Google Cloud NEXT '17 - News and Updates

Reduce Enterprise Total Cost of Ownership: Go Cloud Native with G Suite (Google Cloud Next ‘17)

NEXT '17
Reduce Enterprise Total Cost of Ownership: Go Cloud Native with G Suite (Google Cloud Next ‘17)
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(Video Transcript)
[MUSIC PLAYING] ALLAN LIVINGSTON: Good afternoon, everyone. Hi, how's it going? Thank you for coming to our session. My name is Allan Livingston. I'm a product manager on the G Suite team. And today, my colleague, Chad, and I are going to run you through the benefits of going cloud native and how that impacts TCO. So now, TCO is a relatively heavy subject. So rather than diving right in to looking at productivity suites, I'm going to try to think about this in a more general context and something that we can probably all relate to. Something simple– the light bulb. OK? So we all understand the light bulb. And so we're looking at a nice, let's say, 100 watt incandescent light bulb here. And what is the TCO of one of these using sort of standard US power rates? Anybody? Any guesses? What the total cost of ownership of that light bulb there would be including the purchase price and the electricity costs? Any guesses at all? AUDIENCE: $50. ALLAN LIVINGSTON: Not bad. $32.

$50 was the guess– and $32. In some markets that would be correct. So you got $32 there from one of these guys. And that's kind of a lot. It's not great for the environment, but it's also a lot of money when you think about it. $32 for $1 or $2 light bulb. So these came along, right? Compact fluorescents. And so the idea behind these is very simple. They're going to be a lot more energy efficient, maybe six times more energy efficient than a similar light. Any ideas what the TCO on one of these is going to be for the equivalent lifespan? They last longer, so you've got to kind of prorate it down. Any ideas? Rough costs including the purchase price? About $10 is about right. And so it depends on what you get it for but about $10. And so significant savings, right? And the payback period on them is pretty quick. It's about six months. Depending on, again, you know, the sort of a typical set up that you're going to see. So this is a project that you would– you know, if you're thinking about investing in a project and you're thinking rationally, it's probably a pretty good investment to make– these light bulbs.

But then you're going to say, well, there's the time value of the money. It's the payoff. And again, I used some variables here, but unless you're financing it at 87% or higher rate, then it makes sense to get it. It actually makes sense to just buy them on your credit card and then not even pay the bill. That's what a good investment they are. But there's one thing that's kind of weird. And you see this– is these things never really caught on. And they've been around for– well, I've got 25 years here, but they've actually been around longer in other form factors. And you see them in 2000 kind of coming up, and you've actually seen them kind of back down a little bit here. This is US adoption data. It's actually blended, I think, Connecticut and California. But you see them coming down, and then you see these kind of weird bumps along the way. And what was happening the whole time is there were a lot of government programs and incentives to just incentivize people to get these things.

And even though the TCO on them and the payback was already ridiculously high, you know there were all these incentives where you get them cheap or things like that. But then the retailers would find people would come back, they'd get one cheap. And then they'd go– you know, they wouldn't like it, or they'd come back and the program wasn't there, so they'd recommend putting incandescent back in. And there was another problem with them, which was they're actually a deficient product. Right? And they're deficient for a whole bunch of reasons. Most people find the light quality in them not very great. They flicker a bit. The form factor, they tend to stick out. They're getting better now, but they actually tend to stick out. A lot of the older ones had slow start up, and they're not compatible with dimmer switches and some other applications. So you look at that, you've got a product with compelling TCO arguments. Really far and away a slam dunk as far as investment and yet it struggles to catch on.

So TCO by itself isn't enough, which brings us to this guy here. LED light bulb. So I ran the same kind of numbers on these, same power rates. TCO is a bit better on this– about $7. They're a little more efficient, and they last longer. So you can amortize the cost over longer, and so it brings the TCO down. They were already compelling– compact fluorescents were already compelling. This is a little bit better. And you're financing, again, as long as your credit card– which I hope it isn't– is charging you less than 112% a month, you're good to just charge it on your credit card and not even pay the bill back. It's such a good investment. So solid, solid investment. So it's got the same kind of financial characteristics, but it's actually seeing better adoption. So this is the same data overlaid, where you've got the blue is the compact fluorescent, and then the red is the LED light bulbs. And you're seeing a very sharp uptick in the LED adoption and a corresponding decrease in the compact fluorescent.

