS Linux as a platform on which to run an RDBMS”… Linux as an RDBMS platform is expected to see growth of approximately 20% in 2009,

“…Ingres is the only one of the open source RDBMSs that has functionality that make high availability and disaster recovery possible” “Gartner - How Open Source Impacts the RDBMS Jan 2009”

Page 6: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 6© 2009 Ingres Corporation

Today’s Challenge%

IT

ex

pe

ns

e

IT Exuberance

Fiscal Accountability

Do more with less

Time

Fixed Costs

Where to make the cuts?...

Variable Costs

New Projects Staff S/W CostsData Centre

• Virtualization• Commodity H/W

• Cloud Computing

• These costs are

escalating!

• Failed business

needs

• Failed SLAs• Skills Loss

• Demotivation

Vendor Lock-in = Premium pricing for commodity technology

ITBudgets

Page 7: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 7© 2009 Ingres Corporation

Old vs New Economics%

IT

ex

pe

ns

e

Time

The Old Economics of IT

The New Economics of IT

(CIO/CPO Investment preferences)

Commodity pricing (where appropriate)

No up-front licenses (releases capex)

Pay per use (matched to business needs)

Predictable on-going costs (no hidden

fees)

The New Economics of IT

Premium pricing for commodity technology

High up-front licenses

Costs always escalating (renewal trap)

Many hidden fees

Only choice of support and maintenance

Huge exit fees

The Old Economics of IT

VendorLock-in

VendorLock-in

VendorLock-in

VendorLock-in

To break the lock-in you need to understand what it is

Page 8: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 8© 2009 Ingres Corporation

Vendor Lock-In…

It exists… but most of it is not public.

Page 9: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 9© 2009 Ingres Corporation

How Vendor Lock-In works

Year 3 Year 5 Year 6Year 4Year 1 Year 2

• Upfront license fee

• High support fee increases

• Hidden Fees

• Renewals Trap

Hidden Fees

Sit

e L

icen

se F

ee

Lic

en

se

Fe

e

Development

Application server

DBMS

Operating system

1st step - Technical Lock-in

• One stop shop

• Use of proprietary functionality

• No choice for support & maintenance

• Enormous exit costs

2nd step - Commercial Lock-in

Escalating premium prices for commodity software products

Page 10: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 10© 2009 Ingres Corporation

Breaking vendor commercial lock-In

Sitelicenserenewal

Support Increment

Proprietary

Pro

pri

etar

y …hidden fees

Leverage Open Source commercial model

No Additional

LicenseFees

No Upfront License

Fees

No up-front license fees No renewal traps No hidden fees (Novation, FTE, etc) Access to source code

Op

en S

ou

rce

Page 11: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 11© 2009 Ingres Corporation

Vendor Alternatives…

Development

Application server

DBMS

Operating system

Proprietary

• One stop shop• Use of proprietary functionality• No choice for support & maintenance• Enormous exit costs

Open Source

1. Open Standards2. Open Source Commercials3. Access to Source Code4. Business Critical Offerings

Page 12: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 12© 2009 Ingres Corporation

Ingres ECM Appliance & Bundles

IngresECM Appliance

Linux

Java

Apache Tomcat

Ingres 9

Records Mgmt

Image Mgmt

Document Mgmt

“ECM in a Box”$32k/CPU

3-4x Less than Documentum*

Integration Lowers Software LifecycleCosts

• Faster Implementation

• Faster updates• Easier backups

Open Source business model reduces up front license costs up to 400%

* based on Document Management functions, first year license & support costs

Page 13: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 13© 2009 Ingres Corporation

Ingres Inside – Use of Alfresco Internally

Page 14: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 14© 2009 Ingres Corporation

Ingres Inside – Edit Online (Webdav)

Page 15: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 15© 2009 Ingres Corporation

Ingres Inside – Search MetaData

Page 16: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 16© 2009 Ingres Corporation

Ingres Inside with Alfresco

● Enterprise-Grade

● Standards Support● JSR-170, JSR-168, SOAP,

and more…

● Highly Scalable

● Customizable

● Affordable

● Handles all Core ECM Needs

● Collaboration

● Document Management

● Web Content Management

● Records Management

Page 17: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 17© 2009 Ingres Corporation

Case Study: Alfresco ECM and JBoss App Server

A Facebook application that helps couples plan weddings. Connected Weddings was developed and deployed on a

commercial open source application development stack that includes the Ingres Database.

Online Consumer ApplicationsArlington, VA

Challenges► Provide couples with social

networking tools to help plan and manage wedding details

► Leverage value of existing “Wedding Belles” book content

► Create scalable foundation on which Web 2.0 functionality can be added

► Ensure seamless integration and interaction with Facebook platform features

► Be a long-term cost-effective solution

Solution► Build a large-scale, commercial

application using:

► Alfresco Content

Management Platform

► JBoss Enterprise

Middleware

► Ingres Database

► RedHat Operating System

Results► 25,000 users registered within

the first month

► Easily scales without incurring prohibitive costs

► Provides free, personalized site to end-users through the Web, iPhone, and Facebook.com

► “We now have an end-to-end open source platform that will enable us to scale quickly and cost effectively.” Dan Kerzner, CEO, New Gravity Ventures

Page 18: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 18© 2009 Ingres Corporation

Summary

Business critical infrastructure and development at a

fraction of the cost• Commodity pricing

• No up-front licenses

• Pay per use

• Predictable on-going

costs

Open Source

Open Standards

What next …?

Contact us to help build a business case:• TCO model• Migration/Development estimates• Proof of concept

Page 19: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 19© 2009 Ingres Corporation

Contact Information

Doug Harr, CIOIngres CorporationDesk: (650) [email protected]://blogs.ingres.com/dougharr/

Website– www.ingres.com

Downloads– esd.ingres.com

Community – http://community.ingres.com

Alfresco Content http://www.ingres.com/products/icebreaker-ecm-appliance.php

White Papers– http://www.ingres.com/downloads/insights.php

Sales and Services– http://www.ingres.com/about/contactus.php

Page 20: Open Source and the New Economics of IT - Ingres CIO Doug Harr

Slide 20© 2009 Ingres Corporation

Reduced Costs

Greater Innovation

Any Questions?