Viewpointe ® Proprietary & Confidential Information. Copyright Viewpointe ® 2015. All Rights Reserved. Not All Clouds are Created Equal: Strategic Thinking

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. Not All Clouds are Created Equal: Strategic Thinking for Records Professionals William Shute Executive Vice President, Corporate Strategy and Marketing [email protected] Tuesday, May 19: 8:30 a.m. 9:30 a.m.

Enterprise Cloud Usage 3

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. Enterprise Cloud Usage 4 THE AVERAGE COMPANY ACTUALLY USES 738 CLOUD SERVICES Source: Cloud Adoption & Risk Report, Q2 2014, Skyhigh Networks Average Company Size: 38,990 Employees

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. IT Operations Transitioning to a service provider Starting to embrace IaaS Often challenged with Moving fast enough for Bus Needing to focus on legacy systems Meeting controls and governance Business Units Driving SaaS adoption Driving IaaS adoption Typically less concerned with Security SLAs Ongoing Support Costs of IT The Two Tracks of Cloud Adoption 6 Dell Inc. Cloud Adoption Reaches a Tipping Point. 2015. Demand for apps & IT services continues explosive growth Driven by use- case Driven by use- case and by transformation

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. Drivers ACCELERATES TIME TO MARKET. Immediate access to computing and storage resources. Rapid provisioning of virtual servers to keep pace with changing workloads Greater ability to resolve challenges and improve service consistency INNOVATE WITH THE BUSINESS. IT barriers to innovation lowered. Alignment of flexible IT infrastructure with changing business demands. More agile and reliable technology management. RESPOND RAPIDLY TO CHANGES IN DEMAND. Ability to scale services up or down based on group demands. Automated scaling driven by pre-defined service-level agreements (SLAs). Source: PWC- Clouds in the forecast July 2013 USE IT ASSETS MORE EFFICIENTLY. Resources pooled to create system efficiencies. Pay-per-use based on demand cycle. Adopters of private cloud significantly improved asset utilization While adopters of public clouds turned capital expenses into operating expenses.

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. Cloud Adoption and Trends Usage 49% of businesses are using the cloud for revenue generation and product development 45% either intend to or already run their company in the cloud 72% have adopted SaaS applications, up from 13% in 2011 Transition 65-70% of respondents will move some significant processing for business applications to the cloud in the next 24 months The front office is getting the most attention with 52% using SaaS for sales and marketing, 44% for customer service, and 44% for business analytics High shares have adopted cloud for several IT-related functions: web presence (63%); communications (54%); and disaster recovery (47%) Bottom Line IT is no longer fighting. 60% of respondents, across all functions tested, stated that, within the next two years, they would move some or significant processing to cloud. 8 Gigaom Research Enterprise IT Buyers Survey, Northbridge Future of Cloud Computing Survey, 2Q14

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. There are Lots and Lots of Clouds Public Cloud Service Open access Fully shared Community Cloud or Industry Cloud Service Limited access Shared expertise Virtual Private Cloud Service Open access Limited sharing Private Cloud Service Closed access 9

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. Public Cloud o Applications, storage and other resources are made available to the general public by a service provider o Focus is storage heavy o Does not require initial capital investments o Public cloud services may be free or offered on a pay-per-usage model o Some services tied to particular devices go-to-market launch (Apple iCloud, gmail, yahoo) o Typically multi-tenant, shared/co-mingled environments o Cannot be customized to the institution it supports o Can not typically address regulatory and legal constraints for compliance via shared environment amongst unrelated tenants 10

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. Public Cloud Used for Common Applications 11 While utilizing a public cloud is becoming more common, we have observed that its use is limited mostly to key applications. These applications include email services, certain voice capabilities, as well as software as a service (SaaS) offerings that have long been adopted and are now further enabled by a public cloud. - PWC

