The document compares the total cost of ownership of physical, virtual, and cloud-hosted desktops. It finds that virtual desktops can reduce costs by up to 36% over physical desktops, while cloud desktops deliver further savings of over 20% compared to on-premises virtual desktop infrastructure. On-premises VDI has high upfront infrastructure costs that offset labor savings, while cloud desktops have no infrastructure investment and provide the lowest total cost of ownership through a pay-as-you-go model.

1. Comparing the total cost of
ownership (TCO) of Physical,
Virtual and Cloud-hosted desktops
©2009 Desktone, Inc. All rights reserved. 1

2. Agenda
• Desktop Management Challenges
• Virtual Desktop Infrastructure (VDI) Challenges
• Cloud-based Desktops
• TCO Framework
• Desktone Introduction
©2011 Desktone, Inc. All rights reserved. 2

3. DISCLAIMER
• TCO analysis is more contentious than politics so please understand this is one
TCO framework (there are many!). The numbers can be debated but feel free to
insert your own numbers into the framework
• The numbers listed are based on list prices, industry averages, published analyst
numbers and customer feedback
• This analysis was done with REAL customers
• All of the numbers behind the analysis are not in the presentations but can be
found in our TCO whitepaper (will be emailed to all who attended today)
©2011 Desktone, Inc. All rights reserved. 3

4. Why the Switch to Cloud?
For a variety of reasons, cloud technologies are too compelling to ignore.
Dynamically scalable, Accessibility
Speed
virtualized resources Cost
provided as a service
 Maximize revenue
• “Utility” billing (pay as you use)  Reduce cost
• “Unlimited” processing and storage  Expedite time to market
 Focus resources
• Elasticity to scale up or down
 Do more projects
• On demand, self-service
• Highly automated
4

5. Desktop Virtualization & Cloud Overview
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6. Desktop Management Today
Expensive Tipping point for change is here...
Support-heavy
Insecure
Migration to Windows 7
OS
New mobile access
Data
Apps
Settings
Preferences
Tighter IT budgets
Security
©2011 Desktone, Inc. All rights reserved. 6

7. The Promise of Virtual Desktops (VDI)
Virtual desktops
Centrally managed  Cost reduction
In IT data center
 IT consolidation
OS
Data  Easier to manage
Apps
Settings
Preferences  Happy users
Virtual Desktops
©2011 Desktone, Inc. All rights reserved. 7

8. Traditional VDI Reality
… but major BARRIERS exist
Start up
Huge up-front costs
Many moving parts
Complex to design & build
Operationally Intensive
Difficult to maintain
Is it strategic
Do you want to be building and
managing data centers
©2011 Desktone, Inc. All rights reserved. 8

9. Cloud-Based Desktops (DaaS)
Business Benefits
Desktop Cloud  Ease to manage
 Device independence
 Lower TCO
 Low cash out = low risk
 Customer Satisfaction
From Any Device
From Any Location
PARTNERS & FIXED
TEMPORARY OFFICES SUPPLIERS TELEWORKERS BRANCH OFFICES
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10. Total Cost of
Ownership
(TCO)
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11. TCO Framework Overview
• Solutions for Comparison
• PC’s – Standard Desktops
• Onsite Virtual Desktop Infrastructure (VDI)
• DaaS: Cloud-hosted desktops as a service
• Cost Categories
• Endpoint Costs
• Data Center Hardware
• Management Server Overhead
• Software
• IT Labor Costs
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12. Typical Oversights
• Labor/Time
• When comparing to physical PC’s most compare just the annual
cost of the physical desktop
• Management Infrastructure required for VDI
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13. Key Findings – Standard Windows 7 Desktop
• Virtual desktops deliver savings upwards of 36% over desktop PC costs
• Cloud desktops deliver further savings of 20+% over on-premises VDI
• On-premises VDI delivers savings on labor but it is offset by the significant
extra infrastructure required
• The performance requirements for VDI necessitate adoption of external
storage which adds substantial costs
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14. Endpoint Costs
• Defined
• Device used to access a desktop
• Standard PC is a single choice but VDI and cloud-hosted offer
flexibility
• Categories
1. PC
2. Employee Owned
3. Repurposed PC
4. Thin Client
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15. Data Center Hardware
• Definition: up front data center costs needed to run VDI
• Categories
1. Servers needed to run virtual machines.
2. Storage (SAN/NAS)
3. Mgmt Server Overhead
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16. Software
• Definition: software costs account for a large percentage of
any desktop solution
• Categories
• VDI Software
• VDI Support/Maintenance
• Microsoft SA/VDA
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17. IT Labor Costs
• Definition: IT labor costs are very high in the traditional
physical PC world. Virtual & cloud desktops deliver significant
savings
• Categories
• Helpdesk
• Desktop Maintenance
• Training
• IT Labor (Image creation, etc.)
• Downtime
• Network Engineering
©2011 Desktone, Inc. All rights reserved. 17

