Spend Less and Do Morewith Oracle 9i

양수환Sales Consulting DirectoriPlatform BD DivisionOracle Korea

4

H/W & S/W cost trends long ago

Hardware

DevelopmentSoftware

Maintenance

100Percent of total costs

80

60

40

20

01955 1970 1985

YearBarry W. BoehmSoftware engineering economics

5

Software Economics Today

IDCFebruary 2001

48%28%

15% 9%Labor

SoftwareDevelopment

Hardware

6

VerisignSecurity

VerisignSecurity

• Too Many Pieces

Phone.comWireless

Phone.comPhone.comWirelessWireless

InktomiWeb Cache

InktomiInktomiWeb CacheWeb Cache Web Methods

B2B IntegrationWeb MethodsWeb Methods

B2B IntegrationB2B Integration

BEAJava Server

BEABEAJava ServerJava Server

MicrosoftWeb ServerMicrosoftMicrosoft

Web ServerWeb Server

Times TenDB Cache

Times TenTimes TenDB CacheDB Cache

Netscape(iPlanet)Directory

NetscapeNetscape((iPlanetiPlanet))DirectoryDirectory

Web TrendsClickstream

Web TrendsWeb TrendsClickstreamClickstreamBusiness

ObjectsDSS

BusinessBusinessObjectsObjects

DSSDSSPlumtree

EnterprisePortal

PlumtreePlumtreeEnterpriseEnterprise

PortalPortalVitria

ApplicationIntegration

VitriaVitriaApplicationApplicationIntegrationIntegration

OpenWavePERL ServerOpenWaveOpenWave

PERL ServerPERL Server

HP/CASystems

Management

HP/CASystems

Management

Complexity means More Costs

• Unreliable, Unmanageable Infrastructure

• Cost and Time to Integrate Infrastructure

7

A Better Approach!

“The idea is simple: You can get nearly everything you need for a modern software

solution from one, integrated stack...

...This makes architectural sense, makes sense to developers, makes TCO sense to CIOs and even CFOs, and enables IT to

respond more effectively”

- Hurwitz GroupTop Trend of 2001

8

Complete, Integrated - therefore lower Costs

Too Many Incompatible Pieces

MobileComputing

MobileComputing

ORBsORBs

ApplicationFrameworksApplicationFrameworks Content

ManagementContent

Management

SecuritySecurity

Web ServersWeb Servers

DatabasesDatabases

DirectoryDirectory

ManagementTools

ManagementToolsMessagingMessaging

PortalsPortals BusinessIntelligenceBusiness

Intelligence

Runs all your

Business Applications

Stores all your

Business Information

Your Site Priorities

% of Large US Companies Rating “Very Important”

0102030405060708090

100

SecurityUptimeScalabilityIntegratedService Oriented

Source: IDC eWorld 2001

10

Why It’s Your Top Priority

“One minute of system downtime can cost an organization anywhere from $2,500 to $10,000 per minute.”

– The Standish Group, 2001

11

IT Challengefor Competitive Advantage

New Web ApplicationsWeb-enabling Legacy SystemsOnline Commerce Enterprise PortalsMobile and Wireless AccessAutomating Business ProcessesConnecting to Trading Partners Real-time Business IntelligenceDo all of these spending less !

12

Don’t Forget the Hidden Costs

• Poor Information Sharing• Downtime• Security Breaches• Bad Decisions

LaborSoftware

Development

Hardware

IDCFebruary 2001

13

How to Spend less & Do more ?

Protect your systems from Security BreachesConsolidate your data & ServerConsolidate your unstructured filesConsolidate your multi-channel servicesDeliver 24X7 availability on Commodity hardwareBuild All Applications as Web ServicesMoreover, Stick to Standards !

14

Protect Your systems fromSecurity Breaches

15

The Cost of Security Breaches

“90% detected computer security breaches in the past year.”

“80% acknowledged financial losses due to computer breaches.”

-- CSI/FBI Computer Crime and Security Survey, 2002

16

Unauthorized Access or Misuse

20 1923

38

05

10152025303540

1999 2000 2001 2002

% of Company WebSites

- CSI/FBI Computer Crime and Security Survey, 2002

17

“On 25 SEP 2002, Microsoft acknowledgedthat hackers could exploit a flaw in

FrontPage server extensions 2000 to cause a denial-of-service attack or possibly run

arbitrary code on the server.

…Gartner forecasts that, due to legacy code and resistance of cultural change, Microsoft

will not deliver necessary security improvements before 2004”

- Gartner Group27 SEP 2002

18

Microsoft products have been blamed for a majority of the worldwide damage from malicious code estimated at $13.2 billionin 2001.

