Welcome to
Cloud Computing Demystified
Introduction
Cloud Computing Demystified
Daniel Haurey, President
President
Please Silence Your Phone
WORKSHOP 304
Our Agenda
• Defining Cloud
• Cloud Terms and Related Acronyms
• The Business Case for Cloud
• Cloud Benefits
• Understand...
What is the cloud?
What is Cloud?
A very general term for anything that
involves delivering computing services over
the Internet.
• Ever used...
Where is the cloud?
• Data center: a facility used to house
computer systems and associated
components, such as telecommun...
Data Centers
View from inside a typical data center
PUBLIC VERSUS PRIVATE CLOUD
Clouds may be public or private
 A public cloud sells services to anyone on the Internet.
Cur...
It’s Not all or Nothing
Hybrid Cloud
Some organizations place 100% of their computing in the cloud. Others rely on
the clo...
Cloud Constants
 Sold on demand
 Buy as much or as little as you need
 Elastic
(Easy to scale up or down)
 Managed by ...
Acronyms Anyone?
Cloud services are broadly divided into four categories:
S o f t w a r e - a s - a - S e r v i c e ( S a ...
Software-as-a-Service (SaaS)
With SaaS, the vendor supplies the hardware
infrastructure and the software.
The user accesse...
Desktop-as-a-Service (DaaS)
Desktop-as-a-service:
• A virtual PC that lives in the cloud
• You can do the same thing in ho...
Infrastructure-as-a-Service (IaaS)
• The most straightforward of the four models
• IaaS is the virtual delivery of computi...
Platform-as-a-Service (PaaS)
Platform-as-a-service: A set of software and product
development tools hosted on the provider...
Why Cloud?
Making the Business Case
 Easier to Manage
 Might Save Money
 More Secure
 Highly Reliable
 Eliminate VPNs...
Benefits by Stakeholder
What’s in it for me?
STAKEHOLDER CLOUD COMPUTING OUTCOME
Business Owners
Practice Managers
Elimina...
Performing a Total Cost of Ownership
(TCO) Analysis
The “Myopic” Method
“Exigent’s Cloud Cost Analysis Calculator is the r...
Performing a Total Cost of Ownership
(TCO) Analysis
The “Thinking Person’s” Method
“Exigent’s Cloud Cost Analysis Calculat...
COST CONSIDERATIONS
• Devil is in the details
• Resist temptation to look only at hard costs
Electricity
Unexpected Down...
ELECTRICITY
 Surprise! Running servers in your office costs
hard dollars.
 Older servers are much less energy efficient
...
Unexpected Downtime
• Unexpected downtime will happen
 Power and Internet failures are most
common
 Downtime is expensiv...
Unplanned Repair Costs
• With cloud, any and all repair costs are
covered by the provider.
• With on-premise IT infrastruc...
Savings on PCs
• Generally don’t powerful PCs with cloud
• Less powerful PC's saves on average $200 to $300 per
PC as you ...
Savings (Time & Money) on PC Setup Costs
• Fewer applications to install and
maintain on each new PC
• Lower labor costs
•...
Software Version Upgrades
(IaaS)
Microsoft software version upgrades are included
Example: Your organization is currently ...
The Thinking Person’s Analysis
VETTING CLOUD PROVIDERS
Questions to Ask, Things to Consider
• How Transparent is the Provider?
• Where (exactly) is my da...
TurnKey Cloud™ Exigent
Private Cloud, Infrastructure-as-a-Service (IaaS)
• Servers
• Desktops
• Complete Catalog of Micros...
Recent Migration
Tri-County Orthopedics
• 4 Office Locations in NJ
• 250 Employees
• 16 Physicians
• 7 Physician Assistant...
IT – A Ubiquitous Commodity
• You wouldn’t build your own power plant
• You wouldn’t dig your own water well
• You may not...
The Bottom Line
• Cloud is Here to Stay
• Resistance MAY be futile
• Always Follow the Money
• If it makes you uncomfortab...
Q&A
Exigent Technologies
Dan Haurey
973.804-2888
dan@exigent.net
www.exigent.net
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NJMGMA Practice Management Conference (PMC2014) - Cloud Computing Demystified

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Cloud Computing Demystified - As delivered by Daniel Haurey at the NJ MGMA PMC2014 Conference in Atlantic City, NJ

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NJMGMA Practice Management Conference (PMC2014) - Cloud Computing Demystified

  1. 1. Welcome to Cloud Computing Demystified
  2. 2. Introduction Cloud Computing Demystified Daniel Haurey, President President Please Silence Your Phone WORKSHOP 304
  3. 3. Our Agenda • Defining Cloud • Cloud Terms and Related Acronyms • The Business Case for Cloud • Cloud Benefits • Understanding Your Options • Conducting Proper ROI • Q&A To Receive a Copy of This Presentation, email Dan at: dan@exigent.net
  4. 4. What is the cloud?
