Straight Talk About the Cloud: Why Some Company's Are Leveraing Modern Technology and Others Are Not
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This presentation was the Q3 installment of BCS Prosoft's Executive Seminar Series: Your Firm In The Cloud. These lunch & learns were held throughout the month of September in San Antonio, Houston, Denver and Honolulu. This slideshow covers historical and current trends in business technology and what's most important to buyers today, the technical requirements, maintenance, cost and ROI of on-premise, hosted and cloud software, and the telltale signs that your firm should consider moving to the cloud at some point in the future. To register for a lunch & learn near you please visit http://www.bcsprosoft.com/cloud
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Straight Talk About the Cloud: Why Some Company's Are Leveraing Modern Technology and Others Are Not
- 2. http://www.bcsprosoft.com • Historical & Current Trends – Historical Trends in computing – What is important to buyers today? • On Premise, cloud, or hosted? – Understanding the differences – Cost, Maintenance, Hardware, and Software • Telltale signs you are ready for the cloud
- 3. http://www.bcsprosoft.com Contact Information Email: Clark.Haley@bcsprosoft.com Phone: (800) 882-6705 LinkedIn: www.linkedin.com/in/clarkhaley
- 9. http://www.bcsprosoft.com A. 1999, by Al Gore B. 1879, by Thomas Edison C. 1969, by a group of DOD scientists
- 11. http://www.bcsprosoft.com On Premise IaaS PaaS Storage Servers Networking O/S Middleware Virtualization Data Applications Runtime Storage Servers Networking O/S Middleware Virtualization Data Applications Runtime Youmanage Managedbyvendor Managedbyvendor Youmanage Youmanage Storage Servers Networking O/S Middleware Virtualization Applications Runtime Data SaaS Managedbyvendor Storage Servers Networking O/S Middleware Virtualization Applications Runtime Data
- 12. http://www.bcsprosoft.com • All resources managed by the end-user organization. • Everything is private and controlled. Storage Servers Networking O/S Middleware Virtualization Data Applications Runtime Youmanage
- 13. http://www.bcsprosoft.com On Premise IaaS Storage Servers Networking O/S Middleware Virtualization Data Applications Runtime Storage Servers Networking O/S Middleware Virtualization Data Applications Runtime Youmanage Managedbyvendor Youmanage • Virtual infrastructure • Virtual desktop • Backup and recovery • Managed cloud security
- 15. http://www.bcsprosoft.com On Premise IaaS PaaS Storage Servers Networking O/S Middleware Virtualization Data Applications Runtime Storage Servers Networking O/S Middleware Virtualization Data Applications Runtime Youmanage Managedbyvendor Managedbyvendor Youmanage Youmanage Storage Servers Networking O/S Middleware Virtualization Applications Runtime Data
- 17. http://www.bcsprosoft.com On Premise IaaS PaaS Storage Servers Networking O/S Middleware Virtualization Data Applications Runtime Storage Servers Networking O/S Middleware Virtualization Data Applications Runtime Youmanage Managedbyvendor Managedbyvendor Youmanage Youmanage Storage Servers Networking O/S Middleware Virtualization Applications Runtime Data SaaS Managedbyvendor Storage Servers Networking O/S Middleware Virtualization Applications Runtime Data
- 18. http://www.bcsprosoft.com Q? A Your Business Branch Office Your Vendors or Partners Help Desk Development Data Center Operations Vendor provides software application, hardware infrastructure, backup/security and support in exchange for a fee Access and fees are based on usage (Subscription) Application is delivered over a web browser or other thin client over a secure internet connection Physical backend hardware infrastructure is shared among many different customers – but logic and data is kept separate for each customer (Multi-tenant) Secure Infrastructure
- 19. http://www.bcsprosoft.com • Cloud Vendors talk about the Return on Investment (ROI) of Cloud Computing • Consider the hard costs, of course, but the soft costs are where the true payoff is • Think of Cloud as “Out Sourcing”
- 20. http://www.bcsprosoft.com Item Comments Server(s) Don’t forget to factor in lifespan/replacement Data Backup Off Site, incremental, recovery Software Purchase Original purchase of software Software Maintenance & Support Annual fee paid to publisher Cost to Upgrade Labor to perform the upgrade & related training Server Room Expense Cost of space, Security, etc. IT Management Fees In house or outsourced Spam/Malware Protection Protection for the server
- 21. http://www.bcsprosoft.com Item Comments Cost of not upgrading software No use of new features/efficiencies Down time due to lack of proper security Malware, lost/stolen data Server breakdowns bad power supply, circuit boards, etc. Data restore issues No working backup Downtime due to loss of facilities Fire, storm, etc. Scalability Costs related to business fluctuations
- 22. http://www.bcsprosoft.com • Going to the cloud is likely NOT going to be cheaper in hard dollars invested • Don’t forget to allow for the soft costs • Think Outsourcing (like payroll/hr and accounting) • Let the experts do what the experts do!
