| Vol. 6, No. 3 : January 21, 2005 |
CIOview eUpdate
Siebel—A Rich Environment For Savings
Designing the optimal server infrastructure for a 500-user Siebel deployment is fairly straightforward. Unfortunately, the same cannot be said for a system to support 10,000 people. Large Siebel projects commonly benefit from the use of partitions, virtualization, capacity on demand, and even clustering. Larger projects also tend to include the complexity of more than one location. Finally, as installations grow, the tendency is to use more specialized Siebel CRM modules.
Each of these factors impact the Total Cost of Ownership (TCO), and ultimately the optimal system design. For example, hardware vendor-specific features such as capacity upgrades without rebooting can save you as much as $1.5 million. Splitting your Siebel application into two separate installations can increase your IT personnel costs by more than $1.8 million. Rolling out a call center as compared to a sales/marketing/analytics application represents a $9.2 million difference. CIOview performed a TCO analysis on each of these scenarios, and the results are graphically presented below. Select any one of the three images below to view a detailed TCO analysis of the Seibel scenario of your choice.
- Siebel Scenario 1: See how a hardware-specific feature, in this case a capacity upgrade, can save you $1 million or more.
- Siebel Scenario 2: View how dividing your Seibel application into two separate installations can produce a sharp escalation of your IT personnel costs.
- Siebel Scenario 3: Understand how how call center rollout costs differ from those for a sales/marketing/analytics application.
Telecommunications and TCO
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The world of telecom has extended greatly beyond the “ring and ding” services that were the sole option for consumers until the 1990s. Unfortunately the creative genius for new services is outpacing the infrastructure of the technology that most telecom providers have. Witness to that are some telecom providers that cannot launch new services because of their inflexible billing software! The challenge for Telecom companies is how to rollout new services, such as unified messaging or web conferencing. These new services must scale and provide the level of reliability required, but not have such enormous upfront costs that they represent an unacceptable financial risk. In addition, Telecom companies have intense competitive pressure to launch new services but cannot take years to weigh the decision.
The price the market is demanding is rapid technical and financial analysis. In our example on the right, see how the cost per subscriber of a unified messaging service in the U.K. changes dramatically as you move to Linux. The ultimate benefit for the IT vendor community is that purchase cycles in the Telecom industry are collapsing, but only when they can generate a comprehensive technical justification similar to this SnapShot analysis in a matter of minutes.
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All contents are Copyright © 2005 CIOview Corp. All rights reserved. Patents pending. CIOview® and ROInow!® are registered trademarks, and TCOnow!™, SecurityNOW!™, Simplifying IT Purchasing™, Business Value Library™, CompareITnow™, Real-Time TCO, and Real-Time ROI™ are trademarks of CIOview Corp. Disclaimer: This information is provided to you as a tool "as is" with the understanding that there are no representations or warranties of any kind either express or implied. CIOview disclaims all warranties including, but not limited to, implied warranties of merchantability or fitness for a particular purpose. More information. |
