Cloud Xero #1 - Intro to Cloud Computing

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This is a presentation given at the first Cloud Xero event held in San Francisco on February 29, 2012.

As this was the first in an ongoing series of Cloud Xero events, we decided to introduce the concepts of cloud computing especially as it relates to the accounting industry. We followed this with a demo of Xero - Beautiful Accounting Software (http://xero.com/).

All images used under creative commons and are owned by their respective owners.

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Cloud Xero #1 - Intro to Cloud Computing

  1. 1. An introduction to the CloudCraig Walker, CTO @storminwalker
  2. 2. So what is the Cloud?
  3. 3. It’s not using a laptop on a mountain...
  4. 4. or on an airplane...
  5. 5. Unless you’ve been living under a rock... you’re in the Cloud
  6. 6. So what is the Cloud?
  7. 7. So what is the Cloud?It is computing on the Internet.
  8. 8. The mainframe era...
  9. 9. with the client-server era...
  10. 10. The Cloud
  11. 11. Out of the box and into the cloud On-Premise Applications Data You manage O/S Virtualization Servers Storage Networking
  12. 12. Out of the box and into the cloud On-Premise Infrastructure (as a Service) You manage Applications Applications Data Data O/S O/S You manage Managed by vendor Virtualization Virtualization Servers Servers Storage Storage Networking Networking
  13. 13. Out of the box and into the cloud Infrastructure Software On-Premise (as a Service) (as a Service) You manage Applications Applications Applications Data Data Data Managed by vendor O/S O/S O/SYou manage Managed by vendor Virtualization Virtualization Virtualization Servers Servers Servers Storage Storage Storage Networking Networking Networking
  14. 14. Out of the box and into the cloud Infrastructure Hosted Software (as a Service) Applications (as a Service)You manage Applications Apps Apps Applications You manage Data Data Data Data Managed by vendor Managed by vendor O/S O/S O/S O/S Managed by vendor Virtualization Virtualization Virtualization Servers Servers Servers Storage Storage Storage Networking Networking Networking
  15. 15. But why the Cloud?
  16. 16. Anytime. Anywhere. Any device.
  17. 17. Simplification of IT
  18. 18. No more upgrades!
  19. 19. No more upgrades!
  20. 20. Meter up, meter down...
  21. 21. No more server rooms...
  22. 22. No more server rooms...
  23. 23. Disaster Recovery
  24. 24. Business Continuity
  25. 25. Queensland, Australia - 2011/2012
  26. 26. We picked up our laptops on Friday afternoon and went out the door with them. Because we can work from anywhere we had not one hour of downtime & enjoyed working from the coffee shop & our lovely park across the road... We didn’t have to worry about ensuring everything had backed up correctly. We didn’t have to worry about disks to re-install software on computers. Other than where to see our clients we didn’t have to worry about anything at all. @growthwisehttp://www.growthwise.com.au/our-flooded-office-experience/
  27. 27. Christchurch, New Zealand - February 22, 2011
  28. 28. Our building was damaged… the 2 buildings next to us came down. Initially made sure everyone was OK & told them to take a day or 2 to make sure their families were OK. On Friday that week we met at my house for lunch & told war stories. On Monday everyone turned up at my house with whatever laptops they could find & started working, processing everyones January GST returns due that day. As long as we had an Internet connection we could carry on. @djcaSidekickhttp://www.stuff.co.nz/the-press/business/6333225/Accounting-firm-shifts-to-the-cloud
  29. 29. Reduced Cost
  30. 30. Capex → OpEx
  31. 31. Total cost of ownership The old way The cloud way BUSINESS SOFTWARE SELF MANAGED SERVERS Word, Excel Server hardware Exchange Networking infrastructure Sharepoint Server operating system, virus scanner, firewalls, etc ACCOUNTING SOFTWARE Server(s) support and updates Quickbooks, Sage PeachTree Software licenses Software maintenance PRACTICE SOFTWARE Upgrades & maintenance Thompson Reuters Storage/backups $10,000’s (up front) $100’s (per month) $$$ (ongoing)
  32. 32. Value
