In a Cloud or on a Server? Translation Technology What’s Best for Your Company?

David Canek, CEO, MemSource David is the founder & CEO of MemSource Technologies MemSource provides translation software that is powerful and easy to use

Mark Tapling CEO, SDL Language Technologies SDL LangTech maintains a portfolio of software technologies supporting quality and productivity in human language translations –Products range from desktop productivity to tools for individual translators, translation memory and workflow for small or large groups working collaboratively, to high speed statistical engines for large volume requirements. –Product line is both premise and cloud based with a mix of perpetual and subscription licensing models Serial CEO in Technology sector in both public and private companies –SDL, Language Weaver, InfoGenesis, Everypath, ServiceWare

Industry Trends 2008 economic downturn and associated cost control measures has further anchored subscription licensing models Diminished customer appetite for large cap ex approvals and extended deployment cycles –Customer desire for variable cost licensing alternatives Customers expect fast enhancement responses for defects and industry advances Technical complexity of product requirements on ramping –Product cycles turning more quickly

Working Definitions for Conversation Premise Cloud –Internal premise based networks implementing web protocols Private Cloud –Your organization’s private and secure instance of an application running on somebody else’s infrastructure Cloud Application –Multi-tenant application providing access to a common set of solution features Perpetual license fee –Large up front fee, with optional maintenance paid annually Subscription pricing –Variable cost fee for private applications hosted in premise or private cloud SaaS pricing –Variable subscription fee for access to a common application infrastructure running a single solution instance ; supporting the complete customer base

Battle of the Cloud Why Cloud? –Fast to deploy –Low cost of entry –No obligation to procure or maintain infrastructure –Access to unique application solution capability –Can afford more software in this model –Applications are kept current with frequent release drops/pain free upgrades Why not Cloud? –Security Concerns –Won’t work: Unique requirement for integration to legacy data, customization or solution extension –Regulatory requirement –Large current investment in premise based network that has to be amortized

How do we decide when to embrace the cloud, and how? Value for money Security Pricing - One-off investments or monthly subscriptions Integration with other tools Support scenarios Agree on the cloud but maybe not how we go about it... –What is the cloud, is it a private/closed cloud, is it open (within the realm of an LSP or industry wide). –Why now, why push to the cloud now

What does the cloud mean for translation workflow? The cloud is great for control freaks LSPs can monitor translator activities in real- time (progress, translation quality...) Translation project attributes cannot be manipulated by translator (translation memory, machine translation and other project settings...)

What does the cloud mean for the translation industry? The cloud is a game changer primarily for the small and medium-sized translation vendors, which means for the most of our industry The cloud makes it possible for even the smallest LSP to get the latest server-based technology; this was previously reserved only to big MLVs

How will the cloud affect the different players? MLVs: They will have already licensed legacy server technologies; the impact may not be huge SLVs, Freelancers: Possibly a major impact; their efficiency and online collaboration capabilities can be significantly boosted by the cloud Buyers: Could the cloud introduce a process of disintermediation into our industry? What if buyers could buy directly from freelancers/SLVs via the cloud?

Discussion Questions By definition successful technologies are described as disruptive. –What do we want to disrupt? –What do we want to preserve? What business models are at risk? How do we manage the transition? What new business models can be enabled via cloud computing?

Discussion Questions Who loses work in a cloud computing environment? Where are they trained to go? Is a cloud decision always win/lose? Is there a win/win? Should the emphasis on cloud be simple cost displacement to make translations less expensive, translate more content, or grow our industry at the top and bottom lines?

Questions for Discussion Who has a cloud nightmare to share? Who has a cloud win to share?