The document provides an overview of cloud computing and outlines considerations for adopting cloud services. It defines cloud computing, discusses the various types of cloud services (IaaS, PaaS, SaaS), and explains how cloud computing provides benefits like reduced costs, flexibility and scalability compared to traditional IT infrastructure. The document also covers important factors for organizations to consider when developing a cloud strategy including security, developing business cases and experimenting with cloud services.

1. CIO’s Playbook to Cloud ComputingMarch 2010®Cloud Commerce Inc. - Proprietary & Confidential 5/10/20101Michael VienhageManaging PartnerGreg AltinFounder and Managing Partner

2. Introductions®Cloud Commerce Inc. - Proprietary & Confidential 5/10/20102Michael Vienhage - Managing PartnerPrior to joining Cloud Commerce, Michael worked at CSI Leasing, Inc. in sales and marketing as Vice President, Marketing. His primary focus was in business development and relationship management. He opened the Charlotte, NC office in 1990 helping CSI expand their operation to a new region of the country. Michael had responsibility for developing new relationships in the Mid Atlantic region.Greg Altin - Founder and Managing PartnerPrior to founding Cloud Commerce, Greg served in multiple roles at Brown Shoe Company (NYSE: BWS) including Vice President of Information Systems. In this position, he was responsible for managing a major portion of the application portfolios that supported corporate governance and administration systems, worldwide sourcing and product development, domestic wholesale, corporate EDI, customer support, and e-commerce business units, including Shoes.com (www.shoes.com).

3. AgendaIntroductionsGreenfieldsDefining Cloud ComputingTypes of Cloud Computing Co-Lo vs. Cloud ComputingThe True Value Proposition of the CloudAdoption Considerations5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 3

4. 5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 4I/T… it’s ComplicatedDatacenter/Computer RoomApplications/SoftwareYourBusinessSoftware Licenses

5. HVACServersCapEX

6. Raised FlooringInternetMaintenanceFirewallSquare Footage

7. UpgradesBackup DevicePower

8. Support SoftwareStorageNetworkContracts

9. Integration

10. Servers/Racks/Routers/Disc Space

11. Custom Code

12. Fire Suppression

13. Security System

14. Security Patches

15. Service Packs

16. Disaster Recovery5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 5CLOUD COMPUTINGGet out of the data center business.Eliminate the headaches of Licensing… start “Paying for Value”Elasticity and Flexibility.

17. AgendaIntroductionsGreenfieldsDefining Cloud ComputingTypes of Cloud Computing Co-Lo vs. Cloud ComputingThe True Value Proposition of the CloudAdoption Considerations5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 6

18. 5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 7What is Cloud Computing?What it is:“Cloud Computing”: What Exactly Is It Anyway? Wall Street Journal - 2/8/2010“Any service or program sent over an Internet connection can be considered a cloud service. An outside vendor runs the servers and software, so the buyer doesn’t have to worry about the technical issues in-house-and can focus on its own business.”An old idea that’s been around for 30 years

19. Key Enablers: Bandwidth Proliferation, Web 2.0, Security Technology Improvements and Large Scale Commodity Data Centers

20. Transformative computing model that will change the economics of the multi-billion dollar software industry.

21. Said bluntly… A New Utility: Computing Services5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 8What is Cloud Computing?Where did it come from?Diagrams from the Network GuysAugust 2006, where Eric Schmidt of Google described their approach to SaaS as “cloud computing” at a search engine conference.

22. January 2009, Greg Altin came up with the idea for Cloud Commercein his kitchen.IntroductionsGreenfieldsDefining Cloud ComputingTypes of Cloud Computing Co-Lo vs. Cloud ComputingThe True Value Proposition of the CloudAdoption Considerations5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 9Agenda

23. Types of Cloud Computing?InfrastructureBusiness in a Box

24. Industry FocusedBAASAppsBusinessStacksEst. Market Size by 2012Cloud Computing EcosystemSalesForce.com

25. NetSuite

26. Gmail/Google Apps

27. Hosted Exchange~$21BSAASPlatformMicrosoft Azure

28. SalesForceAppXChange

29. NetSuite SuiteCloud

30. FaceBookPAAS~$9BAmazon

31. RackSpace Cloud

32. HP/IBM/VerizonIAAS~$2BSources: AMR, Gartner, IDC

33. What is Cloud Computing?20092010201120122013Adoption TimelineBAASSAASPAASModel Saturation - Heavy- ModerateIAAS- LightSmallMediumEnterpriseCompany Size

34. IntroductionsGreenfieldsDefining Cloud ComputingTypes of Cloud ComputingCo-Lo vs. Cloud ComputingThe True Value Proposition of the CloudAdoption Considerations5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 12“A decision to go with a private cloud is a decision to run lower utilization levels, consume more power, be less efficient environmentally, and to run higher costs.”, -James Hamilton AmazonAgenda

35. Co-Lo vs. Cloud ComputingMulti-Focus SERVICESCo-Location or Private Clouds are not Cloud Computing. Here’s Why:Co-Lo is outsourcing your datacenter to 3rd party.

