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T

ABLE OF

C

ONTENTS

EXECUTIVE SUMMARY ERROR! BOOKMARK NOT DEFINED. NOVELL’S TOTAL COST OF OWNERSHIP IS LOWER 3

SERVICE DRIVES TCODIFFERENTIATION 3

LICENSING AND MAINTENANCE IMPACT ON TCO 4

RECOMMENDATIONS 4

THE IMPACT OF TCO IN IAM INVESTMENT DECISIONS 5

ANALYSIS METHODOLOGY 5

FINDINGS AND KEY STATISTICS 6

FINDINGS BY CUSTOMER SEGMENT 7

MASSIVE ENTERPRISES 8

LARGE COMPANIES 9

MEDIUM COMPANIES 10

THE IMPACT OF LICENSE FEES ON TCO 11

ONGOING APPLICATION INTEGRATIONS 14

VENDOR /PRODUCT SWITCHING COSTS 17

OTHER KEY STATISTICS 17

RECOMMENDATIONS 17

APPENDIX 1 - SCENARIOS 19

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I

N

B

RIEF

Novell’s Total Cost of Ownership is Lower

In our recent study of 50 IAM customers and systems integrators we found that Novell’s IAM user provisioning and web access management products demonstrate a lower total cost of ownership over five years. This finding was consistent for each of the three company categories researched (2,500+ users, 7,500+ users, and 40,000+ users).

Our research indicates that the primary differentiator in TCO between leading IAM product

vendors is services expense (competitors are 33% - 83% more expensive than Novell, depending on the case) followed by operations expense (differences driven by downtime, patches, and audit reporting).

Service Drives TCO Differentiation

An existing Novell IAM customer, a major US airline, noted that, “With Novell, we can configure over 90% of our drivers without any programming support; we have a team of business analysts and just one part-time programmer.” This means the average scope of professional services engagements is typically lower with Novell than with competitive products, allowing Novell IAM customers to reduce TCO via services (doing the work in-house or doing less work overall).

Most striking are the comments made by global and regional IAM professional services specialists. One systems integrator (SI) commented, “When we integrate Novell we look better. It is easier, since you don’t need deep Java expertise like with other products.” Does this translate to lower services expense? This same SI thinks so: “Yes, Novell is less than other products by 20%.” Another SI gave one specific reason for this reduction: “With Novell, you can use one driver to connect hundreds of Unix servers; this is not available from any other competitor. This works for databases, too.”

0% 20% 40% 60% 80% 100% 120% 140%

40,000+ Person Firm 7,500+ Person Firm 2,500+ Person Firm

Novell Competitive Set

Novell

Competitive Set Average (Oracle, CA, IBM, Courion)

24% more than Novell

23% more than Novell 25% more than Novell

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Licensing and Maintenance Impact on TCO

Our research indicates that licensing has only a marginal impact on TCO, over five years of ownership. While license fees can be front and center during a software investment decision, over time maintenance, services, and operations expenses outpace license expense, even when

discounted to present value. For some large deployments, expected services fees related to Novell deployments are less than expected services fees related to competitive product deployments by an amount equal to or greater than Novell’s license fee.

Recommendations

When making IAM investment decisions:

1. Conduct a quantitative analysis of expected TCO, and think like a CFO. 2. Choose the least complex product and deployment plan.

3. Focus less on licensing and more on services and operations costs.

4. Don’t be lured into switching IAM products based on license fees alone – calculate TCO changes and make a quantitative decision.

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T

HE

I

MPACT OF

TCO

IN

IAM

I

NVESTMENT

D

ECISIONS

Total Cost of Ownership (TCO) is back as a favored tool for IT investment decision making due to budget pressures across all industries. In order to determine if TCO is a viable differentiator on which to make investment decisions in the Identity and Access Management (IAM) space, Rencana conducted a multi-country, cross-industry study to compare TCO for products from different vendors.

The Rencana IAM TCO study was conducted in August and September of 2010. During this time, Rencana solicited responses from nearly 50 systems integrators and IAM product customers in the United States and Europe. In order to collect adequate responses to guarded financial information, we guaranteed our respondents anonymity and confidentiality.

We designed and executed a survey and interviewed respondents. This process provided our team with a set of quantitative and qualitative data that enabled us to analyze a cross-section of

worldwide IAM experts and their experiences.

This document describes our methodology, details key findings, and highlights certain key quotations used by our respondents to further describe their experiences with certain Novell, Oracle, IBM, CA, and Courion IAM identity and access management products.

