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May 17th 2014
Outsourcing Your SharePoint Hosting
The Cloud’s Fine Print Magnified
Simon Langlois | SharePoint Product Manager
Simon Langlois
• SharePoint Product Manager
• Quebec
• Canada
• Master in MKT Science
• 5 years at IBM Canada
• 3 years at SherWeb
• SP Summit 2014 Speaker
– (Montreal & Toronto)
• SP Saturday 2014 Speaker
– ( Montreal & Chicago)
Contact
• @simonlanglois
• slanglois@sherweb.com
blog.sherweb.com
• linkedin.com/in/silanglois
Agenda
• Cloud Opportunities and Concerns
• Cloud Hosting Models
• Cloud Services
• Licenses options
…about SharePoint!
Opportunities and issues
Cloud Opportunities
• Fast-track and simplify upgrade/deployment
• Move from Capex to Opex
• On-demand expertise
• Business continuity
• Increased availability
• Scalability
• Mobility
Cloud Concerns
Some Numbers…
Source: Osterman Research Inc 2012 and 2013
Some Numbers…
• In 10 years…
Hosting Models
Definitions
• Private Cloud
• …is a form of cloud computing that is used by only one organization,
or that ensures that an organization is completely isolated from others.
• Public Cloud
• …is a style of computing where scalable and elastic IT-enabled
capabilities are provided as a service to external customers using
Internet technologies.
• Hybrid Cloud
• …refers to policy-based and coordinated service provisioning, use and
management across a mixture of internal and external cloud services.
Definitions
• SaaS
• Software-as-a-service (SaaS) deliver a complete application over the
internet owned by the service provider to centralise ressources and
data.
• PaaS
• Platform-as-a-service (PaaS) deliver cloud-based development
environment with everything required to support the complete lifecycle
of building and delivering web-based (cloud) applications.
• IaaS
• Infrastructure-as-a-service (IaaS) deliver computing ressources
including servers, networking, storage with virtualisation technologies.
Decision Levels
Administration model
Managed Unmanaged
Hosting models
IaaS PaaS SaaS Hybrid
SharePoint feature sets
Foundation Standard Enterprise O365 Plans More…
Business needs/Objectives
Intranet Collaboration Documentation …
Integration with LOB
Custom Development
3rd Party Tools
NO YES
OOTB Features
Dedicated
SharePoint
Instance
SaaS
Specific data
constraints
to respect
YES
Internal IT
Infrastructure
Internal
IT Staff
Local IaaSPaaS
YES NO Internal
IT Staff
YES
YES
NO
NO
Challenges: Cloud or Not to Cloud?
Transportation Analogy
Buying a car
=
On-premise
Renting a car
=
Private Cloud
Taking the train
=
Multi-tenant
Cloud
Replication Strategy
High-level hybrid strategies Pros Cons
Completely isolated farms • Low complexity
• Low cost
• Fast deployment
• No integration
• Reduced usability for hybrid
end-users (ex: 2 credentials)
Replication of user profiles • Easy to use for end-user
• Moderate complexity
• Fast deployment
• No real added value
• Necessary evil
Replication of SharePoint
Services
• Leverage past and future
investments in Search,
Metadata, BI, Workflows and
more services on both farms
• Requires domain federation,
configurations and in most
cases, expensive 3rd party tools
(ex: AvePoint Replicator)
Replication Strategy
Cloud Services Oversell
Under
deliver
Unsatis-
faction
What is the SLA?
• Service Level Agreement on various parameters:
What is the SLA?
• Start with what is important to you
• Set min and max acceptable requirements and objectives
• Try to assign a dollar ($) value to it
SLA parameters Measures to look for
System availability % of uptime during a given period
Data security SOC 2 Type II report
Tier 3+ datacenters
Functional capabilities Complete list of available features
Complete list of supported and included services
Regulatory compliance Encryption bits, HIPAA, PCI
Response time Time before ticket taken
Average ticket close time
Other performance levels Customer Satisfaction: Net Promoter Score
RPO and RTO
How Can I Evaluate Data Security?
Data Center Primary Site Attributes
Tier Requirements TIER I TIER II TIER III TIER IV
Number of power
delivery paths
Only 1 Only 1
1 Active
1 Passive
2 Active
Redundant components N N+1 N+1
2 (N+1) or
S+S
Compartmentalization No No No Yes
Concurrently
maintainable
No No Yes Yes
Fault tolerance to worst event None None None Yes
Other attributes
Power
distribution,
cooling
Raised floor, UPS,
generator
Raised floor, UPS,
generator
Raised floor, UPS,
generator
How Can I Evaluate Data Security?
