OneNeck AX in the Cloud Webinar Presenation

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This presentation was delivered by OneNeck IT Services' Anicetus Fernando in a webinar to explore how cloud hosting and managed services can provide the agility that businesses need while helping lower the overall costs associated with maintaining a Microsoft Dynamics AX environment.

The OneNeck Dynamics AX cloud hosting solution provides a flexible framework for an AX environment that has the ability to rapidly deploy new implementations, enhance operations, increase the ability to scale, and reduce overall costs.

Specific topics covered in this webinar included:
• Key considerations your organization should make before moving to the cloud
• An overview of the most common AX migration/deployment methods for:
o New implementations
o Upgrades to AX 2012
o Technology Refreshes
• Advantages of cloud-enabled AX hosting and management
• Additional Microsoft products that can be supported in cloud, including CRM, SharePoint, Exchange, etc.

Email scott.fitzgerald@oneneck.com if you would like a link to the presentation including audio.

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OneNeck AX in the Cloud Webinar Presenation

  1. 1. 1 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.AX in the CloudApril 2013Cloud Enabling Your OrganizationFlexibility ▪ Agility ▪ Control
  2. 2. 2 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.We Are Outsourcing& Cloud Management ExpertsA Diverse, Growing Customer Base• Over 150 customers. 45 countries. 6 continents.• Over 960 customer sites supported worldwide 24/7.• ERP focus on Microsoft.• Cloud solutions for IaaS, PaaS, SaaS.• 7 DC outside of natural disaster zones.• 98% Contract Renewal Rate since inception.• 92% of revenue from outsourcing and managed services.• Recognized by Gartner Group, Black Book of Outsourcing formarket leadership in the Managed Services Cloud space.• Operating unit of TDS Telecommunications Corporation since2011.
  3. 3. 3 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Selection of AX Customers• One of the only hosting companies in NorthAmerica to offer complete end-to-end hostingservices, including numerous integrations ofthird party specialty applications such asEnterprise Portal (EP), BizTalk, Hyper-V• Hosting some of the largest Dynamics AXenvironments in the U.S. today• Decrease deployment time and increaseflexibility for go-live and disaster recoverythrough the following Dynamics AX offerings: Virtual Private Server Option AX in the Cloud Option
  4. 4. 4 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.• @OneNeck:– Director of Enterprise Products– Director of OneNeck Cloud Competency Center (OC3)• Prior to OneNeck:– Over 25 years of business operations, applications, andtechnology solutions.– CIO for Whirlpool Financial, KEVCO Manufacturing &Distribution, and PacifiCorp Financial.– CTO at CSC for Sun Microsystems, Program Director at CSC forGeneral Dynamics.– Senior Global Director of Procurement and TechnologyResearch for Whirlpool Corp.• Certified PMP, ITIL v3, Six Sigma Green Belt.• Masters in Marketing, Finance & Supply ChainManagement from Western Michigan University &University of Texas at Arlington.About the Speaker: Anicetus Fernando
  5. 5. 5 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.AgendaCloud is your future data center, and your data center is your cloudAX in the CloudCloud Enabling Your OrganizationFlexibility ▪ Agility ▪ ControlQuick CloudReviewCloud TransitioningConsiderationsCloud EnabledAdvantageMigration &Deployment
  6. 6. 6 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Cloud RealityAlmost everyone’s doing “something” in the CloudCloud Computing Evolution. Research Report, Sept. 2012.WaveLength Market Analytics LLC and Winn Technology Group, Inc.The steady evolution of powerfulcomputing technology, plentiful Internetnetwork bandwidth, constant pressure onCIOs to do more with less, and the rapidgrowth of mobile applications allcontribute to the increasing adoption ofcloud computing services.AB
  7. 7. 7 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Cloud BenefactorsIT tools and apps, moving to the CloudCloud Computing Evolution. Research Report, Sept. 2012.WaveLength Market Analytics LLC and Winn Technology Group, Inc.ACBD
  8. 8. 8 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Cloud DriversRapid growth in outsourcing & cloud services due to benefits of drivers.Cloud Computing Evolution. Research Report, Sept. 2012.WaveLength Market Analytics LLC and Winn Technology Group, Inc.ABCAX In-House (CapEx) AX in the Cloud (OpEx)Wasted capacity = Wasted CapEx
  9. 9. 9 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Managed Services ConcernsReduced control… a transformation factor of cloud…the market for cloud usage is growing, the adoption rate continues to suffer from the perception that it is a risky endeavor. Panorama’s experience has shown that providerstypically have more secure and reliable solutions than any internal IT group ever could. Panorama Consulting Solutions, Denver CO. 2013 ERP Report.