- 23. http://www.bcsprosoft.com 1. Your business is increasingly mobile 2. You have a costly infrastructure upgrade ahead of you 3. Your business is growing 4. If you aren’t upgrading, you aren’t innovating 5. Your current software may be “cloud capable”
- 24. http://www.bcsprosoft.com • Apply Fixes, Patches, Upgrade • Downtime • Performance tuning • Rewrite customizations • Rewrite integrations • Upgrade dependent applications • Subscription fee • Training • Configuration • Ongoing burden on IT • Maintain/upgrade hardware • Maintain/upgrade network • Maintain/upgrade security • Maintain/upgrade database • Training Ongoing Costs Ongoing Costs On-Premises Software Cloud Computing
- 25. http://www.bcsprosoft.com Typical IT Budget Allocation 91% Maintenance Current 66% on old versions 9% Innovation The Result? VERSION-LOCK
- 26. http://www.bcsprosoft.com • It’s not an “All or Nothing” move • Technology is only ONE reason to move • Security concerns shouldn’t stop you • Your Internet connection can make or break the initiative
- 28. http://www.bcsprosoft.com Your Firm in the Cloud How to Calculate the ROI of Cloud Computing • Denver – December 5 • Honolulu – December 10 • Houston – December 17 • San Antonio – December 18
- 29. http://www.bcsprosoft.com • Complete the on-line Cloud readiness survey www.bcsprosoft.com/cloud • We will provide – Cloud Readiness Report – Copy of this presentation Clark Haley Clark.haley@bcsprosoft.com (800) 882-6705 Join me on linkedin: http://www.linkedin.com/in/clark haley
Hinweis der Redaktion
- Course Synopsis:
- In a moment, I’m going to ask you to introduce yourself and I’m going to ask you to tell me what you are hoping to get from attending this meeting. The first thing we'll do is talk a bit about how we got to where we are. Next we'll discuss the current trends and define some terminology for you. Next we'll compare and contrast Cloud vs. On Premise. Including a bit about ROI of Cloud and what you should consider when calculatingWith your new knowledge of the cloud, we'll discuss how you know if it's time for you to start investing in cloud based productsFinally, we’ll end this session with Q&ABefore we begin, let’s do a bit of housekeepingThis is a “No Spin Zone.” There isn’t any blue or red in the room which means that I’m going to present the facts without a slant one way or the other – and you’ll decide how you feel about the cloud. RestroomsTime CheckQuestions before we begin?
- Ha! I was doing this presentation a few days ago in San Antonio and one of the attendees stopped me and said, “What decade was THAT picture taken in!” And I had to admit, it wasn’t even taken in this CENTURY!
- There really is no one correct answer to the question of Cloud vs. On Premise. So if you came to this event today, expecting to leave with a clear answer on where to go for your company, SORRY, but I'm going to disappoint you. There is a trend towards outsourcing IT services to the cloud, but that doesn't mean that putting applications in the cloud is right for every company in every instance. For example, believe it or not, there are areas where high quality, fast, and reliable internet connectivity doesn't exist. If you have a business in an area that can't get service, you really don't have any choice but to purchase on-premise software and access it through your internal network. In addition, some businesses have very unique requirements and need an industry specific solution. Vertical solutions tend to be laggards when it comes to technology, therefore the software you need to run your business may not be available as a cloud solution.
