1. Focusing On Improving Business Efficiencies Transitioning into the Cloud A Small Enterprise Case Study Tom DeWitt CEO 15 August 2011

2. Focusing On Improving Business Efficiencies The Internet version of a utility (electrical, water) similar to the way TV cable providers offer television and movies services. Cloud computing is often described as: – A “hard-drive in the sky” – Digital office outsourcing – The next major revolution in information technology – A $241B industry in 2020, up from $41B in 2010 (Gartner) 2 What Is The “Cloud” ?

3. Focusing On Improving Business Efficiencies Social network clouds. Music clouds. Shopping clouds. Today’s Cloud Computers 3

4. Focusing On Improving Business Efficiencies The cloud is a set of protocols, interfaces, networks, storage devices, hardware and services, which allow the delivery of computing as a service to remote users. Participants: – Business managers/owners are responsible for defining organizational needs and governance for data and services residing in private or public clouds. – IT managers, in larger organizations, oversee internal information resources as well as external cloud computing providers. In smaller organizations, like emerging and self- employed businesses, the end user relies solely on the cloud computing provider. – Cloud computing providers are responsible for the services, IT assets and maintenance of their system that provides software, platform or infrastructure services. Cloud Participants 4

5. Focusing On Improving Business Efficiencies The Allure of Cloud Computing Large Business Reduce costs and staffing while increasing agility IT Enterprises A major new multi- billion dollar business opportunity Non-Profits Training and certification opportunities Small Business Increase bottom lines and efficiencies Emerging & Self- Employed Businesses Lower start-up costs Government Outsource and reduce overhead, capital and operating expenses 5

6. Focusing On Improving Business Efficiencies “Cloud Computing represents one of the most significant shifts in information technology many of us are likely to see in our lifetimes. Reaching the point where computing functions as a utility has great potential, promising innovations we cannot yet imagine. Customers are both excited and nervous at the prospects of Cloud Computing. They are excited by the opportunities to reduce capital costs. They are excited for a chance to divest themselves of infrastructure management, and focus on core competencies. Most of all, they are excited by the agility offered by the on-demand provisioning of computing and the ability to align information technology with business strategies and needs more readily. However, customers are also very concerned about the risks of Cloud Computing if not properly secured, and the loss of direct control over systems for which they are nonetheless accountable.” Cloud Security Alliance (CSA) Executive Committee Assessment CSA’s Cloud Threat Initiative entitled “Top Threats to Cloud Computing,”(2010) 6

7. Focusing On Improving Business Efficiencies The Cloud & Semantic Web Cloud computing is as big a paradigm shift away from personal computers (PCs) as were PCs were from main frames in the 90s. A massive ICT transformation is occurring with the advent of cloud computing and the semantic web. – Cloud computing is the practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server or personal computer. – The semantic web will enable machines to interpret “meaning” in the cloud much in the way humans do. These technologies are in use today in social networks (clouds) and Web 2.0 (semi-semantic) applications. Mainframe Computing Personal Computing Cloud Computing 1990s2010s 7

8. Focusing On Improving Business Efficiencies Semantic Web The World Wide Web is an environment where a large- scale collection of dissimilar computer systems needs to interoperate. The Semantic Web takes interoperability to the next level: beyond today's Web of human-readable Web pages to a global database of "machine-readable" and "machine-interpretable" information. The semantic web will enable machines to interpret “meaning” in the cloud much in the way humans do. 8

9. Focusing On Improving Business Efficiencies Web 3.0 Web 1.0 (past, non-semantic, read-only web). – Website consists of static screens of words and graphics. – Main function: data retrieval. Web 2.0 (present, semi-semantic, read-write web). – Websites allow more user-interface, authoring, storage and limited data control (social networking, blogs…). – Main function: data sharing. Web 3.0 (future, semantic, read-write-execute web): – Websites perform functions for humans in merged virtual/ physical worlds (physically persistent virtual clouds [avatars] and virtually enhanced physical realities [3D game worlds]). – An extension of the current World Wide Web that catalogs information on a webpage and reprocesses it so that other machines including computers can understand the information. – Main function: data generation. 9

