Presented By: Lauren Nathanson Extra Space Storage What does Cloud mean? Benefits and challenges of cloud applications Case study: Extra Space Storage s NetDocuments implementation Tips on how to protect your organization Q&A Software (and data) accessed via the internet; not on your local computer Data owner versus data custodian Also referred to as: On-Demand Web-based Software as a Service (SaaS) SaaS is the most predominant type of cloud application 1
SaaS Model: Rented software Subscription fee (monthly, annually) All inclusive (maintenance, support) Lower upfront costs VS. Traditional model: Purchased software One-time license fee upfront Annual maintenance and support fees Higher upfront costs OR Sunshine and Rainbows Disaster Waiting to Happen Say NO to: servers, upgrades, backups Lower cost than on-premise Rapid deployment Easily scalable Easily accessible Disaster recovery Innovation Mobility 2
Data security Not as customizable; configuration vs. customization Difficulty of auditing Implementation is not always as easy as salespeople want us to think Lack of service standards Reliant on IT services of the vendor No database access No sand box Cloud companies tend to be younger There are pros and cons of using cloud applications Your organization must decide on it s level of risk tolerance Due diligence during the selection process can greatly decrease risk Extra Space Storage implemented NetDocuments in 2010 3
2 nd largest self-storage operator, with 870 locations nationwide 10% portfolio growth in 2011 2500+ employees Headquartered in Salt Lake City with offices and locations in 35 states Publically traded (NYSE: EXR) ESS received an award from the State of Utah for having the largest IPO from a Utah Corporation to date Implemented in late 2006 Technical issues from the start Expensive licenses so only corporate employees had access Very low user adoption - about 27% Between 2006 and late 2010, about 220,000 documents were saved into Hummingbird By early 2009, Hummingbird was deemed a failure and other options were being considered 1. Cloud (web-based) application 2. Integration with Salesforce.com 3. Integration with Microsoft Office applications 4. Robust search capability 5. Ability to assign security at the user, group, and document levels 4
Accessibility regardless of geographical location or time (decentralized access) Easily scalable, which we need to keep up with our rapid growth No on-site infrastructure to manage More cost-effective solution allowing us to give access to all employees (field and corporate) Cross-functional committee met twice a month to answer the following questions: Should we replace Hummingbird? If so, what are our requirements for a new product? How do we justify this change to our executives? Which product best meets our needs? Know what your requirements are before evaluating products. Entire matrix included in session handouts 5
Benefit / Risk Analysis Requirements Matrix Request for Proposal (RFP) Proposal Scorecards Product Recommendation Total Cost of Ownership (TCO) Analysis Business Case Project Approval Influential employees on the committee Our CIO was well informed of progress Business Case: Hummingbird vs. NetDocuments Executive sponsor sold concept to peers Surveyed departments before implementation Pilot departments gave valuable feedback Designated departmental Super Users On-site and on-demand training with swag 6
Record migration was more complicated and took longer than expected Migrated documents didn t end up where expected about 20% of the time Integration with Salesforce needed some unforeseen custom development (internal) No sandbox to test migration prior to releasing to a live environment System maintenance and updates are conducted by our vendor No servers, no software Improved access to company records Integration with Salesforce.com More users, less cost Help Desk freed from supporting application Secure collaboration 80% percent user adoption 16 out of 19 departments are using NetDocuments as their official repository Almost 600,000 documents added to NetDocuments since implementation Integration with many Salesforce applications 7
Have a Service Level Agreement (SLA) Set up communication guidelines and include them in the contract Discuss exit strategy before signing a contract Contracts often favor the vendor; have Legal review and don t be afraid to demand changes to the contract Ask to review disaster recovery plan and protocols Right to Audit clause Agree on discovery request procedure If possible, attend a user conference Cloud is the future In the debate on the cloud, there is a happy medium; understand the risks and mitigate them when possible Don t cut corners in the vendor selection process do your due diligence 8
Questions? Lauren Nathanson Extra Space Storage lnathanson@extraspace.com 801.365.4639 9