 My name is Dave Cahill and we have Kevin Armour from PayCorps and shortly Brendan Vogue from HP joining us and we wanted to really, Kevin, first of all welcome and wanted to walk through, first of all your business and then kind of take us through a little bit of a journey, a case study through your experiences and your IT department, where it's at, some of the challenges you've experienced and where you're going and how HP fits in that story. So I think it would be great if you tell us at least initially about PayCorps, what your core competence is, your focus and kind of your early IT experiences or IT department. PayCorps is a payroll, HR, tax, time and attendance software as a service provider. We're located in Cincinnati, Ohio. We've been there since 1992. Bob Coughlin opened the office in 1992 and it's a privately owned company. We have 500 employees, 80 in IT. Our biggest challenge is really being able to provide customer service for our clients as far as one-on-one customer service and instant response. We're hearing a lot here at HP Discover about instant on. Our mantras is really instant response and being able to provide instant information to our clients, to our specialists that are processing payrolls, HR information, time and attendance and things like that. So you guys have been doing SAS before it was SAS. You guys were in ASP when ASP was a good thing and then it was a bad thing and now it's a good thing again. So talk about that journey. Where are you and what have you learned over those few years to get us to here? We learned that we were an early cloud provider and nobody knew anything about the cloud. We didn't know we were a cloud but we were an ASP application service provider. We provide our applications to our clients. They need no IT infrastructure. So as far as the migration, a lot of the things that we're seeing today, virtualization, we're a 90% virtualized shop. Our SQL enterprises is the only thing that really isn't virtualized in our environment just because of the SQL server needs and just the ability to scale up our SQL enterprise. So what's different today that makes this cloud concept a reality? I mean, besides just hardware costs coming down 30% a year for the last 10 years, right? Is it virtualization? Is it pure compute? I mean, what is what is driving the cloud agenda that makes this that much better and has everyone, you know, for me or wrapping their business around this? Some of it is taking the business that you're in and focusing on that aspect and not focusing on things like email, HR, payroll. If your business is manufacturing, you really want your IT staff focused on the infrastructure needed to support what you're making your money in versus the HR and payroll. We provide that and and that's really what I see as the cloud is being able to to do that. But also the instant the ability to spin up servers quickly, the rapid elasticity of being able to provide more compute power quickly. And those are really some of the driving forces to the cloud right now. And what does that look like? How do you it's primarily private cloud? Right, it's just private cloud. It's fairly nebulous term. It's virtualized today 90% right? What's the next phase in that down the path towards public or hybrid? And how do you get there from here? I think some of the things that we look at is we spin up new servers when we need to within our web farm. And the ability to spin up servers in a hybrid solution is something that we're really looking at from a cost perspective and from the ease of being able to spin them up rapidly. So but we're still looking at more of a hybrid solution because of our dependency on our SQL database server. That's really the hard the the core of our IT infrastructure is being able to provide that instant responsiveness, the ability to to process payrolls quickly, HR information and really be able to get the information to the clients quickly. And when you have a new demand for an application and one year, one of the guys in the IT team comes in, the government CIO has said we have a cloud first mandate. Every app that comes in the door is cloud first. And you got to tell me a reason why it's not. What does it look like internally at Paycore? Internally, we cost it out in both situations and new application or new environment and really look at it from a cost perspective to see if it really makes sense two, three years out. Maybe initially it might make sense, but if you're there two, three or four years, you need to really look at the overall cost of the recurring revenue model versus buying the servers and the license that go into that. Because in most cases, you're still buying for the you're still buying all those license and everything within that that structure of how the cloud is being marketed or are provided. Right. So it's not just a whole hearted jump to the private cloud. Right. I mean, I don't see it that way. There's a lot there. There's a lot of care and feeding. There's a lot of being able to also make sure that you have the backup capacity. The thing, you know, yeah, there's ways that the cloud providers can move servers from one environment to the other, but you still need to take those hardcore IT services and make sure that you're adhering to those within the cloud environment too, because they're you still have those same type of issues. Right. The cloud's not magic. Exactly. So, you know, independent of the technology, there's there's a there's just a political cultural organizational inertia that exists in getting, you know, towards this cloud mindset. Do you guys do you guys see any of that? I mean, you've been doing SAS for a while. So there is a as a service mindset internally. But how do you get around that? Because I see that as one of the biggest gaps from getting towards kind of existing IT to this next generation of IT, which is much more as a service getting around what the mindset inertia. So I mean, guys, you know, what is cloud or resisting that move to cloud versus how they've done things previously? I think we look at it as we've provided the cloud solution. So we understand a lot of the virtualization and how to do some of those things. So