Template V.17, July 29, 2011 What’s the Cloud Got to do with HR Transformation? Heath Brownsworth, Director Technology Strategy

Template V.17, July 29, 2011

Answer: Speed (Agility) The Cloud provides HR Professionals: Economies of Scale + Economies of Speed

Template V.17, July 29, 2011 Heath Brownsworth Technology Strategy HCM – HR Management, Talent Management, HR Service Delivery, Workforce Management Cloud – Infor Business Cloud, Amazon Web Services, SaaS…

Template V.17, July 29, 2011 Trend 1: Demographic Changing - Aging, migration bring changes in labor force Trend 1: Demographic Changing - Aging, migration bring changes in labor force Trend 2: Economic Globalization - Changing global value chain requires new thinking Trend 2: Economic Globalization - Changing global value chain requires new thinking Trend 3: Internet Everywhere - Virtual activities lead to new business models and norms Trend 3: Internet Everywhere - Virtual activities lead to new business models and norms Trend 4: Consumerization of Technology - User needs are front and center Trend 4: Consumerization of Technology - User needs are front and center Trend 5: Environmentalism - Value the environment / reduce carbon footprint Trend 5: Environmentalism - Value the environment / reduce carbon footprint Trend 6: Efficient Natural Resource Usage - Sustainable usage and allocation Trend 6: Efficient Natural Resource Usage - Sustainable usage and allocation We live in an age of dramatic change… Big Technology Trends

Template V.17, July 29, 2011 What is the Cloud?

Template V.17, July 29, 2011 National Institute of Standards and Technology Cloud computing is 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. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models Note 1: Cloud computing is still an evolving paradigm. Its definitions, use cases, underlying technologies, issues, risks, and benefits will be refined in a spirited debate by the public and private sectors. These definitions, attributes, and characteristics will evolve and change over time Note 2: The cloud computing industry represents a large ecosystem of many models, vendors, and market niches. This definition attempts to encompass all of the various cloud approaches.

Template V.17, July 29, 2011 On-demand self-service On-demand self-service Broad Network Access Resource Pooling Rapid Elasticity Measured Service Instant-on Pay for what you use Grow/Shrink Economies of scale Essential Characteristics of the Cloud

Template V.17, July 29, 2011 Simple as flipping the switch On-Demand Self-Service

Template V.17, July 29, 2011 Application Physical Machine Capacity Application Cloud Application Physical Machine Capacity The “old days” Virtualization Resource Pooling

Template V.17, July 29, 2011 As little as possible… Return to as little as possible… Increase to meet demand… Elasticity

Template V.17, July 29, 2011 Cloud Service Models Broad Platform as a Service (PaaS) Specific Software a Service (SaaS) Infrastructure as a Service (IaaS) Tooling

Template V.17, July 29, 2011 Cloud Deployment Models Private Cloud – Solely for one organization Community Cloud – Shared by those with common interests Public Cloud – Anybody is welcome

Template V.17, July 29, 2011 Hybrid Cloud Deployment Models Cloud – to - Cloud On-premise/Cloud Now – 10 yrs 2-3 yrs out

Template V.17, July 29, 2011 Community HybridPrivatePublic Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) Resource Pooiing Broad Network Access Rapid Elasticity Measured Service On-Demand Self-Service Essential Characteristics Deployment Models Service Models National Institute of Standards and Technology

Template V.17, July 29, 2011 End-to-End Process So What’s the Cloud Got to do with HR Transformation? User Experience Mobile Shaping Enabling Creating

Template V.17, July 29, 2011 Cloud by the Numbers

Template V.17, July 29, 2011 Capability Time Centralized – Mainframe Central computer center Software only in computer center Work brought to the computer center Hardware Focused 2.Decentralized – Networked Onset of Mobile Computing Distributed Client/Server Software Work from user locations Software Focused 3.Global – Cloud Virtualized; Everywhere Software/Hardware decoupled Work from anywhere User Focused We are in the early stages of Wave 3 Mainframe and Client- Server waves remain in place Waves represent many co-dependent technologies, matured over time Overlaps exist during transition History Repeats

Template V.17, July 29, % Data Center Servers Operating System Core Technology Application 20% Data Center Servers Operating System Core Technology Business Value 80% On-premise Cloud Source: February 2011, “Cloudonomics, The Economics of Cloud Computing” rackspace HOSTING Cloud Reverses the 80/20 Rule

Template V.17, July 29, 2011 Expenditure typeOperating Expense (opex)Capital Expenditure (capex) Cash flowPayments are made as the service is provided Servers and software are purchased upfront Financial riskFinancial risk is taken monthly and is matched to return Entire financial risk is taken upfront, with uncertain return Income statementMaintenance expense onlyMaintenance and depreciated capital expense Balance sheetNothing appears on the balance sheet Software and hardware are carried as long-term capital asset FactorCloud On-premise Cloud vs. On-premise

Template V.17, July 29, 2011 CAGR = 20.48% Source: Gartner - Forecast: Public Cloud Services, Worldwide and Regions, Industry Sectors, The Cloud Continues to Grow

Template V.17, July 29, 2011 It is not about the cloud, it is about what is possible because of the cloud…

Template V.17, July 29, 2011

Questions & Answers

Template V.17, July 29, 2011