  10. 10. 10 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.AgendaCloud is your future data center, and your data center is your cloudAX in the CloudCloud Enabling Your OrganizationFlexibility ▪ Agility ▪ ControlQuick CloudReviewCloud TransitioningConsiderationsCloud EnabledAdvantageMigration &Deployment
  11. 11. 11 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Critical Decisions: Litmus TestUnderstanding Core• Litmus test to evaluate what is “core” to a business:– If you are starting your business from scratch today, would youbuild this capability internally?– Would other companies hire you to do this for them?– Will tomorrow’s leaders of the company come from this area ofthe business?– Does this process create or defend a unique competitiveadvantage for your firm?– Is this business process directly contributing to business growthor expansion?– Are you receiving world-class services at a competitive costtoday?• If you answered “NO” to two or more of thesequestions, chances are you are a good candidate forcloud managed services & outsourcing .Source: Michael F. Corbett of FirmBuilder.com developed litmus test.
  12. 12. 12 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Critical Decisions: StrategyUnderstanding Importance & Managed Services Strategy• Understanding core businessprocesses and managed serviceselements of IT.• Different managed servicesjourneys:– Manage technology elements of IT tocut costs (efficiency).– Manage technology elements of IT tocut costs and find ways for incrementalbusiness process operationsimprovement (enhancement).– Manage technology and/or businessprocess elements to reengineer(enhancement).– Manage technology and/or businessprocess elements to the next level ofbusiness execution (transformation).
  13. 13. 13 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Critical Decisions: CSFsMatching risks & rewards to organization cultureAB
  14. 14. 14 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Critical Decisions: Go/No GoTo Outsource or Not to Outsource?• Exercises:– If you answered “NO” to two or more of these questions,chances are you are a good candidate for using managedservices.– Understanding core business processes and managedservices elements of IT.– Matching risks & rewards to your organization culture.• To outsource or not to outsource:– Can you relinquish control to a third party?– Can you stomach this simple premise that you may not be calling all theshots?• Make a decision to take advantage of the cloud.
  15. 15. 15 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Governance: StrategyPreparing for Marriage“An outsourcing relationship is like a marriage. Theromance of the courtship or the airtight codicils of theprenuptial agreement do not contribute to the ongoingstrength of the relationship.”• Involve the right people to compare, on an apples-to-applesbasis, the provider’s capabilities, strengths, weaknesses, agilityand flexibility.• Skills to manage the provider is different from the skillsrequired to run an IT department.• More mission critical the need, greater the need for “high-touch” delivery, cultural alignment and clear process forgovernance.• Align the relationship on principles and guidelines instead ofrules to prevent erosion of value and preservation of the “end-user” experience.• Don’t build a structure that motivates your provider to merelysatisfy the contract as opposed to delivering value beyond thestatistics.Source: Mike Atwood. Everest Group article The Art of Governance
  16. 16. 16 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Governance: OperationalA Framework for Success—Tactical to Operational“Minimize Disruption to BusinessOperations” & “Reduce operationsrisk for IT and business” two keyprinciples to governance requires:• Strategic, Tactical , and OperationalAlignment• Value Delivery i.e. Optimizing Costs• Resource Management, i.e. Alignmentof Resources• Risk Management i.e. Compliance,Reduce Operational Risks.• Performance Measurement i.e.Production, Project, Delivery andPerformance.AB
  17. 17. 17 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Essential MetricsWhat does success look like?• According to a Gartner Group study, 38% of the respondentsindicated dissatisfaction with managed services providers.• Ideas and questions to consider for success:– Senior leadership involvement– Resilience of communication– Creating a mindset of “provider as an extension of IT” by finding providers who arepartners.– Revisiting business objectives for outsourcing periodically and realigning with theprovider.– Go beyond just focusing on price to get the most of the relationship.– Customer care– SLAs– QoS– IT best practices– Problem resolution.– Flexibility.MITs Center for Information Systems Research (CISR) found that “transaction relationships” – which are clearlydefined in terms of the processes they cover and enhance – lead to greater customer satisfaction than any othertypes of outsourcing relationship.
  18. 18. 18 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.AgendaCloud is your future data center, and your data center is your cloudAX in the CloudCloud Enabling Your OrganizationFlexibility ▪ Agility ▪ ControlQuick CloudReviewCloud TransitioningConsiderationsCloud EnabledAdvantageMigration &Deployment
  19. 19. 19 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.AX in the CloudCloud Managed Services OfferingAX in the Cloud: User based monthly licensing fees Minimum one month contract term 99.9% SLA with ITIL & Six Sigma CloudManaged Services Licensing excluding Dynamics AX accesslicenses Production & Test environment DB Storage: 50GB + 2GB per Core* user Secured Web based access Patching & code migration Backup SSAE16 SOC 1 Type 2 Unlimited bandwidth U.S. based 24x7 worldwide support Optional Dynamics AX SPLA licensesavailable MS Gold certified hosting & MBScertified resources.*Core user: Enterprise, Functional, Task user as defined by Microsoft AX license.
  20. 20. 20 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.On-Premise vs. AX in the Cloud AX in the Cloud: 100 AX Enterprise users. User based monthly licensing fees Minimum one month contractterm 99.9% SLA with ITIL & Six SigmaCloud Managed Services Licensing excluding Dynamics AXaccess licenses Production & Test environment Secured Web based access Patching & code migration Backup SSAE16 SOC 1 Type 2 Unlimited bandwidth U.S. based 24x7 worldwidesupport Optional Dynamics AX SPLAlicenses available MS Gold certified hosting & MBScertified resources.~70-80% Savings Using AX in the Cloud On-Premise: 100 AX Enterprise users. Direct Server Hardware• Hardware Purchase (13 Servers and SAN) -cost/4 year straight line depreciation• Hardware Annual Support & OS Licensing Labor• AX and SQL Server Administration (1 FTE)• SysAdmin, Network Admin, SecurityAnalyst, Backup Admin, etc. (1 FTE) Outside Services• Iron Mountain Tape Rotation• Annual Audit Costs Utilities• Power Consumption Costs ($0.12 per kWH)• HVAC Power Consumption Required• Data Center Space Does not include 24x7 supportACB
  21. 21. 21 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Reasons for Implementing ERPTop reasons by order of importancePanorama Consulting, Denver CO.http://Panorama-Consulting.com/resource-center/2013-erp-report/AX in the Cloud: Provides computing capacity aspart of the service for businessperformance and companygrowth. Provides additional DB storage ondemand beyond Core. Value creation for your customersby providing products andservices quicker without having towait for computing resources. Eliminate CapEx requirementswith predictable monthlyexpenses. Time to deployment decreases tocatch up with your competitors.
  22. 22. 22 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Benefits of AX in the CloudCloud Enabled AdvantageSource: The Changing State of IT Operations. Reducing Complexity to Drive BusinessValue. Forrester Research. October 2012.ABAX in the Cloud: Eliminates complexity andguarantees 99.9% SLA. Provides MS Gold certifiedhosting & MBS certifiedresources. Gives CIO and IT staff time tofocus on Business ProcessManagement andcommunication with business.AX in the Cloud: Eliminates impact to business byallowing IT to provide whatbusiness needs when it needs. Actively manages OS patchesthat can become a lower priorityfor in-house IT staff.
  23. 23. 23 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Benefits of AX in the CloudCloud Enabled Advantage (cont.)BAX in the Cloud: 99.9% SLA on day 1. Cloud enable your ERP and ina few days have a test and aproduction environment readyto go. Focus on business processneeds instead of IT needs.AX in the Cloud: Satisfy business requirements ofperformance, availability, time tomarket and cost control.ASource: The Changing State of IT Operations. Reducing Complexity to Drive BusinessValue. Forrester Research. October 2012.
  24. 24. 24 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Flexibility to GrowCloud Enabled Advantage
  25. 25. 25 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.AgendaCloud is your future data center, and your data center is your cloudAX in the CloudCloud Enabling Your OrganizationFlexibility ▪ Agility ▪ ControlQuick CloudReviewCloud TransitioningConsiderationsCloud EnabledAdvantageMigration &Deployment
  26. 26. 26 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.1. Clearly define project goals: Determine if this upgrade is important to business or IT or both. Versions 3.0 and 4.0 are no longer supported by Microsoft. Old release use 32 bit hardware and old OS, and maintainability is difficult.2. Understand new functionality: Use a SI for advise and/or upgrade/re-implementation. Old releases have business process limitations and “no support” makes it moredifficult for IT and business. New capabilities like HR, SRM (supplier relationship management), Payroll, arenow included in the core with features like multi-national planning and multisite. Enhancements in retail include retail data model, category management, promotionmanagement, etc. Enhancements in lean manufacturing and process manufacturing. Will acquisitions require these features, so understand the business strategy.3. Move forward with future releases in mind: Minimize or eliminate customizations. Modify company process if necessary before customizations. Keep custom code in its own library separate from “core” AX code.Source: Arbela Technologies. Arbelatech.com. Mar. 2013Top 10 CSFs to AX in the Cloud (2012)
  27. 27. 27 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Top 10 CSFs to AX in the Cloud (2012)Continued4. Determine roll out strategy: Location by location or all.5. Be realistic with scope: Stick to scope and move additional changes to next phase. Agree with business to modules or transactions that are included.6. Plan for data problems: Data architecture changes with AX2012. Upgrade may be too messy due to data issues, may require re-implementation.7. Define report strategy and execution: Use of SQL Server Reporting Services (SSRS), 2012 R2 BI features, 3rd party, etc.8. Keep the project moving: Keep team momentum. Address doubts, focus on mission.9. Foster a culture of change: Encourage future updates and next phases.10.Plan, re-plan and re-plan: Incorporating new releases during upgrade/re-implementation. Other organizational changes beyond control of project.Source: Arbela Technologies. Arbelatech.com. Mar. 2013
  28. 28. 28 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Costs, Functions, FeaturesMigrating from 2009 to 2012 On avg. 1.5 to 4.5 times higher in cost forERP functions necessary to upgrade, run andmaintain AX 2012. Understand new licensing requirements,from concurrent user to named user(Enterprise, Functional, Task and Self Serve). Savings can come from AX in the Cloudusage. Degree of fit denotes function and featurechanges in 2012. All modules available to be used for onenamed user price.ABSource: Arbela Technologies. Arbelatech.com. Mar. 2013
  29. 29. 29 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Functional & Technical ChangesExamplesFunctional TechnicalSource: Microsoft Corp. Convergence 2013.
  30. 30. 30 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Goals & Functional AnalysisExampleSource: Microsoft Corp. Convergence 2013.
  31. 31. 31 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Upgrade or Re-ImplementMigrating to 2012 Consideration Example Standard: Upgradeable through a standard path. ~20-30% companies choose this option. Hybrid: Regular AX upgrade path while leveraging some of the new capabilities in AX 2012 like thenew product structure, etc. ~30% companies choose this option. Re-implement: If it was not set up properly in original system its an opportunity to start fresh.Includes data migration with new implementation. ~30-40% companies choose this option.Source: Arbela Technologies. Arbelatech.com. Mar. 2013
  32. 32. 32 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.On-Premise to AX in the CloudSource-to-target Migration Example If necessary involve a SI for advise and/or to perform the migration. Use Microsoft Sure Step methodology to ensure project management success. Use Microsoft RapidStart business process configurator to decrease time todeployment
  33. 33. 33 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential. Online user community for knowledge sharing: http://community.AXUG.com AXUG events: http://www.AXUG.comAXUGJoin the User Group
  34. 34. 34 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Hosted Application Management & MoreCRM, Sharepoint, Exchange, Microsoft Technology Stack• OneNeck provides a comprehensive set of FoundationApplication Services to support the MicrosoftTechnology Stack, CRM, Sharepoint, Exchangeincluding management of database and applicationlayers.• Currently supports over 100 different applications, withspecial focus on Microsoft including including third-partyenhancement packages.• For more information contact: Scott Fitzgerald. Regional Director, Southwest 512-565-4627. Rick Kanya. Regional Director, Northeast 914-715-7655 JR Mariottini. Regional Director, Midwest 331-220-4875. Gill Shapira. Regional Director, West 650-759-9110 .
  35. 35. 35 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Wrapping UpFocus on success of the Relationship Focus on the managed services use holistically depending on the strategicimportance of the business process and the IT elements, not just on price. Cloud enable your ERP with AX in the Cloud. Recognize, value and encourage the ability of the provider to infuse bestpractices and generate continual improvements. Flexible agreements encourage the sharing of risk and reward and theextension of business value which are essential to mutual success. The provider has to be able to make a profit. Covered: Quick review of the cloud: who is using, how, for what? Making critical decisions ahead of time, governance and metrics. Advantages of AX in the Cloud, flexibility, agility and control. Migration from 2009 to 2012, what you need to know and focus on. Procurement managers are important but seniorexecutives from business and IT need to set businessgoals and objectives of the relationship.
  36. 36. 36 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.Thank You!Questions?
  37. 37. 37 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.AppendixReferenced URLsOneNeck IT Serviceswww.OneNeck.comWaveLength Market Analyticshttp://www.wlanalytics.com/Winn Technology Grouphttp://www.winntech.net/Panorama Consultinghttp://Panorama-Consulting.com/resource-center/2013-erp-report/Microsoft Dynamics AX 2012 (Oct) Systems Requirementshttp://www.microsoft.com/global/sv-se/dynamics/PublishingImages/Microsoft-Dynamics-AX-2012_R2-System-requirements.pdfMicrosoft Sure Step methodologyhttp://msdn.microsoft.com/en-us/library/dd979122.aspxMicrosoft RapidStart business process configuratorhttp://technet.microsoft.com/en-us/library/hh429439.aspxMicrosoft Dynamics Resource Libraryhttp://www.microsoft.com/en-us/dynamics/resource-library.aspx
  38. 38. 38 Copyright © 2013 OneNeck IT Services Corporation. All Rights Reserved. Confidential.AppendixMicrosoft TerminologyCommon Microsoft Terminologyhttp://support.microsoft.com/kb/824684• Cumulative update (CU): is a roll-up update that contains all previous critical on-demand hotfixesto date. A CU contains fixes for issues that meet the hotfix acceptance criteria. These criteria mayinclude the availability of a workaround, the effect on the customer, the reproducibility of theproblem, the complexity of the code that must be changed, or other reasons.Additional Information: This update can be requested by any customer, regardless of their supportlevel. These updates are released on every two months.• Update Rollup: is a tested, cumulative set of hotfixes, security updates, critical updates, andupdates that are packaged together for easy deployment. A rollup generally targets a specific area,such as security, or a component of a product, such as Internet Information Services (IIS).Additional information: Microsoft update rollups are available for customers to download and areaccompanied by a Microsoft Knowledge Base article. Customers may not redistribute updaterollups without written, legal consent from Microsoft.• Upgrade: is a software package that replaces an installed version of a product with a newerversion of the same product. The upgrade process typically leaves existing customer data andpreferences intact while replacing the existing software with the newer version.

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