This document discusses how cloud computing can provide benefits to small and medium-sized enterprises (SMEs). It outlines how cloud services have evolved from earlier hosted systems by providing economies of scale, reducing costs, and allowing for scalable resources on demand. The document then discusses how the cloud can help SMEs by providing access to sophisticated software and analytics tools. It also notes concerns around data privacy and security for businesses considering cloud adoption. Overall, the cloud is positioned as potentially helping SMEs reduce costs while gaining access to flexible IT resources and applications.

1. The Impact of Cloud Computing on SME’s
Why You Need to Put Your Head in the Cloud

2. People in it but you can’t see it!
A Cloud has something in
different
locations see the
same thing.
Everyone who shops on Amazon or searches on Google or
posts on Facebook is using the cloud.

3. Evolution of Hosted Systems
• Everything old is new again – Why?
• Time share/service bureau of 60’s (Utility model)
• ASP’s of early 21st century
• 60’s high cost of mainframes
• Early 21st century – high cost of people to
implement and manage software.
• GOAL: Cost effective business systems

4. Evolution of Hosted Systems
• Hosted systems can reduce Total Cost of
Ownership – ready made infrastructure
• Solves scarce resource problem – Time & Talent
• Convergence of software and communications
network – inexpensive bandwidth
• Object oriented programming
• Software becomes a service - scalable

5. Equal Needs - Unequal Resources
Big Business Needs Small Business
Sales
Orders
Inventory
Expenses
CRM
Resources

6. Trends Affecting Software
• More sophisticated systems
• More flexible and feature rich apps
• Easy to use tools for customization
• Shorter cycles between upgrades
• Better communications infrastructure

7. Hosted Apps Infrastructure
ACCPAC Client
ACCPAC Company
Program A
Files ACCPAC Client
Program Backup LAN
Internet
ACCPAC
Data Company
Company A B
Backup Company A LAN ACCPAC Client
ACCPAC
Data NT/SQL Server Citrix Server
Company B
Backup Company B
ACCPAC Client
Up to 8 Companies
Internet
Report Server E-mail Server WWW.server

8. Has Become Cloud Infrastructure
The Perceived “Cloud” Benefits Are:
1.) Economies of scale and knowledge (cheaper and better)
2.) Lower barrier to entry (software, hardware, development)
3.) Reduced costs (maintenance, upgrades, enhancements)

9. Influence of “GEN Y” (15 TO 25)
• Sense of entitlement – “Want it now!”
• Expect “FREE” access to info & products
• Value shared “Experience” - “Community”
• GEN Y desire freedom and decision making
• Motivated by idealism and shared intelligence
• Boomers and GEN X - Aspire to Acquire
• Cars (AutoShare), Music (MP3BEE) – “Rent”

10. Some Stats To Ponder
• IDC – By 2012 85% of new software delivered
as a service rather than a physical product.
• McAfee and Carnegie Mellon University (May
2010 survey) – 49% of respondents claim to
be “very” or “extremely” reliant on mobile
devices. 1 year later – 70% (35% email addicts)
• IDC - 96% of Employees under 45 have a smart
phone. 63% use business devices for personal

11. 3 Levels of Cloud Based Delivery Methods
• SaaS: offers a contractual service to deploy, host,
manage and rent access to an application from a
centrally managed facility. They are responsible
for … managing a software application or a set of
applications. Example would be Google’s Gmail.
• PaaS: Platform as a service provides operating
Systems, databases & tools running on hardware
managed by a Vendor. MS Windows Azure
platform is an example. “Your stuff is hosted.”

12. 3 Levels of Cloud Based Delivery Methods
• IaaS: Infrastructure as a service allows users to
manage their own applications, data and
operating systems leaving servers, storage and
networking to a vendor. Focuses on management
of the network and servers. “Other’s stuff hosted”
• Infrastructure includes “virtualization”
Which option is right for your business depends on
how much control you want over your company’s
software and computing resources.

13. http://www.katescomm
ent.com/iaas-paas-saas-
definition/

14. What is Virtualization?
• In computing, virtualization means to create a
virtual version of a device or resource, such as a
server, storage device, network or even an
operating system where the framework divides
the resource into one or more execution
environments. Even something as simple as
partitioning a hard drive is considered
virtualization because you take one drive and
partition it to create two separate hard drives.

15. Public Versus Private Cloud
• You can host your own cloud infrastructure
• OR you can outsource the infrastructure.
• Public Cloud places data control (Security and
uptime) outside the company’s 4 walls.
• Privacy concerns slowing adoption of Saas in
HR and Finance.

16. Cloud Poll Dec 2011
• 30% of SMBs are using paid cloud services
– 25% between two and 10 employees
– 53% between 26 and 50 employees
– 60% with 101 to 250 workers
• 48% plan to subscribe within 2 to 3 years.
• 22% have no plans to use cloud services.
• Only 51% understood that cloud computing referred
to "rented" business-computing services provided
through the Internet

17. Cloud Poll Dec 2011
• 54% expect cloud computing to save money
• 47% anticipate becoming more productive.
• Concerns:
• 44% think cloud services are unproven & risky.
• 51% say data privacy is an issue
• Only 20% believe that data is less secure in the
cloud than in on-premise systems.

18. Lower TCO
1) Lower barrier to entry
and rapid time to
implement
2) Lower costs of
maintaining applications, IT
skills and staff (economies
of scale)
Source: Aberdeen Group, June 2010

19. Is The Cloud Really Cheaper?
1) TCO argument falls apart when adding in software, services, hardware
and on-going maintenance – Exit and switching costs.
2) Showing accumulated costs over time (above) shows 3-4 year breakeven
where SaaS becomes more expensive

20. Goal of Cloud Computing
• Gartner Hype Cycle for Cloud Computing,
2012, the best results are being attained by
enterprises that focus on a very specific strategy
and look to cloud-based technologies to
accelerate their performance. Leading with a
strategic framework of goals and objectives
increases the probability of cloud-based platform
success. Those enterprises that look to cloud
platforms only for cost reduction miss out on
their full potential.