  33. 33. Times are tough Global Changing Organization economic strategies demands downturn • limited credit • budgets cut • do more with less & do it better • shrinking markets • projects stalled • find new markets • deficit spending • lost resources • innovate
  34. 34. Transform your business• Democratization of computing• Reduced time to value• Limitless scale• Forces agility• Gives you reach• Provides opportunities to re-invent with limited disruption The cloud dissolves time, space & geography
  35. 35. Fake SaaS vs Real SaaS
  36. 36. Multi-tenancy
  37. 37. Hosted Apps vs SaaS Hosted apps SaaSNew versions released yearly (if you’re lucky) & Xero does 10-12 release pa (versionless) may not be applied Bug fixes, updates, enhancements instantaneous Updates per customer, requires outage & for everyone Same crappy user experience UX designed for the web - rich, sleek and (designed for desktop) productive Internet experiences Can only handle small numbers of Designed to scale with your business concurrent users Less durable & limited by hardware Unlimited Support provided by hosted vendor Free, full, support provided by the vendor (who but not by software vendor controls everything) Backups running constantly Backups nightly (no data loss) Reduced cost structure High cost structure (economies of scale)
  38. 38. Caveat Emptor:if it’s not multi-tenant, it’s not SaaS
  39. 39. How do you measure up? Average hourly rate Write offs WIP/lock up days Revenue : Salary ratio Average fee per client Debtor days Net profit before tax %
  40. 40. How do you measure up? Average hourly rate Write offs WIP/lock up days Revenue : Salary ratio Average fee per client Debtor days Net profit before tax %
  41. 41. Efficient Real Time Integrated Connected SmartThe cloud opportunity
  42. 42. The cloud opportunity for accountantsOLD WAY Friction CLOUD WAY No FrictionAsk client for datafile Login to XeroRemind client to send the datafile Compile reportsCheck email & save datafile to hard drive Review data & make adjustmentsRemember client’s password & versionUpload to my copy of the softwareCompile reportsReview data & make adjustmentsSend file back to clientExplain & remind how to overwrite current file $$$ No cost!
  43. 43. Old way: customize reports for each client REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS Customize Customize Customize Customize Customize Customize REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS Customize Customize Customize Customize Customize Customize
  44. 44. Cloud way: customize for groups of clients REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS REPORTS Customize Customize Customize
  45. 45. The Single Ledger For the For theaccounting practice small business General ledger Shared Invoicing Debtors Financial statements data Creditors Management reports Expense claims Fixed assets Contacts
  46. 46. The SaaS accounting journey payment graph business network group buying smart invoicing EDI portal notifications bank feeds connected benchmarking API multi-user payments leads and anywhere opportunitiesonline anytime mobile
  47. 47. You can see your clients business in real time...
  48. 48. Get alerts when something is wrong...
  49. 49. Provide benchmarking across your client base...
  50. 50. Become the Virtual CFO
  51. 51. Your clients’ business in your pocket...
  52. 52. Anytime. Anywhere. Real time.
  53. 53. Demo
  54. 54. So how do you get started?
  55. 55. Get some advice• Classify your information assets• Determine your requirements & risks• Do some sums on your ROI • hardware/software savings • organizational efficiency • organization growth
  56. 56. Identify the low hanging fruit
  57. 57. Research the vendors
  58. 58. Research your vendors• Check their reputation - but remember size isn’t everything• Security • understand how secure your data has to be & how the vendor solves your security problems• Data protection • how do they protect your data? • what’s their backup strategy? • how can you get the data out? • who owns the data? (Note: YOU DO!)• Reliability/availability • what’s their service level agreement?
  59. 59. Try before you buy!
  60. 60. Beautiful accounting software
  61. 61. Questions?
  62. 62. Beautiful accounting software

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