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Table of Contents

Server Consolidation Primer

Consolidating HP-UX Environments

Strategic Consolidation Questions

Benefits of HP's New "i2" Servers

Benefits of HP-UX 11i v3

Analytical Approach to Calculating
Financial Benefits

HP-UX 11i v3 License
To Use Fees

Scenarios Analyzed

Scenario #1: Five rx8640 to
Two Superdome 2

Scenario #2: Three rx8640 to
Two BL890c i2

Scenario #3: Nine BL860c to
Four BL860c i2

Scenario #4: Eight rp4440-8 to
Two BL870c i2

Oracle Users See Additional Savings

Consolidations Save Energy


Quantifying the Benefits of Consolidating Older HP-UX Environments

Detailed TCU analyses of the costs and benefits associated with consolidating HP-UX environments running on multiple HP 9000 or older HP Integrity servers into fewer HP BL8x0c i2 server blades or Superdome 2 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 introduced four new servers and a new update to HP-UX 11i v3. The new servers include the BL860c i2, BL870c i2, BL890c i2 server blades, and Superdome 2. These are the first servers based on the quad-core Intel® Itanium® 9300 processor series. Companies that currently use multiple HP 9000 servers or older HP Integrity servers with HP-UX now have the opportunity to consolidate these older environments to fewer servers based on the latest server technology and version of HP-UX. This paper examines this consolidation decision in terms of feature and financial benefits. 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 affecting any consolidation decision concerns the benefits system administrators and users will see after the consolidation. 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 and Superdome 2 also have benefits over older Integrity and HP 9000 servers. These include improved performance, increased memory capacity, easier ability to combine multiple blades in a single enclosure, and improved reliability, availability, and serviceability (RAS).

Another strategic question concerns the financial benefits of the consolidation. This paper includes Total Cost of Upgrade™ (TCU™) analyses for four specific consolidation scenarios. The initial cost of the new server hardware, software, 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 consolidation was evaluated on the basis of its three-year net present value (NPV) and internal rate of return (IRR).

All four consolidation scenarios have positive financials that make them attractive decisions. The highest NPV comes from consolidating five rx8640 into two Superdome 2 systems. This consolidation's three-year NPV is $1.56 million. The highest IRR (189%) comes from consolidating eight HP 9000 rp4440-8 into two BL870c i2. Similarly, consolidating three rx8640 into two BL890c i2 has a three-year NPV of $588,000 while consolidating nine BL860c into four BL860c i2 has a three-year NPV of $186,000.

In these challenging times, many IT managers are looking for ways to use their servers more efficiently. Those who are managing multiple HP-UX servers that are more than three years old should seriously consider consolidating these systems into HP's new i2 servers running HP-UX 11i v3.

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