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How Much Does It Cost For
Dynamics In the Cloud?
Presenters: Greg Pierce and Rob Curls
Todays Presenter
Greg Pierce
 Chief Cloud Officer, Concerto Cloud
Services
 Pioneer in Enterprise Cloud Computing
 Veteran business leader and entrepreneur
with over 20 years experience
 Helps businesses transform through the use
of disruptive technologies
 The Cloud Today and
Tomorrow
 Key Points When Evaluating
Cloud Options
 Accurately Modeling Cost
Options for Microsoft
Dynamics
 Q&A
Todays Presenter
Rob Curls
 Business Solutions Consultant,
Concerto Cloud Services
 Over 15 years consulting experience
including working for Microsoft and in highly
regulated industries such as healthcare and
government
 Specialties include Microsoft Dynamics,
Modern DataCenter, Windows Azure,
Microsoft Exchange Server, Active Directory,
Hyper-V, and High Availability Solutions with
Evaluating Cloud Options
Public vs. Private
Multi-Tenant Single-Tenant
 Customizable To Meet Unique
Needs
 No Shared Instances
 Can Meet Higher Security and
Compliance Requirements
 Can Control Upgrades and
Administration
 Limited Ability To Customize
 Commodity Servers &
Infrastructure
 No Control Over Upgrades
 Lower Costs
Choosing the Right Cloud Type
 Systems of Record
 Must be secure, accurate and organized for
the data it holds
 Best served in private cloud environments
 Systems of Engagement
 Must be easy to use and engaging for users
 Best served in highly-available public cloud
environments
Components of a
Cloud Cost Comparison
The Real Deal with SLAs
 How critical are your workloads?
 What makes up availability?
 An ounce of prevention
Site Resiliency
Site Resiliency and
Geo-Redundancy are not
automatically included in
many cloud offerings.
Bandwidth
Licensing Options and Cost Impacts
 SaaS
 SPL
A
 IaaS
Infrastructure Management
Dynamics TCO Analysis
Dynamics GP / SL TCO
 Users: 10
 Production Environment:
 Remote Desktop Server
 SQL Database Server
 IIS Server for Web Client
 Dedicated Test Environment
Dynamics GP / SL TCO On-Premise
Item Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCO
Software
Dynamics GP Starter Pack (Includes 3 Full User CALs) 0 $5,000 $0 $0 $0 $0
Dynamics GP Full User CAL 0 $3,000 $0 $0 $0 $0
Dynamics GP Limited User CAL 0 $600 $0 $0 $0 $0
Dynamics Collection Management 0 $3,500 $0 $0 $0 $0
Dynamics Extended Pack 0 $10,000 $0 $0 $0 $0
Dynamics Customization Pack 0 $6,000 $0 $0 $0 $0
Dynamics SmartList Builder Pack 0 $2,000 $0 $0 $0 $0
Dynamics Extended Human Resources and Payroll 0 $7,000 $0 $0 $0 $0
CRM Enterprise Server, 1 included in BRL 0 $5,000 $0 $0 $0 $0
CRM Full User Client Access License 0 $1,000 $0 $0 $0 $0
SQL CALs (Standard) 0 $110 $0 $0 $0 $0
Maintenance and Support
GP Maintenance and Application Support 25% $0 $0 $0 $0 $0
CRM Maintenance and Application Support 25% $0 $0 $0 $0 $0
Hardware
(1)
Servers 9
Server Environment 9 $3,000 $27,000 $0 $0 $27,000
CRM Server 0 $5,500 $0 $0 $0 $0
Hardware Set Up 72 $175 $12,600 $0 $0 $12,600
Hardware Support 5.0% $1,350 $1,350 $1,350 $4,050
Server OS & Server Software
Number of Servers Required 9
Average Useful Life (3 Years or 5 Years) 9
Average Purchase Price for Required OS & Software $696 $6,264 $0 $0 $6,264
Average Annual Software Assurance & Maintenance/Support $430 $3,870 $3,870 $3,870 $11,610
Other Hardware
Facility (1)