• Certification SOC II Type 2
– Security
– Accessibility
– Process Integrity
– Confidentiality
– Privacy For more
information,
download this
detail document
from KPMG.
How Can I Evaluate a NPS?
• Net Promoter Score (NPS)
– It’s the most widely used KPI to measure customer support
satisfaction amongst cloud and hosting services providers
– It’s measured with one simple question after each ticket resolution
– How likely are you to recommend COMPANY X to a colleague or a
friend?
• <20 = HORRIBLE
• 20< X <40 = BAD
• 40< X <60 = GOOD
• >60 = EXCELLENT
Business Continuity
• RPO et RTO
• What are your required standards?
• Establish the value for YOUR company in at least 2 scenarios before
requesting prices
Weekly Backup
OK OK OK
IT Pro
Restaure
RPO
(Recovery Point Objective)
RTO
(Recovery Time
Objective)
Weekly Backup Weekly Backup
Licenses
Licensing Options
• On-premises
– Open License, Open Value and Open Value Subscription
• Small to midsize organization: 5-250 employees
• Corporate, academic, charitable, or government organization
– Enterprise Agreement, Enterprise Agreement Subscription
• 250+ emp.
• Hosted SharePoint
– Service Provider License Agreement (SPLA)
• SharePoint Online
– Microsoft terms for cloud subscription P1, P2, E1, E2, E3, E4…
License Mobility Program (LM)
• Some important details
– You must acquire and maintain Server and Client Access
Licenses (CALs)
– You must acquire and maintain Software Assurance (SA)
– If you don’t have SA, you need dedicated hardware hosting
services
– Same CALs can be used with other environments with same
users, but server licenses are TRANSFERRED so can’t be
reused
– You CAN’T mix LM and SPLA licenses for the same software
Licensing Net Present Value 3 years
License program Scenario 1 Scenario 2 Scenario 3
SharePoint Servers 1 3 4
Standard users 250 500 0
Enterprise users 0 1000 2500
Interest 2% 2% 2%
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
NPV 1 NPV 2 NPV 3
NetPresentValue
SharePoint License Cost Analysis
Open Licenses + SA
Open Value 3yr
Spread (per year)
Open Value 3yr Up-
front
SPLA
SharePoint Online
Licensing Net Present Value 5 years
License program Scenario 1 Scenario 2 Scenario 3
SharePoint Servers 1 3 4
Standard users 250 500 0
Enterprise users 0 1000 2500
Interest 2% 2% 2%
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
NPV 1 NPV 2 NPV 3
NetPresentValue
SharePoint Licenses Cost Analyses
Open Licenses + SA
Open Value 3yr
Spread (per year)
Open Value 3yr Up-
front
SPLA
SharePoint Online
Conclusion
1. Know why you are going and what could stop you
from going to the cloud
2. Understand and decide the from the different hosting
models
3. Make sure you choose a partner that fit your actual
and future services and guaranties
4. Take time to do TCO including labor and licenses
Questions?
Thank you!
… and please fill out the survey to note
this session.

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Outsourcing Your SharePoint Hosting - the clouds fine print magnified

  • 1. May 17th 2014 Outsourcing Your SharePoint Hosting The Cloud’s Fine Print Magnified Simon Langlois | SharePoint Product Manager
  • 2. Simon Langlois • SharePoint Product Manager • Quebec • Canada • Master in MKT Science • 5 years at IBM Canada • 3 years at SherWeb • SP Summit 2014 Speaker – (Montreal & Toronto) • SP Saturday 2014 Speaker – ( Montreal & Chicago) Contact • @simonlanglois • slanglois@sherweb.com blog.sherweb.com • linkedin.com/in/silanglois
  • 3. Agenda • Cloud Opportunities and Concerns • Cloud Hosting Models • Cloud Services • Licenses options …about SharePoint!
  • 5. Cloud Opportunities • Fast-track and simplify upgrade/deployment • Move from Capex to Opex • On-demand expertise • Business continuity • Increased availability • Scalability • Mobility
  • 7. Some Numbers… Source: Osterman Research Inc 2012 and 2013
  • 10. Definitions • Private Cloud • …is a form of cloud computing that is used by only one organization, or that ensures that an organization is completely isolated from others. • Public Cloud • …is a style of computing where scalable and elastic IT-enabled capabilities are provided as a service to external customers using Internet technologies. • Hybrid Cloud • …refers to policy-based and coordinated service provisioning, use and management across a mixture of internal and external cloud services.
