Professional Documents
Culture Documents
AARK Group
Rachel Chamberland, Alex Diaz,
Amanda Lui & Kevin Satre
Financial Analysis
Q&A
AARK Group
Cloud computing based applications have steadily gained acceptance over the past few years
The Situation and are poised to become an integral part of the future.
Offers scalability, cost efficiency, customization, and flexibility. Users pay only for amount used,
Benefits of Cloud reducing the need for substantial capital expenditure to meet just a single period’s demand.
Computing
Some major hurdles hinder the adoption of cloud technology: security concerns and the need to
Challenges integrate with existing architecture. In essence, though the cloud holds much potential, moving to the
cloud is not necessarily better in every situation.
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Analysis: retail industry & cloud computing is not a matter of “if”, but “when”
Retail demand highly dependent upon The basis of the retail industry has been
Retailers typically using antiquated
contingent upon anticipating and fulfilling
economy. Concerns with security of data. systems already in need of upgrading: customer needs. Need agility and speed to
looking for low cost opportunities. get products and services to market.
Industry manages large amounts of
data Struggles with efficiency highlighted Changing need: With the economic
during economic recession: emphasis recession, customers have become more
on becoming leaner cautious about spending. Also have higher
expectations about service: whether it be
faster and more efficient, or more
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Source: “Industry Profile: Retail Sector.” 21 Mar. 2011: n. pag. First Research. Web. 30 Apr. 2011.
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AARK Group
Positioning Plan
Differentiation
By entering into the retail market, BlueSky will increase its PaaS
market share by 15% over the next ten years.
Operating Income
After the first two years of operating losses, 2013 will see a
positive net income and profits will continue to rise.
The PaaS market is not yet saturated, Establishment of security regulations and Proper application development can help
but as the market expands more players certification will help mitigate the users avoid these pitfalls
will enter, driving down prices concerns about cloud computing
Mitigate by offering training and support
Lack of industry standards may created —teach users how to properly develop
Wide availability of cloud computing
Source: Harris, Jeanne G. and Alter, Allan E. “Cloudrise: Rewards and Risks at the Dawn of Cloud Computing.”
Accenture. Nov 2010; York, Joel. “To Cloud or Not to Cloud in Financial Services.” Cloud Ave. 17 Sep. 2010.
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Customer Adoption
Evaluation Points
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Questions?
AARK Group
Appendix
Source: Harris, Jeanne G. and Alter, Allan E. “Cloudrise: Rewards and Risks at the Dawn of Cloud Computing.”
Accenture. Nov 2010.
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AARK Group
Retail vertical industry analysis: cloud computing is not a matter of “if”, but “when”
Source: “Industry Profile: Retail Sector.” 21 Mar. 2011: n. pag. First Research. Web. 30 Apr. 2011; “Retail IT
Spending to Exceed $20B.” ABIresearch (2010): n. pag. Web. 2 May 2011.
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AARK Group
Source: Hoffman, Daniela. “Up in the air: cloud computing and the auto industry.” automotiveIT. 24 Nov. 2010.
Web. 3 May 2011; Mentuccia, Luca. “Six Questions Every Automotive Executive Should Ask About Cloud
Computing.” Accenture. 2010. Web. 3 May 2011.
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Struggle with inter/intra agency politics Potential difficulties: must adhere to Very high security needed, especially
FISMA, ensure that they are following for sensitive material
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Source: Harris, Jeanne G. and Alter, Allan E. “Cloudrise: Rewards and Risks at the Dawn of Cloud Computing.”
Accenture. Nov 2010; York, Joel. “To Cloud or Not to Cloud in Financial Services.” Cloud Ave. 17 Sep. 2010.
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Vendor management
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AARK Group
Store customer information and communication on the cloud Scalable space to accommodate seasonal sales data without
spending a fortune on servers
Create a space for customers to interact with the company
Quick process and analysis to help meet customer demand
Host promotions without spending more on servers
Trend analysis can guide price management to maximize
profit
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AARK Group
$10 per user, per month $8 per user, per month Standard On-Demand Instances Compute (instances)
Max $2,000/month max $1,000 / month [Windows] S: $0.12 / hr. L: $0.48 / hr. XL: XS: $0.05 / hr. S: $0.12 / hr. M: $0.24 / hr.
