ZCS vs Exchange 2007 TCO v4 (PPT)

Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners. Copyright © 2007 Zimbra, Inc.

Zimbra Collaboration Suite &

Microsoft Exchange 2007

Total Cost of Ownership Analysis Mar 2007

22Zimbra, Zimlets, and the Zimbra logos are registered trademarks of Zimbra, Inc. All other trademarks are property of their respective owners.

Copyright © 2007 Zimbra, Inc.

TCO: Comparable, Real-World, 5-year Total Cost

• Average corporate user messaging profile & production deployable configurations

• Servers & storage quotes from the same vendor

• Includes license for complete software stack, assurance (including support) and 3rd party products (as necessary)

• Similar hardware and software support SLA for both solutions



Real World Scenario: Average Large Enterprise User Usage Profile (25K Users)

HP ProLiant Sizer for Microsoft Exchange Server 2003: http://www27.compaq.com/SB/ExchangeSizer/ExchangeASP/StpA_Index.aspx?SaID=Exchange2003

Dell Exchange 2003 Advisor: http://www.dell.com/content/topics/topic.aspx/global/shared/alliances/en/exchange_advisor_form?c=us&l=en&s=biz



Request quotes from top

Exchange vendors for 25K

users

Real World Scenario: Production Deployable Configurations

Normalize quotes to arrive at similar

service terms/SLAs

Request quote for Zimbra

hardware & storage from same vendor


Software & Support Costs Comparison



License, New Releases & Support: Microsoft Solution (Quoted)



License, New Releases & Support: Zimbra Solution (List Price)



Software License, New Releases & Support

Windows Server approx 35% of total Microsoft software

cost

Total Microsoft software costs 72% more than Zimbra


Server & Storage Costs Comparison



Exchange Sizing: No FE (OWA) server, no blackberry server, no separate domain controller or active directory box, no recovery storage group storage buffer, no public folder database

Microsoft solution costs 42% more than Zimbra solution. Also Zimbra’s modular

architecture allows deployments to scale horizontally and vertically

Servers & Storage

Microsoft solution storage costs are 106% more than Zimbra’s. Better IO performance & built-in HSM in Zimbra allow customers to

utilize & organize storage cost-effectively

* 3 years of support (and not 5) included in above numbers


Total Cost of Ownership Comparison Results



$23

Solution Acquisition & Support Costs

Source: TCO data based on medium enterprise messaging profile, quotes from leading Exchange vendors

Software, New Releases & SupportServers & Storageincluding Support

Zimbra TCO Savings

42%

49%

TOTAL 43%

$3.7

$36.1

$1.9

$21

Average Total Cost per User / Year

$40

Zimbra Delivers 43% Savings or $2.1M over a Five Year Period



Acquisition, Support & Administration Costs

Source: Administration costs based on report from Radicati Group and Zimbra customers.

Software, New Releases & SupportServers & Storageincluding Support

Zimbra TCO Savings

42%

49%

TOTAL 46%

$3.7

$36.1

$1.9

$21

Average Total Cost per User / Year

$80

$43

Zimbra Delivers 46% Savings or $4.6M over a Five Year Period

$20.0

$39.9

Administration Costs

50%



$50

$191

Subscription-based Licensing & Support Model & Lower Hardware Requirements Significantly Reduces Upfront Costs & Investment Risk

Zimbra: Upfront Investment: $1.3M or 24% of total

Microsoft: Upfront Investment: $4.8M or 48% of total

Software, New Releases & Support

Administration Costs

Servers & Storageincluding Support

$21

$133

Comparison of Upfront Costs (Year 1 Commit)

$9.4

$20

$18.6

$39.9



Cumulative Solution Cost & NPV Over 5 Years

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

Year 1 Year 2 Year 3 Year 4 Year 5

Zimbra Solution

Microsoft Solution

Net Present Value (@ 15% discount rate)

Microsoft Solution: $8.4M

Zimbra Solution: $4.1M



Other Costs

Outage Costs Costs due to unscheduled downtime can result in

significant lost productivity. Based on customer surveys, Radicati reported Exchange downtime costs/user to be $37.25

Zimbra customers that used Exchange before suggest an average of 4 hours of unscheduled Exchange downtime per month as compared to 0.5 hours per month for Zimbra

“With Exchange during an 8 months period every month would have some downtime, we typically averaged 4 hours of downtime a month or around 1 hour a week of downtime. Again Zimbra has given us the confidence that email is always working. Plus the result in switching to a Linux server we have never rebooted the server due to lockups.”

A four-hour outage that affects 10% employees earning an average salary of $35/hour can result in outage costs of $350K per incident or $4.2M/year to the enterprise



Other Costs

Desktop Software License & Support

Zimbra offers integrated & collaborative capabilities including Shared Documents, Attachments rendering as HTML and Zimbra Desktop that preclude the need for Microsoft Office and SharePoint server licenses for many users

These licenses can easily run into a few hundred dollars per user (Office: $360/user and SharePoint Server 2007: $93/user)

Ongoing support and upgrades for these software titles can rack up additional costs for customers



Acquisition Costs Savings• Zimbra solution delivers savings of 43% in acquisition costs & support• Over a five year period, the NPV of Zimbra solution is half that of Exchange

Zimbra TCO

Benefits

Zimbra TCO

Benefits

Conclusions

Reduce Upfront Investment & Risk• Zimbra’s annual subscription model requires upfront investment of 24% of the total 5-year cost as compared to 48% for Exchange• Customers are not required to hold an asset and be locked into a multi-year commitment with Zimbra

Other Costs• Significant savings can accrue from reduced system downtime • Many users may not require licensing desktop software & support


Thank you!

Zimbra, Inc.1500 Fashion Island Blvd

Suite 100San Mateo, CA 94404

[email protected]

ZCS vs Exchange 2007 TCO v4 (PPT)

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