Cloud Computing and Managed Services - 2013 NEO Tech Summit

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Cloud Services and Managed Services Solutions

The cloud is the next step in the evolution of the

Internet

The cloud is the fifth generation of computing

(after mainframe, personal computer, client-server

computing and the web)

Gartner – A style of computing in which

scalable and elastic IT-enabled capabilities are

delivered as a service using Internet technologies.

Cloud Computing – What is it?

The ability to dynamically expand or compress processing power and storage – and affect charges in a utility billing manner.

Elastic Computing

The cost related to the next-best choice available to someone who has picked among several mutually exclusive choices.

Opportunity Cost

The practice of outsourcing day-to-day management responsibilities as a strategic method for improving operations.

Managed Services

Cloud Computing – Some Terminology

Cloud Computing – How Big Is It?

From the customer perspective…..

One word – economics

Faster, simpler, cheaper to use cloud apps

No upfront capital required for servers and storage

No ongoing operational expenses for running a data center

Applications can be accessed from anywhere, anytime

What’s Driving Cloud Computing?

Infrastructure as a Service IaaS

Platform as a Service PaaS

Software as a Service SaaS

Business Process as a Service BPaaS

Hardware as a Service HaaS

The Cloud Computing Stack

Breaking Down the Big Numbers

Breaking Down the Big Numbers

Infrastructure as a Service IaaS

Platform as a Service PaaS

Software as a Service SaaS

Business Process as a Service BPaaS

Hardware as a Service HaaS

The Cloud Computing Stack

Delivered as public cloud, private

cloud or hybrid cloud

Resources are distributed as a

service

Variable cost – utility pricing

model

Enables scaling flexibility

Resources are typically shared between users

Infrastructure as a Service (IaaS)

Capital to invest is low Pressure is applied to move to OpEx cost model Very rapid growth or highly variable demand Predictable cost of expanding services required

A good fit when…

☒ Regulatory compliance restricts offshore data storage☒ PCI or similar compliance can be problematic☒ Highest levels of performance is required

Not a good fit when…

Infrastructure as a Service (IaaS)

Infrastructure as a Service (IaaS)

2010 2011 2012 2013 2014 2015 2016 GAGR (%) 2011-2016

Compute 2.19 3.37 4.89 7.20 10.51 14.78 19.89 42.6Print 0.05 0.07 0.10 0.13 0.18 0.23 0.29 31.5Storage 0.64 0.86 1.13 1.68 2.35 3.13 4.04 36.4Cloud System Infrastructure (IaaS) Total 2.88 4.30 6.12 9.02 13.03 18.14 24.22 41.3

Infrastructure as a Service IaaS

Platform as a Service PaaS

Software as a Service SaaS

Business Process as a Service BPaaS

Hardware as a Service HaaS

The Cloud Computing Stack

Two Flavors – Collaborative platform for software development & creation of software using existing applications – Salesforce.com add-on apps

Services to develop, test, deploy, host, and maintain applications in the same development environment

Multi-tenant architecture for multiple users in the same development environment

Web-based user interface creation tools to create, modify, test and deploy UI scenarios.

Platform as a Service (PaaS)

Platform as a Service (PaaS)

Multiple developers working on the same development project External parties need to interact with the development process Developing add on apps to existing environments like Salesforce.com

A good fit when…

☒ Regulatory compliance restricts offshore data storage☒ PCI or similar compliance can be problematic☒ Highest levels of performance is required

Not a good fit when…

Platform as a Service (PaaS)

2010 2011 2012 2013 2014 2015 2016 GAGR (%) 2011-2016

Application Development 0.14 0.21 0.27 0.34 0.42 0.5 0.58 22.4

App Infrastructure & Middleware 0.43 0.65 0.87 1.14 1.46 1.82 2.23 28.0

Business Intelligence Platform 0.01 0.03 0.04 0.06 0.08 0.11 0.13 38.8

Database Management Systems 0.01 0.02 0.03 0.04 0.06 0.09 0.12 48.5Cloud App Infrastructure Services

(SaaS) Total 0.60 0.90 1.21 1.58 2.02 2.51 3.06 27.7

Infrastructure as a Service IaaS

Platform as a Service PaaS

Software as a Service SaaS

Business Process as a Service BPaaS

Hardware as a Service HaaS

The Cloud Computing Stack

Web access to commercial software

Software is managed from a central location

Software delivered in a “One to Many Model”

Users not required to handle software upgrades and patches

API’s allow for integration between different pieces of software

Software as a Service (SaaS)

Software as a Service (SaaS)

