New Analysis April 23, 2008

Prepared For: Valued Customer Name Valued Customer Company Address Phone Number Web Site E-mail address Prepared By: vmware

Third party model, methodology and data provided by:

Disclaimer: The information contained in this presentation represents the current view of Microsoft Corporation on the issues discussed as of the date of publication. Because Microsoft must respond to changing market conditions, it 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 publication. This white paper is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, AS TO THE INFORMATION IN THIS DOCUMENT. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document 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 document. Except as expressly provided in any written license agreement from Microsoft, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property of Microsoft. © 2007 Microsoft Corporation. All rights reserved.

ROI Analyst™

1. Project Overview This ROI and TCO Analysis was created specifically for Valued Customer Company, with research and analysis completed on April 23, 2008. The Microsoft Integrated Virtualization Business Value Analyst was developed independently by ex-Gartner ROI experts from leading ROI tool developer Alinean, Inc. This analysis will help your organization determine the consolidation benefits and TCO advantages of Microsoft's Integrated Virtualization as a key component of moving to Dynamic Core Infrastructure Optimization. The results in this report were created from the Valued Customer Company’s own profile and opportunity metrics (specifically provided by the team) and industry research metrics and financial calculations contained in the Alinean ROI Analyst™ software, an independent financial modeling tool and model developed by worldwide leading and independent analyst ROI consultancy Alinean, The IT Value Experts (http://www.alinean.com).

2. Executive Summary For this analysis a TCO comparison and a risk adjusted cost-benefit analysis of the proposed solution's impact was conducted. Comparing the Solution A: Current (As Is) with Solution B: With Microsoft Integrated Virtualization (To Be) results in a $46,272,174 advantage for With Microsoft Integrated Virtualization (To Be). Comparing the proposed costs and benefits of Solution B: With Microsoft Integrated Virtualization (To Be) versus the As Is opportunities, it was projected that implementing the proposed solutions resulted in $50,756,332 of 3 year cumulative benefits for Valued Customer Company. Of these projected benefits, $40,232,767 are direct (hard) benefits and $10,523,565 are indirect (soft) benefits. Top cumulative benefits for the project include key impacts to specific PC cost categories including: - Internal Application Time to Market - $6,068,516 - Desktop Virtualization Client Replacement Capital Cost Avoidance - $5,928,316 - Microsoft Integrated Virtualization Licensing Costs - $5,430,884 - Existing Production Server Cost Avoidance - $4,497,483 - Production Server Unplanned Downtime Avoidance - $3,719,330 - Production Server Operations and Administration Efficiency Savings - $2,653,702 - Desktop Virtualization Client Replacement Labor Cost Avoidance - $2,564,592 - Production Server Change Management Efficiency Savings - $2,465,821 - Development and Test Lab Server Provisioning Efficiency Savings - $2,111,618 - Desktop Virtualization Client Change Management Cost Avoidance - $1,829,476 These benefits to Valued Customer Company can be grouped regarding business impact as: - $40,232,767 in IT cost reductions - $10,523,565 in business operating efficiency improvements The proposed project is expected to help Valued Customer Company meet the following goals and drive the following benefits: - Reduce IT Capital Costs $25,319,577 - Reduce IT Operations and Administration Costs $12,500,184 - Improve Business Agility $6,068,516 - Reduce Unplanned Downtime $3,719,330 - Reduce Facilities and Overhead Costs $2,398,990 - Improve User Productivity $613,994 - Reduce Business Risk $86,148 - Reduce Planned Downtime $49,592

Copyright © 2001-2008 Alinean, Inc. Page 2

ROI Analyst™ The proposed project is expected to deliver the following benefits to specified stakeholders of Valued Customer Company: - PC Manager $21,817,926 - IT Director $17,015,153 - VP Application Development $11,923,253 To implement the proposed project will require Valued Customer Company to make a 3 year cumulative investment of $7,374,577 including: - $5,982,366 in initial expenses - $5,558,472 in capital expenditures - $1,816,105 in operating expenditures Comparing the costs and benefits of the proposed project using discounted cash flow analysis and factoring in a risk-adjusted discount rate of 9.5%, the proposed business case predicts: - Risk Adjusted Return on Investment (RA ROI) of 497% - Return on Investment (ROI) of 588% - Net Present Value (NPV) savings of $35,479,893 - Internal Rate of Return (IRR) of 276% - Payback period of 6.0 month(s) Note: The project has been risk-adjusted for an overall deployment schedule of 3 months, realized benefits to include 100.0% of direct benefits and 100.0% of indirect benefits and a deployment schedule (adoption curve) of 100.0%,100.0%, and 100.0% over each successive year of the analysis.

3. Valued Customer Company’s Organization Profile For Valued Customer Company, we determined the following organization profile: • • • •

Industry: Aerospace and Defense Primary Operating Locations: United States Primary Site Locations: Suburban Total number of employees in the organization: 6,000

The goal(s) of this project analysis include: (√) Production Server Virtualization (√) Development and Test Lab Virtualization (√) Desktop and Application Virtualization Current (As Is) Production Server Profile The current (as is) profile for production servers (before Microsoft Integrated Virtualization is as follows: Production Server / Server Number of Servers Group Name File / print servers 200 E-mail servers 50 Application servers 40 Database servers 24 Web servers 50 Failover Servers 50 Total 414

Server Type 2 CPU 4 CPU 2 CPU 4 CPU 2 CPU 2 CPU 976 CPUs in total

Current (As Is) Development and Test Lab Server Profile The current (as is) profile for development and test lab servers (before Microsoft Integrated Virtualization is as follows:

Copyright © 2001-2008 Alinean, Inc. Page 3

ROI Analyst™ Development and Test Lab Number of Servers Server / Server Group Name Development servers 20 Unit test servers 40 Integration test servers 40 Database test servers 20 Other development, test 0 and QA servers Failover Servers 0 Total 120

Server Type

2 CPU 2 CPU 4 CPU 4 CPU 2 CPU 2 CPU 360 CPUs in total

Current (As Is) Desktop and Application Profile The current (as is) client profile for systems that are under consideration for virtualization: Client System Profile Number of client systems that are candidates for virtualization Expected increase in the number of PCs (starting in year 1) Typical upgrade cycle on these client systems (useful life before replacement, in months)

Desktop PCs 3,300

Notebook PCs 2,700

10.0%

10.0%

36

36

4. Microsoft Integrated Virtualization Proposed Solution for Improvement for Valued Customer Company Based on analyzing the overall consolidation opportunities for Valued Customer Company, the following virtualization is recommended: Production Server Virtualization with Microsoft The expected production server utilization planned with Microsoft Server Virtualization is 80.0%, resulting in an expected server consolidation ratio of 5.8 current servers to 1 new server. Server / Server Group Number of Servers Name to Consolidate To 71 Consolidated Production Servers Specify name 0

Server Type 4 CPU

Total Number of VMs to Support 414

4 CPU

0

Specify name

0

4 CPU

0

Specify name

0

4 CPU

0

Specify name

0

4 CPU

0

Specify name

0

4 CPU

0

Total

71

284 CPUs in total

414

Type of Virtual Server License Windows Server 2008 Standard Windows Server 2008 Standard Windows Server 2008 Standard Windows Server 2008 Standard Windows Server 2008 Standard Windows Server 2008 Standard

Copyright © 2001-2008 Alinean, Inc. Page 4

ROI Analyst™ Production Server Virtualization – Competitive Cost Comparison

Production Servers Windows Server 2008 Licensing Windows Server 2003 Licensing Credit for prior SA Agreements Cost for new SA Agreements Virtualization Management Total

With Microsoft Server Virtualization Solution

With Competitive Server Virtualization Solution

$51,049

$51,049

$0

$0

$0

$0

$0

$0

$274,164 $325,213

$1,091,970 $1,143,019

Development and Test Lab Server Virtualization with Microsoft The expected development and test server utilization planned with Microsoft Server Virtualization is 80.0%, resulting in an expected server consolidation ratio of 4.6 current servers to 1 new server.

4 CPU

Total Number of VMs to Support 120

Type of Virtual Server License Windows Server 2008 Standard

0

4 CPU

0

Specify name

0

4 CPU

0

Specify name

0

4 CPU

0

Specify name

0

4 CPU

0

Specify name

0

4 CPU

0

Windows Server 2008 Standard Windows Server 2008 Standard Windows Server 2008 Standard Windows Server 2008 Standard Windows Server 2008 Standard

Total

26

104 CPUs in total

120

Server / Server Group Name Consolidated Development / Test Servers Specify name

Number of Servers

Server Type

26

Development and Test Lab Server Virtualization – Competitive Cost Comparison Development and Test Lab Virtualization Windows Server 2008 Licensing Windows Server 2003 Licensing Credit for prior SA Agreements Cost for new SA Agreements Virtualization Management Total

With Microsoft Lab Virtualization Solution

With Competitive Lab Virtualization Solution

$18,694

$18,694

$18,694

$18,694

$0

$0

$0

$0

$86,460 $123,848

$437,940 $475,328

Desktop and Application Virtualization with Microsoft Copyright © 2001-2008 Alinean, Inc. Page 5

ROI Analyst™ The type of desktop and application virtualization to be implemented with Microsoft is as follows: Included?

(√) (√) ( ) (√) (√)

Terminal Services Hosted Desktop using Windows Vista Enterprise Centralized Desktops Virtual PC Managing images, applications and deployments with Microsoft Systems Center Virtual Machine Manager Application Virtualization using Microsoft MDOP's Softgrid Application Virtualization

Number of Clients Supported for each Solution Type 6,000 6,000 0 6,000 6,000

Desktop and Application Virtualization – Competitive Cost Comparison Desktop and Application Virtualization Client licenses Host Server Virtualization software Virtualization Management Software and Host Server Server hardware and OS costs Microsoft System Center (including VMM) Connection Broker Client licenses Connection Broker hardware Total

With Microsoft Desktop Virtualization Solution $958,800

With Competitive Desktop Virtualization Solution $900,000

$0

$1,380,000

$0

$7,000

$2,933,600

$3,520,320

$258,000

$0

$300,000

$300,000

$1,300 $4,451,700

$1,300 $6,108,620

5. The Value of Virtualization An infrastructure built with well-managed virtualization will result in lower costs, higher service levels, and greater agility. Specifically, these benefits derive from: •

Server consolidation—By consolidating multiple workloads onto a single hardware platform, you can maintain “one application/one server” while reducing physical server sprawl. This allows you to fully provision the business with less hardware, resulting in lower equipment costs, less electrical consumption for server power and cooling, and requiring less physical space for the server farm.

•

Maximized uptime—By compartmentalizing workloads, you prevent one application from impacting the performance of another, or causing a system crash. Even less stable legacy applications can be operated in a secure, isolated environment.

•

Robust disaster recovery—A virtualization strategy allows you to maintain an instant fail-over plan that provides business continuity throughout disruptive events. With the right tools, you can enable automated back-up, replication, and rapid movement of servers, desktops, and applications.

•

Reduced application compatibility testing—By virtualizing applications and delivering them on demand to desktops, application-to-application conflicts are nearly eliminated. This significantly reduces the amount of regression testing that is required prior to deployment and prevents most compatibility problems. Copyright © 2001-2008 Alinean, Inc. Page 6

ROI Analyst™ •

Support legacy and LOB applications—Terminal Services and/or desktop virtualization can enable applications written on older operating platforms to be supported in a current operating system without software code revisions.

•

Efficient server maintenance—The flexibility of shifting workloads between physical servers with minimal disturbance to their operation allows planned server maintenance to be performed without service disruption.

•

Streamlined provisioning—Adding workload resources can be accelerated and decoupled from a hardware acquisition process. If a particular business process requires additional capability to meet business needs (say, a web commerce engine), adding this capability is streamlined and immediate. In an advanced virtualized environment, workload requirements can become self-provisioning, resulting in dynamic resource allocation.

•

Reduced complexity—When managing your virtual infrastructure with the same tools for physical assets, you can reduce system complexity and streamline changes made to the overall infrastructure.

The Use Cases for Virtualization Adopting virtualization across the enterprise should naturally follow a maturation curve. While each scenario provides concrete and compelling benefits, it is best if an organization adopts these approaches in a reasonably defined order. Different circumstances will dictate some modification to this sequence, but the following roadmap can provide guidance on how to best employ virtualization in your organization. Test and Development Environment The natural place to begin piloting all types of virtualization is in the test and development environment. IT managers can model the OS, application, security, and management environment prior to putting these into production in a more streamlined and efficient way, providing greater flexibility and quickly identifying potential conflicts. Virtualization provides the mechanism to rapidly model different environments and experiment with different scenarios, without significant expansion of hardware and physical resources. Typically, virtualization in this scenario is more of a skunkworks project, with the IT staff experimenting with the technology and learning how to manage virtual machines and applications. Production Server Infrastructure Consolidating workloads from a large array of discrete, underutilized physical servers to an environment where complimentary workloads are isolated and aggregated onto a smaller number of physical servers is the most common application of this technology, and is where immediate cost savings can be realized. Server consolidation is an ongoing process—it is more of a journey than an end state. Early on, IT organizations can and should focus on non-business critical production workloads, to harvest the low-hanging fruit while learning how to efficiently manage virtual and physical servers across their infrastructure. As their processes become more mature and the expertise improves, a more proactive strategy that includes business-critical applications makes sense for consolidation. Here, the benefits in disaster recovery and business continuity become more critical than simply cost savings. Finally, as the IT organization becomes adept at managing critical and tactical workloads across a rationalized server infrastructure, it can use virtualization to dynamically assign resources to improve flexibility and scale—increasing the strategic value to the organization. With the right tools and policy-based business processes, the IT organization provides an extremely responsive IT infrastructure that supports business demands while efficiently controlling costs. Desktop Infrastructure - Applications Managing numerous desktop images drives up IT cost and consumes significant IT resources, as does maintaining up-to-date applications and security patches. By separating the application layer from the operating system on the desktop image, an IT organization can remove much of the complexity and management challenges it faces every day. Significant application-to-application regression testing is typically required before deploying a major application or OS update. In an environment where applications are virtualized and delivered on demand to the desktop, application-to-application conflicts are nearly eliminated, since the applications execute without impacting the desktop operating system—or other applications. In addition, application maintenance and security patching is streamlined, since it only Copyright © 2001-2008 Alinean, Inc. Page 7

ROI Analyst™ needs to take place at the source, not hundreds or thousands of individual desktops. This not only reduces labor needed for desktop maintenance, but ensures that any security vulnerabilities are adopted immediately and comprehensively. For application to OS compatibility issues, you can use a combination of desktop virtualization and presentation virtualization to run an application in its legacy operating system, hosted on the current desktop. Desktop infrastructure—Presentation In certain circumstances, it is critical that all data reside in a central location rather than becoming distributed across a constellation of desktop PCs. This might be due to confidentiality concerns, regulatory requirements, or end-user mobility needs. A virtualized presentation configuration places all data storage and processing in a central location, with the desktop being simply a presentation of the user interface. Storage and network resources Enterprise Storage and Networks Virtualizing enterprise storage and networks provides another avenue to consolidate resources for greater flexibility and scale. Managing storage and network resources in a virtual environment streamlines resource allocation, provisioning, and maintenance while reducing the apparent system complexity IT managers work with day to day. Overall infrastructure—Business Continuity Converting operating system and application instances into data files streamlines backup, replication and movement, providing a more robust business continuity capability and speeding recovery in the case of an outage or natural disaster.

6. TCO Analysis and Benefit Summary for Valued Customer Company Comparing the Solution A: Current (As Is) with Solution B: With Microsoft Integrated Virtualization (To Be) results in a $46,272,174 advantage for Solution B. For this analysis, the cumulative 3 year TCO comparison for Valued Customer Company is as follows: TCO Comparison Cumulative 3 Year

Solution A Current (As Is)

Solution B With Microsoft Integrated Virtualization (To Be)

Difference (A - B)

Difference (A - B)%

IT Costs Existing Production Server Cost Avoidance

$6,871,794

$2,374,311

$4,497,483

65.4%

New Production Server Purchase Cost Avoidance

$1,478,562

$568,497

$910,065

61.6%

Production Server Power and Cooling Savings

$1,850,393

$392,624

$1,457,769

78.8%

Production Server Space Savings

$522,770

$29,750

$493,020

94.3%

Production Server Networking Savings

$300,960

$77,520

$223,440

74.2%

Production Server Networked Storage Savings

$861,840

$152,760

$709,080

82.3%

Production Server Provisioning Efficiency Savings

$97,120

$2,984

$94,136

96.9%

Production Server Change Management Efficiency Savings

$3,350,367

$627,332

$2,723,035

81.3%

Production Server Operations and Administration Efficiency Savings

$3,530,756

$600,241

$2,930,515

83.0%

Existing Development and Test Lab Server Cost Avoidance

$2,534,580

$869,466

$1,665,114

65.7%

New Development and Test Lab Server Purchase Cost Avoidance

$520,997

$686,466

($165,469)

-31.8%

Development and Test Lab Server Power and Cooling Savings

$659,333

$143,777

$515,556

78.2%

Copyright © 2001-2008 Alinean, Inc. Page 8

ROI Analyst™ Development and Test Lab Server Space Savings

$191,258

$11,051

$180,207

94.2%

Development and Test Lab Server Networking Savings

$125,400

$29,640

$95,760

76.4%

Development and Test Lab Server Networked Storage Savings

$248,520

$57,000

$191,520

77.1%

$2,582,230

$258,222

$2,324,008

90.0%

Development and Test Lab Software Bug Reproduction Savings

$315,933

$31,595

$284,338

90.0%

Development and Test Lab Support Savings

$1,488,829

$153,584

$1,335,245

89.7%

Desktop Virtualization Client Replacement Capital Cost Avoidance

$10,649,400

$4,997,278

$5,652,122

53.1%

Desktop Virtualization Client Replacement Labor Cost Avoidance

$3,806,120

$1,179,658

$2,626,462

69.0%

Desktop Virtualization Power Cost Avoidance

$1,595,697

$1,595,697

$0

0.0%

Desktop Virtualization Client Software License Cost Avoidance

$771,576

$231,473

$540,103

70.0%

Desktop Virtualization Client Configuration Management Cost Avoidance

$471,346

$141,402

$329,944

70.0%

Desktop Virtualization Client Change Management Cost Avoidance

$2,549,174

$546,196

$2,002,978

78.6%

$0

$0

$0

0.0%

Desktop Virtualization Client Operations and Support Efficiency

$3,415,015

$1,456,686

$1,958,329

57.3%

Desktop Virtualization Branch Office Server Cost Avoidance

$3,278,880

$2,295,216

$983,664

30.0%

$0

$0

$0

0.0%

Desktop Virtualization Security Incident Labor Avoidance

$98,490

$59,095

$39,395

40.0%

Desktop Virtualization Disaster Recovery Labor Avoidance

$2,054

$821

$1,233

60.0%

Microsoft Integrated Virtualization Licensing Costs

$0

$0

$0

0.0%

Microsoft Integrated Virtualization Implementation and Training Costs

$0

$0

$0

0.0%

Desktop Virtualization PC Recovery Labor Avoidance

$90,283

$27,083

$63,200

70.0%

PC Data Management Risks

$51,594

$36,116

$15,478

30.0%

$54,311,271

$19,633,541

$34,677,730

63.8%

$60,983

$6,273

$54,710

89.7%

$4,573,809

$470,639

$4,103,170

89.7%

$55,977

$23,568

$32,409

57.9%

$13,385,005

$6,706,106

$6,678,899

49.9%

Development and Test Lab Server Provisioning Efficiency Savings

Desktop Virtualization OS Upgrade Labor Cost Avoidance

Desktop Virtualization Heterogeneous OS Cost Avoidance

Total IT Costs Business Operating Costs Production Server Planned Downtime Avoidance Production Server Unplanned Downtime Avoidance Production Server Disaster Recovery Time Savings Internal Application Time to Market

Copyright © 2001-2008 Alinean, Inc. Page 9

ROI Analyst™ Desktop Virtualization Service Desk User Savings

$636,990

$242,058

$394,932

62.0%

Desktop Virtualization End User Operations Savings

$298,008

$14,899

$283,109

95.0%

Desktop Virtualization Security Risk Avoidance

$44,700

$26,823

$17,877

40.0%

Desktop Virtualization Disaster Recovery Risk Avoidance

$932

$278

$654

70.2%

$40,976

$12,292

$28,684

70.0%

$19,097,380

$7,502,936

$11,594,444

60.7%

Production Server Planned Downtime Avoidance Revenue Impact

$0

$0

$0

0.0%

Production Server Unplanned Downtime Avoidance Revenue Impact

$0

$0

$0

0.0%

Production Server Disaster Recovery Time Savings

$0

$0

$0

0.0%

Revenue Generating Application Time to Market

$0

$0

$0

0.0%

Total Business Strategic Costs

$0

$0

$0

0.0%

$73,408,651

$27,136,477

$46,272,174

63.0%

Desktop Virtualization PC Recovery Risk Avoidance Total Business Operating Costs Business Strategic Costs

Total

Comparing the As Is current costs and opportunities to the proposed solution yields expected benefits of $50,756,332 over the 3 year analysis period, with $40,232,767 in direct (hard) benefits, and $10,523,565 in indirect (soft) benefits. Benefits Summary Total Benefits (to Solution B from Current (AS IS))

Year 1 $17,046,755

Year 2 $19,031,657

Year 3

Total

$14,677,919

$50,756,332

Copyright © 2001-2008 Alinean, Inc. Page 10

ROI Analyst™ Top Benefits Internal Application Time to Market (Indirect)

$1,513,346

$2,169,129

$2,386,042

$6,068,516

Desktop Virtualization Client Replacement Capital Cost Avoidance

$2,413,125

$3,458,925

$56,266

$5,928,316

Microsoft Integrated Virtualization Licensing Costs

$3,441,490

$1,491,764

$497,630

$5,430,884

Existing Production Server Cost Avoidance

$1,499,161

$1,499,161

$1,499,161

$4,497,483

Production Server Unplanned Downtime Avoidance (Indirect)

$905,009

$1,322,519

$1,491,802

$3,719,330

Production Server Operations and Administration Efficiency Savings

$638,995

$941,452

$1,073,256

$2,653,702

Desktop Virtualization Client Replacement Labor Cost Avoidance

$837,485

$1,225,912

$501,194

$2,564,592

Production Server Change Management Efficiency Savings

$593,754

$874,798

$997,269

$2,465,821

Development and Test Lab Server Provisioning Efficiency Savings

$526,588

$754,776

$830,254

$2,111,618

Desktop Virtualization Client Change Management Cost Avoidance

$481,238

$660,900

$687,337

$1,829,476

All other included benefits

$4,196,564

$4,632,321

$4,657,708

$13,486,594

Total Top Benefits

$17,046,755

$19,031,657

$14,677,919

$50,756,332

Direct Benefits

$14,451,046

$15,278,934

$10,502,787

$40,232,767

$2,595,710

$3,752,723

$4,175,132

$10,523,565

Indirect Benefits

Copyright © 2001-2008 Alinean, Inc. Page 11

ROI Analyst™

Copyright © 2001-2008 Alinean, Inc. Page 12

ROI Analyst™

7. Investment Summary Requirements for Valued Customer Company To implement the proposed project will require a 3 year cumulative investment of $7,374,577 including: • $5,982,366 in initial expenses • $5,558,472 in capital expenditures • $1,816,105 in operating expenditures Investment Summary Total Investment

