Cloud Computing for Nonprofit Organizations Joseph Scarano February 21, 2012A Service Of: Sponsored by:
Protecting and Preserving the www.cjwconsulting.com Institutional Memories of Nonprofits Since 1993 (866) 598-0430 firstname.lastname@example.orgA Service Of: Sponsored by:
Affordable collaborative data management in the cloud.A Service Of: Sponsored by:
Today’s Speaker Joseph Scarano CEO, AraizeAssisting with chat questions: Hosting:April Hunt, Nonprofit Webinars Cheri J Weissman, CJW Consulting & Services, Inc.A Service Of: Sponsored by:
Joseph Scarano – CEO of Araize, providers of software solutionsto nonprofit organizations since 1985. Products includenonprofit accounting, fund raising and payroll.
Topic and Objectives Overview of cloud computing – What is cloud computing? What types of cloud computing may affect your organization? Objectives: • Benefits of the cloud • Risks of the cloud • Understanding the different types of cloud • How is it impacting nonprofits
What is the Cloud? Cloud computing is the delivery of computing as a service rather than a product, whereby shared resources, software, and information are provided to computers and other devices as a service over a network, typically the Internet. Cloud computing provides computation, software, data access, and storage resources without requiring users to know the location and other details of the computing infrastructure. Focus on Applications and Services
Computing 360⁰ 1960s and 1970s - Mainframes and Mini Computers 1980s and 1990s – PCs and Networks 2000s – Internet 2010s and beyond – Mobile Computing
Computing 360⁰ Yes, Dorothy. But someone does!
Cloud Computing Growth Worldwide Cloud Computing Market is currently $8 billion. • 40% in the US. • Spending on Cloud Services will increase at annual rate of 27%. • SaaS market will hit $14 billion by 2014.
Why the Cloud? Flexibility Additional Capacity Collaboration Shared Access Centralize Your Information Cost Security
Benefits of the Cloud Reduced Costs - Fewer IT hours required for network setup, software installation, upgrades and maintenance. Lower costs associated with in house server purchases and maintenance. Lower up front costs for software purchases. Pay as you go model, like a utility. Saves Time - Rapid deployment of software applications, no need to install software and configure networks and security. Better response time in most applications compared to standard server and hardware.
Benefits of the Cloud Scalability - You can scale your needs seamlessly rather than having to go out and purchase new equipment and software. Convenience - Staff and volunteers can access your applications from almost any Internet connection without setting up VPNs, or systems to allow remote access to your servers. Open Architecture -You are no longer tied to a specific operating system, since most cloud applications will run on all web browsers.
Benefits of the Cloud Disaster Relief - Your data will be stored in a secure data center. You won’t have to worry about data loss from natural or unnatural disasters. Security - Your data will be stored with companies that are SAS 70 compliant. Data centers are protected by firewalls, staffed by employees that have passed background checks and require ID badges for access. Ultimately, much more secure than you can ever afford.
Risks of the Cloud Loss of Connectivity - If you Internet connection goes down, you don’t have access to your applications. If you have a slow Internet connection, then cloud computing probably will not work for you. Service Level - Make sure your provider is reputable and provides an acceptable level of uptime and rapid response. Regulatory Compliance - If you require HIPAA or PCI compliance, or other compliance, make sure your provider is certified.
Types of Cloud Computing IaaS - Infrastructure as a service. Hardware, servers, storage. PaaS – Platform as a Service - Operating systems, database management, system monitoring. SaaS – Software as a Service. Software applications, full web services.
How is your Nonprofit using the Cloud now? Email - SaaS Web site - PaaS and SaaS Online banking - SaaS Off-site Backup - IaaS Payroll Service - SaaS Social Media - SaaS Webinars - SaaS eCommerce - SaaS
Common SaaS Applications Software as a Service Document Sharing – Google Docs, MS Office Live, Zoho CRM Solutions – Salesforce, eTapestry, Convio Accounting – NetSuite, Intaact, FastFund Payroll – ADP, Paychex Backup – Mozy, Carbonite Collaboration – Webex, GoToMeeting, ReadyTalk Social Networking – Facebook, LinkedIn, Twitter, Google +
Benefits to Your Organization Staff can focus on what it does best – mission and programs Always have the latest technology Fixed, predictable, measurable costs Reduce IT expenses Save on total cost of ownership Improve capabilities and service levels
Things to Consider More IT choices make decision making more complicated and confusing. Some cloud based services are still in their early development stages. Haven’t reached the level of product maturity compared to products on the market for many years. Other services are more mature and well developed, such as web-hosting, conferencing and CRM.
Things to Consider Lower Barrier to Entry Because of the pay per user subscriber model, large scale enterprise applications can be cost effective for small organizations. The outright purchase of these applications would not be cost effective. Total Access More staff and volunteers have access to the SaaS applications. Fund Raising, accounting, volunteer management have solid offerings in the cloud.
Things to Consider Software Costs Legacy software applications installed on computers and networks require maintenance and upgrades. Migration to the cloud to replace these legacy systems will be gradual. Monthly fixed fees will increase. Buying and upgrading software costs will decrease.
Things to Consider Hardware Costs Hardware costs will decrease as there will be less reliance on internal networks and servers. New computers will be less expensive, since most of the computing power will be moving to the cloud. More money will be spent on mobile devices – smart phones and tablets. Internet and telecommunication costs will increase due to higher bandwidth requirements.
Economy of the Cloud Reduced capital costs Lower IT hardware costs Lower IT staff costs Higher Operational Costs Monthly service fees for licensed SaaS More reliable Internet and telecommunications
Evaluating a Cloud Solution Consider the following when selecting a vendor for a cloud solution: Features Reliability Connectivity Security and compliance Backup procedures Ownership of data Costs – upfront, on-going and extras
Evaluating a Cloud Solution Service Level Agreements Contains performance metrics Problem management resolution Security Data backups Data ownership
Cloud Security Advantages External cloud data storage reduces exposure of sensitive data Automated security management Redundancy and disaster recovery in place Disadvantages Trusting vendor Customer’s inability to respond to audit findings Indirect administrator accountability Loss of physical control
Review Cloud computing has a lot to offer, especially to small nonprofits Cloud solutions are easier to implement, more secure and are often greener because of reduced IT requirements. Cloud solutions are not right for every organization or software function Review with peers, board, staff and consultants before deciding to reach for the clouds.