Avoid Unnecessary ECM Costs with Google Drive (Cloud Next ’19)


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have been other sessions at this conference that have
gone over the Google Drive roadmap in detail. I’ll flash those session
IDs up in a few slides if you want to go back and
look at the videos from those. This particular
session is some detail about how you can save
on IT content storage costs using Drive,
regardless whether you’re using an existing
on-premise filer, network-attached storage,
on-premise SharePoint, or one of our competitors
like Box or Dropbox. This presentation is all
about the dollars and cents, so I hope you like
dollars and cents. OK. So throughout this
presentation, we are going to use a very
realistic but hypothetical customer, creatively
named Acme Holdings, Inc. They’re a global enterprise
with 20,000 employees. They have $3 billion
in annual revenue. They operate in most
regions around the world. Like most companies, their
productivity and content platform is still
hosted on-premise. In the session, we’ll
diverge from the hypothetical and we’ll actually
give you a comparison against Dropbox and Box. But when we total up the
numbers in the scenario here, the assumption is that Acme
is using an on-premise system. And then key to
the economic model that you’re going
to see in a minute, we’re assuming that Acme stores
25 gigabytes of productivity data, on average, over the
course of the year per user. Now in this respect,
this scenario diverges a little bit
from the average case because we’re trying to make
the numbers that we’re showing you really conservative. The average company
in this segment stores 15 gigabytes of
data per employee average over the course of the year. For this presentation,
we’re using 25 gigabytes. That makes the scenario
conservative so that if your organization
chooses to adopt Google Drive, you can be confident
of realizing savings at least what we’re
going to show you here. So like most
companies, as you’ll see in this presentation,
Acme overpays for storage. And the savings that
they’re going to realize are well into the eight
figures when we total it up by the end of this presentation. There are multiple reasons that
Acme is overpaying for storage. Number one, seat-based
licensing models that are prevalent
in the industry require Acme to pay regardless
whether their users are actually using the software. And if you think about your
existing enterprise content management system,
something like SharePoint, these are some of the
least adopted solutions that IT has ever rolled out. But you’re paying for
those seat licenses, regardless whether
your employees actually use the software. Number two, you have to
budget for on-prem storage, redundancy, data durability,
read and write throughput significantly in excess of
what your users actually store. Then on top of that, you
have maintenance, support, migration costs, and
then many indirect costs that are very real when your
CEO is looking at the business. So we’re going to break
that down and show you how Drive Enterprise solves
for those excessive costs. When we, three years ago, set
out to build Drive Enterprise and make it the
leading cloud content platform in the
industry, we didn’t just think about the feature set. We also thought about,
what is the business model that would make Drive
Enterprise the most customer-friendly, the
most affordable solution in the industry? So we’ve done both of those. And this presentation
is going to focus on the economics and
the business model, but I want to just do a
quick sidebar for anyone in the audience
who’s not familiar on what Drive Enterprise is
and what this feature set is to catch everyone
up, and then we’re going to go into the economics. So number one, why this might
be interesting to you, and then I’m going to give you the
specifics of what it is. This would be appealing
to you if you’re really intrigued about the
potential for G Suite to transform your organization,
make your organization more nimble, more
collaborative, to appeal with the new generation that’s
coming into the workforce who have probably used
G Suite in school. But the prospect of
the change management to get off of legacy email
and calendar solutions is just too much for you. So if you want the
collaboration and you want the transformation, but
changing email and calendar sounds daunting,
Drive Enterprise is likely the right
answer for you. Drive Enterprise is Google Drive
plus Docs, Sheets, and Slides, plus our top-tier security
compliance and identity features from the G
Suite Enterprise SKU, and nothing else, sold
as its standalone SKU. There isn’t Gmail. There isn’t Calendar. There isn’t Hangouts
Chat, Meet, and so forth. It’s really a dedicated
offering that’s a cloud content
platform that’s designed to coexist with the rest
of your IT environment. Now, if you’re
familiar with Drive, possibly your kids
have used it in school or you use Drive in
your personal life, you might have some
healthy skepticism, which is OK, about whether
Drive really can replace your existing ECM system. If you’ve only used Drive
in your personal life or seen it in your
kid’s school, you haven’t seen the full
enterprise-grade version of Google Drive. So I’m going to run
through six quick bullets. Like I said, there are two
other hours of presentations at this conference that
go into detail about all of these capabilities,
but we’re going to try to do this in
two minutes and show you how Drive really can replace
your legacy ECM platform. Number one, we’ve rebuilt
Drive from the inside out to be enterprise-grade. At this conference last– not last year, two years ago– we announced the