Initial

Year 1

Year 2

Year 3

Total

$5,982,366

$422,393

$459,467

$510,351

$7,374,577

$3,717,200

$371,720

$408,892

$460,815

$4,958,627

Production Server Virtualization Licensing Cost (IT)

$325,213

$34,321

$34,142

$32,220

$425,896

Development and Test Lab Server Virtualization Licensing Cost (IT)

$123,848

$16,352

$16,433

$17,316

$173,949

$4,166,261

$422,393

$459,467

$510,351

$5,558,472

Desktop and Application Virtualization Professional Services Costs (IT)

$918,000

$0

$0

$0

$918,000

Desktop and Application Server Virtualization Implementation Labor Costs (IT)

$569,036

$0

$0

$0

$569,036

Production Server Virtualization Professional Services Costs (IT)

$195,250

$0

$0

$0

$195,250

Development and Test Lab Server Virtualization Professional Services Costs (IT)

$71,500

$0

$0

$0

$71,500

Production Server Virtualization Implementation Labor Costs (IT)

$45,615

$0

$0

$0

$45,615

Development and Test Lab Server Virtualization Implementation Labor Costs (IT)

$16,704

$0

$0

$0

$16,704

Production Server Virtualization Training Costs (IT)

$0

$0

$0

$0

$0

Desktop and Application Server Virtualization Training Costs (IT)

$0

$0

$0

$0

$0

Development and Test Lab Server Virtualization Training Costs (IT)

$0

$0

$0

$0

$0

$1,816,105

$0

$0

$0

$1,816,105

Capital Expenditure Desktop and Application Virtualization Licensing and Infrastructure Costs (IT)

Total Capital Expenditure Operating Expenditure

Total Operating Expenditure

Copyright © 2001-2008 Alinean, Inc. Page 13

ROI Analyst™

8. ROI Analysis for Valued Customer Company Analyzing the opportunity, and applying the proposed Microsoft Solution, the cash flow and key financial metrics were calculated, resulting in a: - Risk Adjusted Return on Investment (RA ROI) of 497% - Return on Investment (ROI) of 588% - Net Present Value (NPV) savings of $35,479,893 - Internal Rate of Return (IRR) of 276% - Payback period of 6.0 month(s) ROI Analysis (Solution B) (Probable Case) Benefits (to Solution B from Current (AS IS))

Initial

Year 1 $0

Cumulative Benefits Investment (Solution B)

$5,982,366

Year 2

Year 3

$17,046,755

$19,031,657

$14,677,919

$17,046,755

$36,078,413

$50,756,332

$422,393

$459,467

$510,351

Copyright © 2001-2008 Alinean, Inc. Page 14

ROI Analyst™ Cumulative Investment

$5,982,366

$6,404,759

$6,864,226

$7,374,577

Cash Flow

($5,982,366)

$16,624,362

$18,572,190

$14,167,568

Cumulative Cash Flow

($5,982,366)

$10,641,996

$29,214,187

$43,381,755

ROI Risk Adjusted ROI NPV Savings IRR Payback period (including deployment period) Risk Adjusted Discount Rate

588% 497% $35,479,893 276% 6 month(s)

9.5%

Copyright © 2001-2008 Alinean, Inc. Page 15

ROI Analyst™

Appendix A: Questionnaire (As Is) Microsoft Integrated Virtualization Business Value Analysis This analysis will help your organization determine the consolidation benefits and TCO advantages of Microsoft's Integrated Virtualization as a key component of moving to Dynamic Core Infrastructure Optimization. Developed independently by ex-Gartner TCO experts from leading ROI consultancy Alinean, this tool collects basic information about your server, development lab and desktop consolidation opportunities, and industry metrics to calculate the IT savings, business benefits, competitive cost savings and return on investment available using Microsoft Virtualization solutions. All metrics can be reviewed and customized for a complete personalized analysis.

Organization Profile What is the closest matching industry for the organization being analyzed? (* = required)

Aerospace and Defense n1

What is the primary geographic location of the organizations user sites and data / service centers? *

United States n2

What are the primary site locations for the organizations data centers? *

Suburban n3

What is the total number of employees in the organization (those in the organization that is in scope for this proposed project)? *

6,000 n4

What are the goals of this project and analysis? * X

Production Server Virtualization

n5

X

Development and Test Lab Virtualization

n6

X

Desktop and Application Virtualization

n7

Current (As Is) Production Server Profile What is the current (as is) profile for production servers (before Microsoft Integrated Virtualization)?* Production Server / Server Group Name

Number of Servers

File / print servers

Server Type

200 2 CPU

n8

E-mail servers

50 4 CPU

n9

Application servers

40 2 CPU

n10

Database servers

24 4 CPU

n11

Web servers

50 2 CPU

n12

Failover servers

50 2 CPU

Total

414

n13 976 CPUs in total

What are the total number of users that these production servers support? Internal employees and contractors

6,000 n14

External users (partners and customers)

0 n15

What are the total number of applications that these servers support?

414 n16

What is the average expected growth rate for these servers / groups (starting in year 1)?

10.0% n17

What percentage of the servers are located in branch / remote offices?

30.0% n18

Current (As Is) Development and Test Lab Profile What is the current (as is) profile for development and test lab servers (before Microsoft Integrated Virtualization)?* Development and Test Lab Server / Server Group Name

Number of Servers

Server Type

Development servers

20 2 CPU

n19

Unit test servers

40 2 CPU

n20

Integration test servers

40 4 CPU

n21

Database test servers

20 4 CPU

n22

Other development, test and QA servers

0 2 CPU

n23

Failover servers

0 2 CPU

Total

120

What type of development group do these servers support?

n24 360 CPUs in total

Internal Development

n25

What are the total number of development team members do these servers support? Application developer FTEs

30 n26

QA and test FTEs

30 n27

What is the average expected growth rate for these servers / groups (starting in year 1)?

10.0% n28

Current (As Is) Desktop and Application Profile What is the current (as is) client profile for systems that are under consideration for virtualization?* Client System Profile

Desktop PCs

Notebook PCs

Thin Desktops

Number of client systems that are candidates for virtualization

3,300

2,700

0 n29

Expected increase in the number of client systems (starting in year 1)

10.0%

10.0%

10.0% n30

36

36

60 n31

Typical upgrade cycle on these client systems (useful life before replacement, in months) What percentage of the clients are located in branch / remote offices?

20.0% n32

v1.22

Notes:

Copyright © 2001-2008 Alinean, Inc. Page 16

ROI Analyst™ 1. The type of company or organization. If the organization under analysis is a division of a larger organization, the business for the division. This, along with the industry type and primary site location of the company or organization helps scale key metrics in the tool, particularly relating to salary, revenue / profit, facilities / power costs and any other industry/location-related metrics. 2. The primary geographic location where the company or organization operates, and the location of the company's data centers. The specification should be made for the in-scope users and data centers as part of this project. This, along with the industry type and primary site location of the company or organization helps scale key metrics in the tool, particularly relating to salary, burden rate, facilities / power costs and any other geographic location-related metrics. 3. The primary location of the company or organization's data centers. Metropolitan should be defined as a central city with densely populated surrounding areas with combined population of 250,000 or greater and density greater than 1000 people per square mile. Urban should be defined as a central city populated in a wide-reaching surrounding area with combined population of 250,000 or greater but density less than 1000 people per square mile. Suburban should be defined as having a population of 2500 to 249,999 and adjacent to a metro or urban area. Rural should be defined as having a population of 2500 - 249,999 and not adjacent to a metro area. The figure is used to help scale key metrics in the tool, particularly relating to default salary figures as salaries are normally higher in urban vs. rural settings. 4. The total number of employees in the organization and within the scope of this proposed project. 5. Virtualize the data center production servers. 6. Virtualize the development and test lab systems. 7. Virtualize the desktop client systems and applications / presentation layer(s). 8. The number and type of file / print infrastructure servers. Default assumes 1 server for every 30 employees. 9. The number and type of e-mail, exchange and collaboration servers. Default assumes 1 server for every 120 employees. 10. The number and type of application servers. Default assumes 1 server for every 150 employees. 11. The number and type of database and data warehouse servers. Default assumes 1 server for every 250 employees. 12. The number and type of web servers. Default assumes 1 server for every 120 employees. 13. The number and type of failover / standby servers. This special group of servers is used for failover / redundancy. With virtualization it is possible to substantially reduce the number of these servers from standby / failover / redundant systems to production servers, with failover handled via the virtualization software. Default assumes 1 server for every 120 employees. 14. The number of internal employees and contractors who use these servers. Set by default to the number of employees in the organization. 15. The number of external partner and customer server users. Set by default to zero as it is difficult to estimate external user support from employees or server count. Should be specified with the external users - partners and customers - that the production servers support. 16. The total number of applications that these servers support. Set by default to one application per server. 17. The expected average annual growth rate over the analysis period, starting in year 1, in the number of servers overall. Set by default to 10%, the average growth rate for servers in most typical organizations. 18. The percentage of the total servers which are not located in data center locations, instead located in branch / remote offices. 19. Total number and type of development servers. Default assumes 1 server for every 300 employees. 20. Total and type of unit test servers. Default assumes 1 server for every 150 employees. 21. Total and type of integration test servers. Default assumes 1 server for every 150 employees. 22. Total and type of database test and validation servers. Default assumes 1 server for every 300 employees. 23. Other types of development and test / QA servers. 24. Total failover servers for the development, test and QA resources. This special group of servers is used for failover / redundancy. With virtualization it is possible to substantially reduce the number of these servers from standby / failover / redundant systems to mainline usable servers, with failover handled via the virtualization software. 25. The type of development group that the servers support. This selection is used to specify the business impact of velocity to market and service level related benefits. For internal development, the main beneficiary will be users, with improved productivity and business expense savings. For external development / ISVs, improvements are directly related to revenue. If there is a mix of revenue generating and internal applications, mix should be selected. 26. The total number of Application Developer full time equivalents that these servers are used by and support. Set by default to one developer for every 4 specified servers in total. 27. The total number of QA and test full time equivalents that these servers are used by and support. Set by default to one QA / test for every 4 specified servers in total. 28. Compound annual growth rate in number of development and QA / test servers over analysis period, starting in year 1. Set by default to 10%, the average growth rate for servers in most typical organizations. 29. Number of desktop PCs, Notebook PCs and Thin client desktops in the current environment. Set by default to the total number of PCs and 55% desktops, 45% notebook / laptop PCs in a typical installed base environment. 30. Compound annual growth rate in the number of client systems over the analysis period, starting in year 1. Set by default to 10%, the average growth rate for client PCs/ systems in most typical organizations. 31. The number of months prior to replacement for a typical PC. Set by default to 3 years for both desktop and notebook PCs. 32. The percentage of the client systems not located in main office locations, but instead distributed in branch / remote offices without the benefit of local support and service organizations. Estimated to be 20% in most average environments, but should be set to reflect actual distribution between main office locations and branch / remote offices (those not having local IT support).

Copyright © 2001-2008 Alinean, Inc. Page 17

ROI Analyst™

Appendix B: Solution Selection (To Be) Microsoft Integrated Virtualization Proposed Solution The following is the proposed solution and configuration for Microsoft Server Virtualization for each of the scenarios indicated as in scope for this project, and competitive pricing comparison. click here For the Investment Tally and ROI Analysis, which solution would you like to analyze:

Microsoft

n1

Production Server Virtualization with Microsoft What is the expected production server utilization planned with Microsoft Server Virtualization?

80.0% n2

Expected server consolidation ratio achieved (N current servers to 1 new server)

5.8 to 1

What is the expected specific initial configuration of production servers post consolidation using Microsoft Server Virtualization?

Server / Server Group Name

Number of Servers to Consolidate To

Consolidated Production Servers

Total Number of Virtual Machines (VMs) to Support

Server Type

Type of Virtual Server License

71 4 CPU

414

Windows Server 2008 Standard n3

Specify name

0 4 CPU

0

Windows Server 2008 Standard n4

Specify name

0 4 CPU

0

Windows Server 2008 Standard n5

Specify name

0 4 CPU

0

Windows Server 2008 Standard n6

Specify name

0 4 CPU

0

Windows Server 2008 Standard n7

Specify name

0 4 CPU

0

Windows Server 2008 Standard n8

Total

71

284 CPUs in total

414

What percentage of the virtualized production servers are blade systems versus traditional rack-mount servers?

100.0% n9

Production Server Virtualization - Competitive Cost Comparison Based on the virtualization plan above, and detailed pricing and settings below, the costs and competitive advantage of Microsoft Integrated Virtualization for Data Center / Production Server Virtualization. Warning - Check pricing advice and rules as the automated recommendations here may not reflect all licensing rules. For example Standard Edition can run on up to 4 processor servers, and Enterprise Edition can run on up to 8 processor servers, however, an automated check for this does not exist. All pricing for Microsoft and competitive solutions based on: based on publicly available licensing data as researched and provided by Microsoft, January 2008. Production Servers

With Microsoft Server Virtualization Solution Units

Unit Price

With Competitive Server Virtualization Solution

Total

Units

Unit Price

Total

Windows Server 2008 Licensing Windows Server 2008 Licensing Standard

71

$719

$51,049

71

$719

$51,049

Enterprise

0

$2,334

$0

0

$2,334

$0

Datacenter

0

$2,381

$0

0

$2,381

$51,049

71

Total Windows Server 2008 Licensing

71

$0 $51,049

Windows Server 2003 Additional Licensing (if any) Standard

0

$719

$0

0

$719

$0

Enterprise

0

$2,334

$0

0

$2,334

$0

Datacenter

0

$2,381

$0

0

$2,381

$0

$0

0

Total Windows Server 2003 Licensing

0

$0

Credit for prior SA Agreements

$0

$0

Cost for new SA Agreements

$0

$0

$51,049

$51,049

Net Windows Server Licensing (sum of Windows Server 2008 Licensing, Windows Server 2003 Licensing, and cost for SA Agreements, less the credit for SA Agreements) Virtualization Management Virtualization Software Licensing

0

$0

$0

142

$5,750

Virtualization Management Software

0

$0

$0

1

$5,000

$5,000

71

$1,290

$91,590

71

$1,290

$91,590

0

$5,000

$0

1

$5,000

$5,000

8,694

$21.00

$182,574

8,280

$21.00

System Center Enterprise Third party backup software Additional storage space to support virtualization (GB)

$816,500

$173,880

Total for Virtualization Management

$274,164

$1,091,970

Total (sum of Net Windows Server licensing and Virtualization Management)

$325,213

$1,143,019

Net Licensing savings with Microsoft Integrated Virtualization

$817,806

Development and Test Lab Server Virtualization with Microsoft Copyright © 2001-2008 Alinean, Inc. Page 18

ROI Analyst™ What is the expected development and test lab server utilization planned with Microsoft Server Virtualization?

80.0% n10

Server consolidation ratio achieved (N current servers to 1 new server)

4.6 to 1

What is the expected specific configuration of development and test lab servers post consolidation using Microsoft Server Virtualization?

Server / Server Group Name

Number of Servers

Consolidated Development / Test Servers

Total Number of Virtual Machines (VMs) to Support

Server Type

Type of Virtual Server License

26 4 CPU

120

Windows Server 2008 Standard n11

Specify name

0 4 CPU

0

Windows Server 2008 Standard n12

Specify name

0 4 CPU

0

Windows Server 2008 Standard n13

Specify name

0 4 CPU

0

Windows Server 2008 Standard n14

Specify name

0 4 CPU

0

Windows Server 2008 Standard n15

Specify name

0 4 CPU

0

Windows Server 2008 Standard n16

Total

26

104 CPUs in total

120

What percentage of the virtualized development and test lab servers are blade systems versus traditional rack-mount servers?

100.0% n17

Development and Test Lab Server Virtualization - Competitive Cost Comparison Based on the virtualization plan above, and detailed pricing and settings below, the costs and competitive advantage of Microsoft Integrated Virtualization for Development and Test Server Virtualization. Warning - Check pricing advice and rules as the automated recommendations here may not reflect all licensing rules. For example Standard Edition can run on up to 4 processor servers, and Enterprise Edition can run on up to 8 processor servers, however, an automated check for this does not exist. All pricing for Microsoft and competitive solutions based on: based on publicly available licensing data as researched and provided by Microsoft, January 2008. Development and Test Lab Virtualization

With Microsoft Lab Virtualization Solution Units

Unit Price

With Competitive Lab Virtualization Solution

Total

Units

Unit Price

Total

Windows Server 2008 Licensing Windows Server 2008 Licensing Standard

26

$719

$18,694

26

$719

$18,694

Enterprise

0

$2,334

$0

0

$2,334

$0

Datacenter

0

$2,381

$0

0

$2,381

$18,694

26

Total Windows Server 2008 Licensing

26

$0 $18,694

Windows Server 2003 Additional Licensing (if any) Standard

26

$719

$18,694

26

$719

$18,694

Enterprise

0

$2,334

$0

0

$2,334

$0

Datacenter

0

$2,381

$0

0

$2,381

$18,694

26

Total Windows Server 2003 Licensing

26

$0 $18,694

Credit for prior SA agreements

$0

$0

Cost for new SA agreements

$0

$0

$37,388

$37,388

Net Windows Server Licensing (sum of Windows Server 2008 Licensing, Windows Server 2003 Licensing, and cost for SA Agreements, less the credit for SA Agreements) Virtualization Management Virtualization Software Licensing

0

$0

$0

52

$5,750

Virtualization Management Software

0

$0

$0

1

$5,000

$5,000

Lab Management

0

$0

$0

1

$45,000

$45,000

26

$1,290

$33,540

26

$1,290

$33,540

0

$5,000

$0

1

$5,000

$5,000

2,520

$21.00

$52,920

2,400

$21.00

System Center Enterprise Third party backup software Additional storage space to support virtualization (GB) Total for Virtualization Management Total (sum of Net Windows Server licensing and Virtualization Management) Net Licensing savings with Microsoft Integrated Virtualization

$299,000

$50,400

$86,460

$437,940

$123,848

$475,328

$351,480

Desktop and Application Virtualization with Microsoft What type of desktop and application virtualization will be implemented (check all that apply)?

Desktop and Application Virtualization with Microsoft

Number of Clients Supported for each Solution Type

Included?

Terminal Services

X

6,000 n18

Hosted Desktop using Windows Vista Enterprise Centralized Desktops

X

6,000 n19

Virtual PC

0 n20

Managing images, applications and deployments with Microsoft System Center

X

6,000 n21

Application Virtualization using Microsoft MDOP's Softgrid Application Virtualization

X

6,000 n22

Copyright © 2001-2008 Alinean, Inc. Page 19

ROI Analyst™ What will you be paying for the following desktop and application virtualization licenses? Terminal Services Client Access License (CAL per PC)

$149.80 n23

Windows Vista Enterprise Centralized Desktop (VECD) License per PC

$0 n24

Windows Virtual PC License per PC

$0 n25

Microsoft MDOP including Microsoft Application Virtualization (license per PC)

$10.00 n26

Additional annual charge for Software Assurance (if needed)

$0 n27

Average number of clients supported per host server for all virtualized clients

30 n28

Total number of servers needed to support selected Microsoft Integrated virtualization

200 n29

Desktop and Application Virtualization - Competitive Cost Comparison Based on the virtualization plan above, and detailed pricing and settings below, the costs and competitive advantage of Microsoft Integrated Virtualization for Desktop and Application Virtualization. All pricing for Microsoft and competitive solutions based on: based on publicly available licensing data as researched and provided by Microsoft, January 2008. Desktop and Application Virtualization

With Microsoft Desktop Virtualization Solution Units

Client licenses Host Server Virtualization software Virtualization Management Software and Host Server Server hardware and OS costs Microsoft System Center (including VMM) Connection Broker Client licenses Connection Broker hardware

Unit Price

Units

Unit Price

Total

6,000

$159.80

$958,800

6,000

$150.00

$900,000 n30

200

$0.00

$0

240

$5,750.00

$1,380,000 n31

0

$0.00

$0

1

$7,000.00

$7,000

200

$14,668.00

$2,933,600

240

$14,668.00

$3,520,320

200

$1,290.00

$258,000

0

$1,290.00

$0

6,000

$50.00

$300,000

6,000

$50.00

$300,000

1

$1,300.00

$1,300

1

$1,300.00

Total Net Licensing savings with Microsoft Integrated Virtualization

With Competitive Desktop Virtualization Solution

Total

$1,300

$4,451,700

$6,108,620

$1,656,920

General Metrics Will you be implementing Systems Center including Virtual Machine Manager to help better manage the virtualized environment?

Yes

n32

How much additional cost should be added per server for System Center Server Management Suite Enterprise licensing?

$1,290 n33

What is the average annual amortized cost per GB of SAN storage?

$21.00 n34

Over the analysis period, what is the decrease in storage cost per GB per year, starting in year 2?

20.0% n35

Because of increases in utilization, average server power and cooling costs often increases over baseline values. What is the estimated increase in power and cooling that should be used for the new servers, above and beyond the typical baseline values?

