August 2010
MANAGEMENT BRIEF
VALUE PROPOSITION FOR
IBM
SOFTWARE ACCELERATED VALUE PROGRAM
Quantifying the Cost/Benefit Case
International Technology Group
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International Technology Group i
TABLE OF CONTENTS
EXECUTIVE SUMMARY 1
Quantifying Value 1
Program Coverage 2
Cost and Benefit Patterns 4
Conclusions 5
ABOUT AVP 6
Program Overview 6
AVP Staff 7
AVLs and AVSs 7
Relationships 8
Problem Management 9
Proactive Support 10
New Application Deployment 11
Migration Projects 11
Performance Optimization 11
Availability Optimization 12
Security Exposures 12
Other Services 13
Skills & Practices Development 13
Other Activities 13
DETAILED DATA 15
Basis of Calculations 15
Profile Installations 15
AVP Staff 15
Informational and Other Services 15
Productivity Savings 15
Risk Avoidance Savings 16
Data Tables 18
List of Figures
1. Accelerated Value Program Costs and Benefits: Averages for All Brands 1!
2. Accelerated Value Program Costs and Benefits: Averages by Brand 4!
3. Accelerated Value Program Relative to Other IBM Support Offerings 6!
4. Large AVP Team: Example 8!
5. PMR Severity Ratings 9!
6. Proactive Activities by AVP Teams: Examples 11!
7. Job Categories and Baseline Salary Assumptions for Customer IT Staff 16!
8. Risk Avoidance Calculation Methodologies by Brand 16!
9. Profile Installations: Summary 18!
10. Profile Installations: Returns 22!
Abbreviations used in this report
AVL
Accelerated Value Leader
FTE
Full Time Equivalent
AVP
Accelerated Value Program
IM
Information Management
AVS
Accelerated Value Specialist
IWCS
IBM Workplace for Customer Support
BA
Business Analytics
LUW
Linux, Unix & Windows
DBA
Database administrator
PMR
Problem Management Report
ECM
Enterprise Content Management
RFE
Request for Enhancement
EMEA
Europe, Middle East & Africa
SME
Subject Matter Expert
EOS
Emergency On-site
SWG
IBM Software Group
International Technology Group 1
EXECUTIVE SUMMARY
Quantifying Value
What is the value of an IBM Software Accelerated Value Program (AVP) contract?
The answer depends in large part on another question: What is the value of IBM software products to
organizations that employ them?
Companies and public sector agencies that contributed to this report had often invested hundreds of
millions of dollars in IBM middleware. Hundreds of applications were supported by these products, and
hundreds – in some cases, thousands – of IT staff developed for, administered and maintained
infrastructures built around them.
The effectiveness with which they are used has far-reaching impact. The speed and quality of solution
delivery; efficiency and cost-effectiveness of IT organizations; as well as the stability, reliability and
security of solutions depend, in no small measure, on middleware infrastructures. There are few business
activities that are not affected by the applications these infrastructures support.
Even relatively small improvements in overall effectiveness may thus provide major business benefits.
With IBM Software AVP coverage, improvements may be substantial.
The Accelerated Value Program provides a level of IBM middleware support that is significantly greater
than standard Technical Support arrangements. Staff is dedicated to the customer, proactive as well as
reactive services are provided, and AVP teams coordinate availability of all IBM resources.
The value of AVP coverage is clearly understood by existing customers. Others, however, often find it
difficult to quantify its value. This report is designed to assist them.
The report is based on interviews with customer IT and AVP personnel as well as on detailed
documentation of AVP activities, analyses of problem reporting records, and other input from 56 large
organizations participating in the program. AVP contracts covered IBM Business Analytics (BA),
Enterprise Content Management (ECM), Information Management (IM), Lotus, Rational, Tivoli and/or
WebSphere products.
Four sets of benefits were quantified. Annual returns – meaning total quantified benefits for a single year
relative to AVP contract costs for the same year – averaged between 2.7 and 7.6 times, depending on
brands. The average for all brands was, as figure 1 shows, 5.3 times annual contract costs.
Figure 1
Accelerated Value Program Costs and Benefits: Averages for All Brands
Costs%
Returns%
$%Thousands%
AVP%staff%
Informa7onal%&%other%services%
Produc7vity%savings%
Risk%avoidance%savings%
Contract%cost/year%
269.3
1,435.0
International Technology Group 2
Benefits were calculated as follows:
1. AVP staff benefits costs are for IBM Accelerated Value Leaders (AVLs) and Accelerated Value
Specialists (AVSs) handling support-related tasks that customers would otherwise have had to
deal with directly.
2. Informational and other services benefits are costs for educational, consulting and related
services provided by other IBM personnel under AVP arrangements, for which customers would
otherwise have been obliged to contract and pay for separately.
3. Productivity savings are for time saved by customer developers, administrators and other
specialists dealing with IBM products.
Savings are realized through: (1) proactive AVP activities that avoid or mitigate problems,
accelerate new deployment and migration projects, and enable more effective planning and
scheduling of activities involving IBM products; and (2) reactive AVP activities that enable faster
resolution of issues documented in Problem Management Reports (PMRs).
4. Risk avoidance savings are for reduced frequency and severity, and faster resolution of incidents
resulting in quantifiable business and/or IT costs. Savings are due to AVP proactive and reactive
activities, and are calculated on an application-by-application basis for each installation using
financial and lost end-user productivity values.
Incidents, which vary by brand, variously involve outages, performance bottlenecks, loss or
corruption of data, delays in delivering results of calculations or completing projects, operational
inefficiencies, security violations and others.
The basis of these calculations, along with details of methodology, descriptions of installations, and
breakdowns of costs and benefits by brand and installation may be found in the Detailed Data section of
this report.
Program Coverage
The Accelerated Value Program represents a higher level of coverage than standard IBM Technical
Support provided under Passport Advantage agreements. It involves dedicated procedures, technical
resources and personnel.
There are two main components to the program:
1. Problem Management. Customers that experience problems with IBM software normally
document these in PMRs and initiate contact with the IBM Technical Support organization to
deal with them.
Under the Accelerated Value Program, separate, dedicated teams of AVLs and AVSs monitor
PMR activity for individual customers. They assume responsibility for resolution of these, and
may initiate contacts with Technical Support, escalate problems to IBM Software Group (SWG)
development units and work with IBM specialists and in-house IT staff until a satisfactory
conclusion is reached.
AVP customers typically experienced significant improvements in most or all PMR metrics under
the program. Some organizations reported increases in PMR numbers, severity and time to
resolution if major projects were initiated – although when this occurred, the role of AVP teams
tended to become more significant and more beneficial.
