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Date: May 4 th, 2011 Collaboration in the Cloud An Exploration of Cloud Applications in Vertical Industries.

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Presentation on theme: "Date: May 4 th, 2011 Collaboration in the Cloud An Exploration of Cloud Applications in Vertical Industries."— Presentation transcript:

1 Date: May 4 th, 2011 Collaboration in the Cloud An Exploration of Cloud Applications in Vertical Industries

2 - 2 - Project BlueSky UWCC_SamplePresentation2.pptx Project Blue Sky was undertaken to double the revenue of the cloud computing business in 10 years As Deloitte consultants, we were asked to conduct a week-long assessment of the cloud computing market and make recommendations on the most attractive industry vertical The Three Types of Cloud Computing: Running head Cloud Computing is the Cost-Saving, Scalable Platform of the Future Infrastructure as a Service: Compute, storage, network, and operations resources Platform as a Service: Tools and environments to build applications and services Software as a Service: On-demand use of software

3 - 3 - Project BlueSky UWCC_SamplePresentation2.pptx Running head Industry Ratings & Analysis  Time to Implementation: 4 –Somewhat Integrated already; Moderate awareness  Market Growth Rate: 4 –7.4%  Risk Tolerance: 4 –Mid/Low Information Sensitivity  Decentralization: 3 –Combo of Sm & Lg companies  % Change in IT Spending: 4 –4.2% Arts & Entertainment  Time to Implementation: 5 –High awareness & cloud integration intentions  Market Growth Rate: 5 –10.3%  Risk Tolerance: 3 –Moderate Information Sensitivity  Decentralization: 5 –Many players involved  % Change in IT Spending: 3 –3.4% Life Sciences  Time to Implementation: 2 –Policy Restraints  Market Growth Rate: 1 –3%  Risk Tolerance: 1 –High Information Sensitivity  Decentralization: 1 –One main player  % Change in IT Spending: 1 –1.1% Government  Time to Implementation: 2 –Lack of Infrastructure  Market Growth Rate: 3 –6 %  Risk Tolerance: 5 –Moderate Information Sensitivity  Decentralization: 5 –Many players involved  % Change in IT Spending: 4 –3.4% Retail Despite the existence of many attractive markets, Life Sciences emerged as the industry with the most promising opportunities for your company Sources: Gartner: 2011 Top IaaS predictions, 2011.; Deloitte: Choices and Capabilities in Life Sciences, 2011.; Deloitte: Future of the Life Sciences Industry, 2009.; IBM: The Wisdom of the Cloud, 2011.; HP: Cloud Computing in the Media & Entertainment Industry, 2011.; US CIO: Federal Cloud Computing Strategy.; Forrester: Industry Innovation in Retail, 2011. AVERAGE: 4.2 AVERAGE: 1.2AVERAGE: 3.8

4 - 4 - Project BlueSky UWCC_SamplePresentation2.pptx Defining the Life Sciences Industry, Key Functions for Businesses, and Applicable Businesses Within the Industry Running Head Research and DevelopmentManufacturingDistributionSales and Marketing Key business function that allows a company to differentiate and create innovative products. Producing and potentially designing the goods necessary to distribute. Connecting the different components of the value chain. Works with manufacturers and end users. Commercializing the product and introducing the general public to the produce. Types of Applicable Businesses Within Life Sciences  Pharmaceuticals  Healthcare  Biotechnology  Medical Devices  Contract Research Organizations R & D Manufacturing Distribution Sales/Marketing Key Functions for the Businesses Within Life Sciences What is Life Sciences?  The Life Sciences industry encompasses a wide variety of companies that range from biotech companies to medical products to pharmaceutical products. The process of businesses in this industry is that through many different players, the research discoveries of firms are transformed into commercially accepted products by the general public. Key business functions that improved with cloud computing are listed below. Specific types of businesses proposed to target are also listed below. Sources: Deloitte White Papers Life Sciences Industry