And it's not explained by that relatively modest difference in TCO. It's clearly explained by the product characteristics themselves. It's better light quality. Form factor is great. You can identically match incandescent. You can also have other form factors, startup's good. And they're compatible with dimmer applications. The dimmer switch is another application. So it's just a superior product, right? It does exactly what the incandescent light bulb does, but it's got a better TCO. It's not an inferior product. It also does other things. Because they're so small, you've got new formats. And the extreme long life of them allows you to permanently put them into some fixtures, and you don't even have to have them to be removable. So it looks like a product with a really strong runway because of this. So let's talk about another one. Well, let's kind of lay this out. And so we've got our TCO getting better as you go up and the product benefits getting better as you right.

Nice, simple two by two. Really, what it looks like is you need both in this world to be successful. You need to have both a compelling product that's really usable and really good for the purpose and TCO. Because people aren't just number crunchers. They need something that makes sense. Let's talk about another common case. We've got ourselves a hybrid car. And so what do hybrid cars do? Well, typically they've got a bit of a premium over the conventional cars, and they've got a bit of a better fuel economy. But with the way gas prices are right now, it's actually not really a compelling TCO buy. And so this is a study that was done on 2016 models, a projection with current gas prices. And it found that only 24% of hybrid cars had a projected TCO lower than the equivalent conventionally fueled cars, because the premium was just too high for the savings. And all things being equal, some people prefer hybrids, some people don't like the way they drive and things like that.

Let's even just call them equal. That itself is not a great trend for hybrid cars. And you see that in the relative penetration of US auto sales. And so they actually are coming down as the fuel prices come down. So even the price is probably equal, or some people for one way or the other. But without the TCO element there, it doesn't make a whole bunch of sense to ask people to put that investment in ahead of time and then not even see the payback. There's certainly environmental benefits which appeals to a niche of the population, but the straight dollars and cents just don't bear it out. And so it would seemed like if hybrid cars stayed, don't get their characteristics fixed up, that they don't have a great set up. So with that out of the way– just kind of some framing. Let's apply this to a lot more complicated subject which you guys actually came here. Because I'm guessing you probably didn't come down to the basement of the Marriott on a lovely afternoon to talk about light bulbs.

So we're going to talk about Sass applications and productivity software. And so just like light bulbs, we've got to consider more than just the cost when we're looking at this. You've also got to look at the product benefits, the fit, and also what kind of new possibilities it opens up, the product, just like we saw with the LED light bulbs. And so when we're thinking about the G Suite, we're thinking about three primary areas here. There's the productivity enhancements. There's cost reductions. And then there's replacement savings that you're going to get. And so with that I'm going to ask my colleague Chad to come up and run us in a little more detail through the way that we see the G Suite delivering productivity benefits that really help the bottom line. CHAD TYLER: OK. Thanks, Allan. We wanted to start off by talking about productivity because these benefits aren't always as obvious at first glance, but they're a key part of the value that G Suite offers.

We want to think about things like what is possible in G Suite and the cloud that wasn't possible in an on-premise or even hybrid environment. How can we take collaboration and make it a really powerful tool that can make people more efficient and more effective? And how can we engage and connect with even a remote and deskless workers so that we can bring them in and make them more– closer part of the team. And so these are some of the things we want to think about as we go through this next section here. The first thing that I want to touch on is real time collaboration. Forrester recently did a study that showed that when multiple editors can work on the same document, slide, or sheet at the same time, it actually reduces the amount of time it takes to create that content by 20%. This translates into about 15 minutes to two hours per employee, per week, depending on the type of role they're in or how collaborative that employee tends to be. But beyond just the time savings, they also found that this type of collaboration makes people– makes meetings more effective as well.