- Believe it or not, the beginning of “cloud” computing was in the 1950’s when companies like IBM set up large main frames that were so expensive to purchase and maintain that most companies could not possibly afford them. The result was the Sharing of resources by multiple organizations. This was accomplished through telephone connections to the mainframe and dumb terminals at the remote sites. This was called “Time Sharing” and was popular in to the 1980’s when PC’s and local networking became widely available.
- During the 1980’s business began to move away from early time-share computing and bring computing power in house. As is common with any new developing technology, there were a lot of networking products available – some of which you may remember – and some are still around today.In the category of centralized processing (mini computing): IBM RISC 6000MAI Basic 4SCO UnixEtc. In the category of distributed computing (Local Area Networks): Novell NetwareARCNetWindows ServerEtc. We can debate all day long whether or not the best technology won the battle, but it is very clear that Microsoft was the big winner, beating out some pretty solid competitors for the right to dominate the Local Area Network Server software market.
- What’s the old phrase? “What goes around comes around!”Cloud computing is, with some extensive technological advances, essentially the same concept as the Time Sharing that became popular in the 60’s and 70’s. Cloud computing today is much more powerful today and technology advances give us access to the data any time and anywhere, but it still is a remake of an old movie. But is that bad? Possibly not. What caused computer sharing to fall out of favor in the past was a limitation of technology – processing speed, useability, and access speed.
- 82% of midsize companies already have remote workforce, telecommuting is becoming the norm. Mobile workforce possible with cloud
- Computer-to-Computer communication expanded when DOD established four notes on the ARPANET: UC Santa Barbara, UCLA, SRI International, and U of Utah. ARPANET's designers set out with several goals: direct use of distributed hardware services; direct retrieval from remote, one-of-a-kind databases; and the sharing of software subroutines and packages not available on the users' primary computer due to incompatibility of hardware or languages. But the Internet was NOT intended to be used by business or for pleasure. It took a couple of decades for technology to catch up and allow an opening for business to find a way to exploit the technology.
- So, before we continue, let’s do a quick recap…It feels a bit like we've returning to the "Good Old Days" when software was leased from large companies like IBM. In reality what we're able to offer today with SaaS technology is very different, but the concept is similar. At the dawn of computerization for small/medium sized businesses, you would sign a contract with IBM, Digital, Honeywell, etc.
- We really need to better define what is pushed to the Cloud and how that correlates to what you are currently doing today. We classify the outsourcing to the cloud three ways: IaaS – Infrastructure as a ServicePaaS – Platform as a ServiceSaaS – Software as a ServiceLet’s talk about each of these in a bit more detail
- Most likely, you are currently accessing your critical business systems in an “On Premise” model. In other words, you have a server(s) located at your office that store all your programs and data. This(these) servers are networked to your PC’s in the office so that everyone has access. You are totally responsible for the care & maintenance of the server(s) as well as securing and backing up your data. In most organizations, this is the most vulnerable method of business systems delivery.
- Infrastructure as a Service is the most basic of services. Think of this as having your server hosted by a 3rd party service. Vendors gain ECONOMIES OF SCALE by employing Virtualization to lower costs of maintaining multiple servers. In San Antonio, we have Rack Space
- Many companies that talk about having a “Cloud Solution” are really just offering their products in a hosted or “Infrastructure as a Service” environment.
- Platform as a Service takes on more responsibility for the infrastructure in that the database is also managed by the vendor. Think of this as a set of building blocks provided by a 3rd party and you are responsible for building what you want IN THEIR SANDBOX. MS Ajure, Google App Engine, etc.
- A number of vendors have specialized in provide PaaS including Google with their App Engine and Microsoft with Windows Azure. You are still responsible for managing and updating the application programs as well as the content delivery.
- So finally we come to Software as a Service, in which the vendor manages all aspects of your business management systems. Servers, data, backup, and applications are all managed by the vendor.