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There was general agreement among organizations that contributed to this report that problems
documented in PMRs affected IT staff productivity. Individual PMR incidents often disrupted the
activities of administrators, developers and/or other specialists.
There were also broader “cascading” effects. Disruptions might affect other activities within IT
organizations, affecting dozens or even hundreds of individuals.
There was a further implication. Problems might cause outages or lead to other negative effects.
Where this occurred, not only would IT staff productivity loss be magnified, but also end users
and business operations might be impacted. Damage could be substantial.
Cascading effects might again occur. In large, complex installations with high levels of
integration, effects of errors may spread rapidly to other software components. Large segments of
IT infrastructures may be affected.
Any significant improvement in PMR metrics thus yielded material benefits. If the amount of
time spent by IT staff dealing with problems was reduced, greater effort could be channeled into
activities that contributed more substantially to functional improvement and IT effectiveness.
“Costs of downtime” and other bottom-line effects would also be mitigated.
2. Proactive support. The second major source of AVP value involves what may be described as
“proactive” activities. These vary between customers, and are agreed on a case-by-case basis.
Activities are documented in an annual delivery plan, updated on a quarterly basis.
Objectives commonly include assisting in strategy development and planning; facilitating
deployment of IBM products in a rapid and trouble-free manner; ensuring optimum performance
and quality of service (including such variables as availability, security and recoverability); and
helping to improve the efficiency and productivity of IT organizations.
Where proactive activities are emphasized, the focus tends to move from problem resolution to
problem avoidance through improved planning; advising management on selection and
deployment of IBM solutions, and on broader IT issues; educating IT staff in use of technologies,
tools and practices which reduce risks of problems and increase IT effectiveness; and other
initiatives described in the About AVP section of this report.
According to organizations that contributed to this report, proactive support provides particular
value in that AVP staff are familiar with customer IT environments, staff and plans. Close
monitoring and analysis of PMR records contributes to this knowledge base.
Equally, AVP teams have close links to SWG executive decision-makers, product managers and
planners and developers. These may be brought into accounts to deal with specific technical
issues, provide briefings and custom education and advise management on IBM plans.
The extent to which AVP teams focused on reactive or proactive issues varied widely. For individual
customers, the range was from “70 percent proactive, 30 percent reactive” to “80 percent reactive, 20
percent proactive.” Variations reflected customer preferences.
The mix of reactive and proactive activities often changed over time. In many cases, program activities
were initially reactive – this was particularly the case where the frequency and severity of PMR incidents
was exceptionally high – but later became more oriented toward proactive goals.
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Cost and Benefit Patterns
Although the general picture was consistent, there were a number of variations in costs and benefits
between brands, which are summarized in figure 2, and individual installations, which are documented in
the Detailed Data section of this report.
Figure 2
Accelerated Value Program Costs and Benefits: Averages by Brand
Variations reflected a number of factors. For example, benefits tended to be higher than the norm in large,
complex installations with multiple IBM products and hundreds, thousands or (in several cases) tens of
thousands of instances of these. At the other end of the spectrum, AVP coverage was also valued by some
smaller organizations with comparatively few IT staff and limited skill bases.
Costs
Benefits
Costs
Benefits
Costs
Benefits
Costs
Benefits
Costs
Benefits
Costs
Benefits
Costs
Benefits
$ Thousands
AVP Staff
Informational & other services
Productivity savings
Risk avoidance savings
Contract cost/year
BUSINESS ANALYTICS
INFORMATION MANAGEMENT
LOTUS
RATIONAL
TIVOLI
WEBSPHERE
1,064.3
168.3
1,841.0
860.2
300.0
320.0
1,573.4
278.3
1,091.2
225.0
2,990.5
391.7
ENTERPRISE CONTENT MANAGEMENT
624.2
201.7
International Technology Group 5
In installations of all types and sizes, benefits were also typically higher when organizations were
engaged in major new application deployments, migrations (including upgrades to new IBM product
versions and releases) and other major IT changes. Examples of these included consolidation and shared
services initiatives, and restructuring of IT infrastructures following mergers or acquisitions.
While these initiatives were under way, the role of AVP teams could be critical in preventing and
resolving problems. Program activities were typically aligned with customer plans and schedules, and
AVP teams often played a valuable role in ensuring that appropriate IBM resources were available at the
right time to assist in planning, implementation, testing and quality assurance.
There was also general agreement that critical situations were dealt with more effectively under AVP than
under Technical Support arrangements. AVP contracts often included a given number of Emergency
Onsite (EOS) days, for which IBM makes best efforts to put a suitably skilled team on customer premises
within 24 hours. Problems could also be rapidly escalated to SWG specialist units.
Conclusions
In its initial form, the Accelerated Value Program (originally known as Premium Support) focused
primarily on improving the quality of reactive support provided to IBM middleware users. Problem
management is still an important component of coverage. The program’s evolution to include proactive
activities, however, reflects changing demands.
The trend is industry-wide. Organizations that have invested heavily in a vendor’s products have
increasingly sought relationships that extend beyond traditional forms of support. While concerned to
retain their independence, they have recognized that delivery of value may be materially enhanced if
vendor resources are more effectively engaged, and aligned more closely with those of in-house IT staff.
Like other vendors, IBM has always maintained “special relationships” with their most important
customers. The Accelerated Value Program, however, provides a degree of structure and operational
focus to such relationships that has often been lacking in the past.
In contrast to Technical Support, which is ad hoc and reactive in nature, and professional services
engagements, which are typically project-focused and of limited duration, AVP relationships offer greater
continuity in staff, procedures and customer knowledge. This continuity was repeatedly cited as a key
advantage of participating in the program.
Finally, the Accelerated Value Program reflects another broad industry trend. At a time of economic
pressures and budgetary constraints, a growing number of organizations are demanding that the benefits
of support should be quantifiable.
As the calculations presented in this report indicate, this is clearly the case for the Accelerated Value
Program. Returns of 2.7 to 7.6 times within a year are among the highest that can be obtained by any form
of IT investment.
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ABOUT AVP
Program Overview
The Accelerated Value Program is designed for users of major IBM Software Group products who
require a higher level of assistance than is available from the company’s Technical Support organization.
Technical Support is provided under Subscription and Support arrangements, and under specialized IBM
System z (SoftwareXcel, Program Services) and Power Systems (Software Maintenance) arrangements.
This description applies to the U.S. Support structures and may vary in other countries.
The role of AVP coverage relative to other IBM support offerings is depicted by the company as shown
in figure 3. This Custom Support involves specialized arrangements that typically focus on highly
business-critical environments.
Figure 3
Accelerated Value Program Relative to Other IBM Support Offerings
The Accelerated Value Program is operated by SWG, which is responsible for the major IBM middleware
brands and for other IBM software solutions. SWG operates more than 70 software development
laboratories worldwide, and employs more than 23,000 developers. The program is closely aligned with
SWG development, product management and planning groups.
AVP services are provided through separate contracts. In most cases, these are renewed annually and cost
between $50,000 and $1,000,000. Some customers, however, have opted for discounted multi-year
contracts, and this approach has become increasingly common.
Contracts may cover the products of one or more SWG brands, and may be national, regional – e.g.,
covering IBM North America, Europe, Middle East and Africa (EMEA), Asia/Pacific or Latin America
geographies, or combinations of these – or global in nature.
SELF-HELP SERVICES
STANDARD SUPPORT
Subscription & Support
Software Maintenance
SoftwareXcel • Program Services
ACCELERATED
VALUE
PROGRAM
CUSTOM
SUPPORT
International Technology Group 7
AVP Staff
AVLs and AVSs
Most AVP activities are conducted by AVLs and AVSs. These may be assigned on a full-time basis, or
may divide their time between multiple accounts (typically two to five), depending on customer
requirements and on how much customers are prepared to pay.
Customers may thus be assigned, for example, a 0.5 full time equivalent (FTE) AVL and a 0.33 FTE AVS.
The highest levels of coverage involve full-time on-site staff.
The roles of AVLs and AVSs are typically as follows:
• AVLs act as the primary customer interface to IBM on support-related issues. They also
coordinate contacts with the IBM Technical Support and SWG organizations, and with IBM
developers and other subject matter experts (SMEs) who may be brought in to assist customers.
(In IBM nomenclature, an SME is a technical specialist, such as a developer or consultant, who
has extensive experience with a specific product or products. SME are required to undergo
specialized training and to pass certification examinations.)
Additional AVL responsibilities include providing customer briefings on IBM software
directions, organizing events to meet informational requirements, and reporting on the status of
PMRs and AVP activities.
• AVSs have a more technical focus. They have primary responsibility for problem management
(including dealing with PMRs, collection and analysis of diagnostic information, providing fixes
and workarounds and related tasks), as well as product configuration and deployment, and other
tactically oriented tasks.
AVSs deal with a set of named callers within customer IT organizations. There are typically 5 to
50 named callers, although larger organizations with AVP contracts covering multiple brands
may have significantly more. Named callers may channel requests and queries from larger
populations of IT professionals.
In principle, AVLs deal with management and emphasize proactive activities, while AVSs deal with
technical specialists and handle more reactive tasks. In practice, however, AVL and AVS tasks often
overlap, and are shared. In smaller AVP accounts, single individuals may act as both. In this, as in other
areas, arrangements tend to be flexible.
AVP contracts typically specify that AVLs and/or AVSs will spend a given number of days (On-site
Days) per year at customer premises. Numbers are agreed on a case-by-case basis, and may involve AVP-
related reporting, technical briefings, custom education or consulting, and/or other activities.
Among organizations that contributed to this report, some smaller installations reported that no On-site
Days were specified in contracts, and the remainder reported between 2 and 100. Numbers varied widely
between brands and individual customers.
The term Field Support Services (FSS) Days is employed by the Lotus brand for comparable activities.
In most cases, AVLs and AVSs specialize in particular brands or products within brands. In large
organizations, AVP teams may include dozens of individuals. Figure 4 shows an example.
Under global contracts, a lead AVL may be assigned to coordinate AVP activities on a worldwide basis.
For example, one Lotus global customer was served by a 0.5 FTE AVL who acted as global lead and
managed AVP activities for North America.
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Figure 4
Large AVP Team: Example
Brand
Product
AVL
AVS
Business Analytics
Cognos 8, TM1, Series 7
0.12
0.1
Enterprise Content
Management
Content Manager
FileNet
1.0
1.0
–
–
Information Management
Balanced Warehouse
DB2 LUW & tools
InfoSphere
Informix
0.1
0.33
–
0.33
–
0.5
0.33
0.33
Lotus
Notes/Domino, Connections, iNotes, Quickr,
Sametime
0.33
–
Rational
ClearCase, ClearQuest, Rational Application
Developer, Software Architect
–
1.0
Tivoli
Monitoring, Service Provider & Automation
Maximo
1.0
1.0
0.53
1.0
WebSphere
Application Server
Application Server for z/OS
Business Integration
DataPower
MQ
Transformation Extender
0.5
–
0.5
–
0.5
–
0.5
1.0
1.0
0.33
1.0
0.33
Totals
4.71
7.95
Other AVP personnel assigned to the account included a 0.5 FTE AVL for the IBM EMEA geography, a
0.33 FTE AVL for the Asia/Pacific region, two 0.1 AVLs supporting the company’s operations in Latin
America, and a 0.5 FTE AVS supporting multiple geographies.
Among some larger customers, AVLs and AVSs participated in cross-brand initiatives. One organization,
for example, had three initiatives under way in which AVP personnel representing IM and WebSphere
brands were cooperating. In a second IBM, IM, Tivoli and WebSphere specialists were participating in a
major deployment project. Others reported similar experiences.
AVP customers at the highest level are also assigned the services of an SWG Executive Sponsor.
Relationships
The closeness of relationships with AVP personnel was cited as a major source of value. AVLs, AVSs or
both were typically in contact with customers at least once a week, spent a great deal of time on-site, and
interfaced with IT staff through a variety of events and activities. In some cases, AVP staff was on-site on
a full-time basis.
One result was that AVLs and AVSs became highly familiar with customer environments and IT
organizations, and with the challenges faced by the latter. Relationships were reinforced by the fact that
personnel had often been working with the same customers for multi-year periods, and had often
demonstrated a willingness to (to quote one respondent) “go the extra mile.”
Anecdotes about AVP staff undertaking activities not called for by contracts, and being available outside
normal business hours and during weekends were common. For example, one AVP team had “worked
overtime” to help prepare management for a critical internal meeting. Another made itself available on a
24x7 basis during the critical phases of a migration project. Others reported similar experiences.
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Problem Management
A large part of AVP activity typically involves reactive support, primarily in response to PMRs opened
by customers experiencing a software problem.
AVP customers enjoy priority handling for calls to the IBM Technical Support organization. In addition,
PMRs are monitored by AVP teams, and named callers may involve them in problem diagnosis and
resolution. AVP teams may accelerate IBM Technical Support response, escalate problem resolution to
SWG development, and if necessary engage other IBM groups.
AVP teams then track the status of IBM response, and may intervene if delays or complications occur.
Teams also commonly coordinate IBM and customer teams working to resolve problems.
Overall numbers of PMRs vary. Among the organizations that contributed to this report, numbers of
PMRs per year ranged from 18 to more than 1,000. Numbers tended to increase when organizations were
engaged in major deployments and migrations.