availability of something called Team Drives,
which is actually an enterprise-specific
content repository in Drive. That was a rebuild of
Drive from the needs of consumers for the needs of
enterprise from the storage layer all the way up to the API. Most of the user interface was
able to stay the same, keeping the ease of use that you
know from your consumer life, but everything
under the hood has changed to be enterprise-grade. Along with this, we launched a
new version of our sync client called Drive File
Stream, that’s just for enterprise accounts, that
allows you to mount Drive as if it were a
network file share. So you might have F colon
backslash in your organization right now, and F
colon backslash might be served by an existing
on-prem net app or EMC filer. On Friday night
when your employees leave for the weekend,
all their content is on F colon backslash. Over the weekend,
our AppBridge team, which is the leading
migration vendor which we acquired two years ago– AppBridge comes in. They migrate all your
content to Drive. We roll out Drive File
Stream in your organization. 9:00 AM Monday morning,
your employees come back, and what’s F colon backslash? They just think it’s the
existing net app or EMC filer. All their content’s right there. There’s no change
management, no retraining that needs to be done. But what’s actually
happened under the hood is that the content
has moved to Drive. You’ve mounted Drive as a
remote network file share. Everything works seamlessly
for your employees. But now, when one
of your executives happens to be on the
beach for vacation and they need access
to some work content, they don’t have their corp
laptop, they can’t get on VPN, they’re stuck. They call you. You tell them, pull
up your mobile phone. Go into your Drive app, and
all your content’s there. It’s an absolutely
magical experience, and it’s been rebuilt from
the ground up for enterprise. Number two, because
the Drive Enterprise SKU is sold without Gmail
and without Calendar, we know that an overriding
concern for you is this has to interoperate with the
rest of my Microsoft solution. So when I picked out
management of the Drive team, one of my top priorities was
something that I creatively called awesomeness for Office. We needed to make
Drive work incredibly well with your
existing Office tools. We’ve rolled out a number
of marquee features here. I’ll give you just a
couple of quick highlights. The animated GIF that
you’re seeing here is a feature that launched
to general availability at this conference that allows
you, in Google Docs, Sheets, and Slides, to open up a Word,
PowerPoint, or Excel file– the real version of that
file, not converting it into the corresponding Docs,
Sheets, or Slides format– edit it in Docs, Sheets, or
Slides from your desktop, from your mobile phone,
collaborating in real-time with the machine learning
artificial intelligence grammar suggestions, with
real-time collaboration, and all the other
features of Google Docs, without converting
the file format. No multiple versions created. So that’s an excellent example
of Office interoperability that launched to GA
at this conference. Number two, the feature
you see there mentioned called Presence? If you’re not using Docs,
Sheets, and Slides– if you’re using the real
versions of Word, PowerPoint, and Excel that are installed
on your end users’ machines and you’re storing
your content in Drive, Drive user interface now pops
up inside of Word, PowerPoint, and Excel and says,
oh, hey, Alex. You might not want to edit
this file right now because Jim has it open, and he’s
actively making changes. Then Jim saves his version. My version updates on my screen. And if we happen to make
changes at the same time, the Drive interface pops up
inside of Word, PowerPoint, and Excel, gives me a
side-by-side diff view of the two conflicting edits,
allows me to reconcile that, and then get everyone
back on the same page. We have a plug-in
into Outlook now, and you can do Google-style
collaborative commenting on Office files
across platforms, and it all integrates
together perfectly. So say that a lawyer
on my team has sent me a red line of a contract,
and he uses Word because he’s on the
legal team, and he’s going to keep using Word,
but I use Google Docs and I use Drive. I can pull up that Word
file in the Drive UI, whether it’s on my mobile
phone or on my desktop. I can highlight a
sentence and say, I’m not so confident about
this indemnity language. I can mention him
in the comment. He’ll get a ping on
his mobile phone. He could reply to my comment
right on his mobile phone. But what’s even better? The comment gets
written into the file, so that when he pulls up
the file in his real version of Word, he sees the comment
in the real version of Word. He can reply to
me there, and I’m going to get a notification
back on my mobile phone, or I’ll even get the
notification in Slack, if I’m using Slack. So we’ve built a bunch of
interoperability features. We have dedicated sessions on
this if you want to learn more. Number three, obviously for
Drive to be enterprise-grade, it’s got to be secure, and we’ve
made major investments here. We have machine learning and
artificial intelligence-powered data loss prevention
that will identify whether any of your
content has credit card numbers, or social
security numbers in it, or has other sensitive
language, like the words confidential or top secret. And we’ll prevent
that from being shared outside the organization. Drive File Stream and
the Drive mobile app now support mobile
device management so you can remotely
revoke or wipe a device that a user might have lost. This Drive Enterprise SKU