  5. 5. What is Cloud? A very general term for anything that involves delivering computing services over the Internet. • Ever used Gmail or Facebook? You’ve used the cloud • It doesn’t live on your computer (usually not “installed”) • You can access it from anywhere Definition of cloud computing by the National Institute of Standards and Technology (NIST): “Cloud computing is a model for enabling convenient, on- demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort”
  6. 6. Where is the cloud? • Data center: a facility used to house computer systems and associated components, such as telecommunications and storage systems. Features redundant or backup power supplies, redundant data communications connections, environmental controls (e.g., air conditioning, fire suppression) and a high level of physical security. The resources (networks, servers, storage, applications, and services) reside in a data center
  7. 7. Data Centers View from inside a typical data center
  8. 8. PUBLIC VERSUS PRIVATE CLOUD Clouds may be public or private  A public cloud sells services to anyone on the Internet. Currently, Amazon Web Services (AWS) is the largest public cloud provider.  A private cloud is a proprietary network or a data center that supplies hosted services to a limited number of people.. (Exigent Technologies offer private cloud) Private or public, the goal is to provide easy, scalable access to computing resources.
  9. 9. It’s Not all or Nothing Hybrid Cloud Some organizations place 100% of their computing in the cloud. Others rely on the cloud for a portion of the infrastructure. Example: An medical practice that has thousands of images or documents stores those files on Amazon’s “Glacier” public cloud, but maintains their EHR application in-house. Hybrid Cloud is a Viable and Popular Choice
  10. 10. Cloud Constants  Sold on demand  Buy as much or as little as you need  Elastic (Easy to scale up or down)  Managed by the cloud provider (Keeping it running is not your problem)  You only need an access device (computer, tablet, etc.) and Internet access to use it General Characteristics of Cloud Services
  11. 11. Acronyms Anyone? Cloud services are broadly divided into four categories: S o f t w a r e - a s - a - S e r v i c e ( S a a S ) ( P a a S ) P l a t f o r m - a s - a - s e r v i c e I n f r a s t r u c t u r e - a s - a - S e r v i c e ( I a a S ) D e s k t o p - a s - a - S e r v i c e ( D a a S ) Everything (“as a service”)
  12. 12. Software-as-a-Service (SaaS) With SaaS, the vendor supplies the hardware infrastructure and the software. The user accesses the product through a front-end portal or browser. SaaS is a very broad market. Services can be:  Web-based email  Inventory control  Database processing  EHR & Practice Management Because the service provider hosts both the application and the data, the end user is free to use the service from anywhere.
  13. 13. Desktop-as-a-Service (DaaS) Desktop-as-a-service: • A virtual PC that lives in the cloud • You can do the same thing in house, but it can be costly and very complex (“VDI”) • Gaining traction now that Microsoft is offering it on Azure
  14. 14. Infrastructure-as-a-Service (IaaS) • The most straightforward of the four models • IaaS is the virtual delivery of computing resources in the form of hardware, networking, and storage • May also include the delivery of operating systems and virtualization technology to manage the resources • Rather than buying and installing the physical resources in your office, you rent them, as needed Exigent Technologies offers (IaaS)
  15. 15. Platform-as-a-Service (PaaS) Platform-as-a-service: A set of software and product development tools hosted on the provider's infrastructure. • Developers create applications on the provider's platform over the Internet • PaaS providers may use APIs, website portals or gateway software installed on the customer's computer • Force.com, (an outgrowth of Salesforce.com) and Google’s App Engine are examples of PaaS
  16. 16. Why Cloud? Making the Business Case  Easier to Manage  Might Save Money  More Secure  Highly Reliable  Eliminate VPNs  Offers Greater Flexibility  Increased Productivity *http://www.microsoft.com/en-us/news/press/2013/jun13/06-11cloudstudypr.aspx 94% of small and medium businesses polled in a recent Microsoft study report greater security benefits from Cloud Services versus former on-premises technology*
  17. 17. Benefits by Stakeholder What’s in it for me? STAKEHOLDER CLOUD COMPUTING OUTCOME Business Owners Practice Managers Eliminate acquisition cycle Pay for consumption Predictive Costs Reduce Total Cost of Ownership (TCO) Cost Certainty (budgeted) IT Dept. Instant Deployment Access to Best in Class Infrastructure Reduce Manpower Focus on Higher Level Strategy (“Out of the weeds”) Developers Self Service Rapid Access to Services Powerful APIs Faster Development Cycle Lower Development Costs End-Users Anytime, Anywhere Access Access to Latest Software Increased Productivity
