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What Every CEO Needs to Know About The Cloud Computing Presented by Kent Erickson, President,
What Every CEO
Needs to Know
About The Cloud
Computing
Presented by Kent Erickson,
President, ChannelCloud
Presented by Kent Erickson, President, ChannelCloud
Presented by Kent Erickson, President, ChannelCloud

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Todays Agenda
Todays Agenda

What is Cloud Computing? • The Cloud is a Fundamental Shift in Computing • A Strategy for Implementing Cloud Computing • What are the Benefits to Business • What are the Risks to Business?

How do I Gain Competitive Advantage or Take Action

•   How do I Gain Competitive Advantage or Take Action

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Not That Long Ago….
Not That Long Ago….
Not That Long Ago….
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Not That Long Ago….
Not That Long Ago….
Not That Long Ago….
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Not That Long Ago….
Not That Long Ago….
Not That Long Ago….
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Not That Long Ago….
Not That Long Ago….
Not That Long Ago….
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Anyone Recognize This?
Anyone Recognize This?
Anyone Recognize This?
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Evolution Of Computing's Value
Evolution Of Computing's Value
Evolution Of Computing's Value
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Nephophobia

.

Nephophobia:# n .#a#fear#of#clouds##

Symptoms(may(include:(

breathlessness,*excessive*swea'ng,*nausea,*dry*

mouth,*feeling*sick,*shaking,*heart*palpita'ons,*

inability*to*speak*or*think*clearly,*a*fear*of*dying*or*

losing*control,*a*sensa'on*of*detachment*from*

reality*or*a*full*blown*anxiety*a>ack.**

You(are(not(the(only(one(to(suffer(from(this(phobia.**

* *

* *

88% (
88% (

88% (

Cloud is a Fundamental Shift in Computing

Mainframe Desktops & Servers (with iterations) Cloud Computing

& Servers (with iterations) •   Cloud Computing

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Mainframe Client/Server Internet/Web Cloud Computing
Mainframe Client/Server Internet/Web Cloud Computing
Mainframe Client/Server Internet/Web Cloud Computing

Mainframe

Mainframe Client/Server Internet/Web Cloud Computing
Mainframe Client/Server Internet/Web Cloud Computing

Client/Server

Mainframe Client/Server Internet/Web Cloud Computing

Internet/Web

Mainframe Client/Server Internet/Web Cloud Computing

Cloud

Computing

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How to Define Cloud Computing?

A Technical Definition of Cloud

Data Center Wide Area network Muti Tenancy Scalable Utility Pricing Internet

SAAS Google APPS Self Service IPAD / Tablets Office365 Virtualization

/ Tablets •   Office365 •   Virtualization

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NIST(Technical(Defini@on(

‘Cloud*compu'ng*is*a*model*for*enabling*

convenient,*onFdemand*network*access*to*a*shared*

pool*of*configurable*compu'ng*resources*(e.g.,*

networks,*servers,*storage,*applica'ons,*and*

services)*that*can*be*rapidly*provisioned*and*

released*with*minimal*management*effort*or*

service*provider*interac'on.’.*

service*provider*interac'on.’ .* NIST* *Na$onal(Ins$tute(of(Standards(and(Technology((NIST)(

NIST* *Na$onal(Ins$tute(of(Standards(and(Technology((NIST)(

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What is Cloud Computing?

It is not a Technology Revolution but rather a Business & Process Evolution.

It is about how Businesses use Cloud technologies to create competitive advantage

use Cloud technologies to create competitive advantage

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Define it from Business Owners View!
Define it from Business Owners View!

It is not about the technology . it is about the outcomes we can drive with the technology!