10. Focusing On Improving Business Efficiencies Cloud Computing Definition 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. Cloud computing is composed of: – Characteristics: on-demand self-service, broad network access, resource pooling, rapid elasticity, measured service – Service models: Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS) – Deployment models: private, community, public, and hybrid clouds 10

11. Focusing On Improving Business Efficiencies On-demand self-service. A consumer can unilaterally provision computing capabilities without the service’s provider. Broad network access. Capabilities are available over a network through mobile phones, laptops, and PDAs. Resource pooling. The provider’s computing resources serve multiple consumers include storage, processing, memory, network bandwidth, and virtual machines. Rapid elasticity. Capabilities can be rapidly scale in or out and be purchased in any quantity at any time. Measured Service. A metering capability appropriate to the type of service (storage, processing, bandwidth, and user accounts). Cloud Computing Characteristics 11

12. Focusing On Improving Business Efficiencies Infrastructure as a Service (IaaS). The consumer does not control the underlying cloud infrastructure, but has control over operating systems, storage, deployed applications, and limited control of networking components. The provider provides customized business solutions. Example: Amazon’s Elastic Compute Cloud. Platform as a Service (PaaS). The consumer does not control the underlying cloud infrastructure, but has control over the deployed applications. The provider offers development environments that consumers create business applications. Examples: Google App Engine, Windows Azure. Software as a Service (SaaS). The consumer does not control the underlying cloud infrastructure including network, servers, operating systems, storage, or applications. The provider provides purpose-built business solutions. Examples: Salesforce.com (CRM), Intuit (financial), Workday (HR). Cloud Computing Service Models 12

13. Focusing On Improving Business Efficiencies Private cloud. The cloud infrastructure is operated solely for an organization. Public cloud. The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization selling cloud services. Hybrid cloud. The cloud infrastructure is a composition of two or more clouds (private or public) that remain unique entities but are bound together by standardized technology that enables data and application portability. Cloud Computing Deployment Models 13

14. Focusing On Improving Business Efficiencies Powerful, inexpensive data centers Fast wide-area networks Ubiquitous web access devices Computer hardware virtualization Cloud Computing Technology Enablers 14

15. Focusing On Improving Business Efficiencies Recent serious glitches at Amazon and Sony have caused concern about the risks of handling data via cloud computing. Key security questions for providers: – What is the provider’s security architecture and policies? – How comprehensive is the service level agreement? – Where does proprietary data reside and how is it protected? – Is your data partitioned from other data? – What are the penalties for breaches and compensation policies for loss? – Does the provider provide encryption and key management? – Is data portability provided in case of security breach or loss of confidence? Cloud Computing Security 15

16. Focusing On Improving Business Efficiencies Cloud Computing Providers & Vendors 16

17. Focusing On Improving Business Efficiencies Elasticity and scalability. The ability to scale up or down 24/7 depending high peak and low trough periods of demand as well as the ability to add or subtract customers quickly. Self-service provisioning. Customers can obtain cloud services easily without enduring a lengthy or complicated process. Standardized interfaces. Customers can easily link internal databases and information to cloud computing providers. Billing and metering services. Customers have visibility into the cost of services (free, metered or subscription) that they are incurring. Service agreement. The customer must understand risks associated with the cloud provider’s responsibilities related to performance, management, costs and security. Cloud Provider Essentials 17

18. Focusing On Improving Business Efficiencies Microsoft – 2002 cloud computing entry providing hosted business solutions based largely on Microsoft Office, the de facto productivity suite in 80% of all enterprises in 40 nations. – Future: Office 365 includes the Microsoft Office suite of desktop applications and hosted versions of Microsoft's Server products delivered and accessed over the Internet. Google – 2007 cloud computing entry providing hosted business solutions based largely on Gmail and Google Apps that are used by 3 million small and medium-sized companies. – Future: Chromebook is a mobile device running Google Chrome OS. Chromebooks comprise a distinct class of personal computer between a pure cloud client and traditional laptop. Cloud Computing Clash of the Titans 18

