The document introduces cloud computing concepts such as defining cloud, different cloud service models including SaaS, PaaS, IaaS, and DaaS, benefits of cloud computing like reduced costs and increased flexibility, and factors to consider when evaluating cloud providers like data center location and certifications. It also provides an example of a recent healthcare client migration to a private cloud for electronic health records and other applications.

1. Welcome to
Cloud Computing Demystified

2. Introduction
Cloud Computing Demystified
Daniel Haurey, President
President
Please Silence Your Phone
WORKSHOP 304

3. Our Agenda
• Defining Cloud
• Cloud Terms and Related Acronyms
• The Business Case for Cloud
• Cloud Benefits
• Understanding Your Options
• Conducting Proper ROI
• Q&A
To Receive a Copy of This
Presentation, email Dan at:
dan@exigent.net

4. What is the cloud?

5. What is Cloud?
A very general term for anything that
involves delivering computing services over
the Internet.
• Ever used Gmail or Facebook? You’ve used the cloud
• It doesn’t live on your computer (usually not “installed”)
• You can access it from anywhere
Definition of cloud computing
by the National Institute of
Standards and Technology
(NIST):
“Cloud computing is 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
provisioned and released with
minimal management effort”

6. Where is the cloud?
• Data center: a facility used to house
computer systems and associated
components, such as telecommunications
and storage systems.
Features redundant or backup power
supplies, redundant data communications
connections, environmental controls (e.g.,
air conditioning, fire suppression) and a high
level of physical security.
The resources (networks, servers, storage, applications, and services)
reside in a data center

7. Data Centers
View from inside a typical data center

8. PUBLIC VERSUS PRIVATE CLOUD
Clouds may be public or private
 A public cloud sells services to anyone on the Internet.
Currently, Amazon Web Services (AWS) is the largest public cloud provider.
 A private cloud is a proprietary network or a data center that
supplies hosted services to a limited number of people..
(Exigent Technologies offer private cloud)
Private or public, the goal is to provide easy, scalable access to computing resources.

9. It’s Not all or Nothing
Hybrid Cloud
Some organizations place 100% of their computing in the cloud. Others rely on
the cloud for a portion of the infrastructure.
Example: An medical practice that has thousands of images or documents stores those files on
Amazon’s “Glacier” public cloud, but maintains their EHR application in-house.
Hybrid Cloud is a Viable and Popular Choice

10. Cloud Constants
 Sold on demand
 Buy as much or as little as you need
 Elastic
(Easy to scale up or down)
 Managed by the cloud provider
(Keeping it running is not your problem)
 You only need an access device (computer, tablet, etc.)
and Internet access to use it
General Characteristics of Cloud Services

11. Acronyms Anyone?
Cloud services are broadly divided into four categories:
S o f t w a r e - a s - a - S e r v i c e ( S a a S )
( P a a S ) P l a t f o r m - a s - a - s e r v i c e
I n f r a s t r u c t u r e - a s - a - S e r v i c e ( I a a S )
D e s k t o p - a s - a - S e r v i c e ( D a a S )
Everything (“as a service”)

12. Software-as-a-Service (SaaS)
With SaaS, the vendor supplies the hardware
infrastructure and the software.
The user accesses the product through a front-end portal
or browser.
SaaS is a very broad market. Services can be:
 Web-based email
 Inventory control
 Database processing
 EHR & Practice Management
Because the service provider hosts both the
application and the data, the end user is free to
use the service from anywhere.

13. Desktop-as-a-Service (DaaS)
Desktop-as-a-service:
• A virtual PC that lives in the cloud
• You can do the same thing in house, but it can be
costly and very complex (“VDI”)
• Gaining traction now that Microsoft is offering it on
Azure

14. Infrastructure-as-a-Service (IaaS)
• The most straightforward of the four models
• IaaS is the virtual delivery of computing resources in
the form of hardware, networking, and storage
• May also include the delivery of operating systems and
virtualization technology to manage the resources
• Rather than buying and installing the physical
resources in your office, you rent them, as needed
Exigent Technologies offers (IaaS)

15. Platform-as-a-Service (PaaS)
Platform-as-a-service: A set of software and product
development tools hosted on the provider's infrastructure.
• Developers create applications on the provider's
platform over the Internet
• PaaS providers may use APIs, website portals or
gateway software installed on the customer's
computer
• Force.com, (an outgrowth of Salesforce.com) and
Google’s App Engine are examples of PaaS

16. Why Cloud?
Making the Business Case
 Easier to Manage
 Might Save Money
 More Secure
 Highly Reliable
 Eliminate VPNs
 Offers Greater Flexibility
 Increased Productivity
*http://www.microsoft.com/en-us/news/press/2013/jun13/06-11cloudstudypr.aspx
94% of small and medium
businesses polled in a recent
Microsoft study report greater
security benefits from
Cloud Services
versus former on-premises
technology*

17. Benefits by Stakeholder
What’s in it for me?
STAKEHOLDER CLOUD COMPUTING OUTCOME
Business Owners
Practice Managers
Eliminate acquisition cycle
Pay for consumption
Predictive Costs
Reduce Total Cost of Ownership
(TCO)
Cost Certainty (budgeted)
IT Dept.
Instant Deployment
Access to Best in Class
Infrastructure
Reduce Manpower
Focus on Higher Level Strategy
(“Out of the weeds”)
Developers
Self Service
Rapid Access to Services
Powerful APIs
Faster Development Cycle
Lower Development Costs
End-Users
Anytime, Anywhere Access
Access to Latest Software
Increased Productivity