55% of all the assaults were on Web sites based on the Microsoft IIS web server, a major .NET component, even though only 20% of all the sites used Microsoft IIS.

19

What about .NET ?

Year Security AdvisoriesYear Security AdvisoriesYear Security Advisories

1999 6019991999 6060

2000 10020002000 100100

2001 6020012001 6060

2002 (till Sep 25) 532002 (2002 (till Sep 25)till Sep 25) 5353

• 200 + serious security flaws since 1999

• No progress in 2002 despite Trustworthy Computing initiative

“Our products just aren't engineered for security.”

- Brian Valentine, SVP, Windows .NET Server (Sep 2002)

20

Oracle9i Database: “Can’t Break In”

MicrosoftSS2000

IBMDB2

SecuritySecurityChallengesCriteria OracleChallenges

0000

1100

0000

0000

3333

1111

ITSEC, levels E3/FITSEC, levels E3/F--C2C2ITSEC, levels E3/FITSEC, levels E3/F--B1B1

000044Common Criteria, level EALCommon Criteria, level EAL--44

TCSEC, Level C2TCSEC, Level C2TCSEC, Level B1TCSEC, Level B1

SecuritySecurityCriteria

000022Russian Criteria, levels III, IVRussian Criteria, levels III, IV000011FIPS 140FIPS 140--1, level 21, level 2110015TOTALTOTAL

Oracle has passed 15 critical security tests of the US government, the European Union and even Russian security tests

21

Consolidate Your DATA & Server

22

Server Consolidation: Why ?

Lower IT Costs– Centrally manage fewer systemsBetter Information – Reduced Complexity

– More effective search– Security – fewer doors to lockDon’t Buy Twice What You Need

– Pay as you growWhat about scalability & H/A ?

23

Oracle9i Real Application Clusters

Start small, incremental growth with unlimited headroomWorks with ALL applicationsScalable AND fault tolerantNO downtime to add servers and diskDoesn’t it cost high ?

24

Lower TCO with Clusters

$0.92 $0.93

$3.61$4.67

$0.75

$0.86

$0.42$0.58

$-

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

Cost

in $

M

Cost of Capital

Consulting &SupportHuman CapitalCostsCapital Expenditures

Intel cluster8 2Way nodes

Single server16CPU RISC

Source:TCO study by PolyServeCosts over 3 years, uses list price & standard discount

Linux TCO is 23.3% less than Single Server

25

Even Lower TCO with Clusterswhen downtime cost is included

$0.92 $1.99

$3.61

$4.67

$1.65

$2.34

$0.58

$1.31

$0.42

$-

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

Cost

in $

M

Cost of CapitalDowntime CostsConsulting & SupportHuman Capital CostsCapital Expenditures

Intel clusterRAC

Single server/Cold fail over

Linux is 53.6% less than Single Server /Gartner Group downtime cost estimation

26

Oracle9i RAC TPC-C Benchmark

8 node Oracle9i RAC on Linux Cluster

– HP ProLiant DL580R, 32 processor14% faster and 8% less expensivethan Microsoft SQL Server 2000's best result138,362.03 tpm/Cprice performance = $17.38 / tpmC

Is there any big real field case ?

27

Case Study (Cost Savings)Weather.com : World famous Weather channel

Weather Forecasting Web site– Average 8M ~12M page views a day

Previously Deployed on Solaris (worth $250,000)Currently migrated to SuSe Linux (worth $40,000)Total 160 Intel based servers are running5 IBM XSeries350 with 4GB memory 4-Way Intel Pentium III Xeon Servers for Oracle DB Server33% more traffic with 70% less cost

“By adopting Intel-based servers, we have been able to replace $250,000 boxes with $40,000 boxes and get even better performance than before. Overall, server costs have dropped 70 percent because of our move to Intel architecture."

Dan Agronow, Vice President of Technology, weather.com

28

Case Study (Cost Savings)eMice: Telco solution vendor, Hong Kong

CRM Application for Telco Vertical

Oracle9i RAC Proof of Concept (PoC) Project– Dell, Intel and Oracle sponsored– Compare to existing IBM AIX Oracle DB environment with

Oracle9iRAC on Dell PowerEdge Servers– Prove Oracle 9i RAC on Linux/Dell is capable in Telco space

Results– Install of Oracle9i RAC environment less than 1week– PoC executed and fine tuned in 1 week– 2M Tx/hr = 250K call/hr (2.5 x largest existing customer)– Price/performance : 2-3 x compared to IBM AIX RISC

29

Consolidate Data Example:Contents Management with iFS

SMB

FTP

SMTP, etc.