36. You still bear the burden of software licenses and maintenance.

37. Co-Lo must maintain staff/resources to provide Multi-Focus services (lower optimization)

38. Unable to Realize Cloud Scale(Economic & Capability)

39. CC=SINGLE FOCUS SERVICECLOUD COMPUTINGSingle Focus SERVICECo-Location/Managed Data Center

40. IntroductionsGreenfieldsDefining Cloud ComputingTypes of Cloud ComputingCo-Lo vs. Cloud ComputingThe True Value Proposition of the CloudAdoption Considerations5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 14“IT systems and applications support people account for 30% to 60% of total 5-year systems costs.““43% of Enterprise Adopters cite cost savings as the top reason moving to the cloud.”, -Yankee GroupAgenda

41. Key Benefits5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 15Built in Redundancy and FailoverNo Long Term CommitmentsUbiquitous AccessRapid ElasticityEase of DeploymentPay only for you useEliminate CapEXReallocate Labor PoolAccelerated time to benefits

42. Infrastructure®Cloud Commerce Inc. - Proprietary & Confidential 16Cloud EconomicsInfrastructureManagementManagementR&DR&DSupportSupportBuild EconomyCloudEconomyLong Run Avg Cost Aggregate Capacity-SCALE ECONOMICS-Shift fromDiseconomies of Scale to Economies of ScaleNeed maintain a staff to support a wide range of technologies (Low Optimization)

43. Service level cost cannot be spread optimally (User base is generally fixed but cost increase)

44. Systems are often underutilized due to peak load strategies and estimated growth

45. Higher Service Levels = Higher Costs

46. DISECONOMIES OF SCALE

47. Cost for High Service Levels are spread across large user bases.

48. Focus Drive Efficiencies (Optimizes resources on repeatable processes/function )

49. High Elasticity=No Excess Capacity Waste

50. Pay Only for What You Use

51. ECONOMIES OF SCALEIntroductionsGreenfieldsDefining Cloud ComputingTypes of Cloud ComputingCo-Lo vs. Cloud ComputingThe True Value Proposition of the CloudAdoption Considerations5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 17CLOUD COMPUTING is #1 in Gartner’s Top 10 Strategic Technology Areas for 2010:Cloud ComputingAdvanced AnalyticsClient Computing…Agenda

52. 6 Commandments of Cloud Computing Services5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 18Moving Your Organization to the CloudValue to Your CompanySingle Focus Service DeliveryMulti Tenant ArchitectureMulti Point/Redundant Data CentersSubscription Model (no-lock)Clear SLA (availability/performance) Appropriate Security and Privacy ControlsEnables Provider to Optimize Solution ( Cost)Leverage Repeatable Processes/Resources ( Cost)High AvailabilityBuilt-In Disaster RecoveryFlexible and Elastic Usage ModelInsuranceRisk Management

53. So What’s Cloudable?Hybrid Approach (Co-Lo + Cloud)

54. Co-Lo Infrastructure Strategic Systems

55. Cloud  Utility Core Business Operations*one size does not fit allGeneralRecommendation5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 19Tactical SystemsStrategicSystemsInfrastructureCore Business OperationsUtility SystemsManagement Support SystemsBusiness Differentiating SystemsMATUREHosted Email

56. Message Archiving

57. Fax Services

58. Collaboration (Sharepoint)

59. Document Management

60. Backup ServicesMATURINGDatabase

61. Storage

62. Virtual Server

63. Development Platform*Security, Integration and Governance are biggest challengeMATUREERP/Financials

64. CRM

65. Hosted VOiP

66. Marketing Solutions

67. eCommerceEMERGING…Business Intelligence and Analytics

68. I/T Portfolio Mgt.Moving Your Organization to the Cloud5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 20Align Cloud Solutions with your Business NeedsFocus on areas of your business where change can be justified Need to Reduce Cost?