Data Center Space $425 /yr/server $3,825 $3,825 $3,825 $11,475
Power and Cooling $739 /yr/server $6,647 $6,647 $6,647 $19,942
Bandwidth $250 /1Mb/month $3,000 $3,000 $3,000 $9,000
Technology to Duplicate Environment
Labor (1)
Labor rate increase 5%
Labor (Infrastructure Support)
Labor Rate (with annual rate increase after year 1) $60.65
Provisioning 13.90 Hrs/Svr/Mo $7,587 $0 $0 $7,587
Ongoing 4.00 Hrs/Svr/Mo $26,201 $27,511 $28,886 $82,598
Change Management 1.52 Hrs/Svr/Mo $9,934 $10,431 $10,953 $31,318
Off Hours Monitoring and Support $100.00 1 $100 $100 $100 $300
Total $108,379 $56,734 $58,631 $223,744
(1)
Source of cost information: Gartner 2015
Dynamics GP / SL Managed Cloud
Item Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCO
Software
Dynamics GP Advance Management BRL - - Included in Concerto Cloud Services Contract - -
SQL CALs - - Included in Concerto Cloud Services Contract - -
Implementation and Support
GP Maintenance - - Included in Concerto Cloud Services Contract - -
SQL Annual Maintenance - - Included in Concerto Cloud Services Contract - -
Hardware
Single Servers Environment - - Included in Concerto Cloud Services Contract - -
Hardware Set Up - - Included in Concerto Cloud Services Contract - -
Hardware Support - - Included in Concerto Cloud Services Contract - -
Concerto Cloud Services Set-up Fee
Concerto Cloud Set up Fee 1 $3,560 $3,560
Concerto Cloud Services Contract (Full Hosting and Support)
Concerto Cloud Services Contract (3 Year Commitment) 12 $2,887 $34,645 $34,645 $34,645 $103,936
Total $38,205 $34,645 $34,645 $107,496
Comparison: GP Cloud vs On-Premise
Total On Premise $108,379 $56,734 $58,631 $223,744
Total Cloud $38,205 $34,645 $34,645 $107,496
Total Cost Savings (Concerto Cloud vs. On Premise) $70,173 $22,089 $23,986 $116,248
Future Value of Cash Savings in Year 3 $83,578 $24,819 $25,425 $133,822
Cost of Capital (2)
6% 3 2 1
Dynamics AX / NAV TCO
 Users: 25
 Production Environment:
 Remote Desktop Services Server
 AX Object Server
 Management Reporter
 SQL Database Server
 SSRS Server
 Pre-Production Environment:
 Remote Desktop Services Server
 AX Object Server
 Management Reporter
 SQL Database Server
 SSRS Server
Dynamics AX / NAV TCO On-Premise
Item Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCO
Software
Dynamics AX Advance Management BRL 0 $3,500 $0 $0 $0 $0
CRM Enterprise Server, 1 included in BRL 0 $800 $0 $0 $0 $0
CRM Full User Client Access License 0 $0 $0 $0 $0 $0
SQL CALs 0 $0 $0 $0 $0 $0
Implementation, Maintenance, and Support
Implementation Services Hours 0 $0 $0 $0 $0 $0
AX Maintenance 16% $0 $0 $0 $0 $0
CRM Maintenance 16%
Hardware
(1)
Servers 15
Server Environment 15 $3,000 $45,000 $0 $0 $45,000
CRM Server $0
Hardware Set Up 60 $175 $10,500 $0 $0 $10,500
Hardware Support 5.0% $2,250 $2,250 $2,250 $6,750
Server OS & Server Software
Number of Servers Required 15
Average Useful Life (Years) 3
Average Cost for Required OS & Software $696 $10,440 $0 $0 $10,440
Average Annual Software Assurance & Maintenance/Support $430 $6,450 $6,450 $6,450 $19,350
Other Hardware
Facility
(1)
Data Center Space $432 /yr/server $6,479 $6,479 $6,479 $19,436
Power and Cooling $739 /yr/server $11,079 $11,079 $11,079 $33,236
Bandwidth $250 /1Mb/month $3,000 $3,000 $3,000 $9,000
Labor
(1)
Labor rate increase 5%
Labor (Application Support)
Number of FTEs 0.1
Labor Rate $126,152 FTE (loaded) $12,615 $13,246 $13,908 $39,769