5 - 5 - Project BlueSky UWCC_SamplePresentation2.pptx Life Sciences is an Industry with Growing Demand for Cloud Computing and Many Unmet Customer Needs Running head Soucre: Deloitte Life Sciences White Papers Implicit industry trends that drive the need for cloud computing  Rising demand for clinical trials and trial research  Push for faster development of drugs  Growing market for advanced drugs  Increase in outsourcing of company functions to global locations Explicit needs for cloud computing within Life Sciences  Need for large amounts of data storage  Need to reduce costs  Need for continuous innovation Changing Landscape within Life Sciences  Industry consolidation  Mergers and acquisitions across the industry  Entrance into new markets

6 - 6 - Project BlueSky UWCC_SamplePresentation2.pptx Running head Application of the Cloud Within the Life Sciences Industry Utilizes IaaS  Specific application example: –Computing a large quantity of data, such as DNA, with more speed and efficiency  Benefits Derived: –Ease in modeling and simulation –Analyzing clinical trials –Computational research and testing Utilizes IaaS  Specific application example: –Accessing research data from a different organization and collaborating  Benefits Derived: –Research partnering –Clinical trial partnering –Joint sales and marketing CollaborationAnalytics Utilizes PaaS  Benefits Derived: –User acceptance testing –Large system stress testing Development Tool Utilizing the Cloud Sources: IBM Global Business ServicesThe Wisdom of the Cloud 2010

7 - 7 - Project BlueSky UWCC_SamplePresentation2.pptx Running head Application of the Cloud: Top-down Industry Model How can the cloud help the Life Science industry as a whole?  Create a communication channel between –Consumers and R&D –Marketing and R&D Examples of cloud usage in this vertical model.  A web application for consumers to interact with pharmaceutical companies –Provide feedback, product ideas, concerns, etc.  A web application for doctors to submit patient data and prescription information R&DManufactureDesignDistributionConsumer Source: Rhodes, John, and Dean Arnold. "The Future of the Life Sciences Industries: Transformation amid Rising Risk." (March 2009). Web.

8 - 8 - Project BlueSky UWCC_SamplePresentation2.pptx Running head Positioning The Company & Services: “We Have a Prescription for You!” Campaign Educate our sales team about the: –Life Sciences industry as a whole –Specific customer needs within the industry –Tangible and intangible benefits of cloud computing within this industry Raise Awareness and Build Brand Loyalty through: –Ads in Biotech/ Pharmaceutical magazines –Sponsorship of a Symposium Set Goals for the Sales Team –Quotas for partnerships –Hosting workshops –Attending marketing events Promote Specific Benefits through: –Direct Personal Selling to larger companies –Participating in product showcases among large companies Sales Team Education Launch Marketing Campaign 1 2 Proposed Company Revenue Model Computing Rates Standard On-Demand Instances Small InstanceMedium InstanceLarge Instance $0.01$0.14$0.40 $0.12$0.25$0.50 Hi-Memory On-Demand Instances Extra LargeDouble Extra LargeQuadruple Extra Large $0.50$1.15$2.28 $0.70$1.40$2.76 Hi-CPU On-Demand Instances MediumLargeExtra Large $0.20$0.60$0.76 $0.30$1.10$1.30 *These rates are per hour Storage First 1 TBNext 100TBNext 500TB $0.15/GB$0.12/GB$.110/GB *$0.01 per 10,000 storage transaction Data Transfer First 1 GB / month Up to 10TB/ month Next 100 TB/month Transfer -in$0.100/GB$.100/GB Transfer-out$0.000 / GB$0.150 / GB$0.90/GB

9 - 9 - Project BlueSky UWCC_SamplePresentation2.pptx Running head Risks of Entering the Life Sciences Market and Ways to Mitigate Them Deloitte white paper studies show R&D collaboration is favorable  Optimization of: –Focus –Cost –Flexibility Education and awareness program through sales team  Elements of Cloud Computing  Security Guarantee Warranty/Insurance Sales team educates client on how entire aspect of the cloud works  Support Team Making specific benefits of the cloud clear to the industry  Personal Selling  Scientific Magazines Biotech magazines  Symposium Sponsorships Sensitivity of Info Conflicts of Interest TransparencyLack of Awareness Training of Sales Team Goal Setting for Sales Team Launch of Marketing Campaign to Raise Awareness & Increase Brand Loyalty Implementation of Collaboration and Analytics within the Industry ( Iaas) Implementation of the Development Tool (Paas) International Expansion Re-evaluation Present: 2011 Year 1: 2012 Year 2: 2013Header: 2014 Timeline of Project BlueSky