30.0% n36

Notes: 1. The analysis can be used to investigate the impact on Investment and ROI for Microsoft, or for a Competitive Solution. For the two options, a broad assumption is that the benefits are estimated to be the same, as well as overall implementation labor and services costs. The difference in the analysis will be the licensing and capital investment pricing. Selecting Microsoft will use Microsoft solution pricing, while selecting Competitive Solution will create an analysis using the Competitive Solution pricing. 2. The expected average per server utilization with Microsoft Server Virtualization. Default assumes an 80% server utilization rate with Microsoft Server Virtualization. Can be less for more network or IO intensive applications. Can be less for applications where busy hours overlap. 3. The first group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. Calculated by default based on the current total servers to virtualize, and the consolidation ratio. *Windows Server 2008 editions include Hyper-V. 4. The second group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. *Windows Server 2008 editions include Hyper-V. 5. The third group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. *Windows Server 2008 editions include Hyper-V. 6. The fourth group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. *Windows Server 2008 editions include Hyper-V. 7. The fifth group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. *Windows Server 2008 editions include Hyper-V. 8. The sixth group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. *Windows Server 2008 editions include Hyper-V. 9. The planned percentage implementation of blade systems for the virtualized servers. Helps to save space, power and cooling and provisioning / MACS. 10. The expected average per server utilization with Microsoft Server Virtualization. Default assumes an 80% server utilization rate with Microsoft Server

Copyright © 2001-2008 Alinean, Inc. Page 20

ROI Analyst™ Virtualization. Can be less for more network or IO intensive applications. Can be less for applications where busy hours overlap. 11. The first group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. Calculated by default based on the current total servers to virtualize, and the consolidation ratio. 12. The second group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. 13. The third group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. 14. The fourth group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. 15. The fifth group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. 16. The sixth group of servers to consolidate to using Microsoft Server Virtualization including the number of servers, server type, virtual machines and virtual server license to implement. 17. The implementation of blade systems for the virtualized servers. Helps to save space, power and cooling and provisioning / MACS. 18. Microsoft Terminal Services virtualizes the presentation of entire desktops or specific applications, enabling your customers to consolidate applications and data in the data center while providing broad access to local and remote users. It lets an ordinary Windows desktop application run on a shared server machine yet present its user interface on a remote system, such as a desktop computer or thin client. Terminal Services works with standard Windows applications—no changes are required. Instead, an entire desktop, complete with all application user interfaces, can be presented across a network by the Remote Desktop Connection. Running on a client machine, this software communicates with Terminal Services using the Remote Desktop Protocol (RDP), sending only key presses, mouse movements, and screen data. This minimalist approach lets RDP work over low-bandwidth connections such as dial-up lines. RDP also encrypts traffic, allowing more secure access to applications. 19. Centralized Desktop for PCs: Windows Vista Enterprise Centralized Desktop (VECD) provides licensing for Windows Vista Enterprise virtual machines (VMs) running on servers on top of PCs running Windows. This enables enterprises to combine PC productivity and local execution with the advantages of centralized deployment. Centralized Desktop for Thin Clients: To centralize desktop computers on the server on thin clients, use Windows VECD to provide secure Windows Vista Enterprise VMs on a server-based infrastructure delivering the Windows experience to reduced desktop hardware. 20. Vista Enterprise includes licensing for 4 Virtual PCs per system. 21. System Center can deliver improved management of virtualized environments, including: > Centralized deployment and management of virtual machines > Intelligent Placement analysis to determine the best servers for virtualization > Quick physical-to-virtual and virtual-to-virtual conversion > Ease of use with a familiar interface and seamless integration with other Microsoft products > Faster deployments with administrator-managed self-service provisioning > Resource efficiency with server consolidation and increased processor utilization > Quick automation via PowerShell scripting integration 22. Transform applications into virtualized services that are rapidly available - Microsoft SoftGrid Application Virtualization is the only virtualization solution that delivers applications that are never installed and dynamically delivered, on demand. Whether deployed on desktops, laptops or, terminal servers, SoftGrid changes application management from a series of manual tasks into an automated, streamlined process that accelerates the pace and reduces the cost of business. 23. Pricing based on average list price - February 2008. 24. Pricing based on average list price - February 2008. Assumes no additional fees needed to implement VECD by default. 25. Pricing based on average list price - February 2008. Assumes no additional fees needed to implement by default. 26. Pricing based on average list price - February 2008. 27. Average annual cost over analysis period for SA. Specify if SA renewal is part of this project proposal. 28. The average number of clients that can be effectively supported per host server. Set by default to be 120 clients per host for terminal services, 30 clients per host for VECD, and 45 clients per host for Softgrid. 29. Based on number of clients per type, the number of servers estimated to support the virtualized desktop / application environment. 30. Edit Microsoft solution's unit price above. Average unit total of all client licenses here. 31. For competitive solutions, assume that 25 PCs supported per host server. Assumes a 2 CPU server as the typical supporting server configuration (see below). 32. The System Center Server Management Suite Enterprise includes Virtual Machine Manager as well as Enterprise Management Licenses (MLs) for System Center 2007 Configuration Manager, Data Protection Manager and Operations Manager. An Enterprise license provides rights to manage both the physical and virtualized instances running on a server, but a Standard license can just manage the operating system and the hardware. 33. The additional cost per virtualized server for System Center/ Requires that Software Assurance be included or extended for the server operating system licenses. 34. The average cost per GB for SAN storage. Includes amortized purchase cost + annual support and maintenance contract costs 35. The average annual compound decrease in per GB storage cost over the analysis period, starting in year 2. 36. The uplift to normal server power and cooling costs based on extra workload / utilization for virtualized servers.

Copyright © 2001-2008 Alinean, Inc. Page 21

ROI Analyst™

Appendix C: TCO and Benefit Details Internal Application Time to Market With Microsoft Integrated Virtualization, application lifecycle time can be reduced by helping to reduce the time for lab and system configuration, and bug reproduction. Resources can be freed from manual configuration and bug support tasks to more valuable application lifecycle management and support tasks. Releasing applications earlier can help drive business benefits of these internal applications including productivity gains and cost savings. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$6,068,516 Operating Expense (Allocated) Indirect Benefits Improve Business Agility VP Application Development

Internal Application Time to Market - Internal Development Projects

Benefits with Microsoft (To Be)

Current (As Is)

Proposed with Microsoft Virtualization (To Be)

Major software releases Number of releases per year

6

Duration (in days) to provision test / QA systems Duration (in days) to reproduce bugs Total days per year for provisioning and bug reproduction Average value per day

6

16.0

50.0%

8.0

20.0

50.0%

10.0

216.0

108.0

108.0

$1,775,304

$1,775,304

2.7

$16,438

Total annual provisioning and bug reproduction lifecycle business value cost

$3,550,608

$16,438

Software upgrade releases Number of releases per year

10

Duration (in days) to provision test / QA systems

5.3

50.0%

6.7

50.0%

3.4

120.0

59.0

61.0

$493,200

$242,490

$250,710

$4,043,808

$2,017,794

$2,026,014

Duration (in days) to reproduce bugs Total days per year for provisioning and bug reproduction Average value per day

$4,110

Total annual provisioning and bug reproduction lifecycle business value cost Total Major software releases reduction in application lifecycle Software upgrade releases reduction in application lifecycle Internal Application Time to Market

10

Year 1

$4,110

18.0 days per release

9.0%

5.9 days per release

8.8%

Year 2

Year 3

Year 4

Year 5

Current (As Is)

$4,043,808

$4,448,189

$4,893,008

$5,382,309

$5,920,540

With Microsoft Integrated Virtualization (To Be)

$2,026,014

$2,228,615

$2,451,477

$2,696,625

$2,966,288

Total net savings (As Is - To Be)

$2,017,794

$2,219,574

$2,441,531

$2,685,684

$2,954,252

Average growth in costs and benefits (increase in releases, test cycles per build and provisioning requests)

Realized Benefits (Probable)

Year 1

10.0%

Year 2

Year 3

Solution A Current (As Is)

$4,043,808

$4,448,189

$4,893,008

Solution B With Microsoft Integrated Virtualization (To Be)

$2,026,014

$2,228,615

$2,451,477

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$2,017,794

$2,219,574

$2,441,531

Q1

$0.00

$504,448.50

$554,893.50

Q2

$504,448.50

$554,893.50

$610,382.75

Q3

$504,448.50

$554,893.50

$610,382.75

Q4

$504,448.50

$554,893.50

$610,382.75

$1,513,346

$2,169,129

$2,386,042

Realized Total Benefits

Desktop Virtualization Client Replacement Capital Cost Avoidance With Microsoft Integrated Virtualization, existing PCs do not need to be upgraded as often in order to support new operating systems and applications, helping to extend the lifecycle and avoid replacements. This can help avoid capital investments to purchase these new replacement systems. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$5,928,316 Net Fixed Assets (NFA - Allocated) Direct Benefits Reduce IT Capital Costs PC Manager

Copyright © 2001-2008 Alinean, Inc. Page 22

ROI Analyst™

Current (As Is) Client Replacement Costs

Year 1

Year 2

Year 3

Year 4

Year 5

Current desktop PCs replacement plans

1,573

1,730

1,903

2,094

Desktop PC client replacement costs

$900

$900

$900

$900

$900

$1,415,700

$1,557,000

$1,712,700

$1,884,600

$2,072,700

Desktop PC replacement capital cost Current notebook PCs replacement plans

1,287

1,416

1,557

1,713

1,884

$1,400

$1,400

$1,400

$1,400

$1,400

$1,801,800

$1,982,400

$2,179,800

$2,398,200

$2,637,600

Notebook PC client replacement costs Notebook PC replacement capital cost

Lifecycle Extension

Planned Extension of Current Lifecycle with Microsoft Replacement Lifecycle (in months) Virtualization

Planned Extended Lifecycle with Microsoft Virtualization (in months)

n1

Desktop PC lifecycle extension

36

68.0%

60

Notebook PC lifecycle extension

36

68.0%

60

Proposed (To Be) Client Replacement Costs

2,303

Year 1

Current desktop PCs replacement plans Percentage to migrate to thin client solutions Thin client migrations Cost for thin clients Total thin client migration cost With extended lifecycle, minus the thin client migrations, the planned desktop PC client replacements

Year 2

Year 3

Year 4

Year 5

1,573

1,730

1,903

2,094

2,303

0.0%

0.0%

0.0%

0.0%

0.0%

0

0

0

0

0

$250

$250

$250

$250

$250

$0

$0

$0

$0

$0

1,903

0

0

1,573

1,730

$900

$900

$900

$900

$900

Desktop PC replacement capital cost

$0

$0

$2,993,419

$3,622,620

$4,382,609

Total desktop PC capital costs with Microsoft Virtualization

$0

$0

$2,993,419

$3,622,620

$4,382,609

1,287

1,416

1,557

1,713

1,884

0.0%

0.0%

0.0%

0.0%

0.0%

0

0

0

0

0

$250

$250

$250

$250

$250

$0

$0

$0

$0

$0

Desktop PC client replacement costs

Current notebook PCs replacement plans Percentage to migrate to thin client solutions Thin client migrations Cost for thin clients Total thin client migration cost With extended lifecycle, the planned notebook PC client replacements

0

0

1,287

1,416

1,557

$1,400

$1,400

$1,400

$1,400

$1,400

Notebook PC replacement capital cost

$0

$0

$2,003,859

$2,425,608

$2,933,388

Total notebook PC capital costs with Microsoft Virtualization

$0

$0

$2,003,859

$2,425,608

$2,933,388

Total proposed (To Be) client replacement capital costs

$0

$0

$4,997,278

$6,048,228

$7,315,997

Notebook PC client replacement costs

Desktop Virtualization Client Replacement Capital Cost Avoidance Current (As Is)

Year 1

Year 3

Year 4

Year 5

$3,539,400

$3,892,500

$4,282,800

$0

$0

$4,997,278

$6,048,228

$7,315,997

$3,217,500

$3,539,400

($1,104,778)

($1,765,428)

($2,605,697)

With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Year 2

$3,217,500

$4,710,300

Notes: 1. Set on Solution Selection

Realized Benefits (Probable) Solution A Current (As Is)

Year 1

Year 2

Year 3

$3,217,500

$3,539,400

$3,892,500

$0

$0

$4,997,278

$3,217,500

$3,539,400

($1,104,778)

Q1

$0.00

$804,375.00

$884,850.00

Q2

$804,375.00

$884,850.00

($276,194.50)

Q3

$804,375.00

$884,850.00

($276,194.50)

Q4

$804,375.00

$884,850.00

($276,194.50)

$2,413,125

$3,458,925

$56,266

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Copyright © 2001-2008 Alinean, Inc. Page 23

ROI Analyst™ Microsoft Integrated Virtualization Licensing Costs To implement the Microsoft Integrated Virtualization solution, an investment in licensing is required for servers, virtualization software and virtualization management. These costs are specified on Solution Selection page and detailed in Investment section - summarized here for TCO comparison only. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

Production Server Virtualization Licensing Costs

$5,430,884 Net Fixed Assets (NFA - Allocated) Direct Benefits Reduce IT Capital Costs PC Manager

Initial / Year 1

Windows Server licensing

Year 2

Year 3

Year 4

Year 5

$56,801

$6,471

$6,471

$7,190

$7,909

Virtualization Management

$302,733

$27,671

$25,749

$25,338

$25,138

Total

$359,534

$34,142

$32,220

$32,528

$33,047

Development and Test Lab Server Virtualization Licensing Costs

Initial / Year 1

Year 2

Year 3

Year 4

Year 5

Windows Server licensing

$44,578

$7,909

$9,347

$10,066

Virtualization Management

$95,622

$8,524

$7,969

$7,471

$8,333

$140,200

$16,433

$17,316

$17,537

$19,118

Total Desktop and Application Server Virtualization Licensing Costs

Initial / Year 1

Year 2

Year 3

Year 4

$10,785

Year 5

Virtualization Client licensing

$1,054,680

$105,468

$116,015

$127,680

$140,464

Virtualization Host Servers and Management Software

$3,034,240

$303,424

$344,800

$372,384

$413,760

Total

$4,088,920

$408,892

$460,815

$500,064

$554,224

Total Server Virtualization Implementation and Training Costs Total

Realized Benefits (Probable)

Initial / Year 1

Year 2

$4,588,654

Year 3

$459,467

Year 1

Year 4

$510,351

Year 5

$550,129

Year 2

$606,389

Year 3

Solution A Current (As Is)

$0

$0

$0

Solution B With Microsoft Integrated Virtualization (To Be)

$0

$0

$0

$4,588,654

$459,467

$510,351

Q1

$0.00

$1,147,163.50

$114,866.75

Q2

$1,147,163.50

$114,866.75

$127,587.75

Q3

$1,147,163.50

$114,866.75

$127,587.75

Q4

$1,147,163.50

$114,866.75

$127,587.75

$3,441,490

$1,491,764

$497,630

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Existing Production Server Cost Avoidance With Microsoft Integrated Virtualization, existing server workloads can be consolidated on fewer physical servers, with typical consolidation ratios of 3:1 to 8:1 consolidations. With this consolidation, existing server assets can be retired or reallocated, reducing annual amortized purchase costs and annual support and maintenance contract expenses. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

Current (As Is) Production Server Annual Costs File / print servers

$4,497,483 Net Fixed Assets (NFA - Cumulative) Direct Benefits Reduce IT Capital Costs IT Director

Number of Servers

Average Annual Cost per Server (amortized purchase price + support and maintenance Total Number of CPUs contracts)

Total Annual Cost

200

400

$4,694

$938,800

E-mail servers

50

200

$9,387

$469,350

Application servers

40

80

$4,694

$187,760

Database servers

24

96

$9,387

$225,288

Copyright © 2001-2008 Alinean, Inc. Page 24

ROI Analyst™ Web servers

50

100

$4,694

Failover servers

50

100

$4,694

414

976

Total

5.8 to 1 Average Annual Cost per Server (amortized purchase price + support and maintenance Total Number of CPUs contracts)

Number of Servers

Consolidated Production Servers

$234,700 $2,290,598

With Microsoft Integrated Virtualization, server consolidation ratio expected:

Proposed with Microsoft Virtualization (To Be) Production Server Annual Costs

$234,700

Total Annual Cost

71

284

$11,147

$791,437

Specify name

0

0

$11,147

$0

Specify name

0

0

$11,147

$0

Specify name

0

0

$11,147

$0

Specify name

0

0

$11,147

$0

Specify name

0

0

$11,147

71

284

Total Existing Production Server Cost Avoidance

Year 1

Current (As Is) With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Year 2

$0 $791,437

Year 3

Year 4

Year 5

$2,290,598

$2,290,598

$2,290,598

$2,290,598

$791,437

$791,437

$791,437

$791,437

$2,290,598 $791,437

$1,499,161

$1,499,161

$1,499,161

$1,499,161

$1,499,161

Annual growth in costs and savings (if any - starting in year 2)

0.0% n1

Notes: 1. Annual growth in costs and savings expected (if any).

Realized Benefits (Probable)

Year 1

Solution A Current (As Is)

Year 2

Year 3

$2,290,598

$2,290,598

$2,290,598

$791,437

$791,437

$791,437

$1,499,161

$1,499,161

$1,499,161

Q1

$0.00

$1,499,161.00

$1,499,161.00

Q2

$1,499,161.00

$0.00

$0.00

Q3

$0.00

$0.00

$0.00

Q4

$0.00

$0.00

$0.00

$1,499,161

$1,499,161

$1,499,161

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Production Server Unplanned Downtime Avoidance With Microsoft Integrated Virtualization, reliability of servers can be improved through automated performance and availability and workload management, helping to reallocate workloads should issues occur. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$3,719,330 Operating Expense (Allocated) Indirect Benefits Reduce Unplanned Downtime IT Director

Production Server Unplanned Downtime Avoidance

Benefits with Microsoft (To Be)

Current (As Is)

Proposed with Microsoft Virtualization (To Be)

Total number of servers

414

Annual unplanned downtime hours per year

5.00

40.0%

3.00

Total unplanned downtime hours per year

2,070.0

1,857.0

213.0

Average number of internal users impacted per unplanned downtime hour

180.00

Percentage productivity impact

180.00

10.0%

Total person hours of lost productivity for internal users

37,260.0

Average burdened hourly salary for users

10.0% n1 33,426.0

3,834.0

$36.10

Total unplanned downtime annual cost Production Server Unplanned Downtime Avoidance

71

$1,345,086

Year 1

Year 2

Year 3

$36.10 $1,206,679

Year 4

$138,407

Year 5

Copyright © 2001-2008 Alinean, Inc. Page 25

ROI Analyst™ Current (As Is) With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

$1,345,086

$1,517,257

$1,711,466

$1,930,534

$138,407

$156,124

$176,108

$198,650

$2,177,642 $224,077

$1,206,679

$1,361,133

$1,535,358

$1,731,884

$1,953,565

Annual growth in costs and savings (if any - starting in year 2)

12.8% n2

Notes: 1. May be higher for To Be solution as consolidation of servers occurs. 2. Annual growth in costs and savings expected (if any). Includes specified growth in number of servers, as well as expected increase in annual salary.

Realized Benefits (Probable)

Year 1

Solution A Current (As Is)

Year 2

Year 3

$1,345,086

$1,517,257

$1,711,466

$138,407

$156,124

$176,108

$1,206,679

$1,361,133

$1,535,358

Q1

$0.00

$301,669.65

$340,283.25

Q2

$301,669.65

$340,283.25

$383,839.50

Q3

$301,669.65

$340,283.25

$383,839.50

Q4

$301,669.65

$340,283.25

$383,839.50

$905,009

$1,322,519

$1,491,802

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Production Server Operations and Administration Efficiency Savings With Microsoft Integrated Virtualization, consolidation of physical servers can help to reduce overhead tasks relating to break-fix management and support, inventory and asset management, vendor management, and backup and recover / disaster recovery planning. These savings are usually proportional to the physical server consolidation savings. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$2,653,702 Operating Expense (Allocated) Direct Benefits Reduce IT Operations and Administration Costs IT Director

Production Server Operations and Administration Efficiency Savings

Benefits with Microsoft (To Be)

Current (As Is)

Proposed with Microsoft Virtualization (To Be)

Annual person hours per year Break-fix management / problem management

6,486.0

83.0%

1,102.6

Performance and availability management

5,188.8

83.0%

882.1

Backup / recover and disaster recovery planning

3,706.3

83.0%

630.1

Security management

2,882.7

83.0%

490.1

Asset management

1,945.8

83.0%

330.8

20,209.6

16,773.9

3,435.7

$964,402

$800,450

$163,952

$62,100

83.0%

$10,557

$1,026,502

$851,993

$174,509

Total person hours per year Average burdened hourly salary for server provisioning labor

$47.72

Total annual change management labor costs Average travel costs per year Total annual change management labor and travel costs Production Server Operations and Administration Efficiency Savings Current (As Is)

Year 1

Year 2

Year 3

$47.72

Year 4

Year 5

$1,026,502

$1,170,212

$1,334,042

$1,520,808

With Microsoft Integrated Virtualization (To Be)

$174,509

$198,940

$226,792

$258,543

$1,733,721 $294,739

Total Net Savings (As Is - To Be)

$851,993

$971,272

$1,107,250

$1,262,265

$1,438,982

Annual growth in costs and savings (if any - starting in year 2)

14.0% n1

Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in annual tasks, as well as expected increase in annual salary.