A

NALYSIS

M

ETHODOLOGY

We conducted primary research by surveying and interviewing nearly 50 leading regional, national, and global systems integrators and IAM product customers of five different vendors (Novell,

Oracle, CA, IBM, and Courion) each with businesses of various scopes in the United States and Europe. Our primary research consisted of a survey containing a set of over 75 questions for each product / vendor combination and of follow-up and stand-alone interviews to validate and

supplement data collected. Due to the sensitivity and variable nature of product pricing and other proprietary information, most data are averaged and reported in aggregate to obscure their source. The scope of our study considers traditional identity management and access management

products hosted on-premise (rather than Software-as-a-Service) and installed and configured by the purchasing company or by the product purchaser’s hired consultants.

Our total cost of ownership (TCO) model is based on our experience with approximately 100 IAM projects across multiple industries in multiple countries. In order to highlight differences between products, we have eliminated certain TCO elements for which costs vary slightly between products. For example, the cost of general networking equipment has not been evaluated due its marginal impact on the cost difference between IAM products, since each of the products’ deployments will require a similar amount and configuration of general networking equipment. In comparing our

IAM TCO model with that of models created by Gartner1_{and Forrester}2_{, we find that our model}

considers at least as many differentiating elements as those analysts’ models and is overall well customized to the IAM User Provisioning and Web Access Management product markets.

1_{Gartner is a trademark of Gartner, Inc. Opinion based on publicly available information.}

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In order to standardize responses as much as possible, we produced three scenarios which respondents were able to reference. These scenarios hypothetically describe common IT

environments at a medium size organization (2,500+ managed users), a large organization (7,500+ users), and a massive organization (40,000+ users). Each scenario is described in detail in

Appendix 1.

Our IAM TCO model considers key elements of cost, such as: • Licensing

• Maintenance / product support • Hardware

• External services from professional services firms, contractors, and vendor engineers • Number of administrators and their salaries

• Training for administrators and end users • Scheduled and unscheduled downtime • Cost and frequency of upgrades

• Audit report generation

We normalized all supplied data to hours and to United States Dollars (USD). Thus, if we were provided information in days or weeks, we converted the data at eight hours per day, five days per week. When provided data in Euros, we converted Euros to USD at 1.3 ! to the USD, which is a reasonable average euro-dollar exchange rate for 2010.

All recurring costs were annualized and considered over a five-year term. We did not grow or inflate any recurring costs such as salaries or maintenance agreement payments. We did use the present value of all future payments /costs using a discount schedule for each organization size we considered:

Medium Large Massive

Discount Rate 12% 8% 6%

The discount rate varies by the average cost of capital for a typical firm of a certain size. We assume that massive organizations have a lower cost of capital than smaller organizations due to their perceived stability and better access to capital. However, organizations’ discounts may be different, and it may therefore impact the total cost of ownership. However, we do not believe that using a different discount rate would significantly impact percentage differences in TCO by

component (as shown in our analyses), since we use average and constant discount rates throughout our analyses.

F

INDINGS AND

K

EY

S

TATISTICS

Our team set out to analyze the IAM provisioning and web access management software market from the perspective of a financially concerned information technology manager. First, we established the total cost of ownership (TCO) model and our starting hypothesis. We initially assumed minor variability in the compared IAM products’ total cost of ownership. We began our analysis by asking the question:

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“Which IAM products have the lowest total cost of ownership?”

To answer this question, we had to answer three basic questions:

1. Do differences in licensing and maintenance expenses impact TCO?

2. Do differences in product integration and configuration service expenses impact TCO? 3. Do differences in operations and support expenses impact TCO?

We executed primary research (see Analysis Methodology) and aggregated collected data from customers and systems integrators using Rencana’s IAM TCO model. Our model calculates the present value of each answer to create a total cost of ownership for accurate comparison of each vendor’s provisioning and web access management products over the course of five years.

Findings by Customer Segment

Our analysis finds that Novell Identity Manager and Access Manager products have a lower total cost of ownership than competitive products because they are easier to configure, integrate, and administer.

Figure 1 Total cost of ownership of IAM products compared by vendor and by size of organization

Figure 1 indicates a significant difference in the total cost of ownership between Novell and other vendors considered. To better understand the components and drivers of these results, we will analyze each data set by organization size, since that will be of the greatest use to most readers.