Applications have a significant need for web or mobile access Vanilla applications that offer capabilities to a group of business users,

i.e. IT vendor partners Applications where there is considerable Interaction between the

organization

A good fit when…

☒ Applications that require fast processing of real time data☒ Applications with PCI or similar compliance requirements☒ The application has an existing on premise solution

Not a good fit when…

SaaS 2010 2011 2012 2013 2014 2015 2016 GAGR (%) 2011-2016

Business Intelligence Apps 0.14 0.22 0329 0.37 0.48 0.59 0.73 27.4

CRM 3.39 4.21 5.03 5.92 6.87 7.88 8.96 16.3

Digital Content Creation 0.10 0.22 0.27 0.37 0.48 0.71 0.93 34.0

Enterprise Content Management 0.20 0.26 0.37 0.51 0.62 0.72 0.82 25.9

ERP 1.50 1.97 2.51 3.18 3.95 4.47 5.65 23.4

Office Suites 0.11 0.23 0.41 0.73 1.11 1.39 1.72 49.1

Other App Software 2.32 2.81 3.27 3.91 4.55 5.41 6.54 18.4

Project & Portfolio Management 0.15 0.25 0.31 0.42 0.54 0.62 0.68 22.2

Supply Chain Management 1.02 1.27 1.54 1.93 2.34 2.82 3.36 21.5

Web Conferencing, Teaming Platforms, and Social Software Suites 1.82 2.03 2.23 2.48 2.76 3.07 3.4 10.9

Cloud Application Services Total 10.75 13.46 16.22 19.82 23.72 27.94 32.80 19.5

Infrastructure as a Service IaaS

Platform as a Service PaaS

Software as a Service SaaS

Business Process as a Service BPaaS

Hardware as a Service HaaS

The Cloud Computing Stack

76% of entire cloud forecast is in this segment

Enables organizations to easily keep up with complex administrative issues (payroll)

Pricing models are consumption based or subscription based

Sits on top of the other three cloud service types

Services are accessed via internet

Gives enterprises greater agility in responding to changing market conditions

Business Process as a Service (BPaaS)

Business Process as a Service (BPaaS)

Business Process as a Service (BPaaS)

Moving to a service oriented approach is desirable Many locations require a consistent process Changing business requirements require expensive software

upgrades

A good fit when…

☒ Existing integrated software solutions adequately supporting the task

☒ Low transaction count in a subscription-based service☒ Reliable access to the Internet is a problem

Not a good fit when…

BPaaS 2010 2011 2012 2013 2014 2015 2016 GAGR (%) 2011-2016

Cloud Payments 4.41 4.86 5.22 5.84 6.70 7.75 8.88 12.8

Customer Management 2.16 2.33 2.60 3.01 3.40 3.81 4.25 12.8

E-Commerce Enablement 4.33 4.80 5.49 6.52 7.33 8.24 9.07 13.6

Finance and Accounting 1.19 1.29 1.39 1.54 1.72 1.93 2.16 1.09

HR 10.20 10.66 10.87 11.79 12.82 13.77 14.71 6.7

Industry Operation 2.05 2.21 2.50 3.02 3.51 3.90 4.39 14.7

Supply Management 2.45 2.70 2.85 3.25 3.68 4.06 4.42 10.4

Cloud Based Process Services (BPaas) Total 26.79 28.84 30.93 34.97 39.17 43.47 47.89 10.7

Cost Savings

Lowering the opportunity cost of running technology

Allowing a shift from capital expenditure to operating expenditure

By lowering the total cost of ownership (TCO)

of technology

Enabling the organization to add business value by renewed focus on business activities

Cloud Computing Cost Savings

IT Has It’s Own 80-20 Rule

Time is Money Focus on what matters.

Maintaining the status quoRoughly 80% of IT time and expenditure is used on processes that don’t create any value for the organization.

The opportunity costThe opportunity cost Is the benefit that can accrue to the organization from better utilization of that 80%.

Drive efficiencyFrom 20% to 80%.

Lowering the Opportunity Cost

CapEx to OpEx Shift

Operating expenses are fully deducted in the accounting period in which they are incurred

Shifting to OpEx generally lowers tax bills

OpEx costs can be terminated as situations change

CapEx approval process can be quite lengthy

OpEx model helps companies gain expense certainity

Example Year 3 TCO

• Hardware 26%• Software 11%• HW/SW Maintenance 20%• Admin & Operations 29%• Power Cooling & Space 13%

