The Consumable Technology Era For The Small & Midmarket Business

An End To Unnecessary Complexity & Waste

Where We Have Been Where We Are Going

• 1980 – 2010: the Era of technology ownership for the SMB

• The vendor-driven hostage situation that assured spending dependencies and waste

• The complexity of decision making and the uncertainty of the outcome

• How advancement mostly favored the technology vendor

• 2010 and beyond: the simplified technology Era for the SMB

• The consumer style driven operation that assures you pay only for what you use

• The simplicity of decision making and the predictability of the outcome

• How advancement driven by competition favors the customer

The Ownership Era

1980 - 2010

‘IBM bringing out a personal computer would be like teaching an elephant to tap dance.’ Acorn was the code name for the project. On August 12, 1981, at a press conference at the Waldorf Astoria ballroom in New York City, IBM announced the Personal Computer without display for $1,585. ($3,756 in today’s dollars)

1980 $7,520,720

$1,183,446,000

$26,960,000,000

$58,437,000,000

1990

2000

2010

It Began With IBM and Microsoft

With The Era Came Responsibility

In 1960, an IBM computer required an air-conditioned quarter-acre of space and a staff of 60 people to keep it fully loaded with instructions. In 1980 responsibility for watering and feeding the machine was passed to whoever purchased a PC. And the complexity of change management has been owned by the SMB ever since.

1980

Local

1990

Local & Beginning To Network

2000

Fully Networked

2010

Networked & Mobilized

Virtual

Remote

CRM

SFA

Finance

XLS DOC PPT

ERP EMAIL

eCommerce

Software Integration

With The Era Came Treadmill Spending

‘investment’ by the SMB was offset by planned obsolescence within the vendor communities. Before a payback on expense could be fully realized, unavoidable upgrades in H/W and S/W became an accepted way of doing business. Without keeping pace with upgrades and other maintenance fees, the SMB was at risk of not operating well, or not competing at all.

1980

1990

2000

2010

8088

80286

8088

386 DX

386 SX

486 DX

486 SX

DX2

486 SL

Pentium

Pentium II

Celeron

Xeon

Pentium III

Pentium IV

Itanium

Core

Windows 1.0

Windows 2.0

Windows 2.10

Windows 2.11

Window 3.0

Windows 3.1

Workgroups

Windows NT

Windows 95

Windows 98

Windows 2000

Windows XP

XP Professional

Windows Vista

Server 2008

Server 2003

Windows 7

And The Fiscal Waste Top 3 Emerged

Waste 1: Something that is not fully monetized before it must be replaced or disposed of. Waste 2: Something that is not utilized to its full capacity when it is in operation. Waste 3: Features and functions that are purchased that do not fit the exact needs of the user.

Waste 1 Example: the average refresh or replacement cycle for PCs is 2 to 3 years. The MTBF for a mother board is 200,000 hours (113 business years)1.

Waste 2 Example: the average business computer today is configured with more than 200Gb of storage and a 2Ghz processor. And 75 to 90 percent of the time, the server is waiting for work.2

Waste 3 Example: the average office application user is licensed for multiple applications they never touch as a result of software bundling - software packages that are difficult to unbundle.

Solution: move into the consumable technology era.

1 Intel Corporation Server System SR1630GP 2 IT Business Edge Data - 2009

The Consumable Technology Era

New Code Name: Consumerize

With the PC and SMB technology markets in full swing, the consumer markets were advancing voice/data technologies. By the end of 2004 over $118 billion is spent annually in the delivery of more features and with wider accessibility. The infrastructure and application integration investment within the consumer markets has better positioned business services providers.

1980 - 1989

1990 - 1999

2000 - 2009

• Cellular subscribership tops 2 million • 1,000 cell sites across America • Industry tops $1 billion in revenue • The personal cell phone - $3000 • DSL developed

• Mobile Data Network brought online • Cell phones in use surpasses 38 million • 50,000 cell sites across America. • World’s first commercial text message • Consumer average use - 122 minutes per month • Camera phone introduced in Japan

• Over 162 million Americans are wireless • Digital wireless outnumber analog subscribers • 1 million Americans employed by wireless industry • Consumer average use - 320 minutes per month • Over $118 billion in capital investment • Growing by $20 billion a year

Consumer & Business Converging Momentum

Gartner Findings/Projections Service Industry Response

• Consumerization; the most significant trend affecting IT during the next 10 years.

• The number one specific security issue with on-demand IT is privileged user access.

• By 2012 20% of all companies will own zero IT assets.

• Higher expectations; low cost & superior performance - across the entire business.

• The physical, logical and personnel controls must be in place for every on-demand service.

• A new category of services provider is required to deliver against this expectation.

Your Opportunity - Simplified & Consumable Environment

simple internet

security

credentials

controls

pbx

business apps

desktop apps

content

help desk

collaboration

data structure

storage

doc management

SAS-70

PCI

multi-site

monitoring On-demand Application Portal

On-demand Hardware & Data Centers

The consumable technology era & opportunity is here now.

Net Results Bonuses

• Predictable spending – no surprises.

• Always current – no upgrading.

• Grow or shrink at will.

• 25% to 50% less cash to operate.

• Focus only on core business.

• More control – data, security, access.

• Compliance risk management.

• Continuation risk management.

meshIP – Technology On Your Terms

Why meshIP Target Clients

• 25+ years of previous leadership in technology service delivery markets who now lead portal based delivery models for the SMB.

• Pioneers in earlier technologies including local area networks, DSL, and mobility.

• A services company that possesses expertise in on-demand technologies for communications, computing, compliance, and continuation.

• Business leaders interested in liberation from the frustrations of technology once and for all.

• Business leaders at a technology spending or operational crossroads who need fresh options.

• Business leaders who are at operational, compliance, or continuation risk.

Brian Byrne Managing Partner

bbyrne@meshIP.com 214.315.3021

Thank You!