Labor (Infrastructure Support)
Labor Rate (with annual rate increase after year 1) $60.65
Provisioning 13.90 Hrs/Svr/Mo $12,646 $0 $0 $12,646
Ongoing 4.00 Hrs/Svr/Mo $3,639 $3,821 $4,012 $11,472
Change Management 1.52 Hrs/Svr/Mo $1,380 $1,449 $1,521 $4,350
Total $125,477 $47,773 $48,699 $221,949
(1)
Source of cost information: Gartner 2015
Dynamics AX / NAV TCO Cloud
Item Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCO
Software
Dynamics AX Advance Management BRL - - Included in Concerto Cloud Services Contract - -
SQL CALs - - Included in Concerto Cloud Services Contract - -
Implementation and Support
AX Maintenance - - Included in Concerto Cloud Services Contract - -
SQL Annual Maintenance - - Included in Concerto Cloud Services Contract - -
Hardware
Single Servers Environment - - Included in Concerto Cloud Services Contract - -
Hardware Set Up - - Included in Concerto Cloud Services Contract - -
Hardware Support - - Included in Concerto Cloud Services Contract - -
Concerto Cloud Services Contract (Full Hosting and Support)
Concerto Cloud Services Contract (3 Year Commitment) 12 $4,400 $52,800 $52,800 $52,800 $158,400
Total $52,800 $52,800 $52,800 $158,400
Dynamics AX / NAV TCO Comparison
Total on Premise $125,477 $47,773 $48,699 $221,949
Total Cloud $52,800 $52,800 $52,800 $158,400
Total Cost Savings (Concerto Cloud vs. On Premise) $72,677 ($5,027) ($4,101) $63,549
Future Value of Cash Savings in Year 3 $86,559 ($5,648) ($4,347) $76,564
Cost of Capital
(2)
6% 3 2 1
(2)
Based on 10YR Treasury Bond plus 3% risk factor
Dynamics CRM TCO
 Users: 300 Concurrent
 Production Environment:
 2 Web Services
 Application Server
 SQL Database Server
 Pre-Production Environment
 Web / App Server
 SQL Database Server
Dynamics CRM TCO On-Premise
Item Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCO
Software
CRM Enterprise Server, 1 included in BRL 0 $0 $0 $0 $0 $0
CRM Full User Client Access License 0 $0 $0 $0 $0 $0
CRM Limited Users 0 $0 $0 $0 $0 $0
CRM Self Service Users 0 $0 $0 $0 $0 $0
SQL CALs 0 $0 $0 $0 $0 $0
Implementation, Maintenance, and Support
CRM Annual Enhancement 18% $0 $0 $0 $0
SQL Annual Maintenance 18% $0 $0 $0 $0
Hardware
(1)
Servers
Server Environment 10 $3,000 $30,000 $0 $0 $30,000
Hardware Set Up 40 $175 $7,000 $0 $0 $7,000
Hardware Support 5.0% $1,500 $1,500 $1,500 $4,500
Server OS & Server Software
Number of Servers Required 10
Average Useful Life (Years) 3
Average Cost for Required OS & Software $696 $6,960 $0 $0 $6,960
Average Annual Software Assurance & Maintenance/Support $430 $4,300 $4,300 $4,300 $12,900
Other Hardware
Facility
(1)
Data Center Space $432 /yr/server $4,319 $4,319 $4,319 $12,957
Power and Cooling $739 /yr/server $7,386 $7,386 $7,386 $22,157
Bandwidth $250 /1Mb/month $6,000 $6,000 $6,000 $18,000
Labor
(1)
Labor rate increase 5%
Labor (Application Support)
Number of FTEs 0.25
Labor Rate $126,152 FTE (loaded) $31,538 $33,115 $34,771 $99,424
Labor (Infrastructure Support)
Labor Rate (with annual rate increase after year 1) $60.65
Provisioning 13.90 Hrs/Svr/Mo $8,430 $0 $0 $8,430
Ongoing 4.00 Hrs/Svr/Mo $2,426 $2,547 $2,675 $7,648
Change Management 1.52 Hrs/Svr/Mo $920 $966 $1,014 $2,900
Total $110,779 $60,133 $61,964 $232,876
(1)
Source of cost information: Gartner 2015
Dynamics CRM TCO
Item Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCO
Software
