Bob Raffo gave a presentation at the ALTA 3rd Annual Conference in Long Beach, CA from February 28 to March 1, 2013. The presentation discussed trends in cloud computing and mobile technology and how these technologies allow businesses to operate globally in new ways. A case study was presented of an international shipping company that used cloud-based business process outsourcing to manage its global accounting functions virtually with few permanent employees located across several countries. The key takeaways were that cloud computing provides shared resources similar to shared office space, mobile and broadband growth enable new market opportunities, and the cloud allows very small businesses to engage in global operations.

1. HEAD FOR THE CLOUDS WITH YOUR FEET ON THE GROUND
ALTA 3rd ANNUAL CONFERNCE – Long Beach, CA – Feb 28 – Mar 1 2013
Bob Raffo, Principal, HartVidaRaffo

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Accounting
Strategy
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The Fred Syndrome

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A Model for Growth and Scale
HartVidaRaffo copyright 2013.

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Agenda
• A Cloud Computing Primer
• Trends in Mobile & Cloud
• Evolving Business
• Case Study: The Cloud at Work

7. WHAT IS THE CLOUD? A PRIMER.

8. Traditional Physical Server
ANATOMY OF A CLOUD SERVER
• Physical server is made of multiple • The server can be set up for multiple
hardware components integrated into a users and complex security to control
single device. access to resources.
• A single operating system is installed to • All software and applications must be
manage the hardware and software compatible with the operating system
installed. installed.

9. Virtual Server
ANATOMY OF A CLOUD SERVER
• Physical server is made of multiple • Multiple virtual servers can run on one
hardware components integrated into a physical server. Each can have a different
single device. operating system.
• Virtualization software such as VMWare • All software and applications must be
or MS HyperV is installed to create virtual compatible with the operating system
servers. installed on the virtual server.

10. Shared Virtual Server
SHARED VERSUS DEDICATED CLOUD SERVERS
• A single physical server has multiple instances
of virtual servers.
• All virtual servers share the resources of the
physical server.
• The server can be set up to prioritize resources
for one server versus another.
• Performance can be impacted when servers
compete for resources.
Dedicated Virtual Server
• A single physical server has multiple instances
of virtual servers.
• The virtualization software allocates and
dedicates specific resources to a virtual server.
• Resources can be adjusted or reallocated as
servers require more computing power.
• Performance is limited by the amount of
resources dedicated to a virtual server.

11. Public Cloud
PUBLIC VERSUS PRIVATE CLOUD SERVERS
• Virtual servers are accessible from the public
Internet.
• Security is typically limited to the access Public
security of the server. Internet
• Public cloud servers are typically stand alone
servers and are not part of a network of servers.
• Best suited for situations that do not require
advanced security or need to meet regulatory
compliance.
Private Cloud
• Virtual servers are not accessible from the
public Internet.
• Security is enforced with physical devices like Private
firewalls. Network
• Private cloud servers can be part of a private
network and combined with physical servers to
create a hybrid environment.
• Appropriate for secure corporate computing..

12. ABOUT CLOUD & MOBILE COMPUTING

14. • Mobile devices are outselling PCs and Laptops.
• 1/3 Population is online – 80% of top 30% of Income
• Personal broadband grew from 0 in 2005 to 500,000 in 2010
• 2015 is expected to reach 2,000,000 personal broadband connections
Source: BI Intelligence

15. • 78% of employees have a mobile device for work.
• 65% White-collar roles require mobility for work.
• 44% Knowledge workers telecommute at least one day per week.
• $2500 is the annual cost savings related to telecommuting one day per week.
• 75% of enterprises expect employee owned devices connecting to company
networks to increase significantly over next two years.
Source: Cisco IBSG

16. CLOUD STRATEGIES FOR 2013
Hybrid Cloud (IaaS)
Business Process as a Service
(BPaaS)
Private Cloud (IaaS) No Plans to adopt
Adopt in distant future
Public Cloud (IaaS) Adopted in near future
Already adopted
Platform as a Service
(PaaS)
Software as a Service
(SaaS)
0% 10% 20% 30% 40% 50% 60%
Source: Cisco IBSG
• Trident Capital sees its 2013 investment focused on opportunities that monetize the
internet especially through cloud delivery, mobile, social and big data analytics – with a
particular interest in security for cloud and mobile environments. (Trident Capital Blog 1/7/2013)
• Forbes sees 2013 as a breakout year for cloud computing – focusing on the need for
business leaders to understand how to manage cloud computing as a critical component
of their IT strategy. (Louis Columbus, Forbes, 12/18/2012)
• Security on mobile devices is a critical issue with significant security holes in devices
from all manufacturers including Google, Apple, RIM, and Microsoft. (Rob
Enderle, ITBusinessEdge, 1/3/2013)
• Forrester Research says that the primary concern facing mobile access to corporate
computing assets or a BYOD strategy is security and privacy.

17. WHY IS THE CLOUD IMPORTANT?

18. A BRIEF HISTORY OF MODERN COMPUTING
10’s
• Cloud Computing
00’s • Technology as a
• eCommerce Service
• Smart Phone • Big Data
90’s • Social Networking • Information
Security
• IP Networking
• Server Technology
• Internet Standards
• Relational
80’s Databases
• PC is born • GUI
• Productivity
Applications

19. COMMERCE MODELS
National Corporate Collaborative
Commerce Commerce Commerce
Treaties & Trade Supply Chain & Networking &
Agreements Sourcing Partners Relationships
GDP & Monetary Banking and
Access to Income
Policy Access to Capital
Social Benefits Product or Service Flexibility &
and Employment Innovation Adaptability
Regulations & Governance & Independence &
Taxes Compliance Self-Reliance

20. CASE STUDY : THE CLOUD IN ACTION

21. CASE STUDY

22. Background Solution
CASE STUDY
• International shipping container doing • Owners created a holding company in the
business in every major shipping port in the Bermuda with operating offices in:
world.. • Belgium
• Company owners are located in Europe. • Singapore
• Shanghai
• Back office operations were in Rio but were
not efficient or accurate. • Rio Brazil
• Santos Brazil
• HVR was asked to provide business process
outsourcing and manage the entire • A single member LLC was created in the US
accounting function. with the Bermuda corporation as the sole
member. HVR operates the US LLC from
New York.
• Bi-monthly we import all billing and
expense activity from a SaaS product
called World Link into the US LLC
accounting system. All payments are
remitted to the US office an we make the
deposits. All US vendor checks are cut from
the US office and we issue a 1099 to the
contractors.
• The company has virtually very few
permanent employees and operates
globally.

23. WRAP UP

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Takeaways
• Cloud computing is no different than
shared office space.
• Mobile computing and broadband
access will create opportunities in an
increasing number of new markets.
• Systemic unemployment is driving a
Collaborative Commerce model.
• Engaging in global business as a very
small or micro business is possible
because of cloud computing.

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Thank You - Questions
Bob Raffo
Principal, HartVidaRaffo
60 East 42nd Street, 46th Floor
New York, NY 10165
O - (212) 485 – 9828
D - (914) 617 – 7627
braffo@hvrpartners.com
Web site : http://www.hvrpartners.com
Facebook : http://www.facebook.com/hartvidaraffo