Collaboration in the Cloud

1. Collaboration in the Cloud An Exploration of Cloud Applications in Vertical Industries Date: May 4th, 2011

2. Infrastructure as a Service: Compute, storage, network, and operations resources Software as a Service:On-demand use of software Platform as a Service: Tools and environments to build applications and services Running head Cloud Computing is the Cost-Saving, Scalable Platform of the Future Project Blue Sky was undertaken to double the revenue of the cloud computing business in 10 years As Deloitte consultants, we were asked to conduct a week-long assessment of the cloud computing market and make recommendations on the most attractive industry vertical The Three Types of Cloud Computing:

3. Running head Industry Ratings & Analysis Arts & Entertainment Retail Life Sciences Government • Time to Implementation: 4 • Somewhat Integrated already; Moderate awareness • Market Growth Rate: 4 • 7.4% • Risk Tolerance: 4 • Mid/Low Information Sensitivity • Decentralization: 3 • Combo of Sm & Lg companies • % Change in IT Spending: 4 • 4.2% • Time to Implementation: 5 • High awareness & cloud integration intentions • Market Growth Rate: 5 • 10.3% • Risk Tolerance: 3 • Moderate Information Sensitivity • Decentralization: 5 • Many players involved • % Change in IT Spending: 3 • 3.4% • Time to Implementation: 2 • Policy Restraints • Market Growth Rate: 1 • 3% • Risk Tolerance: 1 • High Information Sensitivity • Decentralization: 1 • One main player • % Change in IT Spending: 1 • 1.1% • Time to Implementation: 2 • Lack of Infrastructure • Market Growth Rate: 3 • 6 % • Risk Tolerance: 5 • Moderate Information Sensitivity • Decentralization: 5 • Many players involved • % Change in IT Spending: 4 • 3.4% • AVERAGE: 1.2 • AVERAGE: 3.8 • AVERAGE: 3.8 • AVERAGE: 4.2 Despite the existence of many attractive markets, Life Sciences emerged as the industry with the most promising opportunities for your company Sources: Gartner: 2011 Top IaaS predictions, 2011.; Deloitte: Choices and Capabilities in Life Sciences, 2011.; Deloitte: Future of the Life Sciences Industry, 2009.; IBM: The Wisdom of the Cloud, 2011.; HP: Cloud Computing in the Media & Entertainment Industry, 2011.; US CIO: Federal Cloud Computing Strategy.; Forrester: Industry Innovation in Retail, 2011.

4. Running head Life Sciences is an Industry with Growing Demand for Cloud Computing and Many Unmet Customer Needs Implicit industry trends that drive the need for cloud computing • Rising demand for clinical trials and trial research • Push for faster development of drugs • Growing market for advanced drugs • Increase in outsourcing of company functions to global locations Explicit needs for cloud computing within Life Sciences • Need for large amounts of data storage • Need to reduce costs • Need for continuous innovation Changing Landscape within Life Sciences • Industry consolidation • Mergers and acquisitions across the industry • Entrance into new markets Soucre: Deloitte Life Sciences White Papers

5. Development Tool Collaboration Analytics Running head Application of the Cloud Within the Life Sciences Industry Utilizes IaaS • Specific application example: • Computing a large quantity of data, such as DNA, with more speed and efficiency • Benefits Derived: • Ease in modeling and simulation • Analyzing clinical trials • Computational research and testing Utilizes IaaS • Specific application example: • Accessing research data from a different organization and collaborating • Benefits Derived: • Research partnering • Clinical trial partnering • Joint sales and marketing Utilizes PaaS • Benefits Derived: • User acceptance testing • Large system stress testing Utilizing the Cloud Sources: IBM Global Business ServicesThe Wisdom of the Cloud 2010

6. Running head Application of the Cloud: Top-down Industry Model R&D Manufacture Design Distribution How can the cloud help the Life Science industry as a whole? • Create a communication channel between • Consumers and R&D • Marketing and R&D Examples of cloud usage in this vertical model. • A web application for consumers to interact with pharmaceutical companies • Provide feedback, product ideas, concerns, etc. • A web application for doctors to submit patient data and prescription information Consumer Source: Rhodes, John, and Dean Arnold. "The Future of the Life Sciences Industries: Transformation amid Rising Risk." (March 2009). Web.