  18. 18. Performing a Total Cost of Ownership (TCO) Analysis The “Myopic” Method “Exigent’s Cloud Cost Analysis Calculator is the real deal. Whenever our clients are looking for IT support, we tell them to call 855-No-Downtime.” - Partner Leading New Jersey-based Accounting Firm Example TOTAL CLOUD COSTS OVER 36 MONTHS: $36,000 ($1,000 per month) COST TO PURCHASE AND “OWN” HARDWARE AND SOFTWARE FOR ON PREMISE INSTALL: $35,000 Simple, right? “$35,000 ÷ 36 Months = $972.22 Per Month”
  19. 19. Performing a Total Cost of Ownership (TCO) Analysis The “Thinking Person’s” Method “Exigent’s Cloud Cost Analysis Calculator is the real deal. Whenever our clients are looking for IT support, we tell them to call 855-No-Downtime.” - Partner Leading New Jersey-based Accounting Firm TOTAL CLOUD COSTS OVER 36 MONTHS: $36,000 COST TO PURCHASE AND “OWN” HARDWARE AND SOFTWARE FOR ON PREMISE INSTALL: $35,000 But wait! There’s more…
  20. 20. COST CONSIDERATIONS • Devil is in the details • Resist temptation to look only at hard costs Electricity Unexpected Downtime Unplanned Repair Costs Savings on PCs Savings on PC setup costs Software Version Upgrades
  21. 21. ELECTRICITY  Surprise! Running servers in your office costs hard dollars.  Older servers are much less energy efficient than newer ones.  It costs approximately $357 to $471 per year to run a single server
  22. 22. Unexpected Downtime • Unexpected downtime will happen  Power and Internet failures are most common  Downtime is expensive! (Example) A power outage at your office where 20 employees can’t work due to a server being down. (20) unproductive employees who are paid an average of ($15) per hour for a period of (10) hours (20 Employees X $15 Per Hour X 10 Hours = $3,000.00)* *per incident w i t h o n - p r e m i s e I T
  23. 23. Unplanned Repair Costs • With cloud, any and all repair costs are covered by the provider. • With on-premise IT infrastructure, you have to allot for unplanned server, UPS and ancillary repair or recovery costs (over the life of your servers) FACT: With on-premise IT, stuff will break. Parts and labor (money) will be needed in order to fix it
  24. 24. Savings on PCs • Generally don’t powerful PCs with cloud • Less powerful PC's saves on average $200 to $300 per PC as you replace them • May be able to use “dumb terminals” (Example) You plan on replacing 15 computers over the next 3 years. That translates into a potential savings of up to $3,000.00 to $4,500.00
  25. 25. Savings (Time & Money) on PC Setup Costs • Fewer applications to install and maintain on each new PC • Lower labor costs • Less of an impact on employees productivity
  26. 26. Software Version Upgrades (IaaS) Microsoft software version upgrades are included Example: Your organization is currently running Microsoft Exchange Server 2010 and you would like to upgrade to the latest version (currently 2013). It’s free.* (PaaS) & (SaaS) You reap the benefits of new features without lifting a finger. It doesn’t cost you anything. *Microsoft SPLA licensing entitles you to use latest version of software
  27. 27. The Thinking Person’s Analysis
  28. 28. VETTING CLOUD PROVIDERS Questions to Ask, Things to Consider • How Transparent is the Provider? • Where (exactly) is my data / Where is the data centers? • Is the Data Center SSAE-16 Certified? • How long has the company been in business? • How long has the data center been in business? • Can you visit the data center and tour the facility? • Who owns the equipment? • Are they an official Microsoft Hosting Provider? • What industry accreditations do they have? • Can they provide a third-party audit document?
  29. 29. TurnKey Cloud™ Exigent Private Cloud, Infrastructure-as-a-Service (IaaS) • Servers • Desktops • Complete Catalog of Microsoft Software (through Microsoft Hosting Agreement) • Multiple Storage Tiers (RAID 1/5/10/6/50/60) • Local, World Class Data Center (Parsippany, NJ) • N+1 or Better Redundancy • Completely Managed (Unlimited Support for Hosted Apps and NOS) • Totally Customized for Your Organization
  30. 30. Recent Migration Tri-County Orthopedics • 4 Office Locations in NJ • 250 Employees • 16 Physicians • 7 Physician Assistants (PA) • Vitera Intergy v9.00 EHR, Zix Email Encryption, Microsoft Exchange Email, PACS, Patient Portal, Practice Analytics and more. “Exigent is the easy button for us when it comes to IT. Before the ink dried on our new services contract, Exigent had our move to the cloud planned out and the execution has been flawless.” - Dr. Michael Goldberger, Tri-County Orthopedics, Exigent customer since 2005
  31. 31. IT – A Ubiquitous Commodity • You wouldn’t build your own power plant • You wouldn’t dig your own water well • You may not want to continue to supply and maintain all of your own IT Just like other transport infrastructures, IT has become commoditized to a certain degree
  32. 32. The Bottom Line • Cloud is Here to Stay • Resistance MAY be futile • Always Follow the Money • If it makes you uncomfortable – IT SHOULD
  33. 33. Q&A Exigent Technologies Dan Haurey 973.804-2888 dan@exigent.net www.exigent.net
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