comes with the Security Center from G Suite, which allows
you to identify and remediate security issues and
security breaches, many sharing controls. We even support
end-to-end encryption. So if you’re subject to
regulations like EAR, where you need to be able
to place content in Drive with the confidence that
Google’s SRE or operations people under no
circumstances could ever see any of that plain text, you
can use end-to-end encryption with Google Drive. We also have physical
security keys that you can plug into your end
user’s laptop that essentially take phishing and
malware attacks to zero. So that’s security. Point number four. If you’ve only ever used Drive
in a personal or the context from your kid’s school, you
might have the assumption that it’s hard to securely
share to users if they don’t have a Google account. You either have the option of
turning on link sharing, which can be forwarded to anyone, or
you can share to a named user, but the email address
that you’re sharing has to have a Google account. At this conference, we’ve
announced and started to roll out a new feature
called PIN-verified Visitor Sharing that works the same
way your online banking system works, where you try
to share to an email address. That email address doesn’t have
a Google account associated. To you as the sender,
you don’t have to know whether they have
a Google account or not, you just punch in
the email address. As the end user, when you
click in and try to get access to that content, what happens
is that a challenge PIN is going to get sent to the email
address we have on file for you, and you have to enter that PIN
to get access to the content. And that means that you
can’t forward that invitation to anyone else and have
that user get access. So this completely takes away
any concerns about whether it’s easy to share with people
outside of your organization– your partners, your
suppliers, or vendors– if they don’t have
Google accounts. Next to last. We did a session yesterday
with Andrew Plunkett who’s the VP of digital
workforce at Airbus, and our new strategic partners,
K2, Nintex, and DocuSign, announcing major new
metadata and workflow capabilities for Google Drive. So the metadata rollout
started at this conference. This allows you to attach
structured tags and labels to your content in Drive. For example, if
you’re a legal team, you can create content
categories in Drive, like for a contract,
that allow you to track which regional
legal regime is relevant to every contract. Is this a European contract? Is it an American contract? Are the indemnities
standard or non-standard? Is this our paper or is
this the customer’s paper? And then in the structured
search advanced search area in Drive you can run
faceted structured searches across your entire
corpus, no matter what Team Drive that
content is stored in. In June, we’ll start to roll
out the approvals capability you see here, which is the number
one issue that historically blocked people
from migrating off of SharePoint and
onto Drive is you have to be able to pull those
lightweight approval workflows into Drive. For example, you can’t
get the sales proposal out to a customer until
the sales proposal has been approved by sales finance. That capability’s rolling out
to Drive starting in June. Works across desktop and mobile,
and it’s really seamless. K2, Nintex, and
DocuSign are bringing their more advanced
workflow capabilities to the right-hand
side rail of Drive. For example, if you’re
using these companies for business process management
in a regulated industry like mortgage
approval workflows, that can now
seamlessly integrate with content stored in Drive. And finally, and I think
this is most important, let’s think about what was
the original promise of ECM systems? The reason ECM systems started
to get rolled out 20 years ago is that you realized,
as a business leader, that your organization has this
wealth of knowledge that seems to just be collecting dust. You’re not taking
advantage of that. You have people across divisions
that are reworking content. People aren’t making connections
and identifying the information that they need to
get their job done. ECM systems like
SharePoint promised that they were going
to solve this problem, but I’ll show you
some statistics in a few slides that I think
everyone here intuitively knows, which is that
ECM systems have failed and not been adopted. And the reason they
haven’t been adopted is that they require
your end users to do all the work, to set up
all the tags and the labels, and do all the categorization. And you chide and scold people
to try to keep their content libraries up-to-date, but no– I’m seeing head shaking
in the audience. Right. No one does that. And these systems are
constantly out of date. With Drive, our
strategic mission is to deliver on that
promise but without putting the onus of all the manual
work on the end user. What we do, and I’ll go into
a little bit more detail, is we use Google’s
deep neural net machine learning systems to
identify, for every user, who are the collaborators
that matter to them? What are the topics that
are relevant to them? What are the topics they’re
working on right now? And we proactively
bubble up the knowledge that they need to get their
job done without putting the onus on the user. And I’ll show you some
stats in a few slides, but these are the most
successful machine learning launches that
G Suite has ever done. So that is what
Drive Enterprise is. It’s much more than
you might be familiar with from your
personal life it really is an enterprise-grade
content platform. You don’t have to only
