Cloud computing will be entering the mainstream in 2012. Learn about the options, benefits, risks that nonprofits will face with this growing technology.

1. Cloud Computing for
Nonprofit Organizations
Joseph Scarano
February 21, 2012
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2. Protecting and Preserving the www.cjwconsulting.com
Institutional Memories of
Nonprofits Since 1993 (866) 598-0430
info@cjwconsulting.com
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3. Affordable collaborative data
management in the cloud.
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4. Today’s Speaker
Joseph Scarano
CEO,
Araize
Assisting with chat questions: Hosting:
April Hunt, Nonprofit Webinars Cheri J Weissman, CJW Consulting & Services, Inc.
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5. Joseph Scarano – CEO of Araize, providers of software solutions
to nonprofit organizations since 1985. Products include
nonprofit accounting, fund raising and payroll.

6. Topic and Objectives
 Overview of cloud computing – What is cloud
computing? What types of cloud computing may
affect your organization?
 Objectives:
• Benefits of the cloud
• Risks of the cloud
• Understanding the different types of cloud
• How is it impacting nonprofits

7. What is the Cloud?
 Cloud computing is the delivery of computing as a service
rather than a product, whereby shared resources, software,
and information are provided to computers and other
devices as a service over a network, typically the Internet.
 Cloud computing provides computation, software, data
access, and storage resources without requiring users to
know the location and other details of the computing
infrastructure.
 Focus on Applications and Services

8. Computing 360⁰
 1960s and 1970s - Mainframes and Mini Computers
 1980s and 1990s – PCs and Networks
 2000s – Internet
 2010s and beyond – Mobile Computing

9. Computing 360⁰
 Yes, Dorothy. But someone does!

10. Cloud Computing Growth
 Worldwide Cloud Computing Market is
currently $8 billion.
• 40% in the US.
• Spending on Cloud Services will increase at
annual rate of 27%.
• SaaS market will hit $14 billion by 2014.

11. Why the Cloud?
 Flexibility
 Additional Capacity
 Collaboration
 Shared Access
 Centralize Your Information
 Cost
 Security

12. Benefits of the Cloud
 Reduced Costs - Fewer IT hours required for network
setup, software installation, upgrades and maintenance.
Lower costs associated with in house server purchases and
maintenance. Lower up front costs for software purchases.
Pay as you go model, like a utility.
 Saves Time - Rapid deployment of software applications,
no need to install software and configure networks and
security. Better response time in most applications
compared to standard server and hardware.

13. Benefits of the Cloud
 Scalability - You can scale your needs seamlessly rather
than having to go out and purchase new equipment and
software.
 Convenience - Staff and volunteers can access your
applications from almost any Internet connection without
setting up VPNs, or systems to allow remote access to your
servers.
 Open Architecture -You are no longer tied to a specific
operating system, since most cloud applications will run on
all web browsers.

14. Benefits of the Cloud
 Disaster Relief - Your data will be stored in a secure data
center. You won’t have to worry about data loss from
natural or unnatural disasters.
 Security - Your data will be stored with companies that are
SAS 70 compliant. Data centers are protected by firewalls,
staffed by employees that have passed background checks
and require ID badges for access. Ultimately, much more
secure than you can ever afford.

15. Risks of the Cloud
 Loss of Connectivity - If you Internet connection goes
down, you don’t have access to your applications. If you
have a slow Internet connection, then cloud computing
probably will not work for you.
 Service Level - Make sure your provider is reputable and
provides an acceptable level of uptime and rapid response.
 Regulatory Compliance - If you require HIPAA or PCI
compliance, or other compliance, make sure your provider
is certified.

16. Types of Cloud Computing
 IaaS - Infrastructure as a service. Hardware, servers,
storage.
 PaaS – Platform as a Service - Operating systems,
database management, system monitoring.
 SaaS – Software as a Service. Software applications,
full web services.

17. How is your Nonprofit
using the Cloud now?
 Email - SaaS
 Web site - PaaS and SaaS
 Online banking - SaaS
 Off-site Backup - IaaS
 Payroll Service - SaaS
 Social Media - SaaS
 Webinars - SaaS
 eCommerce - SaaS

18. Common SaaS Applications
 Software as a Service
 Document Sharing – Google Docs, MS Office Live, Zoho
 CRM Solutions – Salesforce, eTapestry, Convio
 Accounting – NetSuite, Intaact, FastFund
 Payroll – ADP, Paychex
 Backup – Mozy, Carbonite
 Collaboration – Webex, GoToMeeting, ReadyTalk
 Social Networking – Facebook, LinkedIn, Twitter,
Google +

19. Benefits to Your Organization
 Staff can focus on what it does best – mission and
programs
 Always have the latest technology
 Fixed, predictable, measurable costs
 Reduce IT expenses
 Save on total cost of ownership
 Improve capabilities and service levels

20. Things to Consider
 More IT choices make decision making more
complicated and confusing.
 Some cloud based services are still in their early
development stages. Haven’t reached the level of
product maturity compared to products on the market
for many years.
 Other services are more mature and well developed,
such as web-hosting, conferencing and CRM.

21. Things to Consider
 Lower Barrier to Entry
 Because of the pay per user subscriber model, large scale
enterprise applications can be cost effective for small
organizations. The outright purchase of these
applications would not be cost effective.
 Total Access
 More staff and volunteers have access to the SaaS
applications.
 Fund Raising, accounting, volunteer management have
solid offerings in the cloud.

22. Things to Consider
 Software Costs
 Legacy software applications installed on computers
and networks require maintenance and upgrades.
 Migration to the cloud to replace these legacy systems
will be gradual.
 Monthly fixed fees will increase. Buying and upgrading
software costs will decrease.

23. Things to Consider
 Hardware Costs
 Hardware costs will decrease as there will be less
reliance on internal networks and servers.
 New computers will be less expensive, since most of the
computing power will be moving to the cloud.
 More money will be spent on mobile devices – smart
phones and tablets.
 Internet and telecommunication costs will increase due
to higher bandwidth requirements.

24. Economy of the Cloud
 Reduced capital costs
 Lower IT hardware costs
 Lower IT staff costs
 Higher Operational Costs
 Monthly service fees for licensed SaaS
 More reliable Internet and telecommunications

25. Evaluating a Cloud Solution
 Consider the following when selecting a vendor for a
cloud solution:
 Features
 Reliability
 Connectivity
 Security and compliance
 Backup procedures
 Ownership of data
 Costs – upfront, on-going and extras

26. Evaluating a Cloud Solution
 Service Level Agreements
 Contains performance metrics
 Problem management resolution
 Security
 Data backups
 Data ownership

27. Cloud Security
 Advantages
 External cloud data storage reduces exposure of sensitive
data
 Automated security management
 Redundancy and disaster recovery in place
 Disadvantages
 Trusting vendor
 Customer’s inability to respond to audit findings
 Indirect administrator accountability
 Loss of physical control

28. Review
 Cloud computing has a lot to offer, especially to small
nonprofits
 Cloud solutions are easier to implement, more secure
and are often greener because of reduced IT
requirements.
 Cloud solutions are not right for every organization or
software function
 Review with peers, board, staff and consultants before
deciding to reach for the clouds.

29. Cloud Computing for
Nonprofit Organizations
Joseph Scarano
Araize
joe@araize.com
www.araize.com
800 745-4037

30. Find listings for our current season
of webinars and register at:
NonprofitWebinars.com
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