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 <?xml version="1.0" encoding="ISO-8859-1" ?> <poll url="http://www.polleverywhere.com/free_text_polls/bXIQJm0PH2VhuR2"> <!-- This snippet was inserted via the PollEv Presenter app --> <!-- The presence of this snippet is used to indicate that a poll will be shown during the slideshow --> <!-- TIP: You can draw a solid, filled rectangle on your slide and the PollEv Presenter will automatically display your poll in that area. --> <!-- The PollEv Presenter app must also be running and logged in for this to work. --> <!-- To remove this, simply delete it from the notes yourself or use the PollEv Presenter to remove it for you. --> <title>What questions or comments do you have?</title> </poll>

Can you accurately calculate your A brief survey Can you accurately calculate your campus vs. cloud TCO? <?xml version="1.0" encoding="ISO-8859-1" ?> <poll url="http://www.polleverywhere.com/multiple_choice_polls/nuUy6aOBnQyScBl"> <!-- This snippet was inserted via the PollEv Presenter app --> <!-- The presence of this snippet is used to indicate that a poll will be shown during the slideshow --> <!-- TIP: You can draw a solid, filled rectangle on your slide and the PollEv Presenter will automatically display your poll in that area. --> <!-- The PollEv Presenter app must also be running and logged in for this to work. --> <!-- To remove this, simply delete it from the notes yourself or use the PollEv Presenter to remove it for you. --> <title>Can you accurately calculate your campus vs. cloud TCO?</title> </poll>

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

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

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

What is TCO? From Wikipedia: “A financial estimate intended to help buyers and owners determine the direct and indirect costs of a product or system.” 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 Vendor-specific Guidance is too high level Models are not flexible Qualitative and risk factors not considered Not generally applicable to higher education 22333

Can you accurately calculate your A brief survey Can you accurately calculate your campus vs. cloud TCO? <?xml version="1.0" encoding="ISO-8859-1" ?> <poll url="http://www.polleverywhere.com/multiple_choice_polls/nuUy6aOBnQyScBl"> <!-- This snippet was inserted via the PollEv Presenter app --> <!-- The presence of this snippet is used to indicate that a poll will be shown during the slideshow --> <!-- TIP: You can draw a solid, filled rectangle on your slide and the PollEv Presenter will automatically display your poll in that area. --> <!-- The PollEv Presenter app must also be running and logged in for this to work. --> <!-- To remove this, simply delete it from the notes yourself or use the PollEv Presenter to remove it for you. --> <title>Can you accurately calculate your campus vs. cloud TCO?</title> </poll>

ECAR-TCO for Cloud Workgroup EDUCAUSE sponsored the ECAR-TCO for Cloud Workgroup in late 2013 16 members of the higher education community representing: IT Finance Contracts & Licensing Research Project Management Industry and community representation Microsoft Azure & Amazon Web Services Internet2 Gartner 22333

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

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

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

Objective 3: Outline Use Cases Outline common use cases that apply to the business of higher education 4-6 common use cases Research Teaching and learning Administration Suggest a use case! http://qrs.ly/9s3se2v 22333

Objective 4: Develop a Framework Develop a TCO framework that will serve as a useful tool for campus decision-making Based on use cases Broad applicability across higher education 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 Negotiation Procurement, legal, risk staff $ Service level agreements Implementation Initial volume/usage fees Migration cost Transition Process redesign End user training Ongoing Mgmt Local CAPEX/OPEX costs Cloud OPEX costs 22333

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

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

Questions & comments <?xml version="1.0" encoding="ISO-8859-1" ?> <poll url="http://www.polleverywhere.com/free_text_polls/bXIQJm0PH2VhuR2"> <!-- This snippet was inserted via the PollEv Presenter app --> <!-- The presence of this snippet is used to indicate that a poll will be shown during the slideshow --> <!-- TIP: You can draw a solid, filled rectangle on your slide and the PollEv Presenter will automatically display your poll in that area. --> <!-- The PollEv Presenter app must also be running and logged in for this to work. --> <!-- To remove this, simply delete it from the notes yourself or use the PollEv Presenter to remove it for you. --> <title>What questions or comments do you have?</title> </poll>

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