A joint presentation given by Paul Selway from Red Path and Jason Baker from VISI regarding how enterprises can leverage cloud computing in their IT strategy.

1. How to Utilize Cloud in your Corporate IT Strategy Paul Selway James Smale Jason Baker 1 Redpath Consulting Group confidential and proprietary 2010

2. Paul Selway Paul brings to Redpath Consulting Group over 25 years of experience in the consulting industry. His extensive background and career progression through the roles IT Management Consultant, Technology Director, and Principal Partner began from a solid foundation as a Software Engineer. His experience was gained from numerous management consulting engagements for clients in both Europe and North America; focused on the healthcare, financial, banking, brokerage, and capital markets industry. Paul has an International MBA from Henley Business School, B.S.C Honors Computer Science Degree, Electronics Degree, and is a Chartered Engineer. Paul Selway President 2 Redpath Consulting Group confidential and proprietary 2010

3. James Smale James brings to Redpath Consulting Group over 20 years of experience in business and the IT consulting industry. His extensive background and career progression through the roles Sr. Technical Analyst, Technology Director, Business Entrepreneur and Principal Partner began from a solid foundation as an IT Infrastructure Engineer. His experience was gained from numerous management roles and consulting engagements for clients in both Europe, Asia, Latin America and North America; focused on software manufacturing, airline operations, advertising, agriculture, manufacturing, and health care industries. James also has extensive experience in operational support leadership, process improvement, strategic organization planning and enterprise architecture planning. James Smale CEO 3 Redpath Consulting Group confidential and proprietary 2010

4. Jason Baker Jason Baker has over 15 years of experience working with Internet and telecommunications organizations in Minnesota. As CTO of VISI he helped architect ReliaCloud, the first public cloud computing platform in the Upper Midwest. Prior to VISI, he co-founded Digital North and was the technology leader within the organization. In his capacity as Director of Operations, Baker helped Digital North expand into multiple datacenters serving thousands of customers. During the dot-com era in the late 1990’s, Baker was a key technology driver and partner at iPares, a multinational dot-com consultancy. Baker managed the profitable Application Hosting division within the organization. Early in his career he joined MEANS Telcom, a regional telecommunications provider. As a member of their professional services team he worked closely with businesses during a time when the Internet was first becoming a useful business tool. Jason Baker CTO 4 Redpath Consulting Group confidential and proprietary 2010

6. Google

7. Visi/ReliacloudLet us show you how you can leverage the cloud. www.redpathcg.com 5 Redpath Consulting Group confidential and proprietary 2010

8. About Visi /ReliaCloud ReliaCloud, a product of VISI, is an enterprise-class cloud designed for businesses and that need dynamic infrastructure. - Based in Minneapolis/St. Paul region - 2 data center locations (SAS 70 Type II) - 10+ years in data center business - 24x7x365 live support www.visi.com Data Center 1: St. Paul, MN 6 Redpath Consulting Group confidential and proprietary 2010

10. What should be considered for an IaaS ROI?

11. What makes an IT Infrastructure component a good candidate for IaaS?

12. How can an assessment help identify cloud IaaS opportunities?

13. What about the organizational change management challenge?

14. How do you build a hybrid IT Strategy that includes cloud components?

15. How can you create a compelling business case to justify cloud components in your IT Strategy? 7 Redpath Consulting Group confidential and proprietary 2010

16. 8 Redpath Consulting Group confidential and proprietary 2010

17. So What Is Cloud Computing and IaaS? Cloud Computing is internet based computing, where shared resources like computer hardware, data, and software packages are provided on demand as a utility, very much like electricity is provided from the electricity grid. Infrastructure as a Service (IaaS) - public cloud computing customers do not own their hardware infrastructure, so avoid capital expenditure by renting it from a cloud provider. 9 Redpath Consulting Group confidential and proprietary 2010

18. Cloud Computing Characteristics - Cloud users pay for what they use on either a utility model (like electricity) or a subscription model (like a newspaper). Low upfront costs to get started. Economics (ROI) – Low cost to establish, elastic (you can have as little or as much of it as you want), pay for what you use, terminate contract therefore avoiding ROI risk and uncertainty. Architecture - Cloud architectures typically involve multiple cloud components generally joined together (web services) with integration points to legacy systems. 10 Redpath Consulting Group confidential and proprietary 2010

19. Data Centre Evolution ApplicationSilos Zones ofVirtualization PublicCloud Services PrivateCloud Services Apps Servers Network Storage From silos…to Dynamic Data Center and IT as a service Standardize Virtualize Departmental Self-Service Consolidate Automate Centralize 11 Redpath Consulting Group confidential and proprietary 2010

20. Cloud Framework Hybrid Clouds Deployment Models Service Models Community Cloud Public Cloud Private Cloud On Demand Self-Service Essential Characteristics Broad Network Access Rapid Elasticity Software as a Service (SaaS) Platform as a Service (PaaS) Infrastructure as a Service (IaaS) Resource Pooling Measured Service Massive Scale Resilient Computing Common Characteristics Homogeneity Geographic Distribution Virtualization Service Orientation Low Cost Software Advanced Security 12 Redpath Consulting Group confidential and proprietary 2010

