Building a New Infrastructure for Retail Products Affiliate

Microsoft Volume Licensing Customer Solution Case Study

Two Global Firms Save More Than $500,000 through Virtualization and Volume Licensing

Overview “The savings achieved with Terminal Services, Country or Region: United States Hyper-V technologies, and the Enterprise Industry: Professional services Agreement is used to fund other IT projects that will Customer Profile help further increase productivity and reduce FranklinCovey Company, based in Salt Lake City, Utah provides training and costs.” consulting services in 147 countries and Travis Peters, Director of IT, FranklinCovey Company has more than 600 employees. Global Global training and consulting firm, FranklinCovey Co., and retailer, FranklinCovey Products, also based in Salt Lake City, employs 300 global retailer, FranklinCovey Products, took advantage of a and sells productivity products. Microsoft® Enterprise Agreement and Hyper-V™ virtualization

Business Situation software to reduce software licensing costs while expanding FranklinCovey Company and capabilities. They upgraded to the Enterprise CAL Suite and FranklinCovey Products wanted to improve efficiency and reduce costs by used Windows Server® 2008 Datacenter with Hyper-V to create separating their operations without separate virtual environments for each company’s operations. doubling their IT budgets. Each used Windows Server 2008 Terminal Services to host Solution remote connectivity applications without a virtual private Each company set up a separate virtualized environment on Windows network. As a result, FranklinCovey Co. saved more than U.S. Server® 2008 Datacenter with Hyper- $500,000 in hardware, licensing, and energy costs. V™. Both also used Windows Server 2008 Terminal Services to host remote FranklinCovey Products saved $150,000 on call center setup connectivity applications. and more than $90,000 on hardware and licensing for its internal

