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1 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
AX in the Cloud
April 2013
Cloud Enabling Your Organization
Flexibility ▪ Agility ▪ Control
2 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
We Are Outsourcing
& Cloud Management Experts
A Diverse, Growing Customer Base
• Over 150 customers. 45 countries. 6 continents.
• Over 960 customer sites supported worldwide 24/7.
• ERP focus on Microsoft.
• Cloud solutions for IaaS, PaaS, SaaS.
• 7 DC outside of natural disaster zones.
• 98% Contract Renewal Rate since inception.
• 92% of revenue from outsourcing and managed services.
• Recognized by Gartner Group, Black Book of Outsourcing for
market leadership in the Managed Services Cloud space.
• Operating unit of TDS Telecommunications Corporation since
2011.
3 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Selection of AX Customers
• One of the only hosting companies in North
America to offer complete end-to-end hosting
services, including numerous integrations of
third party specialty applications such as
Enterprise Portal (EP), BizTalk, Hyper-V
• Hosting some of the largest Dynamics AX
environments in the U.S. today
• Decrease deployment time and increase
flexibility for go-live and disaster recovery
through the following Dynamics AX offerings:
 Virtual Private Server Option
 AX in the Cloud Option
4 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
• @OneNeck:
– Director of Enterprise Products
– Director of OneNeck Cloud Competency Center (OC3)
• Prior to OneNeck:
– Over 25 years of business operations, applications, and
technology solutions.
– CIO for Whirlpool Financial, KEVCO Manufacturing &
Distribution, and PacifiCorp Financial.
– CTO at CSC for Sun Microsystems, Program Director at CSC for
General Dynamics.
– Senior Global Director of Procurement and Technology
Research for Whirlpool Corp.
• Certified PMP, ITIL v3, Six Sigma Green Belt.
• Masters in Marketing, Finance & Supply Chain
Management from Western Michigan University &
University of Texas at Arlington.
About the Speaker: Anicetus Fernando
5 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Agenda
Cloud is your future data center, and your data center is your cloud
AX in the Cloud
Cloud Enabling Your Organization
Flexibility ▪ Agility ▪ Control
Quick Cloud
Review
Cloud Transitioning
Considerations
Cloud Enabled
Advantage
Migration &
Deployment
6 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Cloud Reality
Almost everyone’s doing “something” in the Cloud
Cloud Computing Evolution. Research Report, Sept. 2012.
WaveLength Market Analytics LLC and Winn Technology Group, Inc.
The steady evolution of powerful
computing technology, plentiful Internet
network bandwidth, constant pressure on
CIOs to do more with less, and the rapid
growth of mobile applications all
contribute to the increasing adoption of
cloud computing services.
A
B
7 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Cloud Benefactors
IT tools and apps, moving to the Cloud
Cloud Computing Evolution. Research Report, Sept. 2012.
WaveLength Market Analytics LLC and Winn Technology Group, Inc.A
C
B
D
8 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Cloud Drivers
Rapid growth in outsourcing & cloud services due to benefits of drivers.
Cloud Computing Evolution. Research Report, Sept. 2012.
WaveLength Market Analytics LLC and Winn Technology Group, Inc.A
B
C
AX In-House (CapEx) AX in the Cloud (OpEx)
Wasted capacity = Wasted CapEx
9 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Managed Services Concerns
Reduced control… a transformation factor of cloud
…the market for cloud usage is growing, the adoption rate continues to suffer from the perception that it is a risky endeavor. Panorama’s experience has shown that providers
typically have more secure and reliable solutions than any internal IT group ever could. Panorama Consulting Solutions, Denver CO. 2013 ERP Report.
10 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Agenda
Cloud is your future data center, and your data center is your cloud
AX in the Cloud
Cloud Enabling Your Organization
Flexibility ▪ Agility ▪ Control
Quick Cloud
Review
Cloud Transitioning
Considerations
Cloud Enabled
Advantage
Migration &
Deployment
11 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Critical Decisions: Litmus Test
Understanding Core
• Litmus test to evaluate what is “core” to a business:
– If you are starting your business from scratch today, would you
build this capability internally?
– Would other companies hire you to do this for them?
– Will tomorrow’s leaders of the company come from this area of
the business?
– Does this process create or defend a unique competitive
advantage for your firm?
– Is this business process directly contributing to business growth
or expansion?
– Are you receiving world-class services at a competitive cost
today?
• If you answered “NO” to two or more of these
questions, chances are you are a good candidate for
cloud managed services & outsourcing .
Source: Michael F. Corbett of FirmBuilder.com developed litmus test.
12 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Critical Decisions: Strategy
Understanding Importance & Managed Services Strategy
• Understanding core business
processes and managed services
elements of IT.
