Moving to the Cloud - Risk vs. Reward. Presented at Green Data Center Conference: Innovation in the Cloud, by Steven Robert in San Francisco, CA - May 25th, 2011.

1. Moving to the Cloud Risk vs. Reward @StevenRobert Chief Information Officer Billhighway.com

2. ‘Quickbooks’ for Communities: 11 YearsOld Sustained 5-Year AnnualizedGrowth > 70% Transact ~$5M/Per Day (>$4B cumulative) Approaching 1M Customers! ~10M Pageviews/Month Online Billing, DonationsDues/FeesCollection [Patent-Pending] Cash & AccountingIntegration Membership Management

3. Alphabet Soup Cloud (Private, Public, Hybrid, Cloud 2.0) SaaS, PaaS, IaaS, NaaS, DaaS, CaaS 100% Web 3-Screens Ellison? *Image Courtesy: Wikipedia

4. Defined Platform or “Service”accessed over a network to provideadvanced, often transparent functionality for mass consumption and high-availability. Seasonal or as-neededutilizationis a classic use-case Evolutionary:ASP-> SaaS-> PaaS = Cloud.

5. Innovation Sources Technology Maturity Adoption

6. Trends Innovation Local motors can take a car from concept to creation in under 18 months. (Wired Magazine) Collaboration 81% correlation between collaboration and innovation. (Future Foundation, 2010) Social By 2012, 50% of businesses will use micro-blogging (Gartner, 2010) Mobility Smartphone sales to exceed desktop and notebook PCs in 2012. (Morgan Stanley, 2010)

7. Challenges Inhibitors Restricting Your Ability to Adapt: $8 out of $10 spent in IT is ‘dead money’, not contributing to business change or growth (Source: Garner, 2010) Complex Interfaces; applications often built for business process vs. usability Device Centric; limited productivity, restricted dependencies, minimal collaboration.

8. IT Value is Dead.Long Live Business Value Business Outcomes Are The Real And OnlyMeasure of IT Worth Shift FromAlignment To Engagement There Are No IT Projects (Really!) Enter: Revenue Performance Management

9. Opportunities Speed To Market Leverage 3rd Party APIs, Ecosystems and Frameworks Continuous Improvement; Fail Fast & Cheap Research & Development High Performance Computing “Cloud-Bursting” Agile Business Transformation Hybrid; Bridge Solutions to Migrate Toward Web Less Dollars Toward Infrastructure, More to Innovation

10. Transformation Cloud Driven By: Users & Customers Expectations Have Changed Information Based Technology Answer Business Problems First Ability To Be More SurgicalWhenMigrating Think Differently Add Value Quickly. Shorten Feedback Loops Change Mindset; Not A Marathon, Series Of Sprints Time to Value

11. Example BillhighwaySends>1M Emails/Month Outbound (via SendGrid/Return Path) Best Practices, DKIM, SPF 96% Delivery Rate Inbound (via MXLogic; now McAfee) >90% Spam (Filtered Prior To Our Network) Inbound Protection: AV/Anti-Spam & HA Full Time Staff: 0

12. Truths Not All Clouds Are CreatedEqual Truly Disruptive! Poor Connectivity != Cloud Standards Not FullyBaked GRC Still In Infancy Consumerization of IT (Simplicity, UX) Cloud = Modern Mainframe?

13. Live by the Cloud, Die by the Cloud Amazon Cloud Goes Down, TakesEvery Hot Startup With It. (April, 2011)

14. Magic Quadrant Comm-puting? Cisco, HP, IBM Verizon/Terremarkpartnership w/SAP? Conservative vs. Progressive?

15. Risks AssessYourRiskAppetite: MaturityLevels, Security, Compliance, Performance, Reliability Reliquishing Control of IT Assets HedgeRisk w/Cloud Broker? Service Intermediation Aggregation Arbitrage

16. Guidance Don’t Move for Technology Sake IdentifyWhat’sBroken Where Is Value, Lost or Opportunity? Embrace Change Consumers Are Driving Force Reduce Friction With An Open Mind PresentActionable Information Context Is Everything

17. Questions? Twitter: @stevenRobert Email: srobert@billhighway.com