18. Performing a Total Cost of Ownership
(TCO) Analysis
The “Myopic” Method
“Exigent’s Cloud Cost Analysis Calculator is the real deal.
Whenever our clients are looking for IT support, we
tell them to call 855-No-Downtime.”
- Partner
Leading New Jersey-based Accounting Firm
Example
TOTAL CLOUD COSTS OVER 36 MONTHS:
$36,000 ($1,000 per month)
COST TO PURCHASE AND “OWN” HARDWARE
AND SOFTWARE FOR ON PREMISE INSTALL:
$35,000
Simple, right?
“$35,000 ÷ 36 Months = $972.22 Per Month”

19. Performing a Total Cost of Ownership
(TCO) Analysis
The “Thinking Person’s” Method
“Exigent’s Cloud Cost Analysis Calculator is the real deal.
Whenever our clients are looking for IT support, we
tell them to call 855-No-Downtime.”
- Partner
Leading New Jersey-based Accounting Firm
TOTAL CLOUD COSTS OVER 36
MONTHS:
$36,000
COST TO PURCHASE AND “OWN”
HARDWARE AND SOFTWARE FOR
ON PREMISE INSTALL:
$35,000
But wait! There’s more…

20. COST CONSIDERATIONS
• Devil is in the details
• Resist temptation to look only at hard costs
Electricity
Unexpected Downtime
Unplanned Repair Costs
Savings on PCs
Savings on PC setup costs
Software Version Upgrades

21. ELECTRICITY
 Surprise! Running servers in your office costs
hard dollars.
 Older servers are much less energy efficient
than newer ones.
 It costs approximately $357 to $471 per year to
run a single server

22. Unexpected Downtime
• Unexpected downtime will happen
 Power and Internet failures are most
common
 Downtime is expensive!
(Example)
A power outage at your office where 20 employees can’t work due to a server being down.
(20) unproductive employees who are paid an average of ($15) per hour for a period of (10) hours
(20 Employees X $15 Per Hour X 10 Hours = $3,000.00)*
*per incident
w i t h o n - p r e m i s e I T

23. Unplanned Repair Costs
• With cloud, any and all repair costs are
covered by the provider.
• With on-premise IT infrastructure, you
have to allot for unplanned server, UPS
and ancillary repair or recovery costs
(over the life of your servers)
FACT: With on-premise IT, stuff will break.
Parts and labor (money) will be needed in order to fix it

24. Savings on PCs
• Generally don’t powerful PCs with cloud
• Less powerful PC's saves on average $200 to $300 per
PC as you replace them
• May be able to use “dumb terminals”
(Example) You plan on replacing 15 computers over the next 3 years.
That translates into a potential savings of up to $3,000.00 to $4,500.00

25. Savings (Time & Money) on PC Setup Costs
• Fewer applications to install and
maintain on each new PC
• Lower labor costs
• Less of an impact on employees
productivity

26. Software Version Upgrades
(IaaS)
Microsoft software version upgrades are included
Example: Your organization is currently running Microsoft
Exchange Server 2010 and you would like to upgrade to
the latest version (currently 2013). It’s free.*
(PaaS) & (SaaS)
You reap the benefits of new features without lifting a
finger. It doesn’t cost you anything.
*Microsoft SPLA licensing entitles you to use latest version of software

27. The Thinking Person’s Analysis

28. VETTING CLOUD PROVIDERS
Questions to Ask, Things to Consider
• How Transparent is the Provider?
• Where (exactly) is my data / Where is the data
centers?
• Is the Data Center SSAE-16 Certified?
• How long has the company been in business?
• How long has the data center been in business?
• Can you visit the data center and tour the facility?
• Who owns the equipment?
• Are they an official Microsoft Hosting Provider?
• What industry accreditations do they have?
• Can they provide a third-party audit document?

29. TurnKey Cloud™ Exigent
Private Cloud, Infrastructure-as-a-Service (IaaS)
• Servers
• Desktops
• Complete Catalog of Microsoft Software
(through Microsoft Hosting Agreement)
• Multiple Storage Tiers (RAID 1/5/10/6/50/60)
• Local, World Class Data Center (Parsippany, NJ)
• N+1 or Better Redundancy
• Completely Managed (Unlimited Support for Hosted Apps and NOS)
• Totally Customized for Your Organization

30. Recent Migration
Tri-County Orthopedics
• 4 Office Locations in NJ
• 250 Employees
• 16 Physicians
• 7 Physician Assistants (PA)
• Vitera Intergy v9.00 EHR, Zix
Email Encryption, Microsoft
Exchange Email, PACS, Patient
Portal, Practice Analytics and
more.
“Exigent is the easy button for us when it
comes to IT. Before the ink dried on our
new services contract, Exigent had our
move to the cloud planned out and the
execution has been flawless.”
- Dr. Michael Goldberger, Tri-County
Orthopedics, Exigent customer since 2005

31. IT – A Ubiquitous Commodity
• You wouldn’t build your own power plant
• You wouldn’t dig your own water well
• You may not want to
continue to supply and
maintain all of your own IT
Just like other transport infrastructures, IT has become commoditized to a certain degree

32. The Bottom Line
• Cloud is Here to Stay
• Resistance MAY be futile
• Always Follow the Money
• If it makes you uncomfortable – IT SHOULD

33. Q&A
Exigent Technologies
Dan Haurey
973.804-2888
dan@exigent.net
www.exigent.net