In the first post on ArcGIS Server I discussed the product and technology, focusing on the new capabilities at 9.2; in this post I will address the business model which has also changed quiet considerably.
By way of introduction I will say that we spent many hours discussing how to license the Server and what to charge for it. The first conclusion we drew is that there ‘is no good well established method of charging for Server technology’. We examined models from Microsoft, IBM, Oracle and several other major enterprise technology companies. We looked at licensing by hardware, number of concurrent users, industry metrics such as total population, length of pipe, etc., and even examined the open source model. In the end we plumped for the hardware capacity model – based on sockets and cores (processor power) used to run the software – because it is well understood, easy to measure across industries, and is an outgrowth of the model we have used for several releases.
The second thing we realized is that the Server world has changed almost beyond recognition from ten years ago when we devised the original ArcSDE, ArcIMS and ArcSDE business models. Machines are now at least five times faster that they were then. This means that the price of ESRI servers has fallen fivefold in real terms. Today’s entry level servers are now powerful enough to support large workgroups and small enterprises. There is no need to go to a multi-tier, multi-server hardware solution to meet the needs of a small city, utility department or other user cluster.
In order to make ArcGIS Server more affordable to a larger community of users at 9.2 we provide an extremely low cost of entry for developers. A very affordable EDN subscription will get a developer all the ESRI Server technology for development purposes. Also, we have introduced very low cost workgroup editions to allow small user communities to implement GIS. ArcGIS Server Basic Workgroup is designed for small group data management. It includes a DBMS in the box and is the lowest cost ‘GIS Server’ ever from ESRI. ArcGIS Server Standard Workgroup does everything that Basic does and has additional capabilities that make it comparable to ArcIMS in terms of its functionality (all the new mapping functionality, clients and architectural features mentioned in the previous post) as well as price. ArcGIS Server Advanced Workgroup has the full server functionality (Standard, plus editing, full geoprocessing and Mobile ADF) and it costs the same as ArcGIS Server 9.1 (but is, of course, much more powerful). Each of the three functional workgroup editions, has a twin enterprise server product which has the same functionality except the in-the-box DBMS is replaced with the ability to connect to enterprise DBMS (DB2, Informix, Oracle and SQL Server). The most powerful, ArcGIS Server Advanced Enterprise, is the next generation equivalent of ArcGIS Server bundled with ArcSDE and is the same price as the 9.1 bundle (but scales better and has much more functionality). This new release has capabilities that begin to approach those of ArcGIS desktop (mapping, editing, geoprocessing, data management), but on a per user basis it is much less expensive than desktop seats.
Architecturally and functionally several things have changed at the 9.2 release that have impacted our business model strategy:
Direct connect – we now recommend that GIS to DBMS connections use the SDE direct connect model instead of the ‘application server’ model that was common in earlier releases. This means that the SDE technology is installed on the same server as the SOM/SOC technology, and not the DBMS data server. New hardware and network configurations, together with improvements in the software mean that this will now deliver optimum performance in most cases. For licensing purposes we will no longer count the number of sockets on the DBMS machine, but in direct connect mode SDE will use the same socket licenses as the SOM/SOC machine.
Web Application Tier - this is the layer in the server stack where web applications run. From the earlier post you will recall that ArcGIS Server 9.2 has several new clients which run in this tier, e.g. Web Map, Web Map Editor, and Manager (plus parts of Mobile and ArcGIS Explorer). There is also a full set of .Net, Java and Enterprise Java bean components, plus the client application templates, which developers can use to create their own web tier clients. The web tier never really amounted to much in ArcIMS (just basic connectors) and at ArcGIS Server 9.2 it was by comparison very simple. ArcGIS Server 9.2 on the other hand has some very interesting functionality including: multi-source controls that can fuse ArcGIS Server map cache and SOM/SOC services, ArcIMS and WMS web services; AJAX style pan and zoom; projection on the fly; and graphic drawing (useful in editing), and record set management. The majority of these operations are performed by the web tier software and do not require processing by the SOM/SOC. Because of this additional functionality and the new processing model we feel it is appropriate to license the server web tier application functionality. As in the case of SDE, when the Web ADF and the SOM/SOC are on the same machine only a single license is required, but if the Web ADF is on its own machine (for scalability purposes) then this machine will also need a license. We will allow a single socket license (50% of the two socket license) to be used for additional Web Tier deployments. Remember also that developers can get a Server development license for each SOM/SOC pair and so these remarks only apply to the deployment of the Web ADF run-time applications.
ArcGIS Server Web Tier Applications
Architecture - at the ArcGIS Server 9.2 release we now suggest a much simpler architecture than before. Our best practices recommendation for Server implementations prior to 9.2 was a multi-tier implementation with the Web ADF, SOM/SOC and ArcSDE on different machines. We now recommend putting all components on a single two socket, dual core machine. This will comfortably support a workgroup or small enterprise user community. Only when the system needs to scale up to a larger group of users will you need to add more sockets to the server or more server tiers. Given that most users will now use direct connect to put SDE on the same sockets as the SOM/SOC, and that web application development is covered, only the additional sockets to run separate Web Tier deployments will cost more (and as I said earlier, these can be deployed on an entry level one socket machine).
The basic rule for new clients at 9.2 is ‘everything installed off the 9.2 server media requires a license’ and so we recommend installing and running everything on a single machine where possible. Only add additional sockets on the same machine, or different machines, when you need greater scalability. Given the performance of the current generation of hardware, we are seeing a single machine able to support 15 to more than 150 concurrent users depending on the type of operations being performed.
Existing ESRI users will be able to continue using their existing software on their existing licensed configuration for no additional cost. Customers on maintenance will receive an appropriate edition of ArcGIS Server 9.2 which they can run on the existing licensed hardware configuration for no additional software or maintenance fees.
For more details about migration see: [downloads.esri.com]





