AnyAnyDataData

Net*8, etc.

APIs

HTTP

iiFSFS

FTP clientsFTP

Applications (Java, CORBA, PL/SQL)

Windows clients

Web browsers

E-mail clients

* Search any data using FTR ! Forms clients

30

What about XML database ?

“Oracle 9i is now by every definition that I know of, a native XML database.

And in my opinion is also the most complete and powerful native XML database around.……

At this point I have to say there's little reason for products

like Software AG Tamino to exist anymore.”

– Kimbro Stakenxmldatabases.org

http://www.xmldatabases.org/radio/xmlDatabases/2002/06/25.html

31

Consolidate Your multichannel services

32

Build portals with Portlets

Company News

Weekly SalesReport

HeadcountDailyCalendar

ExpenseReport Lookup

Easy Personalization without ProgrammingWeb Services Drive PortletsSingle Sign-onSecurityRapid DeploymentGlobalization

33

And Deliver to Any Device.. WML

WAP Gateway

Nokia Gateway

AT&T Gateway

HTTP Gateway

Nokia TTML

Palm HTML

Desktop

WTP

SMS

CDPD

Network

Oracle9iAS Portal

34

Is it easy to build a portal ?

“The portal technology in Oracle9i Application Server enables our employees, customers, and suppliers to have control over their information and receive it in a timely and secure manner. We selected Oracle9i Application Server in large part due to its ease of deployment, manageability, and ability to integrate with our legacy data. Our selection criteria resulted in immediate dividends - within a single day, my team was able to develop a prototype portal using Oracle9i Application Server and demonstrate its benefits to senior management."

Mary Fonder, CIO and vice president of information technology, Maysteel

35

Clustering &Caching

Web Services

B2B Integration

Application Integration

Any Data SourceWireless & Mobile

Portal

Management &Security

Business Intelligence

Unified Messaging

Portal is of no use without Consolidation of MiddleWare

36

What about Performance ?

0200400600800

1000120014001600

Response Times (ms)

Oracle IBM BEA

Application Servers

Test Based On Java PetStore

Oracle

IBM

BEA

100% Pure JavaRuns on Standard JDK VM2-3x Shorter Code PathEfficient Data HandlingTransaction Optimizations

37

And Price-Performance ?

$5

$7

$11

$0$2$4$6$8

$10$12

$/BB

op/m

in

Oracle9iAS BEA WebLogic IBM WebSphereOracle9

Oracle on HP Computers

ECPerf Best Price-Performance (09 JUL 2002)

As of July 9, 2002: Oracle, 24,639.37 BBops/min @ Std, $5/BBops/min @ Std. BEA, 7,539.90 BBops/min @ Std, $7/BBops/min @ Std. IBM, 32,581.47, $11/BBops/min @ Std.Source: http://ecperf.theserverside.com. ECperf is a trademark of Sun Microsystems Inc.

38

What about .NET?.NET IS NOT INTEGRATED

Example: What’s needed to deploy a portal with .NET

Database

External application

Commerce Server

BizTalk Server

Internet Security & Acceleration Server

Mobile Information Server

SharePoint Portal Server 2002

Internet Information Server (IIS)

Windows 2000 Server or Windows 2000 Advanced Server

Web PerformancePortal

Wireless

Web server Personalization/ BI

Integration

What’s needed with Oracle: Just Oracle9iAS

39

.NET IS NOT READY

Content Mgmt Server

SQL Server BizTalkSharePoint

Mobile Info ServerISA Server

Commerce Server

Host Integration Server

Exchange Appl Center .NET Enterprise ServersOld technology not yet integrated into .NET

Windows .NET Server 2003

Visual Studio .NET.NET Framework

Flagship .NET productdelayed many times from 2H01 to 1H03

New-fangled, not mature

40

Deliver 24x7 Availabilityon Commodity Hardware

41

Do you have a DR plan?

“A survey of IT managers, revealed that over 60 percent of businesses surveyed did not have a basic plan to mediate the effects of a disaster, should one occur.”

Gartner, 2001

42

95%95% 1818 66 00

99%99% 33 1515 3636

99.9%99.9% 00 88 4646

99.99%99.99% 00 00 5353

99.999%99.999% 00 00 55

PercentageAvailability Days

Downtime Per Year (7x24x365)Hours Minutes

99.9999%99.9999% 00 00 11

- The Standish Group

The Cost of Downtime

“99.9% availability can cost nearly $5m a year”

43

Remind that …

“One minute of system downtime can cost an organization anywhere from $2,500 to $10,000.”

