what does it cost for microsoft dynamics in the cloud?

How Much Does It Cost For Dynamics In the Cloud?Presenters: Greg Pierce and Rob Curls

Today’s 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

Today’s 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 Microsoft Clustering Services

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 SLA’s

• 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• SPLA• IaaS

Infrastructure Management

Dynamics TCO Analysis

Dynamics GP / SL TCO

Users: 10

Production Environment: Remote Desktop ServerSQL Database ServerIIS Server for Web Client

Dedicated Test Environment

Dynamics GP / SL TCO On-PremiseItem Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCO

SoftwareDynamics GP Starter Pack (Includes 3 Full User CALs) 0 $5,000 $0 $0 $0 $0Dynamics GP Full User CAL 0 $3,000 $0 $0 $0 $0Dynamics GP Limited User CAL 0 $600 $0 $0 $0 $0Dynamics Collection Management 0 $3,500 $0 $0 $0 $0Dynamics Extended Pack 0 $10,000 $0 $0 $0 $0Dynamics Customization Pack 0 $6,000 $0 $0 $0 $0Dynamics SmartList Builder Pack 0 $2,000 $0 $0 $0 $0Dynamics Extended Human Resources and Payroll 0 $7,000 $0 $0 $0 $0CRM Enterprise Server, 1 included in BRL 0 $5,000 $0 $0 $0 $0CRM Full User Client Access License 0 $1,000 $0 $0 $0 $0SQL CALs (Standard) 0 $110 $0 $0 $0 $0

Maintenance and SupportGP Maintenance and Application Support 25% $0 $0 $0 $0 $0CRM Maintenance and Application Support 25% $0 $0 $0 $0 $0

Hardware (1)

Servers 9Server Environment 9 $3,000 $27,000 $0 $0 $27,000CRM Server 0 $5,500 $0 $0 $0 $0Hardware Set Up 72 $175 $12,600 $0 $0 $12,600Hardware Support 5.0% $1,350 $1,350 $1,350 $4,050

Server OS & Server SoftwareNumber 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 $6,264Average 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 $11,475Power and Cooling $739 /yr/server $6,647 $6,647 $6,647 $19,942Bandwidth $250 /1Mb/month $3,000 $3,000 $3,000 $9,000Technology 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 $7,587Ongoing 4.00 Hrs/Svr/Mo $26,201 $27,511 $28,886 $82,598Change 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 TCOSoftwareDynamics GP Advance Management BRL - - Included in Concerto Cloud Services Contract - -SQL CALs - - Included in Concerto Cloud Services Contract - -

Implementation and SupportGP 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 ServerAX Object ServerManagement ReporterSQL Database ServerSSRS Server

Pre-Production Environment:Remote Desktop Services ServerAX Object ServerManagement ReporterSQL Database ServerSSRS Server

Dynamics AX / NAV TCO On-PremiseItem Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCOSoftwareDynamics AX Advance Management BRL 0 $3,500 $0 $0 $0 $0CRM Enterprise Server, 1 included in BRL 0 $800 $0 $0 $0 $0CRM Full User Client Access License 0 $0 $0 $0 $0 $0SQL CALs 0 $0 $0 $0 $0 $0

Implementation, Maintenance, and SupportImplementation Services Hours 0 $0 $0 $0 $0 $0AX Maintenance 16% $0 $0 $0 $0 $0CRM Maintenance 16%

Hardware (1)

Servers 15Server Environment 15 $3,000 $45,000 $0 $0 $45,000CRM Server $0Hardware Set Up 60 $175 $10,500 $0 $0 $10,500Hardware Support 5.0% $2,250 $2,250 $2,250 $6,750

Server OS & Server SoftwareNumber of Servers Required 15 Average Useful Life (Years) 3 Average Cost for Required OS & Software $696 $10,440 $0 $0 $10,440Average 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 $19,436Power and Cooling $739 /yr/server $11,079 $11,079 $11,079 $33,236Bandwidth $250 /1Mb/month $3,000 $3,000 $3,000 $9,000

Labor (1)

Labor rate increase 5%Labor (Application Support)

Number of FTEs 0.1Labor 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 $12,646Ongoing 4.00 Hrs/Svr/Mo $3,639 $3,821 $4,012 $11,472Change Management 1.52 Hrs/Svr/Mo $1,380 $1,449 $1,521 $4,350

Total $125,477 $47,773 $48,699 $221,949


Dynamics AX / NAV TCO CloudItem Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCOSoftwareDynamics AX Advance Management BRL - - Included in Concerto Cloud Services Contract - -SQL CALs - - Included in Concerto Cloud Services Contract - -

Implementation and SupportAX Maintenance - - Included in Concerto Cloud Services Contract - -SQL Annual Maintenance - - Included in Concerto Cloud Services Contract - -



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-PremiseItem Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCO

SoftwareCRM Enterprise Server, 1 included in BRL 0 $0 $0 $0 $0 $0CRM Full User Client Access License 0 $0 $0 $0 $0 $0CRM Limited Users 0 $0 $0 $0 $0 $0CRM Self Service Users 0 $0 $0 $0 $0 $0SQL CALs 0 $0 $0 $0 $0 $0

Implementation, Maintenance, and SupportCRM Annual Enhancement 18% $0 $0 $0 $0SQL Annual Maintenance 18% $0 $0 $0 $0

Hardware (1)

ServersServer Environment 10 $3,000 $30,000 $0 $0 $30,000Hardware Set Up 40 $175 $7,000 $0 $0 $7,000Hardware Support 5.0% $1,500 $1,500 $1,500 $4,500

Server OS & Server SoftwareNumber of Servers Required 10 Average Useful Life (Years) 3 Average Cost for Required OS & Software $696 $6,960 $0 $0 $6,960Average 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 $12,957Power and Cooling $739 /yr/server $7,386 $7,386 $7,386 $22,157Bandwidth $250 /1Mb/month $6,000 $6,000 $6,000 $18,000

Labor (1)

Labor rate increase 5%Labor (Application Support)

Number of FTEs 0.25Labor 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 $8,430Ongoing 4.00 Hrs/Svr/Mo $2,426 $2,547 $2,675 $7,648Change Management 1.52 Hrs/Svr/Mo $920 $966 $1,014 $2,900

Total $110,779 $60,133 $61,964 $232,876


Dynamics CRM TCOItem Qty Unit Cost Year 1 Year 2 Year 3 3 Year TCOSoftwareDynamics 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 SupportCRM 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 - -


Concerto Cloud Services Set-up Fee Concerto Cloud Set up Fee 1 $3,560 $3,560


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) [email protected]