7. Running head Positioning The Company & Services: “We Have a Prescription for You!” Campaign 1 Sales Team Education Educate our sales team about the: • Life Sciences industry as a whole • Specific customer needs within the industry • Tangible and intangible benefits of cloud computing within this industry Raise Awareness and Build Brand Loyalty through: • Ads in Biotech/ Pharmaceutical magazines • Sponsorship of a Symposium Set Goals for the Sales Team • Quotas for partnerships • Hosting workshops • Attending marketing events Promote Specific Benefits through: • Direct Personal Selling to larger companies • Participating in product showcases among large companies 2 Launch Marketing Campaign Proposed Company Revenue Model

8. Running head Risks of Entering the Life Sciences Market and Ways to Mitigate Them Sensitivity of Info Conflicts of Interest Transparency Lack of Awareness Present: 2011 Year 2: 2013 Header: 2014 Year 1: 2012 Sales team educates client on how entire aspect of the cloud works • Support Team Education and awareness program through sales team • Elements of Cloud Computing • Security Guarantee • Warranty/Insurance Deloitte white paper studies show R&D collaboration is favorable • Optimization of: • Focus • Cost • Flexibility Making specific benefits of the cloud clear to the industry • Personal Selling • Scientific Magazines • Biotech magazines • Symposium Sponsorships Timeline of Project BlueSky Training of Sales Team Goal Setting for Sales Team Launch of Marketing Campaign to Raise Awareness & Increase Brand Loyalty Implementation of Collaboration and Analytics within the Industry ( Iaas) Implementation of the Development Tool (Paas) International Expansion Re-evaluation

9. Full Cloud Computing Integration in a Vertical Market Innovation Cost Reduction Data Storage Running head 1 2 Life Sciences presents an opportunity to vertically integrate because of the unmet customer needs within the market Collaboration Because of Implicit Industry trends towards the cloud, the following applications can be used 2 Analytics 3 Development We can use these three applications to tighten the linkages within the industry from R & D all the way to Consumer with a top- down cloud computing approach 2 1 By the successful implementation of cloud computing within the attractive Life Sciences vertical market, we will be able to double revenues of the company within the next ten years Launch Marketing Campaign Sales Team Education OPERATIONS WITHIN THE COMPANY

10. Main Presentation Analysis of the Cloud Computing Industry Today Industry Ratings and Analysis Defining the Life Sciences Industry Demands and Needs for Cloud Computing Within Life Sciences Applications of the Cloud Within Life Sciences Application of the Cloud: Top Down Industry Model Positioning the Company and Services Risks and Mitigation / Timeline Conclusion Appendix Items Industry Analysis Metrics SWOT Analysis of the Company Major Players in Cloud Computing Major Life Sciences Companies Marketing and Raising Awareness Project Life Cycle Projected Costs of Positioning Company Strategically Questions?

11. Running head SWOT Analysis of Company Strengths • Industry-specific know how for various vertical markets is lacking • Corporate Strategy in relation to expansion is not clearly outlined • Integration in to attractive vertical markets • Expansion of sales strategy • Expansion of industry-specific employee training & Education • Privacy/ Sensitivity of Information • Initial hesitance to Collaborate because of perceived conflicts of interest • Transparency within the Industry • Existing Sales Infrastructure • Existing Brand Awareness • Pioneered IaaS within the cloud computing industry • Expansion of brand awareness strategies • Offering innovative applications of cloud computing within Life Sciences • Eventual international expansion • Brand Awareness within a specific industry Bullet • Separate costs will be incurred for each market entered due to varying industry-specific information • Strong presence in the cloud computing market • Resources Allocated for Project Blue Sky • Constantly looking for innovative strategies Weaknesses Opportunities Threats