0% 20% 40% 60% 80% 100% 120% 140%

40,000+ Person Firm 7,500+ Person Firm 2,500+ Person Firm

Novell Competitive Set

Novell

24% more than Novell

23% more than Novell 25% more than Novell

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Massive Enterprises

For massive enterprises – those companies with global and complex IT operations and over 40,000 system users – our research shows the total cost of ownership of Novell’s IAM product set to be substantially lower (approximately 24%) than competitive products.

Figure 2 Total Cost of Ownership for Provisioning and Web Access Management Products – Massive Enterprises

Figure 2 shows that while there is some difference in licensing fees between competitive products, the largest driver of the difference in total cost of ownership for IAM products is professional services and contractors. In this graphic, we see that, over five years, customers and systems integrators report that Oracle, CA, IBM, and Courion customers spend an average of

approximately 56% more on configuration and integration services than Novell customers. One interviewee commented that, “With Novell [Identity Manager], we can configure over 90% of our drivers without any programming support; we just have a team of business analysts and one part-time programmer.”

The second largest differentiator is the cost of applying patches and upgrades. Customers and systems integrators tell us that, on average, non-Novell customers spend nearly twice as much on patches, bug fixes, and upgrades as do Novell IAM customers, over five years. During our interviews, customers told us that the Novell products provide administrator tools for applying patches, bug fixes, and upgrades, which substantially reduces their overall administration time. We found that most survey respondents did not indicate a substantially reduced staff to operate Novell IAM products, but that Novell requires largely only business analysts to maintain and grow the IAM platform. This is in contrast to other products, which typically require additional

programmers to update configuration details as managed target environments change.

Licensing & Maintenance Services Hardware Administrator Salaries & Training Downtime Patches & Upgrades Audit Reporting

Novell

Oracle

(1%) 69% 3% 19% 54% 104% 457%

14% 56% (30%) 6% 39% 170% 458%

Novell TCO 24% < Competitive Set

Average % more (less) than Novell

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Customers interviewed by our researchers indicate that none of the tools generally meet their total auditing and reporting needs. It is expected in large organizations that most customers will

integrate their provisioning tools with access governance and recertification tools. Nevertheless, customers we spoke with indicate that Novell and IBM have the “best out-of-the-box” reporting tools, which seems to be validated by their low Audit Reporting scores.

Large Companies

For large companies – those with global and complex IT operations and over 7,500 system users – our research show the total cost of ownership to be substantially lower for Novell’s products than for competitive products.

Figure 3 Total Cost of Ownership for Provisioning and Web Access Management Products – Large Companies

Large companies find similar TCO benefits from Novell IAM as those of massive enterprises. Figure 3 shows that the difference in licensing fees between competitive products is negligible, on average, and thus the largest driver of the difference in total cost of ownership for IAM products is professional services and contractors.

For large companies, we find that, over five years, customers and systems integrators report that Novell customers spend approximately 71% less on configuration and integration services than customers of competitors. This substantial difference is confirmed by systems integrators, one of whom states, “When we integrate Novell, we look better. It is easier, since you don’t need deep Java expertise like with other products.” He continues, “Yes, Novell is less integration hours than other products by 20%.” Another customer reports, “With Novell [Identity Manager], we can configure over 90% of our drivers without any programming support; we just have a team of business analysts and one part-time programmer.”

Novell

Oracle

5% 83% 118% 11% 54% 104% 457%

(5%) 71% 7% 4% 39% 171% 458%

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The second largest differentiator is again the cost of applying patches and upgrades. Novell customers and systems integrators tell us that, on average, Novell large company customers also spend nearly half as much on patches, bug fixes, and upgrades, over five years. During our interviews, customers told us that the Novell products provide administrator tools for applying patches, bug fixes, and upgrades, which substantially reduces their overall administration time. Customers interviewed by our researchers indicate that some of the tools meet their auditing and reporting needs. Unlike massive enterprises, most large company customers will integrate provisioning tools with access governance and recertification tools. Many large company customers we spoke with indicate that Novell and IBM have the “best out-of-the-box” reporting tools, which was a substantial differentiator for them in their purchasing decision. The benefits of these tools seems to be borne out by the reported auditing and reporting expense that is 75% lower for Novell customers than for Oracle, CA, IBM, or Courion IAM customers.

Medium Companies

For medium companies – those with slightly less complex IT operations and over 2,500 system users – our research show the total cost of ownership to be substantially lower for Novell’s products than for competitive products.