Benefits domain. Both reduced software testing time by 70 percent and  FranklinCovey Company saved U.S. expedited deployment and training with Software Assurance $500,000 in IT costs  FranklinCovey Products saved benefits. $150,000 on call center setup Situation integrated its corporate voice-mail and e- FranklinCovey Co. was formed in 1997 mail messaging systems through that from the merger of Franklin Quest— software’s built-in unified messaging creators of the Franklin Day Planner—and component. About a year later, it deployed Covey Leadership Center—the company a unified communications solution based formed by Stephen R. Covey, author of on Microsoft Office Communications Server long-time best seller The 7 Habits of Highly 2007. Effective People. The resulting enterprise, FranklinCovey Co., has grown to be a In addition, the FranklinCovey Co. finance global provider of training and consulting and legal departments wanted to upgrade services in the areas of leadership, their line of business applications, which productivity, strategy execution, customer required additional server hardware. The IT loyalty, trust, sales performance, department thought it would be wise to government, education, and individual separate the file and application servers for effectiveness. Clients include 90 percent of each of those departments to make it the Fortune 100, more than 75 percent of easier to comply with Sarbanes-Oxley and the Fortune 500, thousands of small and other federal requirements. On top of that, mid-sized businesses, and numerous the company was going to upgrade its government entities and educational building security software, which was going institutions. The company is headquartered to require additional servers. in Salt Lake City, Utah, and employs 600 people who serve customers in 147 “Between the finance, legal, and security countries. system requirements, we were going to need five or six new servers, which would FranklinCovey Products, also have cost more than $40,000 just for the headquartered in Salt Lake City, is a global hardware,” says Travis Peters, Director of retailer and the exclusive licensee of IT for FranklinCovey Co. “We wanted to consumer products for FranklinCovey Co. add the capabilities but reduce costs These products help individuals and wherever possible, so we needed to look at organizations achieve greater productivity, alternatives other than just buying a bunch effectiveness, and success, and are sold of servers.” throughout Europe, Asia, Australia, and the Middle East, and in more than 15,000 retail Building a New Infrastructure for outlets across North America, including 70 Retail Products Affiliate FranklinCovey Products stores. In addition to expanding its core Organiza- FranklinCovey Products has 300 tional Solutions business unit, employees. FranklinCovey Co. had built a growing Consumer Solutions business unit for As part of its ongoing move to reduce costs selling planning products and other while enhancing communications, business accessories and tools. In July productivity, and compliance with federal 2008, FranklinCovey Co. split off its regulations, FranklinCovey Co. upgraded Consumer Solutions business unit to form its communications infrastructure to a new company—FranklinCovey Products Microsoft® Exchange Server 2007 and —which continues to sell products through franklinplanner.com, FranklinCovey retail FranklinCovey Co. had signed a Microsoft specialty stores, catalog call centers, and Enterprise Agreement several years earlier through third-party retailers worldwide. The and has continued to renew it every three original FranklinCovey Co. organization years. That Enterprise Agreement includes now focuses on the continued expansion of the Enterprise Platform offering, which its training, consulting, content-rich media, means it can license components from the and thought leadership businesses. Enterprise Client Access License (CAL) Suite, Microsoft Office Enterprise 2007, When FranklinCovey Products became a and Windows Vista Enterprise under a stand-alone entity, it had to build an infra- single platform license. structure for its internal operations. The original plan was to implement a domain FranklinCovey Co. also takes advantage of with 19 physical servers. many Software Assurance benefits In addition to the internal domain, included in the Enterprise Agreement. For FranklinCovey Products was setting up a example, the company is using the catalog order call center in Pune, India, Packaged Services benefit to plan its where 50 call center employees could enter deployment of Microsoft Office SharePoint® orders into their corporate ordering system. Server 2007. It also takes advantage of The challenge was that the call center was Training Vouchers for IT staff, E-learning set up on a separate corporate network sessions for end users, 24x7 Problem with a firewall that blocked outgoing virtual Resolution Support, and a TechNet private network (VPN) traffic. subscription to maximize the value of its technology investment. “Through the To get around the VPN issue, Training Vouchers available through FranklinCovey Products looked at Software Assurance we got training on implementing the same third-party Hyper-V, Microsoft System Center, and connectivity solution in Pune that it was Windows Server 2008 Terminal Services already using in its Mumbai call center. included in the cost of the Enterprise However, the cost—not to mention the Agreement,” says Peters. testing and setup time required—made the solution impractical. So it turned to Another advantage of the Enterprise Microsoft Gold Certified partner EDS, Agreement was that it offered which handles IT management for the FranklinCovey Co. the option to upgrade its company. Core CAL Suite to the Enterprise CAL Suite. This move added seven server “FranklinCovey Products estimated that for product CALs under a single multiple- the call center it was going to need eight product CAL for about the cost of just three servers for 50 people,” says Rick Gordon, product CALs if acquired separately. By the Senior IT Systems Technician for EDS. “I time the company fully implemented its knew there had to be a more cost-effective Exchange Server unified communications