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. Private Cloud o Infrastructure operated solely for a single organization, whether managed internally or by a third-party and hosted internally or externally o All data is kept segregated and services typically provided on a pay-per-consumption model o Requires initial capital investment however can be financially competitive for larger enterprises over long run o Can be multi-tenant or single-tenant depending on customer requirements o Can be customized for the specific organization it supports o Can address regulatory and legal constraints for compliance mandates (i.e. data privacy) o Examples: Ubuntu, HP, Viewpointe 12

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. Private Cloud Used for Critical Functions Private clouds will dominate the most critical functions. Many factors drive the decision to public or private cloud. Industries with the strongest adoption of private clouds are financial services, healthcare and diversified industrials Organizations custom-configured applications and infrastructure also contribute to the need for private cloud solutions versus the standardized solutions among public clouds. - KPMG Study Dedicated private cloud resonates primarily with large firms for critical workloads, which demand very specific SLAs and business continuity requirements. - IDC 13

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. Behind the scenes Public vs. Private 15 Dedicated Private Cloud Dedicated Public Cloud Dedicated/Single Tenant Shared/Multitenant Customer Site Service Provider Site Virtual Private Cloud Managed Private Cloud Managed Self-run Self-run Within Firewall Internet Accessible

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. Security & Data Privacy 16 Encryption at rest (database and content) Available WORM-compliant storage Privileged access monitoring and review Automated content replication with alternate site replication Highly available application servers with load balancing Technology-Based Security Physical Security Cardkey and biometric access controls 24/7 site security Background checks for all staff Geographically diverse alternate data center Process, Procedure and Governance Audits, SSAE16, regulatory compliance Standards and best practices Comprehensive audit logging and reporting Network Security Encryption of data in transit Customer-specific, dedicated private network connectivity Network intrusion detection and monitoring Network vulnerability scanning

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. How does Office 365 Fit in? Analyst O365 Tracking & Predictions o of enterprise email will be cloud-based SaaS by 2017 o Cloud-provisioned users will grow 28.5% a year, 695M by 2022 o Factors to watch Devices Per User The explosion in the number of devices per user may drive some enterprises to cloud office systems by potentially reducing the overall burden on the IT organization Pilots Enterprises with cloud office systems may not have moved everyone to the cloud, but maintained on-premises systems for C-level executives with communications subject to legal & regulatory scrutiny, to maintain greater control 17 Who is winning Google or Microsoft? Advocates of one side or the other would like the market to believe their side is destroying the other in the marketplace, but the answer to both questions is "no." Both parties are winning some and losing some engagements. Both parties have substantive benefits and hidden liabilities. Invest based on needs, not on perceived market momentum.- Tom Austin, Gartner

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. Does Office 365 Meet the Requirements? As organizations in general begin to adopt more inclusive information governance practices, the need for more powerful, cross-application, archiving and governance capabilities will become obvious. The industry is moving toward more centralized and more granular information governance automation, and third-party archiving solutions still offer the best, most cost effective way to meet these requirements while enhancing Office 365 capabilities. 18 Osterman Research, Inc. The Need for Third-Party Archiving in Office 365. March 2015

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. Comprehensive Information Governance is still a necessity 19 Office 365 Gets you to HereThere is still more you should go after Universal Information Governance for All Data Sources Optimized & Simplified Migration for Legacy Data Global Retention Management & Defensible Disposition Categorization for Expedited Retrieval & Retention Legal Holds & Custodian-based Collection Records Management with DOD 5015.02 Certified Technology Unified eDiscovery solution with Early Case Assessment Supervision Review for Regulatory & Internal Compliance Cloud Delivery Model for: Exchange, SharePoint, Lync Office, OneDrive, Yammer Subscription Service & Administration Unlimited Message Storage Data-Loss Prevention Optional Digital Rights Management Optional User-driven Retention Management

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. The Supply Chain Gotcha: What do we mean? 20 Downstream events and integration can impact your business. Understanding the implications of the providers supply chain can enable you to make better decisions about whom to partner with.