take my word for it. The analysts clearly agree. If you get a copy of the
Forrester Wave or the Gartner Magic Quadrant
reports, these reports now clearly identify
Google Drive as one of the leaders in the space. If you want to learn more
about these, jump on YouTube. Look up these specific sessions. I’ll pause here just for
a second in case anyone wants to take a
picture of that screen. And then we will end our sidebar
about what Drive Enterprise is, and now we’re going to get into
the 9:00 AM accounting session. OK. So if you’re thinking about
replacing your existing on-premise content
platform like SharePoint, or a Dropbox or
Box installation, there are two kinds of
costs that you can expect to save with Drive Enterprise. Number one are the direct costs. These are the bills you get
every month or every quarter from your supplier that we
can significantly reduce or make go away entirely when
you get onto Google Drive. The second category
of costs that we save are the indirect costs. You don’t get a bill
for these every month, but if you have a data
breach, that data breach is sure going to have
some expense associated with remediating it. And if your employees are
wasting hours every week, there are obviously payroll
costs associated with that. So we’re going to go
through the direct costs. We’ll go through
the indirect costs. We’ll total up the direct. We’ll total up the indirect. All of this will be in the
scenario that we discussed– Acme Corporation. I’ll also put this
in percentage terms, so that if your organization
isn’t the exact same size or profile as Acme, you can
get an intuitive sense of what this might be for you. So number one, the first way
that we can save you costs are on seat licensing models. Seat licensing
models, I think, are one of the worst aspects
of this industry. You might have major seasonal
variation in your workforce. Say that you’re a finance firm
and you have a tax practice. If you have a tax practice,
this time of year, your workforce might
double or triple in size. And the way seat-based
licensing models work, you have to buy licenses
for all those employees. And you likely negotiate
an annual or a three-year contract, and you’re
paying for those employees, regardless whether they’re
there every quarter, every month of the year. And you can see that almost
half of organizations have significant seasonal
variation in their workforce. Seat-based licensing in
no way accommodates this. Even aside from seasonal
variation in workforce, most organizations don’t use
their seat licenses fully. You can see, if you look
on the left-hand side, the expectation of CIOs is that
only 70% of their seat licenses will get used. On the right-hand side,
you can see the reality. Based on surveys, it’s
actually worse than that. Only 62% of seat licenses
typically get used. And you can intuitively
understand the reason for this. People are sick. They go on vacation. They go on baby bonding leave. But also, projects are cyclical. Not every project
needs every tool at every stage of its lifecycle. You might need Drive
a lot right out. You might need it
less next month given where your project
is in its lifecycle. Seat-based licensing
models assume that the activity across
a project lifecycle is constant the entire time. Also, seat-based
licensing models assume that the tools are easy
enough for your users to use and that they’re
going to get adopted. And we know that
that’s not true. So look at these stats for
OneDrive and SharePoint. The active usage of these
existing content platforms is abysmal. When I gave a version of this
presentation at this conference last year, I was
trying to understand what the 40% satisfaction
number for SharePoint meant, and tax season was on my mind. And I looked at what the
satisfaction for the IRS is. The satisfaction for the IRS
is higher than the satisfaction for SharePoint. Obviously not a
loved system, and you see it reflected
here in active usage. But with a seat-based
licensing model, you’re buying this for
the entire organization and having to take
a bet, as the buyer, that this is going
to get utilized. In comparison, with
Drive Enterprise, you do not pay for unused seats. We are taking all the
risk on ourselves, and we’re aligning
all of the incentives. One thing that I’ve heard from
many customers and partners is that you get amazing
engagement from your vendor in the pre-sales process. They show you all the love. And then you ink the
deal, and what happens? Where are they? Well, you’ve just
signed a commitment, and now, incentives
are not aligned. They are going to
get paid, regardless whether your employees are
successful with the product or not. And with Drive
Enterprise, because you don’t pay for unused
seats, we are completely putting ourselves on
the hook to make sure that this is a great
experience for your users. We’re completely
aligning the incentives. So number one, you only pay
for monthly active users. You don’t pay for seat licenses. And we are pretty
stringent with ourselves on what counts as
an active user. Say you install Drive File
Stream on an end user’s machine. That end user puts
content in Drive, and every day Drive File Stream
is sitting there and doing some syncing back
and forth, and seeing whether any content is updated. That user does not
get charged as active. If the user just goes and
logs into drive.google.com or opens the mobile app, they
don’t get charged as active. The user actually has
to go into the product and get some value out of it
and do something meaningful– create a piece of content,
share with someone. That’s what gets them
counted as active. There’s another
component of this pricing that you see called
out there in green, which is $1 per 25 gigabytes,