solution.” solution in early 2008, it was already using five of the seven additional products Solution licensed by the Enterprise CAL suite, so it made financial sense to upgrade. “Once we knew that have done with the other solution we FranklinCovey Co. then continued to considered,” says Gordon. we could get the call expand its use of the Enterprise CAL Suite center connectivity by activating a subscription to Microsoft “Once we knew that we could get the call Exchange Hosted Filtering, which routes center connectivity solution with Terminal solution with Terminal inbound and outbound e-mail through Services for $150,000 less than other solu- Services for $150,000 multiple filters to help block viruses, worms, tions we considered, there was no question and spam from reaching the FranklinCovey about which one we were going to choose,” less than the other Co. network. says Mike Connelly, Vice President of IT solutions… there was for FranklinCovey Products. “And beyond Remote Connectivity without a the cost savings, the solution also makes it no question about VPN easier for end users to access applications which one we were The next challenge was for FranklinCovey and tools from any Internet Explorer® Products to quickly establish secure, cost- browser without the configuration going to choose.” effective connectivity between the Pune headaches of a VPN.” Mike Connelly, Vice President of IT, call center and the corporate ordering FranklinCovey Products system in Salt Lake City. As the company Gordon, in his role as server administrator, evaluated alternatives, Gordon saw a uses Terminal Services with the Remote presentation on Windows Server® 2008 Desktop Protocol (RDP) to troubleshoot Terminal Services and Hyper-V™ and manage both FranklinCovey Co. and virtualization technologies. Seeing the FranklinCovey Products environments, as potential to create a virtualized environ- well. “Using Terminal Services and the ment in which call center employees could RDP client gives the IT department a lot access the corporate network without a flexibility because I can get anywhere I VPN, Gordon recommended running a need to on the network even when I’m proof of concept. away from the office, which is extremely Gordon set up a test environment to dupli- valuable with the combined offices of both cate the proposed Pune call center. The companies in more than 147 countries,” environment consisted of a single IBM says Gordon. x3850 M2 server with four 6-core processors running Windows Server 2008 Following FranklinCovey Products’ success Datacenter, which features Hyper-V. The with the Pune call center solution, call center applications are published FranklinCovey Co. extended the new through Terminal Services RemoteApp™ solution to its internal help desk in Pune. using Terminal Services Gateway, TS And, FranklinCovey Products then Gateway, and Terminal Services Web converted its Mumbai call center from the Access. third-party VPN solution to Terminal Services technologies. After seeing the success of the proof of concept, Gordon deployed the solution in Building a Virtual Domain production for the Pune call center. “It took Having resolved the call centers’ only a couple of weeks to set up, so we connectivity challenges, Gordon saw the met our target date, which we never could potential of using Hyper-V virtualization technology for the new FranklinCovey “We save about 25 Products internal domain. ”I saw that I running on 10 physical servers. As of July could save quite a bit of money on 2009 it was running 23 virtual servers on percent on licenses hardware by using Hyper-V to virtualize a Hyper-V on 15 physical servers. with the Enterprise wide variety of servers and deliver the performance they needed,” says Gordon. FranklinCovey Co. also connected its Agreement, and we Tokyo office on Hyper-V. The project saved at least another FranklinCovey Products set up the new consolidated eight physical servers to two internal infrastructure on Hyper-V in July physical servers running five virtual $15,000 on licensing 2008. The domain consists of one IBM machines on Hyper-V. with Windows Server X3850 M2 quad processor server running Windows Server 2008 Datacenter, provi- Benefits 2008 Datacenter.” sioned with 18 virtual servers. The virtual By acquiring Microsoft software through an Mike Connelly, Vice President of IT, servers run all the company’s services Enterprise Agreement and employing FranklinCovey Products including file and print, FTP, e-mail, data Microsoft Hyper-V virtualization and management, network management, Terminal Services technologies, security, and business applications. FranklinCovey Co. and FranklinCovey “Getting Windows Server 2008 Datacenter Products are able to enhance connectivity up and running and provisioning the virtual and productivity while saving hundreds of machines only took about a week,” says thousands of dollars in hardware, software Gordon. licensing, and energy costs. It also expedites software deployment with the The Pune call center solution eventually help of Software Assurance benefits. will be moved to two virtualized servers on Hyper-V to provide load balancing and Saved $500,000 on IT Expenditures redundancy. FranklinCovey Co. estimates that it saves approximately 65 percent on licensing by With its upgraded Microsoft Enterprise standardizing on the Microsoft Enterprise Agreement, FranklinCovey Co. only incurs Platform through its Enterprise Agreement, additional licensing cost if a new and gains the benefit of predictable application is deployed or the company licensing costs and the ability to centrally adds desktops. “We count the actual manage all licenses, which saves number of CALs just once a year during the management time. In addition, by annual “true-up” process, which saves us a virtualizing its environment on Hyper-V, the lot of management time and streamlines company estimates that it has saved the procurement process,” says Peters. approximately U.S.