2014 cloud trends every cfo needs to know

NORTHEAST ENERGY EFFICIENCY PARTNERSHIPS

2014 CLOUD TRENDSEVERY CFO NEEDS TO KNOW

Presented By

• Calvin Wilder, CEO, SmartBooks– Calvin co-founded and served as CFO of Thrive Networks, a

provider of outsourced IT departments to small and midsize

businesses which was acquired by Staples. At Thrive, Cal

participated in the early innings of the migration of IT from

local offices to datacenters and to initial cloud services.

Currently at SmartBooks, Cal makes extensive use of cloud-

based accounting applications.

• Kirill Bensonoff, Partner,

ComputerSupport.com– Kirill is the founding partner at ComputerSupport.com. He is

responsible for delivering technology solutions, driving

customer satisfaction, maintaining the culture of innovation

as well as overseeing the strategic direction of the

company and building business relationships. Kirill lead

teams on multiple cloud migrations and consulted clients

on various cloud best practices issues.

What kind of clouds are there?

• Infrastructure As a Service (IaaS)

• Platform As a Service (PaaS)

• Software As A Service (SaaS)

Cloud Marketplace Valuation

• IaaS Is The Leader In Growth

– Grew 45% from 2012 to 2013

– Currently a $15b business

– Grow to over $31b by 2015

• PaaS Is The Smallest Cloud Segment

– Just over $1b in 2013

– Some think it can overtake IaaS in the coming years

• SaaS Is Used By Over Half Of Organizations

– 63% of companies used SaaS in 2013

– In 2012, SaaS was a $13b market

– Predicted to grow to over $30b by 2016

Market Leaders - IaaS

Market Leaders - SaaS

• Salesforce.com

– Salesforce.com, work.com, desk.com

• Google

– Google Apps

• Microsoft

– Office365 Suite

SMB And Emerging Cloud Players

• Desktop

– Desktop as a service

• Egnyte

– File Sharing

• DinCloud

– Virtual datacenter

• CloudBees

– Java Platform as a Service

• OneLogin

– Single sign on for cloud-based apps

Financial Applications

• SaaS vs Terminal Server

– Netsuite is SaaS

– Quickbooks is SaaS or “traditional”

– Which suits your business better?

Cloud Price Trends in 2014 and Beyond

• Since 2006, Amazon Web Services (AWS)

cut its prices over 30 times

– In 2013, cut some instance pricing by 80%

• Microsoft Azure cut its pricing to match AWS

• Google cut its pricing to match AWS

How To Take Advantage Of Price Trends

• Is it all about the price?

• AWS is market leader in IaaS

• AWS drives the price wars and others will match

them

• AWS has been willing to operate at a loss when

necessary

Potential Issues To Consider

• Service Level Agreements

– Who has the best SLA?

– What kind of an SLA is it – facilities, platform, application?

– Does the SLA have “teeth”?

Availability % Downtime

per year

Downtime

per month

Downtime

per week

90% (‘one nine’) 36.5 days 72 hours 16.8 hours

99% (‘two nines’) 3.65 days 7.20 hours 1.68 hours

99.5% 1.83 days 3.60 hours 50.4 minutes

99.9% (‘three nines’) 8.76 hours 43.8 minutes 10.1 minutes

99.95% 4.38 hours 21.56 minutes 5.04 minutes

99.99% (‘four nines’) 52.56 minutes 4.32 minutes 1.01 minutes

99.999% (‘five nines’) 5.26 minutes 25.9 seconds 6.05 seconds

99.9999% (‘six nines’) 31.5 seconds 2.59 seconds 0.605 seconds

99.99999% (‘seven nines’) 3.15 seconds 0.259 seconds 0.0605 seconds

Potential Issues To Consider

• Security

– ITAR

– PRISM – in or outside USA

– Shared vs Dedicated

Potential Issues To Consider

• Regulatory

– FINRA

– HIPAA

– SOX

Open To Questions