IKIN Web ValueBrief v1

Business Value Estimate
IKIN
Proprietary & Confidential
Confluent is pleased to provide this information for your convenience, however, it is provided with the understanding
that Confluent is not engaged in rendering any professional advice. This document is provided for informational
purposes only and should not be used as the basis for making any business decisions. The results described in this
document are not guaranteed and the recipient hereby acknowledges that outcomes and results may differ.
1
IKIN | Business Value Assessment
Contents
Use Case.............................................................................................................................3
Benefit Area Summary........................................................................................................4
Driver Assumptions.............................................................................................................5
Financial Assumptions........................................................................................................6
Benefit Details....................................................................................................................8
Confluent vs Kafka: Why you need Confluent...................................................................11
Confluent offers the only Fully Managed Kafka Service....................................................13
2
Use Case
Open Source Kafka vs Confluent Cloud
Note:
To create a more accurate business model, one that is better aligned to your specific
environment and requirements, please reach out to our Business Value team via email
at bvc-team@confluent.io .
3 Year Summary
First Year Benefits Cumulative
Estimated Benefits $106,899 $320,697
Core Data Provided

Data Point Units Value
Average Write Throughput MBps 2.00
Data Retention Days 7
Data Fanout 3
3
Benefit Area Summary

Business Value Details First Year Benefits Cumulative
Estimate Reduction in Operations Costs $72,188 $216,564
Reduce Senior Staff Costs $36,750 $110,250
Reduce Support Staff Costs $35,438 $106,314
Estimate Reduction in Infrastructure Costs $34,711 $104,133
Reduce Storage Costs $14,176 $42,528
Reduce Compute Costs $12,000 $36,000
Reduce Network Costs $5,750 $17,250
Reduce Monitoring Costs $2,785 $8,355
4
Driver Assumptions Value

Kafka - Compute Requirements (Nodes) 6
The number of Nodes used in this estimate varies as the provided 'Average Write
Throughput in MBps' and 'Data Retention in Days' change. Of course each use
case and workload is slightly different, and architectures are tailored to the
specific requirements of the organization. When designing an architecture,
considerations such as workload characteristics, access patterns, SLAs, and cost
are very important, but they are too specific to cover here. This is intended to
provide a reasonable estimate of the Node count required to handle the provided
write throughput and retention for this estimation, a more customer specific node
count would be used in an actual analysis with our Business Value team.
Kafka - Network Data Requirements (GB) 287,520

To create a more accurate business model, one that is better aligned to your
specific environment and requirements, please reach out to our Business Value
team at bvc-team@confluent.io. The default estimate of Network traffic is
intended to drive a reasonable estimate of the Network costs required to handle
the provided write throughput, fanout and data replication for this estimation.
Kafka - Number of Environment Monitoring Solutions 1

We appreciate that the current (or planned) Kafka Monitoring Solution likely has
multiple software components integrated together (plus some FTE
build/maintenance effort) to deliver the solution. Default is set to 1 solution for
simplicity is this estimate
Kafka - Storage Required (GB) 11,813

Based on the provided 'Average Write Throughput' of X MBps, a default
Replication Factor of 3, the provided 'Data Retention' of Y days, a Target
Utilization of 60% (Best Practice approach) for storage devices, and an assumed
over-provisioned environment of 50%. This is intended to provide a reasonable
estimate of the GB required to handle the provided write throughput and
retention, a more accurate value would be calculated in an actual analysis with
our Business Value team.
Kafka senior FTEs 0.2

The number of senior full time employees (FTEs) that currently (or are planned to)
work on your OSS environment
Kafka support FTEs 0.27

The number of support full time employees (FTEs) that currently (or plan to) work
on your OSS environment
5
Financial Assumptions Value

Kafka - Annual Storage Cost per GB $1.20
Default - Based on a list price of $0.1 per GB per Month and 12 months in a year:
($0.1 x 12) = $1.20. This is intended to provide a reasonable estimate of the
Storage costs required to handle the provided write throughput and retention for
this estimation, a more customer specific cost would be used in an actual analysis
with our Business Value team.
Kafka - Average Annual Cost per Node $2,000.00

Default - Based on EC2 unreserved list price for an M5.xlarge node of $0.192 per
hour, and 8,760 hours in a year ($0.192 x 8,760 = $1,681.92 per node per year),
and rounded up to $2,000 as many customers use larger instances in their
clusters. This is intended to provide a reasonable estimate of the Node costs
required to handle the provided write throughput and retention for this estimation,
a more customer specific cost would be used in an actual analysis with our
Business Value team.
Kafka - Cost per GB of Network Traffic $0.02

The default cost used in this estimation is $0.01 per GB moved, but another
assumption is that the majority of enterprise environments will leverage multi-
availability zones in their architecture which requires network traffic to leave one
zone and enter another, therefore the actual default cost represented here is
$0.02 per GB of Network traffic. This is intended to provide a reasonable estimate
of the Network costs required to handle the provided write throughput, Fanout,
and retention for this estimation, a more customer specific cost would be used in
an actual analysis with our Business Value team.
Kafka - Average Annual Cost of Monitoring Solution $2,785.00

We appreciate that the current (or planned) Kafka Monitoring Solution likely has
multiple software components integrated together (plus some FTE
build/maintenance effort) to deliver the solution. Based on various customer
discussions, we find somewhere between 7% and 11% of the overall Kafka
environment infrastructure spend is the range of additional spend on monitoring.
Default used here is a reasonable estimate based on estimated Infrastructure
spend for the provided Average Write Throughput.
Kafka - Fully Burdened Annual Support FTE Cost $187,500.00