Because since people have been working on the same document together, they've seen how the content has evolved, and how they've gotten to where they are. They understand the history of it. And they're also all looking at the same version of it. So when they get to a meeting, they spend a lot less time working to try to get on the same page and trying to make sure everybody's looking at the same thing, and they can dive right into the core part of that meeting and the core purpose of the meeting. So both of those have a huge impact on how effective employees can be. I also want to hit on Hangouts as well. Because what Hangouts does is it creates an environment where it's very easy to engage with other teammates over video. Where you can have those face-to-face chats really quickly instead of having to rely on slower forms of communication, like email, where there tends to be some latency and some lag between asking questions and getting answers. So Hangouts is also a key part of the real time collaboration within G Suite.

Mobility is also something I want to touch on. In today's world with the prevalence of mobile devices, it's more important than ever that employees and people within an organization can access the information they need from any device and from anywhere. And G Suite enables this. Whether you're on Android, or iOS, or a laptop, using Google Drive your files are there at any time, and they're easy to access, they're easy to work with. So mobility is something else that's really key. Beyond just being able to access the information though, G Suite also enables people to use their own personal devices. So instead of having to adapt to a new device and the differences between that and what they normally use, they can use something that's comfortable to them and be more focused on what they're trying to do and less on how they're trying to do it. I want to hit on Hangouts again here, specifically how management communicates with their teams. Forrester also found that when management effectively uses Hangouts, they can reduce the amount of travel time they have to do by 40%.

So beyond just having a reduction in the time they have to spend traveling and the budget that goes along with that, that let's management focus a lot more on their important tasks than jumping on an airplane to try to fly somewhere to communicate with their team. This is just a quote by Keith Chisholm, who at the time was a program director at Rentokil Initial. And they actually saw this benefit within their company. They saw that when they started using Hangouts in the leadership team, they were able to communicate with their team and really connect with them and have a really good understanding of what was going on with their team. And at the same time they were able to reduce their travel by 40%. This, again, beyond just the big budget decrease that that had on their company, it also increased the communication and the impact that leadership could have while still giving them more time to focus on other tasks that they needed to get to. Now, when I talk about social engagement, your first thought might not be productivity.

But what social, and in the case of G Suite, what Google+ does, is it enables people to form connections. Beyond the formality of a meeting or the brevity of a hallway conversation, it lets people share ideas, and it lets them share their interests with each other, regardless of their location, regardless of their role. So as they start to form these more social connections with the people that are around them, they become more and more engaged in what they're working on and who they are working with. PwC did a study that showed when employees are engaged, they actually are 30% more satisfied with their jobs, and they generate 32% more ideas. So what social engagement does is it makes people more invested in their workplace. It makes people more excited about what they're working on. It increases the retention of people staying within their workplace and staying within their organization and helps them to have a bigger impact because they're more invested in what they're working on.

They're more invested in the goals of that organization and what they're trying to accomplish. So social within an enterprise can have a huge impact, a profound change in how employees feel about where they are and what they're doing. And then the last thing I want to touch on in this section is extensibility. Through the APIs that are offered through G Suite and a tool called App Maker, organizations can integrate their systems and infrastructure to be part of the suite. So basically that means that all of your information and all of your data can work together to create solutions that weren't possible before when everything was segmented and segregated. I want to touch a little bit more on App Maker, too. Because what App Maker is is it's a tool that enables organizations to very easily create powerful tools that can automate processes that employees and people would normally do over and over again. So App Maker takes those redundant tasks that people are working on and automates them so that they can focus on things that have more impact and are more central to the goals of the organization.

App Maker's something that we're really excited about. And I encourage everyone– during the product roadmap session on Friday, they're going to be doing some demonstrations of App Maker, and how you can use it, and how you can build tools with it. I'd encourage everyone, if you have a chance to attend that, because it's something that we believe can really change how people work. Now, I've talked about a lot of classic examples of productivity. I've talked about how we can take what people are doing and make them more efficient at it, how we can kind of change how they approach problems. What I want to do now is talk about how we're kind of going beyond productivity. How we're you using Google Smarts and Machine Learning to start to remove some of the tasks that people normally would have to focus on. And honestly, this, in my opinion, is where things get really exciting. Because we are just barely starting to scratch the surface in this area. We're barely starting to look and see what's possible.

