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Presentation given to the Vermont Business Leaders LinkedIn Group 5-19-10.
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Going to the Cloud
Jeff PaquetCenterPoint Business Advisors, Inc.
John HamrickHamrick Consulting
May 19, 20010
Going to the Cloud
How John Hamrick Got to the Cloud:• 1972 - Building Electronic Scoreboards with the first microprocessor (Intel
8080) - Age 12 • 1975 - Building The World's First "Smart Terminal" for the Plato System at
the University of Illinois - Age 15• 1982-1989 Selling the World's First Mainstream Mini-computer for Digital
Equipment Corporation to the US Army, Air Force and NASA Johnson Space Center
• 1990-1995 - Selling "Cloud Computing" for US Businesses from Houston Texas, it was called "Time Sharing" at the time.
• 1995 - 2010 - Hamrick Consulting - Bringing the Web, Thin Client Computing, Email and Finally Cloud Computing to Northern New England.
Going to the Cloud
How Jeff Paquet Got to the Cloud:• 1981 - 1984 - Writing simple programs using Basic on the first
microprocessor (Intel 8080), and Apple IIe - Age 14 - 17• 1984 - 1989 - Developing Engineering office productivity software on IBM
PC's in an experimental aircraft operations group at NASA Ames Research Center - Age 17 -21
• 1988 Developing Computational Fluid Dynamics (CFD) code using Fortran, on a terminal served, Mainframe Computer - UCLA
• 1990 - 2005 - Developing Aircraft & Automotive designs using CAD/CAE on Unix based PC's with files served through a VPN (Virtual Private Network)
• 2005 - 2010 - CenterPoint Business Advisors - Providing Exit Planning, Valuation, Brokerage, and Growth Based Consulting Services to business owners throughout Northern New England (Cloud Based Business Model)
To make toast...
... it takes:
To watch cable TV...
... it takes:
Computing = Utility
Why Can't Business Applications be as easy as Amazon.com,
iTunes and Ebay?
IT Platform Evolution or,Its About Time We Tot Here.
The Evolution of Web Platforms
Why Should Business Computing Be Any Different?
Alphabet Soup(Some Definitions)
SaaS = Software as a Service
PaaS = Platform as a Service
IaaS = Infrastructure as a Service
Software as a Service
Salesforce.com is not just for your "sales force".
Hundreds of applications developed for all industries.
Cloud computing is not only serious business in the IT World
for big business...
...but it's also extremely powerful and available for the rest of us.
• Office Applications• Email• Contact/Calendar Management• CRM• File Management• Collaboration • Voice - VOIP/Virtual PBX• Vertical Applications (Industry Specific)• Remote Backup
Welcome to Cloud Computing!
• Buy what you want• Buy how much you want• Select your features• Select your premium functionality• Scale your purchases in direct relation to your
requirements• Pay Monthly• Expect "triple 9s" (99.999% Availability)• Global Access from ANY device
Simply stated...
Cloud computing is the removal of the dependencies on:
• Computer platformso Serverso PCso Mobile Devices
• Softwareo Collaborationo Schedulingo CRMo Vertical Applicationso Communications
Computer GeekNo Offense to Geeks in
the Room
Who Makes the ITDecisions that Run Your
Company?
Business People
Simply stated...
Cloud computing is also responsible for the eradication of: • Endless Obsolescence
o Hardwareo Softwareo Compatibility
• Stifling IT Support Costso Hardwareo Softwareo End-user Downtimeo Telephone Support
• Existing Server Based System In Place• Legacy Software Applications
o ACTo MS Office 2000o POP Mail With Outlook
• Legacy Desktop Devices Aging• Monthly IT Support Agreement - Expensive• Software Aging• Server Aging• PBX Telephone System - FairPoint Service
Cloud Integration ScenariosCase 1
What Does it Cost? Case 1 - Replace With Legacy Environment
Server $5,000 With Labor
Software Upgrade $3,500 Licenses/Labor Training $1,000 Limited training for upgraded software
Total Fixed Costs $9,500
Broadband $70 DSL
IT Support $800 Agreement
Remote Backup $100
Telephone $375 4 Lines w/ LD
Total Recurring Costs $1345 Monthly
Annualized Costs $2137 Monthly
• Convert ACT to Salesforce• Convert Legacy Mailing Sys. to Vertical Response• Convert POP Email to Google APPS• Convert Office Applications to Google APPS• Convert File System to Google APPS and OneHub• Convert Phone System/Service to RingCentral
Cloud Integration ScenariosCase 1- Cloud Deployment
What Does it Cost? Case 1 - Replace With The Cloud
Cloud Consulting $5,000 Design, Modification of Cloud components, application Conversion
Telephone $500
Total Fixed Costs $5,500
Broadband $110 Upgrade to Cable
SaaS Subscriptions $300 SF/DOCS/OneHub
Cloud Consulting $500
Telephone $100 4 Lines w/Ring Central
Total Recurring Costs $1010 Monthly
Annualized Costs $1468 Monthly
Cloud Integration ScenariosCase 2
• No Existing Systems In Place• Small Manufacturing Company• Aggressive Growth Plan• Additional Staff & Marketing Budget• Starting from "Scratch"• Initial 3 User System with Requirement for
Growth and Scalability
Cloud Integration ScenariosCase 2 - Legacy Deployment
Server $2,000 File Server
Desktop/Laptops $1,500 Desktops/Laptop
Software $2,000 CRM/Office Applications
Integration $3,000 IT Setup, Configuration, Training
Total Fixed Costs $8,500
Broadband $70 DSL
IT Support $250 Agreement
Remote Backup $50
Total Recurring Costs $370 Monthly
Annualized Costs $1080 Monthly
• Salesforceo Customer Relationship Managemento Customer Supporto Accounting Interface (QuickBooks/Future)o Quoting & Order Management
• Google Appso Emailo Word Processingo Spreadsheetso Calender Managemento Task Management o Sites
Cloud ComponentsCase 2 - Cloud Deployment
What Does it Cost?Case 2 - Cloud Deployment
Computer Systems $1,600 Laptop/Desktops
System Design & Customization
$2,500 Cloud Platform (Salesforce)
Total Fixed Costs $4,100
Broadband $70 DSL
Cloud Subscriptions $225 SF & DOCS
Support/Training $150 Cloud Consultant
Total Recurring Costs
$445
Annualized Costs $787 Monthly
Case 1 & 2 ComparisonsLegacy vs. Cloud Deployment
Item Legacy Cloud Delta
Case 1 - Fixed $9,500 $5,500 $4,000 (Cloud)
Case 1 - Monthly $1,345 $1,010 $335 (Cloud)
Case 2 - Fixed $8,500 $4,100 $4,400 (Cloud)
Case 2 - Monthly $370 $445 $75.00 (Legacy)
Note:1. Case 2 did not convert phone system/service
Conclusions
• Cloud deployments are less expensive than legacy deployments, and provide a multitude of benefits.
• Cloud deployments put the emphasis on what technology DOES and not what technology IS.
• Full deployment or hybrid deployment (everyone is in the cloud in some form) is possible today.
• Cloud deployments are fully scalable (both directions)• The network is the key to the cloud.
Want to Learn More?
• One Hour Consultation ~ No Chargeo Cloud APP Demonstrations
• Limited Engagement ~ $125.00/Hr.o Examine Current Environmento Match Legacy with Cloud Componentso Provide Findings & Recommendations
• Fixed Fee Projecto Cloud Integration, Training & Support