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. Expected Benefits of IG in the Cloud Decrease Complexity and Costs Decrease Systems and Repositories Decrease Maintenance and Administrative Costs Retire Legacy Systems Decrease Data and Associated Costs Increase Business Flexibility and Adaptability Decrease Paper and Enable Process Automation Secure Data and Ensure Access Create a Foundation for Future Services (e.g., Content Analytics) Decrease Compliance and Legal Risks, and Costs Destroy Records (Defensible Destruction) Reduce Duplication of Data Optimize Legal Admissibility of Records Legal Holds and Discovery Processes Safeguard Vital Information Increase Information Standardization for Accessibility and Usability Provide Standardized Information Access Classify Records for Access and Compliance Protect Data from Obsolescence Decrease Access Complexity 21

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. Cloud Economics: Information Governance Per-User Costs, On Premises vs. Cloud Software $39 Hardware $40 Networking and Storage $16 IT staff $70 Fees $103 Available budget Facilities and Power $2 IT staff $3 On Premises $167 In Cloud $106 100% IT Spend Hardware, Labor resource & power savings reduce annual cost of operations Discovered funds for new development, investment or saving Source: Cloud Economics: A Financial Analysis of Information Management IT Delivery Models. IDC, Michael Versace and Randy Perry. October 2013

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. What should you be asking? 23 What is the recovery point objective and recovery time objective for the cloud provider, and does this meet or exceed your requirements? How often is the cloud providers DR fail-over tested, and does this equally apply to downstream providers? How does the cloud provider address data integration between cloud services and on-premises applications? Does the cloud provider collaborate with other cloud providers to develop interoperability between them so that end-to-end service outcomes can be achieved? Describe the operational implementation procedures to support project success? Does the provider have professional services to support the implementation? Is the cloud provider willing to share its security protocols, methodology, certifications and audits with you? Can the security infrastructure of the cloud provider integrate with both a cloud-based single sign-on (SSO) solution or with your on-premises SSO solution? This will be important for transition and interoperability. How does the cloud provider address data integration between cloud services and on-premises applications? Does the cloud provider collaborate with other cloud providers to develop interoperability between them so that end-to-end service outcomes can be achieved? Describe the operational implementation procedures to support project success? Does the provider have professional services to support the implementation?

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. What should you be asking? 24 Does the cloud provider offer full transparency into the performance of your services through dashboards, alerts and other tools? What is your cloud providers supply chain? It is important to understand what other third-party cloud service providers are used by your cloud provider and how those third-party providers reporting will be included to provide complete transparency to how your data is being managed. Does the cloud provider offer transparent and predictable pricing that enables reconciliation with your services rendered? Are you able to benchmark the pricing against your current cost basis, as well as another vendors offerings? Does the proposed TCO of a solution take into account often hidden costs, such as setup fees, development fees, migration and recurring licensing or subscription fees? Can/will the provider help you with your business plan/ TCO calculations? How does the providers TCO equate to other providers TCO? Does the cloud provider have a customer base: 1) in your (or directly related) industry; 2) that uses the same services proposed; and 3) that can be contacted as a reference? How long has the cloud provider been implementing this type of service in your industry? How well-focused on the provider organization on cloud (vs. software or hardware)?

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. What should you be asking? 25 Can the cloud provider ensure that its downstream cloud providers, which it might use, also comply with these requirements? Does the cloud provider comply with the required government and industry regulations, such as HIPAA or FINRA? Does the cloud provider mitigate non- performing Service Level Agreements (SLAs) through penalty payments or other givebacks? If standard escalation fails, do you have executive-level escalation procedures?

Viewpointe Proprietary & Confidential Information. Copyright Viewpointe 2015. All Rights Reserved. 27 7 Times Square Suite 2503 New York, NY 10036 Phone:(646) 827-3380 Bill Shute Executive Vice President, Corporate Strategy and Marketing [email protected] [email protected] @BillShute THANK YOU

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Viewpointe ® Proprietary & Confidential Information. Copyright Viewpointe ® 2015. All Rights Reserved. Not All Clouds are Created Equal: Strategic Thinking