ECAR Total Cost of Ownership for Cloud Services

+ ECAR Total Cost of Ownership for Cloud Services Working Group Summary and Timeline Gabriel Youtsey, University of California, Davis January 29, 2014 • Tempe, AZ

+ Submit questions & comments Text ECARTCO to number 22333

+ A brief survey Can you accurately calculate your campus vs. cloud TCO?

+ Cloud: promise and challenge n Lower cost and better service n Cannot accurately compare costs n Faster deployment n More trust placed in vendors n Eliminate upgrades (Saa. S) n n More business focus More control shifted to vendors (Saa. S) n Immediate scalability n Requires new skills to manage 22333

+ CIOs are concerned about TCO A 2012 global study on cloud computing revealed: n 79% of companies are concerned about the hidden costs of cloud services for their applications n Areas of hidden cost due to performance concern include: n Loss of revenue n Damage to reputation n Weakened customer relationships n Reduced productivity 22333

+ Hidden subsidies in higher education n An initial study by University of Washington in 2012 highlighted higher education hidden subsidies n Power n Cooling n Space n Labor (staff or student) 22333

+ What is TCO? n From Wikipedia: “A financial estimate intended to help buyers and owners determine the direct and indirect costs of a product or system. ” n Our revision: “A financial estimate intended to help campus IT and administrative leaders determine the quantitative and qualitative costs and risks of various cloud and campus alternatives. ” 22333

+ Problem with today’s TCO models n Vendor-specific n Guidance is too high level n Models are not flexible n Qualitative and risk factors not considered n Not generally applicable to higher education 22333

+ A brief survey Can you accurately calculate your campus vs. cloud TCO?

+ ECAR-TCO for Cloud Workgroup n EDUCAUSE sponsored the ECAR-TCO for Cloud Workgroup in late 2013 n 16 members of the higher education community representing: n n n IT Finance Contracts & Licensing Research Project Management Industry and community representation n Microsoft Azure & Amazon Web Services Internet 2 Gartner 22333

+ ECAR TCO Objectives n Set the context n Identify cloud models n Outline use cases n Develop a framework Must be a useful tool for campuses to make actual decisions about various cloud alternatives 22333

+ Objective 1: Set the Context n Provide a narrative that sets the context for the unique needs and circumstances for higher education n Build on the University of Washington study n Help campus community, partners, and vendors better understand campus cloud needs and challenges 22333

+ Objective 2: Identify Cloud Models n Identify service and deployment models for cloud computing that are most interesting to higher education n Public cloud n Hybrid cloud n Community cloud n Private cloud 22333

+ Objective 3: Outline Use Cases n Outline common use cases that apply to the business of higher education n 4 -6 common use cases n Research n Teaching and learning n Administration n Suggest a use case! http: //qrs. ly/9 s 3 se 2 v 22333

+ Objective 4: Develop a Framework n Develop a TCO framework that will serve as a useful tool for campus decision-making n Based on use cases n Broad applicability across higher education n Must be useful for calculating TCO for both campus and cloud models 22333

+ A look at the framework Phase Factor Current Local Cloud Investigation Scalability and capacity Low Med High Elasticity Low High Procurement, legal, risk staff $ $ $ Service level agreements Low High Initial volume/usage fees $ $ $ Migration cost $ $ $ Process redesign $ $ $ End user training $ $ $ Local CAPEX/OPEX costs $ $ $ Cloud OPEX costs $ $ $ Negotiation Implementation Transition Ongoing Mgmt 22333

+ Objective 5: Model Maturity n Provide information about the relative maturity of various cloud models and strategies n Qualitative factors to consider for each cloud model n Should help inform risk n Intangible costs that must be considered 22333

+ ECAR TCO Timeline n November 2013 – Group formed n November 2013 – March 2014 - Fieldwork n March 2014 – Draft report n May 2014 – Report published for ECAR subscribers n October 2014 – Report fully public n October 2014 – Presentation at 2014 EDUCAUSE Conference 22333

+ Questions & comments

+ Thank you! Find out more: http: //www. educause. edu/ecar-working-groups/total -cost-ownership-cloud-services-working-group Reach out to the group: ECARWG@educause. edu