12. Running head Industry Analysis Metrics Time to Implementation Market Growth Rate The projected time it will take for an industry to integrate at a desirable level. • Ranking 1 to 5 • 5 being ideal ( shorter time to implementation) • 1 being not ideal (longer time to implementation) The rate at which the market is projected to grow • Ranking 1 to 5 • 5 being ideal (high market growth rate) • 1 being not ideal (low market growth rate) Decentralization is classified by the number of players within an industry. More players results in a more decentralized industry. • Ranking 1 to 5 • 5 being ideal (Greater levels of decentralization) • 1 being not ideal (lower levels of decentralization The amount of risk an industry would be willing to take on. High Risk Tolerance signifies a greater willingness to take on risk. • Ranking 1 to 5 • 5 being ideal (high risk tolerance) • 1 being not ideal (low risk tolerance Projected percent change in amount of IT spending within each industry from 2010 to 2011 • Ranking 1 to 5 • 5 being ideal (high % change in IT spending) • 1 being not ideal (low % change in IT spending) Decentralization of Industry Percent Change in IT Spending Risk Tolerance

13. Running head Major Players in Cloud Computing Infrastructure as a Service Amazon Web Services • Amazon Elastic Compute Cloud • Dependable • Flexible Microsoft Azure • Focus on development not infrastructure • Build applications in several different programming languages Salesforce.com • CRM application • Worlds #1 sales application RackSpace • Highly Scalable • Excellent Support Google AppEngine • Run web applications on Google’s infrastructure • No Hassel when building new web apps. • Free for small web applications Workday • Complete Suite of Business Management Services • Human Capital Resources • Payroll • Financial Management Platform as a Service Software as a Service

14. Running head Major Life Science Companies Source: Fortune Magazine 2009 Source: Hoovers.com

15. 1 4 2 5 3 Running head Marketing: Raising awareness and Helping Improve Operations • Who to target? • Key decision makers in companies • Science Daily • Biotech Magazines • Bullet • Dash • Subbullet • What channels of media to use? • Sponsorship of symposiums • Magazine Ads • Product show booths • Bullet • Dash • Subbullet • What is the reach of media channels? • Science Magazines • 1,000,000 • Sponsorship of symposiums • 1,000 • Product show booths • 5,000

16. Promotion Product Running head Product Life Cycle: Determining the State of the Current Market • Target industries heavy in R&D primarily and manufacturing • Distribution • Channels added as cloud computing grows and demand increases Life Sciences Life Cycle Stage • Cloud computing services will target R&D firms primarily, but expand services as market grows • Cloud Computing • IaaS/SaaS and PaaS offered • Increasing service opportunities from IaaS/SaaS to PaaS • Warranties and support services • Life Sciences as an industry is growing at a 10% rate • Focus should be on building brand preference and maximize market share

17. Running head Projected Costs for Strategic Positioning of Cloud Computing Within Life Sciences Projected Costs for Implementing Strategy Key Cost Assumptions (in millions) • 2010 Business Division Comparable Revenue (MSFT) - $18642 • 2010 Expected Sales and Marketing Expense - $3914.82 • Sales and Marketing as Percent of Revenue – 21% • Expected Push in Sales and Marketing First Year - 2.50% • Percentage Growth Per Year - 1% • Time to Action for 2011 – 6 months Key Assumptions About Cloud Computing Company • Major player in the industry comparable to Microsoft Corporation or Amazon • Proposed changes reflect current activities of the Microsoft Corporation Business Division Revenue Classification of Sales and Marketing Expenses • Sales and marketing expenses include payroll, employee benefits, and other headcount-related expenses associated with sales and marketing personnel and the costs of advertising, promotions, tradeshows, seminars, and other programs Amount in Dollars (in millions) Sales and Marketing Expenses Source: Microsoft Corporation 2010 10-K Report