This document discusses the cloud and its implications for Microsoft Dynamics. It begins by defining the cloud and describing the different cloud models. It then outlines the benefits of the cloud, including lower costs, reduced maintenance, and increased agility. Some challenges of moving to the cloud are also discussed, such as migration costs, security, and legal issues around data sovereignty. The document uses the example of MedRecruit, a recruitment company, to illustrate how different parts of their business have adopted cloud solutions like Office 365, Dynamics CRM Online, and hosted NAV. It addresses common concerns around security and reliability in the cloud.
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Dynamics Day '11 - The Cloud: What it means for Dynamics
1. What Does ‘The Cloud’
Mean for Dynamics?
Chris J.T. Auld
CTO, Executive Director – Intergen
Sam Hazledine
Managing Director - MedRecruit
10 August 2011
2. What Does ‘The Cloud’ Mean for Dynamics
What We’ll Discuss
What is ‘The Cloud’
Generally
The Microsoft Cloud Platform
Cloud Benefits
Promised
Realized
The Dynamics Cloud Offerings
Cloud Challenges
Getting there
Security, reliability, legality
Real World Example: MedRecruit
3. “Cloud Computing is a model for the procurement
of computing resources whereby they are
purchased as a utility and consumed over the
Internet.”
4. What Does ‘The Cloud’ Mean for Dynamics
Software as a Service Platform as a Service
5. What Does ‘The Cloud’ Mean for Dynamics
What Does it Mean for Dynamics
Trust Microsoft as a massive cloud vendor
Sum Business and Consumer services to establish scale
Global Foundation Services (GFS) run all data centers
http://www.youtube.com/user/MSGFSTeam
Plenty of Cloud Bits to Consume
Even if you don’t consume Dynamics from the cloud
Office 365, Windows Azure etc…
7. What Does ‘The Cloud’ Mean for Dynamics
New Economics Reduced Management Increased Agility
• Pay for what you use • No maintenance • Latest software for users
• Predictable costs • Faster deployment • Internet collaboration
• Shift from capital expenses • Instant upgrades • Anywhere access
to operating expenses • Multilayered security • Instant self-provisioning
• Economies/Qualities of framework and backup
Scale
8. What Does ‘The Cloud’ Mean for Dynamics
What is driving investment decisions?
9. What Does ‘The Cloud’ Mean for Dynamics
What are we actually buying?
10. What Does ‘The Cloud’ Mean for Dynamics
Dynamics CRM Online
1st Class Cloud Support
Underlying architecture is multi-tenanted
CRM 2011 is 2nd iteration of Cloud offering
True Software as a Service
Near 100% parity between Cloud and On-Premise
Commitment to release to Cloud first
New features will land in CRM Online immediately
Very fast setup
Up and running in 15 minutes
11. What Does ‘The Cloud’ Mean for Dynamics
Typical Microsoft Dynamics CRM 50 user deploymentDynamics
General costs On-premise cost
Microsoft
Savings
CRM Online cost
=
Infrastructure , Hardware
$85,000 Included
OS’s & maintenance
CRM Software/ SaaS Fees $78,000 $94,000
Operations (1 day / month) $45,000 $45,000
Total $208,000 $139,000 $69,000
Per user per month $115/user/month $77/user/month $38/user/month
Back of the Envelope.
Incl. External connector, 3 servers.
Cost of capital: 12%
12. What Does ‘The Cloud’ Mean for Dynamics
Dynamics ERP Online
Commitment to ship all 4 ERP’s as Online Offerings
NAV ‘7’ will be first – sometime in 2012
AX, GP, SL will follow with their next versions
Caveats
We don’t know exactly what it will look like yet
Don’t know how Azure COGs will affect pricing
Right Now
SPLA Hosted NAV in Intergen virtualized datacentre
App-V can deliver additional benefits
13. What Does ‘The Cloud’ Mean for Dynamics
What Does it Mean for Dynamics Customers
Office 365 is an easy first step for existing customers
Light up SharePoint and Lync integration quickly/cheaply
CRM Online default choice for new deployments
Cost saving are real and significant
Migration more nuanced
Windows Azure ideal for Customer Portals
Cheap (~$200/month)
Reliable
Scalable independent of Dynamics bits
‘All in the Cloud’ possible for new businesses
Office 365 + CRM Online + Windows Azure
ERP Products still >9 months out for cloud support
Anticipate more challenges to CRM Online
Don’t delay ERP investment in anticipation
Focus on web services based integration
15. What Does ‘The Cloud’ Mean for Dynamics
Getting there…
Migration costs are largely fixed.