Figure 4 Total Cost of Ownership for Provisioning and Web Access Management Products – Medium Companies

Medium companies find slightly different cost drivers than those of massive enterprises or large companies. Figure 4 shows that the difference in licensing fees between competitive products is negligible, on average, and thus the largest driver of the difference in total cost of ownership for IAM products is operations costs. Medium company respondents reported 27% lower operations costs for Novell IAM products versus competitive products. During our interviews, customers told

Novell

Oracle

21% 33% 2% 46% 2% 10% 457%

8% 38% (50%) 3% 39% 171% 458%

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us that the Novell products provide administrator tools for applying patches, bug fixes, and upgrades, which substantially reduces their overall administration time. Also, for this set of customers, differences in time required for administration have a more significant impact as a percentage of total cost.

Secondly, non-Novell customers and systems integrators report 38% higher services costs over five years. In general, medium companies report relatively less savings on services fees with Novell (relative to larger organizations). It seems likely that medium company uses a higher percentage of procured services to configure basic services than does a larger organization, which likely uses more of its procured services on customization.

The Impact of License Fees on TCO

At the outset of our research we specifically asked the question, “do differences in licensing and maintenance expenses impact total cost of ownership [of leading IAM products]?” Our research and subsequent analysis provides an answer: Yes, but these costs are not as significant to the total cost of ownership as other costs. For large deployments (more than 30 applications integrated), initial costs such as licensing become irrelevant in determining the lowest TCO.

This finding is compelling because we know that some software sales teams are competing on licensing price, which begs the question, “if a sales team is offering their product for a $0 license, is that a significant enough discount to warrant buying from them?” Our analysis shows that it is not.

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We compared the lowest TCO product set with the competitive set. We analyzed the TCO of the competitive set with a $0 license fee (but all other factors remaining the same as in our earlier analysis) compared to Novell IAM with a license fee (and all other factors remaining the same). For a massive enterprise, the TCO nears parity between the product vendors.

Figure 5 The impact of $0 license fees on IAM TCO for massive enterprises

The key take away from this analysis is that license cost, even if it is $0, is not significant enough to the total cost of ownership to use it as the single factor in making a product purchase decision. This analysis assumes approximately 10 common applications (AD, PeopleSoft HR, SAP ERP, etc.) will be integrated into the IAM architecture. An organization planning to integrate more applications should expected savings from $0 licensed software to be greater (than 4%); if the organization plans to integrate fewer than 10 applications, its expected savings from $0 licensed software will be less. Thus, for massive organizations that are expecting to integrate less than 10 applications into their IAM environment, TCO matters little; choose the product suite with the best feature set for your environment. However, if you intend to integrate 10 or more applications, then our analysis indicates Novell’s suite has a lower TCO than its competitors.

Services Hardware Administrator Salaries & Training Downtime Patches & Upgrades Audit Reporting Maintenance License

Novell with License Fees

Oracle

Competitive Set Average without License Fees (Oracle, CA, IBM, Courion)

Excess TCO

4%

Novell License Fee

Oracle without License Fees

69% 3% 19% 54% 104% 457% (9%)

(100%)

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For large and medium companies, the impact of $0 software licenses is more pronounced.

Figure 6 The impact of $0 license fees on IAM TCO for large companies

Novell with License Fee

Oracle without License Fee

Competitive Set Average without License Fee (Oracle, CA, IBM, Courion)

Excess TCO

<- 17% ->

Novell License Fee

83% 118% 11% 54% 104% 457% (100%)

71%) 7% 4% 39% 171% 458% (7%)

1%

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Figure 7 The impact of $0 license fees on IAM TCO for medium companies

Large and medium organizations looking to lower their TCO below Novell’s expected TCO with a competitive product should expect to receive a $0 IAM software license and substantially conduct their own integration in order to lower expected TCO to be less than expected TCO with Novell (with an average license fee and average services contract).

Ongoing Application Integrations

Organizations planning to integrate a substantial number of applications into their user provisioning environments should pay particular attention to the discrete cost of application integration for out-of-the-box and custom application integrations. Our analysis indicates that integrating applications is a differentiating factor of TCO between software vendor’s user provisioning products. We analyzed two scenarios: 1) the cost of integrating 30 additional applications to an existing user provisioning environment, and 2) the cost of integrating 90 additional applications to an existing user provisioning environment.

Novell with License Fees

Oracle without License Fees

Competitive Set Average without License Fees (Oracle, CA, IBM, Courion)

Excess TCO <- 22% -> Novell License Fee 33% 2% 46% 2% 10% 457% 24% 38% (50%) (3%) 39% 171% 458% 11%

(100%) (100%)

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The cost difference in integrating 30 additional applications to an existing user provisioning environment can be significant between vendors’ products. Our scenario assumes that of the 30 integrated applications, 20 use vendors’ out-of-the-box connectors, and 10 use custom developed connectors.

