1. ForrTel: Outsourcing Your Database Administration? Think Twice Noel Yuhanna Senior Analyst Forrester Research April 11, 2005. Call in at 12:55 p.m. Eastern Time

2. Theme To be successful database administration outsourcing requires careful planning and execution.

3. Agenda What is involved in administrating databases? Why outsource database administration? What are the challenges faced when outsourcing? What tasks can be outsourced? What are the types of outsourcing models? How do you succeed in outsourcing? What is the future of database outsourcing?

4. Role of operational DBA Install, upgrade, and migrations Troubleshooting and corrective actions Space and account management Database monitoring and reporting Performance and tuning Backup and recovery Capacity planning Data load/unload and synchronization Distribution of time License/doc training Install, upgrade, patch, migration Performance/ troubleshoot Scripting coding Security planning Backup rec load/unload 5% 25% 5% 20% 40%

5. Role of application DBA Database design and modeling Application administration Coding — SP, triggers, objects etc New install, upgrade and migrations Backup and recovery Define process and integration Documentation Backup DBA for operational systems Distribution of time Apps admin and DB design Install, upgrade, load Coding and tuning 50% 15% 25% 5% Doc/training Backup and security

6. Database administration challenges Forrester survey: 52 Enterprises with $500 or more in revenue, 2004 Perf/troubleshoot26% Patch/upgrade 21% Change mgt. 14% Planning11% Rep/sync8% Backup/recovery8% Security issues 6% Resource issues 6%

7. Why outsource database administration? To save money Most administration tasks can be managed remotely Databases are becoming a commodity Other infrastructure components are being outsourced Stable environment, with minimal changes Free internal resources for other purposes Get resources that are not available internally

8. What are the outsourcing challenges? Lack of security Poor turnaround time Hidden costs Minimal cost savings Quality of service Lack of depth in troubleshooting Lack of business knowledge Lack of performance metrics Communication issues

9. Do you currently or plan to outsource database administration? Source: 52 enterprises surveyed with $500 or more in revenue, 2004 Yes 15% No 69% Don’t know 16%

10. Have you seen the expected savings from offshoring IT? 43 North American IT and business executives, Jan. 04 37% 28% 19% 2% 7% 0% 20% 40% Too early to tell Have seen the savings that we expected Have seen savings but not what we expected Have not achieved any savings Savings have exceeded our expectations

11. What administration tasks can be outsourced? Administration tasksSuccess rate Patch deploymentHigh, except complex patches* UpgradesModerate, avoid large upgrades* Backup & verificationHigh Space managementHigh DBMS tuningHigh SQL tuningHigh Proactive monitoringHigh DBMS installLow, difficult to perform remotely* Security managementModerate, avoid* Object managementModerate, should be supported internally HA managementHigh, except initial setup DR managementHigh, except initial setup Data load/unloadHigh, can be automated and monitored Database recoveryModerate, depends on complexity of environment* Startup/shutdown DBMSHigh, but depends on DBMS support AuditingHigh * Will change in future

12. Database administration outsourcing model Database Tech Support Remote Admin Location 1 Location 2 Admin DB Agents Users Company A Partial outsourcing

13. Database administration outsourcing model Database tech support Remote admin Data center Users Company A DB Complete outsourcing

14. Top database administration outsourcing vendors Large vendors »IBM »Oracle »EDS Offshore vendors »TCS »Satyam »Wipro Small vendors »DbaDirect »Ntirety »Pythian

15. How to succeed in outsourcing? Before making a decision »Consolidate »Standardize »Formalize »Stabilize »Secure Perform a cost-benefit and impact analysis Choose the right vendor

16. How to select an outsourcing vendor? Operational center — Location, Infrastructure, redundancy Expertise — DBMS, apps, other technology stack layers SLAs — Response time Hidden costs — What is not covered? Administrators located — Geographic locations Security infrastructure — Access to data, VPN Tools used — Agents, frequency Accountability – How handled Formalize — Steps and documented procedures Reports provided — Portals, frequency Support coverage — 24x7 References — Ask for them Communications — Issues, clarity

17. DBA to database ratio Current ratio: »A DBA manages up to 1 TB database collectively »Average 21 databases per DBA Source: Forrester Research

18. Forecast: Database administration challenges 2002200320042005200620072008 Performance & tuning B&R Patch/Upgrade Security 20092010

19. Database administration cost is declining

20. Future of database outsourcing Utility-based model More aggressive pricing More vendors will offer such service Complete stack level integrated focus

21. Recommendations Understand the impact on operations/applications Determine cost benefits Flush out security concerns Understand the vendor’s position Small companies should look at full outsourcing

22. Noel Yuhanna nyuhanna@forrester.com www.forrester.com Thank you Entire contents © 2005 Forrester Research, Inc. All rights reserved.