HEAD FOR THE CLOUDS WITH YOUR FEET ON THE GROUND

Bob Raffo, Principal, HartVidaRaffo

ALTA 3rd ANNUAL CONFERNCE – Long Beach, CA – Feb 28 – Mar 1 2013

HartVidaRaffo is a trusted advisor to small and medium growth companies providing experience and expertise to develop strategies, manage projects and optimize performance.

Our services are aligned with the responsibilities of the CFO and our objectives are focused on the goals of the business.

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The Fred Syndrome

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A Model for Growth and Scale

HartVidaRaffo copyright 2013.

Agenda

• A Cloud Computing Primer

• Trends in Mobile & Cloud

• Evolving Business

• Case Study: The Cloud at Work

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WHAT IS THE CLOUD? A PRIMER.

ANATO

MY O

F A CLOU

D SERVER

Traditional Physical Server

• Physical server is made of multiple hardware components integrated into a single device.

• A single operating system is installed to manage the hardware and software installed.

• The server can be set up for multiple users and complex security to control access to resources.

• All software and applications must be compatible with the operating system installed.

ANATO

MY O

F A CLOU

D SERVER

Virtual Server

• Physical server is made of multiple hardware components integrated into a single device.

• Virtualization software such as VMWare or MS HyperV is installed to create virtual servers.

• Multiple virtual servers can run on one physical server. Each can have a different operating system.

• All software and applications must be compatible with the operating system installed on the virtual server.

SHARED

VERSUS D

EDICATED

CLOU

D SERVERS

Shared Virtual Server

• A single physical server has multiple instances of virtual servers.

• All virtual servers share the resources of the physical server.

• The server can be set up to prioritize resources for one server versus another.

• Performance can be impacted when servers compete for resources.

Dedicated Virtual Server

• A single physical server has multiple instances of virtual servers.

• The virtualization software allocates and dedicates specific resources to a virtual server.

• Resources can be adjusted or reallocated as servers require more computing power.

• Performance is limited by the amount of resources dedicated to a virtual server.

PUBLIC VERSU

S PRIVATE CLOU

D SERVERS

Public Cloud

• Virtual servers are accessible from the public Internet.

• Security is typically limited to the access security of the server.

• Public cloud servers are typically stand alone servers and are not part of a network of servers.

• Best suited for situations that do not require advanced security or need to meet regulatory compliance.

Private Cloud

• Virtual servers are not accessible from the public Internet.

• Security is enforced with physical devices like firewalls.

• Private cloud servers can be part of a private network and combined with physical servers to create a hybrid environment.

• Appropriate for secure corporate computing..

PublicInternet

PrivateNetwork

ABOUT CLOUD & MOBILE COMPUTING

A MOBILE WORLD

• Mobile devices are outselling PCs and Laptops.• 1/3 Population is online – 80% of top 30% of Income• Personal broadband grew from 0 in 2005 to 500,000 in 2010• 2015 is expected to reach 2,000,000 personal broadband connections

Source: BI Intelligence

• 78% of employees have a mobile device for work.• 65% White-collar roles require mobility for work.• 44% Knowledge workers telecommute at least one day per week.• $2500 is the annual cost savings related to telecommuting one day per week.• 75% of enterprises expect employee owned devices connecting to company

networks to increase significantly over next two years.

Source: Cisco IBSG

CLOU

D STRATEG

IES FOR 2013

Software as a Service(SaaS)

Platform as a Service(PaaS)

Public Cloud (IaaS)

Private Cloud (IaaS)

Business Process as a Service(BPaaS)

Hybrid Cloud (IaaS)

0% 10% 20% 30% 40% 50% 60%

No Plans to adoptAdopt in distant futureAdopted in near futureAlready adopted

• Trident Capital sees its 2013 investment focused on opportunities that monetize the internet especially through cloud delivery, mobile, social and big data analytics – with a particular interest in security for cloud and mobile environments. (Trident Capital Blog 1/7/2013)

• Forbes sees 2013 as a breakout year for cloud computing – focusing on the need for business leaders to understand how to manage cloud computing as a critical component of their IT strategy. (Louis Columbus, Forbes, 12/18/2012)

• Security on mobile devices is a critical issue with significant security holes in devices from all manufacturers including Google, Apple, RIM, and Microsoft. (Rob Enderle, ITBusinessEdge, 1/3/2013)

• Forrester Research says that the primary concern facing mobile access to corporate computing assets or a BYOD strategy is security and privacy.

Source: Cisco IBSG

WHY IS THE CLOUD IMPORTANT?

A BRIEF HISTO

RY OF M

OD

ERN CO

MPU

TING

80’s• PC is born• Productivity

Applications

90’s• IP Networking• Server Technology• Internet Standards• Relational

Databases• GUI

00’s• eCommerce• Smart Phone• Social Networking

10’s• Cloud Computing• Technology as a

Service• Big Data• Information

Security

COM

MERCE M

OD

ELS

National Commerce

Treaties & Trade Agreements

GDP & Monetary Policy

Social Benefits and Employment

Regulations & Taxes

Corporate Commerce

Supply Chain & Sourcing Partners

Banking and Access to Capital

Product or Service Innovation

Governance & Compliance

Collaborative Commerce

Networking & Relationships

Access to Income

Flexibility & Adaptability

Independence & Self-Reliance

CASE STUDY : THE CLOUD IN ACTION

CASE STUDY

CASE STUDY

Background• International shipping container doing

business in every major shipping port in the world..

• Company owners are located in Europe.

• Back office operations were in Rio but were not efficient or accurate.

• HVR was asked to provide business process outsourcing and manage the entire accounting function.

Solution• Owners created a holding company in the

Bermuda with operating offices in:• Belgium• Singapore• Shanghai• Rio Brazil• Santos Brazil

• A single member LLC was created in the US with the Bermuda corporation as the sole member. HVR operates the US LLC from New York.

• Bi-monthly we import all billing and expense activity from a SaaS product called World Link into the US LLC accounting system. All payments are remitted to the US office an we make the deposits. All US vendor checks are cut from the US office and we issue a 1099 to the contractors.

• The company has virtually very few permanent employees and operates globally.

WRAP UP

Takeaways• Cloud computing is no different than

shared office space.

• Mobile computing and broadband access will create opportunities in an increasing number of new markets.

• Systemic unemployment is driving a Collaborative Commerce model.

• Engaging in global business as a very small or micro business is possible because of cloud computing.

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Thank You - Questions

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Bob RaffoPrincipal, HartVidaRaffo60 East 42nd Street, 46th FloorNew York, NY 10165

O - (212) 485 – 9828D - (914) 617 – 7627braffo@hvrpartners.com

Web site : http://www.hvrpartners.com

Facebook : http://www.facebook.com/hartvidaraffo