But as you'll see, even these early examples can really change how people work and can make them more productive and more efficient. So we're excited about what we can do here and what we can bring to the market. But again, these are just the start. So the first thing I want to touch on is what's called Sheets Explore. What Sheets Explore does is it enables people to use real world language to build a query. So instead of having to go into a sheet and figure out what formulas they want to use, and how they put those formulas together to answer a question, they can simply type the question that they have, and sheets will build the formula for them. Now, this is hugely important. Because what we have found is that only about 30% of the people in an organization know how to effectively build a formula and how to answer a question based on data that they have. So if you think about that, that means that 70% of the people in your organization are answering questions and are making decisions with less information than they could and should have.

That's huge. So Sheets Explore opens up all the data that an organization has to better inform and to better answer questions that people have. We think this will have a profound impact when widely used on how people look at data. And you think about how much data we have nowadays, and how that's just going to be more and more as we move forward. We're really excited about the impact that Sheets Explore can have. The next one is called Slides Explore, or sometimes called Auto Layout. And what this does is it allows people to put images or text on a slide, and then use this feature to help them organize the slide and help them figure out the what the layout should look like and build a deck around it. What we've seen in measuring this is that when people use Slides Explore, they create their decks 60% faster than those that don't. So that's a lot of time. When you think about building a deck and how much time you spent on it– Slides Explore helped me with this deck, by the way.

But you think about how much time you spend building a deck, and think about saving 60% of that time. Instead of focusing on how you're going to tell the story, focus on the story you're telling and the content you're putting in and making sure that you have the information that you need to get your point across. It, therefore, goes into making meetings more effective. It goes into making sure that you're telling the story you should be telling, and lets you invest that time into something that's more meaningful to make sure that you're helping other people to understand your point. Another kind of seemingly simple example– within Calendar there's features that we're doing, such as conflict assistance, automated room booking and scheduling, finding details about rooms so you can understand what different functionality that room might have. Very simple things but things that used to be kind of a pain point to figure out where you needed to have your meeting, and whether there were conflicts, and who needed to be there, and what time they could be there.

And so we're taking some of those pain points and removing them and making it much easier to schedule a meeting. And what we've measured is that these small improvements save about three minutes every time someone schedules a meeting. So you think about how many meetings you schedule throughout the week or throughout the month, and you take three minutes for each time you did that, and you put it back in your pocket to spend on something more important. Something that has a greater impact, something that helps you improve. So this, again, a seemingly simple example that just goes to take more of the pain out of doing your job and making sure you can focus on having an impact. This example is called Smart Reply. What Smart Reply does is it generates simple replies to emails based on the content of the email. So a simple thing– but what we've seen is that within inbox on mobile, 10% of all replies are done using smart reply, which translates into 15 minutes, per person, per day.

Again, something where we're taking time out of what you would normally be typing on your mobile phone to try to respond to an email and making it much more simple. Beyond just the time savings, though, it also enables people to respond more quickly. So when you read an email– I can't think of how many times I've read an email and said I don't have time to respond right now and that I'll come back to it later. You think if you could just respond very quickly you'd unblock the people that are waiting for the information that they need to continue forward. So beyond just the 15 minutes per person, per day, we're talking about unblocking entire groups of people so they have the information in context they need to move forward. And then this last example that I want to talk about in this section is actually a really big one. It's called Cloud Search. And MacKenzie did a study that showed that knowledge workers spend about 20% of their time looking for information.

20% of their time– that's the equivalent of one out of every five people not showing up to work in a given day. You think about the impact that that has of people just searching for things and not being able to find them. So Google– we made our name by organizing information and making it easy to find. We started by doing that for the internet, and Cloud Search is us starting to do that for your organization. We're taking all the information that you have in different systems, in different areas, and we're organizing it, and we're making it easy for people to find. But beyond just search, what we're also doing is suggestions and notifications. So imagine that you're preparing for a meeting, and you can automatically be suggested meeting notes from the previous time you met with the same group. You can be suggested content that was attached to an email or the meeting invite before the meeting was held. You can be suggested different content about things that you're working on that are relevant to the topic of the meeting.