and I want to explain that. If you buy from Dropbox or
Box, that is rolled right into your seat-based licensing– that storage cost. And what that means is
that you are overpaying. So from a human
psychology point-of-view, unlimited sounds great. Like who doesn’t like unlimited? It’s some peace of mind. I’m not going to have
to worry about it. But if you are like 98%
of corporations– and this is based on real data that
we have within Google. If you’re like 98%
of corporations, you are overpaying if you’re
buying unlimited storage. The dirty secret
of this industry is that if you’re buying
unlimited storage, what you’re actually doing
is subsidizing abusers. If you think about everyone
getting unlimited storage, and you’re an average company
that uses 15 gigabytes per year per user, there are going to be
some companies that are way off the right-hand tail
of that distribution, and those companies that
are all the way out there– they might be using
a terabyte per user. But they’re paying
the same price as you. And if they’re paying
the same price as you, that means you are
effectively subsidizing them. So if you’re buying unlimited
storage, you’re overpaying. If you’re like 90%
of organizations, you can pay $1 per
25 gigabytes and save an enormous amount of money. The average company
in this space stores 15 gigabytes
in this whole scenario that we’re showing you. We’ve modeled Acme
Corporation as storing 25 gigabytes of data. If you dig into that,
for Acme Corporation, assuming that they store
25 gigabytes of data, that $1 per 25
gigabytes only works out to be 11% of their total bill. So you don’t need
to dramatically overpay for unlimited
to get peace of mind for something that’s 11%
of your overall bill. This is not a major line item
that you need to optimize. OK. We’ll keep going from here, and
net out the total cost savings if you’re using the Drive
Enterprise active seats, “pay for what you
use” model versus Box. Multiplying out for
box, $6 million. For Drive, $1.5 million–
a 75% cost savings because of this business model. I really hope that our move
to consumption-based pricing drives the entire
industry in this direction because this is the
customer-friendly way to charge. Now this scenario
that we just went through is if your organization
is looking at, say, Drive versus Dropbox or Box. Now, let’s think
about the situation that I outlined at
the beginning where Acme is using on-prem
solutions like SharePoint. If you’re using
SharePoint, you have to buy and manage the on-premise
capacity for content storage. In this section, I’m just
going to talk about what it costs to put the bytes on disk. In the next section,
I’ll talk about what it costs to service, maintain,
and migrate all that content. So if you’re storing
content on-prem, there’s this 3, 2, 1 rule that
you might be familiar with that says for every terabyte
your users store, you need a store three
copies of your data on two types of media
with one copy off-site. If you don’t do this, you have
to be concerned about data durability and data loss. On top of that 3x
multiplier, you also have to budget
headroom for growth. You can’t just have 3x capacity
because your users are going to add more content
tomorrow, and the next day, and the next day, and bringing
all of those disks online has lead time and
lag, and you have to account for the
planning cycles. So to account for
the planning cycles, you need typically
to have 50% headroom on top of what you’re actually
currently storing for growth. And you can see this is
enshrined as best practice in documentation from
existing vendors. In fact, those on-prem
storage excesses are incredibly common
in the industry. 80% of data centers
are in this situation, and the other 20% aren’t
actually doing their job well, because this is the situation
that you need to be in. So if you think about
the 3, 2, 1 rule and then 50% headroom for growth,
assume that your two production replicas each require
50% headroom for growth– 1.5 plus 1.5 is 3– plus assume you can
actually get away with a 1x replica
for your tape backup, you’re now at a 4x multiplier
of what your users have actually created as to the capacity
that you need to have on-prem. In comparison, with
Drive Enterprise, you pay $1 for 25 gigabytes. If you want to think about
it in terms of cents, it’s $0.04 per gigabyte, and
there’s no notion of breakage here. If you use one gigabyte,
we don’t charge you for the other 24. We literally charge, on
an average-gigabyte basis, utilization over the
course of the month. Google, for this
price, takes care of all of your data durability. We do backups and
restores constantly. We run the backup system. This also includes all
of the excess storage that we create for your
free text search indices, for your structured
search indices, for the fact that we OCR every
piece of content that goes up to Drive. So you can scan a million
old paper documents. We will OCR all of that
so that it’s searchable. You get all of that for
this $0.04 per gigabyte. So now let’s look at
what the storage cost difference is between Drive
Enterprise and on-prem. This $168,000 figure comes
from the green section that I just presented
a minute ago. And now look at the simple
math for calculating the on-prem storage cost. You have a certain amount
of utilization per user. I haven’t talked
about this in detail, but you have to have a RAID
factor in there for read and write throughput. Your number of users,
the number of copies, and then the
cost-per-gigabyte we’ve taken directly from the
Microsoft total cost of ownership calculator. And then we’ve amortized
this over three years. So the figure that