being able to to look at that as a whole is really where we're driving. And so, Brendan, when you're talking to Kevin and helping bridge bring HP and interject HP into the discussion, where do you guys have the most impact? Where is the HP architecture, HP technology, HP processes software? How does that weave into pay core to make sense for them where it's so compelling that that they're coming to you to solve their problems? Specifically, I'm the system architect for the deal 980. And I think it's, you know, that's been a really interesting alternative for Kevin. And in terms of looking for very high performance solutions at very low costs, extend the x86 reliant line beyond the current four socket industry standard servers into something that's considerably larger and really more appropriate for an SQL kind of application. And so what is the as you look, Kevin, at your the problems or the kind of next phases for you, what are the biggest issues in your environment that you need to address from here, right? And where does HP fit into that story? HP fits in with just the rapid nature of how they're coming out with new servers all the time and us being able to upgrade to to the latest and greatest as far as that goes, getting the added capacity that we need as we grow. We're, we're doubling revenue every three years. So we were very growth oriented company. So we need to be able to grow our IT infrastructure as the company continues to grow too. And then it wise me, what are the biggest? Is it really just figuring out how to meet those growth needs that you when you wake up every day? And the big challenges you're facing it's around sustaining or harnessing that growth? Some of it's the growth, but really the biggest concerns are around security and in our infrastructure as far as the security goes. I mean, the, the whole environment just making sure the lights are on 24 seven, the, the expectation used to, you know, when we first started out, it wasn't a 24 by seven 365 world, you know, now it's everything instant and everything has to be there on and continually being able to process. And where's the biggest IT headache at this point? I mean, everyone talks about operations being 70 to 80% of the cost of, of IT spend, right? Where is your biggest headaches? Probably the resource allocation as far as all the projects we have on our plate, the things we want to do where we want to go as, as we grow our company really being able to do that and, and manage both the new products that we're bringing out and then manage the infrastructure and the things that need to be done to, to keep things up and running smoothly. Right. And then figuring out where, where HP can fit in from a, from a software standpoint, hardware, hardware. I mean, we've been an HP customer for all the years I've been there, dating back 15 years. I mean, we've really been a HP ProLiant customer. So we continually see the benefits that they provide us. And then, you know, extending to the desktop a bit, talk about the desktop virtualization strategy and also thin client. I mean, it feels like you guys have multiple options there depending on the, on the use case or the customer profile. Right now, we're, we're looking at the Citrix in app environment and both the VMware environment also as far as the more of a virtualized application streaming model. Right now we're a pretty heavy Citrix shop as far as a published application goes. So the Zen server, as far as publishing applications, we have a processing center in Jacksonville and a processing center in Kansas city that is really just a wise terminal environment that very thin client. So no IT needs there really. So being able to do that, but really trying to figure out at this point which one makes the most sense for us moving forward. Since we are very heavy into VMware from our server virtualization, just really looking at both products now to figure out which is best for us. So you're 90% virtualized on the server side. Correct. You're, you know, certainly have a percentage on Zen app or wise thin clients on the desktop side. And all of that is really in kind of internally on premise type solutions. How do you think about bursting over drafting getting to the public cloud? Is that something you can see yourself doing? Or is this is the proposition, you know, still too, too well, you know, it's too easy for you to keep it inside and I think at times it is easy for us to keep it inside because we've kept it inside, but we are actively looking at how we can utilize the cloud to burst to be able to utilize some of the services from not having to have them up 24 seven, but to be able to burst during our peak times and then burst, you know, turn it off when we're not needing it so that we're paying for the computing power when we needed versus always having it on. Right, right. Yeah, the HP guys on earlier, we're talking about the new cloud burst product where they're actually going to roll hardware on site, and you don't pay for it until you use it. Right. And to me, that was an interesting way to kind of bridge the, you know, the economics and design principles of cloud with the reality that not every customer is ready to move to the public cloud, either because they're business because of inertia, politics, whatever, or regulatory requirements, say, hey, that's not that's not right for me. But we can kind of facilitate that type of cloud experience or discussion on site. Right. And that's what we would do. Do you guys really deliver it as a service internally, right? You externally have a software as a service to your clients, your internal IT department. Is there is the idea of charge back and service catalogs a reality yet? Or is that we don't do charge backs and service catalog at this point? Is it something you want to get to? Or is that maybe down the road, but it's not in the immediate future. Alright, now that you're virtualized to where you need to be, right? Okay. Alright, good. Well, guys, thank you very much. We appreciate you coming on. Yes, great case study and certainly a great experience moving to 90% virtualized and then beyond with with HP and Paycore. Okay, thank you very much. Thanks very much.