  • 11. Definitions • SaaS • Software-as-a-service (SaaS) deliver a complete application over the internet owned by the service provider to centralise ressources and data. • PaaS • Platform-as-a-service (PaaS) deliver cloud-based development environment with everything required to support the complete lifecycle of building and delivering web-based (cloud) applications. • IaaS • Infrastructure-as-a-service (IaaS) deliver computing ressources including servers, networking, storage with virtualisation technologies.
  • 12. Decision Levels Administration model Managed Unmanaged Hosting models IaaS PaaS SaaS Hybrid SharePoint feature sets Foundation Standard Enterprise O365 Plans More… Business needs/Objectives Intranet Collaboration Documentation …
  • 13. Integration with LOB Custom Development 3rd Party Tools NO YES OOTB Features Dedicated SharePoint Instance SaaS Specific data constraints to respect YES Internal IT Infrastructure Internal IT Staff Local IaaSPaaS YES NO Internal IT Staff YES YES NO NO
  • 14. Challenges: Cloud or Not to Cloud?
  • 15. Transportation Analogy Buying a car = On-premise Renting a car = Private Cloud Taking the train = Multi-tenant Cloud
  • 16. Replication Strategy High-level hybrid strategies Pros Cons Completely isolated farms • Low complexity • Low cost • Fast deployment • No integration • Reduced usability for hybrid end-users (ex: 2 credentials) Replication of user profiles • Easy to use for end-user • Moderate complexity • Fast deployment • No real added value • Necessary evil Replication of SharePoint Services • Leverage past and future investments in Search, Metadata, BI, Workflows and more services on both farms • Requires domain federation, configurations and in most cases, expensive 3rd party tools (ex: AvePoint Replicator)
  • 19. What is the SLA? • Service Level Agreement on various parameters:
  • 20. What is the SLA? • Start with what is important to you • Set min and max acceptable requirements and objectives • Try to assign a dollar ($) value to it SLA parameters Measures to look for System availability % of uptime during a given period Data security SOC 2 Type II report Tier 3+ datacenters Functional capabilities Complete list of available features Complete list of supported and included services Regulatory compliance Encryption bits, HIPAA, PCI Response time Time before ticket taken Average ticket close time Other performance levels Customer Satisfaction: Net Promoter Score RPO and RTO
  • 21. How Can I Evaluate Data Security? Data Center Primary Site Attributes Tier Requirements TIER I TIER II TIER III TIER IV Number of power delivery paths Only 1 Only 1 1 Active 1 Passive 2 Active Redundant components N N+1 N+1 2 (N+1) or S+S Compartmentalization No No No Yes Concurrently maintainable No No Yes Yes Fault tolerance to worst event None None None Yes Other attributes Power distribution, cooling Raised floor, UPS, generator Raised floor, UPS, generator Raised floor, UPS, generator
  • 22. How Can I Evaluate Data Security? • Certification SOC II Type 2 – Security – Accessibility – Process Integrity – Confidentiality – Privacy For more information, download this detail document from KPMG.