Similar cost to move 10 users as to move 1000 users
Say it costs $25,000 to move our CRM to Online…
Cost per Month incl
Cost Per Month Savings Per Month Savings per Month
Number of Users Cost to Move
@ $77/user @ $38/user by moving
(36mnth@12.5%)
10 Users $770 $380 $836 ($456)
100 Users $7,700 $3,800 $836 $2,964
1000 Users $77,000 $38,000 $836 $37,164
10,000 Users $770,000 $380,000 $836 $379, 164
16. What Does ‘The Cloud’ Mean for Dynamics
Guidance for Migration
Run the numbers
Especially if you are chasing cost savings
Are there other reasons to move- can you ‘value’ them?
Don’t invest in migration
Much of the fixed cost is in up-skill
No way for enterprise to re-use these skills
Use 3rd party with skill to minimize cost
Consider phased approach
E.g. Move code to be CRM Online ready during maint.
Endeavour to maintain deployment neutrality
Keep on-premise code online compatible
17. What Does ‘The Cloud’ Mean for Dynamics
Who is concerned about security?
Why should I trust <xxx> with critical
systems?
18. What Does ‘The Cloud’ Mean for Dynamics
How secure is your current ‘datacentre’?
+ +
19. What Does ‘The Cloud’ Mean for Dynamics
or
0 People per Day ~120 People per Day
US Airline Fatalities US Vehicle Fatalities
2010 Total = Zero 2010 Average
20. What Does ‘The Cloud’ Mean for Dynamics
Comments on Security and Reliability
Qualities of Scale
24/7/365 onsite staff
Best engineers in the world
More redundancy
Consider reliability ‘per mile’
Resist psychological foibles
Being in control doesn’t make things safer
Use savings to improve on-premise assets
Save money moving to CRM Online?
Spend some of it on a redundant network connection.
21. What Does ‘The Cloud’ Mean for Dynamics
The Legal Minefield
22. What Does ‘The Cloud’ Mean for Dynamics
Legal Questions
What do local laws say about data storage?
Tax Administration Act requires us
“to keep sufficient records in New Zeaand”
http://tinyurl.com/ird-alert
Does cloud hosting create a nexus to a jurisdiction?
For tax purposes?
Anti-trust law? Securities law?
Which law applies & courts would rule on any dispute?
24. What Does ‘The Cloud’ Mean for Dynamics
About MedRecruit
KEY DETAILS
Founded 2006
Started on CRM 3 + Small
Business Server 2003
Grow at 100+% per year
2nd Deloitte Fast 50 in 2009
Originally all on premise;
now hybrid on premise +
cloud
Key focus now is driving
operational efficiency
HQ is Queenstown
Australian office is
Coolangatta
25. What Does ‘The Cloud’ Mean for Dynamics
Email and Core Productivity
KEY DETAILS
Email is Mission Critical
Don’t want anything fancy;
Great Outlook support is a
must
Moving to Office 365 was an
obvious choice
Moving was harder than we
expected; plenty of gotchas
Exploring opportunities to
use Lync + SharePoint
What does Skype acquisition
mean?
26. What Does ‘The Cloud’ Mean for Dynamics
Dynamics CRM + Customer Portal
KEY DETAILS
CRM is Core LoB System
Users since version 3
Extensively customized
Customer self service portal
Would like to move to Cloud
Not for cost reasons
Reliability focus
Hard to get there
3 versions of customizations
A big functionality work stream
Will move portal first
Prepare CRM over time
27. What Does ‘The Cloud’ Mean for Dynamics
Core Financials
KEY DETAILS
Been on Xero since day 1
Xero delivers all those
promised benefits of Cloud
Xero runs out of Ooomph as
business becomes complex
Integration with CRM
Large invoice volumes
Buyer generated invoices
Moving to NAV; Hosted by
Intergen