Realized Benefits (Probable) Solution A Current (As Is) Solution B With Microsoft Integrated Virtualization (To Be)

Year 1

Year 2

Year 3

$1,026,502

$1,170,212

$1,334,042

$174,509

$198,940

$226,792

Copyright © 2001-2008 Alinean, Inc. Page 26

ROI Analyst™ Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$851,993

$971,272

$1,107,250

Q1

$0.00

$212,998.25

$242,818.00

Q2

$212,998.25

$242,818.00

$276,812.50

Q3

$212,998.25

$242,818.00

$276,812.50

Q4

$212,998.25

$242,818.00

$276,812.50

$638,995

$941,452

$1,073,256

Realized Total Benefits

Desktop Virtualization Client Replacement Labor Cost Avoidance With Microsoft Integrated Virtualization, existing PCs do not need to be upgraded as often in order to support new operating systems and applications, helping to extend the lifecycle and avoid replacements. This can help avoid capital investments to purchase these new replacement systems. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

Current (As Is) Client Replacement Labor Costs

$2,564,592 Net Fixed Assets (NFA - Allocated) Direct Benefits Reduce IT Capital Costs PC Manager

Year 1

Current desktop PCs replacement plans

Year 2

Year 3

Year 4

Year 5

1,573

1,730

1,903

2,094

2,303

Person hours to manage new PC deployment

5.0

5.0

5.0

5.0

5.0

Person hours to manage old PC retirement

1.8

1.8

1.8

1.8

1.8

10,696

11,764

12,940

14,239

15,660

Total person hours Average burdened salary for desktop provisioning Total labor cost

$39.77

$41.36

$43.01

$44.73

$46.52

$425,380

$486,559

$556,549

$636,910

$728,503

Additional disposal fees, procurement, setup or installation fees per client deployment

$120.00

$120.00

$120.00

$120.00

$120.00

Total fees

$188,760

$207,600

$228,360

$251,280

$276,360

Total desktop PC replacement labor costs

$614,140

$694,159

$784,909

$888,190

$1,004,863

Current notebook PCs replacement plans

1,287

1,416

1,557

1,713

1,884

Person hours to manage new PC deployment

5.0

5.0

5.0

5.0

5.0

Person hours to manage old PC retirement

1.8

1.8

1.8

1.8

1.8

8,752

9,629

10,588

11,648

12,811

Total person hours Average burdened salary for desktop provisioning Total labor cost

$39.77

$41.36

$43.01

$44.73

$46.52

$348,067

$398,255

$455,390

$521,015

$595,968

Additional disposal fees, procurement, setup or installation fees per client deployment

$120.00

$120.00

$120.00

$120.00

$120.00

Total fees

$154,440

$169,920

$186,840

$205,560

$226,080

Total desktop PC replacement labor costs

$502,507

$568,175

$642,230

$726,575

$822,048

$1,116,647

$1,262,334

$1,427,139

$1,614,765

$1,826,911

Total current (As Is) PC replacement labor costs Proposed (To Be) Client Replacement Labor Costs Desktop PC to thin client replacement plans

Year 1

Year 2

Year 3

Year 4

Year 5

0

0

0

0

0

Person hours to manage new thin client deployment

1.0

1.0

1.0

1.0

1.0

Person hours to manage old PC retirement

1.8

1.8

1.8

1.8

1.8

Total person hours

0.0

0.0

0.0

0.0

0.0

$39.77

$41.36

$43.01

$44.73

$46.52

$0

$0

$0

$0

$0

Average burdened salary for desktop provisioning Total labor cost Additional disposal fees, procurement, setup or installation fees per client deployment

$120.00

$120.00

$120.00

$120.00

$120.00

Total fees

$0

$0

$0

$0

$0

Total desktop PC replacement labor costs

$0

$0

$0

$0

$0

Notebook PC to thin client replacement plans

0

0

0

0

0

Person hours to manage new thin client deployment

1.0

1.0

1.0

1.0

1.0

Person hours to manage old PC retirement

1.8

1.8

1.8

1.8

1.8

Total person hours

0.0

0.0

0.0

0.0

0.0

$39.77

$41.36

$43.01

$44.73

$46.52

$0

$0

$0

$0

$0

Average burdened salary for desktop provisioning Total labor cost Additional disposal fees, procurement, setup or installation fees per client deployment

$60.00

$60.00

$60.00

$60.00

$60.00

Total fees

$0

$0

$0

$0

$0

Total notebook PC replacement labor costs

$0

$0

$0

$0

$0

Proposed (To Be) desktop PCs replacement plans with Microsoft Virtualization

0

0

1,573

1,730

1,903

Person hours to manage new PC deployment

5.0

5.0

5.0

5.0

5.0

Person hours to manage old PC retirement

1.8

1.8

1.8

1.8

1.8

Copyright © 2001-2008 Alinean, Inc. Page 27

ROI Analyst™ Total person hours Average burdened salary for desktop provisioning Total labor cost Additional disposal fees, procurement, setup or installation fees per client deployment

0.0

0.0

10,696.4

11,764.0

$39.77

$41.36

$43.01

$44.73

12,940.4 $46.52

$0

$0

$460,052

$526,204

$601,987

$120.00

$120.00

$120.00

$120.00

$120.00

Total fees

$0

$0

$188,760

$207,600

$228,360

Total desktop PC replacement labor costs

$0

$0

$648,812

$733,804

$830,347

Proposed (To Be) notebook PCs replacement plans with Microsoft Virtualization

0

0

1,287

1,416

1,557

Person hours to manage new PC deployment

5.0

5.0

5.0

5.0

5.0

Person hours to manage old PC retirement

1.8

1.8

1.8

1.8

1.8

Total person hours

0.0

0.0

8,751.6

9,628.8

10,587.6

$39.77

$41.36

$43.01

$44.73

$46.52

$0

$0

$376,406

$430,696

$492,535

Average burdened salary for desktop provisioning Total labor cost Additional disposal fees, procurement, setup or installation fees per client deployment

$120.00

$120.00

$120.00

$120.00

$120.00

Total fees

$0

$0

$154,440

$169,920

$186,840

Total notebook PC replacement labor costs

$0

$0

$530,846

$600,616

$679,375

Total (To Be) replacement labor costs

$0

$0

$1,179,658

$1,334,420

$1,509,722

Desktop Virtualization Client Replacement Labor Cost Avoidance Current (As Is)

Year 1

Realized Benefits (Probable) Solution A Current (As Is)

Year 3

Year 4

Year 5

$1,262,334

$1,427,139

$1,614,765

$1,826,911

$0

$0

$1,179,658

$1,334,420

$1,509,722

$1,116,647

$1,262,334

$247,481

$280,345

$317,189

With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Year 2

$1,116,647

Year 1

Year 2

Year 3

$1,116,647

$1,262,334

$1,427,139

$0

$0

$1,179,658

$1,116,647

$1,262,334

$247,481

Q1

$0.00

$279,161.75

$315,583.50

Q2

$279,161.75

$315,583.50

$61,870.25

Q3

$279,161.75

$315,583.50

$61,870.25

Q4

$279,161.75

$315,583.50

$61,870.25

$837,485

$1,225,912

$501,194

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Production Server Change Management Efficiency Savings With Microsoft Integrated Virtualization, physical changes can be performed in a virtual environment leading to dramatic 40-80% improvements in reducing the person hours it takes to perform new server installations including avoidance of procurement and vendor management costs, physical hardware setup and deployment, as well as better OS / application setup and delivery efficiency. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$2,465,821 Operating Expense (Allocated) Direct Benefits Reduce IT Operations and Administration Costs IT Director

Production Server Change Management Efficiency Savings

Benefits with Microsoft (To Be)

Current (As Is)

Proposed with Microsoft Virtualization (To Be)

Number of physical moves and reconfigurations

414

100%

0

Person hours per physical move and reconfiguration

2.6

100%

0.0

1,076.4

1,076.4

0.0

4,968

0%

4,968

2.0

70.0%

0.6

9,936.0

6,955.2

2,980.8

1,656

0%

1,656

2.0

70.0%

0.6

3,312.0

2,318.4

993.6

14,324.4

10,350.0

3,974.4

Total person hours Number of operating system patches Person hours per operating system patch Total person hours Number of application patches and upgrades Person hours per operating system patch Total person hours Total person hours for all tasks Average burdened hourly salary for server provisioning labor

$45.89

$45.89

Copyright © 2001-2008 Alinean, Inc. Page 28

ROI Analyst™ Total annual change management labor costs

$657,347

$474,962

$182,385

Average travel costs per year

$316,710

100.0%

$0

Total annual change management labor and travel costs

$974,057

$791,672

$182,385

Production Server Change Management Efficiency Savings

Year 1

Year 2

Year 3

Year 4

Year 5

Current (As Is)

$974,057

$1,110,425

$1,265,885

$1,443,109

With Microsoft Integrated Virtualization (To Be)

$182,385

$207,919

$237,028

$270,212

$1,645,144 $308,042

Total Net Savings (As Is - To Be)

$791,672

$902,506

$1,028,857

$1,172,897

$1,337,102

Annual growth in costs and savings (if any - starting in year 2)

14.0% n1

Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in annual tasks, as well as expected increase in annual salary.

Realized Benefits (Probable)

Year 1

Year 2

Year 3

Solution A Current (As Is)

$974,057

$1,110,425

$1,265,885

Solution B With Microsoft Integrated Virtualization (To Be)

$182,385

$207,919

$237,028

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$791,672

$902,506

$1,028,857

Q1

$0.00

$197,918.00

$225,626.50

Q2

$197,918.00

$225,626.50

$257,214.25

Q3

$197,918.00

$225,626.50

$257,214.25

Q4

$197,918.00

$225,626.50

$257,214.25

$593,754

$874,798

$997,269

Realized Total Benefits

Development and Test Lab Server Provisioning Efficiency Savings With Microsoft Integrated Virtualization, physical changes can be performed in a virtual environment leading to dramatic 60-90% improvements in reducing the person hours it takes to perform development and test lab / QA new server installations and configurations. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$2,111,618 Operating Expense (Allocated) Direct Benefits Reduce IT Operations and Administration Costs VP Application Development

Development and Test Lab Server Provisioning Efficiency Savings - Internal Development Projects

Proposed with Microsoft Virtualization (To Be)

Benefits with Microsoft (To Be)

Current (As Is)

Major software releases Number of releases per year Average number of test cycle builds per release Average number of test server provisioning requests per release Total number of server provisioning requests per year

Average burdened labor cost per hour for server provisioning Total annual provisioning cost

6 10

50

50

3,000

Average number of person hours to provision a typical test / lab server Total provisioning person hours per year

6 10 0

3,000

4.0

90.0%

0.4

12,000

10,800

1,200

$495,612

$55,068

$45.89 $550,680

$45.89

Software upgrade releases Number of releases per year

10

Average number of test cycle builds per release Average number of test server provisioning requests per release Total number of server provisioning requests per year

Average burdened labor cost per hour for server provisioning Total annual provisioning cost Total

Development and Test Lab Server Provisioning Efficiency Savings - Revenue Generatiing Projects (ISV)

5

25

25

1,250

0

4.0

90.0%

0.4

5,000

4,500

500

$229,450

$206,505

$22,945

$780,130

$702,117

$78,013

Average number of person hours to provision a typical test / lab server Total provisioning person hours per year

10

5

$45.89

$45.89

Benefits with Microsoft (To Be)

Current (As Is)

1,250

Proposed with Microsoft Virtualization (To Be)

Major software releases Number of releases per year

0

0

Copyright © 2001-2008 Alinean, Inc. Page 29

ROI Analyst™ Average number of test cycle builds per release

12

Average number of test server provisioning requests per release

60

Total number of server provisioning requests per year Average number of person hours to provision a typical test / lab server Total provisioning person hours per year Average burdened labor cost per hour for server provisioning

12 60

0

0

0

4.0

90.0%

0.4

0

0

0

$45.89

Total annual provisioning cost

$45.89

$0

$0

$0

Software upgrade releases Number of releases per year

0

Average number of test cycle builds per release

6

6

30

30

Average number of test server provisioning requests per release Total number of server provisioning requests per year Average number of person hours to provision a typical test / lab server Total provisioning person hours per year Average burdened labor cost per hour for server provisioning

Total

Current (As Is)

Year 1

0

0

90.0%

0.4

0

0

0

Year 2

$45.89

$0

$0

$0

$0

$0

$0

Year 3

Year 4

Year 5

$780,130

$858,143

$943,957

$1,038,353

$78,013

$85,814

$94,395

$103,835

$114,219

$702,117

$772,329

$849,562

$934,518

$1,027,969

With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

0 4.0 $45.89

Total annual provisioning cost

Development and Test Lab Server Provisioning Efficiency Savings

0

$1,142,188

Average growth in costs and benefits (increase in releases, test cycles per build and provisioning requests)

Realized Benefits (Probable)

Year 1

10.0%

Year 2

Solution A Current (As Is)

Year 3

$780,130

$858,143

$943,957

$78,013

$85,814

$94,395

$702,117

$772,329

$849,562

Q1

$0.00

$175,529.25

$193,082.25

Q2

$175,529.25

$193,082.25

$212,390.50

Q3

$175,529.25

$193,082.25

$212,390.50

Q4

$175,529.25

$193,082.25

$212,390.50

$526,588

$754,776

$830,254

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Desktop Virtualization Client Change Management Cost Avoidance With Microsoft Integrated Virtualization, change management for clients is streamlined and centralized, making it easier to update operating systems and manage changes to applications. (new deployments, updates and retirements). Based on the type of virtualization selected, upgrade regression testing and deployment costs are reduced at varying levels, from 10% for basic virtualization using terminal services, to 60% or more using application virtualization. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$1,829,476 Operating Expense (Allocated) Direct Benefits Reduce IT Operations and Administration Costs PC Manager

Desktop Virtualization Client Change Management Cost Avoidance

Benefits with Microsoft (To Be)

Current (As Is)

Proposed with Microsoft Virtualization (To Be)

Operating system updates (patches) Annual number of times operating system updates are performed per year Average number of clients upgraded per cycle Average annual person hours per client upgraded Total annual person hours per upgrade Average hourly burdened labor cost Total annual labor cost for OS updates

12

12

4,800

4,800

0.18

80.0%

0.04

10,368.0

8,064.0

2,304.0

$320,705

$91,630

$39.77 $412,335

$39.77

New application deployments Annual number of times new application deployments are performed per year Average number of clients upgraded per cycle Average annual person hours per client upgraded Total annual person hours per upgrade Average hourly burdened labor cost

4

4

600

600

0.20

80.0%

480.0

384.0

$39.77

0.04 96.0 $39.77

Copyright © 2001-2008 Alinean, Inc. Page 30

ROI Analyst™ Total annual labor cost for new application deployments

$19,090

$15,272

$3,818

Application upgrades Annual number of times application upgrades are performed per year Average number of clients upgraded per cycle Average annual person hours per client upgraded Total annual person hours per upgrade Average hourly burdened labor cost

4

4

900

900

0.15

80.0%

0.03

540.0

432.0

108.0

$39.77

Total annual labor cost for application upgrades

$39.77

$21,476

$17,181

$4,295

Application updates (patches) Annual number of times application updates are performed per year Average number of clients updated per cycle Average annual person hours per client updated Total annual person hours per updated Average hourly burdened labor cost

12

12

1,800

1,800

0.20

80.0%

0.04

4,320.0

3,456.0

864.0

$137,445

$34,361

$39.77

Total annual labor cost for application updates

$39.77

$171,806

Application retirement Annual number of times application retirements are performed per year Average number of clients affected per cycle Average annual person hours per client affected Total annual person hours per retirement cycle Average hourly burdened labor cost

4 900

0.10

80.0%

360.0

288.0

0.02 72.0

$39.77

Total annual labor cost for application retirement Total annual change management labor cost

Change Management Travel costs

$39.77

$14,317

$11,454

$2,863

$639,024

$502,057

$136,967

Benefits with Microsoft (To Be)

Current (As Is)

Total annual change management travel cost Desktop Virtualization Client Change Management Cost Avoidance

4 900

$177,600

Year 1

Year 2

Year 3

Proposed with Microsoft Virtualization (To Be)

78.6%

Year 4

$38,006

Year 5

Current (As Is)

$816,624

$849,289

$883,261

$918,591

$955,335

With Microsoft Integrated Virtualization (To Be)

$174,973

$181,972

$189,251

$196,821

$204,694

Total Net Savings (As Is - To Be)

$641,651

$667,317

$694,010

$721,770

$750,641

Annual growth in costs and benefits

4.0% n1

Notes: 1. Annual growth in annual salaries from Current Practices.

Realized Benefits (Probable)

Year 1

Year 2

Year 3

Solution A Current (As Is)

$816,624

$849,289

$883,261

Solution B With Microsoft Integrated Virtualization (To Be)

$174,973

$181,972

$189,251

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$641,651

$667,317

$694,010

Q1

$0.00

$160,412.75

$166,829.25

Q2

$160,412.75

$166,829.25

$173,502.50

Q3

$160,412.75

$166,829.25

$173,502.50

Q4

$160,412.75

$166,829.25

$173,502.50

$481,238

$660,900

$687,337

Realized Total Benefits

Microsoft Integrated Virtualization Implementation and Training Costs To implement the Microsoft Integrated Virtualization solution, internal labor, professional services and training may be required. These costs are specified in Solution Selection, and detailed in the Investment section - summarized here for TCO comparison only. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

Production Server Virtualization Implementation and Training Costs

$1,816,105 Net Fixed Assets (NFA - Allocated) Direct Benefits Reduce IT Capital Costs PC Manager

Initial / Year 1

Year 2

Year 3

Year 4

Year 5

Copyright © 2001-2008 Alinean, Inc. Page 31

ROI Analyst™ Production Server Virtualization Professional Services Costs

$195,250

$0

$0

$0

$0

$45,615

$0

$0

$0

$0

$0

$0

$0

$0

$0

$240,865

$0

$0

$0

$0

Production Server Virtualization Implementation Labor Costs Production Server Virtualization Training Costs Total Development and Test Lab Virtualization Implementation and Training Costs

Initial / Year 1

Year 2

Year 3

Year 4

Year 5

Development and Test Lab Virtualization Professional Services Costs

$71,500

$0

$0

$0

$0

Development and Test Lab Virtualization Implementation Labor Costs

$16,704

$0

$0

$0

$0

$0

$0

$0

$0

$0

$88,204

$0

$0

$0

$0

Development and Test Lab Virtualization Training Costs Total Desktop and Application Virtualization Implementation and Training Costs

Initial / Year 1

Year 2

Year 3

Year 4

Year 5

Desktop and Application Virtualization Professional Services Costs

$918,000

$0

$0

$0

$0

Desktop and Application Virtualization Implementation Labor Costs

$569,036

$0

$0

$0

$0

$0

$0

$0

$0

$0

$1,487,036

$0

$0

$0

$0

Desktop and Application Virtualization Training Costs Total Total Server Virtualization Implementation and Training Costs

Initial / Year 1

Total

Year 2

$1,816,105

Realized Benefits (Probable)

Year 3

Year 4

$0

Year 1

Year 5

$0

$0

Year 2

$0

Year 3

Solution A Current (As Is)

$0

$0

$0

Solution B With Microsoft Integrated Virtualization (To Be)

$0

$0

$0

$1,816,105

$0

$0

Q1

$0.00

$454,026.25

$0.00

Q2

$454,026.25

$0.00

$0.00

Q3

$454,026.25

$0.00

$0.00

Q4

$454,026.25

$0.00

$0.00

$1,362,079

$454,026

$0

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Desktop Virtualization Client Operations and Support Efficiency With Microsoft Integrated Virtualization, PC configuration management and security is centralized and better managed / controlled helping to proactively avoid incidents, and reducing PC administration and support costs as a result. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$1,788,694 Operating Expense (Allocated) Direct Benefits Reduce IT Operations and Administration Costs PC Manager

Desktop Virtualization Client Operations and Support Efficiency

Current (As Is)

Benefits with Microsoft (To Be)

Proposed with Microsoft Virtualization (To Be)

Client service desk costs Client related service desk calls per year

20,520

50.0%

Average burdened labor cost per client incident service desk call

$36.54

24.0%

$27.77

$749,801

$464,881

$284,920

Number of break-fix management FTEs

1.60

43.0%

0.91

Number of performance and availability management FTEs

0.32

24.0%

0.24

Number of security and compliance management FTEs

1.28

33.0%

0.86

Number of asset management, licensing and inventory FTEs

0.96

8.0%

0.88

Total FTEs

4.16

0.00

2.89

$82,719

24.0%

$62,866

$344,111

$162,428

$181,683

Total annual client incident service desk costs

10,260

PC administration costs

Average burdened labor cost per PC engineering FTE Total annual labor costs

Copyright © 2001-2008 Alinean, Inc. Page 32

ROI Analyst™ Total annual related travel costs Total PC support and administration costs Desktop Virtualization Client Operations and Support Efficiency Current (As Is)

Year 1

Year 2

$83

47.2%

$44

$1,093,995

$627,348

$466,647

Year 3

Year 4

Year 5

$1,093,995

$1,137,755

$1,183,265

$1,230,596

$1,279,820

With Microsoft Integrated Virtualization (To Be)

$466,647

$485,313

$504,726

$524,915

$545,912

Total Net Savings (As Is - To Be)

$627,348

$652,442

$678,539

$705,681

$733,908

Annual growth in costs and benefits

4.0% n1

Notes: 1. Annual growth in annual salaries from Current Practices.

Realized Benefits (Probable)

Year 1

Solution A Current (As Is)

Year 2

Year 3

$1,093,995

$1,137,755

$1,183,265

Solution B With Microsoft Integrated Virtualization (To Be)

$466,647

$485,313

$504,726

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$627,348

$652,442

$678,539

Q1

$0.00

$156,837.00

$163,110.50

Q2

$156,837.00

$163,110.50

$169,634.75

Q3

$156,837.00

$163,110.50

$169,634.75

Q4

$156,837.00

$163,110.50

$169,634.75

$470,511

$646,168

$672,015

Realized Total Benefits

Existing Development and Test Lab Server Cost Avoidance With Microsoft Integrated Virtualization, existing server workloads can be consolidated on fewer physical servers, with typical consolidation ratios of 3:1 to 8:1 consolidations. With this consolidation, existing server assets can be retired or reallocated, reducing annual amortized purchase costs and annual support and maintenance contract expenses. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

Current (As Is) Development and Test Lab Server Annual Costs

$1,526,354 Net Fixed Assets (NFA - Allocated) Direct Benefits Reduce IT Capital Costs VP Application Development

Average Annual Cost per Server (amortized purchase price + support and maintenance Total Number of CPUs contracts)

Number of Servers

Total Annual Cost

Development servers

20

2

$4,694

$93,880

Unit test servers

40

2

$4,694

$187,760

Integration test servers

40

4

$9,387

$375,480

Database test servers

20

4

$9,387

$187,740

Other development, test and QA servers

0

2

$4,694

$0

Failover servers

0

2

$4,694

120

16

Total

With Microsoft Integrated Virtualization, server consolidation ratio expected:

Proposed with Microsoft Virtualization (To Be) Development and Test Lab Server Annual Costs

4.6 to 1 Average Annual Cost per Server (amortized purchase price + support and maintenance Total Number of CPUs contracts)

Number of Servers

Consolidated Development / Test Servers

$0 $844,860

Total Annual Cost

26

4

$11,147

$289,822

Specify name

0

4

$11,147

$0

Specify name

0

4

$11,147

$0

Specify name

0

4

$11,147

$0

Specify name

0

4

$11,147

$0

Specify name

0

4

$11,147

26

24

Total Existing Development and Test Lab Server Cost Avoidance

Year 1

Year 2

$0 $289,822

Year 3

Year 4

Year 5

Copyright © 2001-2008 Alinean, Inc. Page 33

ROI Analyst™ Current (As Is)

$844,860

$844,860

$844,860

$844,860

$844,860

With Microsoft Integrated Virtualization (To Be)

$289,822

$289,822

$289,822

$289,822

$289,822

Total Net Savings (As Is - To Be)

$555,038

$555,038

$555,038

$555,038

$555,038

Annual growth in costs and savings (if any - starting in year 2)

0.0% n1

Notes: 1. Annual growth in costs and savings expected (if any).