• Different managed services
journeys:
– Manage technology elements of IT to
cut costs (efficiency).
– Manage technology elements of IT to
cut costs and find ways for incremental
business process operations
improvement (enhancement).
– Manage technology and/or business
process elements to reengineer
(enhancement).
– Manage technology and/or business
process elements to the next level of
business execution (transformation).
13 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Critical Decisions: CSFs
Matching risks & rewards to organization culture
A
B
14 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Critical Decisions: Go/No Go
To Outsource or Not to Outsource?
• Exercises:
– If you answered “NO” to two or more of these questions,
chances are you are a good candidate for using managed
services.
– Understanding core business processes and managed
services elements of IT.
– Matching risks & rewards to your organization culture.
• To outsource or not to outsource:
– Can you relinquish control to a third party?
– Can you stomach this simple premise that you may not be calling all the
shots?
• Make a decision to take advantage of the cloud.
15 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Governance: Strategy
Preparing for Marriage
“An outsourcing relationship is like a marriage. The
romance of the courtship or the airtight codicils of the
prenuptial agreement do not contribute to the ongoing
strength of the relationship.”
• Involve the right people to compare, on an apples-to-apples
basis, the provider’s capabilities, strengths, weaknesses, agility
and flexibility.
• Skills to manage the provider is different from the skills
required to run an IT department.
• More mission critical the need, greater the need for “high-
touch” delivery, cultural alignment and clear process for
governance.
• Align the relationship on principles and guidelines instead of
rules to prevent erosion of value and preservation of the “end-
user” experience.
• Don’t build a structure that motivates your provider to merely
satisfy the contract as opposed to delivering value beyond the
statistics.
Source: Mike Atwood. Everest Group article The Art of Governance
16 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Governance: Operational
A Framework for Success—Tactical to Operational
“Minimize Disruption to Business
Operations” & “Reduce operations
risk for IT and business” two key
principles to governance requires:
• Strategic, Tactical , and Operational
Alignment
• Value Delivery i.e. Optimizing Costs
• Resource Management, i.e. Alignment
of Resources
• Risk Management i.e. Compliance,
Reduce Operational Risks.
• Performance Measurement i.e.
Production, Project, Delivery and
Performance.
A
B
17 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Essential Metrics
What does success look like?
• According to a Gartner Group study, 38% of the respondents
indicated dissatisfaction with managed services providers.
• Ideas and questions to consider for success:
– Senior leadership involvement
– Resilience of communication
– Creating a mindset of “provider as an extension of IT” by finding providers who are
partners.
– Revisiting business objectives for outsourcing periodically and realigning with the
provider.
– Go beyond just focusing on price to get the most of the relationship.
– Customer care
– SLAs
– QoS
– IT best practices
– Problem resolution.
– Flexibility.
MIT's Center for Information Systems Research (CISR) found that “transaction relationships” – which are clearly
defined in terms of the processes they cover and enhance – lead to greater customer satisfaction than any other
types of outsourcing relationship.
18 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Agenda
Cloud is your future data center, and your data center is your cloud
AX in the Cloud
Cloud Enabling Your Organization
Flexibility ▪ Agility ▪ Control
Quick Cloud
Review
Cloud Transitioning
Considerations
Cloud Enabled
Advantage
Migration &
Deployment
19 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
AX in the Cloud
Cloud Managed Services Offering
AX in the Cloud:
 User based monthly licensing fees
 Minimum one month contract term
 99.9% SLA with ITIL & Six Sigma Cloud
Managed Services
 Licensing excluding Dynamics AX access
licenses
 Production & Test environment
 DB Storage: 50GB + 2GB per Core* user
 Secured Web based access
 Patching & code migration
 Backup
 SSAE16 SOC 1 Type 2
 Unlimited bandwidth
 U.S. based 24x7 worldwide support
 Optional Dynamics AX SPLA licenses
available
 MS Gold certified hosting & MBS
certified resources.
*Core user: Enterprise, Functional, Task user as defined by Microsoft AX license.
20 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
On-Premise vs. AX in the Cloud
 AX in the Cloud:
 100 AX Enterprise users.
 User based monthly licensing fees
 Minimum one month contract
term
 99.9% SLA with ITIL & Six Sigma
Cloud Managed Services
 Licensing excluding Dynamics AX
access licenses
 Production & Test environment
 Secured Web based access
 Patching & code migration
 Backup
 SSAE16 SOC 1 Type 2
 Unlimited bandwidth
 U.S. based 24x7 worldwide
support
 Optional Dynamics AX SPLA
licenses available
 MS Gold certified hosting & MBS
certified resources.