So instead of having to go and look for that information and to try to prepare for your meeting, it can automatically be there, waiting for you and ready. Which means you go, again, to this meeting more prepared. The meeting is more productive because everybody had the information they need beforehand. And you make sure that you accomplish the goal of why you're there. Another important part about the suggestions and notifications is that a lot of times people just don't think to search for information. They don't think about– they don't know what they don't know, you could say. So they might not be thinking that they need to go look for information about this topic, but we could automatically suggest that it might be relevant based on who you're meeting with or why you're going to this meeting. So we're unlocking more information, we're making it easy to find, and we're making sure that you think about it and it's there for you. So I've thrown a ton of numbers at you.

Almost every slide had a number on it. So I just wanted to put it all there for you so you could look at it. It's a great picture slide. I see a lot of people taking advantage of that. But I don't want to go through this line by line right now, I just want to touch on a few of these. We talked about how we're taking 20% of a knowledge worker's time, and we're reducing that to a fraction. So instead of searching for 8 hours a week for the information they need, they can simply search for it and find it, or it can be suggested to them without them even thinking about it. We're taking 70% of the organization that doesn't have access to the data analysis they need, and we're making it available for them. We're informing them and helping them to make better decisions. We're saving 15 minutes per person, per day, sending email, making it very simple for them to send that off. And by enabling people to work together on documents, we're saving 20% of their time in creating those and helping them to be more prepared and more in sync when they go to that meeting.

So productivity really is something that you should think about as you think about total costs. All of these things are things that you're currently spending money on in your organization, and it could be more effective. That could be more productive. You could have that time back. And so we'd encourage you, as you think about total costs– and a lot of times when you think about cost, you think about solid numbers that you're saving on servers and infrastructure, but we'd encourage you to also think about productivity. Because as Allan talked about, it's not just about the ROI over time of the light bulb. The CFL light bulb did not take off because it wasn't convenient, it didn't help improve the product. And so productivity here is what we want you to think about first. And then I'm going to pass it to Allan so he can talk a little bit more about the costs and replacements that we're offering through G Suite. ALLAN LIVINGSTON: Thanks, Chad. Yeah, and as Chad said, we wanted to start with productivity.

Because these numbers here have the potential to be really transformative to the way that companies operate. And you see that when you see traditionally run companies to fully cloud native companies, the real difference in productivity. And it helps to explain a lot of situations where people are working a lot and not getting things done. It's because they're spending their time doing these things that are not productive. And the change, and the move to the cloud, and the increasing prevalence of useful machine learning, has the potential to transform the way people work. So we think it's really the most exciting and most compelling element on it. Now I'm going to switch and talk about more traditional TCO elements, which is cost reductions and savings. Because they're substantial as well and have historically been the primary element that people looked at for the cloud. So we talked about– and here's a good quote we've got from a customer. And so you've got 15% increase in productivity and at 70% cheaper.

OK? And where does that come from? Well, IT savings is a great element. The average on-premise system has very low utilization. It's really not safe to run your servers at a very high utilization. You've got to keep a lot of spare capacity, because you're going to have really spiky demand. Everyone's coming online at the same time, everyone's in at 9:00, no one's there on Sundays. These type of things, right? Or you're going to have other ones– you've got to have that slack in the system. So it's really expensive to maintain. It means that if you're aggressive, 82% of your capacity is IO most of the time, maybe 88%. But it's an awful lot. And it's not just the cost of the hardware– it's the power, it's the space, the maintenance as well. And the cloud architecture's superior in that regard, because we amortized it globally. And that takes a spikiness out of it. And it really allows you to more adequately and provision more correctly.