69. Service Level Improvement?

70. Support Growth?

71. Need for Upgrade?

72. More Flexibility/Elasticity Needed?Moving Your Organization to the Cloud5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 21Align Cloud Solutions with your Business NeedsLearn From OthersLeverage lessons from Cloud Computing from:Partners

73. Internet (lot’s of info)

74. Seminars/Industry Groups

75. Your Peer NetworkMoving Your Organization to the Cloud5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 22Align Cloud Solutions with your Business NeedsLearn From OthersDevelop Justifiable Business CaseAssess the Risks and Rewards:Not everything should go to the cloud

76. Work to Quantify Real Costs (for both sides)…and be honest!

77. Use Hard and Soft Costs

78. Develop a 5-6 Year Comparative TCOMoving Your Organization to the Cloud5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 23Align Cloud Solutions with your Business NeedsLearn From OthersDevelop Justifiable Business CaseRemember the 6 Commandments of Cloud Services6 Commandments of Cloud ServicesSingle Focus Service DeliveryMulti Tenant ArchitectureMulti Point/Redundant Data CentersSubscription Model (no-lock)Clear SLA (availability/performance)Appropriate Security and Privacy Controls

79. Moving Your Organization to the Cloud5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 24Align Cloud Solutions with your Business NeedsLearn From OthersDevelop Justifiable Business CaseRemember the 6 Commandments of Cloud ServicesExperiment… it’s easy with the CloudBe Willing to go on a Test DriveExperiment with some of the services to learn.

80. Take advantage of Free Trials

81. Talk with a Cloud Consolidator5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 25CLOUD COMPUTINGEvolution or Revolution?Get out of the data center business.Eliminate the headaches of Licensing… start “Paying for Value”Elasticity and Flexibility.5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 25

82. Contact UsWeb: www.CloudCommerce.comPhone: 314.932.2200Email: info@cloudcommerce.com®Cloud Commerce Inc. - Proprietary & Confidential 5/10/201026About UsCloud Commerce helps organizations understand, and benefit from cloud computing. We focus exclusively on applications in the cloud. We show business how leveraging the cloud can save money, while providing a secure and reliable alternative to running on-premise solutions.

83. 5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 27

84. Stats5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 28

85. Cloud Strategy5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 29Cloud Strategy Framework

86. Available Services5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 30

87. Pros and Cons5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 313 Stages of ComputingTradition On-Premises ITRequires IT staff.Capital cost intensiveDifficult to upgrade and patch.Unpredictable costs.Difficult to maintain compliancy.Data center may not provide high availability (power, HVAC, etc)UsersYourBusinessInternetBusiness ApplicationsFirewallHigher level of internal control.Ability to customize services.Data is on-site. Can operate without Internet Backup DeviceE-MailStorageNetwork

88. 5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 323 Stages of ComputingManaged Data Center (Collocated)Requires IT staff.Capital cost intensiveDifficult to upgrade and patch.Unpredictable costs.High costs for managed services.Redundant cost if some systems are still on premises.Data center may not provide high availability (power, HVAC, etc)Pros and Cons3rd Party Managed Data CenterUsersYourBusinessBusiness ApplicationsStorageNetworkFirewallE-MailBackup DeviceHigher level of internal control.Ability to customize services.Leverages facilities of professionally managed data center.

89. 5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 333 Stages of ComputingRequires reliable internet connection.Distributed SecurityDistributed User ControlCloud ComputingEmployees Work Anywhere.Lower Capital Expenditures.Focus on business not technology.No Worry Upgrades.Enterprise Class Tools.Faster implementations.Lower upfront and ongoing costs. Pay only for services you need.Guaranteed service-level agreements (SLAs). PREDICTABLE SPENDINGHIGH AVAILABILITY, REDUNDANT DATA CENTERS (BUILT IN DISTASTER RECOVERY)Service ProviderPros and ConsUsersE-MailYourBusinessService ProviderStorageFirewallService ProviderTelephone PBXBusinessApplicationsSELECTIVLY MIGRATE APPLICATIONS TO THE CLOUD

90. Stats5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 34Research firm IDC projects overall spending on subscription based software to grow at a compounded rate of 18% to $19.8 billion by 2012.Yankee Group concludes that IT systems and applications support people account for 30% to 60% of total 5-year costs. [“TCO of On-Demand Applications Is Significantly Better for SMBs and Mid-Market Enterprises.” Yankee Group. June 1, 2005]“Spending on cloud computing will capture 25% of IT spending growth in 2012 and nearly a third of growth in 2013”, IDC predicts.

91. SecurityDisadvantages2 tier or flat architected networks are a riskyOnly expose front end user interfaceCredential management is fragmented and not centralized (yet).Control of Solutions are segmentedBenefits?1. Centralized Data2. Incident Response / Forensics3. Password assurance testing (aka cracking)4. Logging5. Improve the state of security software (performance)6. Secure builds7. Security Testing(CloudSecurity.org - Assessing the Security Benefits of Cloud Computing )5/10/2010®Cloud Commerce Inc. - Proprietary & Confidential 35