~70-80% Savings Using AX in the Cloud
 On-Premise:
 100 AX Enterprise users.
 Direct Server Hardware
• Hardware Purchase (13 Servers and SAN) -
cost/4 year straight line depreciation
• Hardware Annual Support & OS Licensing
 Labor
• AX and SQL Server Administration (1 FTE)
• SysAdmin, Network Admin, Security
Analyst, Backup Admin, etc. (1 FTE)
 Outside Services
• Iron Mountain Tape Rotation
• Annual Audit Costs
 Utilities
• Power Consumption Costs ($0.12 per kWH)
• HVAC Power Consumption Required
• Data Center Space
 Does not include 24x7 support
A
C
B
21 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Reasons for Implementing ERP
Top reasons by order of importance
Panorama Consulting, Denver CO.
http://Panorama-Consulting.com/resource-center/2013-erp-report/
AX in the Cloud:
 Provides computing capacity as
part of the service for business
performance and company
growth.
 Provides additional DB storage on
demand beyond Core.
 Value creation for your customers
by providing products and
services quicker without having to
wait for computing resources.
 Eliminate CapEx requirements
with predictable monthly
expenses.
 Time to deployment decreases to
catch up with your competitors.
22 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Benefits of AX in the Cloud
Cloud Enabled Advantage
Source: The Changing State of IT Operations. Reducing Complexity to Drive Business
Value. Forrester Research. October 2012.
A
B
AX in the Cloud:
 Eliminates complexity and
guarantees 99.9% SLA.
 Provides MS Gold certified
hosting & MBS certified
resources.
 Gives CIO and IT staff time to
focus on Business Process
Management and
communication with business.
AX in the Cloud:
 Eliminates impact to business by
allowing IT to provide what
business needs when it needs.
 Actively manages OS patches
that can become a lower priority
for in-house IT staff.
23 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Benefits of AX in the Cloud
Cloud Enabled Advantage (cont.)
B
AX in the Cloud:
 99.9% SLA on day 1.
 Cloud enable your ERP and in
a few days have a test and a
production environment ready
to go.
 Focus on business process
needs instead of IT needs.
AX in the Cloud:
 Satisfy business requirements of
performance, availability, time to
market and cost control.
A
Source: The Changing State of IT Operations. Reducing Complexity to Drive Business
Value. Forrester Research. October 2012.
24 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Flexibility to Grow
Cloud Enabled Advantage
25 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Agenda
Cloud is your future data center, and your data center is your cloud
AX in the Cloud
Cloud Enabling Your Organization
Flexibility ▪ Agility ▪ Control
Quick Cloud
Review
Cloud Transitioning
Considerations
Cloud Enabled
Advantage
Migration &
Deployment
26 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
1. Clearly define project goals:
 Determine if this upgrade is important to business or IT or both.
 Versions 3.0 and 4.0 are no longer supported by Microsoft.
 Old release use 32 bit hardware and old OS, and maintainability is difficult.
2. Understand new functionality:
 Use a SI for advise and/or upgrade/re-implementation.
 Old releases have business process limitations and “no support” makes it more
difficult for IT and business.
 New capabilities like HR, SRM (supplier relationship management), Payroll, are
now included in the core with features like multi-national planning and multisite.
 Enhancements in retail include retail data model, category management, promotion
management, etc.
 Enhancements in lean manufacturing and process manufacturing.
 Will acquisitions require these features, so understand the business strategy.
3. Move forward with future releases in mind:
 Minimize or eliminate customizations.
 Modify company process if necessary before customizations.
 Keep custom code in its own library separate from “core” AX code.
Source: Arbela Technologies. Arbelatech.com. Mar. 2013
Top 10 CSFs to AX in the Cloud (2012)
27 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Top 10 CSFs to AX in the Cloud (2012)
Continued
4. Determine roll out strategy:
 Location by location or all.
5. Be realistic with scope:
 Stick to scope and move additional changes to next phase.
 Agree with business to modules or transactions that are included.
6. Plan for data problems:
 Data architecture changes with AX2012.
 Upgrade may be too messy due to data issues, may require re-implementation.
7. Define report strategy and execution:
 Use of SQL Server Reporting Services (SSRS), 2012 R2 BI features, 3rd party, etc.
8. Keep the project moving:
 Keep team momentum.
 Address doubts, focus on mission.
9. Foster a culture of change:
 Encourage future updates and next phases.
10.Plan, re-plan and re-plan:
 Incorporating new releases during upgrade/re-implementation.
 Other organizational changes beyond control of project.
Source: Arbela Technologies. Arbelatech.com. Mar. 2013
28 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Costs, Functions, Features
Migrating from 2009 to 2012
 On avg. 1.5 to 4.5 times higher in cost for
ERP functions necessary to upgrade, run and
maintain AX 2012.