  • 23. How Can I Evaluate a NPS? • Net Promoter Score (NPS) – It’s the most widely used KPI to measure customer support satisfaction amongst cloud and hosting services providers – It’s measured with one simple question after each ticket resolution – How likely are you to recommend COMPANY X to a colleague or a friend? • <20 = HORRIBLE • 20< X <40 = BAD • 40< X <60 = GOOD • >60 = EXCELLENT
  • 24. Business Continuity • RPO et RTO • What are your required standards? • Establish the value for YOUR company in at least 2 scenarios before requesting prices Weekly Backup OK OK OK IT Pro Restaure RPO (Recovery Point Objective) RTO (Recovery Time Objective) Weekly Backup Weekly Backup
  • 26. Licensing Options • On-premises – Open License, Open Value and Open Value Subscription • Small to midsize organization: 5-250 employees • Corporate, academic, charitable, or government organization – Enterprise Agreement, Enterprise Agreement Subscription • 250+ emp. • Hosted SharePoint – Service Provider License Agreement (SPLA) • SharePoint Online – Microsoft terms for cloud subscription P1, P2, E1, E2, E3, E4…
  • 27. License Mobility Program (LM) • Some important details – You must acquire and maintain Server and Client Access Licenses (CALs) – You must acquire and maintain Software Assurance (SA) – If you don’t have SA, you need dedicated hardware hosting services – Same CALs can be used with other environments with same users, but server licenses are TRANSFERRED so can’t be reused – You CAN’T mix LM and SPLA licenses for the same software
  • 28. Licensing Net Present Value 3 years License program Scenario 1 Scenario 2 Scenario 3 SharePoint Servers 1 3 4 Standard users 250 500 0 Enterprise users 0 1000 2500 Interest 2% 2% 2% $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 NPV 1 NPV 2 NPV 3 NetPresentValue SharePoint License Cost Analysis Open Licenses + SA Open Value 3yr Spread (per year) Open Value 3yr Up- front SPLA SharePoint Online
  • 29. Licensing Net Present Value 5 years License program Scenario 1 Scenario 2 Scenario 3 SharePoint Servers 1 3 4 Standard users 250 500 0 Enterprise users 0 1000 2500 Interest 2% 2% 2% $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 NPV 1 NPV 2 NPV 3 NetPresentValue SharePoint Licenses Cost Analyses Open Licenses + SA Open Value 3yr Spread (per year) Open Value 3yr Up- front SPLA SharePoint Online
  • 30. Conclusion 1. Know why you are going and what could stop you from going to the cloud 2. Understand and decide the from the different hosting models 3. Make sure you choose a partner that fit your actual and future services and guaranties 4. Take time to do TCO including labor and licenses
  • 32. Thank you! … and please fill out the survey to note this session.

Editor's Notes

  1. Start: 0:00Duration:1:00 Hello everyone, and welcome to my session called outsourcing your SharePoint Hosting: the cloud print magnified which will cover one of today’s most trending topic in IT industry.I hope you have a great experience so far at the SP24 Conference. I am really excited to be part of this huge worldwide collaborative experience.And more specifically that you connected to my session Of course, it’s a really generalized topic in the IT sector but I will focus exclusively on the SharePoint and pinpoint some of the key parameters to consider and evaluate when building your cloud strategy.
  2. Start: 1:00Duration:1:45 First, let me introduce myselfMy name is SimonI live in Sherbrooke, Canada and I work for SherWeb.SherWeb a world renown cloud services provider We started back in the 90’s as a web hoster, But rapidly got into the business application hosting with a big focus Microsoft productivity suiteAnd finally got awarded Microsoft worldwide partner of the year at the last summer WPC So we are highly qualified and experienced with Exchange, SharePoint, Lync, hyper-v hosting challenges.More personally, I hold a Master degree in Marketing Science, so my background is more business than IT, But as you can see, I have been evolving in the IT space for more than 8 yearsAnd I can tell you without a doubt that understanding how market trends like cloud, social, mobile and big data are influencing organisational changes in todays companies is as important as understanding the technology itself for those who seeks to build effective IT strategies and make the right decisions when it comes to cloud opportunities.I am interested in everything that touches both SharePoint and the cloud looking for the next big innovation to build the product roadmap, or just to know what people do to generate valueSo don’t hesitate to add me on twitter or LinkedIn and reach out to me for a chat after the session.Now that we are done with the introductions, let’s jump right into it
  3. Start: 2:45Duration:1:30 So in todays session, I will start by introducing the subject with some revealing numbers about SharePoint actual deployments and future cloud strategies.We will then explore all possible hosting scenarios available to an organisation planning an upgrade or a migration and provide a simple and high-level decision framework for choosing the right model. I also cover the impacts of each choice on various critical topic like infrastructure, human resources, development, upgrades, compliance and more.We will continue by looking at services surrounding the cloud offering these days because we will see that these services might be as important as the hosting itself for some organisation. So amounts other things we will expose the different component of an SLA and highlight some key concept you might want to read before making a move. And finally, I well explain the various licensing options you have when moving to the cloud for SharePoint. For this, I included a revealing cost analysis for 3 scenarios with different licensing models.
  4. Start: 2:45Duration: 0:15 So let’s start with the opportunities and concerns raised by outsourcing SharePoint hosting to the cloud. Put simply, these are the arguments to the question: to cloud or not to cloud?
