The Cloud vs. the Back-Office. Which is right for you?

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1 The Cloud vs. the Back-Office Which is right for you?

2 Introductions Andy Skrzypczak President

3 NetSource One We help, guide and support frustrated and overwhelmed business owners who want Pain Free IT so that they can run their business without fear of technology interruptions.

4 Introductions Richard Reiffer CEO/Founder

5 My Background Started in mainframe with Burroughs Steve Ballmer/Ray Noorda (Microsoft - LANDA) Steve Jobs (NeXT - Businessland) Started Trivalent 1991 sold 2011 VP of Cloud Practice for Zenith Infotech GCC 2012 to present

6 The Cloud vs. the Back Office Which is right for you? What is the Cloud? Current state of the Cloud Is the Cloud right for me? When should I make the switch? Government and the Cloud

7 How to view technology Or what is how??? Smart Phone SNACK! Tablet DINING! PC/MAC COOKING!

8 Why is this important? Changing landscape of technology! Updates on PC software? Updates on phone or tablet? Updates on cloud software?

9 Evolution of IT services RISKS Cloud/Outsourcing Service Provider Managed Services All Inclusive Projects Internal IT Outside Hourly Support Internal Staff Time

10 What is the Cloud? (Forecast: Cloudy with a chance of Apps!) Cloud can refer to any computer resource that is accessed outside of your local device. Cloud is a delivery mechanism, NOT where it resides! (It s a matter of degrees) Time for Cloud Increased Collaboration 2. Decreased upfront and capital expenditure costs 3. Maximized security 4. Environmentally friendly

11 Cloud remote resources! Apps run here! Standard Back Office/ Traditional IT Data Stored here! PC s Servers

12 Cloud remote resources! Keystrokes entered here! Cloud Data and Apps Stored here! Thin Clients Internet Cloud Servers Screen info sent this direction!

13 Cloud Definition NIST National Institute of Standards and Technology Cloud computing is a model for enabling ubiquitous, 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.

14 Cloud Definition NIST This cloud model is composed of five essential characteristics, three service models, and four deployment models.

15 Essential Characteristics 5 areas On-demand self service Broad network access Resource Pooling Rapid Elasticity Measured Service

16 Essential Characteristics On Demand Self Service A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction with each service provider.

17 Essential Characteristics Broad Network Access Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, tablets, laptops, and workstations).

18 Essential Characteristics Resource Pooling The provider s computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand. There is a sense of location independence in that the customer generally has no control or knowledge over the exact location of the provided resources but may be able to specify location at a higher level of abstraction.

19 Essential Characteristics Rapid Elasticity Capabilities can be elastically provisioned and released, in some cases automatically, to scale rapidly outward and inward commensurate with demand. To the consumer, the capabilities available for provisioning often appear to be unlimited and can be appropriated in any quantity at any time.

20 Essential Characteristics Measured Service Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported, providing transparency for both the provider and consumer of the utilized service.

21 Service Models 3 delivery models IaaS PaaS Saas

22 IaaS Sorry its time for JaaS (Jargon as a Service) Infrastructure as a Service (IaaS) example usage Servers Backup Databases Security

23 IaaS Providers Sorry its time for JaaS (Jargon as a Service) Infrastructure as a Service (IaaS) - providers

24 PaaS More JaaS! Platform as a Service (PaaS) example usage Functions over fixtures! Easier to manage and control for the average user Allows for customization

25 PaaS Providers More JaaS! Platform as a Service (PaaS) providers

26 SaaS And all that JaaS! Software as a Service (SaaS) example usage True apps in the Cloud Some customization Mainstream direction for most software platforms

27 SaaS Providers And all that JaaS! Software as a Service (SaaS) providers

28 Deployment Models 4 kinds Private Cloud Community Cloud Public Cloud Hybrid Cloud

29 Private Cloud These are services that are delivered in the same format as Public Cloud but are delivered on DEDICATED INFRASTRUCTURE. These can be local or remote. Examples of delivery mechanisms that these may use are: Citrix Terminal Services VDI (VMWare, HyperV, XEN)

30 Community Cloud The cloud infrastructure is provisioned for exclusive use by a specific community of consumers from organizations that have shared concerns (e.g., mission, security requirements, policy, and compliance considerations). It may be owned, managed, and operated by one or more of the organizations in the community, a third party, or some combination of them, and it may exist on or off premises.

31 Public Cloud These are cloud services that exist OUTSIDE of the local organizational infrastructure that are hosted on SHARED INFRASTRUCTURE. The cloud infrastructure is provisioned for open use by the general public. It may be owned, managed, and operated by a business, academic, or government organization, or some combination of them. It exists on the premises of the cloud provider.