 Understand new licensing requirements,
from concurrent user to named user
(Enterprise, Functional, Task and Self Serve).
 Savings can come from AX in the Cloud
usage.
 Degree of fit denotes function and feature
changes in 2012.
 All modules available to be used for one
named user price.
A
B
Source: Arbela Technologies. Arbelatech.com. Mar. 2013
29 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Functional & Technical Changes
Examples
Functional Technical
Source: Microsoft Corp. Convergence 2013.
30 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Goals & Functional Analysis
Example
Source: Microsoft Corp. Convergence 2013.
31 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Upgrade or Re-Implement
Migrating to 2012 Consideration Example
 Standard: Upgradeable through a standard path. ~20-30% companies choose this option.
 Hybrid: Regular AX upgrade path while leveraging some of the new capabilities in AX 2012 like the
new product structure, etc. ~30% companies choose this option.
 Re-implement: If it was not set up properly in original system it's an opportunity to start fresh.
Includes data migration with new implementation. ~30-40% companies choose this option.
Source: Arbela Technologies. Arbelatech.com. Mar. 2013
32 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
On-Premise to AX in the Cloud
Source-to-target Migration Example
 If necessary involve a SI for advise and/or to perform the migration.
 Use Microsoft Sure Step methodology to ensure project management success.
 Use Microsoft RapidStart business process configurator to decrease time to
deployment
33 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
 Online user community for knowledge sharing:
 http://community.AXUG.com
 AXUG events:
 http://www.AXUG.com
AXUG
Join the User Group
34 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Hosted Application Management & More
CRM, Sharepoint, Exchange, Microsoft Technology Stack
• OneNeck provides a comprehensive set of Foundation
Application Services to support the Microsoft
Technology Stack, CRM, Sharepoint, Exchange
including management of database and application
layers.
• Currently supports over 100 different applications, with
special focus on Microsoft including including third-party
enhancement packages.
• For more information contact:
 Scott Fitzgerald. Regional Director, Southwest 512-565-4627.
 Rick Kanya. Regional Director, Northeast 914-715-7655
 JR Mariottini. Regional Director, Midwest 331-220-4875.
 Gill Shapira. Regional Director, West 650-759-9110 .
35 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Wrapping Up
Focus on success of the Relationship
 Focus on the managed services use holistically depending on the strategic
importance of the business process and the IT elements, not just on price.
 Cloud enable your ERP with AX in the Cloud.
 Recognize, value and encourage the ability of the provider to infuse best
practices and generate continual improvements.
 Flexible agreements encourage the sharing of risk and reward and the
extension of business value which are essential to mutual success.
 The provider has to be able to make a profit.
 Covered:
 Quick review of the cloud: who is using, how, for what?
 Making critical decisions ahead of time, governance and metrics.
 Advantages of AX in the Cloud, flexibility, agility and control.
 Migration from 2009 to 2012, what you need to know and focus on.
 Procurement managers are important but senior
executives from business and IT need to set business
goals and objectives of the relationship.
36 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Thank You!
Questions?
37 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Appendix
Referenced URLs
OneNeck IT Services
www.OneNeck.com
WaveLength Market Analytics
http://www.wlanalytics.com/
Winn Technology Group
http://www.winntech.net/
Panorama Consulting
http://Panorama-Consulting.com/resource-center/2013-erp-report/
Microsoft Dynamics AX 2012 (Oct) Systems Requirements
http://www.microsoft.com/global/sv-se/dynamics/PublishingImages/Microsoft-Dynamics-AX-2012_R2-
System-requirements.pdf
Microsoft Sure Step methodology
http://msdn.microsoft.com/en-us/library/dd979122.aspx
Microsoft RapidStart business process configurator
http://technet.microsoft.com/en-us/library/hh429439.aspx
Microsoft Dynamics Resource Library
http://www.microsoft.com/en-us/dynamics/resource-library.aspx
38 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.
Appendix
Microsoft Terminology
Common Microsoft Terminology
http://support.microsoft.com/kb/824684
• Cumulative update (CU): is a roll-up update that contains all previous critical on-demand hotfixes
to date. A CU contains fixes for issues that meet the hotfix acceptance criteria. These criteria may
include the availability of a workaround, the effect on the customer, the reproducibility of the
problem, the complexity of the code that must be changed, or other reasons.
Additional Information: This update can be requested by any customer, regardless of their support
level. These updates are released on every two months.
• Update Rollup: is a tested, cumulative set of hotfixes, security updates, critical updates, and
updates that are packaged together for easy deployment. A rollup generally targets a specific area,
such as security, or a component of a product, such as Internet Information Services (IIS).