$225,000 on server hardware, and has realized additional More Servers, Less Hardware savings on power and cooling costs. In When FranklinCovey Co. saw the savings total, the company estimates that those that FranklinCovey Products achieved with measures have helped save FranklinCovey Hyper-V, it began to devise a plan to move Co. more than $500,000 in IT costs. much of its internal domain to Hyper-V also. In so doing, FranklinCovey Co. Avoided $150,000 on Call Center Setup expects to consolidate from a total of 50 By employing Microsoft technologies, physical servers to about 30 virtual servers FranklinCovey Products achieved seamless connectivity for its order-entry With its Hyper-V-virtualized test lab, both operations and realized significant savings companies can quickly provision new on hardware and licenses compared to the servers and test new technologies or alternative. By setting up its Pune call changes to the network without risking center solution on Windows Server 2008 damage to the production network. “The Datacenter and using Terminal Services to performance of the virtual machines on connect users to the corporate network, it Hyper-V is incredible, and if you have to reduced the required physical servers from reboot, it only takes about two minutes,” eight to one, and shortened deployment says Gordon. “So, if I try out a change in time significantly. “Not only did we get the the test lab and it causes a problem, I can solution with Terminal Services and Hyper- just go to the last snapshot and start over. V for $150,000 less than the other solution Based on the recent testing we did with we considered, but we were able to get the Office Communications Server, we call center up and running in less than estimate that building the test environment three weeks,” says Connelly. “With the on Hyper-V reduces testing time by about other connectivity solution, and without 70 percent.” Hyper-V, it would have taken two to three months.” Expedited Deployment The combination of Hyper-V and Microsoft Minimized Startup Costs for New Operation System Center server management tools FranklinCovey Products also saved makes it possible for Gordon to manage licensing costs through the Microsoft two separate environments—one for Enterprise Agreement and by deploying FranklinCovey Co. and one for virtual servers on Windows Server 2008 FranklinCovey Products. Rather than Datacenter with Hyper-V. “We save about waiting weeks for a physical server to 25 percent on licenses with the Enterprise arrive and taking several hours to make Agreement, and we saved at least another sure the server image has the right drivers, $15,000 on licensing with Windows Server he can provision a virtual server on Hyper- 2008 Datacenter,” says Connelly. “We only V in just minutes. pay for four processor licenses even though we have 18 virtual servers.” The “Splitting the two companies almost company will realize additional licensing doubled the number of servers, but I’ve and hardware savings as it deploys more been able to manage both domains virtual servers. because I use System Center Configuration Manager for updates and “Moving to Hyper V allowed us to cut management, and Hyper-V to set up a $75,000 off our hardware expenses for the server in 20 to 30 minutes whenever some- new company right off the bat, and we body needs one,” says Gordon. expect to double that savings when we’ve completed deployment of 30 virtual FranklinCovey Co. notes that the Software servers,” says Gordon. Assurance benefits included in the Enterprise Agreement, such as Training Reduced Testing Time by 70 Percent Vouchers and Packaged Services help expedite software deployment. “We expect For More Information that SharePoint Deployment Planning Microsoft Volume Licensing For more information about Microsoft Services will help us deploy Office Microsoft Volume Licensing offers products and services, call the Microsoft SharePoint Server 2007 much faster than customized programs that are designed to Sales Information Center at (800) 426- without that extra guidance,” says Peters. meet the needs of your business. Tailored 9400. In Canada, call the Microsoft In addition, the Microsoft self-paced E- for companies of different sizes and Canada Information Centre at (877) 568- Learning sessions available through purchasing preferences, these Volume 2495. Customers who are deaf or hard- Software Assurance have reduced training Licensing programs provide simple, of-hearing can reach Microsoft text costs. flexible, and affordable solutions that can telephone (TTY/TDD) services at (800) help you manage your licenses with ease. 892-5234 in the United States or (905) By expediting server provisioning with Whether you have five or thousands of 568-9641 in Canada. Outside the 50 Hyper-V, and by simplifying the process desktop PCs, Microsoft Volume Licensing United States and Canada, please and reducing the cost of licensing with a has the right program for you. contact your local Microsoft subsidiary. Microsoft Enterprise Agreement, both To access information using the World FranklinCovey Co. and FranklinCovey To acquire the latest Microsoft technology Wide Web, go to: www.microsoft.com Products are able to quickly respond to the at a significant cost savings through changing needs of their employees as the Microsoft Volume Licensing, contact your For more information about EDS companies grow and evolve. “The savings Microsoft Partner or local reseller. products and services, visit the Web site achieved with Terminal Services, Hyper-V at: www.eds.com technologies, and the Enterprise To learn more about Microsoft Volume Agreement is used to fund other IT projects Licensing, visit: For more information about that will help further increase productivity www.microsoft.com/licensing FranklinCovey Co. and FranklinCovey and reduce costs, which helps create a Products, visit the Web site at: continuous circle of benefits,” says Peters. www.franklincovey.com

Software and Services  Technologies  Microsoft Office − Hyper-V − Microsoft Office Communications − Terminal Services Gateway Server 2007 − Terminal Services RemoteApp  Microsoft Server Product Portfolio − Terminal Services Web Access − Windows Server 2008 Datacenter − Microsoft Exchange Server 2007 Hardware Enterprise Edition  IBM X3860 M2 quad processor servers − Microsoft SQL Server 2005 Enterprise Edition Partners − Microsoft System Center  EDS Configuration Manager 2007

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Document published September 2009