1. What Every Business Should Know About The Future OfComputing Contrast: CBT Jim Beebe Jim.Beebe@ContrastCBT.Com July 23, 2012

2. What is Cloud Computing? Computer Services asUtilities. Cloud Computing is the transition of advanced business technology from the specialized to the commonplace exactly the same transition as electricity and telephone services in the past. Cloud computing users consume and pay for resources as needed without the cost of maintaining an internal infrastructure and personnel. Services can include full integration and interoperability with users internal systems or they may be standalone, disconnected systems. Complexity of the implementation is dependent on the level of integration and customization. Cloud computing relies on standardized delivery mechanisms such as the Internet for networking and web browsers for the user interface rather than traditional proprietary networks, storage and servers. 2

3. Small And Medium Businesses Now Have theOpportunity to Leverage Enterprise BusinessTechnology.Traditional Desktop Computing is the standard, one computer per user,computers and telecommunications are2012 2005 2010 2011 discreet. 2013 2014 2015 2016 2017 2018 Devices User Infrastructure Network, storage and processing infrastructure is owned and managed by the business. ApplicationsApplications run from the desktop with data located on centralized servers,managed by the business. Virtualization has begun to commoditize computers application users can select from a tablet, desktop or notebook as they choose. Infrastructure moves into public and private clouds wholly or partially owned and managed by service providers. Applications are available as services that are delivered on web browsers and are available anywhere the Internet can be reached and often even when it cannot. Within five years nearly all traditional business applications are available as services and standard devices are no longer needed.Legacy IT, or traditional IT with Transitional Cloud or Utility Basedbusiness owned and specializedresources. 3

4. Cloud Computing is the logical evolution of the Internet. Cheap bandwidth andlarge scale server farms combined with the technical complexity of modernbusiness applications lead to externalization of services in congruence withconvergence of end devices. Cloud-based services include: Software as a Service (SaaS): A service provider owns, hosts and manages the complete software delivery experience delivered via the Internet to a web browser. Delivery models include multi-tenant, dedicated, on-demand or elastic. Infrastructure as a Service (IaaS): A service-based model for provisioning core computing servers, storage, and network resources for deployment and execution of externally hosted applications. IaaS services may incorporate usage based metering, which allows for rapid expansion and contraction of capability. Security as a Service (SecaaS): Delivers traditional information security services, such as intrusion detection and mitigation, as a managed service. Security as a Service delivery models include fully-managed, specific or on-demand services. Platform as a Service (PaaS): A software development and delivery platform on which customers utilize special software development tools and methods to manage the software design, development and delivery on a hosted or service provider owned system.

5. Software as a Service (SaaS) is a Technology That Delivers aComplete Application Directly to the End User via a WebBrowser. Examples of SaaS that are available today include many well known web applications including Salesforce.Com, Microsoft Office 365, Google Docs, Yahoo Mail, Linked-In SaaS offers the benefit of immediate access to sophisticated business applications in a consistent, high performance and secure manner from anywhere Internet access is available SaaS delivered applications are accessible via most common platforms including Windows, Tablets, Mac and mobile devices. Some of the risks associated with SaaS include challenges in the forms of compliance, security and reliability. Service Level Agreements and service provider security and compliance measures must be clearly understood and managed. 5

6. Infrastructure as a Service (IaaS) Provides Processing, Storageand Network Infrastructure as a Commodity, Enabling Rapidand Reliable Deployment of Business Systems With LittleCapital Investment. IaaS is agnostic to the processor, storage or networking requirements of the application. Examples of IaaS providers include Amazon.coms AWS, S3 and CloudFront . Services which provide large scale server environments to thousands of well known applications, including many Facebook applications and the LinkedIn service, are commonly hosted on IaaS systems. Benefits of IaaS include rapid delivery and scaling of systems, very strong security and the shifting of risk to a service provider. IaaS provides an inherent advantage by leveraging enterprise systems architecture without the investment in privately owned data centers. IaaS is the fastest way to move traditional applications into managed services via physical to virtual system migration. Additional benefits of IaaS include options for rapid disaster recovery and managed administration and security. One of the risks in using IaaS is regulatory compliance. A complete understanding of the service level agreements and obligations is necessary before entering into an IaaS arrangement. Additional risks include physical security of the hosting service, legacy application compatibility and actual delivery of the service in accordance with the agreed service level. 6