- The Standish Group, 2001

44

Oracle9i Database Protects Against All Causes of Data Loss

Natural DisastersNatural Disasters 3%3%

Software CorruptionSoftware Corruption 4%4%

Computer VirusesComputer Viruses 7%7%

Human ErrorHuman Error 36%36%

Hardware & System Error Hardware & System Error 49%49%

- The Disaster Recovery Journal 2001

45

… on Commodity Hardware

No Single Point of FailureClustering at Every Tier

Oracle9iASClusters

Load Balancer

BrowserClient

Oracle9i DatabaseReal Application Cluster

Web Cache

Internet

Centralized Management

Web Cache

46

Oracle9i Handles Causes of Downtime

DatabaseDatabaseMaintenanceMaintenance

PlannedPlannedDowntimeDowntime

UnplannedUnplannedDowntimeDowntime

SystemSystemMaintenanceMaintenance

HumanHumanErrorError

Data FailureData Failure& Disaster& Disaster

SystemSystemFailureFailure

Online RedefinitionOnline RedefinitionPartitioning, Parallel SQLPartitioning, Parallel SQL

Dynamic Reconfiguration Dynamic Reconfiguration Data Guard, RACData Guard, RAC

Flashback QueryFlashback QueryLog Miner, Data GuardLog Miner, Data Guard

Recovery ManagerRecovery ManagerData GuardData Guard

Real Application ClustersReal Application ClustersFast RestartFast Restart

47

What about Human error ?Human error causes 36% of Data Loss

“Before Oracle’s Flashback query, a restore was required

to recover lost data. Now, using the Flashback option, human error can be easily undone.”

“Before Oracle’s Flashback query, a restore was required

to recover lost data. Now, using the Flashback option, human error can be easily undone.”

- Tim Donar, Acxiom

48

Build All Applications as Web Services

49

Web services ?

"Web services are filtering into daily IT practice.

2003 is the year for even cautious enterprises to begin web services pilot programs."

(Gartner, September, 2002)

"Web services are filtering into daily IT practice.

2003 is the year for even cautious enterprises to begin web services pilot programs."

(Gartner, September, 2002)

50

A Technology RoadmapDistributed, component-based applications

– Desktop clients– Within the boundaries of one company– Technologies: CORBA, DCOM, EJB

Web-based applications– Browser clients– Extending the company to the Web (B2C focus)– Technologies: CGI, Servlets, Web Application Servers

Enterprise Application Integration– Inter-application communication within the boundaries of one

company– Automating internal business processes and consolidating

information– Technologies: Message Brokers

5 © 2001 International Systems Group, Inc.

51

The Next Step

B2B application integration– Applications hosted by different companies

collaborate directly (i.e. not through a user interface)

– Goes beyond making information available in a standard format (aka XML)

– Makes application services hosted by one company available for programmatic access by trading partners

International Systems Group, Inc.

52

Web Services Reality Check

ProceduresProcedures• Within Single Application

ComponentsComponents• Within Like Applications

Integrated AppsIntegrated Apps• Within Single Enterprise

Business ProcessesBusiness Processes• Between Enterprises

Cou

plin

gC

oupl

ing

Fine

Tight

Loose

Web ServicesWeb Services

CoarseGranularityGranularity

53

iAS & JDeveloper: Best for J2EE and Web Services

Service CreationService DiscoveryService RegistrationXML DevelopmentUML Modeling

SOAP, UDDI, WSDL

54

In order to Spend less and Do more, Don’t Forget the Hidden Costs

• Poor Information Sharing• Downtime• Security Breaches• Bad Decisions

LaborSoftware

Development

Hardware

IDCFebruary 2001

56

What about the Competition?

IBMDB2

MicrosoftSS2000Clustered Feature Oracle9i

Support for ALL ApplicationsMultiple Platform Support

Availability AND ScalabilitySingle System Cluster Management

Add Nodes without Downtime

Automatic User Re-ConnectionTransparent Application Failover

Sub-Minute System Failover

YesYesYesYesYes

YesYesYes

No NoLimited No

No NoNo YesNo No

No NoNo NoNo No

57

High Availability FeatureHigh Availability Feature Oracle9i

No

Oracle9i Database Competition?