- There has to be a return for your investment, but calculating the ROI is not always as easy as adding up the hard costs. There are many soft costs to consider and they are sometimes hard to see or understand. For some organizations, this calculation is VERY easy, for others, the benefits to going cloud are more subtle. For others, there is no way to justify the cost of moving to the cloud.
- Here are some relatively easy items to include in your ROI. Generally these are “hard/fixed” costs like your servers, software purchases, etc.
- The non-cash items are sometimes difficult to calculate and add in to an ROI calculation, but I would argue that they are the most important items to consider when comparing a cloud solution with your on premise software.
- In terms of HARD CASH, I think you’ll end up writing a check for more each year than you would if you kept your business software on premise, but the soft costs play an important role in the decision. Many of you already out source many of the services in your business. Payroll is a good example, but you also likely outsource the cost preparing tax returns and a number of other tasks that require a specific type of expertise.
- Going Mobile – you need to give anytime/anywhere access to your remote employeesYour old server(s) are dying and you are faced with a costly upgrade. Knowing ahead of time what applications can be moved to the cloud and what must remain on premise will help you determine what your hardware investment must look like – for example, rather than purchasing a new exchange server in our office, we outsourced the exchange server and retired a large, expensive, but dyeing server. Growing Business – if your business is in a growth mode, you’ll almost certainly need to make infrastructure investments to handle the growth. Consider investing in a scalable cloud solution rather than buying more hardware that will likely need to be replaced in 2-7 years. Innovation – Many businesses delay the upgrade of their software to the most current version of the software and yet, newer version of the software almost ALWAYS have advanced capabilities that are needed. Stifling the use of new features stunts business growth and/or lowers profitabilityMany software packages can be moved to the cloud in a IAAS invironment
- But there’s another more sinister cost associated with On-Premise implementations. It’s called “Version Lock.”91% of all IT Budgets are focused on maintaining the status quo and only 9% is allocated towards innovation. The result? 66% of all customers running on-premise business management systems are on OLD VERSIONS of the software. Why is this important? Because companies that don’t stay current on their software will get locked in to the “OLD WAY” of doing business and won’t innovate. But it gets worse – After 4-6 years of being locked in to an old version of the software, the cost of upgrading is as much or more than the cost of changing systems entirely, so many business owners/managers opt to change entire systems. Businesses running on Cloud products are automatically updated as new version become available – it’s part of the fee. Plus, since vendors need to keep you on the current version, they have to make available training so that you’ll know what’s new in the software.
- Remember that you don’t have to do everything at once. Some applications may be perfect for outsourcing right now and others may not be good candidates now or in the foreseeable future And don’t get too hung up on the technology. Remember that this is just a tool – like a shovel is to a ditch digger. Make sure you have the best shovel for the dirt that you need to dig up!Security on the internet should NOT be on your list of items to be concerned about. The server that sits in your office today is far more at risk to security breeches than if your data were hosted in the cloud. Most Cloud vendors offer 99.9% (and better) up time today with little or no latency. The connectivity issue you need to worry about is on your side. If you only have a single connection to the internet with limited bandwidth, you’re making a mistake. Whether you have any applications running in the cloud or not, you need good, fast, reliable access to the internet at your offices. Consider going with the highest speed you can afford and don’t forget to bring in a backup service. In our office, we have fiber optic cable and a backup T1 which we purchased through a different vendor that uses a different trunk line. If our internet goes down, we lose phones, remote office connectivity, access to the web, etc. We (and YOU) can’t afford to be down today.
- That’s it for this session of our series called, “Your Firm in the Cloud.” Next quarter we’ll continue the discussion around Return on Investment and give you detailed instructions on how to calculate the ROI of Cloud Computing.
- We want to help you get the most from these sessions, so we invite you to visit our site /cloud and take the Cloud Readiness Survey. Based on your answers, we’ll prepare a document and arrange to meet with you to review the results. Once you have completed the survey, we will also provide you with a copy of this presentation. Finally, I thank you for taking the time to be here with me today. Here is my contact information. Feel free to contact me at any time with questions/comments.