Dynamics CRM Advance Management BRL - - Included in Concerto Cloud Services Contract - -
CRM Enterprise Server, 1 included in BRL - - Included in Concerto Cloud Services Contract - -
CRM Full User Client Access License - - Included in Concerto Cloud Services Contract - -
SQL CALs - - Included in Concerto Cloud Services Contract - -
Implementation and Support
CRM Support Services Hours - - Included in Concerto Cloud Services Contract - -
CRM Maintenance - - Included in Concerto Cloud Services Contract - -
CRM Support Services Hours - - Included in Concerto Cloud Services Contract - -
CRM Annual Enhancement - - Included in Concerto Cloud Services Contract - -
SQL Annual Maintenance - - Included in Concerto Cloud Services Contract - -
Hardware
Single Servers Environment - - Included in Concerto Cloud Services Contract - -
Hardware Set Up - - Included in Concerto Cloud Services Contract - -
Hardware Support - - Included in Concerto Cloud Services Contract - -
Concerto Cloud Services Set-up Fee
Concerto Cloud Set up Fee 1 $3,560 $3,560
Concerto Cloud Services Contract (Full Hosting and Support)
Concerto Cloud Services Contract (3 Year Commitment) 12 $3,097 $37,165 $37,165 $37,165 $111,496
Dynamics CRM TCO
Total On Premise $110,779 $60,133 $61,964 $232,876
Total Cloud $40,725 $37,165 $37,165 $115,056
Total Cost Savings (Concerto Cloud vs. On Premise) $70,054 $22,968 $24,799 $117,820
Questions?
Rob Curls
 Business Solutions
Consultant
Greg Pierce
 Chief Cloud Officer
FOR MORE INFORMATION:
(844) 760-1842
www.concertocloud.com
info@concertocloud.com

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What Does It Cost for Microsoft Dynamics in the Cloud?

  • 1. How Much Does It Cost For Dynamics In the Cloud? Presenters: Greg Pierce and Rob Curls
  • 2. Todays Presenter Greg Pierce Chief Cloud Officer, Concerto Cloud Services Pioneer in Enterprise Cloud Computing Veteran business leader and entrepreneur with over 20 years experience Helps businesses transform through the use of disruptive technologies
  • 3. The Cloud Today and Tomorrow Key Points When Evaluating Cloud Options Accurately Modeling Cost Options for Microsoft Dynamics Q&A
  • 4. Todays Presenter Rob Curls Business Solutions Consultant, Concerto Cloud Services Over 15 years consulting experience including working for Microsoft and in highly regulated industries such as healthcare and government Specialties include Microsoft Dynamics, Modern DataCenter, Windows Azure, Microsoft Exchange Server, Active Directory, Hyper-V, and High Availability Solutions with
  • 6. Public vs. Private Multi-Tenant Single-Tenant Customizable To Meet Unique Needs No Shared Instances Can Meet Higher Security and Compliance Requirements Can Control Upgrades and Administration Limited Ability To Customize Commodity Servers & Infrastructure No Control Over Upgrades Lower Costs
  • 7. Choosing the Right Cloud Type Systems of Record Must be secure, accurate and organized for the data it holds Best served in private cloud environments Systems of Engagement Must be easy to use and engaging for users Best served in highly-available public cloud environments
  • 8. Components of a Cloud Cost Comparison
  • 9. The Real Deal with SLAs How critical are your workloads? What makes up availability? An ounce of prevention
  • 10. Site Resiliency Site Resiliency and Geo-Redundancy are not automatically included in many cloud offerings.