Gain Competitive Advantage Seeing Quantifiable Outcomes

Greater Agility & Speed Lowering Costs

Minimizing Risks

Serve the Client

Costs •   Minimizing Risks •   Serve the Client

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Business Owners Definition of Cloud Computing

Opex vr. Capexpay as you use resources

Utility Pricing

pay

for what you use

Shift of Risk to service provider

SMB = Big Boys

Speed & Agility Implement, adapt, enable

Scale both up & down

Focus on Businesses Real Core Competencies

Deploying strategic assets

Business Outcomes

Deploying strategic assets •   Business Outcomes

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Type of Clouds?
Type of Clouds?
Type of Clouds?
Type of Clouds?

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What is Impact of Cloud Technologies?
What is Impact of Cloud Technologies?
What is Impact of Cloud Technologies?
What is Impact of Cloud Technologies?

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Evolution Of Computing's Value
Evolution Of Computing's Value

Cloud and SAAS is part of bigger shift Device Specific to User Specific

Oriented around the User - Personalization Delivery counts more than device

Multiple Devices • Personality • Appliance Like • Choice • Always Connected/Continuous Computing/Attention • Flat IT

Connected/Continuous Computing/Attention •   Flat IT

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SAAS – Software as a Service
SAAS – Software as a Service

Almost all applications are moving towards SAAS model

100% of Microsoft Applications will be available in SAAS

Fast to implement

No/Little up front costs

Allows SMB companies to utilize same applications as Fortune 500

All Technology Integration is done and included

This is big enabler for Digicel Markets

•   This is big enabler for Digicel Markets

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Relative Cost Comparison

Relative Cost Comparison

Options For IT Delivery

On(Premise(

Client*owns*hardware*and* soSware* Dedicated*infrastructure** designed*for*peak*volume* Fixed*cost* CAPEXFintensive*
Client*owns*hardware*and*
soSware*
Dedicated*infrastructure**
designed*for*peak*volume*
Fixed*cost*
CAPEXFintensive*
Client*owns*risks*
PLATFORMFEESEXPENSERISK
OWNERSHIP

Managed(Services(

Client*or*provider*owns* hardware*and*soSware* Dedicated*infrastructure** designed*for*peak*volume*
Client*or*provider*owns*
hardware*and*soSware*
Dedicated*infrastructure**
designed*for*peak*volume*
Predictable*monthly*recurring*
fee*
Move*CAPEX*to*OPEX*
Client*and*provider*share*
risks*

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Cloud(Services(

Provider*owns*hardware*

and*soSware*

Shared*infrastructure*(mul'F

tenant)*provisioned*based*

on*usage*

U'lityFbased*pricing*

OPEXFintensive*

Provider*owns*risks*

090706_29*

Cloud Solutions To Date
Cloud Solutions To Date
Cloud Solutions To Date
Cloud Solutions To Date

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Traditional IT Value Stack
Traditional IT Value Stack
Create(Compe@@ve( Advantage ( Data(Mining( Knowledge(of(Transac@ons( Serve(Customer,(
Create(Compe@@ve(
Advantage (
Data(Mining(
Knowledge(of(Transac@ons(
Serve(Customer,(
Access(to(informa@on,(Easier(to((
Differen@ate,(Efficiencies (
interact,(Drive(out(overhead(
Accelerate(Strategy(&(Investment(
Value(&(Compe@@ve(Advantage(
Line(Of(Business(
Accoun@ng(specific,(Marke@ng(
Should(Return(Mul@ples(of($1(
Applica@ons(
specific,(Job(&(Product(Cos@ng(
Invested(
Ver@cal(Applica@ons(
Financials,(CRM,(SFA,(eVCommerce (
Customiza@on(
Mainstream((
Word,(Excel,(Email (
Applica@ons(
Hardware(
Reduce(Cost(
Focus(on(Efficiencies(
Majority(of(Businesses(Focus(
Servers,(OS,(Backup,(Email,(Security(
Returns(<($1(
Cabling(,(Wireless,(Routers,(
Infrastructure (
Switches,(UPS(
Low
High
Infrastructure ( Switches,(UPS( Low High

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Adoption in Business
Adoption in Business

Small / Medium Businesses < 250 people

 