IBMDB2

MicrosoftSS2000

Multiplexed Log FilesMultiplexed Log FilesTransparent Application Transparent Application FailoverFailover

SubSub--minute Cluster minute Cluster FailoverFailoverPredictable Fast Start RecoveryPredictable Fast Start Recovery

YesYesYesYes

Yes NoNo NoNoNo

No

Complete Complete ‘‘Data GuardData Guard’’ ProtectionProtection Yes No NoSelfSelf--service Error Correctionservice Error Correction Yes No No

Dynamic System MaintenanceDynamic System Maintenance Yes No NoOnline Data MaintenanceOnline Data Maintenance Yes No No

Data PartitioningData Partitioning Yes Limited No

58

Oracle9iAS Competition?

No

BEA WebLogic

IBM WebSphereCluster ArchitectureCluster Architecture Oracle9iAS

Configurable Depth of FailureConfigurable Depth of FailureFast Start Fault RecoveryFast Start Fault Recovery

Transparent Application Transparent Application FailoverFailoverEndEnd--toto--end Clusteringend Clustering

YesYesYesYes

No NoNo NoNoNo

No

Cache ClusteringCache Clustering Yes No NoFast Replication TechnologyFast Replication Technology Yes No NoCluster Island TechnologyCluster Island Technology Yes No No

Rolling UpgradesRolling Upgrades Yes No No

59

Texas Tech University

2 nodes Oracle9i RAC on the Linux (Dell)Profile

– supports 30,000 Texas Tech end-users– 12 to 15 hits per second

Goal / Benefits– high performance and availability– remain within projected IT budget and save costs“Because we have a small IT staff, we needed to do more with

less. With Oracle9i Real Application Cluster’s redundancy and high performance, we no longer have to worry about out entire infrastructure going down” – Brandon Labonte, director of S/W development at Texas Tech University

60

Federal Aviation Air Traffic Control

4 node Oracle9i RAC on Red Hat Linux (Dell)Profile

– 2,000 concurrent users– 24/7 availability

Goal / Benefits– lower total cost of ownership than UNIX platform– efficient, scalable and highly available– easy to manage“This solution is not simply a server with factory-installed software but

a complete and simple solution that is pre-tested, pre-configured, and easy to deploy and manage” – James Jech, Dell Enterprise Systems Group

61

North Rhine-Westphalia Police Force

3 nodes Oracle9i RAC on Linux Clusters (Fujitsu Siemens)Profile

– entire range of business operations - budgeting, warehousing, procurement, inventory and stock management, controlling, and cost and service accounting

– 7,000 users (future plan – over 25,000 users)– initially implemented on 7 separate Informix database

Goal / Benefits– Reduced Administrative personnel– High availability and Good scalability– Without having to change their applications

62

Electronic Arts (EA)

4 node Oracle9i RAC on Linux Cluster (Dell)Goal / Benefits

– Their application scaled well on RAC– higher availability– choose RAC and 4 node system because of

lower costs

63

Lithonia Lighting

4 node Oracle9i RAC on Linux Cluster(Dell)Profile

– Manufacturing support with Oracle 11i Applications

Goal / Benefits– support large number of users on inexpensive

hardware– moved from Windows to Linux for greater

scalability

64

Other Reference Sites

Heinrich Bauer Verlag Publishing– 2 node Oracle9i RAC on SuSE Linux(IBM

Nefinity)BMI / Bundesverwaltungsamt

– 2 node Oracle9i RAC on SuSE Linux(Fujitsu Siemens)

Dell Global IT– 2 node Oracle9i RAC on Dell Linux Cluster

65

Reaping the Benefits

Oracle Corporation (OFO)45,000 employees100’s of NT File ServersOne Oracle9i RAC database

Consolidation Study10% Oracle employees in teams across different product lines8 teams saved $2m

– 45% User productivity– 55% Infrastructure and

admin costs

Siemens Division2,000 Employees70 NT File serversOne single Oracle database

– Comprehensive search capability

– Single Management point

– Single Backup & Recovery point

Could Save $4,500 Per NT server per year!

66

Reaping the Benefit

Austrian Railways1200 users, 80Gb DatabaseRAC implemented in 1 week

Better AvailabilityBetter ScalabilityReduced operational complexityReduced admin cost

German Police7000 users, 4GB DatabaseRAC implemented on Linux in 7 days

Better performanceBetter AvailabilityReduced cost

67

Reaping the Benefits

Consolidating web sites and portals into MyOracle/GX combination:

– Saves $1,000 / employee / year

– EMEA, LAD and NAC 95% complete

– $20+ Million hard savings still left to go

– Soft savings from making “deal closing” resources easier to find could easily double or triple the hard savings

One Country’s Savings:– 1,000 Employees– 3 servers consolidated– $500K in web contractor fees

eliminated– Reduction of 2 FTE’s from

admin payroll– Net Savings $1 Million

$20-60 Million in PotentialSavings from Consolidation