$0.96 / hr. L: $0.48 / hr. XL: $0.96 / hr.
Outgoing Bandwidth: $0.12 / GB Outgoing Bandwidth: $0.12 / GB Data Transfer Data Transfers
Incoming Bandwidth: $0.10 / GB Incoming Bandwidth: $0.10 / GB $0.10 / GB in. $0.00 for first GB / month. $0.10 / GB in. $0.15 / GB out.
$0.15 / GB / month.
CPU Time CPU Time Elastic Load Balancing Virtual Network: free during CTP
$0.10 / CPU hour $0.10 / CPU hour $0.025 / Elastic Load Balancer- hour (or
partial hour)
High Replication Storage High Replication Storage Amazon Route 53 (zone hosting) Access Control
$0.45 / GB / month $0.45 / GB / month $1.00 / hosted zone $1.99 / 100K transactions
Recipients Emailed Recipients Emailed CloudFront (Content Delivery) Content Delivery Network
750 hrs of compute instances 500 MB of storage 750 hrs of Amazon EC2 Linux Micro 750 hrs of XS compute instance
Instance usage
25 hrs of S compute instance
613 MB of memory
1 GB BlueSky database storage 5 million page views 25 Amazon SimpleDB Machine hrs 1 GB Web Edition database
1 GB of storage
Data Transfers 750 hrs of Elastic Load Balancer 100K Access Control transactions
20 GB transfers in 15 GB data processing
20 GB transfers out
Bullet
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Have interested clients complete Recommend most helpful cloud Provide recommendations for Support for developers who may
a survey in order to determine solutions, PaaS tools and most optimal application need assistance making
their specific, individual needs. components, etc. development strategies. transition to cloud.
Development needed to Toolkits for application “Design for failure” model Free access to BlueSky IT
transition to cloud consultant (via online help)
Public data sets Establish cost ceilings
Integration needs One-on-one support if
Tutorials, videos, workshops Tutorials, workshops monthly usage > $100
Pattern of usage demand
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Assumption
Lack of any of these major factors will decrease the
Source: Harris, Jeanne G. and Alter, Allan E. “Cloudrise: Rewards and Risks at the Dawn of Cloud Computing.”
Accenture Research Report. 2010 Nov.
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Projected Financials
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Total PaaSRevenue Forecast 2.13 4.86 8.90 11.82 13.76 15.18 16.74 18.24 19.71 21.14 22.43
Comparny X PaaSRevenue 0.43 1.04 2.04 2.90 3.61 4.26 4.93 5.63 6.36 7.07 7.77
BlueSky revenue 0.00 0.07 0.26 0.53 0.86 1.22 1.58 1.98 2.41 2.84 3.29
Costs (2.50) (0.40) (0.42) (0.45) (0.48) (0.50) (0.54) (0.57) (0.60) (0.64) (0.68)
NI (2.50) (0.33) (0.17) 0.08 0.38 0.72 1.05 1.41 1.81 2.21 2.61
NPV ($2.50) ($0.32) ($0.15) $0.07 $0.32 $0.59 $0.83 $1.07 $1.33 $1.55 $1.76
Cumulative NPV ($2.50) ($2.82) ($2.97) ($2.90) ($2.58) ($1.99) ($1.16) ($0.09) $1.24 $2.79 $4.55
Assumption
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AARK Group
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
BlueSky revenue 0.00 0.05 0.18 0.37 0.59 0.84 1.16 1.52 1.92 2.31 2.72
Costs (2.50) (0.40) (0.42) (0.45) (0.48) (0.50) (0.54) (0.57) (0.60) (0.64) (0.68)
NI (2.50) (0.35) (0.24) (0.08) 0.12 0.33 0.62 0.95 1.32 1.67 2.04
NPV ($2.50) ($0.34) ($0.22) ($0.07) $0.10 $0.27 $0.49 $0.72 $0.96 $1.18 $1.38
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2011 Deloitte UW Case Challenge Presentation Template.ppt
Copyright © 2010 Deloitte Development LLC. All rights reserved.
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