19. Focusing On Improving Business Efficiencies The US federal government has adopted a “cloud-first” policy that makes cloud, or Web-based computing, the default choice and has required agencies to move at least 3 services to the cloud by October 2012. Federal agencies have identified 78 computer systems they plan to migrate to the cloud within a year, according to the Office of Management and Budget. The transition to cloud computing should save the federal government at least $5 billion annually. The Federal Cloud Computing Initiative is partnering with GSA SmartBuy and the Defense Department’s Enterprise Software initiative for the cloud services contracts. The contracts are reported to be worth an estimated $2.5 billion over five years. US Federal Government’s Transition To The Cloud 19

20. Focusing On Improving Business Efficiencies Efficiency – Improved asset utilization – Aggregated demand and accelerated system consolidation – Improved productivity in application development, application management, network, and end‐user Agility – Purchase “as‐a‐service” from trusted cloud providers – Near‐instantaneous increases and reductions in capacity – More responsive to urgent agency needs Innovation – Shift focus from asset ownership to service management – Tap into private sector innovation – Encourages entrepreneurial culture – Better linked to emerging technologies Federal Government Cloud Computing Potential $80B Annual Federal IT Spending $20B Potential CC Savings Source: US CIO (White House) 20

21. Focusing On Improving Business Efficiencies Potential Spending on Cloud Computing by US Government Agency Source: US CIO (White House) Top Six Agencies 21

22. Focusing On Improving Business Efficiencies Cloud computing is as much about business efficiencies as it is about technology. SNVC’s goal is to increase efficiency and deliver 10% improvement to our bottom line by implementing: – A collaborative secure work environment – Integrated management tools – New access devices (iPads) and new applications – New business applications – Virtualization of machines and applications SNVC’s Transition To The Cloud 22

23. Focusing On Improving Business Efficiencies ADP “The SharePoint People” 23

24. Focusing On Improving Business Efficiencies Increased productivity Mobile access to PC apps Decreased need for PC Decreased risk of data loss Fewer days to invoice Greater accuracy in payroll and cost accounting Ease of use increases compliance Central access point for SigActs Ability to easily show past performance and value statements to current and future customers Transitioning to the Cloud Activities and Benefits Virtual Private Network on iPad Timesheet Application on MySNVC SigActs on MySNVC Increased accessibility of files and information via the web Increased productivity outside of office environment Decreased footprint with fewer machines and power usage Decreased server room requirements and maintenance Redundancy of server farm for ease of data/system recovery Cost avoidance on consulting services for system recovery VirtualMachines Backup and Data Recovery Server Team Sites 24

25. Focusing On Improving Business Efficiencies Transitioning to the Cloud Cost Analysis: 15% Bottom Line Improvement 25

26. Focusing On Improving Business Efficiencies Reduce corporate staffing while building billable direct workforce servicing clients on cloud computing. Transition lessons-learned to current clients. Provide consulting services for small, emerging and self- employed businesses. Develop cloud computing applications for small businesses. Joint venture with larger corporations involved with major cloud computing initiatives. Other SNVC Cloud Computing Efforts 26

27. Focusing On Improving Business Efficiencies SNVC is the small business joint venture partner with MetroCore and will be a portal to the federal government. MetroCore Initiative MetroCore is a financial and information services initiative using state-of-the-art cloud computing, semantic web, encryption and broadband systems and processes. MetroCore is backed by major financial institutions. Initiatives and joint ventures, like MetroCore, helps SNVC expand its service offering to large and new group of clientele. 27

28. Focusing On Improving Business Efficiencies The Jobenomics movement goal is to create 20 million US private sector jobs by year 2020. Jobenomics is partnered with SNVC as a small business beta-test to verify cloud computing business efficiencies, and offer these efficiencies to other small businesses via consulting, technical services, and proprietary cloud computing solutions. The author and founder of Jobenomics joined the SNVC Board of Directors and is helping lead SNVC’s Transition to the Cloud team. SNVC & Jobenomics 28

29. Focusing On Improving Business Efficiencies SNVC is transitioning many of its functions into the cloud and anticipates: – An immediate improvement to its bottom line by at least 10% – Developing new business opportunities with: Current clients (mainly federal government) New commercial clients – Consulting services – Selling new applications Joint venturing/partnering with larger organizations By transitioning to the cloud computing early, SNVC will be able to position itself for many new opportunities. Conclusion 29