Figure 8 Average OOTB and custom connector integration costs by vendor, with professional services

In this case, we find that there is a significant difference between the average costs of integrating an application using an out-of-the-box connector ($17,500 per connector for Novell vs. ~$27,100 for competitors). Multiplied over 20 applications, the savings Novell provide are substantial. While custom connectors also appear to enjoy a similar cost advantage, some interview respondents noted frustration with custom connectors in general. One interviewee thought that Novell’s custom connector effort would be similar to IBM or Oracle, indicating that the level of technical expertise required is fairly high across all the products researched.

20 Out-of-the-Box Connectors 10 Custom Connectors

Novell

Oracle

TCO Savings per 30 Applications

46% more

<- (Hundreds of Thousands of $) ->

~ $26,650 per connector ~ $28,450 pre connector

~ $ 29,300 per connector ~ $27,100 per connector

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Many clients have over the years indicated their intention to manage tens or hundreds of

applications through integration with an IAM environment. In that scenario, using the cost-per-application integration approach, we find the difference in TCO represents hundreds of thousands of dollars.

Figure 9 TCO of different vendors after integrating 100 applications

According to our analysis, Novell customers who hire professional services to integrate 90 or more applications for provisioning have a TCO less than competitive set customers by an amount equal to licensing and five years’ maintenance. This point again reinforces our finding that services are the number one driver of total cost of ownership.

Licensing & Maintenance Services Hardware Administrator Salaries & Training Downtime Patches & Upgrades Audit Reporting 90 More Connectors

Novell

Oracle

(1%) 69% 3% 19% 54% 104% 457%

14% 56% (30%) 6% 39% 170% 458%

42%

46%

TCO Savings with 90 Integrated Applications

34% more

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Vendor / Product Switching Costs

Does it ever make sense to switch from one IAM vendor to another? Not if the organization has already implemented the software. We considered eight scenarios under which an organization might consider switching products.

Based on this analysis, it generally does not make sense to switch products after having purchased one of them. However, if your organization plans to integrate more than 30 applications into its IAM environment, and you have not yet started with the deployment, then it does make sense to consider the impact of a switch to Novell. Those customers who own a non-Novell IAM product, have not yet integrated it with their IT environment, and decide to switch should expect to a lower

TCO after the 32nd_{application integration. It is important to note that our analysis assumes the}

organization will complete these integrations within two years of switching. The longer the integration time, the more applications are required to reduce TCO via switching.

Other Key Statistics

See Appendix 2 – Key Data for data behind calculations:

• Novell out-of-the-box provisioning connectors require up to 75% less systems integrator time to deploy than competitive products.

• Novell custom provisioning connectors require up to 30% less systems integrator time to deploy than competitive products.

• Novell averages 20%+ less systems integration fees for a comparable provisioning project at companies of all sizes.

• Novell IAM products require an average of 81% less time to generate required audit reports. • Novell IAM products experience an average of 55% less downtime.

• Novell IAM products require a team of business analysts rather than a team of developers to operate and maintain (little direct cost savings, but big qualitative difference).

Recommendations

It is commonly thought that services are a primary driver of total cost of ownership for IAM software. However, it is not common to think of software license as potentially irrelevant to the TCO buying decision. By building a comprehensive TCO model, we can analyze the true cost components of IAM and evaluate differences between market options.

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1. Total cost of ownership can vary significantly between leading products. Don’t assume all leading products will produce the same result. Evaluate your options and think like a CFO. 2. Ease of integration is the most significant factor in differentiating TCO between product

vendors and is realized initially via your consultants and going forward via your team’s ability to continue integrating a large portion of your organization’s critical applications.

Simpler is better.

3. Focus less on licensing and maintenance costs and more on services and operations costs. It’s easy to focus on concrete items like licensing because it is typically a defined figure that is charged as a single fee. However, managing services scope and planning IAM operations in advance of the deployment can significantly reduce TCO.

4. The present value of five years’ product maintenance and operations are, on average, significantly greater than initial license expenses; don’t be lured into switching products based

on an offer of a lower license expense alone. TCO can be more substantially reduced by

choosing a vendor with a lower total services expense than one with lower licensing or maintenance costs.

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A

PPENDIX

1 -

S

CENARIOS

We presented these hypothetical company scenarios to survey and interview respondents to ensure consistency. However, when discussing actual customer deployments for specific company

operations, we discussed real company experiences in real IT environments.

Scenario 1: A Massive organization with over 40,000 staff, global operations, and very complex IT operations with significant dedicated IT staff. These organizations are often Global 1000 companies or state, provincial, or federal governments in the U.S. or Europe.

IT Environment Type Specific Instance

ERP SAP Financials

HR SAP HR

Directory Microsoft Active Directory

Email Lotus Notes

Database Oracle 10g, DB2

Mainframe RACF, zOS

Help Desk Remedy

CRM Siebel

Platforms Windows & Unix

Business Processes User On-boarding User termination Request system access Request access removal Access Recertification Report generation

Scenario 2: A Large organization with over 7,500 staff, national or global operations, and complex IT operations with dedicated IT staff.

ERP SAP Financials

HR PeopleSoft

Email Microsoft Exchange

Database Oracle 10g

Mainframe -

Help Desk Remedy

CRM Salesforce

Platforms Windows & Unix

Business Processes User On-boarding User termination Request system access Request access removal Access Recertification

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Report generation

Scenario 3: A Medium organization with over 2,500 staff, regional, national, or global operations, and a more straightforward IT environment and a dedicated IT staff.

ERP Microsoft Navision

HR PeopleSoft

Email Microsoft Exchange

Database Microsoft SQL Server

Mainframe -

Help Desk Numara

CRM Salesforce

Platforms Windows

Business Processes User On-boarding User termination Request system access Request access removal Access Recertification Report generation

A

PPENDIX

2 –

K

EY

D

ATA

Key data are presented via a summary view of Rencana’s IAM TCO model. Each entry in the model is an aggregate representation of the average of each survey response and interview. Data were gathered, normalized, added to the model. Each cell of the model contains an “average” function in order to reduce errors and to make each response anonymous.

The summary view presented sums the responses specific to user provisioning products and web access management products, which were analyzed individually. At the time of publication, Courion does not sell a web access management product, and thus data and calculations related to Courion are representative of the user-provisioning product only. Our reported statistics and model take this data into account explicitly removing only the web access management portion from the competitive set average.

Seats Discount Rate Entry Server Mid Server High Server Admin $ End User $ Massive 40,000 6% $ 1,000 $ 2,900 $ 8,500 $ 40 $ 25 Large 7,500 8% $ 1,000 $ 2,800 $ 6,500 $ 40 $ 27 Medium 2,500 12% $ 1,000 $ 2,700 $ 5,500 $ 40 $ 30 *Note: When appropriate, Euros have been converted to US Dollars at 1.30 Euros to the USD

Figure 10 Data common throughout model • Admin and End User rates are per hour • Server rates are per server of specified type

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Novell IAM Oracle IAM Competitve Set IAM

Massive Large Medium Massive Large Medium Massive Large Medium 5 Yr TCO w/o User Training $ 5,225,703.96 $ 2,518,732.40 $ 1,677,616.48 $ 6,745,802.22 $ 3,477,426.68 $ 2,137,845.27 $ 6,289,735.15 $ 3,075,955.96 $ 2,023,871.42 5 Yr TCO w/ User Training $ 21,066,973.80 $ 5,726,589.54 $ 2,865,711.72 $ 30,512,468.89 $ 8,290,176.68 $ 3,920,345.27 $ 19,231,401.81 $ 5,674,143.46 $ 2,975,746.42

Massive Large Medium Massive Large Medium Massive Large Medium Licensing $ 1,085,000.00 $ 395,416.67 $ 145,797.62 $ 1,159,375.00 $ 427,187.50 $ 172,187.50 $ 1,231,718.75 $ 358,750.00 $ 139,921.88 Average / user $ 27.13 $ 52.72 $ 58.32 $ 28.98 $ 56.96 $ 68.88 $ 30.79 $ 47.83 $ 55.97 Maintenance $ 231,640.00 $ 84,141.67 $ 30,748.81 $ 231,875.00 $ 85,437.50 $ 34,437.50 $ 253,788.50 $ 72,965.47 $ 28,350.00 Summary First Year $ 1,316,640.00 $ 479,558.33 $ 176,546.43 $ 1,391,250.00 $ 512,625.00 $ 206,625.00 $ 1,485,507.25 $ 431,715.47 $ 168,271.88 Subsequent Years $ 231,640.00 $ 84,141.67 $ 30,748.81 $ 231,875.00 $ 85,437.50 $ 34,437.50 $ 253,788.50 $ 72,965.47 $ 28,350.00 Five Year PV $ 2,119,297.06 $ 758,246.21 $ 269,941.31 $ 2,095,535.38 $ 795,604.84 $ 325,954.57 $ 2,256,351.58 $ 673,386.36 $ 266,507.62

