The document discusses cloud computing and Microsoft's cloud offerings for its Dynamics products. It defines cloud computing as purchasing computing resources over the internet as a utility. Microsoft offers Dynamics CRM and upcoming ERP products in the cloud through software as a service and platform as a service models. The document uses a case study of MedRecruit, a recruiting company, to illustrate how companies can transition services and applications to the public, private, and on-premise clouds over time. MedRecruit has moved email and office applications to Office 365 and plans to transition its portal and eventually CRM to the cloud.

1. Dynamics in the cloud
Steven Foster and Simon Bright
22 September 2011

2. Dynamics in the Cloud
What We’ll Discuss
 What is ‘The Cloud’
 Generally
 The Microsoft Cloud Platform
 Cloud Benefits
 Promised
 Realized
 The Dynamics Cloud Offerings
 Real World Example: MedRecruit

3. Dynamics in the Cloud
“Cloud Computing is a model for the procurement
of computing resources whereby they are
purchased as a utility and consumed over the
Internet.”

4. Dynamics in the Cloud
Software as a Service Platform as a Service

5. Dynamics in the Cloud
Cloud Value Proposition
The Why…

6. Dynamics in the Cloud
New Economics Reduced Management Increased Agility
• Pay for what you use • No maintenance • Latest software for users
• Predictable costs • Faster deployment • Internet collaboration
• Shift from capital expenses • Instant upgrades • Anywhere access
to operating expenses • Multilayered security • Instant self-provisioning
• Economies/Qualities of framework and backup
Scale

7. Dynamics in the Cloud
What is driving investment decisions?

8. Dynamics in the Cloud
Dynamics CRM Online
 1st Class Cloud Support
 Underlying architecture is multi-tenanted
 CRM 2011 is 2nd iteration of Cloud offering
 True Software as a Service
 Near 100% parity between Cloud and On-Premise
 Commitment to release to Cloud first
 New features will land in CRM Online immediately
 Very fast setup
 Up and running in 15 minutes

9. Dynamics in the Cloud
Typical Microsoft Dynamics CRM 50 user deploymentDynamics
General costs On-premise cost
Microsoft
Savings
CRM Online cost
=
Infrastructure , Hardware
$85,000 Included
OS’s & maintenance
CRM Software/ SaaS Fees $78,000 $94,000
Operations (1 day / month) $45,000 $45,000
Total $208,000 $139,000 $69,000
Per user per month $115/user/month $77/user/month $38/user/month
Back of the Envelope.
Incl. External connector, 3 servers.
Cost of capital: 12%

10. Dynamics in the Cloud
Dynamics ERP Online
 Commitment to ship all 4 ERP’s as Online Offerings
 NAV ‘7’ will be first – sometime in 2012
 AX, GP, SL will follow with their next versions
 Caveats
 We don’t know exactly what it will look like yet
 Don’t know how Azure COGs will affect pricing
 Right Now
 SPLA Hosted NAV in Intergen virtualized datacentre
 App-V can deliver additional benefits

11. Dynamics in the Cloud
What Does it Mean for Dynamics Customers
 Office 365 is an easy first step for existing customers
 Light up SharePoint and Lync integration quickly/cheaply
 Dynamics CRM Online default choice for new deployments
 Cost saving are real and significant
 Windows Azure ideal for Customer Portals
 Cheap, reliable and scalable
 ‘All in the Cloud’ possible for new businesses
 Office 365 + CRM Online + Windows Azure
 ERP Products still >9 months out for cloud support
 Don’t delay ERP investment in anticipation
 Focus on web services based integration

12. Dynamics in the Cloud
About MedRecruit
 Key details
 Founded 2006
 Started on CRM 3 + Small Business Server 2003
 Grow at 100+% per year
2nd Deloitte Fast 50 in 2009
 Originally all on premise; now hybrid on premise + cloud
 Key focus now is driving operational efficiency
 HQ is Queenstown
Australian office is Coolangatta

13. Dynamics in the Cloud
MedRecruit Portal

14. Dynamics in the Cloud
Year 1
Public Cloud Private Cloud On Premise
Website
Core Apps
CRM
ERP

15. Dynamics in the Cloud
Stage 1 – Moving Office Apps to the Cloud
 Email is mission critical
 But do not care where the Email Server is
 Perfect world need access anywhere including office
apps
 Office 365 obvious choice and relatively simple
transition
 Looking at how Lync and SharePoint can be leveraged
in the organisation

16. Dynamics in the Cloud
Stage 2 – Transitioning from Xero to NAV
 Been on Xero since day 1
 Xero delivers all those promised benefits
of Cloud
 But Xero runs out of Ooomph as business
becomes complex
 Integration with CRM
 Large invoice volumes
 Buyer generated invoices
 Moving to NAV; Hosted by Intergen

17. Dynamics in the Cloud
Current State
Public Cloud Private Cloud On Premise
Website
Core Apps
CRM
ERP

18. Dynamics in the Cloud
Stage 3 – Mission Critical Apps
 Current State
 CRM is Core LoB System
 Users since version 3, upgrade to version 4
 Extensively customized
 Customer self service portal
 Would like to move to Cloud
 Not for cost reasons
 Reliability focus
 But Hard to get there
 3 versions of customizations
 A big functionality work stream
 Will move portal first
 Prepare CRM over time

19. Dynamics in the Cloud
Future 12 months out
Public Cloud Private Cloud On Premise
Website
Core Apps
CRM
ERP

20. Dynamics in the Cloud
Sumary: What does the coming year hold?
 Continued high uptake rates for Dynamics CRM 2011
 Dynamics AX 2012 release will drive tier 1 compete
 Clients will continue to evaluate the benefit of the cloud –
most will take a baby step some will step right in
 Dynamics NAV ‘7’ will aid companies wanting to drive a full
cloud solution
 Office365 will guide clients towards the cloud

21. Questions

22. Thank you