32 Hybrid Cloud The cloud infrastructure is a composition of two or more distinct cloud infrastructures (private, community, or public) that remain unique entities, but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting for load balancing between clouds)

33 By Type of Cloud - Who owns what? You or the Provider? (At least most of the time!) Servers Software Data Backend IT Public Private Hybrid

34 By Location of IT - Who owns what? You or the Provider? (At least most of the time!) Servers Software Data Backend IT Back Office IaaS SaaS

35 Current State of the Cloud So who is using the cloud? 64% of all business owners have a good concept of what the cloud is! The average person today has a VERY BASIC understanding of what the Cloud is!

36 Growth of Cloud Adoption 100% Cloud Adoption Rate 80% 70% 70% 60% 50% 40% 30% 26% 20% 10% 12% 0% Source: CIO Magazine

37 General Industry Adoption

38 Plans for the Cloud Cisco Global Cloud Index,

39 Internet of Things

40 Do you know who is making the decisions to move to the cloud? 40% of SaaS Purchases are being made by business/government leaders rather than by IT!

41 General Usage 0% 5% 10% 15% 20% 25% 30% 35% File Storage 30% 31% Data Backup/Recovery 25% Office Productivity 20% CRM/Database Collaboration 15% 15% Accounting 13% Source: TechSoup

42 Is the Cloud right for me? (Square peg round hole theory) Let s look at some of the factors that you need to be concerned with when it comes to choosing if you go cloud or not! If the cloud does not provide you with real VALUE, don t do it!

43 Reasons to go to the Cloud 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% ADMINISTRATION - Easier software access, easier disaster recovery, reduced system admin, rapid deployment 79% COST - Low capital investment, fewer IT staff needed, transforms capital expenses to operating expenses 62% PARTNERSHIP - Improved collaboration, easier to partner with other orgs. 61% DATA - Improved data security, better data organization, data under my control 54%

44 Other deciding factors Major hardware or software upgrade Expanding beyond one location Price/performance costs Compliance with regulations Strong BYOD movement Approval by other agencies

45 Reasons to avoid the cloud Single biggest reason to NOT go to the cloud!

46 Bandwidth Check with your provider!

47 Other reasons people are not going! LACK OF KNOWLEDGE - Inadequate training, no management support for cloud, no funder support COST - Monthly costs, setup costs, migration costs, Internet costs DATA SECURITY - Data security concerns, data loss concernsissues, general lack of trust LACK OF TRUST - Cloud not ready to depend on, integration issues, general lack of trust NONCONTROLLABLES - Gov t regulations, unstable electric grid, lack of dependable 0% 10% 20% 30% 40% 50% 60% 70% 60% 49% 45% 44% 34% NO NEED 17%

48 Security Considerations Often stated as one of the top concerns, however.. As long as the Cloud provider has the right certifications/authorizations the Cloud should actually be safer than local systems!

49 Common IT Myths My IT service will NEVER go down!

50 Common IT Myths Once I go to the cloud I no longer need to worry about any local IT! Will you still have? PC s/tablets/thin clients? Switches? Printers? Routers/Firewalls? A SINGLE INTERNET CONNECTION?!?

51 Bottom line on IF It s not a matter of IF, it s a matter of when you will migrate to the cloud! There will always be some local apps but many will be cloud oriented or controlled.

52 When should I switch? Timing is everything. Let s look at some of the factors that you need to be concerned with when it comes to WHEN you go to the cloud! Timing and planning will be a critical aspect of your plans to embrace the cloud.

53 Cost Considerations Decision Matrix High cost savings with little effort Low cost savings with little effort High cost savings with large effort Low cost savings with large effort Hard & Soft Costs Pay for what you use!

54 Cost Considerations Software and Hardware License Fees VMWare Microsoft Specific Applications Green Aspects Power and Air

55 CapX vs OpX The Cloud will fall into a more operational expenditure vs a single large capital investment.

56 Government and the Cloud Let s look at some of the factors that you need to be concerned with that specifically impact government! At the end of the day technology only serves the government if it empowers them to better carry out their core mission!

57 What is happening right now! Skyhigh Cloud Report Q1 2015

58 Areas where Cloud Apps are being used

59 Top 10 High Risk Services Based Upon Data Uploaded Based Upon Number of Users

60 Where do the real threats come from? Just 7% of the public sector orgs surveyed reported an insider threat last year! But 82% of them had behavior indicative of insider theat

61 Top 20 Cloud Services in Government

62 Top 20 Cloud Services in Government

63 Bottom Line Going to the Cloud It s not IF, it s WHEN! Remember, it s all a matter of degrees!

64 Thanks for taking the time today!

65 Questions? We are happy to help you! Richard Reiffer Global Cloud Consulting (616) Andy Skrzypczak NetSource One, Inc. (989)

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