Massive Large Medium Massive Large Medium Massive Large Medium Entry-level servers 9.10 5.25 15.45 10.50 6.50 7.80 $ 3.88 $ 3.25 $ 4.45 Mid-level servers 10.83 9.36 5.50 12.00 8.29 3.33 $ 8.75 $ 5.01 $ 2.25 High-end servers 9.67 - - 9.50 6.00 1.33 $ 5.29 $ 2.17 $ 0.58 Five Year PV $ 122,683.33 $ 31,461.11 $ 30,300.00 $ 126,050.00 $ 68,700.00 $ 24,133.33 $ 31,604.38 $ 17,228.75 $ 6,088.33

Massive Large Medium Massive Large Medium Massive Large Medium Contractor $ 135.35 $ 135.35 $ 135.35 $ 164.17 $ 164.52 $ 165.95 $ 170.63 $ 170.71 $ 171.07 ProServ Firm $ 192.16 $ 192.16 $ 192.16 $ 190.00 $ 190.00 $ 190.00 $ 211.67 $ 211.67 $ 211.67 Vendor Engineer $ 210.94 $ 210.94 $ 210.94 $ 216.67 $ 216.67 $ 216.67 $ 238.54 $ 238.54 $ 238.54 Reported Total Hours 12,460 5,710 4,785 11,232 1,668 2,378 $ 8,908.00 $ 3,416.17 $ 2,934.38 Internal Hours 4,038 2,121 1,686 5,254 2,205 1,373 $ 3,038.50 $ 1,241.25 $ 943.33 Contractors 7,220 3,687 2,939 9,453 4,703 3,667 $ 8,246.67 $ 4,273.79 $ 3,394.17 Engineering 385 99 67 2,130 1,438 188 $ 1,386.25 $ 868.75 $ 174.71 Sum Total 11643 5907 4692 16837 8345 5228 $ 12,671.42 $ 6,383.79 $ 4,512.21 Services Fees $ 1,263,508.73 $ 624,664.09 $ 495,360.32 $ 2,135,527.78 $ 1,145,061.98 $ 693,312.70 $ 1,901,597.22 $ 1,021,730.77 $ 641,935.62

Massive Large Medium Massive Large Medium Massive Large Medium OOTB Adapter

OOTB Adpater Works 46% 46% 46% 75% 75% 75% $ 0.75 $ 0.75 $ 0.75 Total Custom Hours 1665 568 447 2368 1285 645 $ 1,840.63 $ 747.25 $ 496.25 Internal Hours 954 234 49 390 153 123 $ 577.50 $ 198.13 $ 170.63 Contractor Hours 104 104 104 150 150 150 $ 155.04 $ 155.04 $ 155.04 Engineering Hours

Sum Total 1058 340 156 540 303 273 $ 732.54 $ 353.91 $ 327.16 Customizaton Fees 17537 17737 17936 26652 26706 26920 $ 29,304.74 $ 29,499.40 $ 29,734.28

Massive Large Medium Massive Large Medium Massive Large Medium Custom Adapter

Average Custom Req's

Total Custom Hours 1245 820 769 1700 1187 813 $ 1,700.00 $ 1,186.67 $ 813.33 Internal Hours 113 428 38 360 240 193 $ 330.00 $ 240.00 $ 168.33 Contractor Hours 201 201 201 225 225 225 $ 211.25 $ 211.25 $ 211.25 Engineering Hours 41 41 41 94 94 94 $ 93.75 $ 93.75 $ 93.75 Sum Total 356 670 280 679 559 512 $ 635.00 $ 545.00 $ 473.33 Customizaton Fees 42035 42035 42035 56521 56521 56521 $ 54,209.15 $ 54,209.15 $ 54,209.15

Massive Large Medium Massive Large Medium Massive Large Medium # of Admins 3.40 2.63 2.37 4.03 2.90 2.38 $ 3.29 $ 2.50 $ 2.22