18. Desktone’s Solution
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19. Who is Desktone
= Cloud-based Virtual Desktops
• Built from the start for cloud-hosted desktops as a service (DaaS)
• Security, end-user performance and customer support is JOB #1
• Frictionless try and buy experience
• Optimized, tested & deployed with the worlds largest companies and
service providers
©2011 Desktone, Inc. All rights reserved. 19

20. •Access from anywhere
How it Works
Client Manages Desktone’s Delivers
IT Shared Resources • High performance network
• Secure & Compliant
• Centralized management & reporting
• Provisioning on demand
Network Connection (VPN)
• Active Directory • Storage
• User Data
End User Devices
• Personalized desktops
• Bring your own licenses
Remote Display
Access Anywhere
20
©2011 Desktone, Inc. All rights reserved.

21. VDI vs. Cloud based Desktops
VDI DaaS
Benefit
Simplified desktop deployment  
Centralized desktop management  
Walk-off data security  
Simplified issue resolution and recovery  
Genuine, customizable Windows client environments  
No upfront CAPEX 
Pay as you go 
Time to value in weeks, not months 
Leverage carrier-class scale 
Expand geographic coverage 
Reduce complexity and risk 
Data Center Scale 
Democratic – Small, Medium, Enterprises, EDU, Gov’t  21

22. 1. IT Friendly Solution
Easy to manage
 On demand desktops: add,
remove, & modify at will
 Centralized management from
any device anywhere
 Visibility into user activity
 No data on devices
Easy to try
 Free trial in minutes:
(www.desktone.com)
 Pilot ease – no infrastructure
required
©2011 Desktone, Inc. All rights reserved. 22

23. 2. Device & Location Independence
Embrace next-generation of employees
 Work and access corporate apps and data from
any device: Mac, Ipad, Droid, thin client, laptop,
PC (http://www.youtube.com/user/Desktone)
 Work from anywhere: home, office, or Starbucks
Leverages “Bring Your Own PC”
(BYOPC) movement
“Instant on” experience
©2011 Desktone, Inc. All rights reserved. 23

24. DaaS Lower Total Cost of Ownership (TCO)
 No complicated infrastructure
to configure and build
 Centralized support and
management
 No expensive management
resources required
 No hidden costs
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25. 4. Low Cash Out = Low Risk
 No infrastructure investment
 Pay for only what you need
 OPEX budget consistency
©2011 Desktone, Inc. All rights reserved. 25

26. 5. 100% Customer Satisfaction
 Services – rapid deployments
 Support – dedicated virtualization experts
 Operational Excellence – 4 years of hosted
desktop delivery
 Training – rich library of self-paced training
modules and live knowledge transfer sessions
©2011 Desktone, Inc. All rights reserved. 26

27. The Desktone
Cloud Consists of
two primary
interfaces
Desktone Enterprise Desktone Portal
Center Used by end-users for
access to resources on the
Used by desktop admins to
Desktone Cloud
manage the Desktone Cloud
27

28. End-User Access
End Point Devices
1. Mobile Devices - Ipad
“DaaS Mobile Client” avail
in the iTunes Store
2. Thin clients - all leading
vendors supported
3. Standard PCs – access
through their preferred
web browser or DaaS
Client.
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29. Summary
• Cloud computing is changing the world of IT
• The current Desktop management market is ripe for change
• VDI was supposed to solve the problems – it has introduced other
issues for most especially cost and complexity
• Cloud-hosted desktops have a significant TCO saving over VDI
• No upfront investment in infrastructure
• No complicated infrastructure to configure and build
• Centralized support and management
• No expensive management resources required
• No hidden costs
©2011 Desktone, Inc. All rights reserved. 29

30. Resources
• Detail TCO Whitepaper or Free Trial: www.desktone.com
©2011 Desktone, Inc. All rights reserved. 30