  • 12. Licensing Options and Cost Impacts SaaS SPL A IaaS
  • 15. Dynamics GP / SL TCO Users: 10 Production Environment: Remote Desktop Server SQL Database Server IIS Server for Web Client Dedicated Test Environment
  • 16. Dynamics GP / SL TCO On-Premise Item Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCO Software Dynamics GP Starter Pack (Includes 3 Full User CALs) 0 $5,000 $0 $0 $0 $0 Dynamics GP Full User CAL 0 $3,000 $0 $0 $0 $0 Dynamics GP Limited User CAL 0 $600 $0 $0 $0 $0 Dynamics Collection Management 0 $3,500 $0 $0 $0 $0 Dynamics Extended Pack 0 $10,000 $0 $0 $0 $0 Dynamics Customization Pack 0 $6,000 $0 $0 $0 $0 Dynamics SmartList Builder Pack 0 $2,000 $0 $0 $0 $0 Dynamics Extended Human Resources and Payroll 0 $7,000 $0 $0 $0 $0 CRM Enterprise Server, 1 included in BRL 0 $5,000 $0 $0 $0 $0 CRM Full User Client Access License 0 $1,000 $0 $0 $0 $0 SQL CALs (Standard) 0 $110 $0 $0 $0 $0 Maintenance and Support GP Maintenance and Application Support 25% $0 $0 $0 $0 $0 CRM Maintenance and Application Support 25% $0 $0 $0 $0 $0 Hardware (1) Servers 9 Server Environment 9 $3,000 $27,000 $0 $0 $27,000 CRM Server 0 $5,500 $0 $0 $0 $0 Hardware Set Up 72 $175 $12,600 $0 $0 $12,600 Hardware Support 5.0% $1,350 $1,350 $1,350 $4,050 Server OS & Server Software Number of Servers Required 9 Average Useful Life (3 Years or 5 Years) 9 Average Purchase Price for Required OS & Software $696 $6,264 $0 $0 $6,264 Average Annual Software Assurance & Maintenance/Support $430 $3,870 $3,870 $3,870 $11,610 Other Hardware Facility (1) Data Center Space $425 /yr/server $3,825 $3,825 $3,825 $11,475 Power and Cooling $739 /yr/server $6,647 $6,647 $6,647 $19,942 Bandwidth $250 /1Mb/month $3,000 $3,000 $3,000 $9,000 Technology to Duplicate Environment Labor (1) Labor rate increase 5% Labor (Infrastructure Support) Labor Rate (with annual rate increase after year 1) $60.65 Provisioning 13.90 Hrs/Svr/Mo $7,587 $0 $0 $7,587 Ongoing 4.00 Hrs/Svr/Mo $26,201 $27,511 $28,886 $82,598 Change Management 1.52 Hrs/Svr/Mo $9,934 $10,431 $10,953 $31,318 Off Hours Monitoring and Support $100.00 1 $100 $100 $100 $300 Total $108,379 $56,734 $58,631 $223,744 (1) Source of cost information: Gartner 2015
  • 17. Dynamics GP / SL Managed Cloud Item Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCO Software Dynamics GP Advance Management BRL - - Included in Concerto Cloud Services Contract - - SQL CALs - - Included in Concerto Cloud Services Contract - - Implementation and Support GP Maintenance - - Included in Concerto Cloud Services Contract - - SQL Annual Maintenance - - Included in Concerto Cloud Services Contract - - Hardware Single Servers Environment - - Included in Concerto Cloud Services Contract - - Hardware Set Up - - Included in Concerto Cloud Services Contract - - Hardware Support - - Included in Concerto Cloud Services Contract - - Concerto Cloud Services Set-up Fee Concerto Cloud Set up Fee 1 $3,560 $3,560 Concerto Cloud Services Contract (Full Hosting and Support) Concerto Cloud Services Contract (3 Year Commitment) 12 $2,887 $34,645 $34,645 $34,645 $103,936 Total $38,205 $34,645 $34,645 $107,496
  • 18. Comparison: GP Cloud vs On-Premise Total On Premise $108,379 $56,734 $58,631 $223,744 Total Cloud $38,205 $34,645 $34,645 $107,496 Total Cost Savings (Concerto Cloud vs. On Premise) $70,173 $22,089 $23,986 $116,248 Future Value of Cash Savings in Year 3 $83,578 $24,819 $25,425 $133,822 Cost of Capital (2) 6% 3 2 1