Overall numbers are not, however, necessarily indicative of the difficulties caused by problems
documented in PMRs. Severity 1 PMRs, for example, are comparatively rare, but typically involve
outages affecting critical systems. Severity 2 incidents, which involve serious impairment of application
functionality, might also result in significant business disruption.
IBM severity ratings are summarized in figure 5.
Figure 5
PMR Severity Ratings
LEVEL
DESCRIPTION
1. Critical business impact
Unable to use program, resulting in a critical
impact on operations.
2. Significant business impact
Program is usable, but is severely limited.
3. Some business impact
Program is usable, but less significant features
(not critical to operations) are unavailable.
4. Minimal business impact
Problem causes little impact on operations, or a
reasonable circumvention has been implemented.
Once customer noted that, while the ability of AVP teams to reduce time to resolution was useful for most
types of PMR, it was particularly valuable for Severity 1 and 2 incidents. The “80:20” rule was said to
apply: “20 percent of the PMRs cause 80 percent of the damage.” There was general agreement that AVP
coverage restricted the effects of such incidents.
AVP teams were also reported to have realized broader improvements in PMR metrics. Several customers
reported that numbers and average severity of PMRs had declined steadily over multi-year periods. In
another case, a company that had signed up for AVP coverage reported that its backlog of unresolved
problems decreased by 58 percent in one year.
AVP teams also collect and analyze extensive statistics on the nature, frequency, severity and status of
PMRs (e.g., whether they have been mitigated or resolved, or when this is expected to occur). Details are
communicated to customers through a number of vehicles, which may include weekly, bi-weekly or
monthly teleconferences, e-mail alerts and/or on-site meetings. PMR activity and status are also
summarized in quarterly and annual reports, and presentations by AVP staff.
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Proactive Support
Proactive support covers a broad spectrum of activities that are not tied to resolution of specific problems
documented in PMRs. These included recommending actions to accelerate deployment, assisting with
migrations, providing technical guidance on critical projects, and advising on best practices to ensure
optimal performance and quality of service for customer software infrastructures.
Actions commonly included arranging briefings by IBM SMEs on tools, technologies and practices that
should be applied, educating IT staff and providing appropriate (in some cases, customized)
documentation on these. AVP and other IBM specialists also assisted in implementation.
AVP customers also benefited from earlier and more comprehensive notifications about potential
problems than Technical Support customers. Critical Situation Flash Alerts, access to draft Technotes and
actions by AVP teams ensured that customers were informed in “real time” about potential difficulties.
Organizations were also alerted to problems that have been encountered by other AVP customers.
At the high end of the spectrum, AVP teams often participated in customer planning, governance and in
project management structures. In one organization, for example:
The AVP team (was) heavily involved in multiple war rooms to resolve outstanding
problems and prevent future ones. (The team) provided onsite support, coordination
across all IBM resources, and analysis and resolution of problems, along with
recommendations on efficiency and productivity improvement, risk avoidance and other
subjects. (The team) also participated in major project kickoff meetings, providing
guidance on system designs, technical questions and deployment best practices.
AVP teams also assisted planning by arranging for briefings on IBM product directions, supplying
advance information on forthcoming products and versions, and providing other SWG input.
AVP teams commonly work to align customer initiatives with IBM product cycles, ensuring that
allowance is made for timing of version upgrades and enhancements. Teams also tracked and alerted
customers about upcoming end of service dates, and assisted in developing plans to deal with these. In
some cases, they were able to obtain extensions of IBM support.
The significance of end of service dates was noted by several customers. Users often employed multiple
versions of multiple products – one organization, for example, employed more than 40 different Tivoli
and WebSphere products and versions. Keeping track of and preparing for end of service deadlines were
often onerous tasks. AVP teams could provide highly useful assistance in this area.
A variety of other proactive activities were reported. Figure 6 shows examples from multiple AVP
WebSphere customers. The picture was similar for other brands.
In some cases, AVP teams assisted in preparing Requests for Enhancement (RFEs) and in presenting
these to SWG development organizations. RFEs are requests that IBM incorporate specific new
functionality in future software releases.
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Figure 6
Proactive Activities by AVP Teams: Examples
New Application Deployment
(AVP team) organized IBM task force, including lab scripting expert, product architects/developers, WebSphere
SWAT team & multiple IBM support teams. Engaged with client on-site for review of current segmentation &
infrastructure; analysis of deployment processes; assessment of rollout plan & schedule.
Recommended actions to accelerate deployment; best practices on core groups, bridging, ODR rules & traffic
routing; provided fixes to address potential failover issues; assisted in automation & scripting; tested
configurations & resolved performance bottlenecks. Made recommendations on overall WebSphere Extended
Deployment (XD) architecture for improving stability.
Provided technical guidance & advice for critical system project built on WebSphere Message Broker (WMB) & XD
infrastructure. Addressed problem management, troubleshooting & development & test issues.
Coordinated & led on-site participation by IBM WebSphere Application Server (WAS), WebSphere Transformation
Extender (WTX) & other WebSphere development teams during major application deployment. Identified &
resolved issues potentially affecting stability, performance & availability. No post-production issues were
experienced.
Migration Projects
Assisted customer in developing a comprehensive migration plan, including documenting which environments
required migration, & which products would need upgrading; assisted in developing key migration strategies.
Provided best practices & 24x7 problem resolution during migration from WAS v5 to v6.1. Coordinated IBM teams
supporting migration.
Coordinated IBM development & operational teams to assist planning, implementation & testing for WAS v5.1 to
WAS v6.1 migration. All applications were successfully migrated according to scheduled. No post-production
issues were experienced.
Facilitated WAS 7.0 & WebSphere MQ (WMQ) 7.0 migration – researched features of WAS V7 relevant to customer
requirements; created custom presentations; provided education to multiple development & operations teams.
Also researched specific aspects of WMQ that could result in migration problems; worked with customer to
develop migration proof of concept.
Coordinated multiple teams from IBM development, L2 & L3 support & other groups to prepare for & support
migration from WebSphere Message Broker (WMB) 6.0 to 6.1.
Performance Optimization
Identified limitation in core groups that could prevent WAS application scaling to handle large user population.
Engaged IBM architects to understand client environment & provide configuration recommendations.
Researched known WMB issues that might affect performance. Introduced IBM performance management
specialists; recommended practices to improve & maintain performance.
Engaged IBM SMEs to review customer implementation of WebSphere Transformation Extender (WTX) & respond
to performance shortfalls. Recommended areas of improvement that significantly improved system performance.
Also eliminated crashes affecting WMB & WTX applications.
Worked with customer teams to develop best practices for WAS & MQ pre-production performance tuning & stress
testing, avoiding potential production outages for new application deployments.