Realized Benefits (Probable)

Year 1

Year 2

Year 3

Solution A Current (As Is)

$844,860

$844,860

$844,860

Solution B With Microsoft Integrated Virtualization (To Be)

$289,822

$289,822

$289,822

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$555,038

$555,038

$555,038

Q1

$0.00

$138,759.50

$138,759.50

Q2

$138,759.50

$138,759.50

$138,759.50

Q3

$138,759.50

$138,759.50

$138,759.50

Q4

$138,759.50

$138,759.50

$138,759.50

$416,278

$555,038

$555,038

Realized Total Benefits

Production Server Power and Cooling Savings With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and existing servers avoided, helping to reduce the cost for power and cooling, and reduce carbon emissions, helping to save carbon credit costs, and strategically drive a "greener IT". Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$1,321,408 Operating Expense (Allocated) Direct Benefits Reduce Facilities and Overhead Costs IT Director

Average cost per kWatt hour

$0.092 n1

Operating hours per server per year

Current (As Is) Production Server Power and Cooling Costs

8,736 n2 Total Operating and Cooling Power per Server (watts)

Number of Servers

File / print servers

Total Operating Power per Year (kWatts)

Total Annual Cost

200

1,430

2,498,496.000

$229,362

E-mail servers

50

2,600

1,135,680.000

$104,255

Application servers

40

1,430

499,699.200

$45,872

Database servers

24

2,600

545,126.400

$50,043

Web servers

50

1,430

624,624.000

$57,340

Failover servers

50

1,430

624,624.000

$57,340

414

678,600

5,928,249.600

$544,212

Total

Proposed with Microsoft Virtualization (To Be) Production Server Power and Cooling Annual Costs

Total Operating and Cooling Power per Server (watts)

Number of Servers

Consolidated Production Servers

Total Operating Power per Year (kWatts)

Total Annual Cost

71

2,028

1,257,879.168

$115,473

Specify name

0

2,028

0.000

$0

Specify name

0

2,028

0.000

$0

Specify name

0

2,028

0.000

$0

Specify name

0

2,028

0.000

$0

Specify name

0

2,028

0.000

$0

71

143,988

1,257,879.168

$115,473

Total kWatts per year

Year 1

Year 2

Year 3

Year 4

Year 5

Current (As Is)

5,928,249.600

6,686,607.327

7,541,976.226

8,506,766.228

9,594,974.777

With Microsoft Integrated Virtualization (To Be)

1,257,879.168

1,418,790.474

1,600,285.990

1,804,998.903

2,035,899.246

Total Net Savings (As Is - To Be)

4,670,370.432

5,267,816.853

5,941,690.236

6,701,767.325

7,559,075.531

Carbon Emission Reduction (year 1) With Microsoft Integrated Virtualization (To Be) Production Server Power and Cooling Savings

Total Operating and Cooling Power Savings (kWatts)

Average CO2 Emission per kWh of Electrical Power (in lbs)

4,670,370.432 Year 1

Total Operating Hours

1.341 Year 2

8,736 Year 3

Total Carbon Emission Reduction (in lbs) 54,713,277,522 n3 Year 4

Year 5

Copyright © 2001-2008 Alinean, Inc. Page 34

ROI Analyst™ Current (As Is)

$544,212

$613,829

$692,352

$780,920

$880,817

With Microsoft Integrated Virtualization (To Be)

$115,473

$130,245

$146,906

$165,699

$186,896

Total Net Savings (As Is - To Be)

$428,739

$483,584

$545,446

$615,221

$693,921

Annual growth in costs and savings (if any - starting in year 2)

12.8% n4

Notes: 1. Default is the average cost of electricity per watt hour in the U.S. according to Energy Information Administration, "Average Retail Price of Electricity to Ultimate Customer by End-Use Sector, by State." http://www.eia.doe.gov/cneaf/electricity/epm/table5_6_b.html 2. Assumes 24 hours per day, 7 days per week, 52 weeks per year of server operating power on and operating hours. 3. U.S. national average CO2 emission is 1.341 lbs per kWh of electrical power. This number can vary depending on region of the country and source of fuel for the power generating station (power plant), with Eastern coal being higher in CO2, followed by Western lignite coal, petroleum and natural gas, hydro, nuclear, thermo and wind, among others. Energy costs will vary by region and state, as well as from residential to business, based on power consumption levels. IT equipment energy costs need to reflect cooling costs that can be as much as twice those of the actual IT equipment, depending on the PUE (power usage effectiveness) of the data center. A typical gallon of gasoline (octane level will vary) will on average generate about 20 lbs of CO2. Approximately (this number is constantly changing) 78% of CO2 emissions in the U.S. are tied to electrical power generation. Carbon offset credits from organizations such as Terrapass can cost in the range of 250 USD per lb up to 10 metric tons of CO2 and 200 USD per pound for larger quantities up to 35 metric tons of CO2. One metric ton is equivalent to 2204.62262 lbs. 4. Annual growth in costs and savings expected (if any). Includes specified growth in power costs, as well as expected increase in the number of servers.

Realized Benefits (Probable)

Year 1

Year 2

Year 3

Solution A Current (As Is)

$544,212

$613,829

$692,352

Solution B With Microsoft Integrated Virtualization (To Be)

$115,473

$130,245

$146,906

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$428,739

$483,584

$545,446

Q1

$0.00

$107,184.75

$120,896.00

Q2

$107,184.75

$120,896.00

$136,361.50

Q3

$107,184.75

$120,896.00

$136,361.50

Q4

$107,184.75

$120,896.00

$136,361.50

$321,554

$469,873

$529,980

Realized Total Benefits

Development and Test Lab Support Savings With Microsoft Integrated Virtualization, QA labs can run more test cases more efficiently, and help in reproducing bugs more effectively by providing quick provisioning of specific test and client environments, helping the team produce software that is more reliable, and help resolving issues more quickly when they are identified. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$1,213,217 Operating Expense (Allocated) Direct Benefits Reduce IT Operations and Administration Costs VP Application Development

Development and Test Lab Support Savings - Internal Development Projects

Benefits with Microsoft (To Be)

Current (As Is)

Proposed with Microsoft Virtualization (To Be)

Major software releases Number of releases per year Number of software error / bug related trouble tickets generated per release on average

6

6

50

50

Average call handling person hours per trouble ticket

0.5

90.0%

Total application bug handling service desk person hours per year

150

120

0.1 30

Average burdened labor cost per hour for service desk support

$35.49

Total annual bug service desk cost

$5,324

$4,259

10.0

90.0%

1.0

3,000

2,700

300

$147,015

$16,335

Average developer / QA person hours per trouble ticket Total application bug handling developer / QA person hours per year Average burdened labor cost per hour for developer / QA Total annual developer / QA bug handling cost

$35.49

$54.45 $163,350

$1,065

$54.45

Software upgrade releases Number of releases per year

10

Number of software error / bug related trouble tickets generated per release on average

50

Average call handling person hours per trouble ticket

0.5

90.0%

250

200

Total application bug handling service desk person hours per year

10 50 0.1 50

Average burdened labor cost per hour for service desk support

$35.49

Total annual bug service desk cost

$8,873

$7,098

10.0

90.0%

1.0

5,000

4,500

500

Average developer / QA person hours per trouble ticket Total application bug handling developer / QA person hours per year

$35.49 $1,775

Copyright © 2001-2008 Alinean, Inc. Page 35

ROI Analyst™ Average burdened labor cost per hour for developer / QA

$54.45

Total annual developer / QA bug handling cost Total

Development and Test Lab Software Bug Reproduction Savings - Revenue Generating Projects (ISV)

$54.45

$272,250

$245,025

$27,225

$449,797

$403,397

$46,400 Proposed with Microsoft Virtualization (To Be)

Benefits with Microsoft (To Be)

Current (As Is)

Major software releases Number of releases per year

0

0

Number of software error / bug related trouble tickets generated per release on average

50

50

Average call handling person hours per trouble ticket

0.5

90.0%

0

0

Total application bug handling service desk person hours per year Average burdened labor cost per hour for service desk support

0.1 0

$35.49

Total annual bug service desk cost Average developer / QA person hours per trouble ticket Total application bug handling developer / QA person hours per year Average burdened labor cost per hour for developer / QA

$35.49

$0

$0

$0

10.0

90.0%

1.0

0

0

0

$54.45

Total annual developer / QA bug handling cost

$54.45

$0

$0

$0

Software upgrade releases Number of releases per year

0

0

Number of software error / bug related trouble tickets generated per release on average

50

50

Average call handling person hours per trouble ticket

0.5

90.0%

0

0

Total application bug handling service desk person hours per year Average burdened labor cost per hour for service desk support Average developer / QA person hours per trouble ticket Total application bug handling developer / QA person hours per year Average burdened labor cost per hour for developer / QA

Total Year 1

$0

$0

$0

10.0

90.0%

1.0

0

0

0

Year 2

$54.45

$0

$0

$0

$0

$0

$0

Year 3

Year 4

Year 5

$449,797

$494,777

$544,255

$598,681

$46,400

$51,040

$56,144

$61,758

$67,934

$403,397

$443,737

$488,111

$536,923

$590,615

With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

$35.49

$54.45

Total annual developer / QA bug handling cost

Development and Test Lab Support Savings

0

$35.49

Total annual bug service desk cost

Current (As Is)

0.1

$658,549

Average growth in costs and benefits (increase in releases, test cycles per build and provisioning requests)

Realized Benefits (Probable)

Year 1

Solution A Current (As Is)

10.0%

Year 2

Year 3

$449,797

$494,777

$544,255

$46,400

$51,040

$56,144

$403,397

$443,737

$488,111

Q1

$0.00

$100,849.25

$110,934.25

Q2

$100,849.25

$110,934.25

$122,027.75

Q3

$100,849.25

$110,934.25

$122,027.75

Q4

$100,849.25

$110,934.25

$122,027.75

$302,548

$433,652

$477,018

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

New Production Server Purchase Cost Avoidance With Microsoft Integrated Virtualization, new server workloads can be consolidated onto fewer physical servers (see Existing Production Server Cost Avoidance), typically eliminating the need to add as many new servers to support new application and services deployments. With this consolidation, new server asset purchases can be avoided or reduced, reducing the annual amortized purchase costs for these new servers and eliminating related server annual support and maintenance contract expenses. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

Current (As Is) New Production Server Costs

$910,065 Net Fixed Assets (NFA - Cumulative) Direct Benefits Reduce IT Capital Costs IT Director

Year 1

Year 2

Year 3

Year 4

Year 5

File / print servers Number of new server additions

20

22

24

27

29

Copyright © 2001-2008 Alinean, Inc. Page 36

ROI Analyst™ Number of new CPU additions Average annual cost per server Total cumulative additional costs per year

40

44

48

54

58

$4,694

$4,694

$4,694

$4,694

$4,694

$93,880

$197,148

$309,804

$436,542

$572,668

E-mail servers Number of new server additions Number of new CPU additions Average annual cost per server

5

6

6

7

7

20

24

24

28

28

$9,387

$9,387

$9,387

$9,387

$9,387

$46,935

$103,257

$159,579

$225,288

$290,997

Number of new server additions

4

4

5

5

6

Number of new CPU additions

8

8

10

10

12

Total cumulative additional costs per year Application servers

Average annual cost per server Total cumulative additional costs per year

$4,694

$4,694

$4,694

$4,694

$4,694

$18,776

$37,552

$61,022

$84,492

$112,656

Database servers Number of new server additions

2

3

3

3

4

Number of new CPU additions

8

12

12

12

16

Average annual cost per server Total cumulative additional costs per year

$9,387

$9,387

$9,387

$9,387

$9,387

$18,774

$46,935

$75,096

$103,257

$140,805

Web servers Number of new server additions Number of new CPU additions Average annual cost per server Total cumulative additional costs per year

5

6

6

7

7

10

12

12

14

14

$4,694

$4,694

$4,694

$4,694

$4,694

$23,470

$51,634

$79,798

$112,656

$145,514

Failover servers Number of new server additions Number of new CPU additions Average annual cost per server

5

6

6

7

7

10

12

12

14

14

$4,694

$4,694

$4,694

$4,694

$4,694

$23,470

$51,634

$79,798

$112,656

$145,514

New servers added

41

47

50

56

60

Cumulative new server count

41

88

138

194

254

$225,305

$488,160

$765,097

$1,074,891

$1,408,154

Total cumulative additional costs per year

Cumulative new server annual cost

With Microsoft Integrated Virtualization, server consolidation ratio expected: Proposed (To Be) New Production Server Costs

5.8 to 1

Year 1

Year 2

Number of new server additions post consolidation

Year 3

Year 4

Year 5

8

9

9

10

32

36

36

40

44

Average annual weighted average cost per server

$11,147

$11,147

$11,147

$11,147

$11,147

Total cumulative additional costs per year

$89,176

$189,499

$289,822

$401,292

$523,909

Number of new CPU additions

New Production Server Purchase Cost Avoidance Current (As Is)

Year 1

Realized Benefits (Probable)

Year 3

Year 4

Year 5

$225,305

$488,160

$765,097

$1,074,891

$1,408,154

$89,176

$189,499

$289,822

$401,292

$523,909

$136,129

$298,661

$475,275

$673,599

$884,245

With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Year 2

11

Year 1

Solution A Current (As Is)

Year 2

Year 3

$225,305

$488,160

$765,097

$89,176

$189,499

$289,822

$136,129

$298,661

$475,275

Q1

$0.00

$298,661.00

$475,275.00

Q2

$136,129.00

$0.00

$0.00

Q3

$0.00

$0.00

$0.00

Q4

$0.00

$0.00

$0.00

$136,129

$298,661

$475,275

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Desktop Virtualization Branch Office Server Cost Avoidance With Microsoft Integrated Virtualization, some branch office server infrastructure may be consolidated or retired, replaced with centralized virtualized servers to support the branch office applications. Cumulative Benefits (3 - Year):

$901,692

Copyright © 2001-2008 Alinean, Inc. Page 37

ROI Analyst™ Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

Net Fixed Assets (NFA - Allocated) Direct Benefits Reduce IT Capital Costs PC Manager

Desktop Virtualization Branch Office Server Cost Avoidance Number of branch servers

80

Average annual cost per server per year

Current (As Is)

30.0%

56

$13,662

Total branch office server cost per year Desktop Virtualization Branch Office Server Cost Avoidance

Proposed with Microsoft Virtualization (To Be)

Benefits with Microsoft (To Be)

Current (As Is)

$1,092,960

Year 1

Year 2

Year 3

$13,662 n1 $327,888

Year 4

$765,072

Year 5

$1,092,960

$1,092,960

$1,092,960

$1,092,960

$1,092,960

With Microsoft Integrated Virtualization (To Be)

$765,072

$765,072

$765,072

$765,072

$765,072

Total Net Savings (As Is - To Be)

$327,888

$327,888

$327,888

$327,888

$327,888

Annual growth in costs and benefits

0.0%

Notes: 1. Includes amortized capital cost of the infrastructure + annual support and administration contract, backup management, administration, power, cooling and facilities costs.

Realized Benefits (Probable)

Year 1

Solution A Current (As Is)

Year 2

Year 3

$1,092,960

$1,092,960

$1,092,960

Solution B With Microsoft Integrated Virtualization (To Be)

$765,072

$765,072

$765,072

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$327,888

$327,888

$327,888

Q1

$0.00

$81,972.00

$81,972.00

Q2

$81,972.00

$81,972.00

$81,972.00

Q3

$81,972.00

$81,972.00

$81,972.00

Q4

$81,972.00

$81,972.00

$81,972.00

$245,916

$327,888

$327,888

Realized Total Benefits

Production Server Networked Storage Savings With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and new server purchases avoided, helping to reduce the cost for supporting or implementing a networked storage environment. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

Current (As Is) Production Server Network Costs

$644,670 Net Fixed Assets (NFA - Allocated) Direct Benefits Reduce IT Capital Costs IT Director

Year 1

Year 2

Year 3

Year 4

Year 5

Cumulative number of servers

455

502

552

608

668

Percentage of servers on SAN

100.0%

100.0%

100.0%

100.0%

100.0%

455

502

552

608

668

2

2

2

2

2

910

1,004

1,104

1,216

1,336

Number of servers on SAN Number of HBAs per server Total number of HBAs Annual cost per HBA Total annual cost for HBAs

$190.00

$190.00

$190.00

$190.00

$190.00

$172,900.00

$190,760.00

$209,760.00

$231,040.00

$253,840.00

Number of SAN switch ports per HBA Number of SAN switch ports consumed in total

2

2

2

2

2

1,820

2,008

2,208

2,432

2,672

Ports available per switch

16

16

16

16

16

Total number of switches

114

126

138

152

167

Annual cost per switch

$2,280.00

$2,280.00

$2,280.00

$2,280.00

$2,280.00

Total annual cost

$259,920

$287,280

$314,640

$346,560

$380,760

Proposed with Microsoft Virtualization (To Be) Production Server Network Costs

Year 1

Year 2

Year 3

Year 4

Year 5

Cumulative number of servers

79

88

97

107

118

Percentage of servers on SAN

100.0%

100.0%

100.0%

100.0%

100.0%

Number of servers on SAN

79

88

97

107

118

Number of HBAs per server

2

2

2

2

2

Copyright © 2001-2008 Alinean, Inc. Page 38

ROI Analyst™ Total number of HBAs

158

176

194

214

236

$190.00

$190.00

$190.00

$190.00

$190.00

$30,020.00

$33,440.00

$36,860.00

$40,660.00

$44,840.00

2

2

2

2

2

316

352

388

428

472

Ports available per switch

16

16

16

16

16

Total number of switches

20

22

25

27

30

$2,280.00

$2,280.00

$2,280.00

$2,280.00

$2,280.00

$45,600

$50,160

$57,000

$61,560

$68,400

Annual cost per HBA Total annual cost for HBAs Number of SAN switch ports per HBA Number of SAN switch ports consumed in total

Annual cost per switch Total annual cost Production Server Networked Storage Savings Current (As Is)

Year 1

Realized Benefits (Probable)

Year 3

Year 4

Year 5

$287,280

$314,640

$346,560

$45,600

$50,160

$57,000

$61,560

$68,400

$214,320

$237,120

$257,640

$285,000

$312,360

With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Year 2

$259,920

Year 1

Solution A Current (As Is)

Year 2

$380,760

Year 3

$259,920

$287,280

$314,640

$45,600

$50,160

$57,000

$214,320

$237,120

$257,640

Q1

$0.00

$53,580.00

$59,280.00

Q2

$53,580.00

$59,280.00

$64,410.00

Q3

$53,580.00

$59,280.00

$64,410.00

Q4

$53,580.00

$59,280.00

$64,410.00

$160,740

$231,420

$252,510

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Desktop Virtualization Client Software License Cost Avoidance With Microsoft Integrated Virtualization, application distribution can be better monitored and managed, eliminating the common issue of overbuying software licenses, or having only temporarily used licenses not re-distributed to those users who need access. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$492,017 Net Fixed Assets (NFA - Allocated) Direct Benefits Reduce IT Capital Costs PC Manager

Desktop Virtualization Client Software License Cost Avoidance Current annual software spending Total annual overspending

Current (As Is)

Year 1

Year 2

$2,400,000

10.00%

70.0%

3.00%

$240,000

$168,000

$72,000

Year 3

Year 4

Year 5

$240,000

$256,800

$274,776

$294,010

$72,000

$77,040

$82,433

$88,203

$94,377

$168,000

$179,760

$192,343

$205,807

$220,214

With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Proposed with Microsoft Virtualization (To Be)

$2,400,000

Percentage estimate of overspending on unused / not properly allocated licenses

Desktop Virtualization Client Software License Cost Avoidance

Benefits with Microsoft (To Be)

Current (As Is)

$314,591

Annual growth in costs and benefits

7.0% n1

Notes: 1. Annual growth in licensing spending / overspend, from Current Practices.

Realized Benefits (Probable) Solution A Current (As Is)

Year 1

Year 2

Year 3

$240,000

$256,800

$274,776

$72,000

$77,040

$82,433

$168,000

$179,760

$192,343

Q1

$0.00

$42,000.00

$44,940.00

Q2

$42,000.00

$44,940.00

$48,085.75

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Copyright © 2001-2008 Alinean, Inc. Page 39

ROI Analyst™ Q3

$42,000.00

$44,940.00

$48,085.75

Q4

$42,000.00

$44,940.00

$48,085.75

$126,000

$176,820

$189,197

Realized Total Benefits

Development and Test Lab Server Power and Cooling Savings With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and existing servers avoided, helping to reduce the cost for power and cooling, and reduce carbon emissions, helping to save carbon credit costs, and strategically drive a "greener IT". Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$467,330 Operating Expense (Allocated) Direct Benefits Reduce Facilities and Overhead Costs VP Application Development

Average cost per Watt hour

$0.0918 n1

Operating hours per server per year

Current (As Is) Development and Test Lab Server Power and Cooling Costs

8,736 n2 Total Operating and Cooling Power per server (watts)

Number of Servers

Total Operating Power per Year (kWatts)

Total Annual Cost

Development servers

20

1,430

249,849.600

$22,936

Unit test servers

40

1,430

499,699.200

$45,872

Integration test servers

40

2,600

908,544.000

$83,404

Database test servers

20

2,600

454,272.000

$41,702

Other development, test and QA servers

0

1,430

0.000

$0

Failover servers

0

1,430

0.000

$0

120

241,800

2,112,364.800

$193,914

Total Proposed with Microsoft Virtualization (To Be) Development and Test Lab Server Power and Cooling Annual Costs

Total Operating and Cooling Power per Server (watts)

Number of Servers

Consolidated Development / Test Servers

Total Operating Power per Year (kWatts)

Total Annual Cost

26

2,028

460,631.808

$42,286

Specify name

0

2,028

0.000

$0

Specify name

0

2,028

0.000

$0

Specify name

0

2,028

0.000

$0

Specify name

0

2,028

0.000

$0

Specify name

0

2,028

0.000

$0

26

52,728

460,631.808

$42,286

Total kWatts Consumed per Year

Year 1

Current (As Is) With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Carbon Emission Reduction (year 1)

Year 2

Development and Test Lab Server Power and Cooling Savings Current (As Is) With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be) Annual growth in costs and savings (if any - starting in year 2)

Year 4

Year 5

2,382,584.220

2,687,370.839

3,031,146.587

460,631.808

519,557.075

586,020.222

660,985.514

745,540.569

1,651,732.992

1,863,027.145

2,101,350.617

2,370,161.073

2,673,358.490

Total Operating and Cooling Power Savings (kWatts)

With Microsoft Integrated Virtualization (To Be)

Year 3

2,112,364.800

Average CO2 emission per kWh of Electrical Power (in lbs)

1,651,732.992

Year 1

Total Operating Hours

1.341

Year 2

8,736

Year 3

3,418,899.059

Total Carbon Emission Reduction (in lbs) 19,350,012,360 n3

Year 4

Year 5

$193,914

$218,720

$246,699

$278,257

$42,286

$47,695

$53,796

$60,678

$313,852 $68,440

$151,628

$171,025

$192,903

$217,579

$245,412 12.8% n4

Notes: 1. From Current Practices 2. From Current Practices 3. U.S. national average CO2 emission is 1.341 lbs per kWh of electrical power. This number can vary depending on region of the country and source of fuel for the power generating station (power plant), with Eastern coal being higher in CO2, followed by Western lignite coal, petroleum and natural gas, hydro, nuclear, thermo and wind, among others. Energy costs will vary by region and state, as well as from residential to business, based on power consumption levels. IT equipment energy costs need to reflect cooling costs that can be as much as twice those of the actual IT equipment, depending on the PUE (power usage effectiveness) of the data center. A typical gallon of gasoline (octane level will vary) will on average generate about 20 lbs of CO2. Approximately (this number is constantly changing) 78% of CO2 emissions in the U.S. are tied to electrical power generation. Carbon offset credits from organizations such as Terrapass can cost in the range of 250 USD per lb up to 10 metric tons of CO2 and 200 USD per pound for larger quantities up to 35 metric tons of CO2. One metric ton is equivalent to 2204.62262 lbs. 4. Annual growth in costs and savings expected (if any). Includes specified growth in power costs, as well as expected increase in the number of servers.

