1. ECAR Total Cost of Ownership for Cloud Services
Working Group Summary and Timeline
Gabriel Youtsey, University of California, Davis
January 29, 2014 • Tempe, AZ

2. Submit questions & comments
Text ECARTCO to number 22333
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<title>What questions or comments do you have?</title>
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3. Can you accurately calculate your
A brief survey
Can you accurately calculate your
campus vs. cloud TCO?
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<title>Can you accurately calculate your campus vs. cloud TCO?</title>
</poll>

4. Cloud: promise and challenge
Lower cost and better service
Faster deployment
Eliminate upgrades (SaaS)
More business focus
Immediate scalability
Cannot accurately compare costs
More trust placed in vendors
More control shifted to vendors (SaaS)
Requires new skills to manage
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5. CIOs are concerned about TCO
A 2012 global study on cloud computing revealed:
79% of companies are concerned about the hidden costs of cloud services for their applications
Areas of hidden cost due to performance concern include:
Loss of revenue
Damage to reputation
Weakened customer relationships
Reduced productivity
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6. Hidden subsidies in higher education
An initial study by University of Washington in highlighted higher education hidden subsidies
Power
Cooling
Space
Labor (staff or student)
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7. What is TCO? From Wikipedia:
“A financial estimate intended to help buyers and owners determine the direct and indirect costs of a product or system.”
Our revision: “A financial estimate intended to help campus IT and administrative leaders determine the quantitative and qualitative costs and risks of various cloud and campus alternatives.”
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8. Problem with today’s TCO models
Vendor-specific
Guidance is too high level
Models are not flexible
Qualitative and risk factors not considered
Not generally applicable to higher education
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9. Can you accurately calculate your
A brief survey
Can you accurately calculate your
campus vs. cloud TCO?
<?xml version="1.0" encoding="ISO " ?>
<poll url="
<!-- This snippet was inserted via the PollEv Presenter app -->
<!-- The presence of this snippet is used to indicate that a poll will be shown during the slideshow -->
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<title>Can you accurately calculate your campus vs. cloud TCO?</title>
</poll>

10. ECAR-TCO for Cloud Workgroup
EDUCAUSE sponsored the ECAR-TCO for Cloud Workgroup in late 2013
16 members of the higher education community representing: IT
Finance
Contracts & Licensing
Research
Project Management
Industry and community representation
Microsoft Azure & Amazon Web Services
Internet2
Gartner
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11. ECAR TCO Objectives Set the context Identify cloud models
Outline use cases
Develop a framework
Must be a useful tool for campuses to make actual decisions about various cloud alternatives
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12. Objective 1: Set the Context
Provide a narrative that sets the context for the unique needs and circumstances for higher education
Build on the University of Washington study
Help campus community, partners, and vendors better understand campus cloud needs and challenges
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13. Objective 2: Identify Cloud Models
Identify service and deployment models for cloud computing that are most interesting to higher education
Public cloud
Hybrid cloud
Community cloud
Private cloud
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14. Objective 3: Outline Use Cases
Outline common use cases that apply to the business of higher education
4-6 common use cases
Research
Teaching and learning
Administration
Suggest a use case!
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15. Objective 4: Develop a Framework
Develop a TCO framework that will serve as a useful tool for campus decision-making
Based on use cases
Broad applicability across higher education
Must be useful for calculating TCO for both campus and cloud models
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16. A look at the framework Phase Factor Current Local Cloud Investigation
Scalability and capacity
Low
Med
High
Elasticity
Negotiation
Procurement, legal, risk staff $
Service level agreements
Implementation
Initial volume/usage fees
Migration cost
Transition
Process redesign
End user training
Ongoing Mgmt
Local CAPEX/OPEX costs
Cloud OPEX costs
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17. Objective 5: Model Maturity
Provide information about the relative maturity of various cloud models and strategies
Qualitative factors to consider for each cloud model
Should help inform risk
Intangible costs that must be considered
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18. ECAR TCO Timeline November 2013 – Group formed
November 2013 – March Fieldwork
March 2014 – Draft report
May 2014 – Report published for ECAR subscribers
October 2014 – Report fully public
October 2014 – Presentation at 2014 EDUCAUSE Conference
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19. Questions & comments
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<title>What questions or comments do you have?</title>
</poll>

20. Find out more: Reach out to the group: Thank you! ECARWG@educause.edu
groups/total-cost-ownership-cloud-services-working- group
Reach out to the group: