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

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

  1. 1. What Does ‘The Cloud’Mean for Dynamics?Chris J.T. AuldCTO, Executive Director – IntergenSam HazledineManaging Director - MedRecruit10 August 2011
  2. 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. 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. 4. What Does ‘The Cloud’ Mean for DynamicsSoftware as a Service Platform as a Service
  5. 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. 6. Cloud Value PropositionThe Why…
  7. 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. 8. What Does ‘The Cloud’ Mean for DynamicsWhat is driving investment decisions?
  9. 9. What Does ‘The Cloud’ Mean for DynamicsWhat are we actually buying?
  10. 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. 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. 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. 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. 14. Challenges
  15. 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. 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. 17. What Does ‘The Cloud’ Mean for DynamicsWho is concerned about security?Why should I trust <xxx> with criticalsystems?
  18. 18. What Does ‘The Cloud’ Mean for DynamicsHow secure is your current ‘datacentre’? + +
  19. 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. 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. 21. What Does ‘The Cloud’ Mean for DynamicsThe Legal Minefield
  22. 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. 23. A Worked ExampleMedRecruit Limited
  24. 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. 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. 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. 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. 28. Questions
  29. 29. Thank youchris.auld@intergen.co.nztwitter.com/cauldsam@medrecruit.comtwitter.com/medrecruit

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