Copyright © 2001-2008 Alinean, Inc. Page 40

ROI Analyst™ Realized Benefits (Probable)

Year 1

Year 2

Solution A Current (As Is)

Year 3

$193,914

$218,720

$246,699

$42,286

$47,695

$53,796

$151,628

$171,025

$192,903

Q1

$0.00

$37,907.00

$42,756.25

Q2

$37,907.00

$42,756.25

$48,225.75

Q3

$37,907.00

$42,756.25

$48,225.75

Q4

$37,907.00

$42,756.25

$48,225.75

$113,721

$166,176

$187,434

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Production Server Space Savings With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and purchasing of new server purchases avoided, helping to reduce current data center space, and avoid potentially having to expand and add additional data center space. Includes savings in amortized build out costs and annual mortgage / rent costs per square foot / meter saved. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$446,902 Operating Expense (Allocated) Direct Benefits Reduce Facilities and Overhead Costs IT Director

Average usable U space per typical server rack

24

Average square feet per rack

6.0

Average annual cost (amortized build out and rent / mortgage) per square feet of data center space

Current (As Is) Production Server Data Center Space Annual Costs

Total "U" Rack Space Consumed per Server

Number of Servers

File / print servers

$1,250.00 n1

Total Square Feet Consumed

Total Annual Cost

200

1.0

50

$62,500

E-mail servers

50

2.0

25

$31,250

Application servers

40

1.0

10

$12,500

Database servers

24

2.0

12

$15,000

Web servers

50

1.0

13

$16,250

Failover servers

50

1.0

13

$16,250

414

488

123

$153,750

Total

Proposed with Microsoft Virtualization (To Be) Data Center Space Annual Costs

Total "U" Rack Space Consumed per Server

Number of Servers

Consolidated Production Servers

Total Square Feet Consumed

Total Annual Cost

71

0.4

7

$8,750

Specify name

0

0.4

0

$0

Specify name

0

0.4

0

$0

Specify name

0

0.4

0

$0

Specify name

0

0.4

0

$0

Specify name

0

0.4

0

$0

71

28

7

$8,750

Total Production Server Space Savings Current (As Is)

Year 1

Year 3

Year 4

Year 5

$173,418

$195,602

$220,624

$8,750

$9,869

$11,131

$12,555

$14,161

$145,000

$163,549

$184,471

$208,069

$234,686

With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Year 2

$153,750

$248,847

Annual growth in costs and savings (if any - starting in year 2)

12.8% n2

Notes: 1. Specifies the annual cost per square foot/meter of data center space, fully burdened for rent and amortized build out of the data center infrastructure such as raised flooring, power distribution, conduit and cabling access and cooling. 2. Annual growth in costs and savings expected (if any). Includes specified growth in power costs, as well as expected increase in the number of servers.

Realized Benefits (Probable) Solution A Current (As Is) Solution B With Microsoft Integrated Virtualization (To Be)

Year 1

Year 2

Year 3

$153,750

$173,418

$195,602

$8,750

$9,869

$11,131

Copyright © 2001-2008 Alinean, Inc. Page 41

ROI Analyst™ Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$145,000

$163,549

$184,471

Q1

$0.00

$36,250.00

$40,887.25

Q2

$36,250.00

$40,887.25

$46,117.75

Q3

$36,250.00

$40,887.25

$46,117.75

Q4

$36,250.00

$40,887.25

$46,117.75

$108,750

$158,912

$179,240

Realized Total Benefits

Desktop Virtualization Service Desk User Savings With Microsoft Integrated Virtualization, PC configuration management and support is centralized and simplified, helping organizations proactively avoid issues and reducing the time it takes to resolve incidents when they do occur. This can help reduce user downtime related to incident problem resolution. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$357,627 Operating Expense (Allocated) Indirect Benefits Improve User Productivity PC Manager

Desktop Virtualization Service Desk User Savings

Benefits with Microsoft (To Be)

Current (As Is)

Number of client related service desk calls per year

20,520

50.0%

0.50

24.0%

0.38

10,260.0

6,361.2

3,898.8

$229,639

$140,747

$114,819

$70,374

Average duration for problem resolution (hours) per incident Total incident resolution related downtime person hours per year Average burdened hourly salary for users

10,260

$36.10

Total end user operations annual cost

$36.10

$370,386

Realized costs

50.0%

Realized costs

$185,193

Desktop Virtualization Service Desk User Savings

Proposed with Microsoft Virtualization (To Be)

Year 1

Current (As Is) With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Year 2

50.0%

Year 3

Year 4

Year 5

$185,193

$211,120

$240,677

$274,372

$312,784

$70,374

$80,226

$91,458

$104,262

$118,859

$114,819

$130,894

$149,219

$170,110

$193,925

Annual growth in costs and savings (if any - starting in year 2)

14.0% n1

Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.

Realized Benefits (Probable) Solution A Current (As Is)

Year 1

Year 2

Year 3

$185,193

$211,120

$240,677

$70,374

$80,226

$91,458

$114,819

$130,894

$149,219

Q1

$0.00

$28,704.75

$32,723.50

Q2

$28,704.75

$32,723.50

$37,304.75

Q3

$28,704.75

$32,723.50

$37,304.75

Q4

$28,704.75

$32,723.50

$37,304.75

$86,114

$126,875

$144,638

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Desktop Virtualization Client Configuration Management Cost Avoidance With Microsoft Integrated Virtualization, the need for infrastructure to support electronic software distribution is centralized, helping to reduce secondary server investments. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$301,364 Net Fixed Assets (NFA - Allocated) Direct Benefits Reduce IT Capital Costs PC Manager

Copyright © 2001-2008 Alinean, Inc. Page 42

ROI Analyst™

Desktop Virtualization Client Configuration Management Cost Avoidance

Benefits with Microsoft (To Be)

Current (As Is)

Annual spending on Electronic Software Distribution (ESD) infrastructure / servers

$91,440

Proposed with Microsoft Virtualization (To Be)

70.0%

ESD server and infrastructure savings

$27,432

$64,008

Average annual person hours spent on managing the ESD servers and infrastructure

1,248.0

Average hourly burdened salary for server administration

$47.72

Total ESD management annual labor cost Total costs Desktop Virtualization Client Configuration Management Cost Avoidance

Year 1

Current (As Is)

374.4 $47.72

$59,555

$41,689

$17,866

$150,995

$105,697

$45,298

Year 3

Year 4

Year 5

$150,995

$157,035

$163,316

$169,849

$45,298

$47,110

$48,994

$50,954

$52,992

$105,697

$109,925

$114,322

$118,895

$123,651

With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Year 2

70.0%

$176,643

Annual growth in costs and benefits

4.0% n1

Notes: 1. Annual growth in annual salaries from Current Practices.

Realized Benefits (Probable)

Year 1

Solution A Current (As Is)

Year 2

Year 3

$150,995

$157,035

$163,316

$45,298

$47,110

$48,994

$105,697

$109,925

$114,322

Q1

$0.00

$26,424.25

$27,481.25

Q2

$26,424.25

$27,481.25

$28,580.50

Q3

$26,424.25

$27,481.25

$28,580.50

Q4

$26,424.25

$27,481.25

$28,580.50

$79,273

$108,868

$113,223

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Development and Test Lab Software Bug Reproduction Savings With Microsoft Integrated Virtualization, QA labs can more easily reconfigure the environment to help teams reproduce critical issues, helping to reduce workloads for bug reproduction. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$258,352 Operating Expense (Allocated) Direct Benefits Reduce IT Operations and Administration Costs VP Application Development

Development and Test Lab Software Bug Reproduction Savings - Internal Development Projects

Benefits with Microsoft (To Be)

Current (As Is)

Proposed with Microsoft Virtualization (To Be)

Major software releases Number of releases per year Average number of bugs that need to be reproduced per release

6

6

50

50

Average person hours spent per release to reproduce bugs

3.0

90.0%

Total bug reproduction person hours per year

900

810

Average burdened labor cost per hour for bug reproduction Total annual bug reproduction cost

$39.77 $35,793

0.3 90 $39.77

$32,214

$3,579

Software upgrade releases Number of releases per year

10

Average number of bugs that need to be reproduced per release

50

Average person hours spent per release to reproduce bugs

3.0

90.0%

1,500

1,350

Total bug reproduction person hours per year Average burdened labor cost per hour for bug reproduction Total annual bug reproduction cost Total Development and Test Lab Software Bug Reproduction Savings - Revenue Generatiing Projects (ISV)

10 50

$39.77

0.3 150 $39.77

$59,655

$53,689

$5,966

$95,448

$85,903

$9,545

Current (As Is)

Benefits with

Proposed with

Copyright © 2001-2008 Alinean, Inc. Page 43

ROI Analyst™ Microsoft (To Be)

Microsoft Virtualization (To Be)

Major software releases Number of releases per year

0

0

Average number of bugs that need to be reproduced per release

50

50

Average person hours spent per release to reproduce bugs

3.0

90.0%

0

0

Total bug reproduction person hours per year Average burdened labor cost per hour for bug reproduction

0.3 0

$39.77

Total annual bug reproduction cost

$39.77

$0

$0

$0

Software upgrade releases Number of releases per year

0

0

Average number of bugs that need to be reproduced per release

50

50

Average person hours spent per release to reproduce bugs

3.0

90.0%

0

0

Total bug reproduction person hours per year Average burdened labor cost per hour for bug reproduction

0

$39.77

Total annual bug reproduction cost Total Development and Test Lab Software Bug Reproduction Savings

0.3

Year 1

Current (As Is) With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Year 2

$39.77

$0

$0

$0

$0

$0

$0

Year 3

Year 4

Year 5

$95,448

$104,993

$115,492

$127,041

$9,545

$10,500

$11,550

$12,705

$139,745 $13,976

$85,903

$94,493

$103,942

$114,336

$125,769

Average growth in costs and benefits (increase in releases, test cycles per build and provisioning requests)

Realized Benefits (Probable)

Year 1

10.0%

Year 2

Solution A Current (As Is)

Year 3

$95,448

$104,993

$115,492

$9,545

$10,500

$11,550

$85,903

$94,493

$103,942

Q1

$0.00

$21,475.75

$23,623.25

Q2

$21,475.75

$23,623.25

$25,985.50

Q3

$21,475.75

$23,623.25

$25,985.50

Q4

$21,475.75

$23,623.25

$25,985.50

$64,427

$92,346

$101,580

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Desktop Virtualization End User Operations Savings With Microsoft Integrated Virtualization, PC configuration management and support is centralized and simplified, helping organizations avoid users having to help manage their client systems (end user operations costs). Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$256,367 Operating Expense (Allocated) Indirect Benefits Improve User Productivity PC Manager

Desktop Virtualization End User Operations Savings

Benefits with Microsoft (To Be)

Current (As Is)

Total number of client systems

6,000

Average person hours per year spent by users on end user operations tasks Total end user operations person hours per year

6,000

4.00

95.0%

0.20

24,000.0

22,800.0

1,200.0

$823,080

$43,320

$82,308

$4,332

Average burdened hourly salary for users

$36.10

Total end user operations annual cost

$866,400

Realized costs

10.0%

Realized costs

$86,640

Desktop Virtualization End User Operations Savings

Proposed with Microsoft Virtualization (To Be)

Year 1

Current (As Is) With Microsoft Integrated Virtualization (To Be) Total net savings (As Is - To Be) Annual growth in costs and savings (if any - starting in year 2)

Year 2

Year 3

$36.10 10.0%

Year 4

Year 5

$86,640

$98,770

$112,598

$128,362

$4,332

$4,938

$5,629

$6,417

$146,333 $7,315

$82,308

$93,832

$106,969

$121,945

$139,018 14.0% n1

Notes:

Copyright © 2001-2008 Alinean, Inc. Page 44

ROI Analyst™ 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.

Realized Benefits (Probable)

Year 1

Year 2

Solution A Current (As Is)

Year 3

$86,640

$98,770

$112,598

$4,332

$4,938

$5,629

$82,308

$93,832

$106,969

Q1

$0.00

$20,577.00

$23,458.00

Q2

$20,577.00

$23,458.00

$26,742.25

Q3

$20,577.00

$23,458.00

$26,742.25

Q4

$20,577.00

$23,458.00

$26,742.25

$61,731

$90,951

$103,685

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Production Server Networking Savings With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and new server purchases avoided, helping to reduce the cost for networking. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

Current (As Is) Production Server Network Costs

$191,520 Net Fixed Assets (NFA - Allocated) Direct Benefits Reduce IT Capital Costs IT Director

Year 1

Cumulative number of servers

Year 2

Year 3

Year 4

Year 5

455

502

552

608

2

2

2

2

2

910

1,004

1,104

1,216

1,336

Ports available per switch

16

16

16

16

16

Total number of switches

0

63

69

76

84

$2,280

$2,280

$2,280

$2,280

$2,280

$0

$143,640

$157,320

$173,280

$191,520

Number of network ports per server Number of network ports consumed in total

Annual cost per switch Total annual cost Proposed with Microsoft Virtualization (To Be) Production Server Network Costs

Year 1

Cumulative number of servers

Year 2

Year 3

Year 4

668

Year 5

79

88

97

107

2

2

2

2

2

158

176

194

214

236

Ports available per switch

16

16

16

16

16

Total number of switches

10

11

13

14

15

$2,280

$2,280

$2,280

$2,280

$2,280

$22,800

$25,080

$29,640

$31,920

$34,200

Number of network ports per server Number of network ports consumed in total

Annual cost per switch Total annual cost Production Server Networking Savings

Year 1

Current (As Is)

Realized Benefits (Probable) Solution A Current (As Is)

Year 3

Year 4

Year 5

$0

$143,640

$157,320

$173,280

$22,800

$25,080

$29,640

$31,920

$34,200

($22,800)

$118,560

$127,680

$141,360

$157,320

With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Year 2

118

Year 1

Year 2

$191,520

Year 3

$0

$143,640

$157,320

$22,800

$25,080

$29,640

($22,800)

$118,560

$127,680

Q1

$0.00

($5,700.00)

$29,640.00

Q2

($5,700.00)

$29,640.00

$31,920.00

Q3

($5,700.00)

$29,640.00

$31,920.00

Q4

($5,700.00)

$29,640.00

$31,920.00

($17,100)

$83,220

$125,400

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Copyright © 2001-2008 Alinean, Inc. Page 45

ROI Analyst™ Development and Test Lab Server Networked Storage Savings With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and new server purchases avoided, helping to reduce the cost for supporting or implementing a networked storage environment. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

Current (As Is) Development and Test Lab Server Network Costs

$173,850 Net Fixed Assets (NFA - Allocated) Direct Benefits Reduce IT Capital Costs VP Application Development

Year 1

Year 2

Year 3

Year 4

Year 5

Cumulative number of servers

132

144

158

174

192

Percentage of servers on SAN

100.0%

100.0%

100.0%

100.0%

100.0%

132

144

158

174

192

2

2

2

2

2

264

288

316

348

384

Number of servers on SAN Number of HBAs per server Total number of HBAs Annual cost per HBA Total annual cost for HBAs Number of SAN switch ports per HBA

$190

$190.00

$190.00

$190.00

$190.00

$50,160

$54,720.00

$60,040.00

$66,120.00

$72,960.00

2

2

2

2

2

528

576

632

696

768

Ports available per switch

16

16

16

16

16

Total number of switches

33

36

40

44

48

$2,280.00

$2,280.00

$2,280.00

$2,280.00

$2,280.00

$75,240

$82,080

$91,200

$100,320

$109,440

Number of SAN switch ports consumed in total

Annual cost per switch Total annual cost Proposed with Microsoft Virtualization (To Be) Development and Test Lab Server Network Costs

Year 1

Year 2

Year 3

Year 4

Year 5

Cumulative number of servers

29

32

35

38

42

Percentage of servers on SAN

100.0%

100.0%

100.0%

100.0%

100.0%

Number of servers on SAN

29

32

35

38

42

Number of HBAs per server

2

2

2

2

2

58

64

70

76

84

Total number of HBAs Annual cost per HBA

$190.00

$190.00

$190.00

$190.00

$190.00

Total annual cost for HBAs

$11,020

$12,160.00

$13,300.00

$14,440.00

$15,960.00

Number of SAN switch ports per HBA

2

2

2

2

2

116

128

140

152

168

Ports available per switch

16

16

16

16

16

Total number of switches

8

8

9

10

11

$2,280.00

$2,280.00

$2,280.00

$2,280.00

$2,280.00

$18,240

$18,240

$20,520

$22,800

$25,080

Number of SAN switch ports consumed in total

Annual cost per switch Total annual cost Development and Test Lab Server Networked Storage Savings

Year 1

Year 2

Year 3

Year 4

Year 5

Current (As Is)

$75,240

$82,080

$91,200

$100,320

$109,440

With Microsoft Integrated Virtualization (To Be)

$18,240

$18,240

$20,520

$22,800

$25,080

Total Net Savings (As Is - To Be)

$57,000

$63,840

$70,680

$77,520

$84,360

Realized Benefits (Probable)

Year 1

Year 2

Year 3

Solution A Current (As Is)

$75,240

$82,080

$91,200

Solution B With Microsoft Integrated Virtualization (To Be)

$18,240

$18,240

$20,520

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$57,000

$63,840

$70,680

Q1

$0.00

$14,250.00

$15,960.00

Q2

$14,250.00

$15,960.00

$17,670.00

Q3

$14,250.00

$15,960.00

$17,670.00

Q4

$14,250.00

$15,960.00

$17,670.00

$42,750

$62,130

$68,970

Realized Total Benefits

Development and Test Lab Server Space Savings With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and purchasing of new server purchases avoided, helping to reduce current data center space, and avoid potentially having to expand and add additional data center space. Includes savings in amortized build out costs and annual mortgage / rent costs per square foot / meter saved.

Copyright © 2001-2008 Alinean, Inc. Page 46

ROI Analyst™ Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$163,350 Operating Expense (Allocated) Direct Benefits Reduce Facilities and Overhead Costs VP Application Development

Average usable U space per typical server rack

24 n1

Average square feet per rack

6.0 n2

Average annual cost (amortized build out and rent / mortgage) per square feet of data center space

Current (As Is) Development and Test Lab Server Data Center Space Annual Costs

Total "U" Rack Space Consumed per Server

Number of Servers

$1,250.00 n3

Total Square Feet Consumed

Total Annual Cost

Development servers

20

1.0

5.0

$6,250

Unit test servers

40

1.0

10.0

$12,500

Integration test servers

40

2.0

20.0

$25,000

Database test servers

20

2.0

10.0

$12,500

Other development, test and QA servers

0

1.0

0.0

$0

Failover servers

0

1.0

0.0

$0

120

180.0

45.0

$56,250

Total

Proposed with Microsoft Virtualization (To Be) Data Center Space Annual Costs

Total "U" Rack Space Consumed per Server

Number of Servers

Consolidated Development / Test Servers

Total Square Feet Consumed

Total Annual Cost

26

0.4

2.6

$3,250

Specify name

0

0.4

0.0

$0

Specify name

0

0.4

0.0

$0

Specify name

0

0.4

0.0

$0

Specify name

0

0.4

0.0

$0

Specify name

0

0.4

0.0

$0

26

10.4

2.6

$3,250

Total Development and Test Lab Server Space Savings

Year 1

Current (As Is) With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Year 2

Year 3

Year 4

Year 5

$56,250

$63,446

$71,562

$80,716

$3,250

$3,666

$4,135

$4,664

$91,041 $5,261

$53,000

$59,780

$67,427

$76,052

$85,780

Annual growth in costs and savings (if any - starting in year 2)

12.8% n4

Notes: 1. From Current Practices 2. From Current Practices 3. From Current Practices 4. Annual growth in costs and savings expected (if any). Includes specified growth in power costs, as well as expected increase in the number of servers.

Realized Benefits (Probable) Solution A Current (As Is)

Year 1

Year 2

Year 3

$56,250

$63,446

$71,562

$3,250

$3,666

$4,135

$53,000

$59,780

$67,427

Q1

$0.00

$13,250.00

$14,945.00

Q2

$13,250.00

$14,945.00

$16,856.75

Q3

$13,250.00

$14,945.00

$16,856.75

Q4

$13,250.00

$14,945.00

$16,856.75

$39,750

$58,085

$65,515

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Development and Test Lab Server Networking Savings With Microsoft Integrated Virtualization, existing servers can be retired or reallocated and new server purchases avoided, helping to reduce the cost for networking. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$87,210 Net Fixed Assets (NFA - Allocated) Direct Benefits Reduce IT Capital Costs VP Application Development

Copyright © 2001-2008 Alinean, Inc. Page 47

ROI Analyst™ Current (As Is) Development and Test Lab Server Network Costs

Year 1

Cumulative number of servers

Year 2

Year 3

Year 4

Year 5

132

144

158

174

2

2

2

2

2

264

288

316

348

384

Ports available per switch

16

16

16

16

16

Total number of switches

17

18

20

22

24

$2,280.00

$2,280

$2,280

$2,280

$2,280

$38,760

$41,040

$45,600

$50,160

$54,720

Number of network ports per server Number of network ports consumed in total

Annual cost per switch Total annual cost Proposed with Microsoft Virtualization (To Be) Development and Test Lab Server Network Costs

Year 1

Cumulative number of servers

Year 2

Year 3

Year 4

192

Year 5

29

32

35

38

2

2

2

2

2

Number of network ports consumed in total

58

64

70

76

84

Ports available per switch

16

16

16

16

16

Total number of switches

4

4

5

5

6

$2,280.00

$2,280

$2,280

$2,280

$2,280

$9,120

$9,120

$11,400

$11,400

$13,680

Number of network ports per server

Annual cost per switch Total annual cost Development and Test Lab Server Networking Savings

Year 1

Current (As Is) With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Realized Benefits (Probable)

Year 2

Year 3

Year 4

42

Year 5

$38,760

$41,040

$45,600

$50,160

$54,720

$9,120

$9,120

$11,400

$11,400

$13,680

$29,640

$31,920

$34,200

$38,760

$41,040

Year 1

Year 2

Solution A Current (As Is)

Year 3

$38,760

$41,040

$45,600

$9,120

$9,120

$11,400

$29,640

$31,920

$34,200

Q1

$0.00

$7,410.00

$7,980.00

Q2

$7,410.00

$7,980.00

$8,550.00

Q3

$7,410.00

$7,980.00

$8,550.00

Q4

$7,410.00

$7,980.00

$8,550.00

$22,230

$31,350

$33,630

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Production Server Provisioning Efficiency Savings With Microsoft Integrated Virtualization, physical changes can be performed in a virtual environment leading to dramatic 40-80% improvements in reducing the person hours it takes to perform new server installations including avoidance of procurement and vendor management costs, physical hardware setup and deployment, as well as better OS / application setup and delivery efficiency. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

Current (As Is) Production Server Provisioning Labor Costs

$85,283 Operating Expense (Allocated) Direct Benefits Reduce IT Operations and Administration Costs IT Director

Year 1

Number of new servers added per year

Year 2

Year 3

Year 4

Year 5

41

47

50

56

60

Person hours per server add task Server procurement and vendor management

1.5

1.5

1.5

1.5

1.5

Server hardware setup, configuration, and deployment

4.6

4.6

4.6

4.6

4.6

Operating system installation, configuration and deployment

4.0

4.0

4.0

4.0

4.0

Application installation, configuration and deployment

4.0

4.0

4.0

4.0

4.0

Additional on-site travel time

0.6

0.6

0.6

0.6

0.6

Total person hours per addition

14.7

14.7

14.7

14.7

14.7

Total for all server adds per year

602.7

690.9

735.0

823.2

882.0

Average hourly burdened labor costs for server provisioning Total annual server add labor costs Proposed with Microsoft Virtualization (To Be) Production Server Provisioning Labor Costs Number of new physical servers added per year

$45.89

$47.73

$49.64

$51.63

$53.70

$27,658

$32,977

$36,485

$42,502

$47,363

Year 1

Year 2 8

Year 3 9

Year 4 9

Year 5 10

11

Copyright © 2001-2008 Alinean, Inc. Page 48

ROI Analyst™ Person hours per server add task Server procurement and vendor management Server hardware setup, configuration, and deployment

1.5

1.5

1.5

1.5

1.5

4.6

4.6

4.6

4.6

4.6

Additional on-site travel time

0.6

0.6

0.6

0.6

0.6

Total Person Hours per Addition

6.7

6.7

6.7

6.7

6.7

30.8

30.8

30.8

30.8

30.8

Average hourly burdened labor costs for server provisioning

$45.89

$47.73

$49.64

$51.63

$53.70

Total annual server add labor costs

$1,413

$1,470

$1,529

$1,590

$1,654

Number of logical server additions per year

41

47

50

56

60

Operating system installation, configuration and deployment

1.2

1.2

1.2

1.2

1.2

Application installation, configuration and deployment

1.2

1.2

1.2

1.2

1.2

Total person hours per addition

2.4

2.4

2.4

2.4

2.4

Total for all server adds per year

19.2

21.6

21.6

24.0

26.4

$45.89

$47.73

$49.64

$51.63

$53.70

$881

$1,031

$1,072

$1,239

$1,418

Total person hours for all server adds per year

Average hourly burdened labor costs for server provisioning Total annual server add labor costs Production Server Provisioning Efficiency Savings

Year 1

Current (As Is) With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Year 2

Year 3

Year 4

Year 5

$27,658

$32,977

$36,485

$42,502

$881

$1,031

$1,072

$1,239

$47,363 $1,418

$26,777

$31,946

$35,413

$41,263

$45,945

Per Task Savings with Savings in per Physical Server Provisioning Tasks (used Microsoft Integrated above) Virtualization Server Server procurement and vendor management

0.0% n1

Server hardware setup, configuration, and deployment

0.0% n2

Operating system installation, configuration and deployment

70.0% n3

Application installation, configuration and deployment

70.0% n4

Additional on-site travel time

0.0%

Notes: 1. Physical servers still need to be purchased regardless of the environment 2. Physical servers still need to be installed and setup regardless of the environment. 3. With Microsoft Virtualization, operating system installation, configuration and deployment are greatly simplified, especially when System Center / Virtual Machine Manager is utilized. 4. With Microsoft Virtualization, application installation, configuration and deployment are greatly simplified, especially when System Center / Virtual Machine Manager is utilized.

