This document discusses leveraging cloud services for businesses. It outlines CornerStone's history of adopting cloud technologies since 2002. It then defines cloud computing and describes the three categories of cloud services: Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). The document presents case studies that demonstrate benefits companies have realized from using cloud services, such as increased availability, security, flexibility, and reduced costs. It argues that cloud computing can help businesses address challenges in these areas and position themselves to be more innovative and competitive.

1. Leveraging the Cloud
for Your Business

2. Discussion outline
§ CornerStone’s journey with the cloud
§ What is the cloud?
§ Categories of cloud services
§ Case studies reveal benefits of the cloud

3. Our history with cloud services
2002 Challenge: Launched with limited capital and limited resources
Solution: Use local ASPs for billing, provisioning, CRM
Result: Became a provider known for quality and value
2005 Challenge: Integrate sales and operations in 4 offices, support remotes
Solution: Rely on hosted desktop and leverage ASP
Result: Became SaaS agent
2006 Challenge: Shift from services to solutions
Solution: Buy softswitch (VoIP & hosted voice), acquire 40% SkySphere
Result: Began to see increase in average revenue per user

4. Our feet firmly planted…head in “the cloud”!
2009 Acquired Richmond Telephone/Richmond Networx
2011 Acquisitions establish CornerStone as cloud provider
§ Data Center Services
§ Cloud Computing
§ Hosted Voice Services
§ Network and operations presence in Manhattan

5. What is the Cloud?
?

6. Perilous endeavor?
damn-­‐cloud-­‐computers
copy

7. The Cloud is for Everyone
At work, at home, on the road!
Banking – at ATMs and online
Amazon – shopping
Social networking – communicating
Google – e-mail and document sharing
Apple – entertainment

8. Cloud Computing…
Hire a taxi or buy a car?
Taxi driver/company You’re the owner
• Drives the car • Insure the vehicle
• Fills the tank • Pay for upkeep
• Maintains the vehicle • Keep it secure
You pay a fixed ‘rate’ Upfront and ongoing cost
and taxi gets you there. gives you pros and cons
of owning the car.

9. Three categories of service
Application
(SaaS)
Platform
(PaaS)
Infrastructure
(IaaS)

10. Software as a Service
Application
(SaaS)
Caters to end-users
§ Customer uses services for business, shopping or recreation
§ Vendor manages all applications, data, operating
system (OS), servers, storage and entire computer
infrastructure

11. Platform as a Service
Platform
(PaaS)
Caters to developers
§ Customer brings their own application software and data
§ Vendor supports middleware, OS, servers, storage, and all hardware
§ Let’s user develop and host customized applications

12. Infrastructure as a Service
Infrastructure
(IaaS)
Caters to IT staff who want access to remote hardware
§ Customer manages application software, data, middleware and some OS
§ Cloud provider delivers virtual equipment including servers, storage
§ Customer has worry-free hardware, maintenance, environmental
conditions
§ Global growth from $3.7 billion to $10.5 billion by 2014

13. Benefits of cloud computing

14. Case Studies
CARDIOVASCULAR HOSPITAL Syracuse, NY NATIONAL BANK Headquarter in Massachusetts
Need: Scalable, high availability, compliant solution Need: Become compliant with Gramm-Leach Bliley Act
for 5 remote locations for financial privacy
Solution: 150 Virtual Xen Desktops Solution: Hosted Exchange with archiving and email
encryption
MUNICIPALITY Warren County
Need: Scalable solution for collaboration and AUTO DEALERSHIP Albany, NY
demand for growing email storage Need: Secure, off site backup for 1 Terabyte of data, and
Solution: 100 hosted Microsoft Exchange seats with growing
25GB mail boxes - sync to mobile phones included Solution: Online backup with data de-duplication for
fast , secure off site backup
MAJOR HOSPITAL Western Massachusetts
Need: Reduce $85,000 annual fee for encrypted
email to support 2500 users.
Solution: Hosted service on gold standard platform
for $35,000

15. What can it do for you?

16. What Problems Can Cloud Computing
Help Solve?
§ Availability
§ Security
§ Flexibility
§ Reduced costs

17. Availability, Reliability and
Disaster Recovery
§ Constant access to business applications
§ Leverage your cloud provider’s disaster recovery plan
§ Alternative to customer-owned, redundant platforms

18. Security
Challenges
§ Increasingly complex
§ Increase in hacker activity and available malware
§ Fines for non-compliance with HIPAA and other regulations
Cloud solution
§ Standards compliance / SaaS 70
§ Proven results for Fortune 1000 and U.S. Armed Forces

19. Flexibility
Challenges
§ Increasing number of work-from-home
employees
§ Need to collaborate, share files, and communicate with ease
Cloud Solution
§ Portability
§ Hosted e-mail, desktop files, and hosted phone service
that are affordable and secure

20. Reduced costs
Gartner’s 2011 CIO Agenda survey: reducing cost as a
top priority
U.S. Government’s CIO shows savings as agencies move to the cloud
§ GSA: move 17,000 users to hosted e-mail saves $15 million
§ Dept. of Agriculture: move 120,000 users to hosted e-mail saves
$27 million
§ D.O.D: $54,000 up front for cloud avoids $1 million in legacy upgrade
§ Department of Health and Human Services implements electronic health
records using cloud service. Reduces time to market from over 1 year to
only 3 mos., supporting over 100,000 primary care practitioners.

21. Position yourself to compete
Lower IT barriers
Immediate to innovation
access to hardware
resources Creation of
Faster time Support
new value interoperability
No upfront to market
capital drivers between legacy /
new platforms
Pay-per-use
Lower Seamlessly
billing Easier to
upfront IT scale services in
scale-out correlation
Scalability & costs with client demand
Affordability

22. Consider your strategy

23. Thank you for your time!
Dan Yamin
dyamin@cstel.com