  • 19. Dynamics AX / NAV TCO Users: 25 Production Environment: Remote Desktop Services Server AX Object Server Management Reporter SQL Database Server SSRS Server Pre-Production Environment: Remote Desktop Services Server AX Object Server Management Reporter SQL Database Server SSRS Server
  • 20. Dynamics AX / NAV TCO On-Premise Item Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCO Software Dynamics AX Advance Management BRL 0 $3,500 $0 $0 $0 $0 CRM Enterprise Server, 1 included in BRL 0 $800 $0 $0 $0 $0 CRM Full User Client Access License 0 $0 $0 $0 $0 $0 SQL CALs 0 $0 $0 $0 $0 $0 Implementation, Maintenance, and Support Implementation Services Hours 0 $0 $0 $0 $0 $0 AX Maintenance 16% $0 $0 $0 $0 $0 CRM Maintenance 16% Hardware (1) Servers 15 Server Environment 15 $3,000 $45,000 $0 $0 $45,000 CRM Server $0 Hardware Set Up 60 $175 $10,500 $0 $0 $10,500 Hardware Support 5.0% $2,250 $2,250 $2,250 $6,750 Server OS & Server Software Number of Servers Required 15 Average Useful Life (Years) 3 Average Cost for Required OS & Software $696 $10,440 $0 $0 $10,440 Average Annual Software Assurance & Maintenance/Support $430 $6,450 $6,450 $6,450 $19,350 Other Hardware Facility (1) Data Center Space $432 /yr/server $6,479 $6,479 $6,479 $19,436 Power and Cooling $739 /yr/server $11,079 $11,079 $11,079 $33,236 Bandwidth $250 /1Mb/month $3,000 $3,000 $3,000 $9,000 Labor (1) Labor rate increase 5% Labor (Application Support) Number of FTEs 0.1 Labor Rate $126,152 FTE (loaded) $12,615 $13,246 $13,908 $39,769 Labor (Infrastructure Support) Labor Rate (with annual rate increase after year 1) $60.65 Provisioning 13.90 Hrs/Svr/Mo $12,646 $0 $0 $12,646 Ongoing 4.00 Hrs/Svr/Mo $3,639 $3,821 $4,012 $11,472 Change Management 1.52 Hrs/Svr/Mo $1,380 $1,449 $1,521 $4,350 Total $125,477 $47,773 $48,699 $221,949 (1) Source of cost information: Gartner 2015
  • 21. Dynamics AX / NAV TCO Cloud Item Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCO Software Dynamics AX Advance Management BRL - - Included in Concerto Cloud Services Contract - - SQL CALs - - Included in Concerto Cloud Services Contract - - Implementation and Support AX Maintenance - - Included in Concerto Cloud Services Contract - - SQL Annual Maintenance - - Included in Concerto Cloud Services Contract - - Hardware Single Servers Environment - - Included in Concerto Cloud Services Contract - - Hardware Set Up - - Included in Concerto Cloud Services Contract - - Hardware Support - - Included in Concerto Cloud Services Contract - - Concerto Cloud Services Contract (Full Hosting and Support) Concerto Cloud Services Contract (3 Year Commitment) 12 $4,400 $52,800 $52,800 $52,800 $158,400 Total $52,800 $52,800 $52,800 $158,400
  • 22. Dynamics AX / NAV TCO Comparison Total on Premise $125,477 $47,773 $48,699 $221,949 Total Cloud $52,800 $52,800 $52,800 $158,400 Total Cost Savings (Concerto Cloud vs. On Premise) $72,677 ($5,027) ($4,101) $63,549 Future Value of Cash Savings in Year 3 $86,559 ($5,648) ($4,347) $76,564 Cost of Capital (2) 6% 3 2 1 (2) Based on 10YR Treasury Bond plus 3% risk factor
  • 23. Dynamics CRM TCO Users: 300 Concurrent Production Environment: 2 Web Services Application Server SQL Database Server Pre-Production Environment Web / App Server SQL Database Server