you’re seeing here is not your one-time expense
for acquiring this storage, this is actually
what you have to pay, on average, every year to
maintain your on-prem content, and you can save
92% percent of that if you move onto Google Drive. So now let’s talk about
the maintenance, support, and migration costs on top of
the actual capacity for running this system on-prem. The rule of thumb is that
every dollar in capex results in $2 of opex. So now add a multiplier on top
of everything that I’ve shown you, and I’ll give
you an intuitive sense for some of that. $791 per year per year per
server for electricity. Doesn’t sound like
that much, until you look at Forester’s
total economic impact analysis for G Suite. For a company like
Acme, they need to operate 4,000 servers in
their corporate data center to serve their employees,
and 400 of those servers could be eliminated
by moving to Drive. All of a sudden,
that electricity cost alone is in the hundreds of
thousands of dollars per year. You have IT contracting
expenses on top of that. So here is a not
fully-itemized bill for what maintaining
and supporting your on-prem capacity
is going to cost you. I say not fully
itemized because this doesn’t include your cost for
training your IT professionals. This doesn’t include
your cost for going through whatever certifications
are required in your industry. All we’ve captured
here is the cost of buying and swapping out
hard drives when they fail, which Microsoft, in
the TCO calculator, estimates as being 10%
of your total cost. The electricity to run those
servers and the front-end serving capacity to actually
get the bytes off of disk and delivered to users,
and some IT contracting costs, and you’re
at $1.5 dollars for operating what
seems like just a reasonable SharePoint
on-prem content installation. None of those costs
exist with Google Drive. There’s one other
thing I want to mention in this section,
which is migration. All of the other costs
that I’ve discussed so far are annual recurring costs. But there are some
important one-time costs that can be big-ticket
items, and migration is one of those big-ticket items. With Drive Enterprise,
migration tools are included in the package
at no additional cost. So if you were at
Next two years ago, you heard us announce
the acquisition of a company called AppBridge. AppBridge is the leading
migration service provider in our industry,
and they’ve moved some of the largest regulated
and non-regulated companies in the world onto G Suite. The AppBridge team
spent the last two years rebuilding a Google stack
successor to their solution that re-released last month. It’s called G Suite Migrate. You get it for free as
part of Drive Enterprise. It has three different
kinds of capabilities. These are all tools that
you can use yourself. These are not just tools
that professional services organizations have to
use on your behalf. It has three phases
of functionality. Number one, it has
an assessment tool that you can deploy to analyze
all of your existing SharePoint installations and your
on-prem network filers, and it will audit for you,
what’s the content you have? What are the file formats? Who are the owners? What are the permissions? How much data have
you actually stored? You can then, given
that assessment, set up migration rules–
one to many, many to one, one to one migration tools– to reorganize that
content for the cloud. Decide what you can
delete, what you can move off to cold
storage, and what you want to move in to Drive. And then G Suite Migrate will
run that migration for you and give you great
tracking and auditing to identify what content
has moved, what content might have permission errors. Like this tool is,
in our opinion, the best in the industry and
it’s completely seamless. And it supports all the
connectors and sources that you’re going to care about. It can suck in content
from SharePoint. It can suck in content
from on-prem file shares. And if you look at moving
to G Suite overall, not just Drive Enterprise,
G Suite Migrate can also move your email
and your calendar for you. Now, migration is more of
a one-time expense, not an annual expense. But let’s not leave
out what that cost is. Typically in the industry,
these solutions cost $10 to $20 per user. So for a company like Acme,
this is $200,000 to $400,000 on top of all of the annual
cost savings that you’ve seen. So now let’s total
up the direct savings for getting off of your
existing content solution and onto Drive. I’m leaving out
a bunch of things here to make this conservative. I have not totaled up
migration, for example. We’re also not
assuming that you’re saving anything on
SharePoint licenses because we understand
how Microsoft EAs work. Just the fact that you’re
getting off of SharePoint doesn’t mean that you’re going
to be able to reduce your EAs, so we haven’t modeled
in any EA savings here. We’re just talking
about the physical disk space and the
service and support for running your on-prem
content platform. Drive can save you
95% of those costs. And now let’s get into the
indirect savings of Drive. Number one, data breaches. If you’re running an
on-prem content platform, your small team has
the responsibility for securing that entire
heterogeneous environment. You’re going to have a mix
of tools, a mix of vendors, a mix of production environments
from different vendors, and you have to somehow secure
that entire heterogeneous environment which
creates incredible risks. Also, think about
those statistics I showed a little bit ago about
your adoption of solutions like SharePoint. When your adoption of
SharePoint is down here, that does not mean