So that you can provision the amount of capacity you need, not the amount of capacity you might need at one point in time. It also allows IT Com staff to focus more on the core business. If you think about it, running data centers is not the core business of most companies. But if you're on-premise, that needs to be a core capability. You've got to be good at running data center scalably. And that focus takes away, necessarily, from the focus on the core business. We've heard some examples of that this morning in the Keynote, where companies were able to shed that. I like the Disney quote– they want to tell stories. They don't want to run a bunch of servers, and they can focus on that piece. And that freeing the IT staff to focus on actual business problems is really valuable. Here's another example we saw from City of Monterey– 30% IT cost savings just from these kind of elements that I talked about. Security is another big one. Google's got over 700 world class security engineers.

You can take those 700, and they're working together to secure everything. But when you're on-premise, you don't have 700 engineers. And it's sort of like what Eric Schmidt talked about today. Is just not a good idea. Don't try to build that. Don't try to go hire 700 world class security engineers to work full time on securing your on-premise data. But what it allows– by going to the cloud companies can save all of that. They can also secure their data more and be more effective. The idea is to remove the physical boundaries that you have in your company. So traditionally, companies were kind of locked in. If you're an on-premise, you can access the data. That's not really acceptable for nowadays, and so you've got to get rid of that. But if you do that, then you've got to secure everything because you've got all these threat vectors can be coming in. So you can go and hire 700 security engineers, or you can deal with occasional breaches. And data breaches are extremely expensive to companies.

For a global company, the average data breach costs between $3.5 and $3.8 million. But obviously, many data breaches that we see are actually more than that. They're an existential threat to the company themselves– losing all of your customer data, things like that, lack of trust, the loss of trust. So this is a really key element here. There's sort of the superficial savings you see, and then the other side, the downside risk that you've got if you don't have adequate security. And agility is great. And so this is sort of the other side of the utilization piece that I talked about. In an on-premise world, you need to provision for your expected peak demand. So whatever peaky time you've got from your workforce, you need to provision that plus a little bit of a buffer. But you don't really have any agility there. And the example this morning of– I guess we lost our slides, but I'll keep talking. So the example this morning of Pokemon Go was a really good example.

So the creators of that experienced load that far, far exceeded what they expected. Immediately they exceeded their lifetime projection. I can't even remember the multiplier that it was. But if you think about that, they wouldn't have been able to deal with that in an on-premise model. So that agility allows you to explore new businesses, and it allows you to also focus on expanding quickly into new markets. And at this point, I'm actually running out of content. So I'm hoping that we can get the slides back. You have those cues where you think of the next thing that you're going to do. I shall bravely soldier on here. Actually, I was going to talk about the release process as well, because that came up this morning on the agility side. And it was same thing, the creator of Pokemon Go. If you think about how that works, they were able to not focus on building out this IT infrastructure– as was Snap, as well, for Snapchat. And what that allowed them to do is it allowed them to have a much faster development process because they were freed from all of that other load.

So that agility brings you these benefits of being able to release software and develop faster and solve customer problems a lot faster. And I think we're almost there. We're almost there? Good. And another one that I wanted to talk about was change management. Change management is a cost, obviously. Anytime your employees are going through a change, you've got to manage that change. You don't have to manage that change, you can let the employees deal with it themselves, but oftentimes that is not advisable. And so one of the concerns people have sometimes when they're moving the cloud is they think about change management. How expensive that's going to be, that it's going to be a big undertaking. And I think you heard some examples this morning at the Keynote. Where you've got some customers coming in and activating 20,000 employees over the weekend or things like that. And what we've found with customers moving to the cloud is because the experiences are kind of what they're used to and what they expect, the change management process is really, really easy and simple.

And in fact, the average payback– when we looked at that Forrester study that Chad talked about– the average payback for a change management program was less than a month. So even more ridiculous than the payback that we talked about for the LED light bulbs. That effectively it's instant payback. There's very lightweight change management process, you roll people out over the weekend, you go, and then it's really effective. And so that's something that we think is– very much plays into. Here we go. Perfect. Thank you. We're back on track. Almost– excuse me. Could we– this one, not quite. OK. So let's go on and let's talk about replacement savings. The other element, and this is the real advantage of moving to a suite versus point solutions, is replacement savings. And over the past couple of years, we've been really extending the G Suite to provide more capabilities, more capabilities that businesses need. The math on this is getting easier and easier as we go through.