Additional information: Microsoft update rollups are available for customers to download and are
accompanied by a Microsoft Knowledge Base article. Customers may not redistribute update
rollups without written, legal consent from Microsoft.
• Upgrade: is a software package that replaces an installed version of a product with a newer
version of the same product. The upgrade process typically leaves existing customer data and
preferences intact while replacing the existing software with the newer version.

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OneNeck AX in the Cloud Webinar Presenation

  • 1. 1 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. AX in the Cloud April 2013 Cloud Enabling Your Organization Flexibility ▪ Agility ▪ Control
  • 2. 2 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. We Are Outsourcing & Cloud Management Experts A Diverse, Growing Customer Base • Over 150 customers. 45 countries. 6 continents. • Over 960 customer sites supported worldwide 24/7. • ERP focus on Microsoft. • Cloud solutions for IaaS, PaaS, SaaS. • 7 DC outside of natural disaster zones. • 98% Contract Renewal Rate since inception. • 92% of revenue from outsourcing and managed services. • Recognized by Gartner Group, Black Book of Outsourcing for market leadership in the Managed Services Cloud space. • Operating unit of TDS Telecommunications Corporation since 2011.
  • 3. 3 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Selection of AX Customers • One of the only hosting companies in North America to offer complete end-to-end hosting services, including numerous integrations of third party specialty applications such as Enterprise Portal (EP), BizTalk, Hyper-V • Hosting some of the largest Dynamics AX environments in the U.S. today • Decrease deployment time and increase flexibility for go-live and disaster recovery through the following Dynamics AX offerings:  Virtual Private Server Option  AX in the Cloud Option
  • 4. 4 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. • @OneNeck: – Director of Enterprise Products – Director of OneNeck Cloud Competency Center (OC3) • Prior to OneNeck: – Over 25 years of business operations, applications, and technology solutions. – CIO for Whirlpool Financial, KEVCO Manufacturing & Distribution, and PacifiCorp Financial. – CTO at CSC for Sun Microsystems, Program Director at CSC for General Dynamics. – Senior Global Director of Procurement and Technology Research for Whirlpool Corp. • Certified PMP, ITIL v3, Six Sigma Green Belt. • Masters in Marketing, Finance & Supply Chain Management from Western Michigan University & University of Texas at Arlington. About the Speaker: Anicetus Fernando
  • 5. 5 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Agenda Cloud is your future data center, and your data center is your cloud AX in the Cloud Cloud Enabling Your Organization Flexibility ▪ Agility ▪ Control Quick Cloud Review Cloud Transitioning Considerations Cloud Enabled Advantage Migration & Deployment
  • 6. 6 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Cloud Reality Almost everyone’s doing “something” in the Cloud Cloud Computing Evolution. Research Report, Sept. 2012. WaveLength Market Analytics LLC and Winn Technology Group, Inc. The steady evolution of powerful computing technology, plentiful Internet network bandwidth, constant pressure on CIOs to do more with less, and the rapid growth of mobile applications all contribute to the increasing adoption of cloud computing services. A B
  • 7. 7 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Cloud Benefactors IT tools and apps, moving to the Cloud Cloud Computing Evolution. Research Report, Sept. 2012. WaveLength Market Analytics LLC and Winn Technology Group, Inc.A C B D
  • 8. 8 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Cloud Drivers Rapid growth in outsourcing & cloud services due to benefits of drivers. Cloud Computing Evolution. Research Report, Sept. 2012. WaveLength Market Analytics LLC and Winn Technology Group, Inc.A B C AX In-House (CapEx) AX in the Cloud (OpEx) Wasted capacity = Wasted CapEx
  • 9. 9 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Managed Services Concerns Reduced control… a transformation factor of cloud …the market for cloud usage is growing, the adoption rate continues to suffer from the perception that it is a risky endeavor. Panorama’s experience has shown that providers typically have more secure and reliable solutions than any internal IT group ever could. Panorama Consulting Solutions, Denver CO. 2013 ERP Report.
  • 10. 10 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Agenda Cloud is your future data center, and your data center is your cloud AX in the Cloud Cloud Enabling Your Organization Flexibility ▪ Agility ▪ Control Quick Cloud Review Cloud Transitioning Considerations Cloud Enabled Advantage Migration & Deployment
  • 11. 11 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Critical Decisions: Litmus Test Understanding Core • Litmus test to evaluate what is “core” to a business: – If you are starting your business from scratch today, would you build this capability internally? – Would other companies hire you to do this for them? – Will tomorrow’s leaders of the company come from this area of the business? – Does this process create or defend a unique competitive advantage for your firm? – Is this business process directly contributing to business growth or expansion? – Are you receiving world-class services at a competitive cost today? • If you answered “NO” to two or more of these questions, chances are you are a good candidate for cloud managed services & outsourcing . Source: Michael F. Corbett of FirmBuilder.com developed litmus test.
