A Strategic Advantage: Cloud

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1 A Strategic Advantage: Cloud Computing and Managed Services Travis Sutton Director of Managed Services TMW Systems

2 Economic Overview Where are we today? New Requirements Price competition has lowered Competition margins Increase for uptime requirements Vendors and service level commitments Uptime Multiple vendor interactions Company Portfolio

3 The Beneficiaries of a Good Business Who are the business stakeholders? Everyone benefits from a well run company Business Owners Customers Users Partners

4 Jack of all Trades; Master of None Stakeholder demands are increasing: Increased Uptime Increased IT Costs Increased People Time Result: Area of ownership increases Ever Expanding Company Footprint

5 What s the Outcome? The business objective is still to make profit, but now is challenged with increased costs with tighter margins. Businesses are forced to specialize in their primary offering as well as technology to meet customer and solution delivery requirements.

6 Specialization TheLaw of ComparativeAdvantage states two parties can benefit from a trade if they have relative different costs of producing the goods or services without a trade. Company A should get wheels from Company B Wheels Tires Company A $ $ Company B $95.00 $ Cost per Unit to Build

7 Specialization Most businesses have a high cost of producing IT services. This ultimately leaves the affected business in a deficit often needing a partner to help cover the gap.

8 Outsourcing: An Old Strategy Swiss Army: Outsourcing in the late Middle Ages Professional soldiers who were battle proven and able to focus on honing their skillset Provided a tactical edge in battle

9 Outsourcing: Better for Consumers Free Trade Agreements Outsourcing across borders Allows regions to specialize in production in order to produce the best quality goods at the lowest cost Global economies create markets for specialized goods

10 Services Outsourcing: Today Payroll (ADP, Intuit, etc) Customer Relationship Management (Salesforce, Netsuite, etc) Transportation (Brokerage, 3PL, etc) IT Services (local and national firms) Outsourcing provides strategic advantages to a company s business portfolio.

11 Services Outsourcing: Tomorrow Businesses are finding specialization allows for a more robust solution to their daily needs. Specialized Business Model

12 Outsourcing Advantages Forced to stay up to date on technology Performed multiple migrations and upgrades Leverage troubleshooting across multiple customers Agility in decisions and actions Fixed cost and flexible payment options (SaaS, etc) Outsourcers provide the competitive edge in economic battle

13 Cloud Computing The terms cloud and cloud computing are recent additions to the work of IT, only reaching the scene in the past few years. While the terms are new, the technology powering clouds is not. Parallel processing and partitioning are proven technologies that have been utilized by IT organizations for decades.

14 Cloud Computing Cloud computing is the interaction of several virtualized resources, pooled together to deliver applications, typically over the web. Virtualizedresources resources are often hardware independent inthe cloud and offer the ability to scale on demand according to customer requirements. The key to cloud computing is the ability to offer services ondemand. This allows full scaling with the customer s specific needs.

15 Cloud Computing Cloud computing customers gain the benefits of not worrying about hardware purchases, depreciation and refresh cycles, and often over investing in infrastructure t for peak times.

16 Cloud Deployment Models Cloud Deployment Models Public Clouds Private Clouds Hybrid Clouds Cloud Service Models Software as a Services (SaaS) Platform as a Service (PaaS) Infrastructure as a Services (IaaS) Managed Services

17 Cloud Service Models Cloud Deployment Models Public Clouds Private Clouds Hybrid Clouds Cloud Service Models Software as a Services (SaaS) Platform as a Service (PaaS) Infrastructure as a Services (IaaS) Managed Services

18 Cloud Service Models Continued Infrastructure as a Service (IaaS) Amazon EC2 Rackspace

19 Cloud Service Models Continued Platform as a Service (PaaS) Microsoft Azure Rackspace Ruby on Rails

20 Cloud Service Models Continued Software as a Service (SaaS) Salesforce.com Netsuite

21 Managed Services Managed Services is typically an add on to cloud services, where management is bundled to take care of customer needs. While this can be as simple as hourly rates, it is often flat fee services. Examples: Operating System Updates and Patch PthManagement Monitoring and Alerting Disaster Recovery and Replication SQL Performance Monitoring and Tuning Active Directory and User Management

22 Outsourcing will enable companies to leverage pressures as advantages Conclusion Company Portfolio and provide agility and serviceability beyond the Vendors Uptime competition. Competition

23 Questions?

24 Contact Information Travis Sutton Director of Managed Services TMW Systems x2954