Enterprise IT Solution Topic Series Cloud Computing – Week 2

1. Enterprise IT Solution Topic SeriesCloud Computing – Week 2 Travis Greene Erin Quill Senior Product Marketing Manager Sales Enablement Specialist Travis.Greene@netiq.comequill@netiq.com Sep. 17, 2012

2. Situational Fluency Successful conversations with existing and potential customers are founded on your ability to show understanding of the world they live in, the business issues they face, and the ability to speak their language. This enablement series focuses on how to ensure your conversations on Cloud Computing are credible. 36% of Business Leaders indicate that conversations they have with sales reps are of value to them. Our goal is to enable Customer-centric conversations, conversations focused on their issues and priorities

3. Solution Topic Webcast Series • Selling is about enabling the customer to solve business problems and meet business priorities, not selling the virtues of a product • Sales Enablement Webcasts are going to focus on the top Business/Enterprise IT topics organizations are wrestling with • Topics • Cloud, Consumerization of IT/BYOD, Big Data, Business Interactions (B2x), and Business Continuity/ Disaster Recovery • September – The Cloud • Sep 10 and 17 – What is the Cloud? Why all the hype? Business Concerns and Challenges, and engaging in business discovery • Sep 24 and Oct 1 – Scenarios on how and where NetIQ products help customers address their pains and meet priorities • On-demand Deliverables in October

4. Today’s Agenda • Problem Recap • Market Segmentation and Case Studies • Size • Industry • Business Discovery • Qualifying questions • Conversation starters • Role play • Summary • Q&A

5. Problem Recap

6. Why compute in the Cloud? • Before Cloud Computing: • Difficult to provision just the right amount of computing resources • IT takes too long to provision resources • Lack of transparency into costs of IT services • Cost prohibitive access to IT services • Benefits of Cloud Computing: • Elasticity (scalability up and down) • Pay only for what you use, and know the total cost up-front • Provider takes care of infrastructure and application management • Access information and services from multiple devices or platforms, anywhere (as long as Internet is available)

7. Who to talk to

8. Market Segmentation by Size The topic of Cloud is relevant to all industry verticals in every size company. But benefits may vary: • Large Enterprise and Federal: the top benefit is agility - the ability to more rapidly provision new IT services than is possible with traditional internal IT processes • Mid-Market: the top benefit is efficiency - improved asset utilization due to the “elastic” nature of cloud computing • SMB: the top benefit is innovation - the ability to use IT services internally and provide them to customers that would otherwise be out of reach • Ask your customer if they agree with these assertions – a healthy debate could uncover opportunity

9. Market Segmentation by Vertical:Federal Government • “The cloud computing model can significantly help agencies grappling with the need to provide highly reliable, innovative services quickly despite resource constraints” – VivekKundra, U.S. CIO • “An estimated $20 billion of the Federal Government’s $80 billion in IT spending is a potential target for migration to cloud solutions” • Case Study: • The Defense Information Systems Agency (DISA) supports US and coalition fighting forces. • To better meet their needs, DISA decided to deploy its own IaaS solution called Rapid Access Computing Environment (RACE) • Using traditional infrastructure, provisioning a dedicated server environment required 3 to 6 weeks. With RACE, the time required to provision functional service space for users is now 24 hours. • For more details and case studies, see: http://www.cio.gov/documents/federal-cloud-computing-strategy.pdf

10. Market Segmentation by Vertical:Healthcare • Cloud computing is an ideal solution for an industry that prefers targeted services rather than big investments in “sunk costs” for internal IT, but privacy issues remain. • Case Study: • Cook Children’s Healthcare System in Fort Worth, Texas is pursuing cloud-based electronic health records • “The difference is there’s no significant upfront investment with cloud. What I like about CareCloud is if they’re not working for you, you can move on; you don’t have a huge sunken cost,” says Ryan Champlin, VP of Operations. “The question is: who is going to produce better health for a given dollar? I bet my money it’s cloud.” http://www.forbes.com/sites/zinamoukheiber/2012/06/11/can-cloud-computing-take-on-the-health-care-establishment/