Mentored customer staff on use of XML feature pack with WAS v7 to increase XML performance.
Provided best practices for WAS configuration to connect with WMQ. Improved application performance for high-
volume workloads.
Worked with customer to develop model to analyze code & tune performance for new applications. (Also advised)
on use of code analysis tool to identify & correct potential performance bottlenecks.
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Figure 6 (continued)
Proactive Activities by AVP Teams: Examples
Availability Optimization
Led effort to resolve issue that disrupted critical system production. Performed extensive system analysis, &
coordinated testing by customer & IBM staff. Recommended & assisted in implementation of solution.
Provided extensive guidance & expertise allowing immediate resolution of a critical system outage disrupting
operations. Engaged WMQ SME to organize planning to prevent future outages.
Led effort to resolve problem causing application instability & hangs. Conducted research on potential causes,
analyzed performance data & settings, involved IBM SMEs, & coordinated testing by customer & IBM teams.
Resolved problem causing outage without initiating a PMR. Reduced application downtime by several days.
Involved IBM Lab team to work with customer to resolve errors disabling a key WMB application. Reduced time to
resolution, minimizing business impact.
Responded to WAS server hang. Analysis indicated resource contention on physical server. Resolved issue &
provided a best practice to prevent recurrence
Corrected MQ object process damaged during operating system upgrade. Also helped provide customized
recovery documentation in case of recurrence.
Provided instructions to prevent configuration errors causing outages to strategic MQ-based operational system.
Prevented further outages.
Analyzed downtime & concluded that problems could be resolved by upgrading to a different version of MQ
containing critical fixes. Assisted in upgrade.
Performed in-depth research on a bug affecting a key payments application. Provided information on the
symptoms & verification of the bug, & its subsequent resolution.
Prevented MQ outages by providing information regarding a critical WMQ security flash related to an overflow on
unsecured WMQ client connections.
Security Exposures
Reviewed all WAS, XD, Portal & MQ security advisories on an ongoing basis, & alerted customer to potential
security vulnerabilities. In one case, customer was prompted to request an ifix to address possible exposure.
Informed customer when a known security risk for WAS & MQ was detected. Provided immediate assistance to
apply a fix, & escalated to IBM security team to deal with unexpected difficulties when these emerged. Ensured fix
download availability for all deployed production versions.
Responded immediately to customer MQ team concerns about security exposures via third-party network
interface. Identified potential exposures, & provided custom documentation on security configuration to prevent
future problems.
Researched WMQ 6.0.2.3 & RHEL 5.3 & concluded that these versions are unsupported which could have created a
possible security exposure. Alerted customer accordingly.
Developed xml firewall examples for use in future application development scenarios. WMQ security flash related
to an overflow on unsecured WMQ client connections.
International Technology Group 13
Figure 6 (continued)
Proactive Activities by AVP Teams: Examples
Other Services
Other AVP services include the following:
• Emergency Onsite (EOS) days involve commitments by IBM to “dispatch within 24 hours to (a
customer’s site) a suitably skilled team to perform to perform diagnostic work on a critical
Severity 1 incident.”
Skills & Practices Development
Advised customer on performance tuning for automatic business processes in WebSphere Process Server (WPS)
v6.1 with DB2 as supporting database. Shared relevant documentation & introduced IBM SMEs. Briefed customer
team on common performance bottlenecks for long running processes & recommended use of a procedure critical
for WPS connections to DB2.
Advised customer on strategic approaches to interface WPS & WebSphere Enterprise Service Bus (WESB) to
Tuxedo, facilitating migration from Tuxedo v8 to v9. Provided in-depth review of available connectivity options.
Introduced IBM SMEs to provide requested education on WebSphere SAP Adapter & DataPower use cases & system
architecture/environment. Topics included automated backups of configuration data, security assessment
questions, application of fixes & others.
Other Activities
Submitted 5+ specific requests to IBM labs for changes/fixes that would provide value to customer.
Educated customer on current IBM investment; assisted in developing plans to improve AVP support within under
current contract; researched options for access by foreign employees to priority call handling; extended access to
priority call handling by employees outside the US.
Researched optimum combination of WebSphere Virtual Enterprise & IBM Tivoli Composite Application Manager
(ITCAM). Teamed with IBM lab advocate to schedule meetings across multiple IBM development teams. Arranged
for IBM development to test configurations.
Worked closely with customer development team & created proof of concept for usage of HTTP Bindings showing
how to configure adapter settings and code applications for major deployment. Provided ongoing assistance &
support during deployment.
Engaged with customer on issues surrounding WebSphere Time Manager that had brought a deployment project
to a standstill. Determined that the technology adopted does not support Time Manager & recommended
alternative solution. Created custom documentation for this solution.
Provided customer with advance information on planned new version of WebSphere Portal.
Researched installation & configuration of WAS with Chinese language support. Introduced IBM SME & arranged
direct discussion with developers.
Created 15+ customized documentation articles providing guidance on risk avoidance, system usage, skill
requirements & project options. Documents enable customer IT teams to triage, troubleshoot & mitigate problems
before they arise.
Provided customized reference documents dealing with WMB accounting & statistics, application code re-use,
disaster recovery failover, dynamic WTX assignment, problem reporting & other topics.
Delivered sample scripts defining automated backup & restore processes for WMB environment.
International Technology Group 14
Most AVP agreements allow for one to four EOS per year, although contracts with some larger
AVP customers involve more. Global AVP contracts with two organizations that contributed to
this report allowed for unlimited EOS days.
• Special events include IBM AVP Summits, which are organized by individual brands for AVP
customers only. Participants typically include SWG executives, senior development specialists
and other IBM professionals. Roadshows may also be provided.
Customer-specific briefings may also be organized at AVP Summits, national brand conferences
(e.g., IBM Cognos Forum, Information on Demand, Lotusphere, Rational Software Conference,
Tivoli PULSE and multiple WebSphere conferences) and other venues.
• Educational services include briefings, teleconferences, Webcasts, training classes and other
events whose content is customized or developed uniquely to reflect the interests of AVP
customers. These may be provided by AVP staff, IBM SMEs and/or other IBM specialists.
Educational events may be arranged in response to customer requests, or may be scheduled by
AVP teams; e.g., to brief staff on new product capabilities, or to prevent recurrence of problems
documented in PMRs.
Named callers identified in AVP contracts also receive one voucher for IBM Professional
Certification Program courses for each contract year.
• Online services include IBM Workplace for Customer Support (IWCS), an SWG portal available
only to AVP customers. This provides unique content on software problems and fixes, as well as
advanced search and analysis capabilities enabling in-house IT staff as well as AVP teams to
review the customer’s PMR records in detail. IWCS will be replaced with IBM Support
Portal in 2010.