We captured the average Annual Salary for a Support (tier 1 - 2) type resource. To
approximate a fully loaded cost for this type of resource we have applied a default
50% uplift on top of their salary. Default is Support Salary x 1.5 = Fully Loaded
cost of a Support resource.
Kafka - Fully Burdened Annual Senior FTE Cost $262,500.00

We captured the average Annual Salary for a Senior (tier 3 / guru) type resource.
To approximate a fully loaded cost for this type of resource we have applied a
default 50% uplift on top of their salary. Default is Senior Salary x 1.5 = Fully
Loaded cost of a Senior resource.
6
7
Benefit Details
Reduce Senior Staff Costs
Description Formula
Confluent Cloud offers a suite of fully- Kafka senior FTEs 0.2
managed tools and connectors so your best X CFLT CC - Reduction in Senior Staff Costs 70%
people remain focused on your critical projects X Kafka - Fully Burdened Annual Senior FTE Cost
$262,500.00
and apps that drive competitive differentiation
and revenue – not maintaining or reviewing
Kafka performance. = $36,750 in year 1.
+ $36,750 in year 2.
+ $36,750 in year 3.
TOTAL: $110,250
Reduce Support Staff Costs
Description Formula
Confluent Cloud offers a suite of fully- Kafka support FTEs 0.27
managed tools and connectors so your best X CFLT CC - Reduction in Support Staff Costs 70%
people remain focused on your critical projects X Kafka - Fully Burdened Annual Support FTE Cost
$187,500.00
and apps that drive competitive differentiation
and revenue – not maintaining or supporting
Kafka. = $35,438 in year 1.
+ $35,438 in year 2.
+ $35,438 in year 3.
TOTAL: $106,314
8
Reduce Storage Costs
Description Formula
Current Kafka Infrastructure is replaced as Kafka - Storage Required (GB) 11,813
part of the Confluent Cloud commitment X CFLT CC - Reduction in Storage Cost 100%
X Kafka - Annual Storage Cost per GB $1.20
= $14,176 in year 1.
+ $14,176 in year 2.
+ $14,176 in year 3.
TOTAL: $42,528
Reduce Compute Costs
Description Formula
Current Kafka Infrastructure is replaced as Kafka - Compute Requirements (Nodes) 6
part of the Confluent Cloud commitment X CFLT CC - Reduction in Kafka Compute Cost 100%
X Kafka - Average Annual Cost per Node $2,000.00
= $12,000 in year 1.
+ $12,000 in year 2.
+ $12,000 in year 3.
TOTAL: $36,000
9
Reduce Network Costs
Description Formula
Current Kafka Infrastructure is replaced as Kafka - Network Data Requirements (GB) 287,520
part of the Confluent Cloud commitment X CFLT CC - Reduction in Kafka Network Costs 100%
X Kafka - Cost per GB of Network Traffic $0.02
= $5,750 in year 1.
+ $5,750 in year 2.
+ $5,750 in year 3.
TOTAL: $17,250
Reduce Monitoring Costs
Description Formula
Confluent Cloud is a PAAS offering, so Kafka - Number of Environment Monitoring Solutions 1
Confluent will operate and monitor your new X CFLT CC - Reduction in Monitoring Costs 100%
Kafka environment. Therefore, most of the X Kafka - Average Annual Cost of Monitoring Solution
$2,785.00
monitoring you already have in place for your
existing Kafka environment is no longer
necessary, we appreciate many customers still = $2,785 in year 1.
want to have some direct monitoring which is + $2,785 in year 2.

why we only claim a 70% reduction is this + $2,785 in year 3.
estimate.
TOTAL: $8,355
10
Confluent vs Kafka: Why you need Confluent
© 2023 Confluent, Inc. | Confluent.io

© 2023 Confluent, Inc. | Confluent.io
Confluent offers the only Fully Managed Kafka
Service

IKIN Web ValueBrief v1

Uploaded by

Copyright:

Available Formats

You might also like

IKIN Web ValueBrief v1

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

IKIN Web ValueBrief v1

Uploaded by

Copyright:

Available Formats

Business Value Estimate

Proprietary & Confidential

Core Data Provided

Benefit Area Summary

Estimate Reduction in Operations Costs $72,188 $216,564

Reduce Senior Staff Costs $36,750 $110,250

Reduce Support Staff Costs $35,438 $106,314

Estimate Reduction in Infrastructure Costs $34,711 $104,133

Reduce Storage Costs $14,176 $42,528

Reduce Compute Costs $12,000 $36,000

Reduce Network Costs $5,750 $17,250

Reduce Monitoring Costs $2,785 $8,355

Driver Assumptions Value

Kafka - Network Data Requirements (GB) 287,520

Kafka - Number of Environment Monitoring Solutions 1

Kafka - Storage Required (GB) 11,813

Kafka senior FTEs 0.2

Kafka support FTEs 0.27

Financial Assumptions Value

Kafka - Average Annual Cost per Node $2,000.00

Kafka - Cost per GB of Network Traffic $0.02

Kafka - Average Annual Cost of Monitoring Solution $2,785.00

Kafka - Fully Burdened Annual Support FTE Cost $187,500.00

Kafka - Fully Burdened Annual Senior FTE Cost $262,500.00

Reduce Senior Staff Costs

Reduce Support Staff Costs

Reduce Storage Costs

Reduce Compute Costs

Reduce Network Costs

Reduce Monitoring Costs

want to have some direct monitoring which is + $2,785 in year 2.

© 2023 Confluent, Inc. | Confluent.io

You might also like