the d+m group - cio summits by cdm media...the d+m group cio cloud summit 2013 ... d+m strategic...
TRANSCRIPT
John Jackson
VP, Global Infrastructure & Vendor
Management
THE D+M GROUP CIO Cloud Summit 2013
Introduction and Business Overview
Determining if a cloud strategy is right for
your organization
How to evaluate the economics of the
cloud
Staffing your organization with the right
skills to make the cloud a success
2
AGENDA
3 I PERFORMANCE IS EVERYTHING
COMPANY OVERVIEW
Acquired by Bain Capital in 2008
$1B diversified global audio company serving the consumer,
professional and automotive markets
Collection of premium, industry leading audio brands with
tremendous market history and loyal customer base
» Denon – founded in 1910
» Marantz – 1953
Sales in more than 60 countries with revenue evenly split
between North America, Europe and Asia Pacific
~2,300 employees with over 300 software and development
engineers across eight design centers
» Boston Acoustic - 1979 » Allen & Heath – 1969 » Calrec – 1964
4 I PERFORMANCE IS EVERYTHING
D+M STRATEGIC BUSINESS UNITS(SBUS)
C O N S U M E R P RO F E S S I O N A L O E M
~60% of sales ~15% of sales ~25% of sales
5 I PERFORMANCE IS EVERYTHING
GLOBAL CUSTOMER PARTNERSHIPS
North America Europe Asia Pacific Segment
AV Specialty
Big Box
Internet
New
Channels
Warehouse Clubs
Sporting goods
Airport Retail
Luxury apparel retail
Luggage shops
6 I PERFORMANCE IS EVERYTHING
Decision on what is strategic and what is tactical
Do you have the right team to support a cloud model?
Forbes Magazine Article:
“A strong partnership between IT and business units,
operational agility, and a knack for modeling new
technologies to fit unique business needs are critical
in order to make the most of cloud computing.”
Understand your security needs
Does the cost benefit justify the disruption?
IS YOUR COMPANY READY FOR THE CLOUD?
7 I PERFORMANCE IS EVERYTHING
STRATEGY
Responsibilities IT Responsibilities center on creating and operating
technology
IT responsibilities center on creating productivity and
capabilities in support of strategy
Management
Challenge
Managing internal resources to create, install and
manage systems internally
Concentrating internal resources on realizing value in a multi-
sourced environment
Technology Technology is owned, operated, budgeted within the
enterprise
Technology is networked across a range of enterprise, partners
and the cloud
Organization IT organization is a pyramid of functional skills who are
enterprise employees
IT organization leveraging business and technical skills along
with sourced partners
Performance
Metrics
IT Success is measured based on creation, provisioning
and operating technology
IT success is measured against changes in business performance
Lightweight
Technologies
Level 1:
Driving Innovation
Level 2:
Delivering Solutions
Level 3:
Managing
Service and
Sourcing
Relationships CURRENT STATE FUTURE STATE
A: Governance
B: Project Management
C: Architecture & Design
8 I PERFORMANCE IS EVERYTHING
ROI FRAMEWORK
On-Premise Cloud Based
Unit Quantity Per Unit Total Unit Quantity Per Unit Total
CAPEX (Initial) 4,428,130$ 157,500$
Server NoS 100 8,000$ 800,000$ NoS 0 -$ -$
Networking Equipment NoS 50 1,000$ 50,000$ NoS 0 -$ -$
Storage TB 50 3,500$ 175,000$ TB 0 -$ -$
Storage Backup TB 350 1,000$ 350,000$ TB 0 -$ -$
Software (OS + IIS) NoS 100 3,999$ 399,900$ NoS 0 -$ -$
Software (DB) NoS 100 24,999$ 2,499,900$ NoS 0 -$
Software (AV + Mgmt) NoS 100 200$ 20,000$ NoS 0 -$ -$
Labor $/resource/month 10 13,333$ 133,330$ $/resource/month 9 17,500$ 157,500$
Real Estate $/sqft 0 1,000$ -$ $/sqft 0 -$ -$
OPEX (Annual) 1,985,717$ 1,479,950$
Computing Power $/hr 0 -$ -$ $/hr 3504000 0.125$ 438,000$
Storage TB 0 3,500$ -$ $/GB 1533000 0.15$ 229,950$
Bandwidth $/per site 3 30,000$ 90,000$ $/GB 600000 0.22$ 132,000$
Headcount resources/yr 8 160,000$ 1,280,000$ resources/yr 3 160,000$ 480,000$
Infrastructure Maintenance % of total cost 15 7,250$ 108,750$ % of total cost 0 -$ -$
