Harbor Computer Services won the 2010 Small Business Specialist Partner of the Year award from Microsoft for their solution helping small businesses adopt cloud computing while avoiding risks. Their hybrid approach leaves critical systems on-site while subscribing to cloud-based software and services to maximize flexibility and mobility. This balances keeping enough IT costs as operating expenses for tax benefits without becoming too reliant on the cloud and risking cash flow issues. They demonstrated how this hybrid model helped customers meet business goals while preparing them for future computing changes.

1. Modern Architecture for Small Businesses in a Cloud Influenced World Harbor Computer Services Small Business Specialist of the Year Award Winning Solutions

2. “It is my great pleasure to inform you that from the nearly 3,000 partner entries submitted this year for the Worldwide Partner Conference (WPC) 2010 Awards program, your company's entry, Modern Architecture for Small Businesses in a Cloud Influenced World, was selected by Microsoft judges as the Winner, in the category, Small Business Specialist Partner of the Year. Your achievement represents the commitment to deliver products and services for outstanding adoption and application of innovation built on Microsoft technologies that positively changes and impacts our mutual customers’ business.” Allison L. Watson Microsoft Corporate Vice President | Worldwide Partner Group

3. Why we Won – Why it Works “As the Lead Judge, I can attest there were many outstanding submissions in our category but your entry, above all others, demonstrated a unique solution that not only helped the customer meet business goals, but set them on the path to computing in the future...” Andrea K. Russell Global Channel Development Manager Worldwide Partner Group Microsoft Corporation

4. Computing Changes Fast STAMFORD, Conn., July 26, 2005 — Small and midsized organizations (under $1 billion in revenue) are spending 53 percent to 60 percent of their total information technology (IT) budget on infrastructure, including data center, voice and data networks, desktop and help desk, according to Gartner Consulting's Worldwide IT Benchmark Service STAMFORD, Conn., January 13, 2010 —By 2012, 20 percent of businesses will own no IT assets. Several interrelated trends are driving the movement toward decreased IT hardware assets, such as virtualization, cloud-enabled services, and employees running personal desktops and notebook systems on corporate networks.

5. There’s more than 1 kind of Cloud

6. Risks and Rewards The Cloud moves IT from capital to operating expense Good: - capital outlay. + expense write-off Bad: When cash in king (as during a recession) you’ve got to keep it flowing into operations Your IT resources are shared with others Good: keeps cost down Bad: The actions of others can affect you Upgrades happen automatically Good: no increase in cost to move to the new version Bad: you don’t get to choose when

7. Maximizing the Reward(this is why we won) Premise: The cloud is a good thing. We need to avoid the pitfalls. Solution: Hybrid Leave on-site primary critical elements Subscribe to software to maximize flexibility Subscribe to cloud solutions to maximize mobility Move enough IT cost to operations to produce tax benefits but not so much that we risk the business in a cash shortage situation

8. An Example Leave on-site primary critical elements Custom SQL application, private user data storage reside locally on a server at the office. Subscribe to software to maximize flexibility Subscribe to MS Office to eliminate paying for software not used and to keep everyone on the same version. Subscribe to cloud solutions to maximize mobility Use Hosted Exchange and Sharepoint for email, web mail and common data storage access from anywhere on any device. Use off-site Internet backup storage to increase disaster recovery options.

9. Harbor Computer Services We are Professionals We are Responsible We are Concerned About The Success of Your Business http://www.harborcomputerservices.net amy@harborcomputerservices.net (248) 850-8616