  5. Start: 3:00Duration: 3:45If you are interested in the cloud, you must be looking to improve at least one of the following elements of your IT department.So first, fastraking and simplifying your SharePoint related projects. Is it me or is in today’s reality, every project is starting with 3 to 6 months delays already. It seems like everyone wants everything for yesterday. You probably want to go faster. Which ever solution you are choosing, there is a good chance that your cloud service provider have more experience with SharePoint upgrades and migrations than you own team, so it will undoubtedly accelerate the process.You might also want to reduce your capital expenditure and trade it for a operational expenditure model, to control cost. Cause we all know how large IT project can get out of control with cost overrun. There is also the finance concept of capital fast depreciation, and this trend is even more dominant in the IT sector because it has the biggest depreciation rate than any other sector.With an aging population and the fast technology evolution, finding and retaining SharePoint expertise is certainly one of todays IT department biggest challenge for maintaining a SharePoint environments.Organizations with sensitive data might be looking for of site backup or replication to ensure business continuity in case of a disaster.Except for very large firms, hosting SharePoint in the cloud will most probably increase its availability simply due to the top-of-the line infrastructure most providers is able to deploy with large scale economies. But we will see further in this presentation that availability is also a results of expertise and specifically when it comes to SharePoint.Scalability is also a great yet very general value of the cloud, almost a given nowadays. Anyone can see this value of the cloud as opposed to an on-premises deployment where you need to plan a lot more for hardware consideration. I think it has an even bigger value when looking specifically at SharePoint. SharePoint projects are always in separate phases. Some want to start with few users and onboard employees. Others want to start with everyone but have a plan to add use cases over several months and years. For instance, make an intranet with collaborative site in the first 6 month, document management in a year and extranet year two. And finally, we all know that mobility of the work force is a big issue that organisations need to address right now. We might ask how would the cloud address that. Well, simply by allowing you to have an internet facing intranet or extranet. So with a tablet or mobile, there connectivity experience at home or on the road is a lot more enhance than with the VPN connection required to connect to you local network. So again really high level opportunities, but a good summary that will hopefully help you sell the idea to the upper management.
  6. Start: 6:45Duration: 0:00So now lets look at the concerns or challenges that cloud consideration brought up. I decided to show you this graph from the 2012 Global KPMG survey because except the fact comfortincreased a littlesincethen, the priorityconcerns haventreallychanged.The first one is related to the lost of control. Related to ownership of the data. What will be my exit strategy. Will the provider have to right to sniff my data for information about my company? These are all valuable questions. But I also think that first element is tightly related to the second one, which refer the integration concept.Business are concern about the integration possibilities of a 3rd party managed platform 3rd most important challenge, is about the data loss and privacy risks. Not a surprise when we think about all the recent news or should I say scandal related to gouvernament agencies spying on there citizens. We can observe that these top 3 are significantly more important from the others but before moving on, I would like to direct your attention to the 4th one which put some lights on an important subject that is affecting cloud providers reputation and I will try to give you good tips on how to evaluate that later on in this presentation.
  7. Here are some interesting numbers comparing actual and future intention in regards to SharePoint deployment strategies. Both studies where conducted by Osman reaseach with one year interval. On the left are the results of 2012 survey and on the right are the 2013 survey result. First, most dominant observation is the rapid reduction of on-premises deployment. Respondant Average of 1000 employee, in SharePoint Conference in lasvegas March, a lot of pool on this subject was conducting in session and I can tell you that in large organisation on-premises is more than 56%.My second observation would be the difference between the high 18% intention to move to a public cloud, and the 2013 low 12% result after a year as opposed to the difference between the low 14% intention to move to the private cloud and the 2013 36% result of privte cloud deployment.I explain this as the level of complexity and customisation SharePoint project require. Most organisation, before doing any deep analysis wants to move to a shared platform like Office365, but when confronted to le limitation decide to deploy in a private cloud environment. We will dig deeper into these considerations later on.Finally, you most probably realised that the Hybrid option has been removed from the options in the 2013 survey. It must after the differences, but it was a redundant option so it needed to be removed.
  8. I also wanted to show you these results you probably already saw on the SharePoint Community web site that I found interesting. It support the idea we just talked about when you see that the vast majority, 67%, think that even in 10 years there will still be at least 25% of deployment on-premises. But I wouldn’t have ask the question like this because I am amongst the one who thinks most SharePoint deployment will be in the cloud, but I think there will be a fair split between dedicated deployment in Infrastructure services like azure, amazon web services and other providers like SherWeb, platform as a service, where you have a managed but dedicated SharePoint instance and software as a service like Office365.