  • 12. 12 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Critical Decisions: Strategy Understanding Importance & Managed Services Strategy • Understanding core business processes and managed services elements of IT. • Different managed services journeys: – Manage technology elements of IT to cut costs (efficiency). – Manage technology elements of IT to cut costs and find ways for incremental business process operations improvement (enhancement). – Manage technology and/or business process elements to reengineer (enhancement). – Manage technology and/or business process elements to the next level of business execution (transformation).
  • 13. 13 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Critical Decisions: CSFs Matching risks & rewards to organization culture A B
  • 14. 14 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Critical Decisions: Go/No Go To Outsource or Not to Outsource? • Exercises: – If you answered “NO” to two or more of these questions, chances are you are a good candidate for using managed services. – Understanding core business processes and managed services elements of IT. – Matching risks & rewards to your organization culture. • To outsource or not to outsource: – Can you relinquish control to a third party? – Can you stomach this simple premise that you may not be calling all the shots? • Make a decision to take advantage of the cloud.
  • 15. 15 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Governance: Strategy Preparing for Marriage “An outsourcing relationship is like a marriage. The romance of the courtship or the airtight codicils of the prenuptial agreement do not contribute to the ongoing strength of the relationship.” • Involve the right people to compare, on an apples-to-apples basis, the provider’s capabilities, strengths, weaknesses, agility and flexibility. • Skills to manage the provider is different from the skills required to run an IT department. • More mission critical the need, greater the need for “high- touch” delivery, cultural alignment and clear process for governance. • Align the relationship on principles and guidelines instead of rules to prevent erosion of value and preservation of the “end- user” experience. • Don’t build a structure that motivates your provider to merely satisfy the contract as opposed to delivering value beyond the statistics. Source: Mike Atwood. Everest Group article The Art of Governance
  • 16. 16 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Governance: Operational A Framework for Success—Tactical to Operational “Minimize Disruption to Business Operations” & “Reduce operations risk for IT and business” two key principles to governance requires: • Strategic, Tactical , and Operational Alignment • Value Delivery i.e. Optimizing Costs • Resource Management, i.e. Alignment of Resources • Risk Management i.e. Compliance, Reduce Operational Risks. • Performance Measurement i.e. Production, Project, Delivery and Performance. A B
  • 17. 17 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Essential Metrics What does success look like? • According to a Gartner Group study, 38% of the respondents indicated dissatisfaction with managed services providers. • Ideas and questions to consider for success: – Senior leadership involvement – Resilience of communication – Creating a mindset of “provider as an extension of IT” by finding providers who are partners. – Revisiting business objectives for outsourcing periodically and realigning with the provider. – Go beyond just focusing on price to get the most of the relationship. – Customer care – SLAs – QoS – IT best practices – Problem resolution. – Flexibility. MIT's Center for Information Systems Research (CISR) found that “transaction relationships” – which are clearly defined in terms of the processes they cover and enhance – lead to greater customer satisfaction than any other types of outsourcing relationship.
  • 18. 18 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Agenda Cloud is your future data center, and your data center is your cloud AX in the Cloud Cloud Enabling Your Organization Flexibility ▪ Agility ▪ Control Quick Cloud Review Cloud Transitioning Considerations Cloud Enabled Advantage Migration & Deployment
  • 19. 19 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. AX in the Cloud Cloud Managed Services Offering AX in the Cloud:  User based monthly licensing fees  Minimum one month contract term  99.9% SLA with ITIL & Six Sigma Cloud Managed Services  Licensing excluding Dynamics AX access licenses  Production & Test environment  DB Storage: 50GB + 2GB per Core* user  Secured Web based access  Patching & code migration  Backup  SSAE16 SOC 1 Type 2  Unlimited bandwidth  U.S. based 24x7 worldwide support  Optional Dynamics AX SPLA licenses available  MS Gold certified hosting & MBS certified resources. *Core user: Enterprise, Functional, Task user as defined by Microsoft AX license.