Realized Benefits (Probable) Solution A Current (As Is)

Year 1

Year 2

Year 3

$27,658

$32,977

$36,485

$881

$1,031

$1,072

$26,777

$31,946

$35,413

Q1

$0.00

$6,694.25

$7,986.50

Q2

$6,694.25

$7,986.50

$8,853.25

Q3

$6,694.25

$7,986.50

$8,853.25

Q4

$6,694.25

$7,986.50

$8,853.25

$20,083

$30,654

$34,546

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Desktop Virtualization PC Recovery Labor Avoidance With Microsoft Integrated Virtualization, PC configuration management and support is centralized and PC restoration virtualized from hardware, making recovery possible to any network connected PC, helping to reduce the workload to get the OS, applications and data restored quickly should a PC become corrupted or damaged. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$57,230 Operating Expense (Allocated) Direct Benefits Reduce IT Operations and Administration Costs PC Manager

Copyright © 2001-2008 Alinean, Inc. Page 49

ROI Analyst™

Desktop Virtualization PC Recovery Labor Avoidance

Benefits with Microsoft (To Be)

Current (As Is)

Proposed with Microsoft Virtualization (To Be)

Number of clients affected by crashes per year

165

0.0%

Average IT person hours per affected client to perform recovery

4.0

70.0%

1.2

660.0

462.0

198.0

Total recovery related IT person hours per year Average burdened hourly salary for PC engineering staff

165

$39.77

Total disaster recovery labor annual cost

$39.77

$26,248

Desktop Virtualization PC Recovery Labor Avoidance

Year 1

Current (As Is) With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be)

Year 2

$18,374

Year 3

Year 4

$7,874 Year 5

$26,248

$29,923

$34,112

$38,888

$44,332

$7,874

$8,976

$10,233

$11,666

$13,299

$18,374

$20,947

$23,879

$27,222

$31,033

Annual growth in costs and savings (if any - starting in year 2)

14.0% n1

Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.

Realized Benefits (Probable)

Year 1

Solution A Current (As Is)

Year 2

Year 3

$26,248

$29,923

$34,112

$7,874

$8,976

$10,233

$18,374

$20,947

$23,879

Q1

$0.00

$4,593.50

$5,236.75

Q2

$4,593.50

$5,236.75

$5,969.75

Q3

$4,593.50

$5,236.75

$5,969.75

Q4

$4,593.50

$5,236.75

$5,969.75

$13,780

$20,304

$23,146

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Production Server Planned Downtime Avoidance With Microsoft Integrated Virtualization, planned downtime can be avoided by reducing the amount of physical maintenance required, and providing for flexible job reallocation, enabling any physical scheduled maintenance to be conducted without any user impact. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$49,592 Operating Expense (Allocated) Indirect Benefits Reduce Planned Downtime IT Director

Production Server Planned Downtime Avoidance

Benefits with Microsoft (To Be)

Current (As Is)

Proposed with Microsoft Virtualization (To Be)

Total number of servers

414

Annual planned downtime hours per year

4.00

40.0%

2.40

1,656.0

1,485.6

170.4

Total planned downtime hours per year Average number of internal users impacted per planned downtime hour

30.00

Percentage productivity impact

30.00

1.0%

Total person hours of lost productivity for internal users

1.0% n1

496.8

Average burdened hourly salary for users

445.7

51.1

$36.10

Total planned downtime annual cost Production Server Planned Downtime Avoidance

71

$36.10

$17,934 Year 1

Current (As Is) With Microsoft Integrated Virtualization (To Be) Total Net Savings (As Is - To Be) Annual growth in costs and savings (if any - starting in year 2)

Year 2

Year 3

$16,089 Year 4

$1,845 Year 5

$17,934

$20,230

$22,819

$25,740

$1,845

$2,081

$2,347

$2,647

$29,035 $2,986

$16,089

$18,149

$20,472

$23,093

$26,049 12.8% n2

Notes:

Copyright © 2001-2008 Alinean, Inc. Page 50

ROI Analyst™ 1. May be higher for To Be solution as consolidation of servers occurs. 2. Annual growth in costs and savings expected (if any). Includes specified growth in number of servers, as well as expected increase in annual salary.

Realized Benefits (Probable)

Year 1

Year 2

Solution A Current (As Is)

Year 3

$17,934

$20,230

$22,819

$1,845

$2,081

$2,347

$16,089

$18,149

$20,472

Q1

$0.00

$4,022.25

$4,537.25

Q2

$4,022.25

$4,537.25

$5,118.00

Q3

$4,022.25

$4,537.25

$5,118.00

Q4

$4,022.25

$4,537.25

$5,118.00

$12,067

$17,634

$19,891

Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Desktop Virtualization Security Incident Labor Avoidance With Microsoft Integrated Virtualization, PC configuration management and support is centralized and controlled, helping to assure that latest updates are applied and better secure PCs against viruses, worm or other malware issues and risks. This can help to eliminate the issues and reduce the labor cost for IT having to respond and resolve the issues. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$35,674 Operating Expense (Allocated) Direct Benefits Reduce IT Operations and Administration Costs PC Manager

Desktop Virtualization Security Incident Labor Avoidance

Benefits with Microsoft (To Be)

Current (As Is)

Proposed with Microsoft Virtualization (To Be)

Number of clients affected by viruses and malware each year

180

40.0%

Average IT person hours per affected client to perform recovery

4.0

0.0%

4.0

720.0

288.0

432.0

$11,453

$17,181

Total incident resolution related IT person hours per year Average burdened hourly salary for PC engineering staff

$39.77

Total security incidents annual labor cost Desktop Virtualization Security Incident Labor Avoidance

108

$39.77

$28,634

Year 1

Year 2

Year 3

Year 4

Year 5

Current (As Is)

$28,634

$32,643

$37,213

$42,423

$48,362

With Microsoft Integrated Virtualization (To Be)

$17,181

$19,586

$22,328

$25,454

$29,018

Total Net Savings (As Is - To Be)

$11,453

$13,057

$14,885

$16,969

$19,344

Annual growth in costs and savings (if any - starting in year 2)

14.0% n1

Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.

Realized Benefits (Probable)

Year 1

Year 2

Year 3

Solution A Current (As Is)

$28,634

$32,643

$37,213

Solution B With Microsoft Integrated Virtualization (To Be)

$17,181

$19,586

$22,328

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$11,453

$13,057

$14,885

Q1

$0.00

$2,863.25

$3,264.25

Q2

$2,863.25

$3,264.25

$3,721.25

Q3

$2,863.25

$3,264.25

$3,721.25

Q4

$2,863.25

$3,264.25

$3,721.25

$8,590

$12,656

$14,428

Realized Total Benefits

Production Server Disaster Recovery Time Savings Copyright © 2001-2008 Alinean, Inc. Page 51

ROI Analyst™ With Microsoft Integrated Virtualization, remote / branch server recovery time can be dramatically reduced eliminating the need for physical bare metal restoration, helping to get operations and the workforce back up and running for branch office / remote server issues. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$29,377 Operating Expense (Allocated) Indirect Benefits Reduce Business Risk IT Director

Production Server Disaster Recovery Time Savings

Benefits with Microsoft (To Be)

Current (As Is)

Risk of a site issue per year

12.5%

Expected recovery hours

12.5%

15.0

60.0%

Total average recovery hours per year

1.9

1.1

Average number of internal users impacted per planned downtime hour

600

Percentage productivity impact

40.0%

Total person hours of lost productivity for internal users

456.0

Average burdened hourly salary for users

6.0 0.8 600 40.0% n1

264.0

192.0

$36.10

Total planned downtime annual cost Production Server Disaster Recovery Time Savings

Proposed with Microsoft Virtualization (To Be)

$36.10

$16,462 Year 1

Current (As Is)

Year 2

$9,531

Year 3

Year 4

$6,931 Year 5

$16,462

$18,569

$20,946

$23,627

$26,651

With Microsoft Integrated Virtualization (To Be)

$6,931

$7,818

$8,819

$9,948

$11,221

Total Net Savings (As Is - To Be)

$9,531

$10,751

$12,127

$13,679

$15,430

Annual growth in costs and savings (if any - starting in year 2)

12.8% n2

Notes: 1. May be higher for To Be solution as consolidation of servers occurs. 2. Annual growth in costs and savings expected (if any). Includes specified growth in number of servers, as well as expected increase in annual salary.

Realized Benefits (Probable)

Year 1

Solution A Current (As Is)

Year 2

Year 3

$16,462

$18,569

$20,946

Solution B With Microsoft Integrated Virtualization (To Be)

$6,931

$7,818

$8,819

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$9,531

$10,751

$12,127

Q1

$0.00

$2,382.75

$2,687.75

Q2

$2,382.75

$2,687.75

$3,031.75

Q3

$2,382.75

$2,687.75

$3,031.75

Q4

$2,382.75

$2,687.75

$3,031.75

$7,148

$10,446

$11,783

Realized Total Benefits

Desktop Virtualization PC Recovery Risk Avoidance With Microsoft Integrated Virtualization, PC configuration management and support is centralized and PC restoration virtualized from hardware, making recovery possible to any network connected PC, helping to reduce the workload to get the OS, applications and data restored quickly should a PC become corrupted or damaged. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$25,974 Operating Expense (Allocated) Indirect Benefits Reduce Business Risk PC Manager

Desktop Virtualization PC Recovery Risk Avoidance

Benefits with Microsoft (To Be)

Current (As Is)

Proposed with Microsoft Virtualization (To Be)

Number of clients affected by crashes per year

165

0.0%

165

Average user downtime hours per affected client to perform recovery

4.00

70.0%

1.20

660.0

462.0

Total recovery related downtime person hours per year Average burdened hourly salary for users Total annual downtime cost

$36.10 $23,826

Realized costs

50.0%

Realized costs

$11,913

198.0 $36.10

$16,678

$7,148

$8,339

$3,574

50.0%

Copyright © 2001-2008 Alinean, Inc. Page 52

ROI Analyst™ Desktop Virtualization PC Recovery Risk Avoidance

Year 1

Current (As Is)

Year 2

Year 3

Year 4

Year 5

$11,913

$13,581

$15,482

$17,649

With Microsoft Integrated Virtualization (To Be)

$3,574

$4,074

$4,644

$5,294

$20,120 $6,035

Total net savings (As Is - To Be)

$8,339

$9,507

$10,838

$12,355

$14,085

Annual growth in costs and savings (if any - starting in year 2)

14.0% n1

Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.

Realized Benefits (Probable)

Year 1

Year 2

Solution A Current (As Is)

Year 3

$11,913

$13,581

$15,482

Solution B With Microsoft Integrated Virtualization (To Be)

$3,574

$4,074

$4,644

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$8,339

$9,507

$10,838

Q1

$0.00

$2,084.75

$2,376.75

Q2

$2,084.75

$2,376.75

$2,709.50

Q3

$2,084.75

$2,376.75

$2,709.50

Q4

$2,084.75

$2,376.75

$2,709.50

$6,254

$9,215

$10,505

Realized Total Benefits

Desktop Virtualization Security Risk Avoidance With Microsoft Integrated Virtualization, PC configuration management and support is centralized and controlled, helping to assure that latest updates are applied and better secure PCs against viruses, worm or other malware issues and risks. This can help to eliminate the issues and reduce the downtime to users. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$16,188 Operating Expense (Allocated) Indirect Benefits Reduce Business Risk PC Manager

Desktop Virtualization Security Risk Avoidance

Benefits with Microsoft (To Be)

Current (As Is)

Proposed with Microsoft Virtualization (To Be)

Number of clients affected by viruses and malware each year

180

40.0%

108

Average downtime hours per affected client

4.00

0.0%

4.00

720.0

288.0

Total incident resolution related downtime person hours per year Average burdened hourly salary for users Total annual downtime cost

$36.10

$25,992

Realized costs

50.0%

Realized costs

$12,996

Desktop Virtualization Security Risk Avoidance

432.0

$36.10

Year 1

Current (As Is)

Year 2

$10,397

$15,595

$5,198

$7,798

50.0%

Year 3

Year 4

Year 5

$12,996

$14,815

$16,889

$19,253

$21,948

With Microsoft Integrated Virtualization (To Be)

$7,798

$8,890

$10,135

$11,554

$13,172

Total net savings (As Is - To Be)

$5,198

$5,925

$6,754

$7,699

$8,776

Annual growth in costs and savings (if any - starting in year 2)

14.0% n1

Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.

Realized Benefits (Probable) Solution A Current (As Is)

Year 1

Year 2

Year 3

$12,996

$14,815

$16,889

Solution B With Microsoft Integrated Virtualization (To Be)

$7,798

$8,890

$10,135

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$5,198

$5,925

$6,754

Copyright © 2001-2008 Alinean, Inc. Page 53

ROI Analyst™ Q1

$0.00

$1,299.50

$1,481.25

Q2

$1,299.50

$1,481.25

$1,688.50

Q3

$1,299.50

$1,481.25

$1,688.50

Q4

$1,299.50

$1,481.25

$1,688.50

$3,898

$5,743

$6,547

Realized Total Benefits

PC Data Management Risks With Microsoft Integrated Virtualization, PC data can be more effectively managed, especially removing the data from the client and storing it centrally. This can result in substantial reduction in risk from client stored data and data theft / disclosure risks / costs. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$14,016 Operating Expense (Allocated) Direct Benefits Reduce Business Risk PC Manager

PC Data Management Risks Annual risk of a client data related theft or disclosure

3.0%

Average cost per event if realized

Proposed with Microsoft Virtualization (To Be)

30.0%

2.1%

$500,000

Total data theft and disclosure costs PC Data Management Risks

Benefits with Microsoft (To Be)

Current (As Is)

$500,000

$15,000 Year 1

Year 2

$4,500

Year 3

Year 4

$10,500 Year 5

Current (As Is)

$15,000

$17,100

$19,494

$22,223

$25,334

With Microsoft Integrated Virtualization (To Be)

$10,500

$11,970

$13,646

$15,556

$17,734

$4,500

$5,130

$5,848

$6,667

$7,600

Total Net Savings (As Is - To Be) Annual growth in costs and savings (if any - starting in year 2)

14.0% n1

Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.

Realized Benefits (Probable)

Year 1

Year 2

Year 3

Solution A Current (As Is)

$15,000

$17,100

$19,494

Solution B With Microsoft Integrated Virtualization (To Be)

$10,500

$11,970

$13,646

$4,500

$5,130

$5,848

Q1

$0.00

$1,125.00

$1,282.50

Q2

$1,125.00

$1,282.50

$1,462.00

Q3

$1,125.00

$1,282.50

$1,462.00

Q4

$1,125.00

$1,282.50

$1,462.00

$3,375

$4,972

$5,668

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Realized Total Benefits

Desktop Virtualization Disaster Recovery Labor Avoidance With Microsoft Integrated Virtualization, PC configuration management and support is centralized and PC restoration virtualized from hardware, making recovery possible to any network connected PC, helping to reduce the workload to get sites and workforces up and running should a disaster occur. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$1,116 Operating Expense (Allocated) Direct Benefits Reduce IT Operations and Administration Costs PC Manager

Desktop Virtualization Disaster Recovery Labor Avoidance

Benefits with Microsoft (To Be)

Current (As Is)

Proposed with Microsoft Virtualization (To Be)

Number of clients affected by disaster issues per year

30

0.0%

30

Average IT person hours per affected client to perform recovery

0.5

70.0%

0.2

15.0

9.0

6.0

Total recovery related IT person hours per year

Copyright © 2001-2008 Alinean, Inc. Page 54

ROI Analyst™ Average burdened hourly salary for PC engineering staff

$39.77

Total disaster recovery labor annual cost

$39.77

$597

Desktop Virtualization Disaster Recovery Labor Avoidance

Year 1

Year 2

$358

Year 3

Year 4

$239

Year 5

Current (As Is)

$597

$681

$776

$885

$1,009

With Microsoft Integrated Virtualization (To Be)

$239

$272

$310

$353

$402

Total Net Savings (As Is - To Be)

$358

$409

$466

$532

$607

Annual growth in costs and savings (if any - starting in year 2)

14.0% n1

Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.

Realized Benefits (Probable)

Year 1

Year 2

Year 3

Solution A Current (As Is)

$597

$681

$776

Solution B With Microsoft Integrated Virtualization (To Be)

$239

$272

$310

Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

$358

$409

$466

Q1

$0.00

$89.50

$102.25

Q2

$89.50

$102.25

$116.50

Q3

$89.50

$102.25

$116.50

Q4

$89.50

$102.25

$116.50

$268

$396

$452

Realized Total Benefits

Desktop Virtualization Disaster Recovery Risk Avoidance With Microsoft Integrated Virtualization, PC configuration management and support is centralized and PC restoration virtualized from hardware, making recovery possible to any network connected PC, helping to reduce the time it takes to get sites and workforces up and running should a disaster occur. Cumulative Benefits (3 - Year): Organization financial benefit type: Values map to benefit class: Goal: Stakeholder:

$592 Operating Expense (Allocated) Indirect Benefits Reduce Business Risk PC Manager

Desktop Virtualization Disaster Recovery Risk Avoidance

Benefits with Microsoft (To Be)

Current (As Is)

Number of clients affected by disaster issues per year Average user downtime hours per affected client to perform recovery Total recovery related downtime person hours per year Average burdened hourly salary for users

30

0.0%

30

0.50

70.0%

0.15

15.0

10.5

4.5

$36.10

Total annual downtime cost

$36.10

$542

Realized costs

50.0%

Realized costs

$271

Desktop Virtualization Disaster Recovery Risk Avoidance

Proposed with Microsoft Virtualization (To Be)

Year 1

Current (As Is) With Microsoft Integrated Virtualization (To Be) Total net savings (As Is - To Be)

Year 2

$380

$162 50.0%

$190

Year 3

Year 4

$81

Year 5

$271

$309

$352

$401

$457

$81

$92

$105

$120

$137

$190

$217

$247

$281

$320

Annual growth in costs and savings (if any - starting in year 2)

14.0% n1

Notes: 1. Annual growth in costs and savings expected (if any). Includes specified growth in number of client computers, as well as expected increase in annual salary.

