The document provides an overview of cloud computing, explaining its definition, characteristics, deployment models, and service types. It highlights the economic benefits of cloud adoption, comparing traditional IT costs to potential savings from cloud solutions, and includes examples of cloud applications in various sectors. Additionally, it mentions LBI Software's offerings in cloud services, including hosting and backup solutions.

1. Overview of Cloud Computing & Potential Business Impact Gary Reuter LBi Software Northeast PeopleSoft & NY/NJ JD Edwards RUG Meeting

2. Agenda Introductions Describing Cloud Computing Advantages/Issues Cloud Appropriate Solutions Getting Started in the Cloud Q & A

3. LBi Software Over 20 years HCM Focus Experience with Packaged Software Solutions Active Participant in Quest & RUG Events Team culture – average tenure is 10 years Platform independent/process oriented Technology centric

4. Origin of the term Cloud Computing Origins are from the early days of the Internet where the network was portrayed as a cloud First cloud around networking (TCP/IP abstraction) Second cloud around documents (WWW data abstraction) The emerging cloud abstracts infrastructure complexities of servers, applications, data, and heterogeneous platforms

5. Cloud Computing

6. What is a Cloud Computing Cloud Computing Computing via the internet On-demand network access Shared pool of configurable resources

7. A Working Description of Cloud Computing Cloud computing - a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly deployed and/or released with minimal management effort or service provider interaction

8. 5 Essential Cloud Characteristics Broad network access On-demand Resource pooling Location independence “ Infinite” scale Measured service

9. 4 Cloud Deployment Models Private cloud Community cloud Hybrid cloud Public cloud

10. Public Cloud Sold to the public, infinite-scale infrastructure

11. 3 Cloud Service Types *To be considered “cloud” they must be deployed on top of cloud infrastructure that has the key characteristics

12. Storage Infrastructure Networking Virtual Machines Software Inside the Cloud Cloud Infastructure SaaS PaaS IaaS

13. Foundation Elements of Cloud Computing Virtualization Grid technology Service Oriented Architectures Distributed Computing Broadband Networks Browser as a platform Free and Open Source Software Autonomic Systems Web 2.0 Web application frameworks Service Level Agreements Other Technologies Primary Technologies

14. Driving Cloud Adoption

15. Cloud Economics

16. Traditional Data Center Costs Average 9000 square foot costs $21 million to build with $1 million in electricity costs/year 11.8 million servers; used at only 15% of capacity Typically consume up to 100 times more energy per square foot than a typical office building Data centers consume 1.5% of our Nation’s electricity (EPA)

17. Traditional Software Costs $800 billion dollars spent yearly on purchasing and maintaining enterprise software Expensive upgrade costs Expensive licensing costs Inflexibility 80% of enterprise software expenditure is on installation and maintenance

18. Cloud Economics Estimates vary widely on possible cost savings: “ If you move your data center to a cloud provider, it will cost a tenth of the cost.” – Brian Gammage, Gartner Fellow “ Use of cloud applications can reduce costs 50% to 90%” - CTO of Washington D.C. “ IT resource subscription pilot saw 28% cost savings” - Alchemy Plus (backing from Microsoft) Preferred Hotel Traditional: $210k server refresh and $10k/month Cloud: $10k implementation and $16k/month

19. Possible Effects of Cloud Computing Small enterprises use SaaS and public clouds minimize growth of data centers Large enterprises data centers evolve to act as private clouds use hybrid clouds to leverage both internal and public clouds Public clouds may adopt standards in order to run workloads from competing hybrid cloud infrastructures

20. Cloud Deployment Examples

21. Salesforce.com in Government New Jersey Transit Used it to build/run their call center, incident management, complaint tracking, and service portal 500% More inquiries handled 0 New agents required 36% Decrease in response time U.S. Army used CRM for new Recruiting system U.S. Army needed a tool to track potential new recruits who visited its Army Experience Center Used it to track all core recruitment functions and allows the Army to save time and resources

22. Cloud at LBi Software Customer Website Hosting Brochure/Bulletin board websites Application Hosting LBi offers SaaS services for our flagship products Backup Disaster Recovery at LBi data center Backup every hour from EC2 to S3 Real time data replication from EC2 to LBi

23. Cloud at LBi Software Load Testing We launched an extra large instance to host our CaseManager application We launched a medium size instance to host the load testing software The load testing software simulated various amounts of users and requests Other load testing services in the cloud

24. Amazon EC2

25. Amazon EC2

26. Thank You! For more information: www.LBiSoftware.com