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What Every CEO

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

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Not That Long Ago.
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Not That Long Ago.
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Not That Long Ago.
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Not That Long Ago.
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Anyone Recognize This?
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Evolution Of Computing's Value
Nephophobia
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nephophobla" $! % &'%( )& *+),-.
Symptoms may |nc|ude:

breaLhlessness, excesslve sweaung, nausea, dry
mouLh, feellng slck, shaklng, hearL palplLauons,
lnablllLy Lo speak or Lhlnk clearly, a fear of dylng or
loslng conLrol, a sensauon of deLachmenL from
reallLy or a full blown anxleLy auack.

ou are not the on|y one to suer from th|s phob|a.


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Mainframe
Desktops & Servers (with iterations)
Cloud Computing
Cloud is a Fundamental Shift in Computing
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Mainframe
Client/Server
Cloud
Computing
Internet/Web

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How to Define Cloud Computing?


Data Center
Wide Area network
Muti Tenancy
Scalable
Utility Pricing
Internet
SAAS
Google APPS
Self Service
IPAD / Tablets
Office365
Virtualization
A Technical Definition
of Cloud
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NIST* !"#$%&#' )&*$+,+- %. /+#&0#10* #&0 2-34&%'%56 7")/28

'Cloud compuung ls a model for enabllng
convenlenL, on-demand neLwork access Lo a shared
pool of congurable compuung resources (e.g.,
neLworks, servers, sLorage, appllcauons, and
servlces) LhaL can be rapldly provlsloned and
released wlLh mlnlmal managemenL eorL or
servlce provlder lnLeracuon.'.
NIS1 1echn|ca| Dehn|non
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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
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Define it from Business Owners View!
Gain Competitive Advantage
Seeing Quantifiable Outcomes
Greater Agility & Speed
Lowering Costs
Minimizing Risks
Serve the Client
It is not about the technology!.
it is about the outcomes we can drive with
the technology!
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Opex vr. Capex!pay 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
Business Owners Definition of Cloud Computing
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Type of Clouds?
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What is Impact of Cloud Technologies?
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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
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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
Relative Cost Comparison
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O
W
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M

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S

E
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Cn rem|se Managed Serv|ces C|oud Serv|ces
CllenL owns hardware and
soware
uedlcaLed lnfrasLrucLure
deslgned for peak volume
llxed cosL
CALx-lnLenslve
CllenL owns rlsks
CllenL or provlder owns
hardware and soware
uedlcaLed lnfrasLrucLure
deslgned for peak volume
redlcLable monLhly recurrlng
fee
Move CALx Lo CLx
CllenL and provlder share
rlsks
rovlder owns hardware
and soware
Shared lnfrasLrucLure (mulu-
LenanL) provlsloned based
on usage
uullLy-based prlclng
CLx-lnLenslve
rovlder owns rlsks
Options For IT Delivery
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Cloud Solutions To Date
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Traditional IT Value Stack
Create Compennve
Advantage
Data M|n|ng
know|edge of 1ransacnons
Serve Customer,
D|erennate, Lmc|enc|es
Access to |nformanon, Las|er to
|nteract, Dr|ve out overhead
L|ne Cf 8us|ness
App||canons
Accounnng spec|hc, Markenng
spec|hc, Iob & roduct Cosnng
Vernca| App||canons
Custom|zanon
I|nanc|a|s, CkM, SIA, e-Commerce
Ma|nstream
App||canons
Word, Lxce|, Lma||
nardware
Servers, CS, 8ackup, Lma||, Secur|ty
Infrastructure
Cab||ng , W|re|ess, kouters,
Sw|tches, US
Acce|erate Strategy & Investment
Va|ue & Compennve Advantage
Shou|d keturn Mu|np|es of 51
Invested
keduce Cost
Iocus on Lmc|enc|es
Ma[or|ty of 8us|nesses Iocus
keturns < 51
L
o
w

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i
g
h

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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 workloadsemail, 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
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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
Roles and
responsibilities
not yet well-defined
Much of the industry is
still
trying to figure it out
Not all partners will
survive
the transition
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What are the Risks
Learning Curve
Connectivity
Security
Migration
Ownership of Data
Contractual
Integration
Line of Business Apps
Current IT Staff


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What Are Potential Problems?
Connectivity
Security
Existing Investment
Current IT Staff
Emotional
Complete New Learning Curve
Legal Requirements
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Selling the Cloud
Sell Outcomes
Complete Solutions to Drive Margins
Education is Key
Cloud Readiness Assessments
Total Cost of Ownership
Stacked Chart on Strategy
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What goes in the cloud
You can put all your business tools from email to
critical business applications in the cloud!
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Who is a Good Fit?
Businesss < 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
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Cloud Assessment
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Total Cost Of Ownership (TCO)
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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
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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
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