Realized Benefits (Probable) Solution A Current (As Is) Solution B With Microsoft Integrated Virtualization (To Be) Worksheet / Ideal Benefit (to Solution B from Current (AS IS))

Year 1

Year 2

Year 3

$271

$309

$352

$81

$92

$105

$190

$217

$247

Copyright © 2001-2008 Alinean, Inc. Page 55

ROI Analyst™

Q1

$0.00

$47.50

$54.25

Q2

$47.50

$54.25

$61.75

Q3

$47.50

$54.25

$61.75

Q4

$47.50

$54.25

$61.75

$142

$210

$240

Realized Total Benefits

Copyright © 2001-2008 Alinean, Inc. Page 56

ROI Analyst™

Appendix D: Investment Details Desktop and Application Virtualization Licensing and Infrastructure Costs The cost for training classes / certification to implement the planned Microsoft Development and Test Lab Server Virtualization. Cumulative Cost (3 - Year): Organization financial cost type: Values map to expense category:

Desktop and Application Virtualization Licensing and Infrastructure Costs

$4,958,627 Net Fixed Assets (NFA) Capital Expenditure

Initial

Year 1

Year 2

Year 3

Year 4

Year 5

Terminal Services Number of clients

6,000

600

660

726

799

879

$149.80

$149.80

$149.80

$149.80

$149.80

$149.80

$898,800

$89,880

$98,868

$108,755

$119,690

$131,674

Cost per client Total cost Hosted Desktop using Windows Vista Enterprise Centralized Desktops Number of clients

6,000

600

660

726

799

879

Cost per client

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0

$0

$0

$0

$0

$0

Total cost Virtual PC Number of clients Cost per client Total cost

0

0

0

0

0

0

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0

$0

$0

$0

$0

$0

Application Virtualization using Microsoft MDOP's Softgrid Application Virtualization Number of clients

6,000

600

660

726

799

879

$10.00

$10.00

$10.00

$10.00

$10.00

$10.00

$60,000

$6,000

$6,600

$7,260

$7,990

$8,790

$958,800

$95,880

$105,468

$116,015

$127,680

$140,464

Cost per client Total cost Total client licensing costs Host Servers

Initial

Number of servers to support / host clients

Microsoft Systems Center including Virtual Machine Manager

Year 3

Year 4

Year 5

200

20

22

25

27

30

$12,502

$12,502

$12,502

$12,502

$12,502

$2,500,400

$250,040

$275,044

$312,550

$337,554

$375,060

Initial

Number of licenses

Year 1

Year 2

Year 3

Year 4

Year 5

200

20

22

25

27

30

$1,290

$1,290

$1,290

$1,290

$1,290

$1,290

$258,000

$25,800

$28,380

$32,250

$34,830

$38,700

$460,815

$500,064

$554,224

Cost per license Total cost

Year 2

$12,502

Cost per server Total cost

Year 1

With Competitive Solution Units Client licenses Host Server Virtualization software Virtualization Management Software and Host Server Server hardware and OS costs Microsoft System Center (including VMM) Connection Broker Client licenses Connection Broker hardware

Unit Price

Total

6,000

$150.00

$900,000

240

$5,750.00

$1,380,000

1

$7,000.00

$7,000

240

$14,668.00

$3,520,320

0

$1,290.00

$0

6,000

$50.00

$300,000

1

$1,300.00

Total

$1,300 $6,108,620

Total for Microsoft

Realized Costs

$3,717,200

$371,720

Initial

$408,892

Year 1

Year 2

Year 3

Worksheet / Ideal Cost (Purchased)

$3,717,200

$371,720

$408,892

$460,815

Annual Cash Flow

$3,717,200

$371,720

$408,892

$460,815

Q1

$92,930.00

$102,223.00

$115,203.75

Q2

$92,930.00

$102,223.00

$115,203.75

Q3

$92,930.00

$102,223.00

$115,203.75

Q4

$92,930.00

$102,223.00

$115,203.75

$371,720

$408,892

$460,815

Realized Total

$3,717,200

Copyright © 2001-2008 Alinean, Inc. Page 57

ROI Analyst™ Desktop and Application Virtualization Professional Services Costs The cost for professional services to implement the planned Microsoft Desktop and Application Server Virtualization. Cumulative Cost (3 - Year): Organization financial cost type: Values map to expense category:

Desktop and Application Virtualization Professional Services Costs

$918,000 Operating Expenses Operating Expenditure

Initial

Year 1

Year 2

Year 3

Year 4

Year 5

Planning and design costs

$198,000

$0

$0

$0

$0

$0

Deployment costs

$720,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$918,000

$0

$0

$0

$0

$0

Other costs Total

Realized Costs

Initial

Year 1

Year 2

Year 3

Worksheet / Ideal Cost (Purchased)

$918,000

$0

$0

$0

Annual Cash Flow

$918,000

$0

$0

$0

Q1

$0.00

$0.00

$0.00

Q2

$0.00

$0.00

$0.00

Q3

$0.00

$0.00

$0.00

Q4

$0.00

$0.00

$0.00

$0

$0

$0

Realized Total

$918,000

Desktop and Application Server Virtualization Implementation Labor Costs The cost for internal / contract labor costs to implement the planned Microsoft Desktop and Application Server Virtualization. Cumulative Cost (3 - Year): Organization financial cost type: Values map to expense category:

Desktop and Application Server Virtualization Implementation Labor Costs

$569,036 Operating Expenses Operating Expenditure

Initial

Year 1

Year 2

Year 3

Year 4

Year 5

Planning and design costs Person hours

3,200.0

0.0

0.0

0.0

0.0

0.0

Hourly labor rate

$45.89

$47.73

$49.64

$51.63

$53.70

$55.85

$146,848

$0

$0

$0

$0

$0

Total cost Deployment costs Person hours

9,200.0

0.0

0.0

0.0

0.0

0.0

Hourly labor rate

$45.89

$47.73

$49.64

$51.63

$53.70

$55.85

$422,188

$0

$0

$0

$0

$0

Total cost Other costs Person hours Hourly labor rate Total cost Total

Realized Costs

0.0

0.0

0.0

0.0

0.0

0.0

$45.89

$47.73

$49.64

$51.63

$53.70

$55.85

$0

$0

$0

$0

$0

$0

$569,036

$0

$0

$0

$0

$0

Initial

Year 1

Year 2

Year 3

Worksheet / Ideal Cost (Purchased)

$569,036

$0

$0

$0

Annual Cash Flow

$569,036

$0

$0

$0

Q1

$0.00

$0.00

$0.00

Q2

$0.00

$0.00

$0.00

Q3

$0.00

$0.00

$0.00

Q4

$0.00

$0.00

$0.00

$0

$0

$0

Realized Total

$569,036

Production Server Virtualization Licensing Cost The cost for Microsoft or Competitive (see Solution Selection at top for setting) Server and Virtualization Licensing for the Production Servers.

Copyright © 2001-2008 Alinean, Inc. Page 58

ROI Analyst™ Cumulative Cost (3 - Year): Organization financial cost type: Values map to expense category:

Windows Server 2008 Licensing

$425,896 Net Fixed Assets (NFA) Capital Expenditure

Initial

Year 1

Year 2

Year 3

Year 4

Year 5

Windows Server 2008 Standard Licensing Number of units

71

8

9

9

10

11

$719

$719

$719

$719

$719

$719

$51,049

$5,752

$6,471

$6,471

$7,190

$7,909

Unit cost Total Windows Server 2008 Enterprise Licensing Number of units Unit cost Total

0

0

0

0

0

0

$2,334

$2,334

$2,334

$2,334

$2,334

$2,334

$0

$0

$0

$0

$0

$0

Windows Server 2008 Datacenter Licensing Number of units

0

0

0

0

0

0

$2,381

$2,381

$2,381

$2,381

$2,381

$2,381

$0

$0

$0

$0

$0

$0

$51,049

$5,752

$6,471

$6,471

$7,190

$7,909

Unit cost Total Total Windows Server 2008 Licensing Windows Server 2003 Licensing

Initial

Year 1

Year 2

Year 3

Year 4

Year 5

Windows Server 2003 Standard Licensing Number of units Unit cost Total

0

0

0

0

0

0

$719

$719

$719

$719

$719

$719

$0

$0

$0

$0

$0

$0

Windows Server 2003 Enterprise Licensing Number of units Unit cost Total

0

0

0

0

0

0

$2,334

$2,334

$2,334

$2,334

$2,334

$2,334

$0

$0

$0

$0

$0

$0

Windows Server 2003 Datacenter Licensing Number of units Unit cost Total Total Windows Server 2003 Licensing Windows Server SA Credits, Agreement Licensing and Net Windows Server Licensing Costs

0

0

0

0

0

0

$2,381

$2,381

$2,381

$2,381

$2,381

$2,381

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Initial

Year 1

Year 2

Year 3

Year 4

Year 5

Credit for prior SA Agreements

$0

$0

$0

$0

$0

Cost for new SA Agreements

$0

$0

$0

$0

$0

$0

$51,049

$5,752

$6,471

$6,471

$7,190

$7,909

Net Windows Server Licensing Virtualization Management

Initial

Year 1

Year 2

Year 3

Year 4

$0

Year 5

Virtualization Software Licensing Number of units

0

0

0

0

0

0

Unit cost

$0

$0

$0

$0

$0

$0

Total

$0

$0

$0

$0

$0

$0

Virtualization Management Software Number of units

0

0

0

0

0

0

Unit cost

$0

$0

$0

$0

$0

$0

Total

$0

$0

$0

$0

$0

$0

System Center Enterprise (Virtual Machine Manager) Number of units Unit cost Total

71

8

9

9

10

11

$1,290

$1,290

$1,290

$1,290

$1,290

$1,290

$91,590

$10,320

$11,610

$11,610

$12,900

$14,190

Third party backup software Number of units Unit cost Total

0

0

0

0

0

0

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$0

$0

$0

$0

$0

$0

Additional storage space to support virtualization (GB) Number of GB

8,694

869

956

1052

1157

1273

$21.00

$21.00

$16.80

$13.44

$10.75

$8.60

Total

$182,574

$18,249

$16,061

$14,139

$12,438

$10,948

Total for Virtualization and Management Software

$274,164

$28,569

$27,671

$25,749

$25,338

$25,138

Total (net Windows Server licensing + total virtualization management)

$325,213

$34,321

$34,142

$32,220

$32,528

$33,047

Unit cost per GB

Copyright © 2001-2008 Alinean, Inc. Page 59

ROI Analyst™

Realized Costs

Initial

Year 1

Year 2

Year 3

Worksheet / Ideal Cost (Purchased)

$325,213

$34,321

$34,142

$32,220

Annual Cash Flow

$325,213

$34,321

$34,142

$32,220

Q1

$8,580.25

$8,535.50

$8,055.00

Q2

$8,580.25

$8,535.50

$8,055.00

Q3

$8,580.25

$8,535.50

$8,055.00

Q4

$8,580.25

$8,535.50

$8,055.00

$34,321

$34,142

$32,220

Realized Total

$325,213

Production Server Virtualization Professional Services Costs The cost for professional services to implement the planned Microsoft Production Server Virtualization. Cumulative Cost (3 - Year): Organization financial cost type: Values map to expense category:

Production Server Virtualization Professional Services Costs Planning and design costs Deployment costs

$195,250 Operating Expenses Operating Expenditure

Initial

Year 2

Year 3

Year 4

Year 5

$0

$0

$0

$0

$0

$142,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$195,250

$0

$0

$0

$0

$0

Other costs Total

Year 1

$53,250

Realized Costs

Initial

Year 1

Year 2

Year 3

Worksheet / Ideal Cost (Purchased)

$195,250

$0

$0

$0

Annual Cash Flow

$195,250

$0

$0

$0

Q1

$0.00

$0.00

$0.00

Q2

$0.00

$0.00

$0.00

Q3

$0.00

$0.00

$0.00

Q4

$0.00

$0.00

$0.00

$0

$0

$0

Realized Total

$195,250

Development and Test Lab Server Virtualization Licensing Cost The cost for Microsoft Server and Virtualization Licensing for the Development and Test Lab Servers. Cumulative Cost (3 - Year): Organization financial cost type: Values map to expense category:

Windows Server 2008 Licensing

$173,949 Net Fixed Assets (NFA) Capital Expenditure

Initial

Year 1

Year 2

Year 3

Year 4

Year 5

Windows Server 2008 Standard Licensing Number of units

26

10

11

13

14

15

$719

$719

$719

$719

$719

$719

$18,694

$7,190

$7,909

$9,347

$10,066

$10,785

Unit cost Total Windows Server 2008 Enterprise Licensing Number of units Unit cost Total

0

0

0

0

0

0

$2,334

$2,334

$2,334

$2,334

$2,334

$2,334

$0

$0

$0

$0

$0

$0

Windows Server 2008 Datacenter Licensing Number of units

0

0

0

0

0

0

$2,381

$2,381

$2,381

$2,381

$2,381

$2,381

$0

$0

$0

$0

$0

$0

$18,694

$7,190

$7,909

$9,347

$10,066

$10,785

Unit cost Total Total Windows Server 2008 Licensing Windows Server 2003 Licensing

Initial

Year 1

Year 2

Year 3

Year 4

Year 5

Windows Server 2003 Standard Licensing

Copyright © 2001-2008 Alinean, Inc. Page 60

ROI Analyst™ Number of units

26

0

0

0

0

0

$719

$719

$719

$719

$719

$719

$18,694

$0

$0

$0

$0

$0

Unit cost Total Windows Server 2003 Enterprise Licensing Number of units Unit cost Total

0

0

0

0

0

0

$2,334

$2,334

$2,334

$2,334

$2,334

$2,334

$0

$0

$0

$0

$0

$0

Windows Server 2003 Datacenter Licensing Number of units

0

0

0

0

0

0

$2,381

$2,381

$2,381

$2,381

$2,381

$2,381

$0

$0

$0

$0

$0

$0

$18,694

$0

$0

$0

$0

$0

Unit cost Total Total Windows Server 2003 Licensing Windows Server SA Credits, Agreement Licensing and Net Windows Server Licensing Costs

Initial

Year 1

Year 2

Year 3

Year 4

Year 5

Credit for prior SA Agreements

$0

$0

$0

$0

$0

Cost for new SA Agreements

$0

$0

$0

$0

$0

$0

$37,388

$7,190

$7,909

$9,347

$10,066

$10,785

Net Windows Server Licensing Virtualization Management

Initial

Year 1

Year 2

Year 3

Year 4

$0

Year 5

Virtualization Software Licensing Number of units

0

0

0

0

0

0

Unit cost

$0

$0

$0

$0

$0

$0

Total

$0

$0

$0

$0

$0

$0

Virtualization Management Software Number of units

0

0

0

0

0

0

Unit cost

$0

$0

$0

$0

$0

$0

Total

$0

$0

$0

$0

$0

$0

Lab Management Number of units

0

0

0

0

0

0

Unit cost

$0

$0

$0

$0

$0

$0

Total

$0

$0

$0

$0

$0

$0

System Center Enterprise (Virtual Machine Manager) Number of units Unit cost Total

26

3

3

3

3

4

$1,290

$1,290

$1,290

$1,290

$1,290

$1,290

$33,540

$3,870

$3,870

$3,870

$3,870

$5,160

Third party backup software Number of units Unit cost Total

0

0

0

0

0

0

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000

$0

$0

$0

$0

$0

$0

Additional storage space to support virtualization (GB) Number of GB Unit cost per GB Total Total for Virtualization and Management Software Total (net Windows Server licensing + total virtualization management)

Realized Costs

2,520

252

277

305

335

369

$21.00

$21.00

$16.80

$13.44

$10.75

$8.60

$52,920

$5,292

$4,654

$4,099

$3,601

$3,173

$86,460

$9,162

$8,524

$7,969

$7,471

$8,333

$123,848

$16,352

$16,433

$17,316

$17,537

$19,118

Initial

Year 1

Year 2

Year 3

Worksheet / Ideal Cost (Purchased)

$123,848

$16,352

$16,433

$17,316

Annual Cash Flow

$123,848

$16,352

$16,433

$17,316

Q1

$4,088.00

$4,108.25

$4,329.00

Q2

$4,088.00

$4,108.25

$4,329.00

Q3

$4,088.00

$4,108.25

$4,329.00

Q4

$4,088.00

$4,108.25

$4,329.00

$16,352

$16,433

$17,316

Realized Total

$123,848

Development and Test Lab Server Virtualization Professional Services Costs The cost for professional services to implement the planned Microsoft Development and Test Lab Server Virtualization. Cumulative Cost (3 - Year): Organization financial cost type:

$71,500 Operating Expenses

Copyright © 2001-2008 Alinean, Inc. Page 61

ROI Analyst™ Values map to expense category:

Development and Test Lab Server Virtualization Professional Services Costs

Operating Expenditure

Initial

Year 1

Year 2

Year 3

Year 4

Year 5

Planning and design costs

$19,500

$0

$0

$0

$0

$0

Deployment costs

$52,000

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$71,500

$0

$0

$0

$0

$0

Other costs Total

Realized Costs

Initial

Year 1

Year 2

Year 3

Worksheet / Ideal Cost (Purchased)

$71,500

$0

$0

$0

Annual Cash Flow

$71,500

$0

$0

$0

Q1

$0.00

$0.00

$0.00

Q2

$0.00

$0.00

$0.00

Q3

$0.00

$0.00

$0.00

Q4

$0.00

$0.00

$0.00

$0

$0

$0

Realized Total

$71,500

Production Server Virtualization Implementation Labor Costs The cost for internal / contract labor costs to implement the planned Microsoft Production Server Virtualization. Cumulative Cost (3 - Year): Organization financial cost type: Values map to expense category:

Production Server Virtualization Implementation Labor Costs

$45,615 Operating Expenses Operating Expenditure

Initial

Year 1

Year 2

Year 3

Year 4

Year 5

Planning and design costs Person hours

284.0

0.0

0.0

0.0

0.0

0.0

$45.89

$47.73

$49.64

$51.63

$53.70

$55.85

$13,033

$0

$0

$0

$0

$0

Hourly labor rate Total cost Deployment costs Person hours

710

0

0

0

0

0

$45.89

$47.73

$49.64

$51.63

$53.70

$55.85

$32,582

$0

$0

$0

$0

$0

Hourly labor rate Total cost Other costs Person hours Hourly labor rate Total cost Total

0

0

0

0

0

0

$45.89

$47.73

$49.64

$51.63

$53.70

$55.85

$0

$0

$0

$0

$0

$0

$45,615

$0

$0

$0

$0

$0

Realized Costs

Initial

Year 1

Year 2

Year 3

Worksheet / Ideal Cost (Purchased)

$45,615

$0

$0

$0

Annual Cash Flow

$45,615

$0

$0

$0

Q1

$0.00

$0.00

$0.00

Q2

$0.00

$0.00

$0.00

Q3

$0.00

$0.00

$0.00

Q4

$0.00

$0.00

$0.00

$0

$0

$0

Realized Total

$45,615

Development and Test Lab Server Virtualization Implementation Labor Costs The cost for internal / contract labor costs to implement the planned Microsoft Development and Test Lab Server Virtualization. Cumulative Cost (3 - Year): Organization financial cost type: Values map to expense category:

Development and Test Lab Server Virtualization Implementation Labor Costs

$16,704 Operating Expenses Operating Expenditure

Initial

Year 1

Year 2

Year 3

Year 4

Year 5

Planning and design costs

Copyright © 2001-2008 Alinean, Inc. Page 62

ROI Analyst™ Person hours

104.0

0.0

0.0

0.0

0.0

0.0

Hourly labor rate

$45.89

$47.73

$49.64

$51.63

$53.70

$55.85

Total cost

$4,773

$0

$0

$0

$0

$0

Deployment costs Person hours

260.0

0.0

0.0

0.0

0.0

0.0

$45.89

$47.73

$49.64

$51.63

$53.70

$55.85

$11,931

$0

$0

$0

$0

$0

Hourly labor rate Total cost Other costs Person hours

0.0

0.0

0.0

0.0

0.0

0.0

$45.89

$47.73

$49.64

$51.63

$53.70

$55.85

$0

$0

$0

$0

$0

$0

$16,704

$0

$0

$0

$0

$0

Hourly labor rate Total cost Total

Realized Costs

Initial

Year 1

Year 2

Year 3

Worksheet / Ideal Cost (Purchased)

$16,704

$0

$0

$0

Annual Cash Flow

$16,704

$0

$0

$0

Q1

$0.00

$0.00

$0.00

Q2

$0.00

$0.00

$0.00

Q3

$0.00

$0.00

$0.00

Q4

$0.00

$0.00

$0.00

$0

$0

$0

Realized Total

$16,704

Production Server Virtualization Training Costs The cost for training classes / certification to implement the planned Microsoft Production Server Virtualization. Cumulative Cost (3 - Year): Organization financial cost type: Values map to expense category:

Production Server Virtualization Training Costs

$0 Operating Expenses Operating Expenditure

Initial

Number of courses Cost per course Total cost

Realized Costs

Year 1

Year 2

Year 3

Year 4

Year 5

0

0

0

0

0

0

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0

$0

$0

$0

$0

$0

Initial

Year 1

Year 2

Year 3

Worksheet / Ideal Cost (Purchased)

$0

$0

$0

$0

Annual Cash Flow

$0

$0

$0

$0

Q1

$0.00

$0.00

$0.00

Q2

$0.00

$0.00

$0.00

Q3

$0.00

$0.00

$0.00

Q4

$0.00

$0.00

$0.00

$0

$0

$0

Realized Total

$0

Desktop and Application Server Virtualization Training Costs The cost for training classes / certification to implement the planned Microsoft Desktop and Application Server Virtualization. Cumulative Cost (3 - Year): Organization financial cost type: Values map to expense category:

Desktop and Application Server Virtualization Training Costs Number of courses Cost per course Total cost

Realized Costs Worksheet / Ideal Cost (Purchased)

$0 Operating Expenses Operating Expenditure

Initial

Year 1

Year 2

Year 3

Year 4

Year 5

0

0

0

0

0

0

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0

$0

$0

$0

$0

$0

Initial

Year 1 $0

Year 2 $0

Year 3 $0

$0

Copyright © 2001-2008 Alinean, Inc. Page 63

ROI Analyst™ Annual Cash Flow

$0

$0

$0

$0

Q1

$0.00

$0.00

$0.00

Q2

$0.00

$0.00

$0.00

Q3

$0.00

$0.00

$0.00

Q4

$0.00

$0.00

$0.00

$0

$0

$0

Realized Total

$0

Development and Test Lab Server Virtualization Training Costs The cost for training classes / certification to implement the planned Microsoft Development and Test Lab Server Virtualization. Cumulative Cost (3 - Year): Organization financial cost type: Values map to expense category:

Development and Test Lab Server Virtualization Training Costs Number of courses Cost per course Total cost

Realized Costs

$0 Operating Expenses Operating Expenditure

Initial

Year 1

Year 2

Year 3

Year 4

Year 5

0

0

0

0

0

0

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0

$0

$0

$0

$0

$0

Initial

Year 1

Year 2

Year 3

Worksheet / Ideal Cost (Purchased)

$0

$0

$0

$0

Annual Cash Flow

$0

$0

$0

$0

Q1

$0.00

$0.00

$0.00

Q2

$0.00

$0.00

$0.00

Q3

$0.00

$0.00

$0.00

Q4

$0.00

$0.00

$0.00

$0

$0

$0

Realized Total

$0

Copyright © 2001-2008 Alinean, Inc. Page 64

ROI Analyst™

Appendix E: Realized Benefit Schedule The Implementation Plan and Realized Benefits section establishes how the benefits calculations are adjusted for various risks and realizations in order to create more conservative, risk adjusted results. These adjustments include: • • •

Project implementation plan and potential delays (benefits do not get realized until after deployment) Discounting of direct (hard) or indirect (soft) benefits Adoption curve (delays in realizing full benefits based on rollout or user adoption delays) Realized Benefits and Schedule

Project Implementation Plan (months from kickoff to deployment)

3

Default Realized Benefits Direct Benefits (Hard)

100.0%

Indirect Benefits (Soft)

100.0%

Benefit Schedule/Adoption Curve (starting from deployment) First Year (months 1-12 from deployment)

100.0%

Second Year (months 13-24 from deployment)

100.0%

Third Year (months 25-36 from deployment)

100.0%

Copyright © 2001-2008 Alinean, Inc. Page 65

ROI Analyst™

Appendix F: Project Risk Cost of Capital / Discount Rate: 9.5% Risks of Implementing / Deploying This Project

Likelihood

Impact

Requirements

No Risk (0)

No Impact (0)

Schedule

No Risk (0)

No Impact (0)

Resource Capability and Maturity

No Risk (0)

No Impact (0)

Technology / Infrastructure

No Risk (0)

No Impact (0)

Vendor / Service Provider

No Risk (0)

No Impact (0)

Management Commitment and Funding

No Risk (0)

No Impact (0)

User Acceptance

No Risk (0)

No Impact (0)

Market / Business Environment

No Risk (0)

No Impact (0)

Total Risk Score: 0.0% Risk Adjusted Discount Rate: 9.5%

Copyright © 2001-2008 Alinean, Inc. Page 66