  • 24. Dynamics CRM TCO On-Premise Item Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCO Software CRM Enterprise Server, 1 included in BRL 0 $0 $0 $0 $0 $0 CRM Full User Client Access License 0 $0 $0 $0 $0 $0 CRM Limited Users 0 $0 $0 $0 $0 $0 CRM Self Service Users 0 $0 $0 $0 $0 $0 SQL CALs 0 $0 $0 $0 $0 $0 Implementation, Maintenance, and Support CRM Annual Enhancement 18% $0 $0 $0 $0 SQL Annual Maintenance 18% $0 $0 $0 $0 Hardware (1) Servers Server Environment 10 $3,000 $30,000 $0 $0 $30,000 Hardware Set Up 40 $175 $7,000 $0 $0 $7,000 Hardware Support 5.0% $1,500 $1,500 $1,500 $4,500 Server OS & Server Software Number of Servers Required 10 Average Useful Life (Years) 3 Average Cost for Required OS & Software $696 $6,960 $0 $0 $6,960 Average Annual Software Assurance & Maintenance/Support $430 $4,300 $4,300 $4,300 $12,900 Other Hardware Facility (1) Data Center Space $432 /yr/server $4,319 $4,319 $4,319 $12,957 Power and Cooling $739 /yr/server $7,386 $7,386 $7,386 $22,157 Bandwidth $250 /1Mb/month $6,000 $6,000 $6,000 $18,000 Labor (1) Labor rate increase 5% Labor (Application Support) Number of FTEs 0.25 Labor Rate $126,152 FTE (loaded) $31,538 $33,115 $34,771 $99,424 Labor (Infrastructure Support) Labor Rate (with annual rate increase after year 1) $60.65 Provisioning 13.90 Hrs/Svr/Mo $8,430 $0 $0 $8,430 Ongoing 4.00 Hrs/Svr/Mo $2,426 $2,547 $2,675 $7,648 Change Management 1.52 Hrs/Svr/Mo $920 $966 $1,014 $2,900 Total $110,779 $60,133 $61,964 $232,876 (1) Source of cost information: Gartner 2015
  • 25. Dynamics CRM TCO Item Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCO Software Dynamics CRM Advance Management BRL - - Included in Concerto Cloud Services Contract - - CRM Enterprise Server, 1 included in BRL - - Included in Concerto Cloud Services Contract - - CRM Full User Client Access License - - Included in Concerto Cloud Services Contract - - SQL CALs - - Included in Concerto Cloud Services Contract - - Implementation and Support CRM Support Services Hours - - Included in Concerto Cloud Services Contract - - CRM Maintenance - - Included in Concerto Cloud Services Contract - - CRM Support Services Hours - - Included in Concerto Cloud Services Contract - - CRM Annual Enhancement - - Included in Concerto Cloud Services Contract - - SQL Annual Maintenance - - Included in Concerto Cloud Services Contract - - Hardware Single Servers Environment - - Included in Concerto Cloud Services Contract - - Hardware Set Up - - Included in Concerto Cloud Services Contract - - Hardware Support - - Included in Concerto Cloud Services Contract - - Concerto Cloud Services Set-up Fee Concerto Cloud Set up Fee 1 $3,560 $3,560 Concerto Cloud Services Contract (Full Hosting and Support) Concerto Cloud Services Contract (3 Year Commitment) 12 $3,097 $37,165 $37,165 $37,165 $111,496
  • 26. Dynamics CRM TCO Total On Premise $110,779 $60,133 $61,964 $232,876 Total Cloud $40,725 $37,165 $37,165 $115,056 Total Cost Savings (Concerto Cloud vs. On Premise) $70,054 $22,968 $24,799 $117,820
  • 27. Questions? Rob Curls Business Solutions Consultant Greg Pierce Chief Cloud Officer
  • 28. FOR MORE INFORMATION: (844) 760-1842 www.concertocloud.com info@concertocloud.com

Editor's Notes

  • #7: Talk about the Types of clouds To date MSFT hasnt released a ready made solution like say QB online for Dynamics Options are IaaS solutions on Azure, AWS, Cloud Service Provider
  • #8: Geoffrey Moore, the author of Crossing the Chasm, does a good Job of explaining what workloads are appropriate for public vs private clouds. He breaks workloads down into two categories, systems of record, and systems of engagement. Systems of record are organized around data, systems of engagement are organized around the end user experience. Systems of record must be secure, and accurate. Systems of engagement must be charming, and easy to use. Systems of records are applications that are meant for private cloud solutions.