your employees aren’t sharing content. It doesn’t mean they’re
not sharing content out of the organization. It just means they’re not doing
it with IT-approved tools. What you have is
likely a shadow IT issue within the organization. Shadow IT puts corporations
at significant risk. 83% of IT professionals
admit that their employees are storing content in
unapproved storage systems. Oop, wrong direction. Our internal Google data
shows that to be the case. 77% percent of the
S&P 500 has employees that have gone and
gotten consumer Google Drive
accounts and they’re storing corporate data in their
consumer Google Drive account without you having any ability
to control that, secure it, set sharing rules, or extract
any of that in any discovery proceeding, and so forth. And if there’s a data
breach, the costs of remediating that data
breach are significant. $148 per record. The average data breach costs
the typical company almost $ million. Now, let’s think about
Drive Enterprise. I don’t have the time
in this presentation to go into a deep analysis
of all the security capabilities in
Drive Enterprise, but pull up the
Forester Total Economic Impact of G Suite Report
that was released last month. And you’re going to
see a detailed analysis of this 95% statistic. Features like our ML-powered
data loss prevention, artificial intelligence,
security keys, end-to-end encryption reduce
your security risks by 95%. Oh, and let’s not forget that
1 and 1/2 billion consumers around the world
use Gmail every day, and those users are the focus
of constant hacking and phishing attempts. And our Google
accounts team manages to protect 1 and 1/2 billion
consumers from that onslaught of attacks every day. And that same account system
that protects those Gmail users protects you if
you’re using Drive. That reduces your
security risk by 95%. Let’s put that into dollar
terms for someone like Acme. If you’re Acme, and
according to Forrester, you have a 15% likelihood
of a data breach every year. $150 per record. A typical data breach
is 100,000 records. And half of those
data breaches would be due to the content
platform themselves, and half of those data
breaches are other things about the IT environment. Let’s be conservative and
assume that Drive isn’t going to solve for those other
half of the issues, and we’re just going to solve
for the half that are related to the content platform. That’s $1 million in
expected savings every year due to reduced need to
address data breaches. $1 million, and that
will get totaled up into the indirect cost
savings in a minute. The final bit on
indirect cost savings here is employee productivity. And what you’re ultimately
trying to do in IT is help your employees
be productive. You’ve rolled out
content platforms to deliver them the knowledge
that they need in order to get their jobs
done, but there are immense
inefficiencies in terms of how people use
these tools and you can see that in these statistics. Just think about
the number of times you’ve found out that you
weren’t working from the most recent version of a file. Or you had to spend an hour
digging for a piece of content. Oh, what was that called? Who was I working on it with? When were we working on it? Was it stored in Box, Dropbox,
the SharePoint installation? Is it on my hard drive or
is it in our network filer? What’s worse, what if you
share the wrong version of a piece of content with
a client, or a supplier, or a partner? These issues are
incredibly common, and they have a real economic
cost associated with them. In comparison, in Drive,
we have rolled out the most impactful
machine learning features that G Suite has ever
launched that address this. So I’ll take point number
two first and then come back to point number one. Two years ago, Drive launched
a feature called Quick Access. It’s this incredibly
simple-looking user experience. It’s right up at the
top of your UI in Drive. It’s just this little carousel
of 10 recommended files. Under the hood,
what we’re doing is we’re analyzing who
you’re collaborating with, the content of all
your documents, the topics that
you’re interested in, what are the typical weekly
patterns of your workday, and we’re figuring out what
content do you need right now? Over the last two weeks, we just
finished a year-and-a-half long project to roll out a version of
Quick Access that’s essentially a new home screen for Drive
called the Priority Page. If you’re a Drive user, you
can pull up drive.google.com right now and you can see this. It’s Drive as if Drive was
rebuilt for the ML era. It’s an entire page that
focuses using machine learning to surface the content that
you need to get your job done. It has another feature
in it called Workspaces that automatically
identifies what are the projects and topics that
you’re working on right now? It clusters together the
files for those projects, and it serves it up
to you, so that you don’t need to go digging through
a massive filer hierarchy to find the content that you
need to get your job done. We’re incredibly
rigorous in how we measure these kinds of machine
learning systems at Google. Our data right now– it’s incredible to
think of years per week. These are units that don’t
normally go together. This system is saving 20
years of employee time every week looking for content. That’s almost someone’s
entire career saved every week due to not wasting time. On top of all those ML
and AI capabilities, we have good studies
at this point that indicate just one feature– the real-time collaboration
feature in Docs, Sheets, and Slides– which no one else
in the industry has a real bona fide
version of this like we do– that by itself improves