10 - 10 - Project BlueSky UWCC_SamplePresentation2.pptx Full Cloud Computing Integration in a Vertical Market Life Sciences presents an opportunity to vertically integrate because of the unmet customer needs within the market Running head Cost Reduction Data Storage Innovation Because of Implicit Industry trends towards the cloud, the following applications can be used Collaboration Analytics Development We can use these three applications to tighten the linkages within the industry from R & D all the way to Consumer with a top- down cloud computing approach 2 1 2 3 Sales Team Education Launch Marketing Campaign 1 2 OPERATIONS WITHIN THE COMPANY By the successful implementation of cloud computing within the attractive Life Sciences vertical market, we will be able to double revenues of the company within the next ten years

11 - 11 - Project BlueSky UWCC_SamplePresentation2.pptx Main Presentation Analysis of the Cloud Computing Industry Today Industry Ratings and Analysis Defining the Life Sciences Industry Demands and Needs for Cloud Computing Within Life Sciences Applications of the Cloud Within Life Sciences Application of the Cloud: Top Down Industry Model Positioning the Company and Services Risks and Mitigation / Timeline Conclusion Appendix Items Industry Analysis Metrics SWOT Analysis of the Company Major Players in Cloud Computing Major Life Sciences Companies Marketing and Raising Awareness Project Life Cycle Projected Costs of Positioning Company Strategically Questions?

12 - 12 - Project BlueSky UWCC_SamplePresentation2.pptx Running head SWOT Analysis of Company  Industry-specific know how for various vertical markets is lacking  Corporate Strategy in relation to expansion is not clearly outlined  Integration in to attractive vertical markets  Expansion of sales strategy  Expansion of industry-specific employee training & Education  Privacy/ Sensitivity of Information  Initial hesitance to Collaborate because of perceived conflicts of interest  Transparency within the Industry  Existing Sales Infrastructure  Existing Brand Awareness  Pioneered IaaS within the cloud computing industry  Expansion of brand awareness strategies  Offering innovative applications of cloud computing within Life Sciences  Eventual international expansion  Brand Awareness within a specific industry Bullet Strengths Weaknesses Opportunities Threats  Strong presence in the cloud computing market  Resources Allocated for Project Blue Sky  Constantly looking for innovative strategies  Separate costs will be incurred for each market entered due to varying industry-specific information

13 - 13 - Project BlueSky UWCC_SamplePresentation2.pptx Running head Industry Analysis Metrics The projected time it will take for an industry to integrate at a desirable level.  Ranking 1 to 5 –5 being ideal ( shorter time to implementation) –1 being not ideal (longer time to implementation) The rate at which the market is projected to grow  Ranking 1 to 5 –5 being ideal (high market growth rate) –1 being not ideal (low market growth rate) Time to ImplementationMarket Growth Rate Decentralization is classified by the number of players within an industry. More players results in a more decentralized industry.  Ranking 1 to 5 –5 being ideal (Greater levels of decentralization) –1 being not ideal (lower levels of decentralization The amount of risk an industry would be willing to take on. High Risk Tolerance signifies a greater willingness to take on risk.  Ranking 1 to 5 –5 being ideal (high risk tolerance) –1 being not ideal (low risk tolerance Projected percent change in amount of IT spending within each industry from 2010 to 2011  Ranking 1 to 5 –5 being ideal (high % change in IT spending) –1 being not ideal (low % change in IT spending) Risk Tolerance Decentralization of Industry Percent Change in IT Spending