Customers may also participate in and interact with peers and IBM personnel through AVP
discussion groups.
This list should not be regarded as exhaustive. A key characteristic of AVP coverage is that activities are
structured in a flexible manner in response to varying customer requirements.
International Technology Group 15
DETAILED DATA
Basis of Calculations
Profile Installations
The costs and returns presented in this report are for 18 profile installations – three for each SWG brand –
of large financial services, government, insurance, manufacturing, retail and IT services organizations.
Profile installations were constructed using data on contract coverage, deliverables and costs; FTE
numbers and activities of AVP teams and other IBM personnel introduced into customer accounts under
AVP arrangements; applications, middleware stacks and FTE staffing; PMR demographics; and other
variables for 56 AVP customers employing the products of one or more SWG brands.
A composite approach was employed; e.g., data from two large manufacturing companies with generally
similar business profiles, IT environments and AVP contracts, employing the same set of IBM software
products, was combined to create a single company profile. This approach was adopted because of
limitations in data available for individual customers, and for reasons of confidentiality.
Costs are based on reported AVP annual contract values, while benefits were calculated as follows.
AVP Staff
Calculations were based on numbers of FTE AVP personnel (e.g., 0.66 FTE AVL, 1.0 FTE AVS), using
representative annual average salaries. Salaries were increased by 48.3 percent to allow for benefits and
other personnel costs. Salary and benefits assumptions were developed independently of IBM.
Informational and Other Services
Benefits were calculated based on reported AVP activities undertaken for customers. Calculations include
EOS days, as well as educational and consulting activities provided by IBM personnel other than AVLs
and AVSs, which customers would otherwise have been obliged to contract and pay for separately.
In the case of EOS days, costs were calculated for used days only; e.g., if a customer had contracted for
five EOS days but used only two of these during the contract period, calculations were based on two days
of services.
Costs of educational activities were calculated based on applicable IBM rates for custom education,
Allowance was also made, on the same basis, for events such as AVP Summits and Roadshows provided
at no extra charge. Consulting costs were based on IBM hourly professional services rates. Appropriate
volume discounts were applied to both.
Productivity Savings
Benefits were calculated for all profile installations based on three sets of values:
1. Numbers of FTE customer IT staff (including developers, administrators, and other types of
specialist as appropriate) engaged in developing for and/or supporting BA, ECM, IM, Lotus,
Rational, Tivoli or WebSphere software covered by AVP contracts.
2. Numbers of FTE customer IT staff freed up for other work by improvements in PMR resolution
time and proactive actions resulting from AVP activities.
International Technology Group 16
FTE numbers were determined by International Technology Group (ITG) analysis of overall
customer IT staffing for IBM software products covered by AVP contracts, and of AVP records
for the companies upon which profile installations were based.
3. FTE staff savings were calculated using the job categories and baseline average annual salaries
shown in figure 7.
Figure 7
Job Categories and Baseline Salary Assumptions for Customer IT Staff
BRAND
JOB CATEGORY
SALARY
Business Analytics
Developer
$85,841
Enterprise Content Management
Developer
Administrator
$87,672
$79,014
Information Management
Mainframe DB2 DBA
DB2 Linux, Unix & Windows (LUW) DBA
DB2 application developer
$96,325
$92,886
$89,983
Lotus
Developer
Administrator
$84,138
$75,960
Rational
Project leader
Senior developer
Developer
$125,945
$109,291
$95,754
Tivoli
Security specialist
System management specialist
$98,798
$92,012
WebSphere
WebSphere high-level developer
WebSphere Portal developer
WebSphere developer
WebSphere administrator
$102,376
$98,698
$89,745
$85,868
Baseline annual salaries were calculated based on averages for job categories reported by salary
specialists, job posting Web sites and other sources.
Salaries adjusted to reflect prevailing industry-specific levels (e.g., salaries for customer IT staff
in financial services companies were increased by 7.8 percent). Salaries were again increased by
48.3 percent to allow for benefits and other personnel cost items.
Productivity savings were then calculated as follows:
Number of FTE customer IT staff freed up for other work x annual average compensation
including salaries, benefits and other items.
Risk Avoidance Savings
Risk avoidance calculations were conducted using three primary methodologies, which varied by brand as
shown in figure 8.
Figure 8
Risk Avoidance Calculation Methodologies by Brand
METHODOLOGY
BA
ECM
IM
Lotus
Rational
Tivoli
WebSphere
Costs of downtime
(end user productivity loss)
X
X
X
X
–
X
X
Costs of downtime
(business calculation)
–
X
X
–
–
X
X
Project impairment
(developer productivity loss)
–
–
–
–
X
–
–
International Technology Group 17
Costs of downtime were calculated based on estimates of reduced downtime under AVP arrangements for
problems caused by outages (typically corresponding to the IBM PMR classification of Severity 1) and,
in some cases, by severe impairment of application functionality (typically corresponding to Severity 2).
Examples of such estimates are that time to resolution for a specific problem would have been six hours if
IBM Technical Support only was employed, and two hours if AVP procedures were activated (i.e.,
downtime was reduced by four hours); and that time to resolution for a different problem would have
been 12 and 5 days respectively (i.e., downtime was reduced by 168 hours – the application in question
operated on a 24x7 basis).
Estimates were based on analysis of PMR records over a 12-month period for organizations that
contributed to this report and on customer input, industry experiences and values developed by the
authors of this report.
Two types of costs of downtime calculation were developed:
1. End-user productivity loss. Numbers of hours of downtime were multiplied by numbers of end
users affected, and by an application-specific value (typically 0.05 to 0.3) for reduced end-user
productivity while the application was unavailable or severely impaired. Allowance was also
made for the percent of users who would normally be active during this period.
The resulting value for total hours or days of lost end user productivity was then multiplied by
average end-user cost per hour based on average compensation (salary, bonus, benefits and other
items as appropriate) divided by numbers of hours worked per year.
Average compensation was calculated based on industry data for occupational categories (e.g.,
managers, executives, professionals, front-line employees, administrative employees, customer
service personnel) and industries (e.g., financial services, manufacturing, government).
An example of a lost end-user productivity calculation – in this case for an outage affecting a
Lotus Domino e-mail server – was as follows:
Six hours reduced downtime/impairment x 500 users (the average number of users
per server in this installation) x 0.75 active x 0.3 reduced productivity for x $53.17
average compensation per hour = $35,890.
2. Business calculation. Numbers of hours of downtime were multiplied by application-specific
business values for specific applications.
For example, for a retail Web site supported by DB2, calculations were based on average
numbers of visitors per hour, and average sales per visit. Using industry values, allowance was
made for lost sales that could be expected if visitors were unable to obtain information, place
orders or perform other tasks online; e.g., three percent of frustrated visitors would decide not to
purchase or purchase from another supplier.