So G Suite consists of a whole series of different applications that work seamlessly together, and we've introduced new ones very recently. Chad talked about G+, talked about Cloud Search. Those are both recent additions to the G Suite. We've also got Keep is in here. And we also have a lot of admin capabilities that we don't show as logos here but are super useful. So let's talk about data loss prevention. Data loss prevention allows you to set customized policies, so that depending on the content that you're seeing in documents or e-mails, you're controlling the sharing settings, or who can send what to where, or how you trigger a report on that. And the cost of data loss prevention software varies, but sort of a typical market example would be around $2 a month per user. And that's just included in the G Suite. No. We're not– the clicker, no, we're not. So we're getting there. It doesn't click through. OK. So the next one– let's talk about e-discovery.

So in order to comply– companies have to comply with legal requests and data discovery elements, and so they need an e-discovery in our cloud native system. And the G Suite includes that with Vault. And we looked at the market, and we found that systems like that can cause– the cost is variable again, but a lot of times a market reference price would be about $60 a year per user. Which again is pretty material. Let's see if we can do that. OK. Here we go. Perfect. And so there's e-discovery. Let's keep going on that. Another one's identity as a service. And so there's this transformation that's happening in the cloud, in IT infrastructure right now. Obviously, everyone's moving from an on-premise way of doing your directory into the cloud. And you can either buy a point solution for that, or you can have one integrated with the G Suite. And the price of this is actually quite variable. You're going to see prices anywhere from $12 a year per user, up to $72 a year per user, depending on the functionality.

And we're continuing to build out these capabilities in G Suite. So the advantages are– you go with the G Suite, you can get rid of all of these category items. You just cross them right out. One more– mobility management. How are you securing your devices? I said we're in multi-device world, you need to secure those. You need to set policies on your devices. You need to control what kind of applications are installed on your devices by your users. You need to occasionally remote wipe them if they're lost. All that is provided by Enterprise Mobility Management. Some people would traditionally have called this Mobile Device Management. Average market price you're seeing is around $54 a user per year. So all that adds up to an awful lot. We talked about the productivity savings. We talked about the IT cost savings. And we also talked about the replacement cost savings. So Chad's going to run you through the total cost, TCO calculator, in a little bit more detail and how that all fits together.

Thank you. CHAD TYLER: Thank you, Allan. Sorry. OK. There we go. Thanks, Allan. So we've talked about a lot of costs and a lot of things that feed into costs. However, total cost of ownership, it varies largely between companies based on where you're coming from, or what you're trying to do, and where you want to end up. So it's hard sometimes to understand exactly what TCO will look like in your specific organization. And that's why we built a total cost of ownership calculator. What this allows you to do is enter in your company information, details about where you operate, what you're trying to do, how many people you have within your organization. It lets you enter in what you're using right now as far as software hardware and productivity, so that you can enter in things that are very specific to your company. And then what it does is it generates a picture of what you might be able to expect switching to G Suite. So it breaks things down based on where you might see savings, what your return on investment might be, and kind of gives you a better picture, very specific to you, what you might expect.

And so it's a little bit more applicable directly to what you're coming from and what you're looking at. So this is available for you to use. The easiest way to find it is probably just to go to Google and search for G Suite TCO Calculator. The first two results that come up will be two different versions of a calculator that you can use. As you can see by the purple, I've clicked on both. But the first version, it relates to the Forrester study that we've referenced several times throughout this presentation, based on some of the results they've found, and more to productivity and different elements like that. And the second one is more general purpose, where you can see what you might expect coming from on-premise, or hybrid, or a different cloud provider, and just kind of gives you a better picture of the cost that you could save and the impact that G Suite could have on your total cost of ownership. So we'd encourage you to go and check those out just to get a better picture of some of the things we've talked about today more directly applicable to your specific company.