21. Business Models in the Cloud VISI / ReliaCloud Amazon EC2 Rackspace Cloud Server Google App Engine Microsoft Azure force.com Google Apps Salesforce.com Intuit 13 Redpath Consulting Group confidential and proprietary 2010

22. Cloud Deployment Models Private cloud - Enterprise owned or leased Hybrid cloud - Shared by several organizations Community cloud - Shared by a few organizations Public cloud - Shared by the general public 14 Redpath Consulting Group confidential and proprietary 2010

24. Cloning

25. Scalability (up & down)

26. Redundancy

27. Dynamic provisioning

28. Hardened security model

29. Utility pricing (“Pay-as-you-go”)

30. Formal Service Level Agreements

31. Predictable Quality of Service Applications Virtualization-Aware Network Virtualized Dynamic Infrastructure Service-Based Holistic Decision 15 Redpath Consulting Group confidential and proprietary 2010

33. Security and regulatory requirements

34. Accelerated time to delivery

35. Elastic resources & scalability

36. NEW apps vs. legacy apps16 Redpath Consulting Group confidential and proprietary 2010

38. Servers are used at only 15% of their capacity

40. Number of servers doubled from 2001 to 200617 Redpath Consulting Group confidential and proprietary 2010

42. IT produces 2% of global carbon dioxide emissions18 Redpath Consulting Group confidential and proprietary 2010

43. Faster Time to Value Cloud Computing Applications Automated Upgrades Large Operating Expenses Cloud Computing Value Value Value Time No Capital Expenses Upgrade Expense Large Capital Expense & High Risk Average 51% ROI within 12 Months2 53% of software projects cost 189% of original estimate1 1 Standish Group, Chaos Report 2006 2 Third-Party CustomerSat Research on 3,500 Salesforce.com customers, December 2008 19 Redpath Consulting Group confidential and proprietary 2010

44. IaaS ROI On Premise = Hidden Costs Cloud Computing: 40% - 60% Lower TCO Licenses Hardware Consultants Infrastructure Dedicated Staff Upgrades Pay-as-you-go Commodity Hardware Infrastructure Lower Implementation Costs Faster provisioning On demand scalability Utility pricing No capital investment Fast deployment of sandboxes Improved Service Levels (99.999%) Simplified billing as expense 20 Redpath Consulting Group confidential and proprietary 2010

46. An application that can be virtualized

47. Servers with cyclical demand for scalability

48. Email systems

49. Storage systems

50. Document management systems

51. Content management systems

52. Archive and redundancy servers

53. Training servers

54. Demo servers

55. “Garage” applications21 Redpath Consulting Group confidential and proprietary 2010

57. Identify core business capabilities

59. Build infrastructure inventory

60. Identify Total Cost of Ownership (TCO)

61. Generate your strategic options:

62. Infrastructure lifecycle refreshes?

63. Redundant or duplicate infrastructure?

64. Infrastructure that can be virtualized?

65. Commodity systems that can be moved to the cloud?

66. Any quick wins?

67. Select your strategies

68. Create a hybrid IT strategy roadmap22 Redpath Consulting Group confidential and proprietary 2010

69. The Hybrid Cloud Assessment 23 Source: Redpath Consulting Group. Redpath Consulting Group confidential and proprietary 2010

71. Use a big bang strategy? No

72. Use an incremental phased approach reduce risk? Yes

73. Can startups can go directly to the cloud? Yes

74. Does “the cloud” have the same meaning for each cloud vendor? No

75. Do I have any commodity on premise systems? Probably

76. Am I paying for capacity that I am not fully utilizing? Yes

77. Can I use cloud components with my on premise IT? Yes

78. Can I get similar service levels and quality of service? Yes

79. Is the cloud secure? Yes24 Redpath Consulting Group confidential and proprietary 2010

81. Address job security fears

82. Provide training and communicate benefits

83. Expectation setting

84. Address perceived loss of control

85. Educate on security model to reduce concerns

86. Manage people, process and technology change

87. Position better use of IT resources

88. Provide communication plan25 Redpath Consulting Group confidential and proprietary 2010

90. Everyone wants IT to cost less and wants IT when they want IT

91. Let your IT staff focus on innovation instead of infrastructure

92. Get access to enterprise class systems at a reasonable price

93. Are there clouds on your horizon? Yah you betcha….26 Redpath Consulting Group confidential and proprietary 2010

94. Promos Free ½ Day Cloud Strategy Mini-Assessment * Redpath Consulting Group will provide an experienced cloud strategy consultant for ½ day to work with your business and IT team to perform an assessment of your current state and identify cloud computing opportunities. * For businesses with 25 employees or more. Contact Redpath about your specific situation Free Cloud Server for Mini-Assessment - ReliaCloud ReliaCloud will provide a $200.00 credit towards creating a cloud server for you try out one of your apps in the cloud. 27 Redpath Consulting Group confidential and proprietary 2010

95. 28 Redpath Consulting Group confidential and proprietary 2010