employee productivity by 20%. And we can quantify what
these employee productivity savings are. Now, this math is way more
than I could get on one slide, and I tried. So to get you comfortable
with the number that I’ll show in
a minute, I’m going to walk through
some assumptions. And if you want to
see the detailed math, you can contact us. There’s a link at the
end of the presentation, and we’ll take you
through the details. But let me just get you
comfortable with how conservative these
assumptions are for seeing what the
productivity impact is to Acme. We’re assuming their
workforce is growing slowly. We’re assuming that
50% of their workforce isn’t really that collaborative. We’re assuming that
not everyone uses Drive Enterprise on day one. There’s actually a ramp there. We’re assuming that there
are different kinds of tasks, and not all of those tasks
benefit from our productivity savings right away. We’re actually assuming
very modest salaries for the roles that are involved. And we’re certainly not assuming
that 100% of the time savings turns right back
into productive work. We’re all human. We know that we like
to take coffee breaks. We’re assuming that only 20% of
the time savings from our tools go back into productive
work, and then you can see we have quantitative
ways of measuring our time savings. For Acme, this is $10 million
of employee productivity savings every year. And as a CIO, you might
not think in these terms. But your CEO certainly
does think in these terms. And that $10 million
plus the $1 million from data breach
risk reduction– $11.7 million for Acme. If you think about this in
terms of return on investment, because these are
indirect cost savings, that’s 7.8x return
on investment. So now I’d like to total
up the direct cost savings from getting off of SharePoint
or your on-prem file servers plus the indirect
cost savings for Acme. $1.8 million on physical
capacity, $1.4 million on maintenance and support. The $1.8 million doesn’t
include any savings on SharePoint licenses. The $1.4 million doesn’t include
any savings on migration. $1 million saved on not
needing to remediate data breaches, and the biggest
line item of all, $10 million on employee productivity
that’s realized. These numbers, when
you look at them, might not feel that they
could possibly be real. But when you talk
to people that use Drive Enterprise or
that use G Suite, you really start
to believe this. I talk to people who say, I
could never work at a company now that doesn’t use these. When you think about that kind
of feedback, that $14 million, 10x ROI number starts
to become believable. That is the conclusion of the
bulk of this presentation, but there are two final
points that I want to make. One final point is, in talking
with customers and prospects, there is a theme I hear
time and time again, and the statistics show that
this is common in the industry. You feel like you are in
a really tough position because you essentially get all
of your productivity solutions from one vendor. Your EA renewals
with that vendor are a painful experience. They have all the
leverage over you. You have no leverage. The renewals feel
punitive, but you have no idea how to put yourself
back in the driver’s seat when it comes to
your next EA renewal. If you adopt Drive
Enterprise, you put yourself back
in the driver’s seat with an EA renewal, because
Drive is part of G Suite. G Suite has mail. G Suite has calendar. G Suite has chat. G Suite has video conferencing,
unlike Dropbox or Box. When you go back to that renewal
with your existing vendor, if you’ve adopted Drive
Enterprise, all of a sudden, you have a credible alternative. And as a buyer, that puts
you back in the driver’s seat and is going to make
that EA renewal much more favorable to you. I’ve had customers tell me
that they expect, even aside from all the savings
that I showed throughout this presentation, to
save more than the entire cost of Drive in savings at
their next EA renewal because they’re back
in the driver’s seat. My second final point, and
the last slide in this deck– we’re running a
promotion right now. Some restrictions
apply, but likely if you are using any of
the competitive solutions in this space– Dropbox, Box,
SharePoint, and so on– you can likely get Drive
Enterprise for free for the entire existing
duration of your contract. Please take a screenshot
or a picture of that. Take down that link. Contact us. We can go through your
specific scenario. We hear from a lot of
customers that this solution is incredibly appealing,
but as an IT buyer, you can’t have two bills coming
in for two different products in the same category
at the same time. And so we’re trying to take
that off the table as a concern for you, so you can
get Drive for free for the entire duration
of your existing contract. Please contact us at
that link down below. If you’re so
interested, there also is a self-serve buy flow there. You can get started. It’s no risk for
your organization, because we bill on
an active user basis. So if you think
your employees are going to love Drive
as an alternative to OneDrive or
SharePoint, you can go through the
self-serve buy flow. You can roll it out
to just one team to start– there’s no domain
verification required– and you can see if
people adopt it. And if they adopt it and
they’re getting value, you pay. If they don’t adopt it,
you’re not getting value, you don’t pay. We’re willing to put
ourselves on the hook because we’re so confident
about the solution, we’re completely
aligning incentives. All right, everybody. Thanks so much. That’s the end of
the presentation. [APPLAUSE] [MUSIC PLAYING]

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