Dynamics Day '11 - The Cloud: What it means for Dynamics
 

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Dynamics Day '11 - The Cloud: What it means for Dynamics Presentation Transcript

  • 1. What Does ‘The Cloud’Mean for Dynamics?Chris J.T. AuldCTO, Executive Director – IntergenSam HazledineManaging Director - MedRecruit10 August 2011
  • 2. What Does ‘The Cloud’ Mean for DynamicsWhat 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 DynamicsSoftware as a Service Platform as a Service
  • 5. What Does ‘The Cloud’ Mean for DynamicsWhat 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…
  • 6. Cloud Value PropositionThe Why…
  • 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 DynamicsWhat is driving investment decisions?
  • 9. What Does ‘The Cloud’ Mean for DynamicsWhat are we actually buying?
  • 10. What Does ‘The Cloud’ Mean for DynamicsDynamics 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 DynamicsTypical Microsoft Dynamics CRM 50 user deploymentDynamicsGeneral 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/monthBack of the Envelope.Incl. External connector, 3 servers.Cost of capital: 12%
  • 12. What Does ‘The Cloud’ Mean for DynamicsDynamics 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 DynamicsWhat 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
  • 14. Challenges
  • 15. What Does ‘The Cloud’ Mean for DynamicsGetting 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 DynamicsGuidance 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 DynamicsWho is concerned about security?Why should I trust <xxx> with criticalsystems?
  • 18. What Does ‘The Cloud’ Mean for DynamicsHow secure is your current ‘datacentre’? + +
  • 19. What Does ‘The Cloud’ Mean for Dynamics or0 People per Day ~120 People per DayUS Airline Fatalities US Vehicle Fatalities2010 Total = Zero 2010 Average
  • 20. What Does ‘The Cloud’ Mean for DynamicsComments 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 DynamicsThe Legal Minefield
  • 22. What Does ‘The Cloud’ Mean for DynamicsLegal 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?
  • 23. A Worked ExampleMedRecruit Limited
  • 24. What Does ‘The Cloud’ Mean for DynamicsAbout 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 DynamicsEmail 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 DynamicsDynamics 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 DynamicsCore 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
  • 28. Questions
  • 29. Thank youchris.auld@intergen.co.nztwitter.com/cauldsam@medrecruit.comtwitter.com/medrecruit