  • #10: How mission-critical an application is to your organization will determine the level of availability you'll want associated with a workload. The sad truth is that many companies believe they can go hours, days, or weeks without key business systems. That is, until they experience their first major outage of that system. For example, the difference between a 99.9% and a 99.99% SLA is 39 minutes 26 seconds of downtime per month. With a production halt and impact to your customers - this timeframe becomes overwhelming, and not to be repeated.
  • #11: Many people mistakenly believe that because their solution is "in the cloud," everything is backed up from their locations, whether that be one location or sites all over the world. Unfortunately, many cloud providers don't include site resiliency or geographic redundancy in their base offerings. These are considered add-on features, which often increase the price of a cloud deployment - even though this represents a critical piece of a cloud solution.
  • #12: Often a concern with public cloud solutions is available bandwidth. This is typically a metered connection and customers have an unpredictable spend, as they aren't sure how much bandwidth they'll need at any one point in time. This can be especially true for organizations running seasonal solutions in the cloud. In contrast, some private cloud providers will include elasticity in their planned costs to accommodate bandwidth usage.
  • #13: The ability to support traditional application workloads in a cloud environment still requires compliance around core licenses to run the platform. Whether you are thinking about a CRM, Accounting, or Content Management solution, the true cost becomes not just the consumption pricing, but the underlying licenses and potential session virtualization technologies that are required to deliver the workloads.
  • #14: Finally, there is a price that some industry analysts want to ignore. Behind these cloud services there is still a physical server- in some cases thousands. Cloud Service Providers must acquire and manage large amounts of complex infrastructure to support your workloads.油 All this infrastructure has to live in a datacenter that requires the highest of availability of services like power, cooling, and bandwidth.
  • #16: typical GP customer. This model can easily be interchanged between GP, NAV, and SL. In this scenario our customer has 10 named GP users and they are migrating from GP 2010 to 2013. Well change things up a bit and plan on this customer having kept their maintenance up to date, and leveraging those licenses for their cloud environment. They will however still need to obtain office and RDS licenses either independently or via their cloud provider. This environment will consist of an RDS server, a SQL database server and if youre deploying the GP web client, an additional IIS server. Following best practices this deployment will also have a dedicated test environment. For this scenario our company doesnt currently run Dynamics AX so were going to compare the on premise deployment to a SaaS model in the cloud. If the company did own their own licenses we could leverage them in the cloud as well to reduce the monthly cloud fees.