11. Market Segmentation by Vertical:Financial • Some resistance to the cloud due to risks, but the benefits can be had with private, hybrid and community clouds, and banks like ING and Deutsche Bank are building these • Case Study: • “ING Bank’s project involves building a large hybrid cloud that combines features of public clouds and private data centers, one it will open to other banks to use. The hybrid or shared IT infrastructure will achieve the variable costs, scalability, flexibility, and on-demand availability offered by public cloud computing in a way that addresses the security, compliance and performance requirements banks adhere to in their internal clouds.” http://www.cloudave.com/16149/banking-sector-gets-more-comfortable-with-cloud/

12. Market Segmentation by Vertical:Retail • Time to market and scalability (up and down) are critical concerns of companies selling to finicky consumers. The inherent elasticity and agility of cloud computing is compelling. • Case Study: • WalMart selected SuccessFactors (an SAP company) for a 2.1M seat SaaS HR Management platform • Drivers for selection included the scalability to deliver across multiple geographies for large numbers of customers and the shortened timeframe for implementation vs. traditional IT http://www.informationweek.com/news/global-cio/interviews/224700586

13. Market Segmentation by Vertical:Manufacturing • This industry has applied information technology to supply chain management – a benefit of cloud computing is the opportunity to expand communication between sales, suppliers and operations • Case Study: • Andersen Windows and Doors needed to populate Salesforce CRM with customer master data (Customer Care) as well as supplemental data from 4 other sources (Oracle, SQL Server, Flat File) • Used a cloud service from Informatica to integrate the data • Now has external customer reporting from Salesforce and back office systems available in the corporate Data Warehouse for one view across sales, operations and suppliers http://www.informaticacloud.com/customers/106-andersen-windows.html

14. Market Segmentation by Vertical:Service Providers • Most service providers are joining the cloud computing gold rush. They are well-positioned for this role, but like internal IT organizations, are threatened by cloud providers competing for their business. So not only do they have advantages, but they must adapt to stay relevant. • Case Study: • NetIQ AppManager customer Terremark leveraged its market leadership in IaaS offerings to acquisition by Verizon Business, itself an MSP customer of NetIQ AppManager

15. Business DiscoveryStarting the Conversation

16. Conversation Starters • What sort of cloud initiatives do you have this year? • What’s your primary driver for using cloud services? • What is driving your choice in using a private cloud? (if applicable) • How would you measure the success of your cloud initiative(s)? • What’s preventing you from achieving that success? • What risks have you had to consider when moving services to the cloud? • How are you provisioning/deprovisioning access to the cloud? • Does that apply to partners and customers? • Are users going to the cloud outside of your control? • How are you tracking compliance of access? • Do you know if your data in the cloud is secure?

17. Role Play – Large Bank • A NetIQ Account Manager speaking with the VP of Infrastructure and Operations • Bank is currently a customer of NetIQ AppManager but no other NetIQ products • Account Manager is new to the account and is establishing a rapport with the customer

18. Conversation “Grabbers” • Shadow IT – the cloud services that the business buys directly, typically from SaaS providers, without any knowledge or involvement from IT • Living with a false sense of security – the presumption, usually of PaaS or IaaS providers, that more services for disaster recovery, security and compliance are being provided than actually are • IT as a service broker – the concept that IT can act as a fulfillment house for services, whether provided by the IT organization or externally by cloud providers, for the purpose of ensuring security, compliance and service levels

19. Role Play - Hospital • A NetIQ Account Manager speaking with the CIO • You know they have already selected an Electronic Health Records (EHR) provider with a SaaS offering • You want to know what sort of opportunities that might present, but you know very little about EHRs

20. SummaryWhy You Should Care

21. Why You Need to Understand the Topic of Cloud • Cloud is a disruptive technology to the way IT services are being delivered • Business and government organizations of all sizes and verticals are adopting cloud computing, although for multiple reasons • Leverage grabbers such as “Shadow IT” “Living with a false sense of security” and “IT as a service broker” to engage in conversations • Your customers are struggling with how to address cloud computing – help them and become a trusted advisor

22. Enablement Wrap-Up

23. Enablement Roadmap • Upcoming Enablement Webcasts • Monday, Sept 24: Cloud Session #3: The Value of NetIQ ITOM Solutions in and with the Cloud • Monday, Oct 1: Cloud Session #4: The Value of NetIQ ISG Solutions in and with the Cloud • Monday, Oct 8: Access Governance Suite 6.1 • On-demand Deliverables • Conversation Cards: October • Sales Conversation Guides: October • On-demand Curriculum: November • NetIQ U • EMEA: October 9-11, Munich / North America: October 22-24, Provo

24. Questions?