Proformative presents Understanding the Dynamics of the Cloud, Current and Emerging Trends. Special thanks to Ken Piro, Western Region CTO and Sungard Availability Services.
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Understanding the Dynamics of the Cloud, Current and Emerging Trends
1. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS
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2. THE RESOURCE FOR CORPORATE FINANCE, ACCOUNTING & TREASURY PROFESSIONALS
Understanding the Dynamics of
the Cloud:
Current and Emerging Trends
Ken Piro
Western Regional CTO, SunGard
3. IT Budgets
October 2009 – Symposium/Itxpo Orlando Fl
Peter Sondergaard, SVP at Gartner and Global Head of Research
“2010 is about balancing the focus on cost, risk, and growth. For more than
50 percent of CIOs the IT budget will be 0 percent or less in growth terms. It
will only slowly improve in 2011.”
•IT Budget shifting from CAPEX to OPEX
•IT Business cases must balance cost, risk & growth
•Transitioning IT infrastructure from dedicated to shared
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4. IT Spend
Software
application
Project / Program Other
Adv. Technology / development
management 2%
planning / 20%
architecture 13%
2%
Help Desk
9%
Software
System and application
Network support /
management maintenance
11% 15%
IT administration Hardware support
15% / maintenance
13%
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6. Hosting SW vs. SaaS Savings
Year 1 Years 2 and 3 Total 3 Year Costs
Conventional Conventional SaaS Conventional SaaS
SaaS CRM
CRM CRM CRM CRM CRM
Users 150 150
License & Subscription $300,000 19% $225,000 74% $0 $450,000 $0 $675,000
Support/Upgrade Costs $54,000 3% $0 0% $108,000 $162,000 $0
Implementation &
Customization $900,000 57% $56,250 19% $900,000 $56,250
IT Infrastructure/Hosting Costs $125,000 8% $0 0% $250,000 $0 $375,000 $0
IT Personel Support $150,000 10% $0 0% $300,000 $0 $450,000 $0
Training Costs
(Admin & End Users) $45,000 3% $22,500 7% $45,000 $22,500
Totals $1,574,000 100% $303,750 100% $658,000 $450,000 $1,932,000 $753,750
Savings $1,270,250 81% $1,178,250
Implementation & Customization Savings $843,750 94%
Per User Cost $10,493 $2,025 $12,880 $5,025
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7. Added IT Costs for On Premise Apps
Application
SW
Compute
Production Storage $$ Savings
Networking Opportunity
Space, Power
Cooling
Application Application Application
SW SW SW
Compute Compute Compute
Storage Storage Storage
Networking Networking Networking
Space, Power Space, Power Space, Power
Cooling Cooling Cooling
Development Test QA 7
8. More IT Savings
Application
SW
Compute Application
SW
Storage
Compute
Networking Internal External
Storage
Space, Power Application
Cooling Networking SW
On-Premise Co-location
IaaS
SaaS
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9. Cloud Infrastructure Benefits
• Eliminate CAPEX
• Increase IT agility
• Enable faster ROI Compute
• IT expertise Storage
Networking
Space, Power
Cooling
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10. Cloud Use Cases
• Hybrid Cloud Services
– Applications Dev, Test & QA CRM / SFA
• CRM / SFA SaaS
– IT Infrastructure
Production
• Development, Test & QA
Backup / DR
• Data Recovery IaaS
– Backup
Customer
– Disaster Recovery Data-center
Dev, Test & QA
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