Very large improvement

 
 
 

Little barriers to adoption

 
 

Opportunity to re-architect Quickly

Cost Implications are material

Opportunity

to change cost structure

Medium to Large Businesses

>250 <2500

 

Begin with workloads…email, collaboration, desktops

Longer lead time because of integrations

More custom applications Require long time frames for planning, budgeting, approval, roll out

Larger Businesses

>2500

 

Same as Medium but with even longer lead times

Potentially large cost savings

Large increase in agility

large cost savings •   Large increase in agility

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What are the Benefits
What are the Benefits

Shift Risk of Operation Away from Company Drive Cost Lower Pay as you consume (Opex vs. Capex Pay for only what you need Improve Agility and Speed of Organization IT not required as core competency Deliver Resources Anywhere Anytime, Anyplace Little Guy has same resources as big Dog

IT not required as core competency Deliver Resources Anywhere Anytime, Anyplace Little Guy has same resources
IT not required as core competency Deliver Resources Anywhere Anytime, Anyplace Little Guy has same resources
IT not required as core competency Deliver Resources Anywhere Anytime, Anyplace Little Guy has same resources
IT not required as core competency Deliver Resources Anywhere Anytime, Anyplace Little Guy has same resources
IT not required as core competency Deliver Resources Anywhere Anytime, Anyplace Little Guy has same resources
IT not required as core competency Deliver Resources Anywhere Anytime, Anyplace Little Guy has same resources
IT not required as core competency Deliver Resources Anywhere Anytime, Anyplace Little Guy has same resources
Anytime, Anyplace Little Guy has same resources as big Dog

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Roles and responsibilities not yet well-defined     Much of the industry is still trying to figure it out   Not all Much of the industry is still trying to figure it out   Roles and responsibilities not yet well-defined     Not all partners will survive the transition Not all partners will survive the transition

"
"
  Much of the industry is still trying to figure it out   Not all partners
  Much of the industry is still trying to figure it out   Not all partners
  Much of the industry is still trying to figure it out   Not all partners
What are the Risks
What are the Risks

Learning Curve • Connectivity • Security • Migration • Ownership of Data • Contractual • Integration • Line of Business Apps • Current IT Staff

•   Line of Business Apps •   Current IT Staff

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What Are Potential Problems?
What Are Potential Problems?

Connectivity • Security • Existing Investment • Current IT Staff • Emotional • Complete New Learning Curve • Legal Requirements

Complete New Learning Curve •   Legal Requirements

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Selling the Cloud
Selling the Cloud

Sell Outcomes • Complete Solutions to Drive Margins • Education is Key • Cloud Readiness Assessments • Total Cost of Ownership • Stacked Chart on Strategy

Total Cost of Ownership •   Stacked Chart on Strategy

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What goes in the cloud
What goes in the cloud

You can put all your business tools from email to critical business applications in the cloud

email to critical business applications in the cloud …
email to critical business applications in the cloud …
email to critical business applications in the cloud …

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Who is a Good Fit?
Who is a Good Fit?

Business’s < 250 employees • Sweet Spot is 15 to 150 employees • Multiple Offices • Variability in Head Count • Remote Workers • Focus on Core Competency • Bad Track Record with IT

Focus on Core Competency •   Bad Track Record with IT

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Cloud Assessment
Cloud Assessment
Cloud Assessment
Cloud Assessment

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Total Cost Of Ownership (TCO)
Total Cost Of Ownership (TCO)
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What solutions can we offer?
What solutions can we offer?

Private Clouds for Clients • Line of Business Applications • Hosted Email, Office, CRM • Accounting Applications • Disaster Recovery Solutions • Off Site Data • SAAS Applications • Managed Services

Data •   SAAS Applications •   Managed Services

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Great Value Proposition
Great Value Proposition

A business can get a completely new computing platform closely aligned with their strategic and operating goals for the same price they are paying to maintain the old system

the same price they are paying to maintain the old system

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