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									    All Things Postsecondary:
Doing Business in the Cloud

       Christoph Knoess, Engaged Minds Inc.
         Liz Riley-Young, SAS Institute Inc.
    Patty Sullivan, IBM Corporation, moderator
  First….an agreement on what we mean
           when we say “cloud”
• Not all cloud offerings are equal
• Cloud providers have offerings:
   – “FOR” cloud
   – “ON” cloud
• Cloud education providers are coming from many origins:
   – Emerging cloud providers – e.g. email, compute, search, collaboration
   – Emerging education service providers – e.g. learning content,
     administrative services, assessment services, ePortfolio
   – Legacy education vendors – e.g. publishers, SIS, LMS, assessment
   – Legacy IT vendors – e.g. consumer, data center HW, SW
   There’s a difference between “for cloud” and “on cloud”
                                                                              Data resides outside Campus’ firewall

                  1                 2                    3    Enterprise
                                                                                 4 Enterprise A            5
                                         Enterprise                                                            User User   User
                      Enterprise         Data Center
                                                                                        Enterprise B            A     B      C

                      Data Center                                                           Enterprise C         User    User
                                           Managed                                                                 D      E
                                                             Hosted Private
Models                                   Private Cloud
                       Private                                   Cloud
                                                                                       Shared Cloud               Public Cloud
                       Cloud                                 IBM owned and
                                                              IBM owned and              Services                   Services
                                         IBM operated           operated

Offering/Growth            “FOR CLOUD”: 5-15% CAGR                               “ON CLOUD”: 25-35% CAGR
                  •Control of resources and data “inside the campus           •Mix of shared and           •Self Service
Campus View       firewall”                                                   dedicated resources          •Elastic scaling
                  •Resource pooling                                           •Shared staff                •Pay as you go

                  •Economies of scale                                         •Services Levels             •Functionality
Differentiating   •Lower systems mgmt costs                                   •Price                       •Price
Value             •Service Levels/Price                                       •Lowers campus IT            •Removes campus IT
                  •Security and privacy compliance controlled by campus       costs                        costs

                  •Cloud             •On campus          •Off campus          •Cost efficiencies           •Low “on-boarding”
                  component          Service provider    Service provider                                  cost
View/Value        provider
    SaaS           Cloud

5 Thoughts on Cloud Computing

         Christoph Knoess
          Engaged Minds
Differences with important cost implications
                      Single-tenant SaaS   “True Cloud”


     Deployment       On-premise s/w

          On campus

                            Single-           Multi-
                            tenant           tenant

Differences are irrelevant to customers
                    Single-tenant SaaS    “True Cloud”

                                          Email Mktg.
                     LMS, ERP                            SaaS

   Deployment       On-premise s/w

        On campus     Traditional
                      campus IT

                          Single-            Multi-
                          tenant            tenant

      Differences matter to vendors
Operating Margins      15% - 20%                       30% - 40%
                                                                             Marginal cost of
                       Single-tenant SaaS
                                 IT service
                                                                             additional tenant
                    ISV’s                             “True Cloud”           is close to Zero
                Cost efficiencies:              Cost efficiencies:
                Economies of scale from       Dramatically lower overhead
                hosting multiple              from running single instance
                instances of same app
                Differentiation:              Functionality
                Service levels
                             On-premise s/w

  On campus

                                   Single-         Multi-
                                   tenant         tenant
                   Sources of Economic Value
                                                             SaaS   True Cloud

On-demand           Customer can unilaterally
Self-service        provision computing capabilities

Broad network       Capabilities are delivered via
                    browser to heterogeneous thin
access              or thick clients

                    Computing resources are location
Resource Pooling    independent and pooled to serve
                    multiple customers

Rapid Elasticity    Capabilities can be quickly scaled
                    up and down

Measured Service    Transparency and resource optimization
                    through monitoring, controlling and
                    reporting of resource usage
    SaaS Simplifies
          On-premise S/w

Product Mgr.           Business User

S/w Developer          Client DBA

Support                Client IT desk


Product Mgr.           Business User

S/w Developer          Client DBA

                       Client IT desk
                       SaaS is not a Product
 On-premise s/w                Single-tenant SaaS          “True Cloud”

 Software               Software                Business                  Information
 Product                Service                 Service                   Service

           Cash flow
                               Staffing model (PM, dev., support, services)
Sales model (Compensation)
                                    Development (agile vs. waterfall)
    Technology Stack                Release Cycle (days vs. months)

  Implementation / Onboarding            Creation of Business Insights
  SAS on the Cloud

Lessons Learned from moving to
       Cloud Computing

          Liz Riley-Young
              SAS Inc
     Questions for Doing Business on the Cloud
1.   Yesterday, the keynote speaker said that the audience should be
     considered first when creating a cloud service, and later the
     business model(s). Do you agree?
     Questions for Doing Business on the Cloud
2.   When embarking on a cloud computing business, what is
     necessary for an effective implementation?
     Questions for Doing Business on the Cloud
3.   What types of higher education services are best suited for cloud
     Questions for Doing Business on the Cloud
4.   What “lessons learned” would you share from your successes and
     failures in cloud computing?
Thank you!

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