Software Maintenance % of total cost 33 3,999$ 131,967$ % of total cost 0 -$ -$
Power $/yr/dc 1 120,000$ 120,000$ $/month 0 -$ -$
Space $/sqft/month 1000 135$ 135,000$ $/sqft/month 0 -$ -$
Other Maintenance $/yr 3 40,000$ 120,000$ $/yr 0 -$ -$
Pay-per-Use Savings (-) 0 -$ 25 8,000$ 200,000$
Total 6,413,847$ 1,637,450$
Savings 4,776,397$
9 I PERFORMANCE IS EVERYTHING
WHERE WE STARTED
Challenges • High Cost Structure
• Lack of cash to invest in new infrastructure
• Slow to respond to business needs
• Lack of Support
• Lack of talent/resources
• Language Constraints
Opportunities • Significantly reduce our cost structure
• Shift from CAPEX to OPEX model
• Create flexibility to support changing
business needs
• Add 24 X 7 Monitoring and Support
10 I PERFORMANCE IS EVERYTHING
OUR CLOUD PARTNERS
11 I PERFORMANCE IS EVERYTHING
WHERE WE ARE
Results • 90% of our IT spend is Cloud
• Completely transparent cost allocations
• Days to deploy new applications
• Built smaller, higher performance team
• Contributed 26% in IS cost reductions
which improved EBITDA by 6%
• Benefit from additional functionality with no
additional cost
• Shifted from CAPEX to OPEX model
• Created agility to support business
requirements
12 I PERFORMANCE IS EVERYTHING
DIFFERENT TYPES OF CLOUDS
» Boston Acoustic - 1979 » Allen & Heath – 1969 » Calrec – 1964
Google Apps, Salesforce.com, Netsuite,
Box, Microsoft Office 365, Bluejeans,
RightNow, etc…
Google App Engine, Force.com,
Windows Azure, LongJump, Rollbase,
Amazon Elastic Beanstalk, etc…
Amazon, EC2, Rackspace, Savvis,
Terremark, Vmware, Joyent, Datapipe,
etc...
IaaS
PaaS
SaaS
13 I PERFORMANCE IS EVERYTHING
CLOUD BENEFITS
Commodity Pricing
Capacity Bursting
Accelerated Virtualization
Deployment
Optimized Resource
Utilization
Improved Operational
Efficiency
Resource Pooling
Hardware Consolidation
VIRTUALIZATION PRIVATE CLOUD PUBLIC CLOUD
RO
I B
EN
EFIT
S
Questions?
15 I PERFORMANCE IS EVERYTHING
APPENDIX
16 I PERFORMANCE IS EVERYTHING
Growth of Internet-based digital content
Younger generation of music lovers
Growth of portable devices
Internet sales
Mature core markets
WHY NOW? OUR WORLD IS CHANGING
17 I PERFORMANCE IS EVERYTHING
S T A R T W I T H T H E C U S T O M E R
Innovation & Expansion
NEW WIRELESS MUSIC SYSTEM
18 I PERFORMANCE IS EVERYTHING
Innovation & Expansion
WIRELESS MUSIC SYSTEM
19 I PERFORMANCE IS EVERYTHING
ULTRA-THIN & WIRELESS
ACOUSTICALLY PURE
WIRELESS & COMFORTABLE HEAVY BASS
The ultimate weapon in your travel arsenal.
It’s like hearing your favorite song for the
first time.
To help you achieve your
maximum performance.
Delivering a bone-jarring, brutally-powerful bass
experience.
Innovation & Expansion
NEW HEADPHONE PRODUCT LINE
20 I PERFORMANCE IS EVERYTHING
GLOBAL PUBLIC RELATIONS
expanding our brand exposure into lifestyle media publications
21 I PERFORMANCE IS EVERYTHING
ADVERTISING CAMPAIGN - EUROPE
distinct advertising which is true to the brand character
22 I PERFORMANCE IS EVERYTHING
SOCIAL MEDIA
connecting with our fans around the world
23 I PERFORMANCE IS EVERYTHING
LOCAL MARKETING ACTIVITIES
547 MILLION People pass
through Times Square per
year
10 MILLION Viewers see live
shots of times square daily
that are nationally televised
Delivering a consistent brand message, but tailored to local market needs
Times Square in NYC
Truck billboard with the inside
transformed to a living room for the
customers’ listening enjoyment
Singapore
24 I PERFORMANCE IS EVERYTHING
PARTNERSHIPS
Leveraging partnerships to connect with a younger target market
At 35M unique visitors per month MySpace is
larger than both Pandora and Spotify
combined
Advertising featured on myspace.com
Exclusive events in LA, San Francisco and
New York
Social media tie in
Website and Radio spots during the holiday
season will generate over 12M impressions
Official headphone sponsor of the iHeart
Radio Music Festival
Tie in to iHeart’s 5M Facebook fans
VIP bag placement