  • 20. 20 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. On-Premise vs. AX in the Cloud  AX in the Cloud:  100 AX Enterprise users.  User based monthly licensing fees  Minimum one month contract term  99.9% SLA with ITIL & Six Sigma Cloud Managed Services  Licensing excluding Dynamics AX access licenses  Production & Test environment  Secured Web based access  Patching & code migration  Backup  SSAE16 SOC 1 Type 2  Unlimited bandwidth  U.S. based 24x7 worldwide support  Optional Dynamics AX SPLA licenses available  MS Gold certified hosting & MBS certified resources. ~70-80% Savings Using AX in the Cloud  On-Premise:  100 AX Enterprise users.  Direct Server Hardware • Hardware Purchase (13 Servers and SAN) - cost/4 year straight line depreciation • Hardware Annual Support & OS Licensing  Labor • AX and SQL Server Administration (1 FTE) • SysAdmin, Network Admin, Security Analyst, Backup Admin, etc. (1 FTE)  Outside Services • Iron Mountain Tape Rotation • Annual Audit Costs  Utilities • Power Consumption Costs ($0.12 per kWH) • HVAC Power Consumption Required • Data Center Space  Does not include 24x7 support A C B
  • 21. 21 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Reasons for Implementing ERP Top reasons by order of importance Panorama Consulting, Denver CO. http://Panorama-Consulting.com/resource-center/2013-erp-report/ AX in the Cloud:  Provides computing capacity as part of the service for business performance and company growth.  Provides additional DB storage on demand beyond Core.  Value creation for your customers by providing products and services quicker without having to wait for computing resources.  Eliminate CapEx requirements with predictable monthly expenses.  Time to deployment decreases to catch up with your competitors.
  • 22. 22 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Benefits of AX in the Cloud Cloud Enabled Advantage Source: The Changing State of IT Operations. Reducing Complexity to Drive Business Value. Forrester Research. October 2012. A B AX in the Cloud:  Eliminates complexity and guarantees 99.9% SLA.  Provides MS Gold certified hosting & MBS certified resources.  Gives CIO and IT staff time to focus on Business Process Management and communication with business. AX in the Cloud:  Eliminates impact to business by allowing IT to provide what business needs when it needs.  Actively manages OS patches that can become a lower priority for in-house IT staff.
  • 23. 23 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Benefits of AX in the Cloud Cloud Enabled Advantage (cont.) B AX in the Cloud:  99.9% SLA on day 1.  Cloud enable your ERP and in a few days have a test and a production environment ready to go.  Focus on business process needs instead of IT needs. AX in the Cloud:  Satisfy business requirements of performance, availability, time to market and cost control. A Source: The Changing State of IT Operations. Reducing Complexity to Drive Business Value. Forrester Research. October 2012.
  • 24. 24 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Flexibility to Grow Cloud Enabled Advantage
  • 25. 25 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Agenda Cloud is your future data center, and your data center is your cloud AX in the Cloud Cloud Enabling Your Organization Flexibility ▪ Agility ▪ Control Quick Cloud Review Cloud Transitioning Considerations Cloud Enabled Advantage Migration & Deployment
  • 26. 26 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. 1. Clearly define project goals:  Determine if this upgrade is important to business or IT or both.  Versions 3.0 and 4.0 are no longer supported by Microsoft.  Old release use 32 bit hardware and old OS, and maintainability is difficult. 2. Understand new functionality:  Use a SI for advise and/or upgrade/re-implementation.  Old releases have business process limitations and “no support” makes it more difficult for IT and business.  New capabilities like HR, SRM (supplier relationship management), Payroll, are now included in the core with features like multi-national planning and multisite.  Enhancements in retail include retail data model, category management, promotion management, etc.  Enhancements in lean manufacturing and process manufacturing.  Will acquisitions require these features, so understand the business strategy. 3. Move forward with future releases in mind:  Minimize or eliminate customizations.  Modify company process if necessary before customizations.  Keep custom code in its own library separate from “core” AX code. Source: Arbela Technologies. Arbelatech.com. Mar. 2013 Top 10 CSFs to AX in the Cloud (2012)
  • 27. 27 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Top 10 CSFs to AX in the Cloud (2012) Continued 4. Determine roll out strategy:  Location by location or all. 5. Be realistic with scope:  Stick to scope and move additional changes to next phase.  Agree with business to modules or transactions that are included. 6. Plan for data problems:  Data architecture changes with AX2012.  Upgrade may be too messy due to data issues, may require re-implementation. 7. Define report strategy and execution:  Use of SQL Server Reporting Services (SSRS), 2012 R2 BI features, 3rd party, etc. 8. Keep the project moving:  Keep team momentum.  Address doubts, focus on mission. 9. Foster a culture of change:  Encourage future updates and next phases. 10.Plan, re-plan and re-plan:  Incorporating new releases during upgrade/re-implementation.  Other organizational changes beyond control of project. Source: Arbela Technologies. Arbelatech.com. Mar. 2013
  • 28. 28 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Costs, Functions, Features Migrating from 2009 to 2012  On avg. 1.5 to 4.5 times higher in cost for ERP functions necessary to upgrade, run and maintain AX 2012.  Understand new licensing requirements, from concurrent user to named user (Enterprise, Functional, Task and Self Serve).  Savings can come from AX in the Cloud usage.  Degree of fit denotes function and feature changes in 2012.  All modules available to be used for one named user price. A B Source: Arbela Technologies. Arbelatech.com. Mar. 2013
  • 29. 29 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Functional & Technical Changes Examples Functional Technical Source: Microsoft Corp. Convergence 2013.
