Slides from the "Leaders in the Cloud" Webinar

1. Leaders in the Cloud Webinar September 16, 2010 M.R. Rangaswami – Sand Hill Group KameshPemmaraju – Sand Hill Group OtavioFreire – openQ Neil Fox – Ness Technologies 1

2. Leaders In The Cloud Identifying the Business Value of Cloud Computing for Customers and Vendors

3. About Sand Hill Group The business strategy destination for enterprise software executives 3

4. About the Authors 4

5. About the Authors 5

6. Industry-leading Advisory Board 6

7. Survey of 511 IT Execs with McKinsey and TechWeb 7

8. 40 Confidential Interviews with Cloud Leaders 8

9. 9 Nobody wants to be left behind…

10. Cloud Reality is Catching the Hype 10 Some SMB’s have 80% of services in the cloud “Compared to what we were doing before, the cloud is a giant bed of roses.” – CIO, business services company

11. Cloud Investments Set to Increase... 11 “Today we’ve got 95 percent of applications running internally and 5 percent externally. In five years, that ratio will be 80 percent internal and 20 percent external.” – CIO, Fortune 500 financial company

12. Cloud Feels Like 1997 for the Internet 12

13. Agility: #1 Driver for the Move to the Cloud 13

14. Hybrid Clouds Poised for Greatest Growth 14 “Because the [public] cloud is not going to be the answer for everything going forward, hybrid clouds are where most companies are going to live.” – CIO, electronics company

15. Workloads in the Cloud 15

16. Workload Classification... 16

17. Considerations for Workloads for the Cloud TCO Spikiness of workloads, Security, SLA, Compliance, and Regulatory requirements Longevity of resource requirements Resource Utilization Patterns Size of data sets involved Virtualization and hardware constraints 17

18. Barriers to Adoption... 18

19. Implications for Vendors Invest and plan for a long-term “true” Cloud strategy and transformation Involve IT in purchase decisions but also extend relationships beyond IT Position your products for a hybrid cloud world Do not underestimate the cultural barriers Offer more granular contracts 19 “Over the next two years, more than 50 percent of traditional IT spend – software, infrastructure, and services – will be up for grabs and rethinking, and frankly the impact on the channel will be even greater.” – Large software vendor executive

20. More Information, Assistance, and Offers Opinion editorial on SandHill.com http://sandhill.com/opinion/editorial.php?id=296 Weekly blog on cloud trends, vendors, customers, people, and solutions http://sandhill.com/opinion/daily_blog.php?id=71 Purchase Digital Enterprise License of research: Unlimited Internal Use: http://sandhill.com/research/reports.php?id=3 Additional go-to-market and lead generation: Customer webinars and events Co-branded whitepapers, podcasts, and marketing collateral Sales enablement and briefing sessions 20

21. Sample Research Customers and Consulting Clients 21

23. Cloud Computing Webinar September 16, 2010 Proposed Customer and Speaker Solution for Medtronic Vascular Latin America September 16, 2010

24. The openQ mission openQ is the expert solution provider for compliance, a partner who can lift your increasing compliance burden and get you back to work.

26. Subscription software and research capabilities in the cloud

27. Award-winning, offshore research and solution platform recognized by 4 top analyst firms

29. All infrastructure is on you

30. SLA based on your capabilities

31. All support now is on you

32. Only focus on highly generic features and configurations

33. Branch/Trunk organization

34. Build/Test/Production in the cloud

35. Cloud Architecture/Deploy on the Cloud

36. Security practice

37. Changes your revenue-recognition significantly

38. Slower GAAP revenue growth

39. Increases your EV multiple

40. No need to kill an elephant each quarter

41. Lowers service costs (a lot) – support internal customers vs. when you manage yourself

43. Articulating the value of Cloud computing in heavily regulated, compliance-driven industries Address all concerns up front: Security can be completely mitigated by following best practices SLA to minimize impact of legal issues Point to other companies in your space and early success Describe upfront your architecture

46. Standardize process for engagement globally

47. Streamline quarterly reporting and planning processes

49. Expensive internal procurement

50. Compliance a concern

52. Multiple changes to feature and reporting requirements accommodated

53. Adoption across all brands and therapeutic areasThe Cloud Solution After internal review and agreeing on SLA move to global cloud solution Fast rollout Lower overall cost Data privacy best practice adoption Faster upgrade cycle

54. Contact DetailsOtavio Freire 410 East Main Street Charlottesville, VA 22902 USA Phone: +1 434-207-4267 Email: otaviof@openq.com Web: www.openq.com

55. September 2010 Achieving Technology Leadership in the Cloud

56. Offshore Product Development Established 2001 60+ Client Labs in 5 locations throughout India and Eastern Europe Multi-shore development model 2,500 talented resources delivering 1,000 software releases per year Best Practices from every engagement are institutionalized through the Ness Tech Council and applied to new clients through Strategic Consulting Ness developed SMART Platform implements best practices workflow and metrics through unique value-added IP Ness Software Product Labs Engineering Effectiveness 33

57. It’s Very Cloudy Out There 34 Monitoring Performance Security Disaster Management Cloud Services QA Cloud Hybrid Cloud ROI Global Delivery Private Cloud Open Source Data Management Governance Cloud Broker Internationalization Quality of Service Platform Cloud Integration SLAs Architecture SaaS Data Clouds Infrastructure Regulatory Compliance Virtualization

58. Ness Cloud Assessment Clears the Air 35

59. What kind of technology does your product use? Java, C++, J2EE, .Net? Application Server, DB, 3rd Party Components, Open Source, etc. Tell us about the commercial products that you use to build your product (what license fees do you pay??) What kind of architecture does your product have – 2 tier, n tier? SOA Multi-tenant support International support (Unicode, multi-currency) Security / regulatory requirements? Geographic distribution requirements? Performance / SLA requirements? Integration needs – cloud to cloud, cloud to client, hybrid cloud? Implementation requirements? Competitive environment and customer expectations Technology acquisition strategy Some Critical Cloud Considerations Where to Begin 36

60. Ness Cloud Assessment Summary Cloud computing offers significant tangible benefits* ROI – Clients report 50% - 200% reduced costs Speed – Deliver applications in weeks, not months Innovation – Quickly design, develop and deploy many applications. Low investment makes it easy to walk away from failing efforts Significant considerations What do you need / want from the cloud? Business risk in moving / not moving to the Cloud Current technology position to achieve objectives Resources available to achieve objectives Next Steps Leverage Ness Cloud Readiness Assessment Meet with Ness Strategic Consulting Determine scope Identify stakeholders Conduct Assessment and create plan of action *Courtesy of Sandhill Inc 2010 37

61. Q & A 38 Neil Fox VP Consulting, Ness Technologies neil.fox@ness.com Thank You