21. End-To-End Integration
Browser
SMART Phone
Web Site/Store CRM
Accounting
Warehouse Supply Chain

22. Hype Cycle for Cloud Computing

24. Cloud Computing Priorities
• By 2014 the Personal Cloud will have replaced the
personal computer as the center of user’s digital
lives. (Platform as a Service)
• Private Cloud Computing is among the highest
interest areas across all cloud computing according
to Gartner, with 75% of respondents in Gartner polls
saying they plan to pursue a strategy in this area by
2014. major goal the evaluation of
virtualization-driven value and benefits.

25. Cloud Computing Priorities
• SaaS is rapidly gaining adoption in enterprises,
leading Gartner to forecast more than 50% of
enterprises will have some form of SaaS-based
application strategy by 2015. Factors driving this
adoption are the high priority enterprises are putting
on customer relationships, gaining greater insights
through analytics, overcoming IT- and capital budget-
based limitations, and aligning IT more efficiently to
strategic goals. (Integration & Customization barriers)

26. SaaS Revenue on the Rise
• Gartner Study – Saas Revenue hit $12.3 Billion
in 2011 – an increase of $2 Billion from 2010.
$14.5 Billion in 2012 - $22.1 Billion by 2015.
• Largest segment of the SaaS industry is CRM -
$3.8 Billion.
• CCC (Content, communications and
collaboration) is close behind at $3.1 B.

27. Importance of Software
• Automates processes
• Analytical tools to spot trends (knowledge)
• Improves decision making/collaboration
• Requires:
– Fast implementation – increase efficiency
– Seamless integration – increase productivity
– Scalability – reduce IT complexity

28. Cloud Computing Priorities
• Bottom line: Gartner’s latest Hype Cycle
for Cloud Computing shows that when cloud-based
platforms are aligned with well-defined
strategic initiatives and line-of business objectives,
they deliver valuable contributions to an
enterprise. It also shows how Infrastructure as
a Service (IaaS) and Platform as a Service (PaaS) are
the catalysts of long-term market growth.
• Real Time Value Network – fully networked business

29. Target Customer Profile
• Any company struggling to keep up with the
changes in technology

30. Target Customer Profile
• Multiple/branch office scenario
• Little or no IT expertise/infrastructure
• Windows users looking to upgrade to web
• Interested in E-Commerce – Supply Chain
• Start Up business (time to market)
• Fast growing or reorganizing company
• Competitive industry

31. Benefits of Cloud Model
• More accountability
• Manage cash flow
• Quick implementation
• Current technology
• Enable B2B Marketplaces
• Utilize Internet appliances

32. When Should You Adopt The Cloud?
• Companies with no IT infrastructure
• Quick time to market is important
• Use common/standard applications
• IT people not available
• Competitive pressure
• Provider understands your business

33. Opportunities or Risks?
• Cloud services provide opportunities
• New Companies – Wikipedia, eBay
• New Corporate Structures
– Infrastructure without hierarchy
• New Business Models - Google
• EVEN New Industries - CrowdSourcing
– Collective/Social Intelligence (InnoCentive)
• “Risk is the mirror image of opportunity.”

34. Where Can The Cloud Take You?
18 Possible Destinations:
1) Collaboration – shared access to documents & schedules.
2) Content Management – update internal/external websites.
3) Customer Relationship Management (CRM).
4) Document Management – storage, release and revisions.
5) Email – malware protection, integration requirements.
6) Employee Performance Management – HR need?
7) Employee Self Service – timesheets, vacation requests.
8) Enterprise Resource Planning – integrated bus. processes.
9) Expense Management – Employee or company.

35. Where Can The Cloud Take You?
18 Possible Destinations :
10) Financial Accounting – auto tax updates, storage, backup.
11) Marketing Automation – analytics, lead generation (CRM).
12) Project Management – access to track progress.
13) Sales Automation – qualify leads, pricing, integration mkt.
14) Supply Chain Planning & Mgmt. – production, shipping.
15) Talent Management – hiring, compensation.
16) Transportation Management – logistics, route optimizer.
17) Warehouse Management – picking, packing.
18) Web Conferencing – remote presentations/meetings.

36. Considerations For Moving to the Cloud
• Replace or Add Functionality – Effectiveness?
• Changes to User Interface & Functionality
• Planning Matters – Support & Updates
• License Costs – Over Time versus Up Front
• ROI – Based on increased productivity
• Data Migration – Integration to new service
• Comparing Providers – SLA’s, redundancy.
• Trouble Shooting & Training – Good Level 1.

37. What to Look For in a Provider
• Understands your business & industry
• Provides on-site services when necessary
• One point of contact for issues
• Low cost high bandwidth connection
• Broad range of services (Co-location)
• Customization
• Strong financial backing

38. What’s Next?

39. Is Your Future Looking Cloudy?
• Identify gaps in your business such as access &
mobility to determine if the cloud can help.
• Evaluate new business opportunities where the
cloud can create efficiencies.
• Assess public versus private cloud capabilities
in light of security and disaster recovery.
• Understand impact on organizational processes

40. Do You Want To:
• Delegate your IT headache to someone else out
there?
• Focus on what you really want/need from your
system?
• Pay only for what you use?
• Scale up/down your resources dynamically on
demand?

41. Questions?
(Got Your Head in the Cloud)