7. Platform as a Service (PaaS) is a Software Development andDelivery Method Designed Around Cloud Computing ThatMay Bring Future Benefits PaaS delivery methods are relatively new, but there are several large providers with offerings. Microsoft (Azure), Amazon (Amazon Web Services), Google (App Engine), Joyent and Salesforce.com are major players in the PaaS market. PaaS accounted for approximately 1.5% of software market sales in 2009. The key benefits of PaaS include rapid application development in a form designed specifically for cloud computing. PaaS software development utilizes traditional development tools and languages, but include functionality meant to abstract the various layers of software, data and delivery. PaaS development is non-specific to end-user device and PaaS applications will work on any supported web browser. 7

8. Security as a Service (SecaaS) Shifts Security Inspection,Enforcement, and Management Processes from theCustomers Location to the Cloud. SecaaS providers include most of the well-know vendors in Information Security. Services that have traditionally been offered in-house are now scaling up and adding benefits when serviced from the cloud. SecureWorks, McAfee, Symantec and several other security vendors now offer SecaaS. Other providers include IBM, WebSense and Barracuda SecaaS benefits include clean integration with existing security, simplicity and flexibility, allowing service providers to plug and play with existing infrastructure and provide immediate gains in overall security and reliability of IT resources. SecaaS implementations take little time in some cases it can be started with a simple phone call and can be in place in hours. Fewer attacks reach the internal resources, reducing the risk of any security gaps or flaws being exploited Secaas can significantly reduce the workload on internal IT staff and centralizes reporting and audits for compliance. 8

9. Emerging Technologies in Cloud Computing OfferOpportunities Specialized services on-Demand are emerging. Communications as a Service (CaaS): Hosted VOIP or other communication providers, such as Skype, Nortel CaaS. Storage as a Service (STaaS): Rented storage infrastructure Amazon Storage Cloud (S3) Backup as a Service: Member Firms may consider Backup as a Service through providers such as SugarSync, DropBox, ZumoDrive and others, but consideration for compliance and security should be given before wide adoption. File Sharing Services: Dropbox, Office Live, Google Apps and other services allow for rapid sharing of documents and even collaborative editingl. However, Member Firms should consider the potential compliance and audit issues before adoption. Virtual Desktop Services: Service offerings from several new companies promise to deliver a completely transparent and portable desktop over the next few years. This is a new technology and not mature enough to recommend, but it has the potential to completely transform the office and completely commoditize end user desktop hardware. Private/Public Cloud Hybrids allow migration and interoperability between internal and external cloud networks. This will allow Cloud users to leverage the storage requirements that their applications need without incurring the financial burden of expensive public cloud storage. 9

10. Implications and Risk Management When Working in theCloud Expense Management: Understand what you are getting and the cost it can surprise you! Data Security: IT has limited visibility into the physical location of data storage, may be unable to impose security policies on remote locations, and has limited ability to monitor applications hosted in the cloud. Governance and Regulatory Compliance: Controlling the data shared with a cloud service provider and the providers partners is difficult, especially when combined with requirements for compliance with Sarbanes-Oxley, HIPAA, Basel II, and other regulations. Service-Level Agreement (SLA) and Performance: IT may lack well-defined, meaningful clauses in SLAs with cloud vendors. Integration and Interoperability: The lack of standard interfaces and authentication infrastructure poses potential interoperability issues between cloud service providers and between the cloud provider and the enterprise. Bandwidth and Connectivity: One of the most significant constraints of Cloud Computing is the reliance on Internet Infrastructure. Member Firms will need to insure adequate bandwidth (speed) and reliabiltiy of Internet connections. Redundant connections are recommended for businesses who rely heavily on Cloud resources. 10

11. Is it for me?Traditional Business Technology Cloud Computing Large Capital Investment Little to no capital investment Specialized Staff and Training Leverage specialized staff at provider Ongoing maintenance and upgrades focus on your business Integration and Interoperability you Businesses may need to compromise own it, so you control it. on interoperability of applications. Investment and complexity increases Disaster Recovery is generally built-in with Disaster Recovery requirements. Service Levels are difficult to enforce. Service Levels are enforceable. Difficult to scale or shrink after initial Unlimited scalability to your current investment. business needs. 11

12. Consider Your OptionsContrast: CBT will work with you to evaluate your current and futurebusiness technology requirements. We will help you identify systemsthat are good candidates for the Cloudl, and perhaps some that are notquirte ready. Before you commit to either on-site or cloud basedsolutions let us help you find the right path forward.info@contrastcbt.com