In a number of installations, IM, Tivoli and/or WebSphere applications supported supply chain,
logistics and distribution operations. In these cases, hours of downtime were multiplied by
organization-specific values for average cost of supply chain disruption per hour. Industry and
ITG-developed metrics were employed to calculate these values.
Comparable organization-specific calculations were conducted for business intelligence, case
management, customer service, directory, financial, funds transfer, human resources,
infrastructure, marketing and sales, policy management, procurement, research, security,
transaction processing and other applications.
International Technology Group 18
A different methodology was employed to quantify Rational risk avoidance savings. As AVP contracts
cover Rational tools rather than applications developed with them, costs of downtime approaches were
inappropriate. Calculations were instead based on developer productivity loss.
For each Rational installation profile, estimates were made of the amount of time lost by development
teams due to delays caused by problems documented in PMRs if (1) IBM Technical Support and (2) AVP
support were employed. Estimates were based on analysis of detailed PMR records, customer
experiences, and industry and ITG-developed application development productivity norms.
Allowance was also made for the effects of proactive actions undertaken by AVP teams.
An example of this methodology is that a Rational development project was delayed by 60 person-days or
20 person-days if IBM standard support and AVP support respectively were employed. The lost
developer productivity calculation was as follows:
60 - 20 = 40 person days x cost per person day (based on annual salary plus benefits and
other personnel costs divided by 200 working days per year)
Calculations were for teams composed of project leaders, senior developers and developers. Average
annual salaries for these are shown in figure 7. Salaries were adjusted using the same industry values as
for productivity savings, and were again increased by 48.3 percent to allow for benefits and other
personnel cost items.
Data Tables
Profile installations, including contract costs, are summarized in figure 9. Benefits are summarized in
figure 10.
Figure 9
Profile Installations: Summary
BUSINESS ANALYTICS%
INDUSTRY
Financial Services
IT Services
Pharmaceuticals
Organization
Diversified retail bank
$100+ billion sales
$1,000+ billion assets
5,000+ branches
200,000+ employees
Diversified IT systems &
services company
$20+ billion sales
$200+ locations
100,000+ employees
Pharmaceuticals
manufacturer
$10+ billion sales
10+ manufacturing sites
20,000+ employees
Products covered
Cognos 8, TM1, Series 7
Cognos 8, TM1, Series 7
Cognos 8, TM1, Series 7
AVP FTEs
0.5 AVL, 0.3 AVS
0.5 AVL
0.2 AVL
Named callers
30
10
20
Contracted days
2 AVL onsite days
2 AVL onsite days
2 AVL onsite days
Contract cost/year
$225,000
$150,000
$130,000
International Technology Group 19
Figure 9 (continued)
Profile Installations: Summary
ENTERPRISE CONTENT MANAGEMENT
INDUSTRY
Insurance
Financial Services
Distribution
Organization
Diversified life insurer
$25+ billion sales
$500 billion assets
30,000+ employees
5,000+ agents
Diversified banking &
financial services company
$5 billion sales
$100 billion assets
15,000 employees
Automotive distribution &
services company
$10 billion sales
10+ manufacturing sites
5,000 employees
Products covered
Content Manager,
CommonStore for Lotus
Domino, InfoSphere
eDiscovery Manager
FileNet P8 Application
Engine, Business Process
Framework, Business
Process Manager, Process
Analyzer, Process Engine,
Process Simulator
FileNet P8 Business
Process Framework,
Content Manager, Business
Process Manager, Content
Manager, eForms, Process
Analyzer
AVP FTEs
1.0 AVL/AVS
0.15 AVL, 0.2 AVS
0.25 AVL/AVS
Named callers
12
5
5
Contracted days
2 AVL/AVS onsite days
5 AVL onsite days
2 AVL onsite days
Contract cost/year
$400,000
$125,000
$80,000
INFORMATION MANAGEMENT%
INDUSTRY
Financial Services
Retail
Insurance
Organization
Diversified retail bank
$100+ billion sales
$1,000+ billion assets
5,000+ branches
200,000+ employees
Specialty retailer
$45+ billion sales
2,000+ stores
50+ distribution centers
200,000+ employees
Life insurance, annuities &
other financial services
$20+ billion sales
$200+ billion assets
20,000+ employees
Products covered
DB2 for z/OS, DB2 for LUW,
BCU, InfoSphere
DB2 for LUW, InfoSphere
DB2 for z/OS, DB2 for LUW
AVP FTEs
0.45 AVL, 0.85 AVS
0.2 AVL, 0.33 AVS
0.6 AVL/AVS
Named callers
30
20
15
Contracted days
18 AVL/AVS on-site days
9 EOS days
10 AVL/AVS on-site days
1 EOS day
8 AVL/AVS onsite days
2 EOS days
Contract cost/year
$500,000
$225,000
$175,000
LOTUS%
INDUSTRY
Financial Services
Insurance
Manufacturing
Organization
Diversified retail bank
$70+ billion sales
$1,000+ billion assets
5,000+ branches
200,000+ employees
Diversified property &
casualty insurer
$20+ billion sales
$100+ billion assets
30,000+ employees
Industrial manufacturer
$25+ billion sales
20 manufacturing,
distribution & service
centers
10,000+ employees
Products covered
Notes/Domino, Connections,
iNotes, Quickr, Sametime,
Notes/Domino, Connections,
Quickr, Sametime
Notes/Domino, iNotes,
Quickr, Sametime
Number of users
200,000+
50,000+
10,000+
AVP FTEs
1.3 AVL
0.5 AVL
0.33 AVL
Named callers
70
15
5
Contracted days
100 AVL/AVS on-site days
Unlimited EOS days
25 AVL/AVS on-site days
EOS days as needed
12 AVL onsite days
1 EOS day
Contract cost/year
$600,000
$235,000
$125,000
International Technology Group 20
Figure 9 (continued)
Profile Installations: Summary
RATIONAL%
INDUSTRY
Financial Services
Manufacturing
Manufacturing
Organization
Diversified retail bank
$100+ billion sales
$1,000+ billion assets
5,000+ branches
200,000+ employees
Communications & network
equipment manufacturer
$20+ billion sales
20+ manufacturing sites
50,000+ employees
Health care products
manufacturer
$10+ billion sales
15+ manufacturing sites
30,000+ employees
Products covered
ClearCase, ClearQuest,
Rational Application
Developer, Rational
Software Architect
ClearCase, ClearQuest,
DOORS, Rational
Application Developer,
Rational Software Architect
ClearCase, ClearQuest,
DOORS
Number of users
300+
155
60
AVP FTEs
1.0 AVL, 0.33 AVS
0.5 AVS
0.33 AVS
Named callers