  • 30. 30 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Goals & Functional Analysis Example Source: Microsoft Corp. Convergence 2013.
  • 31. 31 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Upgrade or Re-Implement Migrating to 2012 Consideration Example  Standard: Upgradeable through a standard path. ~20-30% companies choose this option.  Hybrid: Regular AX upgrade path while leveraging some of the new capabilities in AX 2012 like the new product structure, etc. ~30% companies choose this option.  Re-implement: If it was not set up properly in original system it's an opportunity to start fresh. Includes data migration with new implementation. ~30-40% companies choose this option. Source: Arbela Technologies. Arbelatech.com. Mar. 2013
  • 32. 32 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. On-Premise to AX in the Cloud Source-to-target Migration Example  If necessary involve a SI for advise and/or to perform the migration.  Use Microsoft Sure Step methodology to ensure project management success.  Use Microsoft RapidStart business process configurator to decrease time to deployment
  • 33. 33 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.  Online user community for knowledge sharing:  http://community.AXUG.com  AXUG events:  http://www.AXUG.com AXUG Join the User Group
  • 34. 34 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Hosted Application Management & More CRM, Sharepoint, Exchange, Microsoft Technology Stack • OneNeck provides a comprehensive set of Foundation Application Services to support the Microsoft Technology Stack, CRM, Sharepoint, Exchange including management of database and application layers. • Currently supports over 100 different applications, with special focus on Microsoft including including third-party enhancement packages. • For more information contact:  Scott Fitzgerald. Regional Director, Southwest 512-565-4627.  Rick Kanya. Regional Director, Northeast 914-715-7655  JR Mariottini. Regional Director, Midwest 331-220-4875.  Gill Shapira. Regional Director, West 650-759-9110 .
  • 35. 35 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Wrapping Up Focus on success of the Relationship  Focus on the managed services use holistically depending on the strategic importance of the business process and the IT elements, not just on price.  Cloud enable your ERP with AX in the Cloud.  Recognize, value and encourage the ability of the provider to infuse best practices and generate continual improvements.  Flexible agreements encourage the sharing of risk and reward and the extension of business value which are essential to mutual success.  The provider has to be able to make a profit.  Covered:  Quick review of the cloud: who is using, how, for what?  Making critical decisions ahead of time, governance and metrics.  Advantages of AX in the Cloud, flexibility, agility and control.  Migration from 2009 to 2012, what you need to know and focus on.  Procurement managers are important but senior executives from business and IT need to set business goals and objectives of the relationship.
  • 36. 36 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Thank You! Questions?
  • 37. 37 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Appendix Referenced URLs OneNeck IT Services www.OneNeck.com WaveLength Market Analytics http://www.wlanalytics.com/ Winn Technology Group http://www.winntech.net/ Panorama Consulting http://Panorama-Consulting.com/resource-center/2013-erp-report/ Microsoft Dynamics AX 2012 (Oct) Systems Requirements http://www.microsoft.com/global/sv-se/dynamics/PublishingImages/Microsoft-Dynamics-AX-2012_R2- System-requirements.pdf Microsoft Sure Step methodology http://msdn.microsoft.com/en-us/library/dd979122.aspx Microsoft RapidStart business process configurator http://technet.microsoft.com/en-us/library/hh429439.aspx Microsoft Dynamics Resource Library http://www.microsoft.com/en-us/dynamics/resource-library.aspx
  • 38. 38 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Appendix Microsoft Terminology Common Microsoft Terminology http://support.microsoft.com/kb/824684 • Cumulative update (CU): is a roll-up update that contains all previous critical on-demand hotfixes to date. A CU contains fixes for issues that meet the hotfix acceptance criteria. These criteria may include the availability of a workaround, the effect on the customer, the reproducibility of the problem, the complexity of the code that must be changed, or other reasons. Additional Information: This update can be requested by any customer, regardless of their support level. These updates are released on every two months. • Update Rollup: is a tested, cumulative set of hotfixes, security updates, critical updates, and updates that are packaged together for easy deployment. A rollup generally targets a specific area, such as security, or a component of a product, such as Internet Information Services (IIS). Additional information: Microsoft update rollups are available for customers to download and are accompanied by a Microsoft Knowledge Base article. Customers may not redistribute update rollups without written, legal consent from Microsoft. • Upgrade: is a software package that replaces an installed version of a product with a newer version of the same product. The upgrade process typically leaves existing customer data and preferences intact while replacing the existing software with the newer version.