So I want to pass it back to Allan so he can summarize some of the things we've talked about. ALLAN LIVINGSTON: Great. Thanks, Chad. And so just to recap where we're at. We have these three areas that we wanted to focus on TCO– productivity, cost reduction, replacement savings. And we created a convenient cheat sheet here at the end, so let's run through these. And the productivity benefits we talked about and Chad had talked about in detail– and in my mind, these feel like the most compelling elements of any cost strategy. You're talking about helping employees– and these all add up. So reducing the amount of this 20% that information workers spend finding the correct information, or in some cases, not finding it, because that can be even more expensive. Helping people spend less time sending email. And Chad only talked about one element of that, we're doing a whole bunch more on inbox to even bring that down further. Helping you spend less time scheduling a meeting.

Average information worker spends up to 300 minutes a month scheduling meetings. So bringing that down and all the frustration that that brings with it. And the suboptimal scheduling– right? The computers are much better at these kind of scheduling problems than humans. And so the productivity gains are there. Being able to complete slides fundamentally faster. And this one is really interesting. Because I remember when I first saw this feature, I was a little skeptical of it. What kind of did it for me was– so I was at home, and I have two elementary school children, and one of them was doing a report. And he was sitting there getting the slides lined up and getting all the images lined up. And the other one walked by and looked at him and said, just use Slides Explore already, and rolled his eyes and walked away. And it told me two things– one, I've got to do a better job in parenting overall. Kind of got to watch that attitude a bit. But then the other point was just how easy this stuff was to use even for kids.

And that it was so obvious to them the value of it. And so that's a huge element there. 40% reduction in travel costs– I, myself, actually travel quite a lot less now because of video meetings. I've found that the way that you work now versus the way you'd work five years ago or 10 years ago changes. And that's really, really effective. More employee satisfaction, more for retaining, people analyzing data. So you've got more people analyzing data, and the people that already knew how to analyze data can do it much, much faster and can do a better job. Less time creating documents. We didn't even talk about the fact that the documents are better because you're doing real time co-editing on them. So they're actually higher quality, and they're more reflective of the team's output. So huge benefits here on the productivity side. Cost reductions– the utilization factor that is just inherent. There's an inherent difference in a centralized cloud model and a siloed on-premise model.

There's really no way to get around that. That's one of the first reasons that cloud caught on. And it's obvious, you just can't change the math. Taking a bunch of spiky loads and averaging them together you get a flatter load that allows you to have better utilization of resources. Being able to specialize– it's kind of strange that we've ever got to this model where it was expected that every company had to become an expert in running a data center. That seems like an odd thing, right? Like every company is an expert in every other field, why would they have to be an expert in running a data center? It's a very specific, niche task. And there's not really much reason for a manufacturing company to be an expert in running a data center. And so you can specialize and your IT staff can focus on solving problems that are relevant to your industry. Security– we talked about the threat and the importance of security is going up all the time. You can look at all of the recent data breaches that are in the news.

Everyone knows that's just the tip of the iceberg. It is happening more and more. And this is an existential threat to companies. And so they've got to make sure you're staying ahead of these ever increasing and ever more sophisticated security threats. And then, of course, agility– the one thing, again, from the keynote this morning that really struck me was the stat that Diane gave about how the average age of companies now is significantly less than the average age of companies 20 years ago, 40 years ago. And you see that. You see whole industries being turned over and the players changing. And so you've got to be agile. You've got to be able to adapt to those changes. Again, you can see them as cost savings, but they're also just fundamental to being successful in business. And then the last piece, this is a little more straightforward, the math. Just flat out replacement. Replacing point solutions with a suite. It's more efficient. It seems to be the way that the industry is going, and we're firm believers in that.

We obviously support all of these categories inherent in the product, and we partner with the best in class people everywhere. But for a lot of people, an integrated package is going to work really well. And so with that I wanted to wrap up and say thanks, everyone, for coming. [MUSIC PLAYING]


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Total cost of ownership is a key consideration when working with any enterprise solution. With G Suite’s cloud native, streamlined approach, costs can stay low while productivity rises. In this video, Allan Livingston discusses the cost benefits of going all in on the cloud rather than remaining in a hybrid environment. He also looks closely at the cost benefits of a fully integrated collaboration technology set and integrated security and management capabilities.

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