14 - 14 - Project BlueSky UWCC_SamplePresentation2.pptx Running head Major Players in Cloud Computing Amazon Web Services  Amazon Elastic Compute Cloud –Dependable –Flexible Microsoft Azure  Focus on development not infrastructure  Build applications in several different programming languages Salesforce.com  CRM application –Worlds #1 sales application RackSpace  Highly Scalable  Excellent Support Google AppEngine  Run web applications on Google’s infrastructure –No Hassel when building new web apps. –Free for small web applications Workday  Complete Suite of Business Management Services –Human Capital Resources –Payroll –Financial Management Infrastructure as a Service Platform as a Service Software as a Service

15 - 15 - Project BlueSky UWCC_SamplePresentation2.pptx Major Life Science Companies Running head PharmaceuticalMedical DevicesHealthcareBiotechnology Johnson & JohnsonUnited States SurgicalUnitedHealth GroupAmgen PfizerBoston ScientificWellPointGenetech RocheStryker CorpAetnaGilead Sciences GlaxoSmithKlineCareFusion CorpHumanaBiogen Idec NovartisZimmer HoldingsCignaCephalon Sanofi-AventisSynthes IncBlue Cross and Blue ShieldMedlmmune The Westaim CorporationFresenius Medical Care HoldingsPhysical Medicine AssociatesTaconic Farms, Inc Cornerstone TherapeuticsPhilips HealthcareEnduracare Therapy ManagementWellmark Int Farnam Co Alexza PharmaceuticalsBecton, Dickinson and CompanyRegional Health Services, IncMediatech, Inc Theracance, IncMedline IndustriesTirr Systems IncSuther Feeds Elixir PharmaceuticalsBausch & Lomb IncorporatedParagon Acquisition, Inc.Synthetech, Inc Source: Fortune Magazine 2009 Source: Hoovers.com

16 - 16 - Project BlueSky UWCC_SamplePresentation2.pptx Running head Marketing: Raising awareness and Helping Improve Operations  Who to target? –Key decision makers in companies Science Daily Biotech Magazines  Bullet –Dash Subbullet  What channels of media to use? –Sponsorship of symposiums –Magazine Ads –Product show booths  Bullet –Dash Subbullet  What is the reach of media channels? –Science Magazines 1,000,000 –Sponsorship of symposiums 1,000 –Product show booths 5,000 3 14 25

17 - 17 - Project BlueSky UWCC_SamplePresentation2.pptx Target industries heavy in R&D primarily and manufacturing  Distribution –Channels added as cloud computing grows and demand increases Product Life Cycle: Determining the State of the Current Market Life Sciences as an industry is growing at a 10% rate  Focus should be on building brand preference and maximize market share Cloud computing services will target R&D firms primarily, but expand services as market grows  Cloud Computing –IaaS/SaaS and PaaS offered Increasing service opportunities from IaaS/SaaS to PaaS Warranties and support services Life Cycle StageProduct Promotion Running head Life Sciences

18 - 18 - Project BlueSky UWCC_SamplePresentation2.pptx Running head Projected Costs for Strategic Positioning of Cloud Computing Within Life Sciences Amount in Dollars (in millions) Projected Costs for Implementing Strategy Sales and Marketing Expenses Key Cost Assumptions (in millions)  2010 Business Division Comparable Revenue (MSFT) - $18642  2010 Expected Sales and Marketing Expense - $3914.82  Sales and Marketing as Percent of Revenue – 21%  Expected Push in Sales and Marketing First Year - 2.50%  Percentage Growth Per Year - 1%  Time to Action for 2011 – 6 months Key Assumptions About Cloud Computing Company  Major player in the industry comparable to Microsoft Corporation or Amazon  Proposed changes reflect current activities of the Microsoft Corporation Business Division Revenue Source: Microsoft Corporation 2010 10-K Report Classification of Sales and Marketing Expenses  Sales and marketing expenses include payroll, employee benefits, and other headcount-related expenses associated with sales and marketing personnel and the costs of advertising, promotions, tradeshows, seminars, and other programs


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