Massive Large Medium Massive Large Medium Massive Large Medium Training

End user hours 16 16 16 24 24 24 $ 12.69 $ 12.69 $ 12.69 Administrator hours 156 156 156 213 213 213 $ 165.83 $ 165.83 $ 165.83 Administrators 3 3 2 4 3 2 $ 3.29 $ 2.50 $ 2.22 Total End User 633,651 118,810 39,603 950,667 178,250 59,417 $ 507,666.67 $ 95,187.50 $ 31,729.17 Total Administrator 275 213 191 528 377 290 $ 346.61 $ 265.64 $ 231.98 End user Training $ $ 15,841,270 $ 3,207,857 $ 1,188,095 $ 23,766,667 $ 4,812,750 $ 1,782,500 $ 12,691,666.67 $ 2,570,062.50 $ 951,875.00 Administrator Training $ 10,990 $ 8,506 $ 7,637 $ 21,108 $ 15,086 $ 11,587 $ 13,864.58 $ 10,625.60 $ 9,279.17 Total Training $ 15,852,259 $ 3,216,363 $ 1,195,732 $ 23,787,775 $ 4,827,836 $ 1,794,087 $ 12,705,531.25 $ 2,580,688.10 $ 961,154.17

Massive Large Medium Massive Large Medium Massive Large Medium Downtime

Outage hours / year 24 24 24 41 41 41 $ 35.52 $ 35.52 $ 35.52 Scheduled restarts 10 10 10 12 12 12 $ 8.28 $ 8.28 $ 8.28 % users affected 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% $ 0.00 $ 0.00 $ 0.00 Cost of downtime $ 85,169.95 $ 17,246.91 $ 6,387.75 $ 131,428.57 $ 26,614.29 $ 9,857.14 $ 109,482.14 $ 22,170.13 $ 8,211.16 Five Year PV $ 358,766.81 $ 68,861.93 $ 23,026.40 $ 553,624.95 $ 106,263.13 $ 35,532.79 $ 461,178.61 $ 88,518.92 $ 29,599.40

Massive Large Medium Massive Large Medium Massive Large Medium Upgrades

Contractor Hours 219.22 219.22 219.22 454.00 454.00 454.00 $ 483.50 $ 483.50 $ 483.50 Cost of Upgrades / Patches $ 42,125.54 $ 42,125.54 $ 42,125.54 $ 86,260.00 $ 86,260.00 $ 86,260.00 $ 104,356.67 $ 104,356.67 $ 104,356.67 Five Year PV $ 177,448.11 $ 168,195.08 $ 151,853.15 $ 363,358.50 $ 344,411.17 $ 310,948.00 $ 439,588.24 $ 416,665.91 $ 376,182.43

Massive Large Medium Massive Large Medium Massive Large Medium Audit reports

Hours / year 54.08 54.08 54.08 301.60 301.60 301.60 $ 245.20 $ 245.20 $ 245.20 Cost of Reporting $ 2,163.12 $ 2,163.12 $ 2,163.12 $ 12,064.00 $ 12,064.00 $ 12,064.00 $ 9,808.00 $ 9,808.00 $ 9,808.00 Five Year PV $ 9,111.84 $ 8,636.70 $ 7,797.55 $ 50,817.96 $ 48,168.05 $ 43,488.02 $ 41,314.86 $ 39,160.50 $ 35,355.64

Massive Large Medium Massive Large Medium Massive Large Medium Administrator Salaries $ 1,144,358.83 $ 841,637.93 $ 683,877.54 $ 1,359,189.38 $ 926,308.73 $ 684,907.48 $ 1,108,553.74 $ 797,306.17 $ 639,847.78 Administrator Training $ 10,990 $ 8,506 $ 7,637 $ 21,108 $ 15,086 $ 11,587 $ 13,864.58 $ 10,625.60 $ 9,279.17 Cost of downtime $ 358,766.81 $ 68,861.93 $ 23,026.40 $ 553,624.95 $ 106,263.13 $ 35,532.79 $ 461,178.61 $ 88,518.92 $ 29,599.40 Cost of Upgrades / Patches $ 177,448.11 $ 168,195.08 $ 151,853.15 $ 363,358.50 $ 344,411.17 $ 310,948.00 $ 439,588.24 $ 416,665.91 $ 376,182.43 Cost of Reporting $ 9,111.84 $ 8,636.70 $ 7,797.55 $ 50,817.96 $ 48,168.05 $ 43,488.02 $ 41,314.86 $ 39,160.50 $ 35,355.64 Present Value of 5 Years of Operations Costs $ 1,700,675.11 $ 1,095,837.39 $ 874,191.22 $ 2,348,099.13 $ 1,440,236.79 $ 1,086,462.95 $ 2,064,500.04 $ 1,352,277.09 $ 1,090,264.41

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To discuss this report, please contact: Rencana LLC Steve Curtis Principal 949.385.0513 [email protected]