Sample 3 Year TCO for Storage

Hardware and Software 37% of TCO

Most equipment upgrades, especially servers and storage are now eliminated

Cloud computing enables organizations to focus on their core

business

Flip the 80/20 rule results in favor of

80% concentration on applications

Capital expenditure budgets are freed up

for core business needs

Renewed Focus on Business Activities

XYZ Company

100 Employees

Service Oriented Business That Includes Product Sales - Growth

Flat Last Two Years

Current IT Infrastructure is at

HQ Location

Current Servers and Storage – 4 Years

OldERP Systems

Supported In HouseWeb Site/Sales Order Entry System Needs

Major Mods to Gain a Competitive AdvantageIn House IT Staff

Capable – Yet Bogged Down in Support of

Infrastructure

XYZ Company - Cloud Migration Example

1 Web Server 2 Exchange Servers 2 ERP Servers MS Dynamics 1 ERP Development Server 2 SQL Database Servers for Operational Applications 1 MS File Server 1 Backup Server – Weekly Tapes to Iron Mtn. SAN Storage with 2 TB Capacity Cisco VoIP Phone System

VMware-based Infrastructure with:

XYZ’s Current IT Infrastructure

1 Web Server IaaS 2 Exchange Servers IaaS 2 ERP Servers – MS Dynamics IaaS 1 ERP Development Server PaaS 2 SQL Database Servers IaaS 1 MS File Server IaaS 1 Backup Server IaaS SAN Storage with 2 TB Capacity IaaS Cisco VoIP Phone System

VMware-based Infrastructure with:

XYZ’s Infrastructure – Cloud Migration

XYZ Company’s Own 80-20 Rule

Cloud Computing – Managed Services

Cloud computing Managed Services

Cloud computing only gets you ½ way there!

XYZ’s IaaS & PaaS Cloud Savings

Lowered Electricity Costs for Servers and Cooling

Hardware Firmware Patching Eliminated

Future Server and Storage Upgrade Costs Avoided BUT – the IT Staff still had to perform all other support

Backup Support, Server Patching, etc., etc.

Efficiency Potential Not Fully Realized

Work on web site /sales order entry system slow

That’s where Managed Services

can help.

Managed Services The practice of outsourcing day-to-day

management responsibilities as a strategic method for improving operations.

Managed Services Definition

Server Management & Support with O/S Patching

MS Exchange Management and Support

Storage Management & Support

Network Device Management & Support

24x7 Device Monitoring and Support

Anti-Spam and Anti-Virus Management

Backup Management & Support

End User Help Desk Support

Cisco IP Phone System Management & Support

Managed Services – What’s Included

Managed Services - Benefits

Control IT costs

Redirect IT’s efforts towards providing

competitive advantage

Control labor costs Quickly implement new technology

Stay focused on your core business

Increase efficiency and

competitiveness

Level playing field with larger

competitors

DRS Overview

Who is DRS?

Managed Services

ProfessionalServices

Cloud Computing

Collaboration

Support Desk

Building and Metro Cabling

Connectivity and Internet

Solutions

Business Continuity, Disaster Recovery

and Backup

Application Development

Services include: Services include:

DRS (Data Recovery Services)

DRS has over 36,000 sq. ft. of Data Center space with locked cabinets, cages and technical office suites for enhanced security. Our Data Centers are all Tier 3 facilities.

DRS has over 36,000 sq. ft. of Data Center space with locked cabinets, cages and technical office suites for enhanced security. Our Data Centers are all Tier 3 facilities.

Belmont Technology Complex

Features: • Dual Bus Power System • Redundant HVAC • SAS 70 • Rack Space • 21,000 sq. ft. • Office Suites Avalable

WeConnect Data Center

Features: • 16,000 sq. ft.• Cage and Rack Space• Disaster Recovery Planning• Dedicated Electrical Room• Dedicated Battery Room• Fiber Connectivity

Youngstown Data Center

Features: • AC & DC Protected Power• Carrier Class Data Center• Cage and Rack Space• SAS 70• 16,000 sq. ft.

Pittsburgh Location

Features: • AC & DC Protected Power• Centrally Located• Cage and Rack Space• Dedicated Standby Power

Colocation Facilities

DRS has developed the technical expertise and IT solutions to help customers increase their productivity while decreasing their costs. DRS employees are dedicated to making sure they have the latest and greatest certifications and continuing education available. The staff has achieved more than 50 of specialized certifications and the company as a whole has earned high-ranking partnership status with major IT vendors.

DRS has developed the technical expertise and IT solutions to help customers increase their productivity while decreasing their costs. DRS employees are dedicated to making sure they have the latest and greatest certifications and continuing education available. The staff has achieved more than 50 of specialized certifications and the company as a whole has earned high-ranking partnership status with major IT vendors.

Partners and Certifications

Contact Info

Speaker: Mike McHughDirector of Sales and Marketing

Formatted: Dom CascarelliMarketing & Media Associate

Presentation:

Youngstown Office:1343 Belmont AvenueYoungstown, Ohio 44504Local Phone #: 330-259-4900

DRS Corporate Headquarters

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