1. Cloud Computing

2. 2 A division of Konica Minolta Business Solutions USA Inc. What is Cloud Computing? A model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. In short, “computation as a…utility”

3. 3 A division of Konica Minolta Business Solutions USA Inc. Why is it called “the Cloud”? The term “Cloud” comes from the cloud symbol on a network designer’s flowchart. This symbol is used to denote the Internet as a definition for a packet of information.

4. 4 A division of Konica Minolta Business Solutions USA Inc. Characteristics of a Cloud  Simple  Users do not need to understand the underlying technology infrastructure.  Business Centric  Users buy capabilities, not resources.  Elastic  Services are available as needed.  Use only as much or as little as needed.  Scalable  Users can access more power and capacity without adding complexity  Universally Accessible  Access does not depend on the users location. Available via internal or external connections.

5. 5 A division of Konica Minolta Business Solutions USA Inc. Business Case for Cloud Services  Cost Reduction  Scalability and Elasticity  Security  Increased Performance  Mobility  Reduced Environmental Impact  Disaster Recovery  Turn Fixed Cost into Variable Cost  Peace of Mind

6. 6 A division of Konica Minolta Business Solutions USA Inc. 3 Primary Cloud Service Models  Software as a Service (SaaS)  Use provider’s applications over a network  Platform as a Service (PaaS)  Deploy customer-created applications to a cloud  Infrastructure as a Service (IaaS)  Rent processing, storage, network capacity, and other fundamental computing resources

7. 7 A division of Konica Minolta Business Solutions USA Inc. 4 Primary Cloud Deployment Models  Private Cloud  Enterprise owned or leased  Community Cloud  Shared infrastructure for specific community  Public Cloud  Sold to the public  Mega-scale infrastructure  Hybrid Cloud  Composition of two or more of the above

8. 8 A division of Konica Minolta Business Solutions USA Inc. Cost Reductions  Capital expenditures are reduced since investment in hardware/software is made by the service provider  Operating expenditures are reduced since operation and maintenance of the IT infrastructure has been moved to the service provider  Facility costs (square footage, HVAC, power, security, etc.) are significantly reduced

9. 9 A division of Konica Minolta Business Solutions USA Inc. Mobility  The functionality provided by the cloud should be available to the business wherever its personnel are based and via multiple access methods – from the desktop, a remote laptop, a mobile device, or a web browser.  Simply put, a computing device needs only to connect via some type of network and, once it has connected, it can access the full computing power of the cloud.  Connected employees can access up-to-date information and work on the same document or project simultaneously with others without spending time sending, receiving, or synchronizing.

10. 10 A division of Konica Minolta Business Solutions USA Inc. Why Cloud Computing?  Increased Reliability  The cloud runs on systems that are extremely reliable and redundant  Increased Scalability  Providers add capacity when and where needed  Cost Reduction  Both capital and operating expenditures are reduced  Environmentally Friendly  Carbon footprint is reduced by eliminating individual server purchases  Portability/Accessibility  Files and software are available anywhere there is an Internet connection  Efficient Use of Computer Resources  Reduction in CPU/server slack time  Versionless Software  Updates to software are constant and transparent to the user.

11. 11 A division of Konica Minolta Business Solutions USA Inc. Key Considerations  Total Cost of Ownership (TCO)  Hardware and Infrastructure Savings  CapEx and OpEx Ratio Shifting  Security Implications  Service Provider Stability  Service Level Agreements

12. 12 A division of Konica Minolta Business Solutions USA Inc. Total Cost of Ownership (TCO) A data center is one of the most financially concentrated assets of any organization and holistically assessing its true TCO is difficult. These costs are typically spread across several departments which makes management of these costs and assessment of alternatives difficult.

13. 13 A division of Konica Minolta Business Solutions USA Inc. Security Implications  Shifting data to an external cloud reduces the exposure of sensitive data (assuming a proper security regime at the provider)  Clouds make security auditing/testing simpler  Clouds make regulatory compliance (HIPAA, PCI/DSS, etc.) simpler by shifting physical security responsibility to the provider  Clouds enable automated security management  Redundancy and disaster recovery are a core service in the Cloud

14. 14 A division of Konica Minolta Business Solutions USA Inc. Service Provider Stability  If the provider goes out of business, it may be impossible for the business user to recover their data and investment  Businesses should conduct extensive due diligence into the provider’s history and financial status before negotiating for service  Service level agreements must be executed in the event of an interruption of operations.  Unwind provisions and procedures must be clear and unambiguous

15. 15 A division of Konica Minolta Business Solutions USA Inc. Service Level Agreements (SLAs)  Contract between customers and service providers of the level of service to be provided  Contains performance metrics  Problem management details  Contains penalties for non-performance

16. 16 A division of Konica Minolta Business Solutions USA Inc. Final Thoughts  Cloud computing may enable businesses to save money and be more secure  Users will have the flexibility of accessing information from anywhere an Internet connection exists  Allows businesses to focus on their core competencies  Eliminates concerns with version maintenance and end-of-life declarations  Shifts CapEx to OpEx and reduces both  Simplifies regulatory compliance requirements