Monday, July 24, 2017

Table of Contents

Brief History of HP-UX,
HP 9000 and HP Integrity

Strategic Upgrade Questions

Benefits of New OE and Servers

Customer-Reported Benefits
of HP-UX 11i v3

Two Sides of the TCU Equation

Scenarios Analyzed

HP-UX 11i v3 Upgrade Costs

Potential Oracle Savings

Scenario #1: TCU Discounted
Cash Flow Analysis

Scenario #2: TCU Discounted
Cash Flow Analysis

Scenario #3: TCU Discounted
Cash Flow Analysis

Scenario #4: TCU Discounted
Cash Flow Analysis


Quantifying the Total Cost of Upgrading older HP-UX 11i Environments to HP's New BL8x0c i2 Server Blades

Detailed TCU analyses of the costs and benefits associated with upgrading HP 9000 and older HP Integrity servers to new HP Integrity BL8x0c i2 server blades running HP-UX 11i v3. (November 2010)

Many companies today rely on HP Integrity® and HP 9000® servers running HP-UX® for their mission critical applications. This year HP had two major product announcements that affect the HP-UX 11i community. First, HP introduced new servers based on the Intel® Itanium® 9300 processors: the BL860c i2, BL870c i2, BL890c i2 server blades and the Superdome 2. Second, HP introduced the seventh update to HP-UX 11i v3. Companies that currently use HP 9000 servers or older HP Integrity servers with HP-UX 11i now have the opportunity to upgrade these older servers to the latest server technology and version of HP-UX 11i. This paper examines this upgrade decision from a financial perspective. The analyses are based on system information as well as customer data about the operational characteristics of the servers and operating environments.

One strategic question associated with an upgrade decision concerns the benefits system administrators and users will see after the upgrade. From a software perspective, HP-UX 11i v3 has many benefits over earlier versions of HP-UX 11i. These include enhanced performance, simplified management, improved server virtualization, improved security, reduced system downtime, and lower software licensing and support costs. From a hardware perspective, the new HP BL8x0c i2 blades also have benefits over older Integrity and HP 9000 servers. These include improved performance (about double of previous comparable Integrity server blade models), double the memory capacity, easier ability to combine multiple blades in a single enclosure, and improved reliability, availability, and serviceability (RAS).

The other strategic question concerns the financial payback of the upgrade. This paper includes Total Cost of Upgrade (TCU) analyses for four specific upgrade scenarios. In the analyses, the initial cost of the upgrade (hardware, software, upgraded support, installation, and training) is balanced against ongoing savings in support, management, availability, and energy costs. Customer data from previous surveys were used to quantify management and availability costs. Each upgrade was evaluated on the basis of its three-year Net Present Value (NPV) and Internal Rate of Return (IRR).

All four upgrade scenarios have positive financials that make them attractive decisions. The highest NPV and IRR come from upgrading an HP 9000 rp4440-8 to a HP BL860c i2. This upgrade has a three-year NPV of $273,000 and IRR of 481%. Upgrading an Integrity rx6600 to a HP BL870c i2 has a $50,000 NPV and 78% IRR. The final two scenarios involve upgrading an Integrity rx7640 or rx8640 to a HP BL890c i2. These two upgrades have similar NPV ($174,000 and $191,000) as well as IRR (98% and 94%).

In these challenging times, IT managers undoubtedly face even greater pressure to reduce costs. Those who are managing HP-UX 11i servers more than three years old should seriously consider upgrading to HP's new BL8x0c i2 servers running HP-UX 11i v3. This upgrade can offer a high rate of return and better position a company for future success.

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