10
10
5
Contracted days
10 AVL/AVS on-site days
6 AVL/AVS on-site days
1 EOS day
4 AVL/AVS on-site days
1 EOS day
Contract cost/year
$500,000
$200,000
$135,000
TIVOLI%
INDUSTRY
Financial Services
Government
Insurance
Organization
Diversified retail bank
$100+ billion sales
$1,000+ billion assets
5,000+ branches
200,000+ employees
State government shared IT
services organization
supporting 80+ agencies &
departments, & 100,000+
employees
Diversified property &
casualty insurer
$20+ billion sales
$100+ billion assets
30,000+ employees
Products covered
Business Systems
Manager, Application
Dependency Discovery
Manager, Composite
Application Manager,
Configuration Manager,
Enterprise Console, License
Compliance Manager,
Maximo, Monitoring,
Omegamon XE,
Provisioning Manager,
System Automation,
Workload Scheduler
Application Dependency
Discovery Manager,
Business Systems
Manager, Composite
Application Manager,
Configuration Manager,
Enterprise Console,
Monitoring, Monitoring for
Databases, Netcool,
NetView, Omegamon XE,
Remote Control
Access Manager, Directory
Server, Identity Manager,
Identity & Access
Assurance
AVP FTEs
1.25 AVL, 1.2 AVS
0.33 AVL, 0.25 AVS
0.33 AVL, 0.2 AVS
Named callers
15
5
5
Contracted days
5 AVL/AVS on-site days
1 EOS day
15 AVL/AVS on-site days
1 EOS day
5 AVL/AVS on-site days
2 EOS days
Contract cost/year
$300,000
$200,000
$175,000
International Technology Group 21
Figure 9 (continued)
Profile Installations: Summary
WEBSPHERE%
INDUSTRY
Financial Services
Retail
Insurance
Organization
Diversified retail bank
$100+ billion sales
$1,000+ billion assets
5,000+ branches
200,000+ employees
General merchandise retailer
$50+ billion sales
2,000+ stores
70+ distribution centers
250,000+ employees
Diversified property &
casualty insurer
$20+ billion sales
$100+ billion assets
30,000+ employees
Products covered
Application Server,
Business Integration,
Customer Center,
DataPower, Enterprise
Service Bus, Message
Broker, MQ, Process Server
Application Server, Business
Integration, Extended
Deployment, Message
Broker, MQ, Portal Server
Application Server,
Business Integration, MQ,
Process Server
AVP FTEs
1.5 AVL, 4.75 AVS
1.5 AVL, 1.5 AVS
1.5 AVL/AVS
Named callers
120
35
25
Contracted days
22 AVL/AVS on-site days
5 EOS days (0 used)
15 AVL/AVS on-site days
4 EOS days (0 used)
12 AVL/AVS on-site days
2 EOS days (0 used)
Contract cost/year
$650,000
$325,000
$200,000
International Technology Group 22
Figure 10
Profile Installations: Returns
BUSINESS ANALYTICS
INDUSTRY
Financial Services
IT Services
Pharmaceuticals
AVP staff
124,089
77,858
31,143
Informational & other services
22,043
16,793
14,543
Productivity savings
264,446
93,660
112,284
Risk avoidance savings
1,483,908
644,546
307,571
TOTAL ($)
1,894,486
832,857
465,541
ENTERPRISE CONTENT MANAGEMENT
INDUSTRY
Insurance
Financial Services
Distribution
AVP staff
129,911
46,344
35,221
Informational & other services
49,080
20,588
19,399
Productivity savings
138,531
36,764
15,795
Risk avoidance savings
820,350
317,310
243,247
TOTAL ($)
1,137,872
421,006
313,662
INFORMATION MANAGEMENT
INDUSTRY
Financial Services
Retail
Insurance
AVP staff
177,515
75,707
84,531
Informational & other services
66,225
35,925
25,425
Productivity savings
1,291,076
334,296
227,586
Risk avoidance savings
2,224,872
504,723
475,001
TOTAL ($)
3,759,688
950,651
812,543
LOTUS
INDUSTRY
Financial Services
Insurance
Manufacturing
AVP staff
227,641
85,273
46,492
Informational & other services
76,193
33,293
31,493
Productivity savings
549,481
77,036
22,014
Risk avoidance savings
1,230,345
169,625
31,644
TOTAL ($)
2,083,660
365,227
131,643
RATIONAL
INDUSTRY
Financial Services
Manufacturing
Manufacturing
AVP staff
217,037
63,028
41,598
Informational & other services
32,993
27,293
23,543
Productivity savings
1,357,258
603,480
190,121
Risk avoidance savings
1,361,409
357,956
444,450
TOTAL ($)
2,968,697
1,051,757
699,712
TIVOLI
INDUSTRY
Financial Services
Government
Insurance
AVP staff
364,447
82,900
71,703
Informational & other services
38,543
34,043
25,343
Productivity savings
328,762
134,528
82,224
Risk avoidance savings
1,203,826
750,111
157,032
TOTAL ($)
1,935,578
1,001,582
336,302
WEBSPHERE
INDUSTRY
Financial Services
Retail
Insurance
AVP staff
876,824
444,900
211,328
Informational & other services
36,743
23,243
32,993
Productivity savings
3,135,974
1,122,162
404,201
Risk avoidance savings
986,929
1,210,786
485,299
TOTAL ($)
5,036,470
2,801,091
1,133,821
ABOUT THE INTERNATIONAL TECHNOLOGY GROUP
ITG sharpens your awareness of what’s happening and your competitive edge
. . . this could affect your future growth and profit prospects
The International Technology Group (ITG), established in 1983, is an independent research and
management consulting firm specializing in information technology (IT) investment strategy, cost/benefit
metrics, infrastructure studies, deployment tactics, business alignment and financial analysis.
ITG was an early innovator and pioneer in developing total cost of ownership (TCO) and return on
investment (ROI) processes and methodologies. In 2004, the firm received a Decade of Education Award
from the Information Technology Financial Management Association (ITFMA), the leading professional
association dedicated to education and advancement of financial management practices in end-user IT
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The firm has undertaken more than 100 major consulting projects, released approximately 160
management reports and white papers, and delivered nearly 1,800 briefs and presentations to individual
clients, user groups, industry conferences and seminars throughout the world.
Client services are designed to provide factual data and reliable documentation to assist in the decision-
making process. Information provided establishes the basis for developing tactical and strategic plans.
Important developments are analyzed and practical guidance is offered on the most effective ways to
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A broad range of services is offered, furnishing clients with the information necessary to complement
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Clients include a cross section of IT end users in the private and public sectors representing multinational
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