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Inside Outsourcing

A Case in Point
To illustrate the challenges in a data center outsource contract, let's revisit AppLogistics Inc., the mythical midsized manufacturing company we invented for our recent RFP on intranets (see www.networkcomputing.com/818/818f1.html). AppLogistics is one of the world's largest distributors of semiconductors, interconnect, passive and electromechanical components and computer products, principally for industrial customers. Until now, IS at AppLogistics has been an in-house effort, but it has an aggressive attitude about using packaged applications wherever possible. AppLogistics also uses staff-extension contractors to help with workload spikes, and has already successfully outsourced its network operations to a national frame relay vendor.

AppLogistics' data center handles 300 users, with 20,000 hits, 24,000 e-mail messages and 80,000 dialogue transactions daily. It currently houses the following servers and other network components:

· Netscape/Oracle on Unix for its Internet and intranet sites

· Sun Sparc ES3000 (dual-processor, 512 MB of RAM, 20 GB of RAID 5)

· Lotus Notes for companywide messaging

· Compaq 7000 (dual-processor, 256 MB of RAM, 40 GB of RAID 5)

· NetWare for file services and NDS

· Compaq 1500R (2 x P133, 192 MB of RAM, 40 GB of RAID 5)

· A midsized SAP implementation on Oracle/NT

· Compaq 7000 (dual-processor, 512 MB of RAM, 80 GB of RAID 5)

· 20-GB transaction database

· 60-GB data warehouse


AppLogistics' management seeks an outsource vendor to assume responsibility for its servers on-site as soon as possible; identify if, when and how transfers will occur; determine when a contract for long-term outsourcing delivery should be signed; deploy the servers at the outsourcing site; adjust AppLogistics' network to accommodate remote servers; and help its users and technical staff make the transition.

In addition to remote hosting capabilities, AppLogistics will consider the vendor's methodology and pricing for change management; database management/administration; network management; operations management; recovery/failover; day-to-day operations and backup; maintenance of the servers, including OS, database and applications; and hardware.


Other Features
Microsoft, Take 2
By Christy Hudgins-Bonafield, David Willis and Art Wittmann


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